☒ | ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 22-3412577 | |||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
Title of each class | Trading symbol | Name of each exchange in which registered | ||||||||||||
Common stock, $0.01 par value per share | OCFC | NASDAQ | ||||||||||||
Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock) | OCFCP | NASDAQ |
Large accelerated filer |
x
|
Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
PAGE | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. | ||||||||
Item 16. | ||||||||
Item 1. | Business |
At December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount |
Percent
of Total |
Amount |
Percent
of Total |
Amount |
Percent
of Total |
Amount |
Percent
of Total |
Amount |
Percent
of Total |
||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 4,636,529 | 59.43 | % | $ | 3,089,063 | 49.71 | % | $ | 2,764,024 | 49.46 | % | $ | 1,757,106 | 44.19 | % | $ | 1,668,872 | 43.72 | % | |||||||||||||||||||||||||||||||||||||||
Residential real estate | 2,354,983 | 30.19 | 2,321,157 | 37.35 | 2,044,523 | 36.58 | 1,749,166 | 43.99 | 1,704,405 | 44.66 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial
|
470,656 | 6.03 | 396,434 | 6.38 | 304,996 | 5.46 | 187,645 | 4.72 | 152,810 | 4.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
Consumer (1)
|
339,462 | 4.35 | 407,998 | 6.56 | 475,170 | 8.50 | 282,438 | 7.10 | 290,676 | 7.62 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total loans
|
7,801,630 | 100.00 | % | 6,214,652 | 100.00 | % | 5,588,713 | 100.00 | % | 3,976,355 | 100.00 | % | 3,816,763 | 100.00 | % | ||||||||||||||||||||||||||||||||||||||||||||
Deferred origination costs, net
|
9,486 | 9,880 | 7,086 | 5,380 | 3,414 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (60,735) | (16,852) | (16,577) | (15,721) | (15,183) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable, net | 7,750,381 | 6,207,680 | 5,579,222 | 3,966,014 | 3,804,994 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale
|
45,524 | — | — | 241 | 1,551 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans receivable, net | $ | 7,704,857 | $ | 6,207,680 | $ | 5,579,222 | $ | 3,965,773 | $ | 3,803,443 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total loans:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustable rate
|
$ | 2,991,321 | 38.34 | % | $ | 2,107,790 | 33.92 | % | $ | 1,974,387 | 35.33 | % | $ | 1,266,817 | 31.86 | % | $ | 1,192,998 | 31.26 | % | |||||||||||||||||||||||||||||||||||||||
Fixed rate
|
4,810,309 | 61.66 | 4,106,862 | 66.08 | 3,614,326 | 64.67 | 2,709,538 | 68.14 | 2,623,765 | 68.74 | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 7,801,630 | 100.00 | % | $ | 6,214,652 | 100.00 | % | $ | 5,588,713 | 100.00 | % | $ | 3,976,355 | 100.00 | % | $ | 3,816,763 | 100.00 | % |
At December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Commercial Real Estate |
Residential
Real Estate |
Commercial
and Industrial |
Consumer |
Total
Loans Receivable |
||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
One year or less | $ | 758,029 | $ | 95,731 | $ | 129,745 | $ | 3,345 | $ | 986,850 | ||||||||||||||||||||||||||||
After one year: | ||||||||||||||||||||||||||||||||||||||
More than one year to three years | 660,922 | 17,520 | 185,779 | 10,683 | 874,904 | |||||||||||||||||||||||||||||||||
More than three years to five years | 909,798 | 18,617 | 47,599 | 26,197 | 1,002,211 | |||||||||||||||||||||||||||||||||
More than five years to ten years | 1,928,968 | 111,632 | 74,291 | 95,350 | 2,210,241 | |||||||||||||||||||||||||||||||||
More than ten years to twenty years | 336,499 | 422,162 | 8,156 | 202,470 | 969,287 | |||||||||||||||||||||||||||||||||
More than twenty years | 42,313 | 1,689,321 | 25,086 | 1,417 | 1,758,137 | |||||||||||||||||||||||||||||||||
Total due after December 31, 2021 | 3,878,500 | 2,259,252 | 340,911 | 336,117 | 6,814,780 | |||||||||||||||||||||||||||||||||
Total amount due | $ | 4,636,529 | $ | 2,354,983 | $ | 470,656 | $ | 339,462 | 7,801,630 | |||||||||||||||||||||||||||||
Deferred origination costs, net | 9,486 | |||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (60,735) | |||||||||||||||||||||||||||||||||||||
Loans receivable, net | 7,750,381 | |||||||||||||||||||||||||||||||||||||
Less: Loans held-for-sale | 45,524 | |||||||||||||||||||||||||||||||||||||
Total loans receivable, net | $ | 7,704,857 |
Due After December 31, 2021 | ||||||||||||||||||||
Fixed | Adjustable | Total | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||
Commercial real estate | $ | 1,939,507 | $ | 1,938,993 | $ | 3,878,500 | ||||||||||||||
Residential real estate | 1,965,712 | 293,540 | 2,259,252 | |||||||||||||||||
Commercial and industrial | 228,160 | 112,751 | 340,911 | |||||||||||||||||
Consumer | 182,293 | 153,824 | 336,117 | |||||||||||||||||
Total loans receivable | $ | 4,315,672 | $ | 2,499,108 | $ | 6,814,780 |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Total loans: | ||||||||||||||||||||
Beginning balance | $ | 6,214,652 | $ | 5,588,713 | $ | 3,976,355 | ||||||||||||||
Loans originated: | ||||||||||||||||||||
Commercial real estate | 752,562 | 701,009 | 327,513 | |||||||||||||||||
Residential real estate | 832,917 | 579,101 | 395,387 | |||||||||||||||||
Commercial and industrial | 596,761 | 175,449 | 87,549 | |||||||||||||||||
Consumer | 47,195 | 50,787 | 68,489 | |||||||||||||||||
Total loans originated | 2,229,435 | 1,506,346 | 878,938 | |||||||||||||||||
Loans purchased | — | 101,674 | 199,580 | |||||||||||||||||
Net loans acquired in acquisition | 1,558,480 | 307,778 | 1,517,345 | |||||||||||||||||
Total | 10,002,567 | 7,504,511 | 6,572,218 | |||||||||||||||||
Less: | ||||||||||||||||||||
Principal repayments | 1,568,299 | 1,278,734 | 965,520 | |||||||||||||||||
Sales of loans | 612,348 | 7,358 | 13,152 | |||||||||||||||||
Charge-offs (gross) | 20,184 | 2,804 | 3,841 | |||||||||||||||||
Transfer to other real estate owned | 106 | 963 | 992 | |||||||||||||||||
Total loans | $ | 7,801,630 | $ | 6,214,652 | $ | 5,588,713 |
At December 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Non-performing loans: | ||||||||||||||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||||||
Commercial real estate | $ | 23,714 | $ | 7,728 | $ | 5,525 | $ | 14,243 | $ | 2,935 | ||||||||||||||||||||||
Residential real estate | 8,642 | 7,181 | 7,389 | 4,190 | 8,126 | |||||||||||||||||||||||||||
Commercial and industrial
|
1,551 | 207 | 1,587 | 503 | 441 | |||||||||||||||||||||||||||
Consumer
|
2,503 | 2,733 | 2,914 | 1,929 | 2,064 | |||||||||||||||||||||||||||
Total non-performing loans (1)
|
36,410 | 17,849 | 17,415 | 20,865 | 13,566 | |||||||||||||||||||||||||||
OREO
|
106 | 264 | 1,381 | 8,186 | 9,803 | |||||||||||||||||||||||||||
Total non-performing assets (1)
|
$ | 36,516 | $ | 18,113 | $ | 18,796 | $ | 29,051 | $ | 23,369 | ||||||||||||||||||||||
Allowance for credit losses on loans as a percent of total loans receivable (2)
|
0.78 | % | 0.27 | % | 0.30 | % | 0.40 | % | 0.40 | % | ||||||||||||||||||||||
Allowance for credit losses on loans as a percent of total non-performing loans (1) (2)
|
166.81 | 94.41 | 95.19 | 75.35 | 111.92 | |||||||||||||||||||||||||||
Non-performing loans as a percent of total loans receivable (2)
|
0.47 | 0.29 | 0.31 | 0.52 | 0.35 | |||||||||||||||||||||||||||
Non-performing assets as a percent of total assets (2)
|
0.32 | 0.22 | 0.25 | 0.54 | 0.45 |
At or for the Year Ended December 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 16,852 | $ | 16,577 | $ | 15,721 | $ | 15,183 | $ | 16,722 | ||||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||||||
Commercial real estate | 14,850 | 899 | 2,253 | 1,049 | 3,399 | |||||||||||||||||||||||||||
Residential real estate | 3,200 | 1,299 | 1,021 | 3,820 | 558 | |||||||||||||||||||||||||||
Commercial and industrial | 890 | — | 230 | 380 | 184 | |||||||||||||||||||||||||||
Consumer | 1,244 | 606 | 337 | 135 | 349 | |||||||||||||||||||||||||||
Total charge-offs | 20,184 | 2,804 | 3,841 | 5,384 | 4,490 | |||||||||||||||||||||||||||
Recoveries | 1,325 | 1,443 | 1,207 | 1,477 | 328 | |||||||||||||||||||||||||||
Net charge-offs | 18,859 | 1,361 | 2,634 | 3,907 | 4,162 | |||||||||||||||||||||||||||
Credit loss expense | 57,402 | 1,636 | 3,490 | 4,445 | 2,623 | |||||||||||||||||||||||||||
Impact of CECL adoption | 2,701 | — | — | — | — | |||||||||||||||||||||||||||
Initial allowance for credit losses on PCD loans | 2,639 | — | — | — | — | |||||||||||||||||||||||||||
Balance at end of year | $ | 60,735 | $ | 16,852 | $ | 16,577 | $ | 15,721 | $ | 15,183 | ||||||||||||||||||||||
Ratio of net charge-offs during the year to average net loans outstanding during the year
|
0.23 | % | 0.02 | % | 0.05 | % | 0.10 | % | 0.15 | % |
At December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||||||
Amount |
Percent of
ACL to Total ACL |
Percent
of Loans in Each Category to Total Loans |
Amount |
Percent of
Allowance to Total Allowance |
Percent
of Loans in Each Category to Total Loans |
Amount |
Percent of
Allowance to Total Allowance |
Percent
of Loans in Each Category to Total Loans |
Amount |
Percent of
Allowance to Total Allowance |
Percent
of Loans in Each Category to Total Loans |
Amount |
Percent of
Allowance to Total Allowance |
Percent
of Loans in Each Category to Total Loans |
|||||||||||||||||||||||||||||||||
Commercial real estate | $ | 41,757 | 68.76 | % | 59.43 | % | $ | 12,776 | 75.81 | % | 49.71 | % | $ | 11,047 | 66.64 | % | 49.46 | % | $ | 11,127 | 70.78 | % | 44.19 | % | $ | 9,360 | 61.65 | % | 43.72 | % | |||||||||||||||||
Residential real estate | 5,390 | 8.87 | 30.19 | 2,002 | 11.88 | 37.35 | 2,413 | 14.56 | 36.58 | 1,804 | 11.48 | 43.99 | 2,245 | 14.79 | 44.66 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 1,770 | 2.91 | 6.03 | 1,458 | 8.65 | 6.38 | 1,609 | 9.71 | 5.46 | 1,801 | 11.45 | 4.72 | 2,037 | 13.41 | 4.00 | ||||||||||||||||||||||||||||||||
Consumer | 11,818 | 19.46 | 4.35 | 591 | 3.51 | 6.56 | 486 | 2.93 | 8.50 | 614 | 3.91 | 7.10 | 1,110 | 7.31 | 7.62 | ||||||||||||||||||||||||||||||||
Unallocated | — | — | — | 25 | 0.15 | — | 1,022 | 6.16 | — | 375 | 2.38 | — | 431 | 2.84 | — | ||||||||||||||||||||||||||||||||
Total | $ | 60,735 | 100.00 | % | 100.00 | % | $ | 16,852 | 100.00 | % | 100.00 | % | $ | 16,577 | 100.00 | % | 100.00 | % | $ | 15,721 | 100.00 | % | 100.00 | % | $ | 15,183 | 100.00 | % | 100.00 | % |
At December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Amortized
Cost |
Estimated
Fair Value |
Amortized
Cost |
Estimated
Fair Value |
Amortized
Cost |
Estimated
Fair Value |
||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
FHLMC | $ | 232,942 | $ | 238,201 | $ | 206,985 | $ | 208,682 | $ | 237,703 | $ | 232,752 | |||||||||||||||||||||||
FNMA | 293,805 | 301,300 | 244,923 | 247,115 | 278,264 | 272,982 | |||||||||||||||||||||||||||||
GNMA | 67,334 | 69,336 | 110,661 | 111,388 | 127,611 | 125,449 | |||||||||||||||||||||||||||||
SBA | 5,392 | 5,332 | 1,940 | 1,889 | 3,527 | 3,447 | |||||||||||||||||||||||||||||
CMO | 32,321 | 33,547 | — | — | — | — | |||||||||||||||||||||||||||||
Total mortgage-backed securities | $ | 631,794 | $ | 647,716 | $ | 564,509 | $ | 569,074 | $ | 647,105 | $ | 634,630 |
At December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Amortized
Cost |
Estimated
Fair Value |
Amortized
Cost |
Estimated
Fair Value |
Amortized
Cost |
Estimated
Fair Value |
||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||
U.S. government and agency obligations | $ | 173,790 | $ | 176,940 | $ | 154,104 | $ | 155,433 | $ | 115,499 | $ | 114,569 | |||||||||||||||||||||||
State and municipal obligations | 238,405 | 249,674 | 124,455 | 125,784 | 123,987 | 122,357 | |||||||||||||||||||||||||||||
Corporate debt securities | 72,305 | 71,268 | 79,547 | 77,959 | 66,834 | 61,976 | |||||||||||||||||||||||||||||
Collateralized loan obligations | 6,174 | 6,170 | — | — | — | — | |||||||||||||||||||||||||||||
Total investment securities | $ | 490,674 | $ | 504,052 | $ | 358,106 | $ | 359,176 | $ | 306,320 | $ | 298,902 |
At December 31, 2020 | |||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||
One Year
or Less Amortized Cost |
More than One Year to Five Years Amortized Cost | More than Five Years to Ten Years Amortized Cost | More than Ten Years Amortized Cost |
Amortized
Cost |
Estimated
Fair Value |
||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||
U.S. government and agency obligations | $ | 73,432 | $ | 100,358 | $ | — | $ | — | $ | 173,790 | $ | 176,940 | |||||||||||||||||||||||
State and municipal obligations | 21,877 | 85,613 | 38,465 | 92,450 | 238,405 | 249,674 | |||||||||||||||||||||||||||||
Corporate debt securities (1)
|
2,513 | 9,978 | 48,958 | 10,856 | 72,305 | 71,268 | |||||||||||||||||||||||||||||
Collateralized loan obligations (2)
|
— | — | 6,174 | — | 6,174 | 6,170 | |||||||||||||||||||||||||||||
Total investment securities | $ | 97,822 | $ | 195,949 | $ | 93,597 | $ | 103,306 | $ | 490,674 | $ | 504,052 | |||||||||||||||||||||||
Weighted average yield | 1.40 | % | 1.74 | % | 2.35 | % | 2.57 | % | 1.96 | % | |||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
FHLMC | $ | 51 | $ | 1,841 | $ | 43,866 | $ | 187,184 | $ | 232,942 | $ | 238,201 | |||||||||||||||||||||||
FNMA | 3 | 11,404 | 63,439 | 218,959 | 293,805 | 301,300 | |||||||||||||||||||||||||||||
GNMA | — | 32 | 1,636 | 65,666 | 67,334 | 69,336 | |||||||||||||||||||||||||||||
SBA | — | — | 2,884 | 2,508 | 5,392 | 5,332 | |||||||||||||||||||||||||||||
CMO | — | 20,352 | — | 11,969 | 32,321 | 33,547 | |||||||||||||||||||||||||||||
Total mortgage-backed securities | $ | 54 | $ | 33,629 | $ | 111,825 | $ | 486,286 | $ | 631,794 | $ | 647,716 | |||||||||||||||||||||||
