☒
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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New Jersey
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22-2953275
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(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
Title of Each Class
|
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Trading Symbol
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Name of exchange on which registered
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Common Stock, no par value
|
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LBAI
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The Nasdaq Stock Market
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PAGE
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 3A.
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Item 4.
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Item 15.
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Item 16.
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||
•
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allows bank holding companies meeting management, capital, and Community Reinvestment Act standards to engage in a substantially broader range of non-banking activities than previously was permissible, including insurance underwriting and making merchant banking investments in commercial and financial companies; if a bank holding company elects to become a financial holding company, it files a certification, effective in 30 days, and thereafter may engage in certain financial activities without further approvals (Lakeland Bancorp is such a financial holding company);
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•
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allows insurers and other financial services companies to acquire banks;
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•
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removes various restrictions that previously applied to bank holding company ownership of securities firms and mutual fund advisory companies; and
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•
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establishes the overall regulatory structure applicable to bank holding companies that also engage in insurance and securities operations.
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•
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All financial institutions must establish anti-money laundering programs that include, at a minimum: (i) internal policies, procedures, and controls; (ii) specific designation of an anti-money laundering compliance officer; (iii) ongoing employee training programs; and (iv) an independent audit function to test the anti-money laundering program.
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•
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The Secretary of the Department of the Treasury, in conjunction with other bank regulators, was authorized to issue regulations that provide for minimum standards with respect to customer identification at the time new accounts are opened.
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•
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Financial institutions that establish, maintain, administer, or manage private banking accounts or correspondent accounts in the United States for non-United States persons or their representatives (including foreign individuals visiting the United States) are required to establish appropriate, specific and, where necessary, enhanced due diligence policies, procedures, and controls designed to detect and report money laundering.
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•
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Financial institutions are prohibited from establishing, maintaining, administering or managing correspondent accounts for foreign shell banks (foreign banks that do not have a physical presence in any country), and will be subject to certain record keeping obligations with respect to correspondent accounts of foreign banks.
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•
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Bank regulators are directed to consider a holding company’s effectiveness in combating money laundering when ruling on Federal Reserve Act and Bank Merger Act applications.
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•
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audit committees for all reporting companies;
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•
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certification of financial statements by the chief executive officer and the chief financial officer;
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•
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the forfeiture of bonuses or other incentive-based compensation and profits from the sale of an issuer’s securities by directors and senior officers in the twelve month period following initial publication of any financial statements that later require restatement;
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•
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a prohibition on insider trading during pension plan blackout periods;
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•
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disclosure of off-balance sheet transactions;
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•
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a prohibition on personal loans to directors and officers (other than loans made by an insured depository institution (as defined in the Federal Deposit Insurance Act), if the loan is subject to the insider lending restrictions of Section 22(h) of the Federal Reserve Act);
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•
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expedited filing requirements for Form 4’s;
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•
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disclosure of a code of ethics and filing a Form 8-K for a change or waiver of such code;
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•
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“real time” filing of periodic reports;
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•
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the formation of a public accounting oversight board;
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•
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auditor independence; and
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•
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various increased criminal penalties for violations of the securities laws.
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•
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to an amount equal to 10% of the bank’s capital and surplus, in the case of covered transactions with any one affiliate; and
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•
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to an amount equal to 20% of the bank’s capital and surplus, in the case of covered transactions with all affiliates.
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•
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a loan or extension of credit to an affiliate;
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•
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a purchase of, or an investment in, securities issued by an affiliate;
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•
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a purchase of assets from an affiliate, with some exceptions;
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•
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the acceptance of securities issued by an affiliate as collateral for a loan or extension of credit to any party; and
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•
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the issuance of a guarantee, acceptance or letter of credit on behalf of an affiliate.
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•
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a bank and its subsidiaries may not purchase a low-quality asset from an affiliate;
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•
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covered transactions and other specified transactions between a bank or its subsidiaries and an affiliate must be on terms and conditions that are consistent with safe and sound banking practices; and
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•
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with some exceptions, each loan or extension of credit by a bank to an affiliate must be secured by certain types of collateral with a market value ranging from 100% to 130%, depending on the type of collateral, of the amount of the loan or extension of credit.
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•
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Common Equity Tier 1 Capital Ratio of 4.5% (this is referred to as the “CET1”);
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•
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Tier 1 Capital Ratio (CET1 capital plus “Additional Tier 1 capital”) of 6.0%; and
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•
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Total Capital Ratio (Tier 1 capital plus Tier 2 capital) of 8.0%.
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•
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CET1 of 7.0%;
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•
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Tier 1 Capital Ratio of 8.5%; and
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•
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Total Capital Ratio of 10.5%.
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•
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Minimum Capital Requirements. The Dodd-Frank Act requires new capital rules and the application of the same leverage and risk-based capital requirements that apply to insured depository institutions to most bank holding companies. In addition to making bank holding companies subject to the same capital requirements as their bank subsidiaries, these provisions (often referred to as the Collins Amendment to the Dodd-Frank Act) were also intended to eliminate or significantly reduce the use of hybrid capital instruments, especially trust preferred securities, as regulatory capital. See “Capital Requirements.”
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•
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Deposit Insurance. The Dodd-Frank Act makes permanent the $250,000 deposit insurance limit for insured deposits. Amendments to the Federal Deposit Insurance Act also revised the assessment base against which an insured depository institution’s deposit insurance premiums paid to the Deposit Insurance Fund (“DIF”) are calculated. See “Federal Deposit Insurance and Premiums.”
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•
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Shareholder Votes. The Dodd-Frank Act requires publicly traded companies like Lakeland Bancorp to give shareholders a non-binding vote on executive compensation and so-called “golden parachute” payments in certain circumstances.
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•
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Transactions with Affiliates. The Dodd-Frank Act enhances the requirements for certain transactions with affiliates under Section 23A and 23B of the Federal Reserve Act, including an expansion of the definition of “covered transactions” and increasing the amount of time for which collateral requirements regarding covered transactions must be maintained.
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•
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Transactions with Insiders. Insider transaction limitations are expanded through the strengthening of loan restrictions to insiders and the expansion of the types of transactions subject to the various limits, including derivative transactions, repurchase agreements, reverse repurchase agreements and securities lending or borrowing transactions. Restrictions are also placed on certain asset sales to and from an insider to an institution, including requirements that such sales be on market terms and, in certain circumstances, approved by the institution’s board of directors.
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•
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Enhanced Lending Limits. The Dodd-Frank Act strengthened the previous limits on a depository institution’s credit exposure to one borrower which limited a depository institution’s ability to extend credit to one person (or group of related persons) in an amount exceeding certain thresholds. The Dodd-Frank Act expanded the scope of these restrictions to include credit exposure arising from derivative transactions, repurchase agreements, and securities lending and borrowing transactions.
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•
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Compensation Practices. The Dodd-Frank Act provides that the appropriate federal regulators must establish standards prohibiting as an unsafe and unsound practice any compensation plan of a bank holding company or other “covered financial institution” that provides an insider or other employee with “excessive compensation” or compensation that gives rise to excessive risk or could lead to a material financial loss to such firm. In June 2010, prior to the Dodd-Frank Act, the bank regulatory agencies promulgated the Interagency Guidance on Sound Incentive Compensation Policies, which sets forth three key principles concerning incentive compensation arrangements:
|
▪
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such arrangements should provide employees incentives that balance risk and financial results in a manner that does not encourage employees to expose the financial institution to imprudent risks;
|
▪
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such arrangements should be compatible with effective controls and risk management; and
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▪
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such arrangements should be supported by strong corporate governance with effective and active oversight by the financial institution’s board of directors.
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•
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The Consumer Financial Protection Bureau (“Bureau”). The Dodd-Frank Act created the Bureau within the Federal Reserve. The Bureau is tasked with establishing and implementing rules and regulations under certain federal consumer protection laws with respect to the conduct of providers of certain consumer financial products and services. The Bureau has rulemaking authority over many of the statutes governing products and services offered to bank consumers. In addition, the Dodd-Frank Act permits states to adopt consumer protection laws and regulations that are more stringent than those regulations promulgated by the Bureau and state attorneys general are permitted to enforce consumer protection rules adopted by the Bureau against state-chartered institutions. The Bureau has examination and enforcement authority over all banks and savings institutions with more than $10 billion in assets. Institutions with $10 billion or less in assets, such as the Bank, will continue to be examined for compliance with the consumer laws by their primary bank regulators.
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•
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De Novo Banking. The Dodd-Frank Act allows de novo interstate branching by banks.
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•
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loan delinquencies may increase;
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•
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problem assets and foreclosures may increase;
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•
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demand for our products and services may decrease; and
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•
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collateral for loans made by us may decline in value, in turn reducing the borrowing ability of our customers.
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•
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inflation or deflation
|
•
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excess growth or recession;
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•
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a rise or fall in unemployment;
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•
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tightening or expansion of the money supply;
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•
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domestic and international disorder;
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•
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instability in domestic and foreign financial markets; and
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•
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actions taken or statements made by the Federal Reserve Board.
|
Name and Age
|
|
Officer of the
Company Since
|
|
Position with the Company, its Subsidiary
Banks, and Business Experience
|
Thomas J. Shara
Age 62
|
|
2008
|
|
President and CEO of the Company and the Bank (April 2008 - Present); President and Chief Credit Officer (May 2007 - April 2008) and Executive Vice President and Senior Commercial Banking Officer (February 2006 - May 2007), TD Banknorth, N.A.’s Mid-Atlantic Division.
|
Thomas F. Splaine, Jr.
Age 54
|
|
2016
|
|
Executive Vice President and Chief Financial Officer of the Company and the Bank (March 2017 - Present); First Senior Vice President and Chief Accounting Officer of the Company and the Bank (May 2016 - March 2017); Senior Vice President, Financial Planning and Analysis and Investor Relations of Investors Bancorp, Inc. (January 2015 - December 2015); Senior Vice President and Chief Financial Officer of Investors Bancorp, Inc. (2008 - 2015).
|
Ronald E. Schwarz
Age 65 |
|
2009
|
|
Senior Executive Vice President and Chief Operating Officer of the Company and the Bank (January 2017 - Present); Senior Executive Vice President and Chief Revenue Officer of the Company and the Bank (January 2016 - January 2017); Executive Vice President and Chief Retail Officer of the Company and the Bank (June 2009 - December 2015); Executive Vice President and Market Executive of Sovereign Bank (June 2006 - June 2009).
|
Paul Ho Sing Loy
Age 59 |
|
2019
|
|
Executive Vice President and Chief Information Officer of the Company (January 2019 - Present); Executive Vice President and Chief Information Officer of the Bank (May 2017 - Present); Senior Vice President and Director of Business Solutions, Associated Bank (2012 - 2017); Delivery Manager for Systems in Motion, a technology outsourcing firm (2011 - 2012); Principal Consultant for Jordan Jaden Partners, a technology and management consulting firm (2003 - 2011); Senior IT positions at Wells Fargo, Bank of America and Citibank (1983 - 2003).
|
Ellen Lalwani Age 56
|
|
2018
|
|
Executive Vice President and Chief Banking Officer of the Company and the Bank (January 2020); Executive Vice President and Chief Retail Officer of the Company and the Bank (January 2018 - January 2020); Senior Vice President and Director of Retail Sales of the Bank (August 2008 - January 2018).
|
Timothy J. Matteson, Esq.
Age 50 |
|
2008
|
|
Executive Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary of the Company (January 2017 - Present); Executive Vice President, General Counsel and Corporate Secretary of the Company (March 2012 - January 2017); Senior Vice President and General Counsel of the Company (September 2008 - March 2012); Assistant General Counsel, Israel Discount Bank (November 2007 - September 2008); Senior Attorney and Senior Vice President, TD Banknorth, N.A. (February 2006 - May 2007); General Counsel and Senior Vice President, Hudson United Bancorp and Hudson United Bank (January 2005 - February 2006).
|
James M. Nigro
Age 52 |
|
2016
|
|
Executive Vice President, Chief Risk Officer of the Company (March 2016 - Present); Senior Vice President, Credit Risk Manager of The Provident Bank (December 2013 - March 2016); Senior Vice-President, Commercial Lending of Lakeland Bank (May 2013 - December 2013); Executive Vice President, Chief Lending Officer of Somerset Hills Bank (July 2001 - May 2013).
|
John F. Rath, III
Age 61
|
|
2018
|
|
Executive Vice President and Chief Lending Officer of the Company and the Bank (January 2018 - Present); First Senior Vice-President, Lending Group Manager of the Company (January 2016 - January 2018); Senior Vice-President, Commercial Lending of the Company (March 2015- January 2016); Senior Vice-President, Lending Group Manager of TD Bank (August 1998 - March 2015).
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Company/Market/Peer Group
|
|
12/31/2014
|
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12/31/2015
|
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12/31/2016
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12/31/2017
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12/31/2018
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|
12/31/2019
|
||||||||||||
Lakeland Bancorp, Inc.
|
|
$
|
100.00
|
|
|
$
|
103.90
|
|
|
$
|
177.66
|
|
|
$
|
178.99
|
|
|
$
|
141.01
|
|
|
$
|
170.54
|
|
NASDAQ Market Index
|
|
100.00
|
|
|
106.96
|
|
|
116.45
|
|
|
150.96
|
|
|
146.67
|
|
|
200.50
|
|
||||||
Regional Northeast Banks
|
|
100.00
|
|
|
104.61
|
|
|
145.41
|
|
|
152.23
|
|
|
132.88
|
|
|
160.72
|
|
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
|
|||||
October 1 to October 31, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
2,524,458
|
|
November 1 to November 30, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,524,458
|
|
|
December 1 to December 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,524,458
|
|
|
|
At or for the Years Ended December 31,
|
||||||||||||||||||
(in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
|
||||||||||||||||||
Income Statement
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
|
$
|
256,487
|
|
|
$
|
213,121
|
|
|
$
|
190,204
|
|
|
$
|
163,296
|
|
|
$
|
127,514
|
|
Interest expense
|
|
60,453
|
|
|
39,562
|
|
|
24,966
|
|
|
17,647
|
|
|
10,874
|
|
|||||
Net interest income
|
|
196,034
|
|
|
173,559
|
|
|
165,238
|
|
|
145,649
|
|
|
116,640
|
|
|||||
Provision for loan losses
|
|
2,130
|
|
|
4,413
|
|
|
6,090
|
|
|
4,223
|
|
|
1,942
|
|
|||||
Noninterest income excluding gains on investment securities and gain on debt extinguishment
|
|
26,300
|
|
|
22,893
|
|
|
22,911
|
|
|
20,960
|
|
|
19,090
|
|
|||||
Gains on sales of investment securities
|
|
—
|
|
|
—
|
|
|
2,524
|
|
|
370
|
|
|
241
|
|
|||||
Gain (loss) on equity securities
|
|
496
|
|
|
(583
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Gain on early debt extinguishment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,830
|
|
|||||
Merger related expenses
|
|
3,178
|
|
|
464
|
|
|
—
|
|
|
4,103
|
|
|
1,152
|
|
|||||
Long-term debt prepayment fee
|
|
—
|
|
|
—
|
|
|
2,828
|
|
|
—
|
|
|
2,407
|
|
|||||
Noninterest expenses
|
|
123,578
|
|
|
110,703
|
|
|
101,706
|
|
|
95,814
|
|
|
83,652
|
|
|||||
Income before income taxes
|
|
93,944
|
|
|
80,289
|
|
|
80,049
|
|
|
62,839
|
|
|
48,648
|
|
|||||
Income tax provision
|
|
23,272
|
|
|
16,888
|
|
|
27,469
|
|
|
21,321
|
|
|
16,167
|
|
|||||
Net income
|
|
$
|
70,672
|
|
|
$
|
63,401
|
|
|
$
|
52,580
|
|
|
$
|
41,518
|
|
|
$
|
32,481
|
|
Per-Share Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
50,477
|
|
|
47,578
|
|
|
47,438
|
|
|
42,912
|
|
|
37,844
|
|
|||||
Diluted
|
|
50,642
|
|
|
47,766
|
|
|
47,674
|
|
|
43,114
|
|
|
37,993
|
|
|||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
1.39
|
|
|
$
|
1.32
|
|
|
$
|
1.10
|
|
|
$
|
0.96
|
|
|
$
|
0.85
|
|
Diluted
|
|
$
|
1.38
|
|
|
$
|
1.32
|
|
|
$
|
1.09
|
|
|
$
|
0.95
|
|
|
$
|
0.85
|
|
Cash dividend per common share
|
|
$
|
0.49
|
|
|
$
|
0.45
|
|
|
$
|
0.40
|
|
|
$
|
0.37
|
|
|
$
|
0.33
|
|
Book value per common share
|
|
$
|
14.36
|
|
|
$
|
13.14
|
|
|
$
|
12.31
|
|
|
$
|
11.65
|
|
|
$
|
10.57
|
|
Tangible book value per common share (1)
|
|
$
|
11.18
|
|
|
$
|
10.22
|
|
|
$
|
9.38
|
|
|
$
|
8.70
|
|
|
$
|
7.62
|
|
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities available for sale and other (4)
|
|
$
|
794,878
|
|
|
$
|
667,840
|
|
|
$
|
658,711
|
|
|
$
|
621,803
|
|
|
$
|
456,436
|
|
Investment securities held to maturity
|
|
123,975
|
|
|
153,646
|
|
|
139,685
|
|
|
147,614
|
|
|
116,740
|
|
|||||
Loans, net of deferred fees
|
|
5,137,823
|
|
|
4,456,733
|
|
|
4,152,720
|
|
|
3,870,598
|
|
|
2,965,200
|
|
|||||
Goodwill and other identifiable intangible assets
|
|
160,591
|
|
|
138,201
|
|
|
138,795
|
|
|
139,091
|
|
|
111,519
|
|
|||||
Total assets
|
|
6,711,236
|
|
|
5,806,093
|
|
|
5,405,639
|
|
|
5,093,131
|
|
|
3,869,550
|
|
|||||
Total deposits
|
|
5,293,779
|
|
|
4,620,670
|
|
|
4,368,748
|
|
|
4,092,835
|
|
|
2,995,572
|
|
|||||
Total core deposits (2)
|
|
4,422,975
|
|
|
3,863,632
|
|
|
3,631,320
|
|
|
3,547,927
|
|
|
2,652,251
|
|
|||||
Term borrowings
|
|
284,036
|
|
|
286,145
|
|
|
296,913
|
|
|
365,650
|
|
|
303,143
|
|
|||||
Total stockholders’ equity
|
|
725,263
|
|
|
623,739
|
|
|
583,122
|
|
|
550,044
|
|
|
400,516
|
|
|||||
Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
|
1.12
|
%
|
|
1.15
|
%
|
|
1.00
|
%
|
|
0.90
|
%
|
|
0.89
|
%
|
|||||
Return on average tangible common equity (1)
|
|
13.16
|
%
|
|
13.78
|
%
|
|
12.24
|
%
|
|
12.19
|
%
|
|
11.58
|
%
|
|||||
Return on average equity
|
|
10.14
|
%
|
|
10.59
|
%
|
|
9.25
|
%
|
|
8.75
|
%
|
|
8.28
|
%
|
|||||
Efficiency ratio (1)(3)
|
|
54.83
|
%
|
|
56.09
|
%
|
|
53.40
|
%
|
|
56.74
|
%
|
|
60.94
|
%
|
|||||
Net interest margin (tax equivalent basis)
|
|
3.33
|
%
|
|
3.36
|
%
|
|
3.38
|
%
|
|
3.41
|
%
|
|
3.47
|
%
|
|||||
Loans to deposits
|
|
97.05
|
%
|
|
96.45
|
%
|
|
95.06
|
%
|
|
94.57
|
%
|
|
98.99
|
%
|
|||||
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common equity to asset ratio
|
|
10.81
|
%
|
|
10.74
|
%
|
|
10.79
|
%
|
|
10.80
|
%
|
|
10.35
|
%
|
|||||
Tangible common equity to tangible assets (1)
|
|
8.62
|
%
|
|
8.57
|
%
|
|
8.44
|
%
|
|
8.30
|
%
|
|
7.69
|
%
|
|||||
Tier 1 leverage ratio
|
|
9.41
|
%
|
|
9.39
|
%
|
|
9.12
|
%
|
|
9.07
|
%
|
|
8.70
|
%
|
|||||
Tier 1 risk-based capital ratio
|
|
11.02
|
%
|
|
11.27
|
%
|
|
10.87
|
%
|
|
10.85
|
%
|
|
10.53
|
%
|
|||||
Total risk-based capital ratio
|
|
13.40
|
%
|
|
13.71
|
%
|
|
13.40
|
%
|
|
13.48
|
%
|
|
11.61
|
%
|
|||||
CET1 ratio
|
|
10.46
|
%
|
|
10.62
|
%
|
|
10.18
|
%
|
|
10.11
|
%
|
|
9.54%
|
|
1.
|
A non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation of such measures to data calculated in accordance with generally accepted accounting principles.
|
2.
|
Core deposits represent all deposits with the exception of time deposits.
|
3.
