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Loans and Other Real Estate (Tables)
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Schedule of Loans Receivable
The following sets forth the composition of the Company’s loan portfolio:
(in thousands)
March 31, 2020
 
December 31, 2019
Commercial, secured by real estate
$
3,740,319

 
$
3,589,593

Commercial, industrial and other
467,346

 
431,934

Equipment finance
116,421

 
111,076

Real estate - residential mortgage
334,114

 
335,191

Real estate - construction
333,592

 
335,169

Home equity and consumer
340,071

 
337,977

Total loans
5,331,863

 
5,140,940

Less: deferred fees
(3,240
)
 
(3,117
)
Loans, net of deferred fees
$
5,328,623

 
$
5,137,823


The following table presents changes in the accretable yield for PCI loans:
 
For the Three Months Ended
(in thousands)
March 31, 2020
 
March 31, 2019
 
 
 
 
Balance, beginning of period
$
363

 
$
81

Acquisitions
—

 
1,420

Accretion
(144
)
 
(193
)
Net reclassification non-accretable difference
72

 
30

Balance, end of period
$
291

 
$
1,338
Schedule of Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period
The following is a summary of the credit impaired loans acquired in the Highlands acquisition as of the closing date.
(in thousands)
 
Contractually required principal and interest at acquisition
$
22,363

Contractual cash flows not expected to be collected (non-accretable difference)
7,129

Expected cash flows at acquisition
$
15,234

Interest component of expected cash flows (accretable difference)
1,431

Fair value of acquired loans
$
13,803


The following sets forth the carrying value of the purchased credit impaired ("PCI") loans acquired in mergers:
(in thousands)
March 31, 2020
 
December 31, 2019
Acquisition
 
 
 
  Highlands
$
7,494

 
$
8,194

  Pascack Community Bank ("Pascack")
106

 
113

  Harmony Bank ("Harmony")
434

 
441

Total
$
8,034

 
$
8,748
Company's Non-Performing Assets and its Accruing Troubled Debt Restructurings, Excluding PCI Loans
The following schedule sets forth certain information regarding the Company’s non-performing assets and its accruing troubled debt restructurings, excluding PCI loans:
(in thousands)
March 31, 2020
 
December 31, 2019
Commercial, secured by real estate
$
23,851

 
$
12,314

Commercial, industrial and other
1,909

 
1,539

Equipment finance
199

 
284

Real estate - residential mortgage
2,837

 
3,428

Real estate - construction
919

 
967

Home equity and consumer
2,689

 
2,606

Total non-accrual loans
$
32,404

 
$
21,138

Other real estate and other repossessed assets
393

 
563

TOTAL NON-PERFORMING ASSETS
$
32,797

 
$
21,701

Troubled debt restructurings, still accruing
$
4,719

 
$
5,650
Age Analysis of Past Due Loans, Segregated by Class of Loans
An age analysis of past due loans, excluding PCI loans which are accounted for on a pool basis, segregated by class of loans as of March 31, 2020 and December 31, 2019, is as follows:
(in thousands)
30-59 Days Past Due
 
60-89 Days Past Due
 
Greater Than 89 Days Past Due
 
Total Past Due
 
Current
 
Total Loans
 
Recorded Investment  Greater than 89 Days and Still Accruing
March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
$
12,162

