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Loans and Other Real Estate (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of Loans Receivable
The following sets forth the composition of the Company’s loan portfolio:
(in thousands)September 30, 2020December 31, 2019
Commercial, secured by real estate$4,049,331 $3,589,593 
Commercial, industrial and other426,821 431,934 
Paycheck Protection Program ("PPP")325,115 — 
Equipment finance116,410 111,076 
Real estate - residential mortgage342,583 335,191 
Real estate - construction276,743 335,169 
Home equity and consumer318,021 337,977 
Total loans5,855,024 5,140,940 
Less: deferred fees(11,433)(3,117)
Loans, net of deferred fees$5,843,591 $5,137,823 
The following table presents changes in the accretable yield for PCI loans:
 For the Three Months EndedFor the Nine Months Ended
(in thousands)September 30, 2020September 30, 2019September 30, 2020September 30, 2019
 
Balance, beginning of period$183 $1,191 $363 $81 
Acquisitions— — — 1,431 
Accretion(186)(306)(600)(687)
Net reclassification non-accretable difference
89 16 323 76 
Balance, end of period$86 $901 $86 $901 
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)September 30, 2020December 31, 2019
Acquisition
Highlands$7,236 $8,194 
Pascack Community Bank ("Pascack")98 113 
Harmony Bank ("Harmony")430 441 
Total$7,764 $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)September 30, 2020December 31, 2019
Commercial, secured by real estate$25,238 $12,314 
Commercial, industrial and other1,484 1,539 
Equipment finance444 284 
Real estate - residential mortgage2,695 3,428 
Real estate - construction907 967 
Home equity and consumer2,322 2,606 
Total non-accrual loans
$33,090 $21,138 
Other real estate and other repossessed assets— 563 
TOTAL NON-PERFORMING ASSETS
$33,090 $21,701 
Troubled debt restructurings, still accruing$4,299 $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 September 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
September 30, 2020
Commercial, secured by real estate
$4,623 $6,071 $22,423 $33,117 $4,010,888 $4,044,005 $— 
Commercial, industrial and other (including PPP)
4,892 630 966 6,488 744,690 751,178 — 
Equipment finance246 — 443 689 115,721 116,410 — 
Real estate - residential mortgage
429 167 1,494 2,090 340,074 342,164 — 
Real estate - construction— — 694 694 275,291 275,985 — 
Home equity and consumer970 187 1,220 2,377 315,141 317,518 165 
$11,160 $7,055 $27,240 $45,455 $5,801,805 $5,847,260 $165 
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 September 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
September 30, 2020
Loans without specific allowance:
Commercial, secured by real estate$24,396 $25,015 $— $20,863 $119 
Commercial, industrial and other1,632 1,628 — 1,312 11 
Equipment finance— — — — — 
Real estate - residential mortgage1,503 1,640 — 1,570 — 
Real estate - construction694 694 — 926 10 
Home equity and consumer— — — — — 
Loans with specific allowance:
Commercial, secured by real estate3,183 3,434 207 3,248 110 
Commercial, industrial and other94 94 4 94 4 
Equipment finance15 15 6 16 — 
Real estate - residential mortgage337 525 2 582 12 
Real estate - construction— — — — — 
Home equity and consumer595 689 4 603 22 
Total:
Commercial, secured by real estate$27,579 $28,449 $207 $24,111 $229 
Commercial, industrial and other1,726 1,722 4 1,406 15 
Equipment finance15 15 6 16 — 
Real estate - residential mortgage1,840 2,165 2 2,152 12 
Real estate - construction694 694 — 926 10 
Home equity and consumer595 689 4 603 22 
$32,449 $33,734 $223 $29,214 $288 
(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
September 30, 2020
Ending Balance: Individually evaluated for impairment
$27,579 $1,726 $15 $1,840 $694 $595 $32,449 
Ending Balance: Collectively evaluated for impairment
4,016,426 749,452 116,395 340,324 275,291 316,923 5,814,811 
Ending Balance: Loans acquired with deteriorated credit quality
5,326 758 — 419 758 503 7,764 
Ending Balance (1)$4,049,331 $751,936 $116,410 $342,583 $276,743 $318,021 $5,855,024 
(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 $5,140,940 
(1)Excludes deferred fees
Credit Quality Indicators
The following table shows the Company’s commercial loan portfolio as of September 30, 2020 and December 31, 2019, by the risk ratings discussed above (in thousands):
September 30, 2020Commercial,
Secured by
Real Estate		Commercial,
Industrial
and Other (including PPP)		Real Estate -
Construction		Total Commercial Loans
RISK RATING
1$— $325,510 $— $325,510 
2— 16,344 — 16,344 
372,698 26,492 — 99,190 
4955,104 91,708 18,901 1,065,713 
51,954,831 205,623 221,750 2,382,204 
5W - Watch796,979 51,092 21,924 869,995 
6 - Other assets especially mentioned147,407 22,476 12,503 182,386 
7 - Substandard122,312 12,691 1,665 136,668 
8 - Doubtful— — — — 
9 - Loss— — — — 
Total$4,049,331 $751,936 $276,743 $5,078,010 
December 31, 2019Commercial,
Secured by
Real Estate		Commercial,
Industrial
and Other		Real Estate -
Construction		Total Commercial Loans
RISK RATING
1$— $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 nine months ended September 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 September 30, 2020
Beginning Balance$43,280 $4,698 $2,971 $1,436 $3,119 $2,335 $57,839 
Charge-offs(329)(204)(96)— — (53)(682)
Recoveries10 31 1 1 21 21 85 
Provision7,305 460 8 256 (37)8 8,000 
Ending Balance$50,266 $4,985 $2,884 $1,693 $3,103 $2,311 $65,242 