|
Ratio represents noninterest expense, excluding long-term debt prepayment fee, merger related expenses and core deposit amortization, as a percentage of total revenue (calculated on a tax equivalent basis), excluding gains (losses) on securities and gain on debt extinguishment. Total revenue represents net interest income (calculated on a tax equivalent basis) plus noninterest income.
|
4.
|
Includes investment in equity securities, Federal Home Loan Bank and other membership stock, at cost.
|
•
|
The establishment of specific reserve amounts for impaired loans, including purchase-credit impaired loans.
|
•
|
The establishment of reserves for pools of homogeneous loans not subject to specific review, including impaired loans under $500,000, equipment finance loans, 1 - 4 family residential mortgages, and consumer loans.
|
•
|
Net income was $70.7 million, or $1.38 per diluted share, for the year ended December 31, 2019 compared to net income of $63.4 million, or $1.32 per diluted share, for 2018.
|
•
|
Excluding merger-related expenses pertaining to the Company’s January 2019 acquisition of Highlands Bancorp, Inc. ("Highlands") of $2.4 million, tax-effected, net income for the year ended December 31, 2019 was $73.0 million, or $1.43 per diluted share.
|
•
|
In 2019, return on average assets was 1.12%, return on average common equity was 10.14% and return on average tangible common equity was 13.16%. Excluding merger related expenses these ratios in 2019 were 1.16%, 10.48%, and 13.60%, respectively. This compared to 2018 ratios of return on average assets of 1.15%, return on average common equity of 10.59% and return on average tangible common equity of 13.78%.
|
•
|
Total loans increased by $681.1 million, or 15%, from December 31, 2018 to December 31, 2019, including $425.0 million from Highlands.
|
•
|
Total deposits increased $673.1 million, or 15%, from December 31, 2018 to December 31, 2019, including $409.6 million from Highlands.
|
•
|
The Company’s net interest margin was 3.33% for 2019 compared to 3.36% for 2018.
|
•
|
On January 4, 2019, the Company completed its acquisition of Highlands. This acquisition added $496.5 million in total assets. For more information, please see Note 2 in Notes to the Consolidated Financial Statements in this Annual Report on Form 10-K.
|
|
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||||||||||||||
|
|
Increase (Decrease)
Due to Change in:
|
|
Total
Change
|
|
Increase (Decrease)
Due to Change in:
|
|
Total
Change
|
||||||||||||||||
(in thousands)
|
|
Volume
|
|
Rate
|
|
Volume
|
|
Rate
|
|
|||||||||||||||
INTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans
|
|
$
|
30,622
|
|
|
$
|
9,770
|
|
|
$
|
40,392
|
|
|
$
|
11,420
|
|
|
$
|
9,381
|
|
|
$
|
20,801
|
|
Taxable investment securities and other
|
|
1,488
|
|
|
1,524
|
|
|
3,012
|
|
|
655
|
|
|
1,068
|
|
|
1,723
|
|
||||||
Tax-exempt investment securities
|
|
(277
|
)
|
|
25
|
|
|
(252
|
)
|
|
(657
|
)
|
|
(249
|
)
|
|
(906
|
)
|
||||||
Federal funds sold
|
|
114
|
|
|
47
|
|
|
161
|
|
|
(85
|
)
|
|
764
|
|
|
679
|
|
||||||
Total interest income
|
|
31,947
|
|
|
11,366
|
|
|
43,313
|
|
|
11,333
|
|
|
10,964
|
|
|
22,297
|
|
||||||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Savings deposits
|
|
7
|
|
|
35
|
|
|
42
|
|
|
2
|
|
|
15
|
|
|
17
|
|
||||||
Interest-bearing transaction accounts
|
|
3,191
|
|
|
9,255
|
|
|
12,446
|
|
|
279
|
|
|
8,246
|
|
|
8,525
|
|
||||||
Time deposits
|
|
2,396
|
|
|
3,744
|
|
|
6,140
|
|
|
1,782
|
|
|
3,696
|
|
|
5,478
|
|
||||||
Borrowings
|
|
1,233
|
|
|
1,030
|
|
|
2,263
|
|
|
(377
|
)
|
|
953
|
|
|
576
|
|
||||||
Total interest expense
|
|
6,827
|
|
|
14,064
|
|
|
20,891
|
|
|
1,686
|
|
|
12,910
|
|
|
14,596
|
|
||||||
NET INTEREST INCOME
|
|
$
|
25,120
|
|
|
$
|
(2,698
|
)
|
|
$
|
22,422
|
|
|
$
|
9,647
|
|
|
$
|
(1,946
|
)
|
|
$
|
7,701
|
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
(dollars in thousands)
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Rates
Earned/
Paid
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Rates
Earned/
Paid
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Rates
Earned/
Paid
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans (1)
|
|
$
|
4,938,298
|
|
|
$
|
233,535
|
|
|
4.73
|
%
|
|
$
|
4,283,401
|
|
|
$
|
193,143
|
|
|
4.51
|
%
|
|
$
|
4,024,257
|
|
|
$
|
172,342
|
|
|
4.28
|
%
|
Taxable investment securities and other
|
|
799,103
|
|
|
19,722
|
|
|
2.47
|
%
|
|
736,241
|
|
|
16,710
|
|
|
2.27
|
%
|
|
706,167
|
|
|
14,987
|
|
|
2.12
|
%
|
||||||
Tax-exempt securities
|
|
70,271
|
|
|
1,911
|
|
|
2.72
|
%
|
|
80,456
|
|
|
2,163
|
|
|
2.69
|
%
|
|
104,267
|
|
|
3,069
|
|
|
2.94
|
%
|
||||||
Federal funds sold (2)
|
|
87,997
|
|
|
1,720
|
|
|
1.95
|
%
|
|
82,096
|
|
|
1,559
|
|
|
1.90
|
%
|
|
92,295
|
|
|
880
|
|
|
0.95
|
%
|
||||||
Total interest-earning assets
|
|
5,895,669
|
|
|
256,888
|
|
|
4.36
|
%
|
|
5,182,194
|
|
|
213,575
|
|
|
4.12
|
%
|
|
4,926,986
|
|
|
191,278
|
|
|
3.88
|
%
|
||||||
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Allowance for loan losses
|
|
(39,840
|
)
|
|
|
|
|
|
(36,804
|
)
|
|
|
|
|
|
(33,148
|
)
|
|
|
|
|
||||||||||||
Other assets
|
|
466,825
|
|
|
|
|
|
|
383,524
|
|
|
|
|
|
|
373,723
|
|
|
|
|
|
||||||||||||
TOTAL ASSETS
|
|
$
|
6,322,654
|
|
|
|
|
|
|
$
|
5,528,914
|
|
|
|
|
|
|
$
|
5,267,561
|
|
|
|
|
|
|||||||||
LIABILITIES AND STOCKHOLDERS EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings accounts
|
|
$
|
500,650
|
|
|
$
|
335
|
|
|
0.07
|
%
|
|
$
|
489,742
|
|
|
$
|
293
|
|
|
0.06
|
%
|
|
$
|
486,821
|
|
|
$
|
276
|
|
|
0.06
|
%
|
Interest-bearing transaction accounts
|
|
2,653,404
|
|
|
31,157
|
|
|
1.17
|
%
|
|
2,301,065
|
|
|
18,711
|
|
|
0.81
|
%
|
|
2,241,259
|
|
|
10,186
|
|
|
0.45
|
%
|
||||||
Time deposits
|
|
922,412
|
|
|
17,756
|
|
|
1.92
|
%
|
|
778,180
|
|
|
11,616
|
|
|
1.49
|
%
|
|
623,257
|
|
|
6,138
|
|
|
0.98
|
%
|
||||||
Borrowings
|
|
385,365
|
|
|
11,205
|
|
|
2.87
|
%
|
|
340,414
|
|
|
8,942
|
|
|
2.63
|
%
|
|
357,978
|
|
|
8,366
|
|
|
2.34
|
%
|
||||||
Total interest-bearing liabilities
|
|
4,461,831
|
|
|
60,453
|
|
|
1.35
|
%
|
|
3,909,401
|
|
|
39,562
|
|
|
1.01
|
%
|
|
3,709,315
|
|
|
24,966
|
|
|
0.67
|
%
|
||||||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits
|
|
1,092,827
|
|
|
|
|
|
|
984,445
|
|
|
|
|
|
|
959,298
|
|
|
|
|
|
||||||||||||
Other liabilities
|
|
70,959
|
|
|
|
|
|
|
36,541
|
|
|
|
|
|
|
30,268
|
|
|
|
|
|
||||||||||||
Stockholders’ equity
|
|
697,037
|
|
|
|
|
|
|
598,527
|
|
|
|
|
|
|
568,680
|
|
|
|
|
|
||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
6,322,654
|
|
|
|
|
|
|
$
|
5,528,914
|
|
|
|
|
|
|
$
|
5,267,561
|
|
|
|
|
|
|||||||||
Net interest income/spread
|
|
|
|
196,435
|
|
|
3.00
|
%
|
|
|
|
174,013
|
|
|
3.11
|
%
|
|
|
|
166,312
|
|
|
3.21
|
%
|
|||||||||
Tax equivalent basis adjustment
|
|
|
|
401
|
|
|
|
|
|
|
454
|
|
|
|
|
|
|
1,074
|
|
|
|
||||||||||||
NET INTEREST INCOME
|
|
|
|
$
|
196,034
|
|
|
|
|
|
|
$
|
173,559
|
|
|
|
|
|
|
$
|
165,238
|
|
|
|
|||||||||
Net interest margin (3)
|
|
|
|
|
|
3.33
|
%
|
|
|
|
|
|
3.36
|
%
|
|
|
|
|
|
3.38
|
%
|
(1)
|
Includes non-accrual loans, loans held for sale and deferred loan fees.
|
(2)
|
Includes interest-bearing cash accounts.
|
(3)
|
Net interest income on a tax equivalent basis divided by interest-earning assets.
|
|
|
For the Year Ended December 31,
|
||||||||||||||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Calculation of Efficiency Ratio (a Non-GAAP Measure)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total noninterest expense
|
|
$
|
126,756
|
|
|
$
|
111,167
|
|
|
$
|
104,534
|
|
|
$
|
99,917
|
|
|
$
|
87,211
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of core deposit intangibles
|
|
(1,182
|
)
|
|
(594
|
)
|
|
(654
|
)
|
|
(734
|
)
|
|
(415
|
)
|
|||||
Merger related expenses
|
|
(3,178
|
)
|
|
(464
|
)
|
|
—
|
|
|
(4,103
|
)
|
|
(1,152
|
)
|
|||||
Long-term debt prepayment fee
|
|
—
|
|
|
—
|
|
|
(2,828
|
)
|
|
—
|
|
|
(2,407
|
)
|
|||||
Noninterest expense, as adjusted
|
|
$
|
122,396
|
|
|
$
|
110,109
|
|
|
$
|
101,052
|
|
|
$
|
95,080
|
|
|
$
|
83,237
|
|
Net interest income
|
|
$
|
196,034
|
|
|
$
|
173,559
|
|
|
$
|
165,238
|
|
|
$
|
145,649
|
|
|
$
|
116,640
|
|
Noninterest income
|
|
26,796
|
|
|
22,310
|
|
|
25,435
|
|
|
21,330
|
|
|
21,161
|
|
|||||
Total revenue
|
|
222,830
|
|
|
195,869
|
|
|
190,673
|
|
|
166,979
|
|
|
137,801
|
|
|||||
Plus: Tax-equivalent adjustment on municipal securities
|
|
401
|
|
|
454
|
|
|
1,074
|
|
|
962
|
|
|
857
|
|
|||||
Less: Gains on sales of investment securities and debt extinguishment
|
|
—
|
|
|
—
|
|
|
(2,524
|
)
|
|
(370
|
)
|
|
(2,071
|
)
|
|||||
Total revenue, as adjusted
|
|
$
|
223,231
|
|
|
$
|
196,323
|
|
|
$
|
189,223
|
|
|
$
|
167,571
|
|
|
$
|
136,587
|
|
Efficiency ratio (Non-GAAP)
|
|
54.83
|
%
|
|
56.09
|
%
|
|
53.40
|
%
|
|
56.74
|
%
|
|
60.94
|
%
|
|
|
December 31,
|
||||||||||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
|
||||||||||||||||||
Commercial, secured by real estate
|
|
$
|
3,589,593
|
|
|
$
|
3,057,779
|
|
|
$
|
2,831,184
|
|
|
$
|
2,556,601
|
|
|
$
|
1,761,589
|
|
Commercial, industrial and other
|
|
431,934
|
|
|
336,735
|
|
|
340,400
|
|
|
350,228
|
|
|
307,044
|
|
|||||
Equipment finance
|
|
111,076
|
|
|
87,925
|
|
|
75,039
|
|
|
67,016
|
|
|
56,660
|
|
|||||
Real estate - residential mortgage
|
|
335,191
|
|
|
329,854
|
|
|
322,880
|
|
|
349,581
|
|
|
389,692
|
|
|||||
Real estate - construction
|
|
335,169
|
|
|
319,545
|
|
|
264,908
|
|
|
211,109
|
|
|
118,070
|
|
|||||
Home equity and consumer
|
|
337,977
|
|
|
328,609
|
|
|
322,269
|
|
|
339,360
|
|
|
334,891
|
|
|||||
Total loans
|
|
5,140,940
|
|
|
4,460,447
|
|
|
4,156,680
|
|
|
3,873,895
|
|
|
2,967,946
|
|
|||||
Deferred fees
|
|
(3,117
|
)
|
|
(3,714
|
)
|
|
(3,960
|
)
|
|
(3,297
|
)
|
|
(2,746
|
)
|
|||||
Loans, net
|
|
$
|
5,137,823
|
|
|
$
|
4,456,733
|
|
|
$
|
4,152,720
|
|
|
$
|
3,870,598
|
|
|
$
|
2,965,200
|
|
(in thousands)
|
|
Within
One Year
|
|
After One
but Within
Five Years
|
|
After Five
Years
|
|
Total
|
||||||||
|
|
|
||||||||||||||
Commercial, secured by real estate
|
|
$
|
212,023
|
|
|
$
|
729,850
|
|
|
$
|
2,647,720
|
|
|
$
|
3,589,593
|
|
Commercial, industrial and other
|
|
195,559
|
|
|
137,016
|
|
|
99,359
|
|
|
431,934
|
|
||||
Real estate - construction
|
|
121,159
|
|
|
77,832
|
|
|
136,178
|
|
|
335,169
|
|
||||
Total commercial loans
|
|
$
|
528,741
|
|
|
$
|
944,698
|
|
|
$
|
2,883,257
|
|
|
$
|
4,356,696
|
|
Predetermined rates
|
|
$
|
117,766
|
|
|
$
|
676,775
|
|
|
$
|
292,143
|
|
|
$
|
1,086,684
|
|
Floating or adjustable rates
|
|
410,975
|
|
|
267,923
|
|
|
2,591,114
|
|
|
3,270,012
|
|
||||
Total commercial loans
|
|
$
|
528,741
|
|
|
$
|
944,698
|
|
|
$
|
2,883,257
|
|
|
$
|
4,356,696
|
|
|
|
December 31,
|
||||||||||||||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
|
||||||||||||||||||
Commercial, secured by real estate
|
|
$
|
12,314
|
|
|
$
|
7,192
|
|
|
$
|
5,890
|
|
|
$
|
10,413
|
|
|
$
|
10,446
|
|
Commercial, industrial and other
|
|
1,539
|
|
|
1,019
|
|
|
184
|
|
|
167
|
|
|
103
|
|
|||||
Equipment finance
|
|
284
|
|
|
501
|
|
|
144
|
|
|
153
|
|
|
316
|
|
|||||
Real estate - residential mortgage
|
|
3,428
|
|
|
1,986
|
|
|
3,860
|
|
|
6,048
|
|
|
8,664
|
|
|||||
Real estate - construction
|
|
967
|
|
|
—
|
|
|
1,472
|
|
|
1,472
|
|
|
—
|
|
|||||
Home equity and consumer
|
|
2,606
|
|
|
1,432
|
|
|
2,105
|
|
|
2,151
|
|
|
3,167
|
|
|||||
Total non-accrual loans
|
|
21,138
|
|
|
12,130
|
|
|
13,655
|
|
|
20,404
|
|
|
22,696
|
|
|||||
Other real estate and other repossessed assets
|
|
563
|
|
|
830
|
|
|
843
|
|
|
1,072
|
|
|
983
|
|
|||||
Total non-performing assets
|
|
$
|
21,701
|
|
|
$
|
12,960
|
|
|
$
|
14,498
|
|
|
$
|
21,476
|
|
|
$
|
23,679
|
|
Non-performing assets as a percentage of total assets
|
|
0.32
|
%
|
|
0.22
|
%
|
|
0.27
|
%
|
|
0.42
|
%
|
|
0.61
|
%
|
|||||
Loans past due 90 days or more and still accruing
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
200
|
|
|
$
|
10
|
|
|
$
|
331
|
|
Troubled debt restructurings, still accruing
|
|
$
|
5,650
|
|
|
$
|
9,293
|
|
|
$
|
11,462
|
|
|
$
|
8,802
|
|
|
$
|
10,108
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
|
||||||||||||||||||
Allowance balance, beginning of the year
|
|
$
|
37,688
|
|
|
$
|
35,455
|
|
|
$
|
31,245
|
|
|
$
|
30,874
|
|
|
$
|
30,684
|
|
Loans charged off:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, secured by real estate
|
|
(544
|
)
|
|
(421
|
)
|
|
(762
|
)
|
|
(410
|
)
|
|
(1,821
|
)
|
|||||
Commercial, industrial and other
|
|
(645
|
)
|
|
(1,452
|
)
|
|
(477
|
)
|
|
(796
|
)
|
|
(205
|
)
|
|||||
Equipment finance
|
|
(414
|
)
|
|
(507
|
)
|
|
(305
|
)
|
|
(366
|
)
|
|
(548
|
)
|
|||||
Real estate - residential mortgage
|
|
(50
|
)
|
|
(131
|
)
|
|
(441
|
)
|
|
(1,103
|
)
|
|
(375
|
)
|
|||||
Real estate - construction
|
|
—
|
|
|
(248
|
)
|
|
(609
|
)
|
|
—
|
|
|
(20
|
)
|
|||||
Home equity and consumer
|
|
(283
|
)
|
|
(588
|
)
|
|
(852
|
)
|
|
(1,980
|
)
|
|
(1,511
|
)
|
|||||
Total loans charged off
|
|
(1,936
|
)
|
|
(3,347
|
)
|
|
(3,446
|
)
|
|
(4,655
|
)
|
|
(4,480
|
)
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, secured by real estate
|
|
251
|
|
|
468
|
|
|
396
|
|
|
297
|
|
|
2,221
|
|
|||||
Commercial, industrial and other
|
|
1,100
|
|
|
317
|
|
|
172
|
|
|
202
|
|
|
183
|
|
|||||
Equipment finance
|
|
332
|
|
|
23
|
|
|
59
|
|
|
31
|
|
|
26
|
|
|||||
Real estate - residential mortgage
|
|
66
|
|
|
10
|
|
|
5
|
|
|
8
|
|
|
63
|
|
|||||
Real estate - construction
|
|
126
|
|
|
17
|
|
|
31
|
|
|
18
|
|
|
106
|
|
|||||
Home equity and consumer
|
|
246
|
|
|
332
|
|
|
903
|
|
|
247
|
|
|
129
|
|
|||||
Total recoveries
|
|
2,121
|
|
|
1,167
|
|
|
1,566
|
|
|
803
|
|
|
2,728
|
|
|||||
Net recoveries (charge-offs)
|
|
185
|
|
|
(2,180
|
)
|
|
(1,880
|
)
|
|
(3,852
|
)
|
|
(1,752
|
)
|
|||||
Provision for loan losses
|
|
2,130
|
|
|
4,413
|
|
|
6,090
|
|
|
4,223
|
|
|
1,942
|
|
|||||
Allowance balance, end of year
|
|
$
|
40,003
|
|
|
$
|
37,688
|
|
|
$
|
35,455
|
|
|
$
|
31,245
|
|
|
$
|
30,874
|
|
Net charge-offs as a percentage of average loans outstanding
|
|
—
|
%
|
|
0.05
|
%
|
|
0.05
|
%
|
|
0.11
|
%
|
|
0.06
|
%
|
|||||
Allowance as a percentage of year-end total loans outstanding
|
|
0.78
|
%
|
|
0.84
|
%
|
|
0.85
|
%
|
|
0.81
|
%
|
|
1.04
|
%
|
|||||
Allowance as a percent of non-accrual loans
|
|
189.25
|
%
|
|
310.70
|
%
|
|
259.65
|
%
|
|
153.13
|
%
|
|
136.03
|
%
|
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
|
|
Allowance
|
|
% of
Loans in
Each
Category
|
|
Allowance
|
|
% of
Loans in
Each
Category
|
|
Allowance
|
|
% of
Loans in
Each
Category
|
|
Allowance
|
|
% of
Loans in
Each
Category
|
|
Allowance
|
|
% of
Loans in
Each
Category
|
|||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Commercial, secured by real estate
|
|
$
|
28,950
|
|
|
69.8
|
%
|
|
$
|
27,881
|
|
|
68.5
|
%
|
|
$
|
25,704
|
|
|
68.0
|
%
|
|
$
|
21,223
|
|
|
66.1
|
%
|
|
$
|
20,223
|
|
|
59.4
|
%
|
Commercial, industrial and other
|
|
3,289
|
|
|
8.4
|
%
|
|
1,742
|
|
|
7.5
|
%
|
|
2,313
|
|
|
8.2
|
%
|
|
1,723
|
|
|
9.0
|
%
|
|
2,637
|
|
|
10.3
|
%
|
|||||
Equipment finance
|
|
957
|
|
|
2.2
|
%
|
|
987
|
|
|
2.0
|
%
|
|
630
|
|
|
1.8
|
%
|
|
548
|
|
|
1.7
|
%
|
|
460
|
|
|
1.9
|
%
|
|||||
Real estate - residential mortgage
|
|
1,725
|
|
|
6.5
|
%
|
|
1,566
|
|