Weighted average yield | 1.98 | % | 2.98 | % | 2.17 | % | 2.13 | % | 2.18 | % |
Maturity Period | Amount |
Weighted
Average Rate |
||||||||||||
(dollars in thousands) | ||||||||||||||
Three months or less | $ | 149,897 | 1.46 | % | ||||||||||
Over three through six months | 109,502 | 1.29 | ||||||||||||
Over six through twelve months | 60,038 | 1.41 | ||||||||||||
Over twelve months | 90,065 | 2.30 | ||||||||||||
Total | $ | 409,502 | 1.59 | % |
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average
Balance |
Percent
of Total Average Deposits |
Average
Rate Paid |
Average
Balance |
Percent
of Total Average Deposits |
Average
Rate Paid |
Average
Balance |
Percent
of Total Average Deposits |
Average
Rate Paid |
||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing checking accounts
|
$ | 3,168,889 | 35.76 | % | 0.61 | % | $ | 2,517,068 | 40.05 | % | 0.67 | % | $ | 2,336,917 | 40.43 | % | 0.39 | % | ||||||||||||||||||||||||||||||||||||||
Non-interest-bearing accounts
|
2,031,100 | 22.93 | — | 1,325,836 | 21.10 | — | 1,135,602 | 19.64 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Money market deposit accounts
|
677,554 | 7.65 | 0.43 | 605,607 | 9.64 | 0.81 | 571,997 | 9.90 | 0.49 | |||||||||||||||||||||||||||||||||||||||||||||||
Savings accounts
|
1,449,982 | 16.37 | 0.17 | 906,086 | 14.42 | 0.13 | 877,179 | 15.17 | 0.11 | |||||||||||||||||||||||||||||||||||||||||||||||
Time deposits
|
1,531,857 | 17.29 | 1.53 | 929,488 | 14.79 | 1.67 | 858,978 | 14.86 | 1.11 | |||||||||||||||||||||||||||||||||||||||||||||||
Total average deposits
|
$ | 8,859,382 | 100.00 | % | 0.55 | % | $ | 6,284,085 | 100.00 | % | 0.61 | % | $ | 5,780,673 | 100.00 | % | 0.39 | % |
Capital | ||||||||||||||||||||||||||||||||
As of December 31, 2020 | Actual Capital | Required Capital | Excess Amount | Actual Percent | Required Percent | |||||||||||||||||||||||||||
OceanFirst Financial Corp: | (dollars in thousands) | |||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | $ | 998,273 | $ | 423,028 | $ | 575,245 | 9.44 | % | 4.00 | % | ||||||||||||||||||||||
Common equity Tier 1 (to risk-weighted assets) | 871,385 | 552,075 | 319,310 | 11.05 | 7.00 |
(1)
|
||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 998,273 | 670,377 | 327,896 | 12.66 | 8.50 |
(1)
|
||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | 1,230,370 | 828,113 | 402,257 | 15.60 | 10.50 |
(1)
|
Capital | |||||||||||||||||||||||||||||||||||
As of December 31, 2020 |
Actual
Capital |
Required
Capital |
Excess
Amount |
Actual
Percent |
Required
Percent |
||||||||||||||||||||||||||||||
Bank: | (dollars in thousands) | ||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | $ | 942,122 | $ | 444,648 | $ | 497,474 | 8.48 | % | 4.00 | % | |||||||||||||||||||||||||
Common equity Tier 1 (to risk-weighted assets) | 942,122 | 544,625 | 397,497 | 12.11 | 7.00 |
(1)
|
|||||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 942,122 | 661,331 | 280,791 | 12.11 | 8.50 |
(1)
|
|||||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | 1,004,480 | 816,938 | 187,542 | 12.91 | 10.50 |
(1)
|
Item 1A. | Risk Factors |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Period Ending | ||||||||||||||||||||||||||||||||||||||
Index | 12/31/15 | 12/31/16 | 12/31/17 | 12/31/18 | 12/31/19 | 12/31/20 | ||||||||||||||||||||||||||||||||
OceanFirst Financial Corp. | $100.00 | $154.28 | $137.81 | $120.93 | $141.10 | $107.22 | ||||||||||||||||||||||||||||||||
Nasdaq Composite Index | 100.00 | 108.87 | 141.13 | 137.12 | 187.44 | 271.64 | ||||||||||||||||||||||||||||||||
SNL Thrift Index | 100.00 | 122.49 | 121.60 | 102.42 | 126.10 | 116.21 | ||||||||||||||||||||||||||||||||
SNL Bank Index | 100.00 | 126.35 | 149.21 | 124.00 | 167.93 | 145.49 |
Item 6. | Selected Financial Data |
At December 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Selected Financial Condition Data: | ||||||||||||||||||||||||||||||||
Total assets | $ | 11,448,313 | $ | 8,246,145 | $ | 7,516,154 | $ | 5,416,006 | $ | 5,166,917 | ||||||||||||||||||||||
Debt securities available-for-sale, at estimated fair value | 183,302 | 150,960 | 100,717 | 81,581 | 20,775 | |||||||||||||||||||||||||||
Debt securities held-to-maturity, net of allowance for credit losses | 937,253 | 768,873 | 846,810 | 764,062 | 589,912 | |||||||||||||||||||||||||||
Equity investments, at estimated fair value | 107,079 | 10,136 | 9,655 | 8,700 | — | |||||||||||||||||||||||||||
Restricted equity investments, at cost | 51,705 | 62,356 | 56,784 | 19,724 | 19,313 | |||||||||||||||||||||||||||
Loans receivable, net of allowance for credit losses | 7,704,857 | 6,207,680 | 5,579,222 | 3,965,773 | 3,803,443 | |||||||||||||||||||||||||||
Deposits | 9,427,616 | 6,328,777 | 5,814,569 | 4,342,798 | 4,187,750 | |||||||||||||||||||||||||||
FHLB advances | — | 519,260 | 449,383 | 288,691 | 250,498 | |||||||||||||||||||||||||||
Securities sold under agreements to repurchase and other borrowings | 363,925 | 168,540 | 161,290 | 136,187 | 126,494 | |||||||||||||||||||||||||||
Stockholders’ equity | 1,484,130 | 1,153,119 | 1,039,358 | 601,941 | 571,903 | |||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||
(dollars in thousands; except per share amounts) | ||||||||||||||||||||||||||||||||
Selected Operating Data: | ||||||||||||||||||||||||||||||||
Interest income | $ | 379,608 | $ | 308,794 | $ | 276,654 | $ | 188,829 | $ | 133,425 | ||||||||||||||||||||||
Interest expense | 66,657 | 52,823 | 36,152 | 19,611 | 13,163 | |||||||||||||||||||||||||||
Net interest income | 312,951 | 255,971 | 240,502 | 169,218 | 120,262 | |||||||||||||||||||||||||||
Credit loss expense | 59,404 | 1,636 | 3,490 | 4,445 | 2,623 | |||||||||||||||||||||||||||
Net interest income after credit loss expense | 253,547 | 254,335 | 237,012 | 164,773 | 117,639 | |||||||||||||||||||||||||||
Other income (excluding net gain (loss) on equity investments and gain on sale of Paycheck Protection Program (“PPP”) loans) | 47,611 | 41,898 | 35,026 | 27,072 | 20,412 | |||||||||||||||||||||||||||
Net gain (loss) on equity investments | 21,214 | 267 | (199) | — | — | |||||||||||||||||||||||||||
Gain on sale of PPP loans | 5,101 | — | — | — | — | |||||||||||||||||||||||||||
Operating expenses | 208,604 | 169,589 | 156,275 | 112,022 | 86,182 | |||||||||||||||||||||||||||
FHLB advance prepayment fees | 14,257 | — | — | — | 136 | |||||||||||||||||||||||||||
Branch consolidation expense | 7,623 | 9,050 | 3,151 | 6,205 | — | |||||||||||||||||||||||||||
Merger related expenses | 15,947 | 10,503 | 26,911 | 8,293 | 16,534 | |||||||||||||||||||||||||||
Income before provision for income taxes | 81,042 | 107,358 | 85,502 | 65,325 | 35,199 | |||||||||||||||||||||||||||
Provision for income taxes | 17,733 | 18,784 | 13,570 | 22,855 | 12,153 | |||||||||||||||||||||||||||
Net income | $ | 63,309 | $ | 88,574 | $ | 71,932 | $ | 42,470 | $ | 23,046 | ||||||||||||||||||||||
Net income available to common stockholders | $ | 61,212 | $ | 88,574 | $ | 71,932 | $ | 42,470 | $ | 23,046 | ||||||||||||||||||||||
Basic earnings per share | $ | 1.02 | $ | 1.77 | $ | 1.54 | $ | 1.32 | $ | 1.00 | ||||||||||||||||||||||
Diluted earnings per share | $ | 1.02 | $ | 1.75 | $ | 1.51 | $ | 1.28 | $ | 0.98 |
At or For the Year Ended December 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||
Selected Financial Ratios and Other Data (1):
|
||||||||||||||||||||||||||||||||
Performance Ratios:
|
||||||||||||||||||||||||||||||||
Return on average assets (2)
|
0.56 | % | 1.10 | % | 0.98 | % | 0.80 | % | 0.62 | % | ||||||||||||||||||||||
Return on average tangible assets (2)(3)
|
0.59 | 1.16 | 1.02 | 0.83 | 0.63 | |||||||||||||||||||||||||||
Return on average stockholders’ equity (2)
|
4.35 | 7.84 | 7.31 | 7.20 | 6.08 | |||||||||||||||||||||||||||
Return on average tangible stockholders’ equity (2)(3)
|
6.81 | 11.96 | 11.16 | 9.82 | 7.13 | |||||||||||||||||||||||||||
Stockholders’ equity to total assets
|
12.96 | 13.98 | 13.83 | 11.11 | 11.07 | |||||||||||||||||||||||||||
Tangible stockholders’ equity to tangible assets (3)
|
8.79 | 9.71 | 9.55 | 8.42 | 8.30 | |||||||||||||||||||||||||||
Tangible common equity to tangible assets (3)
|
8.28 | 9.71 | 9.55 | 8.42 | 8.30 | |||||||||||||||||||||||||||
Net interest rate spread (4)
|
2.96 | 3.40 | 3.57 | 3.44 | 3.38 | |||||||||||||||||||||||||||
Net interest margin (5)
|
3.16 | 3.62 | 3.71 | 3.53 | 3.47 | |||||||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
130.65 | 128.51 | 124.96 | 122.99 | 122.46 | |||||||||||||||||||||||||||
Operating expenses to average assets (2)
|
2.20 | 2.35 | 2.53 | 2.39 | 2.76 | |||||||||||||||||||||||||||
Efficiency ratio (2)(6)
|
63.70 | 63.44 | 67.68 | 64.46 | 73.11 | |||||||||||||||||||||||||||
Loans to deposits ratio (7)
|
82.27 | 98.20 | 96.12 | 91.56 | 90.92 | |||||||||||||||||||||||||||
Asset Quality Ratios:
|
||||||||||||||||||||||||||||||||
Non-performing loans as a percent of total loans receivable (7)(8)
|
0.47 | 0.29 | 0.31 | 0.52 | 0.35 | |||||||||||||||||||||||||||
Non-performing assets as a percent of total assets (8)
|
0.32 | 0.22 | 0.25 | 0.54 | 0.45 | |||||||||||||||||||||||||||
Allowance for credit losses as a percent of total loans
receivable (7)(9)
|
0.78 | 0.27 | 0.30 | 0.40 | 0.40 | |||||||||||||||||||||||||||
Allowance for credit losses as a percent of total non-performing loans (8)(9)
|
166.81 | 94.41 | 95.19 | 75.35 | 111.92 | |||||||||||||||||||||||||||
Wealth Management: | ||||||||||||||||||||||||||||||||
Assets under administration (000’s)
|
$ | 245,175 | $ | 195,415 | $ | 184,476 | $ | 233,185 | $ | 218,336 | ||||||||||||||||||||||
Nest Egg (000’s) | 93,237 | 34,865 | — | — | — | |||||||||||||||||||||||||||
Per Share Data:
|
||||||||||||||||||||||||||||||||
Cash dividends per common share
|
$ | 0.68 | $ | 0.68 | $ | 0.62 | $ | 0.60 | $ | 0.54 | ||||||||||||||||||||||
Dividend payout ratio per common share | 66.73 | % | 38.96 | % | 41.08 | % | 46.80 | % | 55.14 | % | ||||||||||||||||||||||
Stockholders’ equity per common share at end of period
|
$ | 24.57 | $ | 22.88 | $ | 21.68 | $ | 18.47 | $ | 17.80 | ||||||||||||||||||||||
Tangible stockholders’ equity per common share at end of period (3)
|
15.90 | 15.13 | 14.26 | 13.58 | 12.94 | |||||||||||||||||||||||||||
Tangible common stockholders’ equity per common share at end of period (3)
|
14.98 | 15.13 | 14.26 | 13.58 | 12.94 | |||||||||||||||||||||||||||
Number of full-service customer facilities:
|
62 | 56 | 59 | 46 | 61 |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) |
Average
Balance |
Interest |
Average
Yield/ Cost |
Average
Balance |
Interest |
Average
Yield/ Cost |
Average
Balance |
Interest |
Average
Yield/ Cost |
||||||||||||||||||||||||||||||||||||||||||||
Assets:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning deposits and short-term investments
|
$ | 613,971 | $ | 1,034 | 0.17 | % | $ | 57,742 | $ | 1,299 | 2.25 | % | $ | 49,683 | $ | 896 | 1.80 | % | |||||||||||||||||||||||||||||||||||
Securities (1)
|
1,159,764 | 29,353 | 2.53 | 1,048,779 | 27,564 | 2.63 | 1,073,454 | 26,209 | 2.44 | ||||||||||||||||||||||||||||||||||||||||||||
Loans receivable, net (2)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 5,299,813 | 236,749 | 4.47 | 3,329,396 | 168,507 | 5.06 | 3,012,521 | 149,965 | 4.98 | ||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 2,465,740 | 93,120 | 3.78 | 2,204,931 | 87,729 | 3.98 | 1,965,395 | 79,805 | 4.06 | ||||||||||||||||||||||||||||||||||||||||||||
Home equity loans and lines | 318,090 | 15,183 | 4.77 | 339,896 | 18,284 | 5.38 | 357,137 | 17,991 | 5.04 | ||||||||||||||||||||||||||||||||||||||||||||
Other consumer | 72,331 | 4,169 | 5.76 | 107,672 | 5,411 | 5.03 | 35,424 | 1,788 | 5.05 | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses, net of deferred loan costs and fees | (33,343) | — | — | (8,880) | — | — | (9,972) | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Loans receivable, net (2)
|
8,122,631 | 349,221 | 4.30 | 5,973,015 | 279,931 | 4.69 | 5,360,505 | 249,549 | 4.66 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets
|
9,896,366 | 379,608 | 3.84 | 7,079,536 | 308,794 | 4.36 | 6,483,642 | 276,654 | 4.27 | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest-earning assets
|
1,310,474 | 964,920 | 880,836 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets
|
$ | 11,206,840 | $ | 8,044,456 | $ | 7,364,478 | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing checking accounts | $ | 3,168,889 | 19,395 | 0.61 | % | $ | 2,517,068 | 16,820 | 0.67 | % | $ | 2,336,917 | 9,219 | 0.39 | % | ||||||||||||||||||||||||||||||||||||||
Money market deposit accounts | 677,554 | 2,902 | 0.43 | 605,607 | 4,919 | 0.81 | 571,997 | 2,818 | 0.49 | ||||||||||||||||||||||||||||||||||||||||||||
Savings accounts | 1,449,982 | 2,505 | 0.17 | 906,086 | 1,195 | 0.13 | 877,179 | 990 | 0.11 | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits
|
1,531,857 | 23,488 | 1.53 | 929,488 | 15,498 | 1.67 | 858,978 | 9,551 | 1.11 | ||||||||||||||||||||||||||||||||||||||||||||
Total
|
6,828,282 | 48,290 | 0.71 | 4,958,249 | 38,432 | 0.78 | 4,645,071 | 22,578 | 0.49 | ||||||||||||||||||||||||||||||||||||||||||||
FHLB advances
|
413,290 | 7,018 | 1.70 | 387,925 | 8,441 | 2.18 | 382,464 | 7,885 | 2.06 | ||||||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase
|
125,500 | 562 | 0.45 | 64,525 | 276 | 0.43 | 66,340 | 168 | 0.25 | ||||||||||||||||||||||||||||||||||||||||||||
Other borrowings
|
207,386 | 10,787 | 5.20 | 98,095 | 5,674 | 5.78 | 94,644 | 5,521 | 5.83 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities
|
7,574,458 | 66,657 | 0.88 | 5,508,794 | 52,823 | 0.96 | 5,188,519 | 36,152 | 0.70 | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing deposits
|
