XML 29 R27.htm IDEA: XBRL DOCUMENT v3.20.2
Loans and Other Real Estate (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Schedule of Loans Receivable
The following sets forth the composition of the Company’s loan portfolio:
(in thousands)June 30, 2020December 31, 2019
Commercial, secured by real estate$3,961,476  $3,589,593  
Commercial, industrial and other402,239  431,934  
Paycheck Protection Program ("PPP")325,999  —  
Equipment finance115,651  111,076  
Real estate - residential mortgage334,455  335,191  
Real estate - construction299,441  335,169  
Home equity and consumer329,866  337,977  
Total loans5,769,127  5,140,940  
Less: deferred fees(12,972) (3,117) 
Loans, net of deferred fees$5,756,155  $5,137,823  
The following table presents changes in the accretable yield for PCI loans:
 For the Three Months EndedFor the Six Months Ended
(in thousands)June 30, 2020June 30, 2019June 30, 2020June 30, 2019
 
Balance, beginning of period$291  $1,338  $363  $81  
Acquisitions—  11  —  1,431  
Accretion(270) (188) (414) (381) 
Net reclassification non-accretable difference
162  30  234  60  
Balance, end of period$183  $1,191  $183  $1,191  
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)June 30, 2020December 31, 2019
Acquisition
Highlands$7,464  $8,194  
Pascack Community Bank ("Pascack")105  113  
Harmony Bank ("Harmony")439  441  
Total$8,008  $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)June 30, 2020December 31, 2019
Commercial, secured by real estate$24,703  $12,314  
Commercial, industrial and other1,546  1,539  
Equipment finance400  284  
Real estate - residential mortgage2,860  3,428  
Real estate - construction912  967  
Home equity and consumer2,432  2,606  
Total non-accrual loans
$32,853  $21,138  
Other real estate and other repossessed assets354  563  
TOTAL NON-PERFORMING ASSETS
$33,207  $21,701  
Troubled debt restructurings, still accruing$4,667  $5,650  
Age Analysis of Past Due Loans, Segregated by Class of Loans
An aging analysis of past due loans, excluding PCI loans which are accounted for on a pool basis, segregated by class of loans as of June 30, 2020 and December 31, 2019, is as follows:
(in thousands)30-59 Days Past Due60-89 Days Past DueGreater Than 89 Days Past DueTotal Past DueCurrentTotal LoansRecorded Investment  Greater than 89 Days and Still Accruing
June 30, 2020
Commercial, secured by real estate
$4,276  $5,644  $21,598  $31,518  $3,924,531  $3,956,049  $—  
Commercial, industrial and other (including PPP)
66  327  1,156  1,549  725,813  727,362  —  
Equipment finance104  35  400  539  115,112  115,651  —  
Real estate - residential mortgage
732  370  1,508  2,610  331,433  334,043  —  
Real estate - construction66  —  694  760  297,901  298,661  —  
Home equity and consumer528  340  1,690  2,558  326,795  329,353  58  
$5,772  $6,716  $27,046  $39,534  $5,721,585  $5,761,119  $58  
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 finance166  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 consumer1,573  287  1,533  3,393  334,059  337,452  —  
$6,808  $1,889  $15,625  $24,322  $5,107,870  $5,132,192  $—  
Impaired Loans Impaired loans as of June 30, 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
June 30, 2020
Loans without specific allowance:
Commercial, secured by real estate$24,245  $24,541  $—  $19,502  $79  
Commercial, industrial and other1,308  1,313  —  1,336  8  
Equipment finance—  —  —  —  —  
Real estate - residential mortgage1,516  1,647  —  1,577  —  
Real estate - construction694  694  —  1,043  10  
Home equity and consumer—  —  —  —  —  
Loans with specific allowance:
Commercial, secured by real estate3,222  3,472  187  3,308  75  
Commercial, industrial and other102  101  5  101  3  
Equipment finance17  17  7  19  —  
Real estate - residential mortgage644  827  67  651  9  
Real estate - construction—  —  —  —  —  
Home equity and consumer607  712  5  616  15  
Total:
Commercial, secured by real estate$27,467  $28,013  $187  $22,810  $154  
Commercial, industrial and other1,410  1,414  5  1,437  11  
Equipment finance17  17  7  19  —  
Real estate - residential mortgage2,160  2,474  67  2,228  9  
Real estate - construction694  694  —  1,043  10  
Home equity and consumer607  712  5  616  15  
$32,355  $33,324  $271  $28,153  $199  
(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 other1,391  1,381  —  1,334  16  
Equipment finance—  —  —  —  —  
Real estate - residential mortgage803  815  —  233  —  
Real estate - construction1,663  1,661  —  82  2  
Home equity and consumer—  —  —  —  —  
Loans with specific allowance:
Commercial, secured by real estate3,470  3,706  228  4,554  190  
Commercial, industrial and other113  113  5  113  6  
Equipment finance23  23  10  21  —  
Real estate - residential mortgage1,512  1,682  104  926  19  
Real estate - construction—  —  —  —  —  
Home equity and consumer671  765  5  693  29  
Total:
Commercial, secured by real estate$15,948  $16,336  $228  $14,940  $354  
Commercial, industrial and other1,504  1,494  5  1,447  22  
Equipment finance23  23  10  21  —  
Real estate - residential mortgage2,315  2,497  104  1,159  19  
Real estate - construction1,663  1,661  —  82  2  
Home equity and consumer671  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 (including PPP)		Equipment FinanceReal Estate-
Residential
Mortgage		Real Estate-
Construction		Home
Equity and
Consumer		Total
June 30, 2020
Ending Balance: Individually evaluated for impairment
$27,467  $1,410  $17  $2,160  $694  $607  $32,355  
Ending Balance: Collectively evaluated for impairment
3,928,582  725,952  115,634  331,883  297,967  328,746  5,728,764  
Ending Balance: Loans acquired with deteriorated credit quality
5,427  876  —  412  780  513  8,008  
Ending Balance (1)$3,961,476  $728,238  $115,651  $334,455  $299,441  $329,866  $5,769,127  
(in thousands)Commercial,
Secured by
Real Estate		Commercial,
Industrial
and Other		Equipment FinanceReal 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  $5,140,940  
(1)Excludes deferred fees
Credit Quality Indicators
The following table shows the Company’s commercial loan portfolio as of June 30, 2020 and December 31, 2019, by the risk ratings discussed above (in thousands):
June 30, 2020Commercial,
Secured by
Real Estate		Commercial,
Industrial
and Other (including PPP)		Real Estate -
Construction		Total Commercial Loans
RISK RATING
1$—  $326,662  $—  $326,662  
2—  16,730  —  16,730  
370,963  36,872  —  107,835  
4903,575  90,751  18,674  1,013,000  
51,969,384  167,781  239,847  2,377,012  
5W - Watch834,041  61,609  27,106  922,756  
6 - Other assets especially mentioned96,908  20,553  12,119  129,580  
7 - Substandard86,605  7,280  1,695  95,580  
8 - Doubtful—  —  —  —  
9 - Loss—  —  —  —  
Total$3,961,476  $728,238  $299,441  $4,989,155  
December 31, 2019Commercial,
Secured by
Real Estate		Commercial,
Industrial
and Other		Real Estate -
Construction		Total Commercial Loans
RISK RATING
1$—  $898  $—  $898  
2—  17,988  —  17,988  
374,072  39,112  —  113,184  
4965,825  107,376  17,941  1,091,142  
52,332,863  215,975  307,824  2,856,662  
5W - Watch100,347  30,192  6,959  137,498  
6 - Other assets especially mentioned55,438  11,328  —  66,766  
7 - Substandard61,048  9,065  2,445  72,558  
8 - Doubtful—  —  —  —  
9 - Loss—  —  —  —  
Total$3,589,593  $431,934  $335,169  $4,356,696  
Allowance for Loan and Lease Losses by Portfolio Segment
The following table details activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2020 and 2019:
(in thousands)Commercial, Secured by Real EstateCommercial, Industrial and OtherEquipment FinanceReal Estate- Residential MortgageReal Estate- ConstructionHome Equity and ConsumerTotal
Three Months Ended June 30, 2020
Beginning Balance$34,793  $5,489  $1,257  $1,600  $3,344  $2,401  $48,884  
Charge-offs—  —  (14) —  —  (127) (141) 
Recoveries21  13  24  —  16  22  96  
Provision8,466  (804) 1,704  (164) (241) 39  9,000  
Ending Balance$43,280  $4,698  $2,971  $1,436  $3,119  $2,335  $57,839  