|
7.4
|
%
|
|
1,557
|
|
|
7.8
|
%
|
|
1,964
|
|
|
9.0
|
%
|
|
2,588
|
|
|
13.1
|
%
|
|||||
Real estate - construction
|
|
2,672
|
|
|
6.5
|
%
|
|
3,015
|
|
|
7.2
|
%
|
|
2,731
|
|
|
6.4
|
%
|
|
2,352
|
|
|
5.4
|
%
|
|
1,591
|
|
|
4.0
|
%
|
|||||
Home equity and consumer
|
|
2,410
|
|
|
6.6
|
%
|
|
2,497
|
|
|
7.4
|
%
|
|
2,520
|
|
|
7.8
|
%
|
|
3,435
|
|
|
8.8
|
%
|
|
3,375
|
|
|
11.3
|
%
|
|||||
|
|
$
|
40,003
|
|
|
100.0
|
%
|
|
$
|
37,688
|
|
|
100.0
|
%
|
|
$
|
35,455
|
|
|
100.0
|
%
|
|
$
|
31,245
|
|
|
100.0
|
%
|
|
$
|
30,874
|
|
|
100.0
|
%
|
|
|
December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
||||||||||
U.S. Treasury and U.S. government agencies
|
|
$
|
166,982
|
|
|
$
|
173,952
|
|
|
$
|
180,670
|
|
Mortgage-backed securities, residential
|
|
578,108
|
|
|
502,003
|
|
|
469,245
|
|
|||
Mortgage-backed securities, multifamily
|
|
50,935
|
|
|
22,803
|
|
|
12,034
|
|
|||
Obligations of states and political subdivisions
|
|
72,182
|
|
|
83,414
|
|
|
94,638
|
|
|||
Debt securities
|
|
11,668
|
|
|
10,092
|
|
|
11,144
|
|
|||
|
|
$
|
879,875
|
|
|
$
|
792,264
|
|
|
$
|
767,731
|
|
(dollars in thousands)
|
|
Within
One Year
|
|
Over One
but Within
Five Years
|
|
Over Five
but Within
Ten Years
|
|
After Ten
Years
|
|
Total
|
||||||||||
Available for Sale
|
|
|
||||||||||||||||||
U.S. Treasury and U.S. government agencies
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
$
|
23,516
|
|
|
$
|
74,638
|
|
|
$
|
22,439
|
|
|
$
|
15,054
|
|
|
$
|
135,647
|
|
Yield
|
|
1.74
|
%
|
|
1.91
|
%
|
|
2.99
|
%
|
|
2.92
|
%
|
|
2.17
|
%
|
|||||
Mortgage-backed securities, residential
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
3
|
|
|
5,218
|
|
|
64,308
|
|
|
432,350
|
|
|
501,879
|
|
|||||
Yield
|
|
5.62
|
%
|
|
2.32
|
%
|
|
2.15
|
%
|
|
2.45
|
%
|
|
2.41
|
%
|
|||||
Mortgage-backed securities, multifamily
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
4,878
|
|
|
14,289
|
|
|
—
|
|
|
30,018
|
|
|
49,185
|
|
|||||
Yield
|
|
1.73
|
%
|
|
2.80
|
%
|
|
—
|
%
|
|
2.94
|
%
|
|
2.78
|
%
|
|||||
Obligations of states and political subdivisions
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
6,270
|
|
|
31,973
|
|
|
21,778
|
|
|
—
|
|
|
60,021
|
|
|||||
Yield
|
|
2.65
|
%
|
|
2.07
|
%
|
|
2.17
|
%
|
|
—
|
%
|
|
2.17
|
%
|
|||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
—
|
|
|
—
|
|
|
9,168
|
|
|
—
|
|
|
9,168
|
|
|||||
Yield
|
|
—
|
%
|
|
—
|
%
|
|
6.25
|
%
|
|
—
|
%
|
|
6.25
|
%
|
|||||
Total securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
$
|
34,667
|
|
|
$
|
126,118
|
|
|
$
|
117,693
|
|
|
$
|
477,422
|
|
|
$
|
755,900
|
|
Yield
|
|
1.91
|
%
|
|
2.07
|
%
|
|
2.63
|
%
|
|
2.50
|
%
|
|
2.42
|
%
|
(dollars in thousands)
|
|
Within
One Year
|
|
Over One
but Within
Five Years
|
|
Over Five
but Within
Ten Years
|
|
After Ten
Years
|
|
Total
|
||||||||||
Held to Maturity
|
|
|
||||||||||||||||||
U.S. Treasury and U.S. government agencies
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
$
|
5,104
|
|
|
$
|
23,030
|
|
|
$
|
3,201
|
|
|
$
|
—
|
|
|
$
|
31,335
|
|
Yield
|
|
1.60
|
%
|
|
2.04
|
%
|
|
3.38
|
%
|
|
—
|
%
|
|
2.11
|
%
|
|||||
Mortgage-backed securities, residential
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
—
|
|
|
116
|
|
|
1,759
|
|
|
74,354
|
|
|
76,229
|
|
|||||
Yield
|
|
—
|
%
|
|
5.03
|
%
|
|
2.17
|
%
|
|
2.44
|
%
|
|
2.44
|
%
|
|||||
Mortgage-backed securities, multifamily
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
999
|
|
|
—
|
|
|
751
|
|
|
—
|
|
|
1,750
|
|
|||||
Yield
|
|
2.33
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
1.33
|
%
|
|||||
Obligations of states and political subdivisions
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
2,217
|
|
|
8,072
|
|
|
1,114
|
|
|
758
|
|
|
12,161
|
|
|||||
Yield
|
|
2.26
|
%
|
|
2.04
|
%
|
|
2.21
|
%
|
|
2.00
|
%
|
|
2.09
|
%
|
|||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
—
|
|
|
—
|
|
|
2,500
|
|
|
—
|
|
|
2,500
|
|
|||||
Yield
|
|
—
|
%
|
|
—
|
%
|
|
6.25
|
%
|
|
—
|
%
|
|
6.25
|
%
|
|||||
Total securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount
|
|
$
|
8,320
|
|
|
$
|
31,218
|
|
|
$
|
9,325
|
|
|
$
|
75,112
|
|
|
$
|
123,975
|
|
Yield
|
|
1.86
|
%
|
|
2.05
|
%
|
|
3.51
|
%
|
|
2.43
|
%
|
|
2.38
|
%
|
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(dollars in thousands)
|
|
Average
Balance
|
|
Average
Rate
|
|
Average
Balance
|
|
Average
Rate
|
|
Average
Balance
|
|
Average
Rate
|
|||||||||
|
|
|
|||||||||||||||||||
Noninterest-bearing demand deposits
|
|
$
|
1,092,827
|
|
|
—
|
%
|
|
$
|
984,445
|
|
|
—
|
%
|
|
$
|
959,298
|
|
|
—
|
%
|
Interest-bearing transaction accounts
|
|
2,653,404
|
|
|
1.17
|
%
|
|
2,301,065
|
|
|
0.81
|
%
|
|
2,241,259
|
|
|
0.45
|
%
|
|||
Savings
|
|
500,650
|
|
|
0.07
|
%
|
|
489,742
|
|
|
0.06
|
%
|
|
486,821
|
|
|
0.06
|
%
|
|||
Time deposits
|
|
922,412
|
|
|
1.92
|
%
|
|
778,180
|
|
|
1.49
|
%
|
|
623,257
|
|
|
0.98
|
%
|
|||
Total
|
|
$
|
5,169,293
|
|
|
0.95
|
%
|
|
$
|
4,553,432
|
|
|
0.67
|
%
|
|
$
|
4,310,635
|
|
|
0.38
|
%
|
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Federal Funds Purchased
|
|
|
|
|
|
||||||
Balance at December 31,
|
$
|
284,983
|
|
|
$
|
192,064
|
|
|
$
|
80,000
|
|
Weighted average interest rate at December 31,
|
1.85
|
%
|
|
2.88
|
%
|
|
1.71
|
%
|
|||
Average daily balance during the year
|
$
|
52,421
|
|
|
$
|
21,338
|
|
|
$
|
13,264
|
|
Weighted average interest rate during the year
|
2.56
|
%
|
|
2.03
|
%
|
|
1.42
|
%
|
|||
Maximum amount outstanding at any month-end during the year
|
$
|
385,000
|
|
|
$
|
214,165
|
|
|
$
|
168,784
|
|
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Securities Sold Under Agreements to Repurchase
|
|
|
|
|
|
||||||
Balance at December 31,
|
$
|
43,675
|
|
|
$
|
41,841
|
|
|
$
|
44,936
|
|
Weighted average interest rate at December 31,
|
0.33
|
%
|
|
0.26
|
%
|
|
0.02
|
%
|
|||
Average daily balance during the year
|
$
|
42,615
|
|
|
$
|
32,435
|
|
|
$
|
28,480
|
|
Weighted average interest rate during the year
|
0.30
|
%
|
|
0.12
|
%
|
|
0.03
|
%
|
|||
Maximum amount outstanding at any month-end during the year
|
$
|
49,669
|
|
|
$
|
50,526
|
|
|
$
|
44,936
|
|
•
|
Net income. Cash provided by operating activities was $87.1 million in 2019 compared to $79.4 million and $67.5 million in 2018 and 2017, respectively.
|
•
|
Deposits. Lakeland can offer new products or change its rate structure in order to increase deposits. In 2019, Lakeland generated $263.4 million in deposit growth, excluding the impact of the Highlands acquisition, compared to $251.9 million in 2018.
|
•
|
Sales of securities and overnight funds. At year-end 2019, the Company had $755.9 million in securities designated “available for sale.” Of these securities, $520.3 million was pledged to secure public deposits and for other purposes required by applicable laws and regulations.
|
•
|
Repayments on loans can also be a source of liquidity to fund further loan growth.
|
•
|
Overnight credit lines. As a member of the Federal Home Loan Bank of New York (“FHLB”), Lakeland has the ability to borrow overnight and short term based on the market value of collateral pledged. Lakeland had $200.0 million in overnight and short term borrowings from the FHLB on December 31, 2019. Lakeland also has overnight federal funds lines available for it to borrow up to $230.0 million from correspondent banks. Lakeland had borrowings against these lines of $85.0 million at December 31, 2019. Lakeland also has the ability to utilize a line of credit from the FHLB to secure a portion of its public deposits. Lakeland may also borrow from the discount window of the Federal Reserve Bank of New York based on the market value of collateral pledged. Lakeland had no borrowings with the Federal Reserve Bank of New York as of December 31, 2019.
|
•
|
Other borrowings. Lakeland can also generate funds by utilizing long-term debt or securities sold under agreements to repurchase that would be collateralized by security or mortgage collateral. At times the market 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 the Company to pledge additional collateral to meet that margin call. For more information regarding the Company’s borrowings, see Note 9 to the Consolidated Financial Statements.
|
|
|
Payment Due Period
|
||||||||||||||||||
(in thousands)
|
|
Total
|
|
Within
One Year
|
|
After
One but
Within Three
Years
|
|
After Three
but Within
Five Years
|
|
After
Five Years
|
||||||||||
|
|
|
||||||||||||||||||
Minimum annual rentals or noncancellable operating leases
|
|
$
|
24,010
|
|
|
$
|
3,300
|
|
|
$
|
5,683
|
|
|
$
|
4,465
|
|
|
$
|
10,562
|
|
Benefit plan commitments
|
|
5,314
|
|
|
397
|
|
|
793
|
|
|
798
|
|
|
3,326
|
|
|||||
Remaining contractual maturities of time deposits
|
|
870,804
|
|
|
715,060
|
|
|
146,178
|
|
|
9,478
|
|
|
88
|
|
|||||
Subordinated debentures
|
|
118,220
|
|
|
—
|
|
|
—
|
|
|
5,335
|
|
|
112,885
|
|
|||||
Loan commitments and lines of credit
|
|
1,086,522
|
|
|
753,101
|
|
|
150,143
|
|
|
81,705
|
|
|
101,573
|
|
|||||
Other borrowings
|
|
165,816
|
|
|
55,881
|
|
|
85,498
|
|
|
24,437
|
|
|
—
|
|
|||||
Interest on other borrowings (1)
|
|
58,529
|
|
|
9,436
|
|
|
15,816
|
|
|
12,451
|
|
|
20,826
|
|
|||||
Standby letters of credit
|
|
17,204
|
|
|
16,909
|
|
|
215
|
|
|
80
|
|
|
—
|
|
|||||
Total
|
|
$
|
2,346,419
|
|
|
$
|
1,554,084
|
|
|
$
|
404,326
|
|
|
$
|
138,749
|
|
|
$
|
249,260
|
|
(1)
|
Includes interest on other borrowings and subordinated debentures at a weighted rate of 3.49%.
|
|
|
Changes in Interest Rates
|
||||
Rate Ramp
|
|
+200 bp
|
|
-200 bp
|
||
Asset/Liability Policy limit
|
|
(5.0
|
)%
|
|
(5.0
|
)%
|
December 31, 2019
|
|
(0.6
|
)%
|
|
(0.7
|
)%
|
December 31, 2018
|
|
(1.5
|
)%
|
|
(0.7
|
)%
|
|
|
Changes in Interest Rates
|
|||||||||||||
Rate Shock
|
|
+300 bp
|
|
+200 bp
|
|
+100 bp
|
|
-100 bp
|
|
-200 bp
|
|||||
Asset/Liability Policy limit
|
|
(15.0
|
)%
|
|
(10.0
|
)%
|
|
(5.0
|
)%
|
|
(5.0
|
)%
|
|
(10.0
|
)%
|
December 31, 2019
|
|
2.4
|
%
|
|
1.7
|
%
|
|
1.1
|
%
|
|
(3.3
|
)%
|
|
(4.6
|
)%
|
December 31, 2018
|
|
0.6
|
%
|
|
0.4
|
%
|
|
0.3
|
%
|
|
(2.5
|
)%
|
|
(8.0
|
)%
|
|
|
Changes in Interest Rates
|
|||||||||||||
Rate Shock
|
|
+300 bp
|
|
+200 bp
|
|
+100 bp
|
|
-100 bp
|
|
-200 bp
|
|||||
Asset/Liability Policy limit
|
|
(25.0
|
)%
|
|
(20.0
|
)%
|
|
(10.0
|
)%
|
|
(10.0
|
)%
|
|
(20.0
|
)%
|
December 31, 2019
|
|
(4.8
|
)%
|
|
(2.8
|
)%
|
|
(0.9
|
)%
|
|
(1.2
|
)%
|
|
(5.2
|
)%
|
December 31, 2018
|
|
(5.2
|
)%
|
|
(3.3
|
)%
|
|
(1.4
|
)%
|
|
(0.2
|
)%
|
|
(1.5
|
)%
|
|
|
Tier 1 Capital
to Total Average
Assets Ratio
December 31,
|
|
Common Equity Tier 1
to Risk-Weighted
Assets Ratio
December 31,
|
|
Tier 1 Capital
to Risk-Weighted
Assets Ratio
December 31,
|
|
Total Capital
to Risk-Weighted
Assets Ratio
December 31,
|
||||||||||||||||
Capital Ratios
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Company
|
|
9.41
|
%
|
|
9.39
|
%
|
|
10.46
|
%
|
|
10.62
|
%
|
|
11.02
|
%
|
|
11.27
|
%
|
|
13.40
|
%
|
|
13.71
|
%
|
Lakeland
|
|
10.16
|
%
|
|
10.17
|
%
|
|
11.89
|
%
|
|
12.20
|
%
|
|
11.89
|
%
|
|
12.20
|
%
|
|
12.67
|
%
|
|
13.06
|
%
|
Required capital ratios including conservation buffer
|
|
4.00
|
%
|
|
4.00
|
%
|
|
7.00
|
%
|
|
6.38
|
%
|
|
8.50
|
%
|
|
7.88
|
%
|
|
10.50
|
%
|
|
9.88
|
%
|
“Well capitalized” institution under FDIC regulations
|
|
5.00
|
%
|
|
5.00
|
%
|
|
6.50
|
%
|
|
6.50
|
%
|
|
8.00
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
|
10.00
|
%
|
|
|
December 31,
|
||||||||||||||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
|
||||||||||||||||||
Total common stockholders’ equity at end of period - GAAP
|
|
$
|
725,263
|
|
|
$
|
623,739
|
|
|
$
|
583,122
|
|
|
$
|
550,044
|
|
|
$
|
400,516
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
|
156,277
|
|
|
136,433
|
|
|
136,433
|
|
|
135,747
|
|
|
109,974
|
|
|||||
Other identifiable intangible assets, net
|
|
4,314
|
|
|
1,768
|
|
|
2,362
|
|
|
3,344
|
|
|
1,545
|
|
|||||
Total tangible common stockholders’ equity at end of period - Non-GAAP
|
|
$
|
564,672
|
|
|
$
|
485,538
|
|
|
$
|
444,327
|
|
|
$
|
410,953
|
|
|
$
|
288,997
|
|
Shares outstanding at end of period
|
|
50,498
|
|
|
47,486
|
|
|
47,354
|
|
|
47,223
|
|
|
37,906
|
|
|||||
Book value per share - GAAP
|
|
$
|
14.36
|
|
|
$
|
13.14
|
|
|
$
|
12.31
|
|
|
$
|
11.65
|
|
|
$
|
10.57
|
|
Tangible book value per share - Non-GAAP
|
|
$
|
11.18
|
|
|
$
|
10.22
|
|
|
$
|
9.38
|
|
|
$
|
8.70
|
|
|
$
|
7.62
|
|
|
|
December 31,
|
||||||||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||
|
|
|
||||||||||||||||||
Total tangible common stockholders’ equity at end of period - Non-GAAP
|
|
$
|
564,672
|
|
|
$
|
485,538
|
|
|
$
|
444,327
|
|
|
$
|
410,953
|
|
|
$
|
288,997
|
|
Total assets at end of period - GAAP
|
|
$
|
6,711,236
|
|
|
$
|
5,806,093
|
|
|
$
|
5,405,639
|
|
|
$
|
5,093,131
|
|
|
$
|
3,869,550
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
|
156,277
|
|
|
136,433
|
|
|
136,433
|
|
|
135,747
|
|
|
109,974
|
|
|||||
Other identifiable intangible assets, net
|
|
4,314
|
|
|
1,768
|
|
|
2,362
|
|
|
3,344
|
|
|
1,545
|
|
|||||
Total tangible assets at end of period - Non-GAAP
|
|
$
|
6,550,645
|
|
|
$
|
5,667,892
|
|
|
$
|
5,266,844
|
|
|
$
|
4,954,040
|
|
|
$
|
3,758,031
|
|
Common equity to assets - GAAP
|
|
10.81
|
%
|
|
10.74
|
%
|
|
10.79
|
%
|
|
10.80
|
%
|
|
10.35
|
%
|
|||||
Tangible common equity to tangible assets - Non-GAAP
|
|
8.62
|
%
|
|
8.57
|
%
|
|
8.44
|
%
|
|
8.30
|
%
|
|
7.69
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Calculation of Return on Average Tangible Common Equity
|
|
|
|
|
|
|||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||
|
|
|
||||||||||||||||||
Net income - GAAP
|
|
$
|
70,672
|
|
|
$
|
63,401
|
|
|
$
|
52,580
|
|
|
$
|
41,518
|
|
|
$
|
32,481
|
|
Total average common stockholders’ equity - GAAP
|
|
$
|
697,037
|
|
|
$
|
598,527
|
|
|
$
|
568,680
|
|
|
$
|
474,540
|
|
|
$
|
392,221
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average goodwill
|
|
154,971
|
|
|
136,433
|
|
|
136,095
|
|
|
130,689
|
|
|
109,974
|
|
|||||
Average other identifiable intangible assets, net
|
|
4,883
|
|
|
2,064
|
|
|
2,847
|
|
|
3,225
|
|
|
1,759
|
|
|||||
Total average tangible common stockholders’ equity - Non-GAAP
|
|
$
|
537,183
|
|
|
$
|
460,030
|
|
|
$
|
429,738
|
|
|
$
|
340,626
|
|
|
$
|
280,488
|
|
Return on average common stockholders’ equity - GAAP
|
|
10.14
|
%
|
|
10.59
|
%
|
|
9.25
|
%
|
|
8.75
|
%
|
|
8.28
|
%
|
|||||
Return on average tangible common stockholders’ equity - Non-GAAP
|
|
13.16
|
%
|
|
13.78
|
%
|
|
12.24
|
%
|
|
12.19
|
%
|
|
11.58
|
%
|
Reconciliation of Net Income
|
|
|
|
|
||||
|
|
For the Year Ended December 31,
|
||||||
(in thousands, except per share data)
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
Net income - GAAP
|
|
$
|
70,672
|
|
|
$
|
63,401
|
|
|
|
|
|
|
||||
NON-ROUTINE TRANSACTIONS, NET OF TAX
|
|
|
|
|
||||
Tax deductible merger-related expenses
|
|
1,878
|
|
|
84
|
|
||
Non-tax deductible merger-related expenses
|
|
491
|
|
|
345
|
|
||
Net effect of non-routine transactions
|
|
2,369
|
|
|
429
|
|
||
|
|
|
|
|
||||
Net income available to common shareholders excluding non-routine transactions
|
|
73,041
|
|
|
63,830
|
|
||
Less: Earnings allocated to participating securities
|
|
(596
|
)
|
|
(582
|
)
|
||
Net Income, excluding non-routine transactions
|
|
$
|
72,445
|
|