2,031,100 | 1,325,836 | 1,135,602 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing liabilities
|
144,571 | 80,028 | 56,098 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities
|
9,750,129 | 6,914,658 | 6,380,219 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity
|
1,456,711 | 1,129,798 | 984,259 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity
|
$ | 11,206,840 | $ | 8,044,456 | $ | 7,364,478 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income
|
$ | 312,951 | $ | 255,971 | $ | 240,502 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest rate spread (3)
|
2.96 | % | 3.40 | % | 3.57 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (4)
|
3.16 | % | 3.62 | % | 3.71 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Total cost of deposits (including non-interest-bearing deposits)
|
0.55 | % | 0.61 | % | 0.39 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
130.65 | % | 128.51 | % | 124.96 | % |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Compared to | Compared to | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||
Increase (Decrease) Due to | Increase (Decrease) Due to | |||||||||||||||||||||||||||||||||||||
(in thousands) | Volume | Rate | Net | Volume | Rate | Net | ||||||||||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||||||||||||
Interest-earning deposits and short-term investments
|
$ | 1,950 | $ | (2,215) | $ | (265) | $ | 159 | $ | 244 | $ | 403 | ||||||||||||||||||||||||||
Securities (1)
|
2,859 | (1,070) | 1,789 | (621) | 1,976 | 1,355 | ||||||||||||||||||||||||||||||||
Loans receivable, net (2)
|
||||||||||||||||||||||||||||||||||||||
Commercial real estate | 89,831 | (21,589) | 68,242 | 16,085 | 2,457 | 18,542 | ||||||||||||||||||||||||||||||||
Residential real estate | 9,974 | (4,583) | 5,391 | 9,528 | (1,604) | 7,924 | ||||||||||||||||||||||||||||||||
Home equity loans and lines | (1,121) | (1,980) | (3,101) | (891) | 1,184 | 293 | ||||||||||||||||||||||||||||||||
Other consumer | (1,951) | 709 | (1,242) | 3,630 | (7) | 3,623 | ||||||||||||||||||||||||||||||||
Loans receivable, net (2)
|
96,733 | (27,443) | 69,290 | 28,352 | 2,030 | 30,382 | ||||||||||||||||||||||||||||||||
Total interest-earning assets
|
101,542 | (30,728) | 70,814 | 27,890 | 4,250 | 32,140 | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||||
Interest-bearing checking accounts | 4,158 | (1,583) | 2,575 | 737 | 6,864 | 7,601 | ||||||||||||||||||||||||||||||||
Money market deposit accounts | 522 | (2,539) | (2,017) | 173 | 1,928 | 2,101 | ||||||||||||||||||||||||||||||||
Savings accounts | 866 | 444 | 1,310 | 31 | 174 | 205 | ||||||||||||||||||||||||||||||||
Time deposits
|
9,379 | (1,389) | 7,990 | 832 | 5,115 | 5,947 | ||||||||||||||||||||||||||||||||
Total
|
14,925 | (5,067) | 9,858 | 1,773 | 14,081 | 15,854 | ||||||||||||||||||||||||||||||||
FHLB advances
|
527 | (1,950) | (1,423) | 109 | 447 | 556 | ||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase
|
273 | 13 | 286 | (5) | 113 | 108 | ||||||||||||||||||||||||||||||||
Other borrowings
|
5,734 | (621) | 5,113 | 200 | (47) | 153 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities
|
21,459 | (7,625) | 13,834 | 2,077 | 14,594 | 16,671 | ||||||||||||||||||||||||||||||||
Net change in net interest income
|
$ | 80,083 | $ | (23,103) | $ | 56,980 | $ | 25,813 | $ | (10,344) | $ | 15,469 |
Contractual Obligation | Total |
Less than
one year |
1-3 years | 3-5 years |
More than
5 years |
|||||||||||||||||||||||||||
Debt obligations | $ | 363,925 | $ | 128,649 | $ | 425 | $ | 476 | $ | 234,375 | ||||||||||||||||||||||
Commitments to originate loans | 367,806 | 367,806 | — | — | — | |||||||||||||||||||||||||||
Commitments to fund unused lines of credit: | ||||||||||||||||||||||||||||||||
Commercial real estate | 668,114 | 668,114 | — | — | — | |||||||||||||||||||||||||||
Consumer and residential construction | 372,159 | 372,159 | — | — | — | |||||||||||||||||||||||||||
Purchase obligations | 54,088 | 11,307 | 22,287 | 20,494 | — |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
At December 31, 2020 |
3 Months
or Less |
More than
3 Months to 1 Year |
More than
1 Year to 3 Years |
More than
3 Years to 5 Years |
More than
5 Years |
Total | ||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Interest-earning assets (1):
|
||||||||||||||||||||||||||||||||||||||
Interest-earning deposits and short-term investments
|
$ | 1,022,405 | $ | 1,225 | $ | 2,219 | $ | — | $ | — | $ | 1,025,849 | ||||||||||||||||||||||||||
Investment securities
|
78,233 | 78,334 | 132,972 | 62,977 | 138,158 | 490,674 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities
|
90,759 | 136,520 | 241,877 | 127,622 | 35,016 | 631,794 | ||||||||||||||||||||||||||||||||
Equity investments
|
— | — | — | — | 107,079 | 107,079 | ||||||||||||||||||||||||||||||||
Restricted equity investments | — | — | — | — | 51,705 | 51,705 | ||||||||||||||||||||||||||||||||
Loans receivable, net (2)
|
2,083,828 | 1,531,388 | 2,283,549 | 1,120,890 | 781,975 | 7,801,630 | ||||||||||||||||||||||||||||||||
Total interest-earning assets
|
3,275,225 | 1,747,467 | 2,660,617 | 1,311,489 | 1,113,933 | 10,108,731 | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||||
Interest-bearing checking accounts
|
1,446,820 | 154,681 | 399,057 | 331,147 | 1,315,161 | 3,646,866 | ||||||||||||||||||||||||||||||||
Money market deposit accounts
|
73,252 | 53,129 | 124,264 | 101,738 | 431,138 | 783,521 | ||||||||||||||||||||||||||||||||
Savings accounts
|
157,779 | 106,840 | 278,829 | 227,246 | 720,557 | 1,491,251 | ||||||||||||||||||||||||||||||||
Time deposits
|
406,053 | 567,373 | 328,800 | 61,459 | 9,098 | 1,372,783 | ||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase and other borrowings
|
231,840 | 195 | 425 | 130,461 | 1,004 | 363,925 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities
|
2,315,744 | 882,218 | 1,131,375 | 852,051 | 2,476,958 | 7,658,346 | ||||||||||||||||||||||||||||||||
Interest sensitivity gap (3)
|
$ | 959,481 | $ | 865,249 | $ | 1,529,242 | $ | 459,438 | $ | (1,363,025) | $ | 2,450,385 | ||||||||||||||||||||||||||
Cumulative interest sensitivity gap
|
$ | 959,481 | $ | 1,824,730 | $ | 3,353,972 | $ | 3,813,410 | $ | 2,450,385 | $ | 2,450,385 | ||||||||||||||||||||||||||
Cumulative interest sensitivity gap as a percent of total interest-earning assets
|
9.49 | % | 18.05 | % | 33.18 | % | 37.72 | % | 24.24 | % | 24.24 | % |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in
Interest Rates in Basis Points |
Economic Value of Equity | Net Interest Income | Economic Value of Equity | Net Interest Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Rate Shock) | Amount |
%
Change |
EVE
Ratio |
Amount |
%
Change |
Amount |
%
Change |
EVE
Ratio |
Amount |
%
Change |
||||||||||||||||||||||||||||||||||||||||||||||||||||
300 | $ | 1,890,335 | 38.5 | % | 17.3 | % | $ | 340,098 | 16.2 | % | $ | 1,242,674 | 5.1 | % | 16.4 | % | $ | 253,184 | (0.6) | % | ||||||||||||||||||||||||||||||||||||||||||
200 | 1,752,255 | 28.4 | 15.7 | 325,436 | 11.2 | 1,246,011 | 5.4 | 16.0 | 254,424 | (0.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
100 | 1,578,917 | 15.7 | 13.9 | 309,644 | 5.8 | 1,227,428 | 3.8 | 15.3 | 254,996 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Static | 1,365,119 | — | 11.8 | 292,572 | — | 1,182,696 | — | 14.4 | 254,721 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(100) | 1,074,346 | (21.3) | 9.2 | 284,763 | (2.7) | 1,090,184 | (7.8) | 12.9 | 252,662 | (0.8) |
Item 8. | Financial Statements and Supplementary Data |
December 31, 2020 | December 31, 2019 | |||||||||||||
Assets | ||||||||||||||
Cash and due from banks | $ | 1,272,134 | $ | 120,544 | ||||||||||
Debt securities available-for-sale, at estimated fair value (encumbered $5,339 at December 31, 2020 and $21,646 at December 31, 2019)
|
183,302 | 150,960 | ||||||||||||
Debt securities held-to-maturity, net of allowance for credit losses of $1,715 at December 31, 2020 (estimated fair value of $968,466 at December 31, 2020 and $777,290 at December 31, 2019) (encumbered $418,719 at December 31, 2020 and $452,212 at December 31, 2019)
|
937,253 | 768,873 | ||||||||||||
Equity investments, at estimated fair value | 107,079 | 10,136 | ||||||||||||
Restricted equity investments, at cost | 51,705 | 62,356 | ||||||||||||
Loans receivable, net of allowance for credit losses of $60,735 at December 31, 2020 and $16,852 at December 31, 2019
|
7,704,857 | 6,207,680 | ||||||||||||
Loans held-for-sale | 45,524 | — | ||||||||||||
Interest and dividends receivable | 35,269 | 21,674 | ||||||||||||
Other real estate owned | 106 | 264 | ||||||||||||
Premises and equipment, net | 107,094 | 102,691 | ||||||||||||
Bank owned life insurance | 265,253 | 237,411 | ||||||||||||
Assets held for sale | 5,782 | 3,785 | ||||||||||||
Goodwill | 500,319 | 374,632 | ||||||||||||
Core deposit intangible | 23,668 | 15,607 | ||||||||||||
Other assets | 208,968 | 169,532 | ||||||||||||
Total assets | $ | 11,448,313 | $ | 8,246,145 | ||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||
Deposits | $ | 9,427,616 | $ | 6,328,777 | ||||||||||
Federal Home Loan Bank ("FHLB") advances | — | 519,260 | ||||||||||||
Securities sold under agreements to repurchase with retail customers | 128,454 | 71,739 | ||||||||||||
Other borrowings | 235,471 | 96,801 | ||||||||||||
Advances by borrowers for taxes and insurance | 17,296 | 13,884 | ||||||||||||
Other liabilities | 155,346 | 62,565 | ||||||||||||
Total liabilities | 9,964,183 | 7,093,026 | ||||||||||||
Stockholders’ equity:
|
||||||||||||||
Preferred stock, $0.01 par value, $1,000 liquidation preference, 5,000,000
shares authorized, 57,370 shares issued at December 31, 2020 and no shares issued at December 31, 2019
|
1 | — | ||||||||||||
Common stock, $0.01 par value, 150,000,000 shares authorized, 61,040,894 shares issued and 60,392,043 and 50,405,048 shares outstanding at December 31, 2020 and December 31, 2019, respectively
|
609 | 519 | ||||||||||||
Additional paid-in capital | 1,137,715 | 840,691 | ||||||||||||
Retained earnings | 378,268 | 358,668 | ||||||||||||
Accumulated other comprehensive income (loss) | 621 | (1,208) | ||||||||||||
Less: Unallocated common stock held by Employee Stock Ownership Plan ("ESOP") | (7,433) | (8,648) | ||||||||||||
Treasury stock, 648,851 and 1,586,808 shares at December 31, 2020 and December 31, 2019, respectively
|
(25,651) | (36,903) | ||||||||||||
Total stockholders’ equity | 1,484,130 | 1,153,119 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 11,448,313 | $ | 8,246,145 |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | $ | 349,221 | $ | 279,931 | $ | 249,549 | ||||||||||||||
Mortgage-backed securities | 14,037 | 15,300 | 16,034 | |||||||||||||||||
Debt securities, equity investments and other | 16,350 | 13,563 | 11,071 | |||||||||||||||||
Total interest income | 379,608 | 308,794 | 276,654 | |||||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 48,290 | 38,432 | 22,578 | |||||||||||||||||
Borrowed funds | 18,367 | 14,391 | 13,574 | |||||||||||||||||
Total interest expense | 66,657 | 52,823 | 36,152 | |||||||||||||||||
Net interest income | 312,951 | 255,971 | 240,502 | |||||||||||||||||
Credit loss expense | 59,404 | 1,636 | 3,490 | |||||||||||||||||
Net interest income after credit loss expense | 253,547 | 254,335 | 237,012 | |||||||||||||||||
Other income: | ||||||||||||||||||||
Bankcard services revenue | 11,417 | 10,263 | 9,228 | |||||||||||||||||
Trust and asset management revenue | 2,052 | 2,102 | 2,245 | |||||||||||||||||
Fees and service charges | 15,808 | 18,500 | 19,461 | |||||||||||||||||
Net gain on sales of loans | 8,278 | 16 | 668 | |||||||||||||||||
Net gain (loss) on equity investments | 21,214 | 267 | (199) | |||||||||||||||||
Net gain (loss) from other real estate operations | 35 | (330) | (3,812) | |||||||||||||||||
Income from bank owned life insurance | 6,424 | 5,420 | 5,105 | |||||||||||||||||
Commercial loan swap income | 8,080 | 5,285 | 669 | |||||||||||||||||
Other | 618 | 642 | 1,462 | |||||||||||||||||
Total other income | 73,926 | 42,165 | 34,827 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Compensation and employee benefits | 114,155 | 89,912 | 83,135 | |||||||||||||||||
Occupancy | 20,782 | 17,159 | 17,915 | |||||||||||||||||
Equipment | 7,769 | 7,719 | 8,319 | |||||||||||||||||
Marketing | 3,117 | 3,469 | 3,415 | |||||||||||||||||
Federal deposit insurance and regulatory assessments | 4,871 | 2,227 | 3,713 | |||||||||||||||||
Data processing | 17,467 | 14,814 | 13,286 | |||||||||||||||||
Check card processing | 5,458 | 5,956 | 4,209 | |||||||||||||||||
Professional fees | 12,247 | 9,338 | 4,963 | |||||||||||||||||
Other operating expense | 16,552 | 14,968 | 13,509 | |||||||||||||||||
Amortization of core deposit intangible | 6,186 | 4,027 | 3,811 | |||||||||||||||||
FHLB advance prepayment fees | 14,257 | — | — | |||||||||||||||||
Branch consolidation expenses | 7,623 | 9,050 | 3,151 | |||||||||||||||||
Merger related expenses | 15,947 | 10,503 | 26,911 | |||||||||||||||||
Total operating expenses | 246,431 | 189,142 | 186,337 | |||||||||||||||||
Income before provision for income taxes | 81,042 | 107,358 | 85,502 | |||||||||||||||||
Provision for income taxes | 17,733 | 18,784 | 13,570 | |||||||||||||||||
Net income | 63,309 | 88,574 | 71,932 | |||||||||||||||||
Dividends on preferred shares | 2,097 | — | — | |||||||||||||||||
Net income available to common stockholders | $ | 61,212 | $ | 88,574 | $ | 71,932 | ||||||||||||||
Basic earnings per share | $ | 1.02 | $ | 1.77 | $ | 1.54 | ||||||||||||||
Diluted earnings per share | $ | 1.02 | $ | 1.75 | $ | 1.51 | ||||||||||||||
Average basic shares outstanding | 59,919 | 50,166 | 46,773 | |||||||||||||||||