 
$
8,032

 
$
13,190

 
$
33,384

 
$
3,701,509

 
$
3,734,893

 
$
—

Commercial, industrial and other
2,101

 
1,010

 
1,057

 
4,168

 
462,284

 
466,452

 
—

Equipment finance
264

 
30

 
200

 
494

 
115,927

 
116,421

 
—

Real estate - residential mortgage
1,988

 
125

 
1,630

 
3,743

 
329,970

 
333,713

 
—

Real estate - construction
—

 
—

 
225

 
225

 
332,570

 
332,795

 
—

Home equity and consumer
1,645

 
299

 
1,243

 
3,187

 
336,368

 
339,555

 
99

 
$
18,160

 
$
9,496

 
$
17,545

 
$
45,201

 
$
5,278,628

 
$
5,323,829

 
$
99

December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
$
3,578

 
$
1,200

 
$
9,702

 
$
14,480

 
$
3,569,008

 
$
3,583,488

 
$
—

Commercial, industrial and other
353

 
71

 
1,064

 
1,488

 
429,502

 
430,990

 
—

Equipment finance
166

 
80

 
284

 
530

 
110,546

 
111,076

 
—

Real estate - residential mortgage
1,138

 
251

 
2,075

 
3,464

 
331,337

 
334,801

 
—

Real estate - construction
—

 
—

 
967

 
967

 
333,418

 
334,385

 
—

Home equity and consumer
1,573

 
287

 
1,533

 
3,393

 
334,059

 
337,452

 
—

 
$
6,808

 
$
1,889

 
$
15,625

 
$
24,322

 
$
5,107,870

 
$
5,132,192

 
$
—
Credit Quality Indicators
The following table shows the Company’s commercial loan portfolio as of March 31, 2020 and December 31, 2019, by the risk ratings discussed above (in thousands):
March 31, 2020
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Real Estate -
Construction
 
Total Commercial Loans
RISK RATING
 
 
 
 
 
 
 
1
$
—

 
$
554

 
$
—

 
$
554

2
—

 
18,099

 
—

 
18,099

3
73,368

 
35,528

 
—

 
108,896

4
986,743

 
117,485

 
17,899

 
1,122,127

5
2,329,762

 
203,708

 
301,455

 
2,834,925

5W - Watch
227,836

 
68,160

 
1,050

 
297,046

6 - Other assets especially mentioned
59,250

 
9,338

 
11,472

 
80,060

7 - Substandard
63,360

 
14,474

 
1,716

 
79,550

8 - Doubtful
—

 
—

 
—

 
—

9 - Loss
—

 
—

 
—

 
—

Total
$
3,740,319

 
$
467,346

 
$
333,592

 
$
4,541,257

December 31, 2019
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Real Estate -
Construction
 
Total Commercial Loans
RISK RATING
 
 
 
 
 
 
 
1
$
—

 
$
898

 
$
—

 
$
898

2
—

 
17,988

 
—

 
17,988

3
74,072

 
39,112

 
—

 
113,184

4
965,825

 
107,376

 
17,941

 
1,091,142

5
2,332,863

 
215,975

 
307,824

 
2,856,662

5W - Watch
100,347

 
30,192

 
6,959

 
137,498

6 - Other assets especially mentioned
55,438

 
11,328

 
—

 
66,766

7 - Substandard
61,048

 
9,065

 
2,445

 
72,558

8 - Doubtful
—

 
—

 
—

 
—

9 - Loss
—

 
—

 
—

 
—

Total
$
3,589,593

 
$
431,934

 
$
335,169

 
$
4,356,696
Impaired Loans Impaired loans as of March 31, 2020 and December 31, 2019 are as follows:
(in thousands)
Recorded
Investment in
Impaired  Loans
 
Contractual
Unpaid
Principal
Balance
 
Specific
Allowance
 
Average
Investment in
Impaired  Loans
 
Interest
Income
Recognized
March 31, 2020
 
 
 
 
 
 
 
 
 
Loans without specific allowance:
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
$
23,705

 
$
23,965

 
$
—

 
$
13,594

 
$
30

Commercial, industrial and other
1,330

 
1,333

 
—

 
1,347

 
4

Equipment finance
—

 
—

 
—

 
—

 
—

Real estate - residential mortgage
1,525

 
1,651

 
—

 
1,581

 
—

Real estate - construction
694

 
694

 
—

 
702

 
10

Home equity and consumer
—

 
—

 
—

 
—

 
—

Loans with specific allowance:
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
3,263