|
$
|
63,248
|
|
|
|
|
|
|
||||
Weighted average shares - Basic
|
|
50,477
|
|
|
47,578
|
|
||
Weighted average shares - Diluted
|
|
50,642
|
|
|
47,766
|
|
||
|
|
|
|
|
||||
Basic earnings per share - GAAP
|
|
$
|
1.39
|
|
|
$
|
1.32
|
|
Diluted earnings per share - GAAP
|
|
$
|
1.38
|
|
|
$
|
1.32
|
|
|
|
|
|
|
||||
Basic earnings per share, adjusted for non-routine transactions
|
|
$
|
1.44
|
|
|
$
|
1.33
|
|
Diluted earnings per share, adjusted for non-routine transactions (Core EPS)
|
|
$
|
1.43
|
|
|
$
|
1.32
|
|
|
|
|
|
|
||||
Return on average assets - GAAP
|
|
1.12
|
%
|
|
1.15
|
%
|
||
Return on average assets, adjusted for non-routine transactions
|
|
1.16
|
%
|
|
1.15
|
%
|
||
|
|
|
|
|
||||
Return on average common stockholders' equity - GAAP
|
|
10.14
|
%
|
|
10.59
|
%
|
||
Return on average common stockholders' equity, adjusted for non-routine transactions
|
|
10.48
|
%
|
|
10.66
|
%
|
||
|
|
|
|
|
||||
Return on average tangible common stockholders' equity - Non-GAAP
|
|
13.16
|
%
|
|
13.78
|
%
|
||
Return on average tangible common stockholders' equity - Non-GAAP, adjusted for non-routine transactions
|
|
13.60
|
%
|
|
13.88
|
%
|
|
|
Quarter Ended
|
||||||||||||||
(in thousands, except per share amounts
|
|
March 31,
2019
|
|
June 30,
2019
|
|
September 30,
2019
|
|
December 31,
2019
|
||||||||
|
|
|
||||||||||||||
Total interest income
|
|
$
|
63,177
|
|
|
$
|
64,848
|
|
|
$
|
64,626
|
|
|
$
|
63,836
|
|
Total interest expense
|
|
14,571
|
|
|
15,650
|
|
|
15,944
|
|
|
14,288
|
|
||||
Net interest income
|
|
48,606
|
|
|
49,198
|
|
|
48,682
|
|
|
49,548
|
|
||||
Provision for loan losses
|
|
508
|
|
|
—
|
|
|
536
|
|
|
1,086
|
|
||||
Noninterest income
|
|
5,723
|
|
|
6,389
|
|
|
6,700
|
|
|
7,984
|
|
||||
Merger related expenses
|
|
2,860
|
|
|
318
|
|
|
—
|
|
|
—
|
|
||||
Core deposit intangible amortization
|
|
304
|
|
|
301
|
|
|
288
|
|
|
289
|
|
||||
Noninterest expense
|
|
30,820
|
|
|
31,067
|
|
|
29,275
|
|
|
31,234
|
|
||||
Income before taxes
|
|
19,837
|
|
|
23,901
|
|
|
25,283
|
|
|
24,923
|
|
||||
Income taxes
|
|
4,211
|
|
|
6,444
|
|
|
6,409
|
|
|
6,208
|
|
||||
Net income
|
|
$
|
15,626
|
|
|
$
|
17,457
|
|
|
$
|
18,874
|
|
|
$
|
18,715
|
|
Earnings per share of common stock
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.31
|
|
|
$
|
0.34
|
|
|
$
|
0.37
|
|
|
$
|
0.37
|
|
Diluted
|
|
0.31
|
|
|
$
|
0.34
|
|
|
0.37
|
|
|
0.37
|
|
|
|
Quarter Ended
|
||||||||||||||
(in thousands, except per share amounts
|
|
March 31,
2018 |
|
June 30,
2018 |
|
September 30,
2018 |
|
December 31,
2018 |
||||||||
|
|
|
||||||||||||||
Total interest income
|
|
$
|
50,145
|
|
|
$
|
52,260
|
|
|
$
|
54,282
|
|
|
$
|
56,434
|
|
Total interest expense
|
|
7,909
|
|
|
8,767
|
|
|
10,658
|
|
|
12,228
|
|
||||
Net interest income
|
|
42,236
|
|
|
43,493
|
|
|
43,624
|
|
|
44,206
|
|
||||
Provision for loan losses
|
|
1,284
|
|
|
1,492
|
|
|
1,046
|
|
|
591
|
|
||||
Noninterest income
|
|
5,334
|
|
|
5,709
|
|
|
5,639
|
|
|
5,628
|
|
||||
Merger related expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
464
|
|
||||
Core deposit intangible amortization
|
|
157
|
|
|
153
|
|
|
142
|
|
|
142
|
|
||||
Noninterest expense
|
|
26,980
|
|
|
27,421
|
|
|
27,651
|
|
|
28,057
|
|
||||
Income before taxes
|
|
19,149
|
|
|
20,136
|
|
|
20,424
|
|
|
20,580
|
|
||||
Income taxes
|
|
3,894
|
|
|
4,298
|
|
|
3,666
|
|
|
5,030
|
|
||||
Net income
|
|
$
|
15,255
|
|
|
$
|
15,838
|
|
|
$
|
16,758
|
|
|
$
|
15,550
|
|
Earnings per share of common stock
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.32
|
|
|
$
|
0.33
|
|
|
$
|
0.35
|
|
|
$
|
0.32
|
|
Diluted
|
|
0.32
|
|
|
$
|
0.33
|
|
|
0.35
|
|
|
0.32
|
|
–
|
assessing the maximum qualitative factor adjustment based on the highest losses during the loss migration period,
|
–
|
evaluating the metrics, including the relevance of sources of data and assumptions, used to allocate the qualitative factor adjustments, and
|
–
|
analyzing the determination of each qualitative factor adjustment.
|
–
|
Company’s collective reserve methodology for compliance with U.S. generally accepted accounting principles,
|
–
|
loss migration period, by evaluating the methodology used to determine the historical loss rates in the loss migration period, and the loss emergence period, by evaluating the methodology used to develop the loss emergence period assumptions,
|
–
|
framework used to develop the resulting qualitative adjustments and the effect on the collective reserve compared with relevant credit risk factors and consistency with credit trends, and
|
–
|
internal risk ratings for commercial loans, by evaluating the financial performance of the borrower and the underlying collateral.
|
|
|
December 31,
|
||||||
(dollars in thousands)
|
|
2019
|
|
2018
|
||||
ASSETS
|
|
|
|
|
||||
Cash
|
|
$
|
275,794
|
|
|
$
|
205,199
|
|
Interest-bearing deposits due from banks
|
|
6,577
|
|
|
3,400
|
|
||
Total cash and cash equivalents
|
|
282,371
|
|
|
208,599
|
|
||
Investment securities, available for sale, at fair value
|
|
755,900
|
|
|
638,618
|
|
||
Equity securities, at fair value
|
|
16,473
|
|
|
15,921
|
|
||
Investment securities, held to maturity, at amortized cost with fair value of
$124,904 at December 31, 2019 and $150,932 at December 31, 2018 |
|
123,975
|
|
|
153,646
|
|
||
Federal Home Loan Bank and other membership stock, at cost
|
|
22,505
|
|
|
13,301
|
|
||
Loans held for sale
|
|
1,743
|
|
|
1,113
|
|
||
Loans, net of deferred fees
|
|
5,137,823
|
|
|
4,456,733
|
|
||
Allowance for loan losses
|
|
(40,003
|
)
|
|
(37,688
|
)
|
||
Net loans
|
|
5,097,820
|
|
|
4,419,045
|
|
||
Premises and equipment, net
|
|
47,608
|
|
|
49,175
|
|
||
Operating lease right-of-use assets
|
|
18,282
|
|
|
—
|
|
||
Accrued interest receivable
|
|
16,832
|
|
|
16,114
|
|
||
Goodwill
|
|
156,277
|
|
|
136,433
|
|
||
Other identifiable intangible assets
|
|
4,314
|
|
|
1,768
|
|
||
Bank owned life insurance
|
|
112,392
|
|
|
110,052
|
|
||
Other assets
|
|
54,744
|
|
|
42,308
|
|
||
TOTAL ASSETS
|
|
$
|
6,711,236
|
|
|
$
|
5,806,093
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
LIABILITIES:
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Noninterest-bearing
|
|
$
|
1,124,121
|
|
|
$
|
950,218
|
|
Savings and interest-bearing transaction accounts
|
|
3,298,854
|
|
|
2,913,414
|
|
||
Time deposits $250 thousand and under
|
|
652,144
|
|
|
589,737
|
|
||
Time deposits over $250 thousand
|
|
218,660
|
|
|
167,301
|
|
||
Total deposits
|
|
5,293,779
|
|
|
4,620,670
|
|
||
Federal funds purchased and securities sold under agreements to repurchase
|
|
328,658
|
|
|
233,905
|
|
||
Other borrowings
|
|
165,816
|
|
|
181,118
|
|
||
Subordinated debentures
|
|
118,220
|
|
|
105,027
|
|
||
Operating lease liabilities
|
|
19,814
|
|
|
—
|
|
||
Other liabilities
|
|
59,686
|
|
|
41,634
|
|
||
TOTAL LIABILITIES
|
|
5,985,973
|
|
|
5,182,354
|
|
||
STOCKHOLDERS’ EQUITY:
|
|
|
|
|
||||
Common stock, no par value; authorized 100,000,000 shares; issued shares, 50,498,410 at December 31, 2019 and 47,486,250 at December 31, 2018
|
|
560,263
|
|
|
514,703
|
|
||
Retained earnings
|
|
162,752
|
|
|
116,874
|
|
||
Accumulated other comprehensive gain (loss)
|
|
2,248
|
|
|
(7,838
|
)
|
||
TOTAL STOCKHOLDERS’ EQUITY
|
|
725,263
|
|
|
623,739
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
6,711,236
|
|
|
$
|
5,806,093
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2017
|
||||||
INTEREST INCOME
|
|
|
|
|
|
|
||||||
Loans and fees
|
|
$
|
233,535
|
|
|
$
|
193,143
|
|
|
$
|
172,342
|
|
Federal funds sold and interest-bearing deposits with banks
|
|
1,720
|
|
|
1,559
|
|
|
880
|
|
|||
Taxable investment securities and other
|
|
19,722
|
|
|
16,710
|
|
|
14,987
|
|
|||
Tax-exempt investment securities
|
|
1,510
|
|
|
1,709
|
|
|
1,995
|
|
|||
TOTAL INTEREST INCOME
|
|
256,487
|
|
|
213,121
|
|
|
190,204
|
|
|||
INTEREST EXPENSE
|
|
|
|
|
|
|
||||||
Deposits
|
|
49,248
|
|
|
30,620
|
|
|
16,600
|
|
|||
Federal funds purchased and securities sold under agreements to repurchase
|
|
1,471
|
|
|
471
|
|
|
198
|
|
|||
Other borrowings
|
|
9,734
|
|
|
8,471
|
|
|
8,168
|
|
|||
TOTAL INTEREST EXPENSE
|
|
60,453
|
|
|
39,562
|
|
|
24,966
|
|
|||
NET INTEREST INCOME
|
|
196,034
|
|
|
173,559
|
|
|
165,238
|
|
|||
Provision for loan losses
|
|
2,130
|
|
|
4,413
|
|
|
6,090
|
|
|||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
|
193,904
|
|
|
169,146
|
|
|
159,148
|
|
|||
NONINTEREST INCOME
|
|
|
|
|
|
|
||||||
Service charges on deposit accounts
|
|
11,205
|
|
|
10,584
|
|
|
10,740
|
|
|||
Commissions and fees
|
|
6,230
|
|
|
5,542
|
|
|
4,858
|
|
|||
Income on bank owned life insurance
|
|
2,740
|
|
|
3,256
|
|
|
2,354
|
|
|||
Gain (loss) on equity securities
|
|
496
|
|
|
(583
|
)
|
|
—
|
|
|||
Gains on sales of loans
|
|
1,660
|
|
|
1,329
|
|
|
1,836
|
|
|||
Gain on sales and calls of investment securities, net
|
|
—
|
|
|
—
|
|
|
2,524
|
|
|||
Swap income
|
|
3,231
|
|
|
1,992
|
|
|
982
|
|
|||
Other income
|
|
1,234
|
|
|
190
|
|
|
2,141
|
|
|||
TOTAL NONINTEREST INCOME
|
|
26,796
|
|
|
22,310
|
|
|
25,435
|
|
|||
NONINTEREST EXPENSE
|
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
|
77,287
|
|
|
68,595
|
|
|
61,166
|
|
|||
Net occupancy expense
|
|
11,029
|
|
|
10,155
|
|
|
10,243
|
|
|||
Furniture and equipment
|
|
8,681
|
|
|
8,297
|
|
|
8,269
|
|
|||
FDIC insurance expense
|
|
431
|
|
|
1,608
|
|
|
1,577
|
|
|||
Stationery, supplies and postage
|
|
1,599
|
|
|
1,625
|
|
|
1,797
|
|
|||
Marketing expense
|
|
1,945
|
|
|
1,437
|
|
|
1,675
|
|
|||
Data processing expense
|
|
4,913
|
|
|
3,609
|
|
|
1,993
|
|
|||
Telecommunications expense
|
|
1,943
|
|
|
1,769
|
|
|
1,607
|
|
|||
ATM and debit card expense
|
|
2,377
|
|
|
2,195
|
|
|
2,051
|
|
|||
Core deposit intangible amortization
|
|
1,182
|
|
|
594
|
|
|
654
|
|
|||
Other real estate and repossessed asset expense
|
|
256
|
|
|
158
|
|
|
181
|
|
|||
Long-term debt prepayment fee
|
|
—
|
|
|
—
|
|
|
2,828
|
|
|||
Merger related expenses
|
|
3,178
|
|
|
464
|
|
|
—
|
|
|||
Other expenses
|
|
11,935
|
|
|
10,661
|
|
|
10,493
|
|
|||
TOTAL NONINTEREST EXPENSE
|
|
126,756
|
|
|
111,167
|
|
|
104,534
|
|
|||
Income before provision for income taxes
|
|
93,944
|
|
|
80,289
|
|
|
80,049
|
|
|||
Provision for income taxes
|
|
23,272
|
|
|
16,888
|
|
|
27,469
|
|
|||
NET INCOME
|
|
$
|
70,672
|
|
|
$
|
63,401
|
|
|
$
|
52,580
|
|
PER SHARE OF COMMON STOCK:
|
|
|
|
|
|
|
||||||
Basic earnings
|
|
$
|
1.39
|
|
|
$
|
1.32
|
|
|
$
|
1.10
|
|
Diluted earnings
|
|
$
|
1.38
|
|
|
$
|
1.32
|
|
|
$
|
1.09
|
|
Cash dividends paid
|
|
$
|
0.49
|
|
|
$
|
0.45
|
|
|
$
|
0.40
|
|
|
|
For the Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
||||||||||
NET INCOME
|
|
$
|
70,672
|
|
|
$
|
63,401
|
|
|
$
|
52,580
|
|
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
|
|
|
|
|
|
|
||||||
Unrealized gains (losses) on securities available for sale
|
|
10,718
|
|
|
(3,507
|
)
|
|
(903
|
)
|
|||
Reclassification for securities gains included in net income
|
|
—
|
|
|
—
|
|
|
(1,640
|
)
|
|||
Unrealized (losses) gains on derivatives
|
|
(586
|
)
|
|
41
|
|
|
37
|
|
|||
Change in pension liability, net
|
|
(46
|
)
|
|
20
|
|
|
(16
|
)
|
|||
Other comprehensive income (loss)
|
|
10,086
|
|
|
(3,446
|
)
|
|
(2,522
|
)
|
|||
TOTAL COMPREHENSIVE INCOME
|
|
$
|
80,758
|
|
|
$
|
59,955
|
|
|
$
|
50,058
|
|
(in thousands)
|
|
Common Stock
|
|
Retained
Earnings
(Accumulated
Deficit)
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
|
||||||||
At January 1, 2017
|
|
$
|
510,861
|
|
|
$
|
38,590
|
|
|
$
|
593
|
|
|
$
|
550,044
|
|
Net income
|
|
—
|
|
|
52,580
|
|
|
—
|
|
|
52,580
|
|
||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
(2,522
|
)
|
|
(2,522
|
)
|
||||
Adjustment related to implementation of ASU 2018-02
|
|
—
|
|
|
420
|
|
|
(420
|
)
|
|
—
|
|
||||
Stock based compensation
|
|
2,325
|
|
|
—
|
|
|
—
|
|
|
2,325
|
|
||||
Retirement of restricted stock
|
|
(773
|
)
|
|
—
|
|
|
—
|
|
|
(773
|
)
|
||||
Exercise of stock options
|
|
321
|
|
|
—
|
|
|
—
|
|
|
321
|
|
||||
Cash dividends, common stock
|
|
—
|
|
|
(18,853
|
)
|
|
—
|
|
|
(18,853
|
)
|
||||
At December 31, 2017
|
|
$
|
512,734
|
|
|
$
|
72,737
|
|
|
$
|
(2,349
|
)
|
|
$
|
583,122
|
|
Cumulative adjustment for adoption of ASU 2016-01
|
|
—
|
|
|
2,043
|
|
|
(2,043
|
)
|
|
—
|
|
||||
January 1, 2018, as adjusted
|
|
512,734
|
|
|
74,780
|
|
|
(4,392
|
)
|
|
583,122
|
|
||||
Net income
|
|
—
|
|
|
63,401
|
|
|
—
|
|
|
63,401
|
|
||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
(3,446
|
)
|
|
(3,446
|
)
|
||||
Stock based compensation
|
|
2,425
|
|
|
—
|
|
|
—
|
|
|
2,425
|
|
||||
Retirement of restricted stock
|
|
(763
|
)
|
|
—
|
|
|
—
|
|
|
(763
|
)
|
||||
Exercise of stock options
|
|
307
|
|
|
—
|
|
|
—
|
|
|
307
|
|
||||
Cash dividends, common stock
|
|
—
|
|
|
(21,307
|
)
|
|
—
|
|
|
(21,307
|
)
|
||||
At December 31, 2018
|
|
$
|
514,703
|
|
|
$
|
116,874
|
|
|
$
|
(7,838
|
)
|
|
$
|
623,739
|
|
Cumulative adjustment for adoption of ASU 842
|
|
—
|
|
|
125
|
|
|
—
|
|
|
125
|
|
||||
January 1, 2019 as adjusted
|
|
$
|
514,703
|
|
|
$
|
116,999
|
|
|
$
|
(7,838
|
)
|
|
$
|
623,864
|
|
Net income
|
|
—
|
|
|
70,672
|
|
|
—
|
|
|
70,672
|
|
||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
10,086
|
|
|
10,086
|
|
||||
Stock based compensation
|
|
2,545
|
|
|
—
|
|
|
—
|
|
|
2,545
|
|
||||
Issuance of stock for Highlands acquisition
|
|
43,417
|
|
|
—
|
|
|
—
|
|
|
43,417
|
|
||||
Retirement of restricted stock
|
|
(715
|
)
|
|
—
|
|
|
—
|
|
|
(715
|
)
|
||||
Exercise of stock options
|
|
313
|
|
|
—
|
|
|
—
|
|
|
313
|
|
||||
Cash dividends, common stock
|
|
—
|
|
|
(24,919
|
)
|
|
—
|
|
|
(24,919
|
)
|
||||
At December 31, 2019
|
|
$
|
560,263
|
|
|
$
|
162,752
|
|
|
$
|
2,248
|
|
|
$
|
725,263
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
70,672
|
|
|
$
|
63,401
|
|
|
$
|
52,580
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Net amortization of premiums, discounts and deferred loan fees and costs
|
|
3,660
|
|
|
4,153
|
|
|
5,153
|
|
|||
Depreciation and amortization
|
|
1,645
|
|
|
5,555
|
|
|
4,536
|
|
|||
Amortization of intangible assets
|
|
1,182
|
|
|
594
|
|
|
654
|
|
|||
Amortization of operating lease right-of-use assets
|
|
2,592
|
|
|
—
|
|
|
—
|
|
|||
Provision for loan losses
|
|
2,130
|
|
|
4,413
|
|
|
6,090
|
|
|||
Stock based compensation
|
|
2,545
|
|
|
2,425
|
|
|
2,325
|
|
|||
Loans originated for sale
|
|
(57,605
|
)
|
|
(49,748
|
)
|
|
(60,783
|
)
|
|||
Proceeds from sales of loans held for sale
|
|
59,748
|
|
|
50,420
|
|
|
63,905
|
|
|||
Gains on sales of securities
|
|
—
|
|
|
—
|
|
|
(2,524
|
)
|
|||
Gains on sales of loans held for sale
|
|
(1,660
|
)
|
|
(1,329
|
)
|
|
(1,836
|
)
|
|||
Gains on proceeds from bank owned life insurance policies
|
|
—
|
|
|
(421
|
)
|
|
(109
|
)
|
|||
Change in market value of equity securities
|
|
(496
|
)
|
|
583
|
|
|
—
|
|
|||
Losses (gains) on other real estate and other repossessed assets
|
|
72
|
|
|
(338
|
)
|
|
(646
|
)
|
|||
Loss (gain) on sale of premises and equipment
|
|
497
|
|
|
561
|
|
|
(838
|
)
|
|||
Long-term debt prepayment penalty
|
|
—
|
|
|
—
|
|
|
2,828
|
|
|||
Deferred tax expense (benefit)
|
|
2,854
|
|
|
(13,571
|
)
|
|
16,904
|
|
|||
Excess tax benefits
|
|
189
|
|
|
318
|
|
|
587
|
|
|||
(Increase) decrease in other assets
|
|
(15,986
|
)
|
|
2,679
|
|
|
(25,065
|
)