Average diluted shares outstanding | 60,072 | 50,746 | 47,657 |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Net income
|
$ | 63,309 | $ | 88,574 | $ | 71,932 | ||||||||||||||
Other comprehensive income:
|
||||||||||||||||||||
Unrealized gain (loss) on debt securities (net of tax expense of $411 and $470 in 2020 and 2019, respectively, and net of tax benefit of $33 in 2018)
|
1,039 | 1,655 | (162) | |||||||||||||||||
Accretion of unrealized loss on debt securities reclassified to held-to-maturity (net of tax expense of $310, $404 and $1,186 in 2020, 2019, and 2018, respectively)
|
446 | 587 | 1,719 | |||||||||||||||||
Reclassification adjustment for gains included in net income (net of tax expense of $101 and $53 in 2020 and 2018, respectively)
|
344 | — | 195 | |||||||||||||||||
Total other comprehensive income
|
1,829 | 2,242 | 1,752 | |||||||||||||||||
Total comprehensive income
|
65,138 | 90,816 | 73,684 | |||||||||||||||||
Less: Dividends on preferred shares | 2,097 | — | — | |||||||||||||||||
Total comprehensive income available to common stockholders | $ | 63,041 | $ | 90,816 | $ | 73,684 |
Preferred
Stock |
Common
Stock |
Additional
Paid-In Capital |
Retained
Earnings |
Accumulated
Other Comprehensive (Loss) Gain |
Employee
Stock Ownership Plan |
Treasury
Stock |
Total | |||||||||||||||||||||||||
Balance at December 31, 2017 | $ | — | $ | 336 | $ | 354,377 | $ | 271,023 | $ | (5,349) | $ | (2,479) | $ | (15,967) | $ | 601,941 | ||||||||||||||||
Net income | — | — | — | 71,932 | — | — | — | 71,932 | ||||||||||||||||||||||||
Other comprehensive income, net
of tax |
— | — | — | — | 1,752 | — | — | 1,752 | ||||||||||||||||||||||||
Stock awards | — | 2 | 3,036 | — | — | — | — | 3,038 | ||||||||||||||||||||||||
Effect of adopting Accounting
Standards Update (“ASU”) No. 2016-01 |
— | — | — | (147) | 147 | — | — | — | ||||||||||||||||||||||||
Acquisition of common
stock by ESOP |
— | — | — | — | — | (8,400) | (8,400) | |||||||||||||||||||||||||
Allocation of ESOP stock | — | — | 596 | — | — | 1,022 | — | 1,618 | ||||||||||||||||||||||||
Cash dividend – $0.62 per share
|
— | — | — | (29,564) | — | — | — | (29,564) | ||||||||||||||||||||||||
Exercise of stock options | — | 4 | 13,306 | (8,188) | — | — | 202 | 5,324 | ||||||||||||||||||||||||
Acquisition of Sun Bancorp Inc. | — | 141 | 386,648 | — | — | — | 15,765 | 402,554 | ||||||||||||||||||||||||
Purchase 459,251 shares of
common stock
|
— | — | — | — | — | — | (10,837) | (10,837) | ||||||||||||||||||||||||
Balance at December 31, 2018 | — | 483 | 757,963 | 305,056 | (3,450) | (9,857) | (10,837) | 1,039,358 | ||||||||||||||||||||||||
Net income | — | — | — | 88,574 | — | — | — | 88,574 | ||||||||||||||||||||||||
Other comprehensive income, net
of tax |
— | — | — | — | 2,242 | — | — | 2,242 | ||||||||||||||||||||||||
Stock awards | — | 2 | 3,859 | — | — | — | — | 3,861 | ||||||||||||||||||||||||
Allocation of ESOP stock | — | — | 366 | — | — | 1,209 | — | 1,575 | ||||||||||||||||||||||||
Cash dividend – $0.68 per share
|
— | — | — | (34,241) | — | — | — | (34,241) | ||||||||||||||||||||||||
Exercise of stock options | — | 2 | 2,054 | (721) | — | — | — | 1,335 | ||||||||||||||||||||||||
Acquisition of Capital Bank of New Jersey | — | 32 | 76,449 | — | — | — | — | 76,481 | ||||||||||||||||||||||||
Purchase 1,127,557 shares of
common stock
|
— | — | — | — | — | — | (26,066) | (26,066) | ||||||||||||||||||||||||
Balance at December 31, 2019 | — | 519 | 840,691 | 358,668 | (1,208) | (8,648) | (36,903) | 1,153,119 | ||||||||||||||||||||||||
Net income | — | — | — | 63,309 | — | — | — | 63,309 | ||||||||||||||||||||||||
Other comprehensive income, net
of tax |
— | — | — | — | 1,829 | — | — | 1,829 | ||||||||||||||||||||||||
Stock awards | — | 2 | 4,256 | — | — | — | — | 4,258 | ||||||||||||||||||||||||
Effect of adopting ASU
No. 2016-13 |
— | — | — | (4) | — | — | — | (4) | ||||||||||||||||||||||||
Allocation of ESOP stock | — | — | (80) | — | — | 1,215 | — | 1,135 | ||||||||||||||||||||||||
Cash dividend – $0.68 per share
|
— | — | — | (40,820) | — | — | — | (40,820) | ||||||||||||||||||||||||
Exercise of stock options | — | 2 | 2,027 | (788) | — | — | — | 1,241 | ||||||||||||||||||||||||
Purchase 648,851 shares of
common stock
|
— | — | — | — | — | — | (14,814) | (14,814) | ||||||||||||||||||||||||
Proceeds from preferred stock issuance, net of costs | 1 | — | 55,528 | — | — | — | 55,529 | |||||||||||||||||||||||||
Preferred stock dividend | — | — | — | (2,097) | — | — | — | (2,097) | ||||||||||||||||||||||||
Acquisition of Two River Bancorp | — | 42 | 122,501 | — | — | — | 26,066 | 148,609 | ||||||||||||||||||||||||
Acquisition of Country Bank Holding Company | — | 44 | 112,792 | — | — | — | 112,836 | |||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 1 | $ | 609 | $ | 1,137,715 | $ | 378,268 | $ | 621 | $ | (7,433) | $ | (25,651) | $ | 1,484,130 |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 63,309 | $ | 88,574 | $ | 71,932 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization of premises and equipment | 8,453 | 8,363 | 8,706 | |||||||||||||||||
Allocation of ESOP stock | 1,135 | 1,575 | 1,618 | |||||||||||||||||
Stock awards | 4,258 | 3,861 | 3,038 | |||||||||||||||||
Net excess tax expense (benefit) on stock compensation | 123 | (357) | (722) | |||||||||||||||||
Amortization of core deposit intangible | 6,186 | 4,027 | 3,811 | |||||||||||||||||
Net accretion of purchase accounting adjustments | (21,557) | (14,094) | (16,733) | |||||||||||||||||
Amortization of servicing asset | 93 | 42 | 98 | |||||||||||||||||
Net premium amortization in excess of discount accretion on securities | 2,997 | 3,232 | 3,893 | |||||||||||||||||
Net amortization of deferred costs on borrowings | 553 | 216 | 262 | |||||||||||||||||
Net amortization of deferred costs and discounts on loans | 4,872 | 1,584 | 669 | |||||||||||||||||
Credit loss expense | 59,404 | 1,636 | 3,490 | |||||||||||||||||
Deferred tax (benefit) provision | (4,615) | 16,053 | (4,568) | |||||||||||||||||
Net loss on sale and write-down of other real estate owned | (390) | 20 | 2,359 | |||||||||||||||||
Net write-down of fixed assets held-for-sale to net realizable value | 3,853 | 7,532 | 4,024 | |||||||||||||||||
Net gain on sale of fixed assets | (6) | (27) | (26) | |||||||||||||||||
Net (gain) loss on equity securities | (21,214) | (267) | 199 | |||||||||||||||||
Net gain on sales of loans | (8,278) | (16) | (668) | |||||||||||||||||
Proceeds from sales of mortgage loans held for sale | 171,263 | 1,023 | 2,794 | |||||||||||||||||
Mortgage loans originated for sale | (213,428) | (1,007) | (2,498) | |||||||||||||||||
Increase in value of bank owned life insurance | (6,424) | (5,420) | (5,105) | |||||||||||||||||
Net (gain) loss on sale of assets held for sale | (21) | 17 | (1,245) | |||||||||||||||||
(Increase) decrease in interest and dividends receivable | (9,434) | (397) | 186 | |||||||||||||||||
Decrease (increase) in other assets | 17,030 | (32,871) | 27,301 | |||||||||||||||||
Increase (decrease) in other liabilities | 74,494 | 16,948 | (10,264) | |||||||||||||||||
Total adjustments | 69,347 | 11,673 | 20,619 | |||||||||||||||||
Net cash provided by operating activities | 132,656 | 100,247 | 92,551 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Net (increase) decrease in loans receivable
|
(428,444) | (215,881) | 103,889 | |||||||||||||||||
Purchases of loans receivable
|
— | (101,674) | (199,580) | |||||||||||||||||
Proceeds from sale of loans | 449,462 | 5,901 | 10,412 | |||||||||||||||||
Purchase of debt investment securities available-for-sale
|
(77,519) | (60,158) | (33,040) | |||||||||||||||||
Purchase of debt investment securities held-to-maturity
|
(28,796) | (4,381) | (6,486) | |||||||||||||||||
Purchase of debt mortgage-backed securities held-to-maturity
|
(195,277) | — | — | |||||||||||||||||
Purchase of equity investments
|
(96,519) | (214) | (191) | |||||||||||||||||
Proceeds from sale of equity investments | 16,978 | — | — | |||||||||||||||||
Proceeds from maturities and calls of debt investment securities available-for-sale
|
43,503 | 29,299 | 18,501 | |||||||||||||||||
Proceeds from maturities and calls of debt investment securities held-to-maturity
|
53,959 | 43,256 | 52,543 | |||||||||||||||||
Proceeds from sales of debt mortgage backed securities held-to-maturity
|
12,450 | — | — | |||||||||||||||||
Proceeds from sales of debt investment securities available-for-sale
|
10,598 | — | — | |||||||||||||||||
Principal repayments on debt mortgage-backed securities available-for-sale
|
306 | 503 | 655 | |||||||||||||||||
Principal repayments on debt investment securities held-to-maturity | 857 | — | — | |||||||||||||||||
Principal repayments on debt mortgage-backed securities held-to-maturity
|
185,830 | 123,833 | 119,125 |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Cash flows from investing activities (continued):
|
||||||||||||||||||||
Proceeds from bank owned life insurance | 1,022 | 870 | 2,708 | |||||||||||||||||
Proceeds from the redemption of restricted equity investments
|
78,190 | 122,535 | 106,807 | |||||||||||||||||
Purchases of restricted equity investments
|
(59,525) | (127,794) | (127,048) | |||||||||||||||||
Proceeds from sales of other real estate owned
|
855 | 2,060 | 5,438 | |||||||||||||||||
Proceeds from sales of assets held for sale
|
1,169 | 2,353 | 10,050 | |||||||||||||||||
Purchases of premises and equipment | (14,728) | (5,075) | (11,487) | |||||||||||||||||
Cash held in escrow for acquisitions | — | (46,950) | — | |||||||||||||||||
Cash consideration received (paid) for acquisition, net of cash received | 23,460 | 59,395 | (3,743) | |||||||||||||||||
Net cash (used in) provided by investing activities
|
(22,169) | (172,122) | 48,553 | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Increase (decrease) in deposits | 1,507,943 | 65,687 | (143,025) | |||||||||||||||||
(Decrease) increase in short-term borrowings | (226,018) | 105,979 | 126,092 | |||||||||||||||||
Proceeds from Federal Home Loan Bank advances | 525,000 | 80,000 | — | |||||||||||||||||
Repayments of Federal Home Loan Bank advances | (840,200) | (106,618) | (67,155) | |||||||||||||||||
Net proceeds from issuance of subordinated notes | 122,180 | — | — | |||||||||||||||||
Proceeds from Federal Reserve Bank Term advances | 53,778 | — | — | |||||||||||||||||
Repayments from Federal Reserve Bank Term advances | (53,778) | — | — | |||||||||||||||||
Repayments of other borrowings | (8,109) | (263) | (439) | |||||||||||||||||
(Decrease) increase in advances by borrowers for taxes and insurance | (2,803) | (182) | 2,910 | |||||||||||||||||
Exercise of stock options | 1,241 | 1,335 | 5,324 | |||||||||||||||||
Payment of employee taxes withheld from stock awards | (2,084) | (2,858) | (3,295) | |||||||||||||||||
Purchase of treasury stock | (14,814) | (26,066) | (10,837) | |||||||||||||||||
Net proceeds from the issuance of preferred stock | 55,529 | — | — | |||||||||||||||||
Acquisition of common stock by ESOP | — | — | (8,400) | |||||||||||||||||
Dividends paid | (42,917) | (34,241) | (29,564) | |||||||||||||||||
Net cash provided by (used in) financing activities
|
1,074,948 | 82,773 | (128,389) | |||||||||||||||||
Net increase in cash and due from banks and restricted cash | 1,185,435 | 10,898 | 12,715 | |||||||||||||||||
Cash and due from banks and restricted cash at beginning of year
|
133,226 | 122,328 | 109,613 | |||||||||||||||||
Cash and due from banks and restricted cash at end of year
|
$ | 1,318,661 | $ | 133,226 | $ | 122,328 | ||||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||||||
Cash and due from banks at beginning of year
|
$ | 120,544 | $ | 120,792 | $ | 109,613 | ||||||||||||||
Restricted cash at beginning of year
|
12,682 | 1,536 | — | |||||||||||||||||
Cash and due from banks and restricted cash at beginning of year
|
$ | 133,226 | $ | 122,328 | $ | 109,613 | ||||||||||||||
Cash and due from banks at end of year
|
$ | 1,272,134 | $ | 120,544 | $ | 120,792 | ||||||||||||||
Restricted cash at end of year
|
46,527 | 12,682 | 1,536 | |||||||||||||||||
Cash and due from banks and restricted cash at end of year
|
$ | 1,318,661 | $ | 133,226 | $ | 122,328 | ||||||||||||||
Cash paid during the year for: | ||||||||||||||||||||
Interest | $ | 66,454 | $ | 52,315 | $ | 36,447 | ||||||||||||||
Income taxes | 5,742 | 20,006 | 2,317 | |||||||||||||||||
Non-cash activities:
|
||||||||||||||||||||
Accretion of unrealized loss on securities reclassified to held-to-maturity | 756 | 991 | 2,905 | |||||||||||||||||
Net loan charge-offs | 18,859 | 1,361 | 2,634 | |||||||||||||||||
Transfer of premises and equipment to assets held-for-sale | 3,953 | 2,189 | 11,092 | |||||||||||||||||
Transfer of loans receivable to other real estate owned | 106 | 963 | 992 | |||||||||||||||||
Transfer of loans receivable to loans held for sale | 444,543 | — | — | |||||||||||||||||
Unsettled trades of debt investment securities available-for-sale | (1,404) | — | — | |||||||||||||||||
Unsettled trades of debt investment securities held-to-maturity | (3,000) | — | — | |||||||||||||||||
Unsettled trades of equity securities | 8,142 | — | — |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Supplemental disclosure of cash flow information (continued):
|
||||||||||||||||||||
Acquisition: | ||||||||||||||||||||
Non-cash assets acquired: | ||||||||||||||||||||
Securities | $ | 208,880 | $ | 103,775 | $ | 254,522 | ||||||||||||||
Restricted equity investments | 5,334 | 313 | 16,967 | |||||||||||||||||
Loans | 1,558,480 | 307,778 | 1,517,345 | |||||||||||||||||
Premises and equipment | 9,744 | 3,389 | 19,892 | |||||||||||||||||