 
3,505

 
202

 
3,406

 
38

Commercial, industrial and other
106

 
105

 
5

 
105

 
2

Equipment finance
19

 
19

 
8

 
21

 
—

Real estate - residential mortgage
654

 
835

 
2

 
659

 
5

Real estate - construction
—

 
—

 
—

 
—

 
—

Home equity and consumer
638

 
739

 
5

 
640

 
8

Total:
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
$
26,968

 
$
27,470

 
$
202

 
$
17,000

 
$
68

Commercial, industrial and other
1,436

 
1,438

 
5

 
1,452

 
6

Equipment finance
19

 
19

 
8

 
21

 
—

Real estate - residential mortgage
2,179

 
2,486

 
2

 
2,240

 
5

Real estate - construction
694

 
694

 
—

 
702

 
10

Home equity and consumer
638

 
739

 
5

 
640

 
8

 
$
31,934

 
$
32,846

 
$
222

 
$
22,055

 
$
97

(in thousands)
Recorded
Investment in
Impaired  Loans
 
Contractual
Unpaid
Principal
Balance
 
Specific
Allowance
 
Average
Investment in
Impaired  Loans
 
Interest
Income
Recognized
December 31, 2019
 
 
 
 
 
 
 
 
 
Loans without specific allowance:
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
$
12,478

 
$
12,630

 
$
—

 
$
10,386

 
$
164

Commercial, industrial and other
1,391

 
1,381

 
—

 
1,334

 
16

Equipment finance
—

 
—

 
—

 
—

 
—

Real estate - residential mortgage
803

 
815

 
—

 
233

 
—

Real estate - construction
1,663

 
1,661

 
—

 
82

 
2

Home equity and consumer
—

 
—

 
—

 
—

 
—

Loans with specific allowance:
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
3,470

 
3,706

 
228

 
4,554

 
190

Commercial, industrial and other
113

 
113

 
5

 
113

 
6

Equipment finance
23

 
23

 
10

 
21

 
—

Real estate - residential mortgage
1,512

 
1,682

 
104

 
926

 
19

Real estate - construction
—

 
—

 
—

 
—

 
—

Home equity and consumer
671

 
765

 
5

 
693

 
29

Total:
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
$
15,948

 
$
16,336

 
$
228

 
$
14,940

 
$
354

Commercial, industrial and other
1,504

 
1,494

 
5

 
1,447

 
22

Equipment finance
23

 
23

 
10

 
21

 
—

Real estate - residential mortgage
2,315

 
2,497

 
104

 
1,159

 
19

Real estate - construction
1,663

 
1,661

 
—

 
82

 
2

Home equity and consumer
671

 
765

 
5

 
693

 
29

 
$
22,124

 
$
22,776

 
$
352

 
$
18,342

 
$
426


Loans receivable summarized by portfolio segment and impairment method are as follows:
(in thousands)
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Equipment Finance
 
Real Estate-
Residential
Mortgage
 
Real Estate-
Construction
 
Home
Equity and
Consumer
 
Total
March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance: Individually evaluated for impairment
$
26,968

 
$
1,436

 
$
19

 
$
2,179

 
$
694

 
$
638

 
$
31,934

Ending Balance: Collectively evaluated for impairment
3,707,925

 
465,016

 
116,402

 
331,534

 
332,101

 
338,917

 
5,291,895

Ending Balance: Loans acquired with deteriorated credit quality
5,426

 
894

 
—

 
401

 
797

 
516

 
8,034

Ending Balance (1)
$
3,740,319

 
$
467,346

 
$
116,421

 
$
334,114

 
$
333,592

 
$
340,071

 
$
5,331,863

(in thousands)
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Equipment Finance
 
Real Estate-
Residential
Mortgage
 
Real Estate-
Construction
 
Home
Equity and
Consumer
 
Total
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance: Individually evaluated for impairment
$
15,948