|
|||
Increase in other liabilities
|
|
15,092
|
|
|
9,743
|
|
|
3,705
|
|
|||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
87,131
|
|
|
79,438
|
|
|
67,466
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Net cash acquired in acquisitions
|
|
13,454
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from repayments and maturities of available for sale securities
|
|
147,130
|
|
|
91,833
|
|
|
91,314
|
|
|||
Proceeds from repayments and maturities of held to maturity securities
|
|
31,457
|
|
|
26,083
|
|
|
43,218
|
|
|||
Proceeds from sales of equity securities
|
|
1,287
|
|
|
2,155
|
|
|
—
|
|
|||
Proceeds from sales of available for sale securities
|
|
—
|
|
|
—
|
|
|
4,500
|
|
|||
Purchase of available for sale securities
|
|
(211,503
|
)
|
|
(110,370
|
)
|
|
(140,258
|
)
|
|||
Purchase of held to maturity securities
|
|
(21,453
|
)
|
|
(40,753
|
)
|
|
(35,841
|
)
|
|||
Purchase of equity securities
|
|
(1,343
|
)
|
|
(570
|
)
|
|
(307
|
)
|
|||
Proceeds from redemptions of Federal Home Loan Bank stock
|
|
95,643
|
|
|
6,799
|
|
|
13,497
|
|
|||
Purchases of Federal Home Loan Bank stock
|
|
(103,080
|
)
|
|
(7,524
|
)
|
|
(10,974
|
)
|
|||
Purchase of bank owned life insurance
|
|
—
|
|
|
—
|
|
|
(33,000
|
)
|
|||
Death benefit proceeds from bank owned life insurance policy
|
|
121
|
|
|
755
|
|
|
312
|
|
|||
Net increase in loans
|
|
(252,441
|
)
|
|
(310,256
|
)
|
|
(289,914
|
)
|
|||
Proceeds from dispositions and sales of bank premises and equipment
|
|
1,827
|
|
|
697
|
|
|
1,638
|
|
|||
Purchases of premises and equipment
|
|
(5,936
|
)
|
|
(5,523
|
)
|
|
(3,972
|
)
|
|||
Proceeds from sales of other real estate and other repossessed assets
|
|
860
|
|
|
4,116
|
|
|
4,638
|
|
|||
NET CASH USED IN INVESTING ACTIVITIES
|
|
(303,977
|
)
|
|
(342,558
|
)
|
|
(355,149
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Net increase in deposits
|
|
264,279
|
|
|
252,329
|
|
|
276,537
|
|
|||
Increase in federal funds purchased and securities sold under agreements to repurchase
|
|
94,753
|
|
|
108,969
|
|
|
68,582
|
|
|||
Proceeds from other borrowings
|
|
46,260
|
|
|
60,003
|
|
|
306,184
|
|
|||
Repayments of other borrowings
|
|
(89,353
|
)
|
|
(70,752
|
)
|
|
(377,183
|
)
|
|||
Exercise of stock options
|
|
313
|
|
|
307
|
|
|
321
|
|
|||
Retirement of restricted stock
|
|
(715
|
)
|
|
(763
|
)
|
|
(773
|
)
|
|||
Dividends paid
|
|
(24,919
|
)
|
|
(21,307
|
)
|
|
(18,853
|
)
|
|||
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
|
290,618
|
|
|
328,786
|
|
|
254,815
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
73,772
|
|
|
65,666
|
|
|
(32,868
|
)
|
|||
Cash and cash equivalents, beginning of year
|
|
208,599
|
|
|
142,933
|
|
|
175,801
|
|
|||
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
$
|
282,371
|
|
|
$
|
208,599
|
|
|
$
|
142,933
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
||||||||||
Supplemental schedule of non-cash investing and financing activities:
|
|
|
|
|
|
|
||||||
Cash paid during the period for income taxes
|
|
$
|
15,944
|
|
|
$
|
18,614
|
|
|
$
|
27,423
|
|
Cash paid during the period for interest
|
|
59,949
|
|
|
38,679
|
|
|
24,571
|
|
|||
Transfer of loans into other repossessed assets and other real estate owned
|
|
665
|
|
|
3,765
|
|
|
3,763
|
|
|||
Initial recognition of operating lease right-of-use assets
|
|
18,651
|
|
|
|
|
|
|||||
Initial recognition of operating lease liabilities
|
|
20,203
|
|
|
|
|
|
|||||
Acquisitions:
|
|
|
|
|
|
|
||||||
Non-cash assets acquired:
|
|
|
|
|
|
|
||||||
Federal Home Loan Bank stock
|
|
1,767
|
|
|
—
|
|
|
—
|
|
|||
Investment securities
|
|
22,734
|
|
|
—
|
|
|
—
|
|
|||
Loans, including loans held for sale
|
|
426,118
|
|
|
—
|
|
|
—
|
|
|||
Goodwill and other intangible assets, net
|
|
23,125
|
|
|
—
|
|
|
—
|
|
|||
Other assets
|
|
9,304
|
|
|
—
|
|
|
—
|
|
|||
Total non-cash assets acquired
|
|
483,048
|
|
|
—
|
|
|
—
|
|
|||
Liabilities assumed:
|
|
|
|
|
|
|
||||||
Deposits
|
|
409,638
|
|
|
—
|
|
|
—
|
|
|||
Other borrowings
|
|
40,957
|
|
|
—
|
|
|
—
|
|
|||
Other liabilities
|
|
2,490
|
|
|
—
|
|
|
—
|
|
|||
Total liabilities assumed
|
|
453,085
|
|
|
—
|
|
|
—
|
|
|||
Common stock issued for acquisitions
|
|
$
|
43,417
|
|
|
—
|
|
|
—
|
|
•
|
The establishment of specific reserve amounts for impaired loans, including PCI loans.
|
•
|
The establishment of reserves for pools of homogeneous loans not subject to specific review, including impaired loans under $500,000, equipment finance loans, 1 - 4 family residential mortgages, and consumer loans.
|
Year Ended December 31, 2019
|
|
Income
(Numerator)
|
|
Shares
(Denominator)
|
|
Per Share
Amount
|
|||||
(in thousands, except per share amounts)
|
|
|
|||||||||
Basic earnings per share
|
|
|
|
|
|
|
|||||
Net income available to common shareholders
|
|
$
|
70,672
|
|
|
50,477
|
|
|
$
|
1.40
|
|
Less: earnings allocated to participating securities
|
|
(596
|
)
|
|
—
|
|
|
(0.01
|
)
|
||
Net income available to common shareholders
|
|
70,076
|
|
|
50,477
|
|
|
1.39
|
|
||
Effect of dilutive securities
|
|
|
|
|
|
|
|||||
Stock options and restricted stock
|
|
—
|
|
|
165
|
|
|
(0.01
|
)
|
||
Diluted earnings per share
|
|
|
|
|
|
|
|||||
Net income available to common shareholders plus assumed conversions
|
|
$
|
70,076
|
|
|
50,642
|
|
|
$
|
1.38
|
|
Year Ended December 31, 2018
|
|
Income
(Numerator)
|
|
Shares
(Denominator)
|
|
Per Share
Amount
|
|||||
(in thousands, except per share amounts)
|
|
|
|||||||||
Basic earnings per share
|
|
|
|
|
|
|
|||||
Net income available to common shareholders
|
|
$
|
63,401
|
|
|
47,578
|
|
|
$
|
1.33
|
|
Less: earnings allocated to participating securities
|
|
(582
|
)
|
|
—
|
|
|
(0.01
|
)
|
||
Net income available to common shareholders
|
|
62,819
|
|
|
47,578
|
|
|
1.32
|
|
||
Effect of dilutive securities
|
|
|
|
|
|
|
|||||
Stock options and restricted stock
|
|
—
|
|
|
188
|
|
|
—
|
|
||
Diluted earnings per share
|
|
|
|
|
|
|
|||||
Net income available to common shareholders plus assumed conversions
|
|
$
|
62,819
|
|
|
47,766
|
|
|
$
|
1.32
|
|
Year Ended December 31, 2017
|
|
Income
(Numerator)
|
|
Shares
(Denominator)
|
|
Per Share
Amount
|
|||||
(in thousands, except per share amounts)
|
|
|
|||||||||
Basic earnings per share
|
|
|
|
|
|
|
|||||
Net income available to common shareholders
|
|
$
|
52,580
|
|
|
47,438
|
|
|
$
|
1.11
|
|
Less: earnings allocated to participating securities
|
|
(480
|
)
|
|
—
|
|
|
(0.01
|
)
|
||
Net income available to common shareholders
|
|
52,100
|
|
|
47,438
|
|
|
1.10
|
|
||
Effect of dilutive securities
|
|
|
|
|
|
|
|||||
Stock options and restricted stock
|
|
—
|
|
|
236
|
|
|
(0.01
|
)
|
||
Diluted earnings per share
|
|
|
|
|
|
|
|||||
Net income available to common shareholders plus assumed conversions
|
|
$
|
52,100
|
|
|
47,674
|
|
|
$
|
1.09
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
(in thousands)
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||||||
AVAILABLE FOR SALE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and U.S. government agencies
|
|
$
|
135,361
|
|
|
$
|
722
|
|
|
$
|
(436
|
)
|
|
$
|
135,647
|
|
|
$
|
143,495
|
|
|
$
|
—
|
|
|
$
|
(2,568
|
)
|
|
$
|
140,927
|
|
Mortgage-backed securities, residential
|
|
500,245
|
|
|
3,185
|
|
|
(1,551
|
)
|
|
501,879
|
|
|
434,208
|
|
|
779
|
|
|
(8,843
|
)
|
|
426,144
|
|
||||||||
Mortgage-backed securities, multifamily
|
|
48,675
|
|
|
633
|
|
|
(123
|
)
|
|
49,185
|
|
|
21,087
|
|
|
67
|
|
|
(204
|
)
|
|
20,950
|
|
||||||||
Obligations of states and political subdivisions
|
|
58,979
|
|
|
1,077
|
|
|
(35
|
)
|
|
60,021
|
|
|
45,951
|
|
|
140
|
|
|
(586
|
)
|
|
45,505
|
|
||||||||
Debt securities
|
|
9,000
|
|
|
168
|
|
|
—
|
|
|
9,168
|
|
|
5,000
|
|
|
92
|
|
|
—
|
|
|
5,092
|
|
||||||||
Total
|
|
$
|
752,260
|
|
|
$
|
5,785
|
|
|
$
|
(2,145
|
)
|
|
$
|
755,900
|
|
|
$
|
649,741
|
|
|
$
|
1,078
|
|
|
$
|
(12,201
|
)
|
|
$
|
638,618
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
(in thousands)
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||||||
HELD TO MATURITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. government agencies
|
|
$
|
31,335
|
|
|
$
|
182
|
|
|
$
|
(8
|
)
|
|
$
|
31,509
|
|
|
$
|
33,025
|
|
|
$
|
—
|
|
|
$
|
(677
|
)
|
|
$
|
32,348
|
|
Mortgage-backed securities, residential
|
|
76,229
|
|
|
734
|
|
|
(176
|
)
|
|
76,787
|
|
|
75,859
|
|
|
169
|
|
|
(1,838
|
)
|
|
74,190
|
|
||||||||
Mortgage-backed securities, multifamily
|
|
1,750
|
|
|
4
|
|
|
(2
|
)
|
|
1,752
|
|
|
1,853
|
|
|
—
|
|
|
(35
|
)
|
|
1,818
|
|
||||||||
Obligations of states and political subdivisions
|
|
12,161
|
|
|
195
|
|
|
—
|
|
|
12,356
|
|
|
37,909
|
|
|
113
|
|
|
(328
|
)
|
|
37,694
|
|
||||||||
Debt securities
|
|
2,500
|
|
|
—
|
|
|
—
|
|
|
2,500
|
|
|
5,000
|
|
|
—
|
|
|
(118
|
)
|
|
4,882
|
|
||||||||
Total
|
|
$
|
123,975
|
|
|
$
|
1,115
|
|
|
$
|
(186
|
)
|
|
$
|
124,904
|
|
|
$
|
153,646
|
|
|
$
|
282
|
|
|
$
|
(2,996
|
)
|
|
$
|
150,932
|
|
|
|
Available for Sale
|
|
Held to Maturity
|
||||||||||||
(in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
29,733
|
|
|
$
|
29,786
|
|
|
$
|
7,321
|
|
|
$
|
7,328
|
|
Due after one year through five years
|
|
105,745
|
|
|
106,611
|
|
|
31,102
|
|
|
31,425
|
|
||||
Due after five years through ten years
|
|
52,534
|
|
|
53,385
|
|
|
6,815
|
|
|
6,852
|
|
||||
Due after ten years
|
|
15,328
|
|
|
15,054
|
|
|
758
|
|
|
760
|
|
||||
|
|
203,340
|
|
|
204,836
|
|
|
45,996
|
|
|
46,365
|
|
||||
Mortgage-backed securities
|
|
548,920
|
|
|
551,064
|
|
|
77,979
|
|
|
78,539
|
|
||||
Total securities
|
|
$
|
752,260
|
|
|
$
|
755,900
|
|
|
$
|
123,975
|
|
|
$
|
124,904
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Sale proceeds
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,500
|
|
Gross gains
|
|
—
|
|
|
—
|
|
|
2,539
|
|
|||
Gross losses
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
December 31, 2019
|
|
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
|
|
$
|
11,625
|
|
|
$
|
39
|
|
|
$
|
41,617
|
|
|
$
|
397
|
|
|
11
|
|
|
$
|
53,242
|
|
|
$
|
436
|
|
Mortgage-backed securities, residential
|
|
125,782
|
|
|
561
|
|
|
99,489
|
|
|
990
|
|
|
86
|
|
|
225,271
|
|
|
1,551
|
|
||||||
Mortgage-backed securities, multifamily
|
|
7,651
|
|
|
118
|
|
|
4,878
|
|
|
5
|
|
|
3
|
|
|
12,529
|
|
|
123
|
|
||||||
Obligations of states and political subdivisions
|
|
373
|
|
|
2
|
|
|
6,559
|
|
|
33
|
|
|
5
|
|
|
6,932
|
|
|
35
|
|
||||||
Total
|
|
$
|
145,431
|
|
|
$
|
720
|
|
|
$
|
152,543
|
|
|
$
|
1,425
|
|
|
105
|
|
|
$
|
297,974
|
|
|
$
|
2,145
|
|
HELD TO MATURITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
U.S. government agencies
|
|
$
|
3,195
|
|
|
$
|
6
|
|
|
$
|
5,102
|
|
|
$
|
2
|
|
|
2
|
|
|
$
|
8,297
|
|
|
$
|
8
|
|
Mortgage-backed securities, residential
|
|
12,462
|
|
|
46
|
|
|
10,592
|
|
|
130
|
|
|
16
|
|
|
23,054
|
|
|
176
|
|
||||||
Mortgage-backed securities, multifamily
|
|
—
|
|
|
—
|
|
|
998
|
|
|
2
|
|
|
1
|
|
|
998
|
|
|
2
|
|
||||||
Total
|
|
$
|
15,657
|
|
|
$
|
52
|
|
|
$
|
16,692
|
|
|
$
|
134
|
|
|
19
|
|
|
$
|
32,349
|
|
|
$
|
186
|
|
December 31, 2018
|
|
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
|
|
$
|
20,588
|
|
|
$
|
216
|
|
|
$
|
120,338
|
|
|
$
|
2,352
|
|
|
27
|
|
|
$
|
140,926
|
|
|
$
|
2,568
|
|
Mortgage-backed securities, residential
|
|
10,119
|
|
|
58
|
|
|
316,851
|
|
|
8,785
|
|
|
139
|
|
|
326,970
|
|
|
8,843
|
|
||||||
Mortgage-backed securities, multifamily
|
|
1,977
|
|
|
2
|
|
|
12,911
|
|
|
202
|
|
|
4
|
|
|
14,888
|
|
|
204
|
|
||||||
Obligations of states and political subdivisions
|
|
1,289
|
|
|
2
|
|
|
26,522
|
|
|
584
|
|
|
50
|
|
|
27,811
|
|
|
586
|
|
||||||
Total
|
|
$
|
33,973
|
|
|
$
|
278
|
|
|
$
|
476,622
|
|
|
$
|
11,923
|
|
|
220
|
|
|
$
|
510,595
|
|
|
$
|
12,201
|
|
HELD TO MATURITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
U.S. government agencies
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,348
|
|
|
$
|
677
|
|
|
6
|
|
|
$
|
32,348
|
|
|
$
|
677
|
|
Mortgage-backed securities, residential
|
|
8,325
|
|
|
59
|
|
|
53,761
|
|
|
1,779
|
|
|
36
|
|
|
62,086
|
|
|
1,838
|
|
||||||
Mortgage-backed securities, multifamily
|
|
—
|
|
|
—
|
|
|
1,818
|
|
|
35
|
|
|
2
|
|
|
1,818
|
|
|
35
|
|
||||||
Obligations of states and political subdivisions
|
|
1,764
|
|
|
8
|
|
|
15,580
|
|
|
320
|
|
|
27
|
|
|
17,344
|
|
|
328
|
|
||||||
Debt securities
|
|
3,882
|
|
|
118
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3,882
|
|
|
118
|
|
||||||
Total
|
|
$
|
13,971
|
|
|
$
|
185
|
|
|
$
|
103,507
|
|
|
$
|
2,811
|
|
|
72
|
|
|
$
|
117,478
|
|
|
$
|
2,996
|
|
•
|
The Company’s ability and intent to hold the securities, including an evaluation of the need to sell the security to meet certain liquidity measures, or whether the Company has sufficient levels of cash to hold the identified security in order to recover the entire amortized cost of the security;
|
•
|
The financial condition of the underlying issuer;
|
•
|
The credit ratings of the underlying issuer and if any changes in the credit rating have occurred;
|
•
|
The length of time the security’s fair value has been less than amortized cost; and
|
•
|
Adverse conditions related to the security or its issuer if the issuer has failed to make scheduled payments or other factors.
|
|
|
December 31,
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Commercial, secured by real estate
|
|
$
|
3,589,593
|
|
|
$
|
3,057,779
|
|
Commercial, industrial and other
|
|
431,934
|
|
|
336,735
|
|
||
Equipment finance
|
|
111,076
|
|
|
87,925
|
|
||
Real estate - residential mortgage
|
|
335,191
|
|
|
329,854
|
|
||
Real estate - construction
|
|
335,169
|
|
|
319,545
|
|
||
Home equity and consumer
|
|
337,977
|
|
|
328,609
|
|
||
Total loans
|
|
5,140,940
|
|
|
4,460,447
|
|
||
Less deferred fees
|
|
(3,117
|
)
|
|
(3,714
|
)
|
||
Loans, net of deferred fees
|
|
$
|
5,137,823
|
|
|
$
|
4,456,733
|
|
|
December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Acquisition
|
|
|
|
||||
Highlands
|
$
|
8,194
|
|
|
$
|
—
|
|
Pascack Community Bank
|
113
|
|
|
157
|
|
||
Harmony Bank
|
441
|
|
|
495
|
|
||
Total
|
$
|
8,748
|
|
|
$
|
652
|
|
|
|
Years Ended December 31,
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Balance, beginning of period
|
|
$
|
81
|
|
|
$
|
129
|
|
Acquisitions
|
|
1,431
|
|
|
—
|
|
||
Accretion
|
|
(1,236
|
)
|
|
(182
|
)
|
||
Net reclassification non-accretable difference
|
|
87
|
|
|
134
|
|
||
Balance, end of period
|
|
$
|
363
|
|
|
$
|
81
|
|
•
|
Commercial, secured by real estate - consists of commercial mortgage loans secured by owner occupied properties and non-owner occupied properties. The loans secured by owner occupied properties involve a variety of property types to conduct the borrower’s operations. The primary source of repayment for this type of loan is the cash flow from the business and is based upon the borrower’s financial health and the ability of the borrower and the business to repay. The loans secured by non-owner occupied properties involve investment properties for warehouse, retail, office space, etc., with a history of occupancy and cash flow. This commercial real estate category contains mortgage loans to the developers and owners of commercial real estate where the borrower intends to operate or sell the property at a profit and use the income stream or proceeds from the sale to repay the loan.