Accrued interest receivable | 4,161 | 1,390 | 5,621 | |||||||||||||||||
Bank owned life insurance | 22,440 | 10,460 | 85,238 | |||||||||||||||||
Deferred tax asset | 41 | 3,967 | 57,574 | |||||||||||||||||
Other assets | 10,073 | 1,278 | 6,343 | |||||||||||||||||
Goodwill and other intangible assets, net | 139,501 | 38,875 | 199,838 | |||||||||||||||||
Total non-cash assets acquired | $ | 1,958,654 | $ | 471,225 | $ | 2,163,340 | ||||||||||||||
Liabilities assumed: | ||||||||||||||||||||
Deposits | $ | 1,594,403 | $ | 449,018 | $ | 1,616,073 | ||||||||||||||
Borrowings | 92,618 | — | 127,727 | |||||||||||||||||
Other liabilities | 33,648 | 5,121 | 13,242 | |||||||||||||||||
Total liabilities assumed | $ | 1,720,669 | $ | 454,139 | $ | 1,757,042 | ||||||||||||||
As of December 31, 2020 | Actual |
For capital adequacy
purposes |
To be well-capitalized
under prompt corrective action |
||||||||||||||||||||||||||||||||
Bank: | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | $ | 942,122 | 8.48 | % | $ | 444,648 | 4.00 | % | $ | 555,810 | 5.00 | % | |||||||||||||||||||||||
Common equity Tier 1 (to risk-weighted assets)
|
942,122 | 12.11 | 544,625 | 7.00 |
(1)
|
505,724 | 6.50 | ||||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 942,122 | 12.11 | 661,331 | 8.50 |
(1)
|
622,429 | 8.00 | ||||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | 1,004,480 | 12.91 | 816,938 | 10.50 |
(1)
|
778,036 | 10.00 | ||||||||||||||||||||||||||||
Company: | |||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | $ | 998,273 | 9.44 | % | $ | 423,028 | 4.00 | % | N/A | N/A | |||||||||||||||||||||||||
Common equity Tier 1 (to risk-weighted assets)
|
871,385 | 11.05 | 552,075 | 7.00 |
(1)
|
N/A | N/A | ||||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 998,273 | 12.66 | 670,377 | 8.50 |
(1)
|
N/A | N/A | ||||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | 1,230,370 | 15.60 | 828,113 | 10.50 |
(1)
|
N/A | N/A |
As of December 31, 2019 | Actual |
For capital adequacy
purposes |
To be well-capitalized
under prompt corrective action |
||||||||||||||||||||||||||||||||
Bank: | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | $ | 779,108 | 10.03 | % | $ | 310,798 | 4.00 | % | $ | 388,498 | 5.00 | % | |||||||||||||||||||||||
Common equity Tier 1 (to risk-weighted assets)
|
779,108 | 12.98 | 420,106 | 7.00 |
(1)
|
390,099 | 6.50 | ||||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 779,108 | 12.98 | 510,129 | 8.50 |
(1)
|
480,121 | 8.00 | ||||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | 797,339 | 13.29 | 630,159 | 10.50 |
(1)
|
600,152 | 10.00 | ||||||||||||||||||||||||||||
Company: | |||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | $ | 791,746 | 10.17 | % | $ | 311,289 | 4.00 | % | N/A | N/A | |||||||||||||||||||||||||
Common equity Tier 1 (to risk-weighted assets)
|
729,095 | 12.14 | 420,273 | 7.00 |
(1)
|
N/A | N/A | ||||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 791,746 | 13.19 | 510,331 | 8.50 |
(1)
|
N/A | N/A | ||||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | 844,977 | 14.07 | 630,409 | 10.50 |
(1)
|
N/A | N/A |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in thousands) | |||||||||||||||||
Data processing fees | $ | 3,758 | $ | 2,514 | $ | 6,017 | |||||||||||
Professional fees | 3,638 | 4,239 | 4,414 | ||||||||||||||
Employee severance payments | 7,727 | 2,942 | 15,660 | ||||||||||||||
Other/miscellaneous fees | 824 | 808 | 820 | ||||||||||||||
Merger related expenses | $ | 15,947 | $ | 10,503 | $ | 26,911 |
At January 1, 2020 | |||||||||||||||||
Estimated
Fair Value |
|||||||||||||||||
Total purchase price: | $ | 197,050 | |||||||||||||||
Assets acquired: | |||||||||||||||||
Cash and cash equivalents | $ | 51,102 | |||||||||||||||
Securities | 64,381 | ||||||||||||||||
Loans | 940,072 | ||||||||||||||||
Accrued interest receivable | 2,382 | ||||||||||||||||
Bank owned life insurance | 22,440 | ||||||||||||||||
Deferred tax assets, net | 3,158 | ||||||||||||||||
Other assets | 15,956 | ||||||||||||||||
Core deposit intangible | 12,130 | ||||||||||||||||
Total assets acquired | 1,111,621 | ||||||||||||||||
Liabilities assumed: | |||||||||||||||||
Deposits | (941,750) | ||||||||||||||||
Other liabilities | (59,026) | ||||||||||||||||
Total liabilities assumed | (1,000,776) | ||||||||||||||||
Net assets acquired | $ | 110,845 | |||||||||||||||
Goodwill recorded in the merger | $ | 86,205 |
At January 1, 2020 | |||||||||||||||||
Estimated
Fair Value |
|||||||||||||||||
Total purchase price: | $ | 112,836 | |||||||||||||||
Assets acquired: | |||||||||||||||||
Cash and cash equivalents | $ | 20,799 | |||||||||||||||
Securities | 144,499 | ||||||||||||||||
Loans | 618,408 | ||||||||||||||||
Accrued interest receivable | 1,779 | ||||||||||||||||
Deferred tax assets, net | (3,117) | ||||||||||||||||
Other assets | 9,195 | ||||||||||||||||
Core deposit intangible | 2,117 | ||||||||||||||||
Total assets acquired | 793,680 | ||||||||||||||||
Liabilities assumed: | |||||||||||||||||
Deposits | (652,653) | ||||||||||||||||
Other liabilities | (67,240) | ||||||||||||||||
Total liabilities assumed | (719,893) | ||||||||||||||||
Net assets acquired | $ | 73,787 | |||||||||||||||
Goodwill recorded in the merger | $ | 39,049 |
At January 31, 2019 | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Total Purchase Price: | $ | 76,834 | |||||||||||||||
Assets acquired: | |||||||||||||||||
Cash and cash equivalents | $ | 59,748 | |||||||||||||||
Securities | 103,775 | ||||||||||||||||
Loans | 307,300 | ||||||||||||||||
Accrued interest receivable | 1,390 | ||||||||||||||||
Bank owned life insurance | 10,460 | ||||||||||||||||
Deferred tax assets, net | 4,101 | ||||||||||||||||
Other assets | 4,980 | ||||||||||||||||
Core deposit intangible | 2,662 | ||||||||||||||||
Total assets acquired | 494,416 | ||||||||||||||||
Liabilities assumed: | |||||||||||||||||
Deposits | (449,018) | ||||||||||||||||
Other liabilities | (5,210) | ||||||||||||||||
Total liabilities assumed | (454,228) | ||||||||||||||||
Net assets acquired | $ | 40,188 | |||||||||||||||
Goodwill recorded in the merger | $ | 36,646 |
At January 31, 2018 | ||||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||
Total Purchase Price: | $ | 474,930 | ||||||||||||||||||
Assets acquired: | ||||||||||||||||||||
Cash and cash equivalents | $ | 68,632 | ||||||||||||||||||
Securities | 254,522 | |||||||||||||||||||
Loans | 1,517,345 | |||||||||||||||||||
Accrued interest receivable | 5,621 | |||||||||||||||||||
Bank owned life insurance | 85,238 | |||||||||||||||||||
Deferred tax assets, net | 57,597 | |||||||||||||||||||
Other assets | 43,202 | |||||||||||||||||||
Core deposit intangible | 11,897 | |||||||||||||||||||
Total assets acquired | 2,044,054 | |||||||||||||||||||
Liabilities assumed: | ||||||||||||||||||||
Deposits | (1,616,073) | |||||||||||||||||||
Borrowings | (127,727) | |||||||||||||||||||
Other liabilities | (13,242) | |||||||||||||||||||
Total liabilities assumed | (1,757,042) | |||||||||||||||||||
Net assets acquired | $ | 287,012 | ||||||||||||||||||
Goodwill recorded in the merger | $ | 187,918 |
Two River Actual from January 1, 2020 to December 31, 2020 | Country Bank Actual from January 1, 2020 to December 31, 2020 | Capital Bank Actual from January 31, 2019 to December 31, 2019 | Sun Actual from January 31, 2018 to December 31, 2018 |
Pro forma
Year ended December 31, 2019 |
Pro forma
Year ended December 31, 2018 |
||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 41,978 | $ | 27,411 | $ | 17,090 | $ | 63,889 | $ | 329,327 | $ | 337,118 | |||||||||||||||||||||||||||||||||||
Credit loss expense | 6,117 | 4,481 | 385 | 1,215 | 2,686 | 4,545 | |||||||||||||||||||||||||||||||||||||||||
Non-interest income | 2,688 | 45 | 1,456 | 7,961 | 47,484 | 43,677 | |||||||||||||||||||||||||||||||||||||||||
Non-interest expense | 27,431 | 17,993 | 12,482 | 35,184 | 240,913 | 258,072 | |||||||||||||||||||||||||||||||||||||||||
Provision for income taxes
|
2,686 | 1,204 | 1,193 | 7,090 | 23,870 | 21,098 | |||||||||||||||||||||||||||||||||||||||||
Net income | $ | 8,432 | $ | 3,778 | $ | 4,486 | $ | 28,361 | $ | 109,342 | $ | 97,080 | |||||||||||||||||||||||||||||||||||
Fully diluted earnings per share | $ | 1.79 | $ | 1.56 |
For the Year Ended December 31, | Amortization Expense | |||||||
2021 | $ | 5,452 | ||||||
2022 | 4,718 | |||||||
2023 | 3,984 | |||||||
2024 | 3,250 | |||||||
2025 | 2,516 | |||||||
Thereafter | 3,748 | |||||||
Total | $ | 23,668 |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Estimated
Fair Value |
Allowance for Credit Losses | ||||||||||||||||||||||||||||
At December 31, 2020 | ||||||||||||||||||||||||||||||||
Debt securities available-for-sale: | ||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||
U.S. government and agency obligations
|
$ | 173,790 | $ | 3,152 | $ | (2) | $ | 176,940 | $ | — | ||||||||||||||||||||||
Collateralized loan obligations | 6,174 | — | (4) | 6,170 | — | |||||||||||||||||||||||||||
Total investment securities | 179,964 | 3,152 | (6) | 183,110 | — | |||||||||||||||||||||||||||
Mortgage-backed securities - FNMA | 190 | 2 | — | 192 | — | |||||||||||||||||||||||||||
Total debt securities available-for-sale | $ | 180,154 | $ | 3,154 | $ | (6) | $ | 183,302 | $ | — | ||||||||||||||||||||||
Debt securities held-to-maturity: | ||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||
State and municipal obligations | $ | 238,405 | $ | 11,500 | $ | (231) | $ | 249,674 | $ | (48) | ||||||||||||||||||||||
Corporate debt securities | 72,305 | 1,615 | (2,652) | 71,268 | (1,550) | |||||||||||||||||||||||||||
Total investment securities | 310,710 | 13,115 | (2,883) | 320,942 | (1,598) | |||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||
FHLMC | 232,942 | 5,383 | (124) | 238,201 | — | |||||||||||||||||||||||||||
FNMA | 293,615 | 7,640 | (147) | 301,108 | — | |||||||||||||||||||||||||||
GNMA | 67,334 | 2,014 | (12) | 69,336 | — | |||||||||||||||||||||||||||
SBA | 5,392 | — | (60) | 5,332 | — | |||||||||||||||||||||||||||
CMO | 32,321 | 1,226 | — | 33,547 | (117) | |||||||||||||||||||||||||||
Total mortgage-backed securities | 631,604 | 16,263 | (343) | 647,524 | (117) | |||||||||||||||||||||||||||
Total debt securities held-to-maturity | $ | 942,314 | $ | 29,378 | $ | (3,226) | $ | 968,466 | $ | (1,715) | ||||||||||||||||||||||
Total debt securities | $ | 1,122,468 | $ | 32,532 | $ | (3,232) | $ | 1,151,768 | $ | (1,715) | ||||||||||||||||||||||
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Estimated
Fair Value |
|||||||||||||||||||||||
At December 31, 2019 | ||||||||||||||||||||||||||
Debt securities available-for-sale: | ||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
U.S. government and agency obligations | $ | 149,120 | $ | 1,408 | $ | (93) | $ | 150,435 | ||||||||||||||||||
State and municipal obligations | 25 | — | — | 25 | ||||||||||||||||||||||
Total investment securities | 149,145 | 1,408 | (93) | 150,460 | ||||||||||||||||||||||
Mortgage-backed securities - FNMA | 495 | 5 | — | 500 | ||||||||||||||||||||||
Total debt securities available-for-sale | $ | 149,640 | $ | 1,413 | $ | (93) | $ | 150,960 | ||||||||||||||||||
Debt securities held-to-maturity: | ||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
U.S. government and agency obligations | $ | 4,984 | $ | 14 | $ | — | $ | 4,998 | ||||||||||||||||||
State and municipal obligations | 124,430 | 1,537 | (208) | 125,759 | ||||||||||||||||||||||
Corporate debt securities | 79,547 | 833 | (2,421) | 77,959 | ||||||||||||||||||||||
Total investment securities | 208,961 | 2,384 | (2,629) | 208,716 | ||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
FHLMC | 206,985 | 2,221 | (524) | 208,682 | ||||||||||||||||||||||
FNMA | 244,428 | 2,680 | (493) | 246,615 | ||||||||||||||||||||||
GNMA | 110,661 | 939 | (212) | 111,388 | ||||||||||||||||||||||
SBA | 1,940 | — | (51) | 1,889 | ||||||||||||||||||||||
Total mortgage-backed securities | 564,014 | 5,840 | (1,280) | 568,574 | ||||||||||||||||||||||
Total debt securities held-to-maturity | $ | 772,975 | $ | 8,224 | $ | (3,909) | $ | 777,290 | ||||||||||||||||||
Total debt securities | $ | 922,615 | $ | 9,637 | $ | (4,002) | $ | 928,250 |
Investment Securities | Mortgage-backed Securities | ||||||||||
Allowance for credit losses | |||||||||||
Beginning balance | $ | — | $ | — | |||||||
Impact of CECL adoption | (1,268) | — | |||||||||
Provision for credit loss expense | (330) | (117) | |||||||||
Total ending allowance balance | $ | (1,598) | $ | (117) |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Amortized cost | $ | 942,314 | $ | 772,975 | ||||||||||
Net loss on date of transfer from available-for-sale | (13,347) | (13,347) | ||||||||||||
Allowance for credit loss | (1,715) | — | ||||||||||||
Accretion of net unrealized loss on securities reclassified as held-to-maturity | 10,001 | 9,245 | ||||||||||||
Carrying value | $ | 937,253 | $ | 768,873 |
December 31, 2020 |
Amortized
Cost |
Estimated
Fair Value |
||||||||||||
Less than one year | $ | 97,822 | $ | 98,394 | ||||||||||
Due after one year through five years | 195,949 | 201,798 | ||||||||||||
Due after five years through ten years | 93,596 | 92,120 | ||||||||||||
Due after ten years | 103,307 | 111,740 | ||||||||||||
Total investment securities | $ | 490,674 | $ | 504,052 |
As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||||
Estimated
Fair Value |
Unrealized
Losses |
Estimated
Fair Value |
Unrealized
Losses |
Estimated
Fair Value |
Unrealized
Losses |
|||||||||||||||||||||||||||||||||
Debt securities available-for-sale: | ||||||||||||||||||||||||||||||||||||||
Investment securities - U.S. government and agency obligations
|