 
$
1,504

 
$
23

 
$
2,315

 
$
1,663

 
$
671

 
$
22,124

Ending Balance: Collectively evaluated for impairment
3,567,540

 
429,486

 
111,053

 
332,486

 
332,722

 
336,781

 
5,110,068

Ending balance: Loans acquired with deteriorated credit quality
6,105

 
944

 
—

 
390

 
784

 
525

 
8,748

Ending Balance (1)
$
3,589,593

 
$
431,934

 
$
111,076

 
$
335,191

 
$
335,169

 
$
337,977

 
$
5,140,940

(1)
Excludes deferred fees
Allowance for Loan and Lease Losses by Portfolio Segment
The allowance for loan losses is summarized by portfolio segment and impairment classification as follows:
(in thousands)
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Equipment Finance
 
Real Estate-
Residential
Mortgage
 
Real Estate-
Construction
 
Home
Equity and
Consumer
 
Total
March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance: Individually evaluated for impairment
$
202

 
$
5

 
$
8

 
$
2

 
$
—

 
$
5

 
$
222

Ending Balance: Collectively evaluated for impairment
34,591

 
5,484

 
1,249

 
1,598

 
3,344

 
2,396

 
48,662

Ending Balance
$
34,793

 
$
5,489

 
$
1,257

 
$
1,600

 
$
3,344

 
$
2,401

 
$
48,884

(in thousands)
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Equipment Finance
 
Real Estate-
Residential
Mortgage
 
Real Estate-
Construction
 
Home
Equity and
Consumer
 
Total
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance: Individually evaluated for impairment
$
228

 
$
5

 
$
10

 
$
104

 
$
—

 
$
5

 
$
352

Ending Balance: Collectively evaluated for impairment
28,722

 
3,284

 
947

 
1,621

 
2,672

 
2,405

 
39,651

Ending Balance
$
28,950

 
$
3,289

 
$
957

 
$
1,725

 
$
2,672

 
$
2,410

 
$
40,003



The following table details activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2020 and 2019:
(in thousands)
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Equipment Finance
 
Real Estate-
Residential
Mortgage
 
Real Estate-
Construction
 
Home
Equity and
Consumer
 
Total
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
$
28,950

 
$
3,289

 
$
957

 
$
1,725

 
$
2,672

 
$
2,410

 
$
40,003

Charge-offs
(169
)
 
—

 
(84
)
 
(116
)
 
—

 
(114
)
 
(483
)
Recoveries
26

 
30

 
14

 
20

 
32

 
19

 
141

Provision
5,986

 
2,170

 
370

 
(29
)
 
640

 
86

 
9,223

Ending Balance
$
34,793

 
$
5,489

 
$
1,257

 
$
1,600

 
$
3,344

 
$
2,401

 
$
48,884

(in thousands)
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Equipment Finance
 
Real Estate-
Residential
Mortgage
 
Real Estate-
Construction
 
Home
Equity and
Consumer
 
Total
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
$
27,881

 
$
1,742

 
$
987

 
$
1,566

 
$
3,015

 
$
2,497

 
$
37,688

Charge-offs
(187
)
 
(147
)
 
(87
)
 
(50
)
 
—

 
(45
)
 
(516
)
Recoveries
115

 
97

 
2

 
9

 
5

 
71

 
299

Provision
(294
)
 
900

 
45

 
39

 
(133
)
 
(49
)
 
508

Ending Balance
$
27,515

 
$
2,592

 
$
947

 
$
1,564

 
$
2,887

 
$
2,474

 
$
37,979
Summary of Troubled Debt Restructurings
The following table summarizes as of March 31, 2020 and 2019, loans that were restructured within the previous twelve months that have subsequently defaulted:
 
March 31, 2020
 
March 31, 2019
(dollars in thousands)
Number of
Contracts
 
Recorded
Investment
 
Number of
Contracts
 
Recorded
Investment
 
 
Home equity and consumer
2

 
$
83

 
—

 
$
—

 
2

 
$
83

 
—

 
$
—