|
•
|
Commercial, industrial and other - are loans made to provide funds for equipment and general corporate needs. Repayment of a loan primarily uses the funds obtained from the operation of the borrower’s business. Commercial loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory.
|
•
|
Equipment finance - includes a small portfolio of equipment leases, which consists of leases primarily for essential equipment used by small to medium sized businesses.
|
•
|
Real estate - residential mortgage - contains permanent mortgage loans principally to consumers secured by residential real estate. Residential real estate loans are evaluated for the adequacy of repayment sources at the time of approval, based upon measures including credit scores, debt-to-income ratios, and collateral values. Loans may be either conforming or non-conforming.
|
•
|
Real estate - construction - construction loans, as defined, are intended to finance the construction of commercial properties and include loans for the acquisition and development of land. Construction loans represent a higher degree of risk than permanent real estate loans and may be affected by a variety of factors such as the borrower’s ability to control costs and adhere to time schedules and the risk that constructed units may not be absorbed by the market within the anticipated time frame or at the anticipated price. The loan commitment on these loans often includes an interest reserve to pay interest charges on the outstanding balance of the loan.
|
•
|
Home equity and consumer - includes primarily home equity loans and lines, installment loans, personal lines of credit and automobile loans. The home equity category consists mainly of loans and revolving lines of credit to consumers which are secured by residential real estate. These loans are typically secured with second mortgages on the homes, although many are secured with first mortgages. Other consumer loans include installment loans used by customers to purchase automobiles, boats and recreational vehicles.
|
|
|
At December 31,
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Commercial, secured by real estate
|
|
$
|
12,314
|
|
|
$
|
7,192
|
|
Commercial, industrial and other
|
|
1,539
|
|
|
1,019
|
|
||
Equipment finance
|
|
284
|
|
|
501
|
|
||
Real estate - residential mortgage
|
|
3,428
|
|
|
1,986
|
|
||
Real estate - construction
|
|
967
|
|
|
—
|
|
||
Home equity and consumer
|
|
2,606
|
|
|
1,432
|
|
||
Total non-accrual loans
|
|
21,138
|
|
|
12,130
|
|
||
Other real estate and other repossessed assets
|
|
563
|
|
|
830
|
|
||
Total non-performing assets
|
|
$
|
21,701
|
|
|
$
|
12,960
|
|
Troubled debt restructurings, still accruing
|
|
$
|
5,650
|
|
|
$
|
9,293
|
|
December 31, 2019
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater
Than
89 Days
|
|
Total
Past Due
|
|
Current
|
|
Total Loans
|
|
Recorded
Investment Greater
than 89 Days and
Still Accruing
|
||||||||||||||
(in thousands)
|
|
|
||||||||||||||||||||||||||
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
|
|
|
$
|
—
|
|
December 31, 2018
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater
Than
89 Days
|
|
Total
Past Due
|
|
Current
|
|
Total Loans
|
|
Recorded
Investment Greater
than 89 Days and
Still Accruing
|
||||||||||||||
(in thousands)
|
|
|
||||||||||||||||||||||||||
Commercial, secured by real estate
|
|
$
|
1,477
|
|
|
$
|
639
|
|
|
$
|
2,080
|
|
|
$
|
4,196
|
|
|
$
|
3,052,931
|
|
|
$
|
3,057,127
|
|
|
$
|
—
|
|
Commercial, industrial and other
|
|
173
|
|
|
243
|
|
|
750
|
|
|
1,166
|
|
|
335,569
|
|
|
336,735
|
|
|
—
|
|
|||||||
Equipment finance
|
|
533
|
|
|
13
|
|
|
501
|
|
|
1,047
|
|
|
86,878
|
|
|
87,925
|
|
|
—
|
|
|||||||
Real estate - residential mortgage
|
|
743
|
|
|
111
|
|
|
1,776
|
|
|
2,630
|
|
|
327,224
|
|
|
329,854
|
|
|
—
|
|
|||||||
Real estate - construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
319,545
|
|
|
319,545
|
|
|
—
|
|
|||||||
Home equity and consumer
|
|
1,917
|
|
|
216
|
|
|
850
|
|
|
2,983
|
|
|
325,626
|
|
|
328,609
|
|
|
—
|
|
|||||||
|
|
$
|
4,843
|
|
|
$
|
1,222
|
|
|
$
|
5,957
|
|
|
$
|
12,022
|
|
|
$
|
4,447,773
|
|
|
$
|
4,459,795
|
|
|
$
|
—
|
|
December 31, 2019
|
|
Recorded
Investment in
Impaired Loans
|
|
Contractual
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Interest
Income
Recognized
|
|
Average
Investment in
Impaired Loans
|
||||||||||
(in thousands)
|
|
|
||||||||||||||||||
Loans without related allowance:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, secured by real estate
|
|
$
|
12,478
|
|
|
$
|
12,630
|
|
|
$
|
—
|
|
|
$
|
164
|
|
|
$
|
10,386
|
|
Commercial, industrial and other
|
|
1,391
|
|
|
1,381
|
|
|
—
|
|
|
16
|
|
|
1,334
|
|
|||||
Equipment finance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate - residential mortgage
|
|
803
|
|
|
815
|
|
|
—
|
|
|
—
|
|
|
233
|
|
|||||
Real estate - construction
|
|
1,663
|
|
|
1,661
|
|
|
—
|
|
|
2
|
|
|
82
|
|
|||||
Home equity and consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Loans with related allowance:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, secured by real estate
|
|
3,470
|
|
|
3,706
|
|
|
228
|
|
|
190
|
|
|
4,554
|
|
|||||
Commercial, industrial and other
|
|
113
|
|
|
113
|
|
|
5
|
|
|
6
|
|
|
113
|
|
|||||
Equipment finance
|
|
23
|
|
|
23
|
|
|
10
|
|
|
—
|
|
|
21
|
|
|||||
Real estate - residential mortgage
|
|
1,512
|
|
|
1,682
|
|
|
104
|
|
|
19
|
|
|
926
|
|
|||||
Real estate - construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity and consumer
|
|
671
|
|
|
765
|
|
|
5
|
|
|
29
|
|
|
693
|
|
|||||
Total:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, secured by real estate
|
|
$
|
15,948
|
|
|
$
|
16,336
|
|
|
$
|
228
|
|
|
$
|
354
|
|
|
$
|
14,940
|
|
Commercial, industrial and other
|
|
1,504
|
|
|
1,494
|
|
|
5
|
|
|
22
|
|
|
1,447
|
|
|||||
Equipment finance
|
|
23
|
|
|
23
|
|
|
10
|
|
|
—
|
|
|
21
|
|
|||||
Real estate - residential mortgage
|
|
2,315
|
|
|
2,497
|
|
|
104
|
|
|
19
|
|
|
1,159
|
|
|||||
Real estate - construction
|
|
1,663
|
|
|
1,661
|
|
|
—
|
|
|
2
|
|
|
82
|
|
|||||
Home equity and consumer
|
|
671
|
|
|
765
|
|
|
5
|
|
|
29
|
|
|
693
|
|
|||||
|
|
$
|
22,124
|
|
|
$
|
22,776
|
|
|
$
|
352
|
|
|
$
|
426
|
|
|
$
|
18,342
|
|
December 31, 2018
|
|
Recorded
Investment in
Impaired Loans
|
|
Contractual
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Interest
Income
Recognized
|
|
Average
Investment in
Impaired Loans
|
||||||||||
(in thousands)
|
|
|
||||||||||||||||||
Loans without related allowance:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, secured by real estate
|
|
$
|
9,284
|
|
|
$
|
9,829
|
|
|
$
|
—
|
|
|
$
|
188
|
|
|
$
|
7,369
|
|
Commercial, industrial and other
|
|
1,151
|
|
|
1,449
|
|
|
—
|
|
|
19
|
|
|
1,834
|
|
|||||
Equipment finance
|
|
301
|
|
|
597
|
|
|
—
|
|
|
—
|
|
|
376
|
|
|||||
Real estate - residential mortgage
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
242
|
|
|||||
Real estate - construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
726
|
|
|||||
Home equity and consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Loans with related allowance:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, secured by real estate
|
|
7,270
|
|
|
7,597
|
|
|
307
|
|
|
317
|
|
|
7,594
|
|
|||||
Commercial, industrial and other
|
|
209
|
|
|
209
|
|
|
7
|
|
|
12
|
|
|
209
|
|
|||||
Equipment finance
|
|
30
|
|
|
30
|
|
|
14
|
|
|
—
|
|
|
19
|
|
|||||
Real estate - residential mortgage
|
|
730
|
|
|
884
|
|
|
4
|
|
|
20
|
|
|
745
|
|
|||||
Real estate - construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity and consumer
|
|
727
|
|
|
765
|
|
|
6
|
|
|
32
|
|
|
898
|
|
|||||
Total:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, secured by real estate
|
|
$
|
16,554
|
|
|
$
|
17,426
|
|
|
$
|
307
|
|
|
$
|
505
|
|
|
$
|
14,963
|
|
Commercial, industrial and other
|
|
1,360
|
|
|
1,658
|
|
|
7
|
|
|
31
|
|
|
2,043
|
|
|||||
Equipment finance
|
|
331
|
|
|
627
|
|
|
14
|
|
|
—
|
|
|
395
|
|
|||||
Real estate - residential mortgage
|
|
730
|
|
|
884
|
|
|
4
|
|
|
24
|
|
|
987
|
|
|||||
Real estate - construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
726
|
|
|||||
Home equity and consumer
|
|
727
|
|
|
765
|
|
|
6
|
|
|
32
|
|
|
898
|
|
|||||
|
|
$
|
19,702
|
|
|
$
|
21,360
|
|
|
$
|
338
|
|
|
$
|
592
|
|
|
$
|
20,012
|
|
December 31, 2017
|
|
Recorded
Investment in
Impaired Loans
|
|
Contractual
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Interest
Income
Recognized
|
|
Average
Investment in
Impaired Loans
|
||||||||||
(in thousands)
|
|
|
||||||||||||||||||
Loans without related allowance:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, secured by real estate
|
|
$
|
12,155
|
|
|
$
|
12,497
|
|
|
$
|
—
|
|
|
$
|
366
|
|
|
$
|
12,774
|
|
Commercial, industrial and other
|
|
618
|
|
|
618
|
|
|
—
|
|
|
25
|
|
|
618
|
|
|||||
Equipment finance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate - residential mortgage
|
|
963
|
|
|
980
|
|
|
—
|
|
|
15
|
|
|
996
|
|
|||||
Real estate - construction
|
|
1,471
|
|
|
1,471
|
|
|
—
|
|
|
—
|
|
|
1,471
|
|
|||||
Home equity and consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Loans with related allowance:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, secured by real estate
|
|
5,381
|
|
|
5,721
|
|
|
454
|
|
|
206
|
|
|
5,029
|
|
|||||
Commercial, industrial and other
|
|
164
|
|
|
164
|
|
|
9
|
|
|
14
|
|
|
283
|
|
|||||
Equipment finance
|
|
65
|
|
|
65
|
|
|
30
|
|
|
—
|
|
|
29
|
|
|||||
Real estate - residential mortgage
|
|
781
|
|
|
919
|
|
|
4
|
|
|
27
|
|
|
940
|
|
|||||
Real estate - construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity and consumer
|
|
993
|
|
|
1,026
|
|
|
8
|
|
|
52
|
|
|
1,090
|
|
|||||
Total:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, secured by real estate
|
|
$
|
17,536
|
|
|
$
|
18,218
|
|
|
$
|
454
|
|
|
$
|
572
|
|
|
$
|
17,803
|
|
Commercial, industrial and other
|
|
782
|
|
|
782
|
|
|
9
|
|
|
39
|
|
|
901
|
|
|||||
Equipment finance
|
|
65
|
|
|
65
|
|
|
30
|
|
|
—
|
|
|
29
|
|
|||||
Real estate - residential mortgage
|
|
1,744
|
|
|
1,899
|
|
|
4
|
|
|
42
|
|
|
1,936
|
|
|||||
Real estate - construction
|
|
1,471
|
|
|
1,471
|
|
|
—
|
|
|
—
|
|
|
1,471
|
|
|||||
Home equity and consumer
|
|
993
|
|
|
1,026
|
|
|
8
|
|
|
52
|
|
|
1,096
|
|
|||||
|
|
$
|
22,591
|
|
|
$
|
23,461
|
|
|
$
|
505
|
|
|
$
|
705
|
|
|
$
|
23,236
|
|
December 31, 2019
|
|
Commercial,
Secured by
Real Estate
|
|
Commercial,
Industrial
and Other
|
|
|
|
|
||||||||
(in thousands)
|
|
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
|
|
December 31, 2018
|
|
Commercial,
Secured by
Real Estate
|
|
Commercial,
Industrial
and Other
|
|
|
|
Total Commercial Loans
|
||||||||
(in thousands)
|
|
Real Estate -
Construction
|
|
|||||||||||||
RISK RATING
|
|
|
|
|
|
|
|
|
||||||||
1
|
|
$
|
—
|
|
|
$
|
1,119
|
|
|
$
|
—
|
|
|
$
|
1,119
|
|
2
|
|
—
|
|
|
18,462
|
|
|
—
|
|
|
18,462
|
|
||||
3
|
|
69,995
|
|
|
36,367
|
|
|
—
|
|
|
106,362
|
|
||||
4
|
|
933,577
|
|
|
91,145
|
|
|
17,375
|
|
|
1,042,097
|
|
||||
5
|
|
1,910,423
|
|
|
168,474
|
|
|
297,625
|
|
|
2,376,522
|
|
||||
5W - Watch
|
|
61,626
|
|
|
7,798
|
|
|
3,493
|
|
|
72,917
|
|
||||
6 - Other assets especially mentioned
|
|
38,844
|
|
|
2,033
|
|
|
—
|
|
|
40,877
|
|
||||
7 - Substandard
|
|
43,314
|
|
|
11,337
|
|
|
1,052
|
|
|
55,703
|
|
||||
8 - Doubtful
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
9 - Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
3,057,779
|
|
|
$
|
336,735
|
|
|
$
|
319,545
|
|
|
$
|
3,714,059
|
|
December 31, 2019
|
|
Commercial,
Secured by
Real Estate
|
|
Commercial,
Industrial
and Other
|
|
Equipment Finance
|
|
Real Estate -
Residential
Mortgage
|
|
Real Estate -
Construction
|
|
Home
Equity and
Consumer
|
|
Total
|
||||||||||||||
(in thousands)
|
|
|
||||||||||||||||||||||||||
Beginning balance
|
|
$
|
27,881
|
|
|
$
|
1,742
|
|
|
$
|
987
|
|
|
$
|
1,566
|
|
|
$
|
3,015
|
|
|
$
|
2,497
|
|
|
$
|
37,688
|
|
Charge-offs
|
|
(544
|
)
|
|
(645
|
)
|
|
(414
|
)
|
|
(50
|
)
|
|
—
|
|
|
(283
|
)
|
|
(1,936
|
)
|
|||||||
Recoveries
|
|
251
|
|
|
1,100
|
|
|
332
|
|
|
66
|
|
|
126
|
|
|
246
|
|
|
2,121
|
|
|||||||
Provision
|
|
1,362
|
|
|
1,092
|
|
|
52
|
|
|
143
|
|
|
(469
|
)
|
|
(50
|
)
|
|
2,130
|
|
|||||||
Ending balance
|
|
$
|
28,950
|
|
|
$
|
3,289
|
|
|
$
|
957
|
|
|
$
|
1,725
|
|
|
$
|
2,672
|
|
|
$
|
2,410
|
|
|
$
|
40,003
|
|
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
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
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
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
|
December 31, 2018
|
|
Commercial,
Secured by
Real Estate
|
|
Commercial,
Industrial
and Other
|
|
Equipment Finance
|
|
Real Estate -
Residential
Mortgage
|
|
Real Estate -
Construction
|
|
Home
Equity and
Consumer
|
|
Total
|
||||||||||||||
(in thousands)
|
|
|
||||||||||||||||||||||||||
Beginning balance
|
|
$
|
25,704
|
|
|
$
|
2,313
|
|
|
$
|
630
|
|
|
$
|
1,557
|
|
|
$
|
2,731
|
|
|
$
|
2,520
|
|
|
$
|
35,455
|
|
Charge-offs
|
|
(421
|
)
|
|
(1,452
|
)
|
|
(507
|
)
|
|
(131
|
)
|
|
(248
|
)
|
|
(588
|
)
|
|
(3,347
|
)
|
|||||||
Recoveries
|
|
468
|
|
|
317
|
|
|
23
|
|
|
10
|
|
|
17
|
|
|
332
|
|
|
1,167
|
|
|||||||
Provision
|
|
2,130
|
|
|
564
|
|
|
841
|
|
|
130
|
|
|
515
|
|
|
233
|
|
|
4,413
|
|
|||||||
Ending balance
|
|
$
|
27,881
|
|
|
$
|
1,742
|
|
|
$
|
987
|
|
|
$
|
1,566
|
|
|
$
|
3,015
|
|
|
$
|
2,497
|
|
|
$
|
37,688
|
|
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ending balance: Individually evaluated for impairment
|
|
$
|
307
|
|
|
$
|
7
|
|
|
$
|
14
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
338
|
|
Ending balance: Collectively evaluated for impairment
|
|
27,574
|
|
|
1,735
|
|
|
973
|
|
|
1,562
|
|
|
3,015
|
|
|
2,491
|
|
|
37,350
|
|
|||||||
Ending balance
|
|
$
|
27,881
|
|
|
$
|
1,742
|
|
|
$
|
987
|
|
|
$
|
1,566
|
|
|
$
|
3,015
|
|
|
$
|
2,497
|
|
|
$
|
37,688
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ending balance: Individually evaluated for impairment
|
|
$
|
16,554
|
|
|
$
|
1,360
|
|
|
$
|
331
|
|
|
$
|
730
|
|
|
$
|
—
|
|
|
$
|
727
|
|
|
$
|
19,702
|
|
Ending balance: Collectively evaluated for impairment
|
|
3,040,573
|
|
|
335,375
|
|
|
87,594
|
|
|
329,124
|
|
|
319,545
|
|
|
327,882
|
|
|
4,440,093
|
|
|||||||
Ending balance: Loans acquired with deteriorated credit quality
|
|
652
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
652
|
|
|||||||
Ending balance (1)
|
|
$
|
3,057,779
|
|
|
$
|
336,735
|
|
|
$
|
87,925
|
|
|
$
|
329,854
|
|
|
$
|
319,545
|
|
|
$
|
328,609
|
|
|
$
|
4,460,447
|
|
(1)
|
Excludes deferred fees
|
|
|
For the Year Ended December 31, 2019
|
|
For the Year Ended December 31, 2018
|
||||||||||||||||||
(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
|
||||||||||
|
|
|
||||||||||||||||||||
Commercial, secured by real estate
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
5
|
|
|
$
|
3,348
|
|
|
$
|
3,348
|
|
Commercial, industrial and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
950
|
|
|
950
|
|
||||
Equipment finance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
15
|
|
|
15
|
|
||||
Real estate - construction
|
|
1
|
|
|
694
|
|
|
694
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Home equity and consumer
|
|
2
|
|
|
83
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
3
|
|
|
$
|
777
|
|
|
$
|
777
|
|
|
7
|
|
|
$
|
4,313
|
|
|
$
|
4,313
|
|
|
|
For the Year Ended December 31, 2019
|
|
For the Year Ended December 31, 2018
|
||||||||||
(dollars in thousands)
|
|
Number of
Contracts
|
|
Recorded
Investment
|
|
Number of
Contracts
|
|