$ | 17,029 | $ | (2) | $ | — | $ | — | $ | 17,029 | $ | (2) | ||||||||||||||||||||||||||
Collateralized loan obligations | 4,766 | (4) | — | — | 4,766 | (4) | ||||||||||||||||||||||||||||||||
Total debt securities available-for-sale | 21,795 | (6) | — | — | 21,795 | (6) | ||||||||||||||||||||||||||||||||
Debt securities held-to-maturity: | ||||||||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||
State and municipal obligations | 2,823 | (23) | 7,509 | (208) | 10,332 | (231) | ||||||||||||||||||||||||||||||||
Corporate debt securities | 10,192 | (255) | 35,935 | (2,397) | 46,127 | (2,652) | ||||||||||||||||||||||||||||||||
Total investment securities | 13,015 | (278) | 43,444 | (2,605) | 56,459 | (2,883) | ||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
FHLMC | 24,661 | (117) | 669 | (7) | 25,330 | (124) | ||||||||||||||||||||||||||||||||
FNMA | 39,365 | (128) | 939 | (19) | 40,304 | (147) | ||||||||||||||||||||||||||||||||
GNMA | 5,856 | (11) | 207 | (1) | 6,063 | (12) | ||||||||||||||||||||||||||||||||
SBA | 3,626 | (12) | 1,706 | (48) | 5,332 | (60) | ||||||||||||||||||||||||||||||||
Total mortgage-backed securities | 73,508 | (268) | 3,521 | (75) | 77,029 | (343) | ||||||||||||||||||||||||||||||||
Total debt securities held-to-maturity | 86,523 | (546) | 46,965 | (2,680) | 133,488 | (3,226) | ||||||||||||||||||||||||||||||||
Total debt securities | $ | 108,318 | $ | (552) | $ | 46,965 | $ | (2,680) | $ | 155,283 | $ | (3,232) | ||||||||||||||||||||||||||
As of December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||||
Estimated
Fair Value |
Unrealized
Losses |
Estimated
Fair Value |
Unrealized
Losses |
Estimated
Fair Value |
Unrealized
Losses |
|||||||||||||||||||||||||||||||||
Debt securities available-for-sale: | ||||||||||||||||||||||||||||||||||||||
Investment securities - U.S. government and agency obligations
|
$ | 25,021 | $ | (54) | $ | 22,451 | $ | (39) | $ | 47,472 | $ | (93) | ||||||||||||||||||||||||||
Total debt securities available-for-sale | 25,021 | (54) | 22,451 | (39) | 47,472 | (93) | ||||||||||||||||||||||||||||||||
Debt securities held-to-maturity: | ||||||||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||
State and municipal obligations | 7,308 | (58) | 14,531 | (150) | 21,839 | (208) | ||||||||||||||||||||||||||||||||
Corporate debt securities | 9,727 | (213) | 37,628 | (2,208) | 47,355 | (2,421) | ||||||||||||||||||||||||||||||||
Total investment securities | 17,035 | (271) | 52,159 | (2,358) | 69,194 | (2,629) | ||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
FHLMC | 6,329 | (29) | 38,641 | (495) | 44,970 | (524) | ||||||||||||||||||||||||||||||||
FNMA | 13,682 | (59) | 38,568 | (434) | 52,250 | (493) | ||||||||||||||||||||||||||||||||
GNMA | 30,268 | (93) | 19,828 | (119) | 50,096 | (212) | ||||||||||||||||||||||||||||||||
SBA | — | — | 1,889 | (51) | 1,889 | (51) | ||||||||||||||||||||||||||||||||
Total mortgage-backed securities | 50,279 | (181) | 98,926 | (1,099) | 149,205 | (1,280) | ||||||||||||||||||||||||||||||||
Total debt securities held-to-maturity | 67,314 | (452) | 151,085 | (3,457) | 218,399 | (3,909) | ||||||||||||||||||||||||||||||||
Total debt securities | $ | 92,335 | $ | (506) | $ | 173,536 | $ | (3,496) | $ | 265,871 | $ | (4,002) |
As of December 31, 2020 | ||||||||||||||||||||
Security Description |
Amortized
Cost |
Estimated
Fair Value |
Credit Rating
Moody’s/S&P |
|||||||||||||||||
Chase Capital | $ | 10,000 | $ | 9,479 | Baa1/BBB- | |||||||||||||||
Wells Fargo Capital | 5,000 | 4,702 | A1/BBB- | |||||||||||||||||
Huntington Capital | 5,000 | 4,546 | Baa2/BB+ | |||||||||||||||||
Keycorp Capital | 5,000 | 4,647 | Baa2/BB+ | |||||||||||||||||
PNC Capital | 5,000 | 4,743 | Baa1/BBB- | |||||||||||||||||
State Street Capital | 3,332 | 3,147 | A3/BBB | |||||||||||||||||
SunTrust Capital | 5,000 | 4,671 | Not Rated/BBB- | |||||||||||||||||
Total | $ | 38,332 | $ | 35,935 |
AAA | AA | A | BBB | BB | Total | ||||||||||||||||||||||||||||||
As of December 31, 2020 | |||||||||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||
State and municipal obligations | $ | 34,091 | $ | 130,218 | $ | 59,272 | $ | 14,824 | $ | — | $ | 238,405 | |||||||||||||||||||||||
Corporate debt securities | — | 496 | 11,978 | 48,498 | 11,333 | 72,305 | |||||||||||||||||||||||||||||
Total investment securities | 34,091 | 130,714 | 71,250 | 63,322 | 11,333 | 310,710 | |||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
CMO | 11,118 | 21,203 | — | — | — | 32,321 | |||||||||||||||||||||||||||||
Total mortgage-backed securities | 11,118 | 21,203 | — | — | — | 32,321 | |||||||||||||||||||||||||||||
Total debt securities held-to-maturity | $ | 45,209 | $ | 151,917 | $ | 71,250 | $ | 63,322 | $ | 11,333 | $ | 343,031 |
For the year ended | |||||||||||
December 31, 2020 | |||||||||||
Net gain on equity investments | $ | 21,214 | |||||||||
Less: Net gains recognized on equity securities sold | 5,401 | ||||||||||
Unrealized gain recognized on equity securities still held | $ | 15,813 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Commercial: | ||||||||||||||
Commercial and industrial (1)
|
$ | 470,656 | $ | 396,434 | ||||||||||
Commercial real estate - owner occupied | 1,145,065 | 792,653 | ||||||||||||
Commercial real estate - investor | 3,491,464 | 2,296,410 | ||||||||||||
Total commercial | 5,107,185 | 3,485,497 | ||||||||||||
Consumer: | ||||||||||||||
Residential real estate | 2,309,459 | 2,321,157 | ||||||||||||
Home equity loans and lines | 285,016 | 318,576 | ||||||||||||
Other consumer | 54,446 | 89,422 | ||||||||||||
Total consumer | 2,648,921 | 2,729,155 | ||||||||||||
Total loans receivable | 7,756,106 | 6,214,652 | ||||||||||||
Deferred origination costs, net of fees | 9,486 | 9,880 | ||||||||||||
Allowance for credit losses | (60,735) | (16,852) | ||||||||||||
Total loans receivable, net | $ | 7,704,857 | $ | 6,207,680 |
2020 | 2019 | 2018 | 2017 | 2016 | 2015 and prior | Revolving lines of credit | Total | |||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 137,262 | $ | 40,737 | $ | 27,967 | $ | 18,845 | $ | 33,568 | $ | 59,339 | $ | 134,140 | $ | 451,858 | ||||||||||||||||||||||||||||||||||
Special Mention | 150 | 583 | 826 | 1,422 | 907 | 118 | 1,429 | 5,435 | ||||||||||||||||||||||||||||||||||||||||||
Substandard | 581 | 1,284 | 1,243 | 809 | 439 | 1,706 | 7,301 | 13,363 | ||||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 137,993 | 42,604 | 30,036 | 21,076 | 34,914 | 61,163 | 142,870 | 470,656 | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 96,888 | 114,506 | 122,962 | 124,050 | 104,264 | 428,423 | 18,932 | 1,010,025 | ||||||||||||||||||||||||||||||||||||||||||
Special Mention | — | 3,512 | 8,240 | 1,023 | 17,115 | 17,811 | 439 | 48,140 | ||||||||||||||||||||||||||||||||||||||||||
Substandard | — | 34,670 | 9,001 | 3,404 | 3,677 | 35,509 | 639 | 86,900 | ||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate - owner occupied | 96,888 | 152,688 | 140,203 | 128,477 | 125,056 | 481,743 | 20,010 | 1,145,065 | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - investor | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 635,930 | $ | 628,435 | $ | 317,104 | $ | 426,268 | $ | 281,876 | $ | 812,062 | $ | 194,913 | $ | 3,296,588 | ||||||||||||||||||||||||||||||||||
Special Mention | — | 15,979 | 17,113 | 15,225 | 4,234 | 55,872 | 149 | 108,572 | ||||||||||||||||||||||||||||||||||||||||||
Substandard | 4,311 | 9,217 | 1,931 | 17,222 | 11,474 | 36,326 | 5,823 | 86,304 | ||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate - investor | 640,241 | 653,631 | 336,148 | 458,715 | 297,584 | 904,260 | 200,885 | 3,491,464 | ||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate (1)
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 595,982 | $ | 437,593 | $ | 226,435 | $ | 166,773 | $ | 146,237 | $ | 729,037 | $ | — | $ | 2,302,057 | ||||||||||||||||||||||||||||||||||
Special Mention | — | 532 | — | — | 446 | 2,186 | — | 3,164 | ||||||||||||||||||||||||||||||||||||||||||
Substandard | 570 | — | 1,489 | 221 | — | 1,958 | — | 4,238 | ||||||||||||||||||||||||||||||||||||||||||
Total residential real estate | 596,552 | 438,125 | 227,924 | 166,994 | 146,683 | 733,181 | — | 2,309,459 | ||||||||||||||||||||||||||||||||||||||||||
Consumer (1)
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 24,954 | 26,659 | 83,296 | 25,469 | 16,565 | 156,276 | 2,145 | 335,364 | ||||||||||||||||||||||||||||||||||||||||||
Special Mention | — | — | — | — | 150 | 382 | — | 532 | ||||||||||||||||||||||||||||||||||||||||||
Substandard | — | — | — | — | — | 3,566 | — | 3,566 | ||||||||||||||||||||||||||||||||||||||||||
Total consumer | 24,954 | 26,659 | 83,296 | 25,469 | 16,715 | 160,224 | 2,145 | 339,462 | ||||||||||||||||||||||||||||||||||||||||||
Total loans receivable | $ | 1,496,628 | $ | 1,313,707 | $ | 817,607 | $ | 800,731 | $ | 620,952 | $ | 2,340,571 | $ | 365,910 | $ | 7,756,106 |
Commercial
and Industrial |
Commercial Real Estate - Owner Occupied | Commercial Real Estate - Investor |
Residential
Real Estate |
Consumer | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses on loans | ||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 1,458 | $ | 2,893 | $ | 9,883 | $ | 2,002 | $ | 591 | $ | 25 | $ | 16,852 | ||||||||||||||||||||||||||||||
Impact of CECL adoption | 2,416 | (1,109) | (5,395) | 3,833 | 2,981 | (25) | 2,701 | |||||||||||||||||||||||||||||||||||||
Initial allowance for credit losses on PCD loans | 1,221 | 26 | 260 | 109 | 1,023 | — | 2,639 | |||||||||||||||||||||||||||||||||||||
Credit loss expense (benefit) (1)
|
1,039 | 15,007 | 34,935 | 8,191 | (1,770) | — | 57,402 | |||||||||||||||||||||||||||||||||||||
Charge-offs (1)
|
(890) | (1,769) | (13,081) | (3,200) | (1,244) | — | (20,184) | |||||||||||||||||||||||||||||||||||||
Recoveries | 146 | 6 | 101 | 883 | 189 | — | 1,325 | |||||||||||||||||||||||||||||||||||||
Balance at end of year | $ | 5,390 | $ | 15,054 | $ | 26,703 | $ | 11,818 | $ | 1,770 | $ | — | $ | 60,735 | ||||||||||||||||||||||||||||||
For the Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses on loans | ||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 1,609 | $ | 2,277 | $ | 8,770 | $ | 2,413 | $ | 486 | $ | 1,022 | $ | 16,577 | ||||||||||||||||||||||||||||||
Credit loss (benefit) expense | (311) | 947 | 638 | 792 | 567 | (997) | 1,636 | |||||||||||||||||||||||||||||||||||||
Charge-offs | — | (663) | (236) | (1,299) | (606) | — | (2,804) | |||||||||||||||||||||||||||||||||||||
Recoveries | 160 | 332 | 711 | 96 | 144 | — | 1,443 | |||||||||||||||||||||||||||||||||||||
Balance at end of year | $ | 1,458 | $ | 2,893 | $ | 9,883 | $ | 2,002 | $ | 591 | $ | 25 | $ | 16,852 | ||||||||||||||||||||||||||||||
Commercial
and Industrial |
Commercial Real Estate - Owner Occupied | Commercial Real Estate - Investor | Residential Real Estate | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||
At December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||
Ending allowance balance attributed to loans: | ||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 474 | $ | — | $ | — | $ | 2 | $ | — | $ | 476 | ||||||||||||||||||||||||||||||
Collectively evaluated for impairment | 1,458 | 2,419 | 9,883 | 2,002 | 589 | 25 | 16,376 | |||||||||||||||||||||||||||||||||||||
Total ending allowance balance | $ | 1,458 | $ | 2,893 | $ | 9,883 | $ | 2,002 | $ | 591 | $ | 25 | $ | 16,852 | ||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 243 | $ | 6,163 | $ | 5,584 | $ | 11,009 | $ | 3,511 | $ | — | $ | 26,510 | ||||||||||||||||||||||||||||||
Loans collectively evaluated for impairment | 395,848 | 785,778 | 2,279,114 | 2,309,812 | 404,325 | — | 6,174,877 | |||||||||||||||||||||||||||||||||||||
Total ending loan balance | $ | 396,091 | $ | 791,941 | $ | 2,284,698 | $ | 2,320,821 | $ | 407,836 | $ | — | $ | 6,201,387 |
Unpaid
Principal Balance |
Recorded
Investment |
Allowance for
Loan Losses Allocated |
||||||||||||||||||
At December 31, 2019 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | 265 | $ | 243 | $ | — | ||||||||||||||
Commercial real estate – owner occupied | 4,062 | 3,968 | — | |||||||||||||||||
Commercial real estate – investor | 6,665 | 5,584 | — | |||||||||||||||||
Residential real estate | 11,009 | 11,009 | — | |||||||||||||||||
Consumer | 3,734 | 3,509 | — | |||||||||||||||||
Total with no related allowance recorded | $ | 25,735 | $ | 24,313 | $ | — | ||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | ||||||||||||||
Commercial real estate – owner occupied | 2,376 | 2,195 | 474 | |||||||||||||||||
Commercial real estate – investor | — | — | — | |||||||||||||||||
Residential real estate | — | — | — | |||||||||||||||||
Consumer | 2 | 2 | 2 | |||||||||||||||||
Total with an allowance recorded | $ | 2,378 | $ | 2,197 | $ | 476 |
For the Year Ended December 31, 2019 | ||||||||||||||||||||||||||
Average
Recorded Investment |
Interest
Income Recognized |
|||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial and industrial | $ | 523 | $ | 5 | ||||||||||||||||||||||
Commercial real estate – owner occupied | 4,171 | 179 | ||||||||||||||||||||||||
Commercial real estate – investor | 9,012 | 222 | ||||||||||||||||||||||||
Residential real estate | 10,275 | 548 | ||||||||||||||||||||||||
Consumer | 3,275 | 178 | ||||||||||||||||||||||||
Total with no related allowance recorded | $ | 27,256 | $ | 1,132 | ||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | ||||||||||||||||||||||
Commercial real estate – owner occupied | 2,173 | 138 | ||||||||||||||||||||||||
Commercial real estate – investor | — | — | ||||||||||||||||||||||||
Residential real estate | — | — | ||||||||||||||||||||||||
Consumer | — | — | ||||||||||||||||||||||||