(in thousands)Commercial, Secured by Real EstateCommercial, Industrial and OtherEquipment FinanceReal Estate- Residential MortgageReal Estate- ConstructionHome Equity and ConsumerTotal
Three Months Ended September 30, 2019
Beginning Balance$28,095 $2,633 $1,055 $1,606 $2,708 $2,565 $38,662 
Charge-offs(314)(425)— — — (70)(809)
Recoveries72 32 — 55 39 68 266 
Provision672 218 55 (57)(186)(166)536 
Ending Balance$28,525 $2,458 $1,110 $1,604 $2,561 $2,397 $38,655 

(in thousands)Commercial,
Secured by
Real Estate		Commercial,
Industrial
and Other		Equipment FinanceReal Estate-
Residential
Mortgage		Real Estate-
Construction		Home
Equity and
Consumer		Total
Nine Months Ended September 30, 2020
Beginning Balance$28,950 $3,289 $957 $1,725 $2,672 $2,410 $40,003 
Charge-offs(498)(204)(194)(116)— (294)(1,306)
Recoveries57 74 39 21 69 62 322 
Provision21,757 1,826 2,082 63 362 133 26,223 
Ending Balance$50,266 $4,985 $2,884 $1,693 $3,103 $2,311 $65,242 
(in thousands)Commercial,
Secured by
Real Estate		Commercial,
Industrial
and Other		Equipment FinanceReal Estate-
Residential
Mortgage		Real Estate-
Construction		Home
Equity and
Consumer		Total
Nine Months Ended September 30, 2019
Beginning Balance$27,881 $1,742 $987 $1,566 $3,015 $2,497 $37,688 
Charge-offs(501)(610)(380)(50)— (197)(1,738)
Recoveries212 1,076 2 66 104 201 1,661 
Provision933 250 501 22 (558)(104)1,044 
Ending Balance$28,525 $2,458 $1,110 $1,604 $2,561 $2,397 $38,655 
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
September 30, 2020
Ending Balance: Individually evaluated for impairment
$207 $4 $6 $2 $— $4 $223 
Ending Balance: Collectively evaluated for impairment
50,059 4,981 2,878 1,691 3,103 2,307 65,019 
Ending Balance$50,266 $4,985 $2,884 $1,693 $3,103 $2,311 $65,242 
(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 September 30, 2020 and 2019, loans that were TDRs within the previous twelve months that have subsequently defaulted:
 September 30, 2020September 30, 2019
(dollars in thousands)Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Construction1 $694 — $— 
Home equity and consumer— — 2 83 
1 $694 2 $83 
Financing Receivable, Troubled Debt Restructuring
The following table summarizes the loans that were restructured during the three and nine months ended September 30, 2020 and 2019 that met the definition of a TDR:
Three Months Ended
September 30, 2020		Three Months Ended
September 30, 2019
(dollars in thousands)Number of
Contracts		Pre-
Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment		Number of
Contracts		Pre-
Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment
Home equity and consumer— $— $— 2 $83 $83 
— $— $— 2 $83 $83 
Nine Months Ended
September 30, 2020		Nine Months Ended
September 30, 2019
(dollars in thousands)Number of
Contracts		Pre-
Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment		Number of
Contracts		Pre-
Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment
Home equity and consumer— $— $— 2 $83 $83 
— $— $— 2 $83 $83