Recorded
Investment
|
||||||
|
|
|
||||||||||||
Commercial, secured by real estate
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
171
|
|
Home equity and consumer
|
|
2
|
|
|
83
|
|
|
—
|
|
|
—
|
|
||
|
|
2
|
|
|
$
|
83
|
|
|
1
|
|
|
$
|
171
|
|
(in thousands)
|
|
||
2020
|
$
|
36,290
|
|
2021
|
30,448
|
|
|
2022
|
23,029
|
|
|
2023
|
14,767
|
|
|
2024
|
5,616
|
|
|
Thereafter
|
926
|
|
|
|
$
|
111,076
|
|
|
|
Estimated
|
|
December 31,
|
||||||
|
|
Useful Lives
|
|
2019
|
|
2018
|
||||
|
|
|
|
(in thousands)
|
||||||
Land
|
|
Indefinite
|
|
$
|
10,356
|
|
|
$
|
10,471
|
|
Buildings and building improvements
|
|
10 to 50 years
|
|
42,481
|
|
|
47,006
|
|
||
Leasehold improvements
|
|
10 to 25 years
|
|
14,260
|
|
|
12,880
|
|
||
Furniture, fixtures and equipment
|
|
2 to 30 years
|
|
31,728
|
|
|
27,858
|
|
||
|
|
|
|
98,825
|
|
|
98,215
|
|
||
Less accumulated depreciation and amortization
|
|
|
|
51,217
|
|
|
49,040
|
|
||
|
|
|
|
$
|
47,608
|
|
|
$
|
49,175
|
|
(in thousands)
|
|
Year Ended December 31, 2019
|
||
Operating lease cost
|
|
$
|
3,293
|
|
Short-term lease cost
|
|
—
|
|
|
Variable lease cost
|
|
133
|
|
|
Sublease income
|
|
(122
|
)
|
|
Net lease cost
|
|
$
|
3,304
|
|
(dollars in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
|
|
|
|
|
|
|
|
|
||||||
Noninterest-bearing demand
|
|
$
|
1,124,121
|
|
|
21.23
|
%
|
|
$
|
950,218
|
|
|
20.56
|
%
|
Interest-bearing checking
|
|
1,797,504
|
|
|
33.96
|
%
|
|
1,711,507
|
|
|
37.04
|
%
|
||
Money market
|
|
1,003,149
|
|
|
18.95
|
%
|
|
715,620
|
|
|
15.49
|
%
|
||
Savings
|
|
498,201
|
|
|
9.41
|
%
|
|
486,287
|
|
|
10.52
|
%
|
||
Certificates of deposit
|
|
870,804
|
|
|
16.45
|
%
|
|
757,038
|
|
|
16.39
|
%
|
||
Total Deposits
|
|
$
|
5,293,779
|
|
|
100.00
|
%
|
|
$
|
4,620,670
|
|
|
100.00
|
%
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
||||||||||
Current tax provision
|
|
$
|
20,418
|
|
|
$
|
30,459
|
|
|
$
|
10,565
|
|
Deferred tax expense (benefit)
|
|
2,854
|
|
|
(13,571
|
)
|
|
16,904
|
|
|||
Total provision for income taxes
|
|
$
|
23,272
|
|
|
$
|
16,888
|
|
|
$
|
27,469
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
||||||||||
Federal income tax, at statutory rates
|
|
$
|
19,728
|
|
|
$
|
16,861
|
|
|
$
|
28,017
|
|
Increase (deduction) in taxes resulting from:
|
|
|
|
|
|
|
||||||
Tax-exempt income
|
|
(952
|
)
|
|
(1,096
|
)
|
|
(1,652
|
)
|
|||
Excise tax on real estate investment trust ("REIT") dividend
|
|
—
|
|
|
—
|
|
|
1,945
|
|
|||
Adjustment to net deferred tax asset for Tax Cuts and Jobs Act
|
|
—
|
|
|
—
|
|
|
(1,343
|
)
|
|||
State income tax, net of federal income tax effect
|
|
4,322
|
|
|
1,880
|
|
|
931
|
|
|||
Adjustment to net deferred tax asset for change in NJ tax law
|
|
—
|
|
|
(943
|
)
|
|
—
|
|
|||
Excess tax benefits from employee share-based payments
|
|
(189
|
)
|
|
(318
|
)
|
|
(587
|
)
|
|||
Other, net
|
|
363
|
|
|
504
|
|
|
158
|
|
|||
Provision for income taxes
|
|
$
|
23,272
|
|
|
$
|
16,888
|
|
|
$
|
27,469
|
|
|
|
December 31,
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
||||||
Allowance for loan losses
|
|
$
|
11,937
|
|
|
$
|
11,651
|
|
Stock based compensation plans
|
|
958
|
|
|
865
|
|
||
Purchase accounting fair market value adjustments
|
|
3,632
|
|
|
1,192
|
|
||
Non-accrued interest
|
|
381
|
|
|
256
|
|
||
Deferred compensation
|
|
2,444
|
|
|
2,142
|
|
||
Depreciation and amortization
|
|
—
|
|
|
630
|
|
||
Other-than-temporary impairment loss on investment securities
|
|
41
|
|
|
59
|
|
||
Federal net operating loss carryforward
|
|
875
|
|
|
—
|
|
||
Unrealized loss on pension plans
|
|
2
|
|
|
—
|
|
||
Unrealized losses on securities available for sale
|
|
—
|
|
|
3,162
|
|
||
Other, net
|
|
594
|
|
|
585
|
|
||
Gross deferred tax assets
|
|
20,864
|
|
|
20,542
|
|
||
Deferred tax liabilities:
|
|
|
|
|
||||
Core deposit intangible from acquired companies
|
|
1,235
|
|
|
516
|
|
||
Undistributed income from subsidiary not consolidated for tax return purposes (REIT)
|
|
678
|
|
|
149
|
|
||
Deferred loan costs
|
|
1,461
|
|
|
1,418
|
|
||
Depreciation and amortization
|
|
750
|
|
|
—
|
|
||
Prepaid expenses
|
|
443
|
|
|
459
|
|
||
Deferred gain on securities
|
|
162
|
|
|
166
|
|
||
Unfunded pension benefits
|
|
—
|
|
|
17
|
|
||
Loss on equity securities
|
|
65
|
|
|
36
|
|
||
Unrealized gain on investment securities
|
|
884
|
|
|
—
|
|
||
Unrealized gains on hedging derivative
|
|
80
|
|
|
322
|
|
||
Other
|
|
301
|
|
|
270
|
|
||
Gross deferred tax liabilities
|
|
6,059
|
|
|
3,353
|
|
||
Net deferred tax assets
|
|
$
|
14,805
|
|
|
$
|
17,189
|
|
|
|
December 31,
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Accrued plan cost included in other liabilities
|
|
$
|
646
|
|
|
$
|
604
|
|
Amount not recognized as component of net postretirement benefit cost
|
|
|
|
|
||||
Recognized in accumulated other comprehensive income
|
|
|
|
|
||||
Net actuarial loss (gain)
|
|
$
|
64
|
|
|
$
|
(29
|
)
|
Unrecognized prior service cost
|
|
—
|
|
|
—
|
|
||
Amounts not recognized as a component of net postretirement benefit
|
|
$
|
64
|
|
|
$
|
(29
|
)
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
|
|
|
|
||||||
Service cost
|
|
$
|
14
|
|
|
$
|
15
|
|
|
$
|
21
|
|
Interest cost
|
|
22
|
|
|
20
|
|
|
23
|
|
|||
Amortization of prior service cost
|
|
—
|
|
|
—
|
|
|
3
|
|
|||
Amortization of gain
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||
|
|
$
|
34
|
|
|
$
|
35
|
|
|
$
|
47
|
|
|
|
Number of
Shares
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Term
(in Years)
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding, beginning of year
|
|
67,488
|
|
|
$
|
8.28
|
|
|
2.86
|
|
$
|
440,483
|
|
Exercised
|
|
(35,782
|
)
|
|
8.75
|
|
|
|
|
|
|||
Outstanding, end of year
|
|
31,706
|
|
|
$
|
7.76
|
|
|
0.58
|
|
$
|
305,120
|
|
Options exercisable at year-end
|
|
31,706
|
|
|
$
|
7.76
|
|
|
0.58
|
|
$
|
305,120
|
|
|
|
Number of
Shares
|
|
Weighted
Average
Price
|
|||
Outstanding, beginning of year
|
|
11,701
|
|
|
$
|
20.18
|
|
Granted
|
|
13,052
|
|
|
15.96
|
|
|
Vested
|
|
(11,643
|
)
|
|
20.24
|
|
|
Outstanding, end of year
|
|
13,110
|
|
|
$
|
15.93
|
|
|
|
Number of
RSUs
|
|
Weighted
Average
Price
|
|||
Outstanding, beginning of year
|
|
299,347
|
|
|
$
|
16.60
|
|
Granted
|
|
149,559
|
|
|
16.54
|
|
|
Vested
|
|
(138,578
|
)
|
|
13.12
|
|
|
Forfeited
|
|
(9,699
|
)
|
|
18.02
|
|
|
Outstanding, end of year
|
|
300,629
|
|
|
$
|
18.13
|
|
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Deposit Related Fees and Charges
|
|
|
|
|
|
||||||
Debit card interchange income
|
$
|
5,719
|
|
|
$
|
5,150
|
|
|
$
|
4,474
|
|
Overdraft charges
|
4,052
|
|
|
3,938
|
|
|
4,656
|
|
|||
ATM service charges
|
826
|
|
|
830
|
|
|
808
|
|
|||
Demand deposit fees and charges
|
501
|
|
|
540
|
|
|
679
|
|
|||
Savings service charges
|
107
|
|
|
126
|
|
|
123
|
|
|||
Total
|
11,205
|
|
|
10,584
|
|
|
10,740
|
|
|||
Commissions and Fees
|
|
|
|
|
|
||||||
Loan fees
|
1,510
|
|
|
1,264
|
|
|
1,136
|
|
|||
Wire transfer charges
|
1,223
|
|
|
1,093
|
|
|
1,005
|
|
|||
Investment services income
|
1,651
|
|
|
1,314
|
|
|
1,045
|
|
|||
Merchant fees
|
813
|
|
|
784
|
|
|
718
|
|
|||
Commissions from sales of checks
|
407
|
|
|
434
|
|
|
457
|
|
|||
Safe deposit income
|
364
|
|
|
371
|
|
|
269
|
|
|||
Other income
|
250
|
|
|
264
|
|
|
202
|
|
|||
Total
|
6,218
|
|
|
5,524
|
|
|
4,832
|
|
|||
Gains on Sale of Loans
|
1,660
|
|
|
1,329
|
|
|
1,836
|
|
|||
Other Income
|
|
|
|
|
|
||||||
Gains on customer swap transactions
|
3,231
|
|
|
1,992
|
|
|
982
|
|
|||
Title insurance income
|
183
|
|
|
195
|
|
|
200
|
|
|||
Other income
|
1,463
|
|
|
295
|
|
|
518
|
|
|||
Total
|
4,877
|
|
|
2,482
|
|
|
1,700
|
|
|||
Revenue not from contracts with customers
|
2,836
|
|
|
2,391
|
|
|
6,327
|
|
|||
Total Noninterest Income
|
$
|
26,796
|
|
|
$
|
22,310
|
|
|
$
|
25,435
|
|
Timing of Revenue Recognition
|
|
|
|
|
|
||||||
Products and services transferred at a point in time
|
$
|
23,885
|
|
|
$
|
19,844
|
|
|
$
|
19,040
|
|
Products and services transferred over time
|
75
|
|
|
75
|
|
|
68
|
|
|||
Revenue not from contracts with customers
|
2,836
|
|
|
2,391
|
|
|
6,327
|
|
|||
Total Noninterest Income
|
$
|
26,796
|
|
|
$
|
22,310
|
|
|
$
|
25,435
|
|
|
|
Year Ended December 31, 2019
|
||||||||||
(in thousands)
|
|
Before
Tax Amount
|
|
Tax Benefit
(Expense)
|
|
Net of
Tax Amount
|
||||||
|
|
|
|
|
|
|
||||||
Unrealized holding gains on securities available for sale arising during the period
|
|
$
|
14,763
|
|
|
$
|
(4,045
|
)
|
|
$
|
10,718
|
|
Unrealized losses on derivatives
|
|
(828
|
)
|
|
242
|
|
|
(586
|
)
|
|||
Change in pension liability, net
|
|
(64
|
)
|
|
18
|
|
|
(46
|
)
|
|||
Other comprehensive income
|
|
$
|
13,871
|
|
|
$
|
(3,785
|
)
|
|
$
|
10,086
|
|
|
|
Year Ended December 31, 2018
|
||||||||||
(in thousands)
|
|
Before
Tax Amount
|
|
Tax Benefit
(Expense)
|
|
Net of
Tax Amount
|
||||||
|
|
|
|
|
|
|
||||||
Unrealized holding gains on securities available for sale arising during the period
|
|
$
|
(4,241
|
)
|
|
$
|
734
|
|
|
$
|
(3,507
|
)
|
Unrealized gains on derivatives
|
|
9
|
|
|
32
|
|
|
41
|
|
|||
Change in pension liability, net
|
|
29
|
|
|
(9
|
)
|
|
20
|
|
|||
Other comprehensive loss
|
|
$
|
(4,203
|
)
|
|
$
|
757
|
|
|
$
|
(3,446
|
)
|
|
|
Year Ended December 31, 2017
|
||||||||||
(in thousands)
|
|
Before
Tax Amount
|
|
Tax Benefit
(Expense)
|
|
Net of
Tax Amount
|
||||||
Unrealized losses on securities available for sale
|
|
|
|
|
|
|
||||||
Unrealized holding losses arising during period
|
|
$
|
(1,406
|
)
|
|
$
|
503
|
|
|
$
|
(903
|
)
|
Reclassification adjustment for securities gains included in net income
|
|
(2,524
|
)
|
|
884
|
|
|
(1,640
|
)
|
|||
Net unrealized losses on available for sale securities
|
|
(3,930
|
)
|
|
1,387
|
|
|
(2,543
|
)
|
|||
Unrealized gains on derivatives
|
|
57
|
|
|
(20
|
)
|
|
37
|
|
|||
Change in pension liability, net
|
|
(27
|
)
|
|
11
|
|
|
(16
|
)
|
|||
Other comprehensive loss
|
|
$
|
(3,900
|
)
|
|
$
|
1,378
|
|
|
$
|
(2,522
|
)
|
(in thousands, net of tax)
|
|
Unrealized
Gains (Losses) on
Available-
for-Sale
Securities
|
|
Unrealized
Gains
(Losses) on Derivatives
|
|
Pension
Items
|
|
Total
|
||||||||
|
|
|
||||||||||||||
Balance at of January 1, 2017
|
|
$
|
(117
|
)
|
|
$
|
672
|
|
|
$
|
38
|
|
|
$
|
593
|
|
Other comprehensive income (loss) before classifications
|
|
(903
|
)
|
|
37
|
|
|
(16
|
)
|
|
(882
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
|
(1,640
|
)
|
|
—
|
|
|
—
|
|
|
(1,640
|
)
|
||||
Net current period other comprehensive income (loss)
|
|
(2,543
|
)
|
|
37
|
|
|
(16
|
)
|
|
(2,522
|
)
|
||||
Adjustment for implementation of ASU 2018-02
|
|
(572
|
)
|
|
153
|
|
|
(1
|
)
|
|
(420
|
)
|
||||
Balance at December 31, 2017
|
|
$
|
(3,232
|
)
|
|
$
|
862
|
|
|
$
|
21
|
|
|
$
|
(2,349
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Adjustment for implementation of ASU 2016-01
|
|
(2,043
|
)
|
|
—
|
|
|
—
|
|
|
(2,043
|
)
|
||||
Adjusted balance as of January 1, 2018
|
|
(5,275
|
)
|
|
862
|
|
|
21
|
|
|
(4,392
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net current period other comprehensive income (loss)
|
|
(3,507
|
)
|
|
41
|
|
|
20
|
|
|
(3,446
|
)
|
||||
Balance at December 31, 2018
|
|
$
|
(8,782
|
)
|
|
$
|
903
|
|
|
$
|
41
|
|
|
$
|
(7,838
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Net current period other comprehensive income (loss)
|
|
10,718
|
|
|
(586
|
)
|
|
(46
|
)
|
|
10,086
|
|
||||
Balance at December 31, 2019
|
|
$
|
1,936
|
|
|
$
|
317
|
|
|
$
|
(5
|
)
|
|
$
|
2,248
|
|
December 31, 2019
|
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total Fair
Value
|
||||||||
(in thousands)
|
|
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Investment securities, available for sale
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and government agencies
|
|
$
|
12,580
|
|
|
$
|
123,067
|
|
|
$
|
—
|
|
|
$
|
135,647
|
|
Mortgage-backed securities
|
|
—
|
|
|
551,064
|
|
|
—
|
|
|
551,064
|
|
||||
Obligations of states and political subdivisions
|
|
—
|
|
|
60,021
|
|
|
—
|
|
|
60,021
|
|
||||
Corporate debt securities
|
|
—
|
|
|
9,168
|
|
|
—
|
|
|
9,168
|
|
||||
Total securities available for sale
|
|
12,580
|
|
|
743,320
|
|
|
—
|
|
|
755,900
|
|
||||
Equity securities, at fair value
|
|
1,735
|
|
|
14,738
|
|
|
—
|
|
|
16,473
|
|
||||
Derivative assets
|
|
—
|
|
|
27,123
|
|
|
—
|
|
|
27,123
|
|
||||
Total Assets
|
|
$
|
14,315
|
|
|
$
|
785,181
|
|
|
$
|
—
|
|
|
$
|
799,496
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
|
$
|
—
|
|
|
$
|
26,852
|
|
|
$
|
—
|
|
|
$
|
26,852
|
|
Total Liabilities
|
|
$
|
—
|
|
|
$
|
26,852
|
|
|
$
|
—
|
|
|
$
|
26,852
|
|
December 31, 2018
|
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total Fair
Value
|
||||||||
(in thousands)
|
|
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Investment securities, available for sale
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and government agencies
|
|
$
|
4,920
|
|
|
$
|
136,007
|
|
|
$
|
—
|
|
|
$
|
140,927
|
|
Mortgage-backed securities
|
|
—
|
|
|
447,094
|
|
|
—
|
|
|
447,094
|
|
||||
Obligations of states and political subdivisions
|
|
—
|
|
|
45,505
|
|
|
—
|
|
|
45,505
|
|
||||
Corporate debt securities
|
|
—
|
|
|
5,092
|
|
|
—
|
|
|
5,092
|
|
||||
Total securities available for sale
|
|
4,920
|
|
|
633,698
|
|
|
—
|
|
|
638,618
|
|
||||
Equity securities, at fair value
|
|
2,731
|
|
|
13,190
|
|
|
—
|
|
|
15,921
|
|
||||
Derivative assets
|
|
—
|
|
|
12,135
|
|
|
—
|
|
|
12,135
|
|
||||
Total Assets
|
|
$
|
7,651
|
|
|
$
|
659,023
|
|
|
$
|
—
|
|
|
$
|
666,674
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
|
$
|
—
|
|
|
$
|
11,036
|
|
|
$
|
—
|
|
|
$
|
11,036
|
|
Total Liabilities
|
|
$
|
—
|
|
|
$
|
11,036
|
|
|
$
|
—
|
|
|
$
|
11,036
|
|
December 31, 2019
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Total Fair Value
|
||||||||
(in thousands)
|
|
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,789
|
|
|
$
|
5,789
|
|
Loans held for sale
|
|
—
|
|
|
1,743
|
|
|
—
|
|
|
1,743
|
|
||||
Other real estate owned and other repossessed assets
|
|
—
|
|
|
—
|
|
|
563
|
|
|
563
|
|
December 31, 2018
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Total Fair Value
|
||||||||
(in thousands)
|
|
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,966
|
|
|
$
|
8,966
|
|
Loans held for sale
|
|
—
|
|
|
1,113
|
|
|
—
|
|
|
1,113
|
|
||||
Other real estate owned and other repossessed assets
|
|
—
|
|
|
—
|
|
|
830
|
|
|
830
|
|
December 31, 2019
|
|
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
|
|
$
|
123,975
|
|
|
$
|
124,904
|
|
|
$
|
—
|
|
|
$
|
121,503
|
|
|
$
|
3,401
|
|
Federal Home Loan and other membership bank stock
|
|
22,505
|
|
|
22,505
|
|
|
—
|
|
|
22,505
|
|
|
—
|
|
|||||
Loans, net
|
|
5,097,820
|
|
|
5,194,065
|
|
|
—
|
|
|
—
|
|
|
5,194,065
|
|
|||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Certificates of deposit
|
|
870,804
|
|
|
871,418
|
|
|
—
|
|
|
871,418
|
|
|
—
|
|
|||||
Other borrowings
|
|
165,816
|
|
|
166,505
|
|
|
—
|
|
|
166,505
|
|
|
—
|
|
|||||
Subordinated debentures
|
|
118,220
|
|
|
117,992
|
|
|
—
|
|
|
—
|
|
|
117,992
|
|
December 31, 2018
|
|
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
|
|
$
|
153,646
|
|
|
$
|
150,932
|
|
|
$
|
—
|
|
|
$
|
143,913
|
|
|
$
|
7,019
|
|
Federal Home Loan and other membership bank stock
|
|
13,301
|
|
|
13,301
|
|
|
—
|
|
|
13,301
|
|
|
—
|
|
|||||
Loans, net
|
|
4,419,045
|
|
|
4,341,477
|
|
|
—
|
|
|
—
|
|
|
4,341,477
|
|
|||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Certificates of deposit
|
|
757,038
|
|
|
750,801
|
|
|
—
|
|
|
750,801
|
|
|
—
|
|
|||||
Other borrowings
|
|