Total with an allowance recorded | $ | 2,173 | $ | 138 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Commercial and industrial | $ | 1,908 | $ | 207 | ||||||||||
Commercial real estate – owner occupied | 13,751 | 4,811 | ||||||||||||
Commercial real estate – investor | 18,287 | 2,917 | ||||||||||||
Residential real estate | 8,671 | 7,181 | ||||||||||||
Consumer | 4,246 | 2,733 | ||||||||||||
Total non-accrual loans | $ | 46,863 | $ | 17,849 |
30-59
Days Past Due |
60-89
Days Past Due |
90 Days or Greater
Past Due |
Total
Past Due |
Loans Not
Past Due |
Total | |||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 3,050 | $ | 628 | $ | 327 | $ | 4,005 | $ | 466,651 | $ | 470,656 | ||||||||||||||||||||||||||
Commercial real estate – owner occupied | 1,015 | — | 7,871 | 8,886 | 1,136,179 | 1,145,065 | ||||||||||||||||||||||||||||||||
Commercial real estate – investor | 8,897 | 3,233 | 11,122 | 23,252 | 3,468,212 | 3,491,464 | ||||||||||||||||||||||||||||||||
Residential real estate | 15,156 | 3,164 | 4,238 | 22,558 | 2,286,901 | 2,309,459 | ||||||||||||||||||||||||||||||||
Consumer | 978 | 533 | 3,568 | 5,079 | 334,383 | 339,462 | ||||||||||||||||||||||||||||||||
Total loans receivable | $ | 29,096 | $ | 7,558 | $ | 27,126 | $ | 63,780 | $ | 7,692,326 | $ | 7,756,106 | ||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 100 | $ | — | $ | 207 | $ | 307 | $ | 395,784 | $ | 396,091 | ||||||||||||||||||||||||||
Commercial real estate – owner occupied | 1,541 | 1,203 | 1,040 | 3,784 | 788,157 | 791,941 | ||||||||||||||||||||||||||||||||
Commercial real estate – investor | 381 | 938 | 2,792 | 4,111 | 2,280,587 | 2,284,698 | ||||||||||||||||||||||||||||||||
Residential real estate | 8,161 | 3,487 | 2,859 | 14,507 | 2,306,314 | 2,320,821 | ||||||||||||||||||||||||||||||||
Consumer | 1,048 | 491 | 2,388 | 3,927 | 403,909 | 407,836 | ||||||||||||||||||||||||||||||||
Total loans receivable | $ | 11,231 | $ | 6,119 | $ | 9,286 | $ | 26,636 | $ | 6,174,751 | $ | 6,201,387 |
Number
of Loans |
Pre-modification
Recorded Investment |
Post-modification
Recorded Investment |
||||||||||||||||||
For the Year Ended December 31, 2020 | ||||||||||||||||||||
Troubled debt restructurings: | ||||||||||||||||||||
Commercial real estate – owner occupied | 1 | $ | 1,112 | $ | 1,143 | |||||||||||||||
Commercial real estate – investor | 2 | 1,035 | 1,116 | |||||||||||||||||
Residential real estate | 6 | 1,018 | 1,065 | |||||||||||||||||
Consumer | 6 | 1,035 | 668 | |||||||||||||||||
Number of Loans | Recorded Investment | |||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||
Which subsequently defaulted: | None | None | ||||||||||||||||||
Number
of Loans |
Pre-modification
Recorded Investment |
Post-modification
Recorded Investment |
||||||||||||||||||
For the Year Ended December 31, 2019 | ||||||||||||||||||||
Troubled debt restructurings: | ||||||||||||||||||||
Commercial real estate – owner occupied | 1 | $ | 154 | $ | 198 | |||||||||||||||
Commercial real estate – investor | 1 | 272 | 393 | |||||||||||||||||
Residential real estate | 6 | 1,036 | 1,091 | |||||||||||||||||
Consumer | 7 | 663 | 683 | |||||||||||||||||
Number of Loans | Recorded Investment | |||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||
Which subsequently defaulted: | ||||||||||||||||||||
Consumer | 1 | $ | 115 |
Two River | Country Bank | ||||||||||||||||||||||
January 1, 2020 | January 1, 2020 | ||||||||||||||||||||||
Purchase price of loans at acquisition | $ | 26,354 | $ | 24,667 | |||||||||||||||||||
Allowance for credit losses at acquisition | 1,343 | 1,296 | |||||||||||||||||||||
Non-credit discount at acquisition | 3,589 | 5,334 | |||||||||||||||||||||
Par value of acquired loans at acquisition | $ | 31,286 | $ | 31,297 |
For the Year Ended December 31, | ||||||||
2019 | ||||||||
Beginning balance | $ | 3,630 | ||||||
Acquisition | 691 | |||||||
Accretion | (2,613) | |||||||
Reclassification from non-accretable difference | 1,317 | |||||||
Ending balance | $ | 3,025 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Loans receivable | $ | 30,893 | $ | 17,664 | ||||||||||
Debt securities, equity investments and other | 3,169 | 2,827 | ||||||||||||
Mortgage-backed securities | 1,207 | 1,183 | ||||||||||||
Total interest and dividends receivable | $ | 35,269 | $ | 21,674 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Land | $ | 23,109 | $ | 24,446 | ||||||||||
Buildings and improvements | 99,350 | 97,653 | ||||||||||||
Leasehold improvements | 8,640 | 9,274 | ||||||||||||
Furniture and equipment | 31,639 | 25,558 | ||||||||||||
Finance lease | 1,845 | 2,572 | ||||||||||||
Other | 10,270 | 2,764 | ||||||||||||
Total | 174,853 | 162,267 | ||||||||||||
Accumulated depreciation and amortization | (67,759) | (59,576) | ||||||||||||
Total premises and equipment, net | $ | 107,094 | $ | 102,691 |
December 31, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Amount |
Weighted
Average Cost |
Amount |
Weighted
Average Cost |
|||||||||||||||||||||||
Non-interest-bearing accounts | $ | 2,133,195 | — | % | $ | 1,377,396 | — | % | ||||||||||||||||||
Interest-bearing checking accounts | 3,646,866 | 0.49 | 2,539,428 | 0.68 | ||||||||||||||||||||||
Money market deposit accounts | 783,521 | 0.19 | 578,147 | 0.68 | ||||||||||||||||||||||
Savings accounts | 1,491,251 | 0.05 | 898,174 | 0.13 | ||||||||||||||||||||||
Time deposits | 1,372,783 | 1.51 | 935,632 | 1.82 | ||||||||||||||||||||||
Total deposits | $ | 9,427,616 | 0.43 | % | $ | 6,328,777 | 0.62 | % |
For the Year Ended December 31, | Time Deposit Maturities | ||||
2021 | $ | 973,426 | |||
2022 | 265,668 | ||||
2023 | 63,132 | ||||
2024 | 46,321 | ||||
2025 | 15,138 | ||||
Thereafter | 9,098 | ||||
Total | $ | 1,372,783 |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Interest-bearing checking accounts | $ | 19,395 | $ | 16,820 | $ | 9,219 | ||||||||||||||
Money market deposit accounts | 2,902 | 4,919 | 2,818 | |||||||||||||||||
Savings accounts | 2,505 | 1,195 | 990 | |||||||||||||||||
Time deposits | 23,488 | 15,498 | 9,551 | |||||||||||||||||
Total interest expense on deposits | $ | 48,290 | $ | 38,432 | $ | 22,578 |
December 31, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Amount |
Weighted
Average Rate |
Amount |
Weighted
Average Rate |
|||||||||||||||||||||||
FHLB advances | $ | — | — | % | $ | 519,260 | 1.84 | % | ||||||||||||||||||
Securities sold under agreements to repurchase with retail customers | 128,454 | 0.33 | 71,739 | 0.42 | ||||||||||||||||||||||
Other borrowings | 235,471 | 4.58 | 96,801 | 4.64 | ||||||||||||||||||||||
Total borrowed funds | $ | 363,925 | 3.08 | % | $ | 687,800 | 2.09 | % |
FHLB
Advances |
Reverse Repurchase
Agreements |
|||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Average balance | $ | 413,290 | $ | 387,925 | $ | 125,500 | $ | 64,525 | ||||||||||||||||||
Maximum amount outstanding at any month end | 825,824 | 519,260 | 153,810 | 71,739 | ||||||||||||||||||||||
Average interest rate for the year | 1.70 | % | 2.18 | % | 0.45 | % | 0.43 | % | ||||||||||||||||||
Amortized cost of collateral: | ||||||||||||||||||||||||||
Mortgage-backed securities | $ | — | $ | — | $ | 147,445 | $ | 80,436 | ||||||||||||||||||
Estimated fair value of collateral: | ||||||||||||||||||||||||||
Mortgage-backed securities | — | — | 152,679 | 81,365 |
Reverse
Repurchase Agreements |
||||||||||||||
For the Year Ended December 31, | ||||||||||||||
2021 | $ | 128,454 | ||||||||||||
Total | $ | 128,454 |
Type of Debt | Stated Value | Carrying Value | Interest Rate | Maturity | ||||||||||||||||||||||
Subordinated debt | $ | 35,000 | $ | 34,804 | 5.125 | % |
(1)
|
September 30, 2026 | ||||||||||||||||||
Subordinated debt | 125,000 | 122,446 | 5.250 | % |
(2)
|
May 15, 2030 | ||||||||||||||||||||
Subordinated debt | 7,500 | 7,539 | 7.210 | % |
(3)
|
October 1, 2025 | ||||||||||||||||||||
Trust preferred | 5,000 | 5,000 |
3 month LIBOR plus 165 basis points
|
August 1, 2036 | ||||||||||||||||||||||
Trust preferred | 30,000 | 22,944 |
3 month LIBOR plus 135 basis points
|
March 15, 2036 | ||||||||||||||||||||||
Trust preferred | 7,500 | 7,500 |
3 month LIBOR plus 166 basis points
|
November 1, 2036 | ||||||||||||||||||||||
Trust preferred | 10,000 | 7,737 |
3 month LIBOR plus 153 basis points
|
April 19, 2037 | ||||||||||||||||||||||
Trust preferred | 10,000 | 10,000 |
3 month LIBOR plus 175 basis points
|
September 1, 2037 | ||||||||||||||||||||||
Trust preferred | 10,000 | 7,601 |
3 month LIBOR plus 139 basis points
|
October 1, 2037 | ||||||||||||||||||||||
Trust preferred | 10,000 | 7,800 |
3 month LIBOR plus 225 basis points
|
December 15, 2034 | ||||||||||||||||||||||
Finance lease | 2,100 | 2,100 | 5.625 | % | June 30, 2029 | |||||||||||||||||||||
Total | $ | 252,100 | $ | 235,471 |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
FHLB advances | $ | 7,018 | $ | 8,441 | $ | 7,885 | ||||||||||||||
Reverse repurchase agreements | 562 | 276 | 168 | |||||||||||||||||
Other borrowings | 10,787 | 5,674 | 5,521 | |||||||||||||||||
Total interest expense on borrowings | $ | 18,367 | $ | 14,391 | $ | 13,574 |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Current | ||||||||||||||||||||
Federal | $ | 15,731 | $ | 1,991 | $ | 18,030 | ||||||||||||||
State | 6,617 | 740 | 108 | |||||||||||||||||
Total current | 22,348 | 2,731 | 18,138 | |||||||||||||||||
Deferred | ||||||||||||||||||||
Federal | (2,746) | 18,846 | (4,568) | |||||||||||||||||
State | (1,869) | (2,793) | — | |||||||||||||||||
Total deferred | (4,615) | 16,053 | (4,568) | |||||||||||||||||
Total provision for income taxes | $ | 17,733 | $ | 18,784 | $ | 13,570 |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Income before provision for income taxes | $ | 81,042 | $ | 107,358 | $ | 85,502 | ||||||||||||||
Applicable statutory Federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||||
Computed “expected” Federal income tax expense | $ | 17,019 | $ | 22,545 | $ | 17,955 | ||||||||||||||
Increase (decrease) in Federal income tax expense resulting from | ||||||||||||||||||||
State income taxes, net of Federal benefit | 3,751 | 583 | 85 | |||||||||||||||||
Earnings on BOLI | (1,349) | (1,138) | (1,072) | |||||||||||||||||
Tax exempt interest | (1,161) | (665) | (615) | |||||||||||||||||
Merger related expenses | 138 | 297 | 322 | |||||||||||||||||
Stock compensation | (136) | (386) | (758) | |||||||||||||||||
Revaluation of state deferred tax asset | — | (2,205) | — | |||||||||||||||||
Impact of Tax Cuts and Jobs Act (“Tax Reform”) | — | — | (1,854) | |||||||||||||||||
Reclassification of certain tax effect from accumulated other comprehensive income | (204) | (221) | (586) | |||||||||||||||||
Other items, net | (325) | (26) | 93 | |||||||||||||||||
Total provision for income taxes | $ | 17,733 | $ | 18,784 | $ | 13,570 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Deferred tax assets: | ||||||||||||||
Allowance for credit losses on loans and debt securities HTM | $ | 16,168 | $ | 4,107 | ||||||||||
Other reserves | 2,485 | 3,061 | ||||||||||||
Incentive compensation | 2,919 | 1,397 | ||||||||||||
Deferred compensation | 533 | 591 | ||||||||||||
Stock plans | 2,214 | 1,270 | ||||||||||||
Unrealized loss on properties available-for-sale | 2,435 | 1,438 | ||||||||||||
Unrealized loss on securities | 272 | 826 | ||||||||||||
Net operating loss carryforwards related to acquisition | 33,014 | 39,519 | ||||||||||||
Deferred fees on PPP loans | 517 | — | ||||||||||||
Other, net | 195 | 178 | ||||||||||||
Federal and state alternative minimum tax | 3,705 | 4,746 | ||||||||||||
Total gross deferred tax assets | 64,457 | 57,133 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||
Unrealized gain on equity securities | (4,154) | — | ||||||||||||
Premises and equipment | (5,871) | (7,340) | ||||||||||||
Deferred loan and commitment costs, net | (2,968) | (2,379) | ||||||||||||
Purchase accounting adjustments | (602) | 8,475 | ||||||||||||
Investments, discount accretion | (452) | (380) | ||||||||||||
Undistributed REIT income | — | (4,735) | ||||||||||||
Other, net | (783) | (707) | ||||||||||||
Total gross deferred tax liabilities | (14,830) | (7,066) | ||||||||||||
Net deferred tax assets | $ | 49,627 | $ | 50,067 |
2020 | 2019 | 2018 | ||||||||||||||||||
Risk-free interest rate | 1.03 | % | 2.63 | % | 2.65 | % | ||||||||||||||
Expected option life | 7 years | 7 years | 7 years | |||||||||||||||||
Expected volatility | 23 | % | 21 | % | 21 | % | ||||||||||||||
Expected dividend yield | 3.33 | % | 2.70 | % | 2.19 | % | ||||||||||||||
Weighted average fair value of an option share granted during the year | $ | 2.93 | $ | 4.47 | $ | 5.44 | ||||||||||||||
Intrinsic value of options exercised during the year (in thousands) | 2,499 | 2,994 | 8,513 |
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||
Number
of Shares |
Weighted
Average Exercise Price |
Number
of Shares |
Weighted
Average Exercise Price |
Number
of Shares |
Weighted
Average Exercise Price |
|||||||||||||||||||||||||||||||||
Outstanding at beginning of year | 2,424,032 | $ | 19.80 | 2,340,842 | $ | 18.25 | 2,489,314 | $ | 16.91 | |||||||||||||||||||||||||||||
Granted | 699,651 | 20.44 | 461,407 | 25.20 | 135,107 | 27.39 | ||||||||||||||||||||||||||||||||
Assumed in acquisition | — | — | — | — | 491,248 | 21.92 | ||||||||||||||||||||||||||||||||
Exercised | (213,506) | 9.50 | (227,189) | 11.24 | (765,624) | 17.69 | ||||||||||||||||||||||||||||||||
Forfeited | (6,357) | 21.26 | (149,158) | 24.71 | (9,203) | 28.42 | ||||||||||||||||||||||||||||||||
Expired | (64,953) | 22.51 | (1,870) | 29.59 | — | — | ||||||||||||||||||||||||||||||||
Outstanding at end of year | 2,838,867 | $ | 20.67 | 2,424,032 | $ | 19.80 | 2,340,842 | $ | 18.25 | |||||||||||||||||||||||||||||