(in thousands)Commercial, Secured by Real EstateCommercial, Industrial and OtherEquipment FinanceReal Estate- Residential MortgageReal Estate- ConstructionHome Equity and ConsumerTotal
Three Months Ended June 30, 2019
Beginning Balance$27,515  $2,592  $947  $1,564  $2,887  $2,474  $37,979  
Charge-offs—  (38) (293) —  —  (82) (413) 
Recoveries25  947  —  2  60  62  1,096  
Provision555  (868) 401  40  (239) 111  —  
Ending Balance$28,095  $2,633  $1,055  $1,606  $2,708  $2,565  $38,662  

(in thousands)Commercial,
Secured by
Real Estate		Commercial,
Industrial
and Other		Equipment FinanceReal Estate-
Residential
Mortgage		Real Estate-
Construction		Home
Equity and
Consumer		Total
Six Months Ended June 30, 2020
Beginning Balance$28,950  $3,289  $957  $1,725  $2,672  $2,410  $40,003  
Charge-offs(169) —  (98) (116) —  (241) (624) 
Recoveries47  43  38  20  48  41  237  
Provision14,452  1,366  2,074  (193) 399  125  18,223  
Ending Balance$43,280  $4,698  $2,971  $1,436  $3,119  $2,335  $57,839  
(in thousands)Commercial,
Secured by
Real Estate		Commercial,
Industrial
and Other		Equipment FinanceReal Estate-
Residential
Mortgage		Real Estate-
Construction		Home
Equity and
Consumer		Total
Six Months Ended June 30, 2019
Beginning Balance$27,881  $1,742  $987  $1,566  $3,015  $2,497  $37,688  
Charge-offs(187) (185) (380) (50) —  (127) (929) 
Recoveries140  1,044  2  11  65  133  1,395  
Provision261  32  446  79  (372) 62  508  
Ending Balance$28,095  $2,633  $1,055  $1,606  $2,708  $2,565  $38,662  
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 FinanceReal Estate-
Residential
Mortgage		Real Estate-
Construction		Home
Equity and
Consumer		Total
June 30, 2020
Ending Balance: Individually evaluated for impairment
$187  $5  $7  $67  $—  $5  $271  
Ending Balance: Collectively evaluated for impairment
43,093  4,693  2,964  1,369  3,119  2,330  57,568  
Ending Balance$43,280  $4,698  $2,971  $1,436  $3,119  $2,335  $57,839  
(in thousands)Commercial,
Secured by
Real Estate		Commercial,
Industrial
and Other		Equipment FinanceReal 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  
Summary of Troubled Debt Restructurings
The following table summarizes as of June 30, 2020 and 2019, loans that were TDRs within the previous twelve months that have subsequently defaulted:
 June 30, 2020June 30, 2019
(dollars in thousands)Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Construction1  $694  —  $—  
Home equity and consumer2  73  —  $—  
3  $767  —  $—