181,118
|
|
|
176,921
|
|
|
—
|
|
|
176,921
|
|
|
—
|
|
|||||
Subordinated debentures
|
|
105,027
|
|
|
102,497
|
|
|
—
|
|
|
—
|
|
|
102,497
|
|
December 31, 2019
|
|
Notional Amount
|
|
Average
Maturity (Years)
|
|
Weighted Average
Rate Fixed
|
|
Weighted Average
Variable Rate
|
|
Fair Value
|
|||||
Classified in Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Third party interest rate swaps
|
|
$
|
85,796
|
|
|
9.0
|
|
3.51
|
%
|
|
1 Mo. LIBOR + 1.95
|
|
$
|
947
|
|
Customer interest rate swaps
|
|
473,273
|
|
|
9.9
|
|
4.32
|
%
|
|
1 Mo. LIBOR + 1.93
|
|
25,905
|
|
||
Interest rate swap (cash flow hedge)
|
|
30,000
|
|
|
1.5
|
|
1.10
|
%
|
|
3 Mo. LIBOR
|
|
271
|
|
||
Classified in Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|||||
Customer interest rate swaps
|
|
$
|
85,796
|
|
|
9.0
|
|
3.51
|
%
|
|
1 Mo. LIBOR + 1.95
|
|
$
|
(947
|
)
|
Third party interest rate swaps
|
|
473,273
|
|
|
9.9
|
|
4.32
|
%
|
|
1 Mo. LIBOR + 1.93
|
|
(25,905
|
)
|
December 31, 2018
|
|
Notional Amount
|
|
Average
Maturity (Years)
|
|
Weighted Average
Rate Fixed
|
|
Weighted Average
Variable Rate
|
|
Fair Value
|
|||||
Classified in Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
3rd Party interest rate swaps
|
|
$
|
153,909
|
|
|
8.3
|
|
4.10
|
%
|
|
1 Mo. LIBOR + 2.13
|
|
$
|
5,329
|
|
Customer interest rate swaps
|
|
164,427
|
|
|
12.0
|
|
5.04
|
%
|
|
1 Mo. LIBOR + 2.05
|
|
5,707
|
|
||
Interest rate swap (cash flow hedge)
|
|
30,000
|
|
|
2.5
|
|
1.10
|
%
|
|
3 Mo. LIBOR
|
|
1,099
|
|
||
Classified in Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|||||
Customer interest rate swaps
|
|
$
|
153,909
|
|
|
8.3
|
|
4.10
|
%
|
|
1 Mo. LIBOR + 2.13
|
|
$
|
(5,329
|
)
|
3rd party interest rate swaps
|
|
164,427
|
|
|
12.0
|
|
5.04
|
%
|
|
1 Mo. LIBOR + 2.05
|
|
(5,707
|
)
|
(dollars in thousands)
|
|
Actual
|
|
For Capital
Adequacy Purposes with Capital Conservation Buffer
|
|
To Be Well Capitalized
Under Prompt Corrective
Action Provisions
|
||||||||||||||||||
December 31, 2019
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||||||
|
|
|
||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Company
|
|
$
|
721,741
|
|
|
13.40
|
%
|
|
>
|
|
$
|
565,504
|
|
|
> 10.50%
|
|
|
|
|
N/A
|
|
|
N/A
|
|
Lakeland
|
|
681,689
|
|
|
12.67
|
%
|
|
|
|
564,981
|
|
|
10.50
|
%
|
|
>
|
|
$
|
538,077
|
|
|
> 10.00%
|
||
Tier 1 capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Company
|
|
$
|
593,539
|
|
|
11.02
|
%
|
|
>
|
|
$
|
457,789
|
|
|
> 8.50%
|
|
|
|
|
N/A
|
|
|
N/A
|
|
Lakeland
|
|
639,908
|
|
|
11.89
|
%
|
|
|
|
457,365
|
|
|
8.50
|
%
|
|
>
|
|
$
|
430,462
|
|
|
> 8.00%
|
||
Common equity Tier 1 capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Company
|
|
$
|
563,539
|
|
|
10.46
|
%
|
|
>
|
|
$
|
377,003
|
|
|
> 7.00%
|
|
|
|
|
N/A
|
|
|
N/A
|
|
Lakeland
|
|
639,908
|
|
|
11.89
|
%
|
|
|
|
376,654
|
|
|
7.00
|
%
|
|
>
|
|
$
|
349,750
|
|
|
> 6.50%
|
||
Tier 1 capital (to average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Company
|
|
$
|
593,539
|
|
|
9.41
|
%
|
|
>
|
|
$
|
252,234
|
|
|
> 4.00%
|
|
|
|
|
N/A
|
|
|
N/A
|
|
Lakeland
|
|
639,908
|
|
|
10.16
|
%
|
|
|
|
252,039
|
|
|
4.00
|
%
|
|
>
|
|
$
|
315,048
|
|
|
> 5.00%
|
(dollars in thousands)
|
|
Actual
|
|
For Capital
Adequacy Purposes with Capital Conservation Buffer
|
|
To Be Well Capitalized Under
Prompt Corrective Action
Provisions
|
||||||||||||||||||
December 31, 2018
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||||||
|
|
|
||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Company
|
|
$
|
637,377
|
|
|
13.71
|
%
|
|
>
|
|
$
|
458,952
|
|
|
> 9.875%
|
|
|
|
|
N/A
|
|
|
N/A
|
|
Lakeland
|
|
605,560
|
|
|
13.06
|
%
|
|
|
|
457,912
|
|
|
9.875
|
%
|
|
>
|
|
$
|
463,708
|
|
|
> 10.00%
|
||
Tier 1 capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Company
|
|
$
|
523,577
|
|
|
11.27
|
%
|
|
>
|
|
$
|
366,000
|
|
|
> 7.875%
|
|
|
|
|
N/A
|
|
|
N/A
|
|
Lakeland
|
|
565,549
|
|
|
12.20
|
%
|
|
|
|
365,170
|
|
|
7.875
|
%
|
|
>
|
|
$
|
370,967
|
|
|
> 8.00%
|
||
Common equity Tier 1 capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Company
|
|
$
|
493,577
|
|
|
10.62
|
%
|
|
>
|
|
$
|
296,285
|
|
|
> 6.375%
|
|
|
|
|
N/A
|
|
|
N/A
|
|
Lakeland
|
|
565,549
|
|
|
12.20
|
%
|
|
|
|
295,614
|
|
|
6.375
|
%
|
|
>
|
|
$
|
301,410
|
|
|
> 6.50%
|
||
Tier 1 capital (to average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Company
|
|
$
|
523,577
|
|
|
9.39
|
%
|
|
>
|
|
$
|
222,982
|
|
|
> 4.00%
|
|
|
|
|
N/A
|
|
|
N/A
|
|
Lakeland
|
|
565,549
|
|
|
10.17
|
%
|
|
|
|
222,539
|
|
|
4.00
|
%
|
|
>
|
|
$
|
278,173
|
|
|
> 5.00%
|
(in thousands)
|
|
|
||
2020
|
|
$
|
1,025
|
|
2021
|
|
868
|
|
|
2022
|
|
711
|
|
|
2023
|
|
554
|
|
|
2024
|
|
425
|
|
|
|
December 31,
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
ASSETS
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
29,981
|
|
|
$
|
23,285
|
|
Equity securities
|
|
1,735
|
|
|
2,743
|
|
||
Investment securities, held to maturity
|
|
1,000
|
|
|
1,000
|
|
||
Investment in subsidiaries
|
|
802,079
|
|
|
695,571
|
|
||
Other assets
|
|
9,828
|
|
|
7,182
|
|
||
TOTAL ASSETS
|
|
$
|
844,623
|
|
|
$
|
729,781
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Other liabilities
|
|
$
|
1,140
|
|
|
$
|
1,015
|
|
Subordinated debentures
|
|
118,220
|
|
|
105,027
|
|
||
Total stockholders’ equity
|
|
725,263
|
|
|
623,739
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
844,623
|
|
|
$
|
729,781
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
INCOME
|
|
|
|
|
|
|
||||||
Dividends from subsidiaries
|
|
$
|
36,905
|
|
|
$
|
30,589
|
|
|
$
|
26,665
|
|
Other income (loss)
|
|
408
|
|
|
(125
|
)
|
|
2,750
|
|
|||
TOTAL INCOME
|
|
37,313
|
|
|
30,464
|
|
|
29,415
|
|
|||
EXPENSE
|
|
|
|
|
|
|
||||||
Interest on subordinated debentures
|
|
5,983
|
|
|
5,141
|
|
|
5,091
|
|
|||
Noninterest expenses
|
|
464
|
|
|
506
|
|
|
377
|
|
|||
TOTAL EXPENSE
|
|
6,447
|
|
|
5,647
|
|
|
5,468
|
|
|||
Income before benefit for income taxes
|
|
30,866
|
|
|
24,817
|
|
|
23,947
|
|
|||
Income taxes benefit
|
|
(1,646
|
)
|
|
(1,130
|
)
|
|
(2,018
|
)
|
|||
Income before equity in undistributed income of subsidiaries
|
|
32,512
|
|
|
25,947
|
|
|
25,965
|
|
|||
Equity in undistributed income of subsidiaries
|
|
38,160
|
|
|
37,454
|
|
|
26,615
|
|
|||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
|
|
$
|
70,672
|
|
|
$
|
63,401
|
|
|
$
|
52,580
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
70,672
|
|
|
$
|
63,401
|
|
|
$
|
52,580
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
||||||
Gain on securities
|
|
—
|
|
|
—
|
|
|
(2,539
|
)
|
|||
Amortization of subordinated debt costs
|
|
36
|
|
|
125
|
|
|
118
|
|
|||
Change in market value of equity securities
|
|
(197
|
)
|
|
338
|
|
|
—
|
|
|||
Excess tax benefits
|
|
189
|
|
|
318
|
|
|
587
|
|
|||
Increase in other assets
|
|
(1,873
|
)
|
|
(1,446
|
)
|
|
(1,927
|
)
|
|||
Increase (decrease) in other liabilities
|
|
121
|
|
|
(6
|
)
|
|
(17
|
)
|
|||
Equity in undistributed income of subsidiaries
|
|
(38,160
|
)
|
|
(37,454
|
)
|
|
(26,615
|
)
|
|||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
30,788
|
|
|
25,276
|
|
|
22,187
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
Purchases of available for sale securities
|
|
—
|
|
|
—
|
|
|
(79
|
)
|
|||
Purchases of equity securities
|
|
(82
|
)
|
|
(78
|
)
|
|
—
|
|
|||
Proceeds from sale of available for sale securities
|
|
—
|
|
|
—
|
|
|
3,217
|
|
|||
Proceeds from sale of equity securities
|
|
1,287
|
|
|
2,155
|
|
|
—
|
|
|||
Net cash received from business acquisition
|
|
24
|
|
|
—
|
|
|
—
|
|
|||
NET CASH PROVIDED BY INVESTING ACTIVITIES
|
|
1,229
|
|
|
2,077
|
|
|
3,138
|
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
Cash dividends paid on common stock
|
|
(24,919
|
)
|
|
(21,307
|
)
|
|
(18,853
|
)
|
|||
Retirement of restricted stock
|
|
(715
|
)
|
|
(763
|
)
|
|
(773
|
)
|
|||
Exercise of stock options
|
|
313
|
|
|
307
|
|
|
321
|
|
|||
NET CASH USED IN FINANCING ACTIVITIES
|
|
(25,321
|
)
|
|
(21,763
|
)
|
|
(19,305
|
)
|
|||
Net increase in cash and cash equivalents
|
|
6,696
|
|
|
5,590
|
|
|
6,020
|
|
|||
Cash and cash equivalents, beginning of year
|
|
23,285
|
|
|
17,695
|
|
|
11,675
|
|
|||
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
$
|
29,981
|
|
|
$
|
23,285
|
|
|
$
|
17,695
|
|
•
|
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and the board of directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
Plan Category
|
|
(a)
Number Of
Securities To Be
Issued Upon
Exercise Of
Outstanding
Options, Warrants
and Rights
|
|
(b)
Weighted-Average
Exercise Price Of
Outstanding Options,
Warrants and Rights
|
|
(c)
Number Of Securities
Remaining Available
For Future Issuance
Under Equity
Compensation Plans
(Excluding Securities
Reflected In Column (a))
|
||||
Equity Compensation Plans Approved by Shareholders
|
|
342,681
|
|
|
$
|
7.84
|
|
|
1,829,259
|
|
Equity Compensation Plans Not Approved by Shareholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
TOTAL
|
|
342,681
|
|
|
$
|
7.84
|
|
|
1,829,259
|
|
3.1
|
|
|
|
3.2
|
|
|
|
4.1
|
|
|
|
4.2
|
|
|
|
4.3
|
|
|
|
10.1+
|
|
|
|
10.2+
|
|
|
|
10.3+
|
|
|
|
10.4+
|
|
|
|
10.5+
|
|
|
|
10.6+
|
|
|
|
10.7+
|
|
|
|
10.8+
|
10.9+
|
|
|
|
10.10+
|
|
|
|
10.11+
|
|
|
|
10.12+
|
|
|
|
10.13+
|
|
|
|
10.14+
|
|
|
|
10.15+
|
|
|
|
10.16+
|
|
|
|
10.17+
|
|
|
|
10.18+
|
|
|
|
10.19
|
|
|
|
10.20+
|
|
|
|
10.21+
|
|
|
|
10.22+
|
|
|
|
10.23+
|
|
|
|
21.1
|
|
|
|
23.1
|
|
|
|
24.1
|
|
|
|
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.
|
||
|
|
|
|
|
|||
Dated:
|
March 2, 2020
|
|
|
|
By:
|
|
/s/ Thomas J. Shara
|
|
|
|
|
|
|
|
Thomas J. Shara
|
|
|
|
|
|
|
|
President and Chief Executive Officer
|
Signature
|
|
Capacity
|
|
Date
|
|
|
|
||
/s/ Bruce D. Bohuny*
|
|
Director
|
|
March 2, 2020
|
Bruce D. Bohuny
|
|
|
|
|
|
|
|
||
/s/ Mary Ann Deacon*
|
|
Chairman
|
|
March 2, 2020
|
Mary Ann Deacon
|
|
|
|
|
|
|
|
||
/s/ Brian M. Flynn*
|
|
Director
|
|
March 2, 2020
|
Brian M. Flynn
|
|
|
|
|
|
|
|
||
/s/ Mark J. Fredericks*
|
|
Director
|
|
March 2, 2020
|
Mark J. Fredericks
|
|
|
|
|
|
|
|
||
/s/ Brian Gragnolati*
|
|
Director
|
|
March 2, 2020
|
Brian Gragnolati
|
|
|
|
|
|
|
|
||
/s/ James E. Hanson II*
|
|
Director
|
|
March 2, 2020
|
James E. Hanson II
|
|
|
|
|
|
|
|
||
/s/ Janeth C. Hendershot*
|
|
Director
|
|
March 2, 2020
|
Janeth C. Hendershot
|
|
|
|
|
|
|
|
||
/s/ Lawrence R. Inserra, Jr.*
|
|
Director
|
|
March 2, 2020
|
Lawrence R. Inserra, Jr.
|
|
|
|
|
|
|
|
||
/s/ Robert E. McCracken*
|
|
Director
|
|
March 2, 2020
|
Robert E. McCracken
|
|
|
|
|
|
|
|
||
/s/ Robert B. Nicholson, III*
|
|
Director
|
|
March 2, 2020
|
Robert B. Nicholson, III
|
|
|
|
|
Signature
|
|
Capacity
|
|
Date
|
|
|
|
||
/s/ Thomas J. Shara
|
|
Director, President and Chief Executive Officer (Principal Executive Officer)
|
|
March 2, 2020
|
Thomas J. Shara
|
|
|
||
|
|
|
|
|
/s/ Thomas Splaine
|
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
|
|
March 2, 2020
|
Thomas Splaine
|
|
|
|
|
*By:
|
|
/s/ Thomas J. Shara
|
|
|
|
March 2, 2020
|
|
|
Thomas J. Shara
Attorney-in-Fact
|
|
|
|
|
|
|
|
Name
|
|
Jurisdiction of Incorporation
|
|
|
|
Lakeland Bank
|
|
New Jersey chartered bank
|
|
|
|
Lakeland NJ Investment Corporation
|
|
New Jersey
|
(wholly owned subsidiary of Lakeland Bank)
|
|
|
|
|
|
Lakeland Investment Corporation
|
|
Delaware
|
(wholly owned subsidiary of Lakeland NJ Investment Corporation)
|
|
|
|
|
|
Lakeland Equity, Inc.
|
|
Delaware
|
(wholly owned subsidiary of Lakeland Investment Corporation)
|
|
|
|
|
|
Lakeland Preferred Equity, Inc.
|
|
New Jersey
|
(wholly owned subsidiary of Lakeland Equity, Inc.)
|
|
|
|
|
|
NBSC Holdings, Inc.
|
|
New Jersey
|
(wholly owned subsidiary of Lakeland Bank)
|
|
|
|
|
|
NBSC Properties, Inc.
|
|
New Jersey
|
(wholly owned subsidiary of Lakeland Bank)
|
|
|
|
|
|
Lakeland Bancorp Capital Trust II
|
|
Delaware
|
|
|
|
Lakeland Bancorp Capital Trust IV
|
|
Delaware
|
|
|
|
Lakeland Title Group LLC
|
|
New Jersey
|
(50% owned by Lakeland Bank)
|
|
|
|
|
|
Sullivan Financial Services Inc.
|
|
New Jersey
|
(wholly owned subsidiary of Lakeland Bank)
|
|
|
|
|
|
Lakeland Financial Services Agency, Inc.
|
|
New Jersey
|
(wholly owned subsidiary of Lakeland Bank)
|
|
|
|
|
|
31 Sparta Avenue LLC
|
|
New Jersey
|
(wholly owned subsidiary of Lakeland Bank)
|
|
|
|
|
|
HSB Investment Co. Inc.
|
|
New Jersey
|
(wholly owned subsidiary of Lakeland Bank)
|
|
|
|
|
|
HSB Delaware Investment Co.
|
|
Delaware
|
(wholly owned subsidiary of HSB Investment Co. Inc.)
)
|
|
|
|
|
|
HSB REIT, Inc.
|
|
Delaware
|
(wholly owned subsidiary of HSB Delaware Investment Co.)
)
) |
|
Signatures
|
|
Title
|
|
|
|
/s/ Bruce D. Bohuny
|
|
Director
|
Bruce D. Bohuny
|
|
|
|
|
|
/s/ Mary Ann Deacon
|
|
Director
|
Mary Ann Deacon
|
|
|
|
|
|
/s/ Brian M. Flynn
|
|
Director
|
Brian M. Flynn
|
|
|
|
|
|
/s/ Mark J. Fredericks
|
|
Director
|
Mark J. Fredericks
|
|
|
|
|
|
/s/ Brian Gragnolati
|
|
Director
|
Brian Gragnolati
|
|
|
|
|
|
/s/ James E. Hanson II
|
|
Director
|
James E. Hanson
|
|
|
|
|
|
/s/ Janeth C. Hendershot
|
|
Director
|
Janeth C. Hendershot
|
|
|
|
|
|
/s/ Lawrence R. Inserra, Jr.
|
|
Director
|
Lawrence R. Inserra, Jr.
|
|
|
|
|
|
/s/ Thomas J. Marino
|
|
Director
|
Thomas J. Marino
|
|
|
|
|
|
/s/ Robert E. McCracken
|
|
Director
|
Robert E. McCracken
|
|
|
|
|
|
/s/ Robert B. Nicholson, III
|
|
Director
|
Robert B. Nicholson, III
|
|
|
|
|
|
/s/ Thomas J. Shara
|
|
Director, President and Chief Executive Officer (Principal Executive Officer)
|
Thomas J. Shara
|
|
|
|
|
|
/s/ Thomas F. Splaine, Jr.
|
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
|
Thomas F. Splaine, Jr.
|
|
|
1.
|
I have reviewed this annual report on Form 10-K of Lakeland Bancorp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Thomas J. Shara
|
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Thomas J. Shara
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President and Chief Executive Officer
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(Principal Executive Officer)
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1.
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I have reviewed this annual report on Form 10-K of Lakeland Bancorp, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Thomas F. Splaine, Jr.
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Thomas F. Splaine, Jr.
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Executive Vice President and Chief Financial Officer
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(Principal Financial Officer)
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(1)
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The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and consolidated results of operations of the Company for the periods presented.
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By:
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/s/ Thomas J. Shara
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Thomas J. Shara
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President and Chief Executive Officer
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(Principal Executive Officer)
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By:
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/s/ Thomas F. Splaine, Jr.
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Thomas F. Splaine, Jr.
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Executive Vice President and Chief Financial Officer
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(Principal Financial Officer)
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