Options exercisable | 1,596,927 | 1,612,946 | 1,604,576 |
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||||||||
Exercise Prices |
Number
of Options |
Weighted
Average Remaining Contractual Life |
Weighted
Average Exercise Price |
Number
of Options |
Weighted
Average Remaining Contractual Life |
Weighted
Average Exercise Price |
||||||||||||||||||||||||||||||||
9.54 to 14.41
|
397,734 | 1.0 years | $ | 13.41 | 397,734 | 1.0 years | $ | 13.41 | ||||||||||||||||||||||||||||||
14.42 to 19.28
|
743,519 | 3.7 | 16.72 | 696,051 | 3.6 | 16.68 | ||||||||||||||||||||||||||||||||
19.29 to 24.15
|
753,703 | 8.8 | 20.56 | 48,771 | 4.5 | 22.07 | ||||||||||||||||||||||||||||||||
24.16 to 29.01
|
943,911 | 6.5 | 26.93 | 454,371 | 5.4 | 27.62 | ||||||||||||||||||||||||||||||||
2,838,867 | 5.6 years | $ | 20.67 | 1,596,927 | 3.5 years | $ | 19.14 |
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||
Number
of Shares |
Weighted
Average Grant Date Fair Value |
Number
of Shares |
Weighted
Average Grant Date Fair Value |
Number
of Shares |
Weighted
Average Grant Date Fair Value |
|||||||||||||||||||||||||||||||||
Outstanding at beginning of year: | 451,443 | $ | 25.61 | 330,598 | $ | 25.92 | 169,703 | $ | 21.79 | |||||||||||||||||||||||||||||
Granted | 256,649 | 20.38 | 249,651 | 24.80 | 272,668 | 27.52 | ||||||||||||||||||||||||||||||||
Vested | (96,564) | 24.41 | (105,307) | 24.49 | (58,754) | 20.81 | ||||||||||||||||||||||||||||||||
Forfeited | (35,532) | 26.56 | (23,499) | 26.38 | (53,019) | 26.60 | ||||||||||||||||||||||||||||||||
Outstanding at end of year | 575,996 | $ | 23.42 | 451,443 | $ | 25.61 | 330,598 | $ | 25.92 |
December 31, 2020 | |||||
Unused consumer and construction loan lines of credit (primarily floating-rate) | $ | 372,159 | |||
Unused commercial loan lines of credit (primarily floating-rate) | 668,114 | ||||
Other commitments to extend credit: | |||||
Fixed-rate | 234,608 | ||||
Adjustable-rate | 2,750 | ||||
Floating-rate | 130,448 |
December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Weighted average shares outstanding | 60,358 | 50,701 | 47,266 | |||||||||||||||||
Less: Unallocated ESOP shares | (426) | (493) | (435) | |||||||||||||||||
Unallocated incentive award shares and shares held by deferred compensation plan
|
(13) | (42) | (58) | |||||||||||||||||
Average basic shares outstanding | 59,919 | 50,166 | 46,773 | |||||||||||||||||
Add: Effect of dilutive securities: | ||||||||||||||||||||
Incentive awards and shares held by deferred compensation plan | 153 | 580 | 884 | |||||||||||||||||
Average diluted shares outstanding | 60,072 | 50,746 | 47,657 |
Fair Value Measurements at Reporting Date Using: | ||||||||||||||||||||||||||
Total Fair
Value |
Level 1
Inputs |
Level 2
Inputs |
Level 3
Inputs |
|||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Items measured on a recurring basis: | ||||||||||||||||||||||||||
Debt securities available-for-sale | $ | 183,302 | $ | — | $ | 183,302 | $ | — | ||||||||||||||||||
Equity investments | 107,079 | 104,539 | — | 2,540 | ||||||||||||||||||||||
Interest rate swaps asset | 45,289 | — | 45,289 | — | ||||||||||||||||||||||
Interest rate swaps liability | (45,429) | — | (45,429) | — | ||||||||||||||||||||||
Items measured on a non-recurring basis: | ||||||||||||||||||||||||||
Other real estate owned | 106 | — | — | 106 | ||||||||||||||||||||||
Loans measured for impairment based on the fair value of the underlying collateral
|
35,366 | — | — | 35,366 | ||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Items measured on a recurring basis: | ||||||||||||||||||||||||||
Debt securities available-for-sale | $ | 150,960 | $ | — | $ | 150,935 | $ | 25 | ||||||||||||||||||
Equity investments | 10,136 | 10,136 | — | — | ||||||||||||||||||||||
Interest rate swaps asset | 10,141 | — | 10,141 | — | ||||||||||||||||||||||
Interest rate swaps liability | (10,708) | — | (10,708) | — | ||||||||||||||||||||||
Items measured on a non-recurring basis: | ||||||||||||||||||||||||||
Other real estate owned | 264 | — | — | 264 | ||||||||||||||||||||||
Loans measured for impairment based on the fair value of the underlying collateral
|
8,794 | — | — | 8,794 |
For the Year Ended | ||||||||
December 31, 2020 | ||||||||
Beginning balance | $ | 25 | ||||||
Total gains (losses) included in earnings | — | |||||||
Purchases | 2,377 | |||||||
Transfers into Level 3 | — | |||||||
Transfers out of Level 3 | — | |||||||
Maturities | (2,402) | |||||||
Ending balance | $ | — |
Fair Value | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
Balance Sheet Location | 2020 | 2019 | ||||||||||||||||||||||||
Other assets | $ | 45,289 | $ | 10,141 | ||||||||||||||||||||||
Other liabilities | 45,429 | 10,708 |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||
Lease ROU Assets | Classification | |||||||||||||||||||
Operating lease ROU asset | Other assets | $ | 22,555 | $ | 18,682 | |||||||||||||||
Finance lease ROU asset | Premises and equipment, net | 1,694 | 1,534 | |||||||||||||||||
Total lease ROU asset | $ | 24,249 | $ | 20,216 | ||||||||||||||||
Lease Liabilities | ||||||||||||||||||||
Operating lease liability | Other liabilities | $ | 22,990 | $ | 18,893 | |||||||||||||||
Finance lease liability | Other borrowings | 2,100 | 1,953 | |||||||||||||||||
Total lease liability | $ | 25,090 | $ | 20,846 |
December 31, 2020 | December 31, 2019 | |||||||||||||
Weighted-Average Remaining Lease Term | ||||||||||||||
Operating leases | 7.77 years | 9.69 years | ||||||||||||
Finance lease | 8.59 years | 9.60 years | ||||||||||||
Weighted-Average Discount Rate | ||||||||||||||
Operating leases | 3.01 | % | 3.45 | % | ||||||||||
Finance lease | 5.63 | % | 5.63 | % |
For Year Ended December 31, 2020 | For Year Ended December 31, 2019 | |||||||||||||||||||
Lease Expense | ||||||||||||||||||||
Operating lease expense | $ | 6,438 | $ | 3,904 | ||||||||||||||||
Finance lease expense: | ||||||||||||||||||||
Amortization of ROU assets | 174 | 274 | ||||||||||||||||||
Interest on lease liabilities(1)
|
110 | 174 | ||||||||||||||||||
Total | $ | 6,722 | $ | 4,352 | ||||||||||||||||
Other Information | ||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
Operating cash flows from operating leases | $ | 6,298 | $ | 3,625 | ||||||||||||||||
Operating cash flows from finance leases | 110 | 174 | ||||||||||||||||||
Financing cash flows from finance leases | 187 | 263 |
Finance Lease | Operating Leases | |||||||||||||
For the Twelve Months Ended December 31, | ||||||||||||||
2021 | $ | 307 | $ | 5,725 | ||||||||||
2022 | 307 | 4,713 | ||||||||||||
2023 | 307 | 3,285 | ||||||||||||
2024 | 307 | 2,723 | ||||||||||||
2025 | 307 | 2,281 | ||||||||||||
Thereafter | 1,105 | 7,592 | ||||||||||||
Total | 2,640 | 26,319 | ||||||||||||
Less: Imputed interest | (540) | (3,329) | ||||||||||||
Total lease liabilities | $ | 2,100 | $ | 22,990 |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Assets: | ||||||||||||||
Cash and due from banks
|
$ | 7,187 | $ | 5,442 | ||||||||||
Advances to Bank | 101,304 | 27,878 | ||||||||||||
Investment securities
|
93,207 | 1,000 | ||||||||||||
ESOP loan receivable
|
8,071 | 9,271 | ||||||||||||
Investment in subsidiaries
|
1,502,867 | 1,206,479 | ||||||||||||
Other assets
|
10,180 | 327 | ||||||||||||
Total assets | $ | 1,722,816 | $ | 1,250,397 | ||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||
Borrowings
|
$ | 233,371 | $ | 94,848 | ||||||||||
Other liabilities
|
5,315 | 2,430 | ||||||||||||
Stockholders’ equity
|
1,484,130 | 1,153,119 | ||||||||||||
Total liabilities and stockholders’ equity
|
$ | 1,722,816 | $ | 1,250,397 |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Dividend income – subsidiary Bank
|
$ | 54,000 | $ | 79,000 | $ | 32,000 | ||||||||||||||
Interest and dividend income – investment securities
|
949 | 63 | 63 | |||||||||||||||||
Interest income – advances to subsidiary Bank
|
403 | 426 | 525 | |||||||||||||||||
Interest income – ESOP loan receivable
|
301 | 321 | 321 | |||||||||||||||||
Net gain on equity investments | 20,460 | — | — | |||||||||||||||||
Other income
|
— | — | 15 | |||||||||||||||||
Total income
|
76,113 | 79,810 | 32,924 | |||||||||||||||||
Interest expense – borrowings
|
10,592 | 5,402 | 4,997 | |||||||||||||||||
Operating expenses
|
3,382 | 2,686 | 2,397 | |||||||||||||||||
Income before income taxes and undistributed earnings of subsidiary Bank
|
62,139 | 71,722 | 25,530 | |||||||||||||||||
(Provision) benefit for income taxes | (2,901) | 924 | 846 | |||||||||||||||||
Income before undistributed earnings of subsidiary Bank
|
59,238 | 72,646 | 26,376 | |||||||||||||||||
Undistributed earnings of subsidiary Bank
|
4,071 | 15,928 | 45,556 | |||||||||||||||||
Net income | $ | 63,309 | $ | 88,574 | $ | 71,932 |
For the Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 63,309 | $ | 88,574 | $ | 71,932 | ||||||||||||||
(Increase) decrease in advances to subsidiary Bank | (73,426) | (13,852) | 15,262 | |||||||||||||||||
Undistributed earnings of subsidiary Bank | (4,071) | (15,928) | (45,556) | |||||||||||||||||
Net gain on sales of investment securities | (20,460) | — | — | |||||||||||||||||
Amortization of deferred costs on borrowings | 576 | 261 | 262 | |||||||||||||||||
Net amortization of purchase accounting adjustments | 638 | 453 | 395 | |||||||||||||||||
Change in other assets and other liabilities | 648 | (184) | 4,076 | |||||||||||||||||
Net cash (used in) provided by operating activities | (32,786) | 59,324 | 46,371 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Proceeds from sale of investment securities | 15,339 | — | — | |||||||||||||||||
Purchase of investment securities | (95,228) | — | — | |||||||||||||||||
Increase in ESOP loan receivable | — | — | (8,400) | |||||||||||||||||
Repayments on ESOP loan receivable | 1,200 | 1,160 | 1,020 | |||||||||||||||||
Net cash (used in) provided by investing activities | (78,689) | 1,160 | (7,380) | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Net proceeds from issuance of subordinated notes | 122,180 | — | — | |||||||||||||||||
Repayment of borrowings | (7,999) | — | — | |||||||||||||||||
Dividends paid | (42,917) | (34,241) | (29,564) | |||||||||||||||||
Purchase of treasury stock | (14,814) | (26,066) | (10,837) | |||||||||||||||||
Net proceeds from the issuance of preferred stock | 55,529 | — | — | |||||||||||||||||
Exercise of stock options | 1,241 | 1,335 | 5,324 | |||||||||||||||||
Net cash provided by (used in) financing activities | 113,220 | (58,972) | (35,077) | |||||||||||||||||
Net increase in cash and due from banks | 1,745 | 1,512 | 3,914 | |||||||||||||||||
Cash and due from banks at beginning of year | 5,442 | 3,930 | 16 | |||||||||||||||||
Cash and due from banks at end of year | $ | 7,187 | $ | 5,442 | $ | 3,930 | ||||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||||||
Non-cash activities: | ||||||||||||||||||||
Unsettled trades of equity securities | $ | 8,142 | $ | — | $ | — |
For the Quarter Ended | ||||||||||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||
Interest income
|
$ | 92,562 | $ | 92,962 | $ | 95,877 | $ | 98,207 | ||||||||||||||||||
Interest expense
|
14,711 | 16,174 | 17,210 | 18,562 | ||||||||||||||||||||||
Net interest income
|
77,851 | 76,788 | 78,667 | 79,645 | ||||||||||||||||||||||
Credit loss expense | 4,072 | 35,714 | 9,649 | 9,969 | ||||||||||||||||||||||
Net interest income after credit loss expense | 73,779 | 41,074 | 69,018 | 69,676 | ||||||||||||||||||||||
Other income (excluding net gain (loss) on equity investments and gain on sale of PPP loans) | 11,032 | 11,755 | 11,282 | 13,542 | ||||||||||||||||||||||
Net gain (loss) on equity investments | 24,487 | (3,576) | 148 | 155 | ||||||||||||||||||||||
Gain on sale of PPP loans | 5,101 | — | — | — | ||||||||||||||||||||||
Operating expenses (excluding FHLB advance prepayment fees, branch consolidation and merger related expenses) | 53,053 | 52,801 | 51,075 | 51,675 | ||||||||||||||||||||||
FHLB advance prepayment fees | 13,333 | — | 924 | — | ||||||||||||||||||||||
Branch consolidation expense | 3,336 | 830 | 863 | 2,594 | ||||||||||||||||||||||
Merger related expenses | 1,194 | 3,156 | 3,070 | 8,527 | ||||||||||||||||||||||
Income (loss) before provision (benefit) for income taxes | 43,483 | (7,534) | 24,516 | 20,577 | ||||||||||||||||||||||
Provision (benefit) for income taxes | 10,419 | (2,608) | 5,878 | 4,044 | ||||||||||||||||||||||
Net income (loss) | $ | 33,064 | $ | (4,926) | $ | 18,638 | $ | 16,533 | ||||||||||||||||||
Net income (loss) available to common stockholders | $ | 32,060 | $ | (6,019) | $ | 18,638 | $ | 16,533 | ||||||||||||||||||
Basic earnings (loss) per share | $ | 0.53 | $ | (0.10) | $ | 0.31 | $ | 0.28 | ||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.54 | $ | (0.10) | $ | 0.31 | $ | 0.27 | ||||||||||||||||||
2019 | ||||||||||||||||||||||||||
Interest income
|
$ | 77,075 | $ | 76,887 | $ | 78,410 | $ | 76,422 | ||||||||||||||||||
Interest expense
|
13,721 | 13,495 | 13,573 | 12,034 | ||||||||||||||||||||||
Net interest income
|
63,354 | 63,392 | 64,837 | 64,388 | ||||||||||||||||||||||
Credit loss expense | 355 | 305 | 356 | 620 | ||||||||||||||||||||||
Net interest income after credit loss expense | 62,999 | 63,087 | 64,481 | 63,768 | ||||||||||||||||||||||
Other income
|
11,231 | 11,543 | 9,879 | 9,512 | ||||||||||||||||||||||
Operating expenses (excluding merger related expenses and branch consolidation expenses)
|
43,589 | 40,884 | 43,289 | 41,827 | ||||||||||||||||||||||
Merger related and branch consolidation expenses
|
4,010 | 2,473 | 7,626 | 5,444 | ||||||||||||||||||||||
Income before provision for income taxes
|
26,631 | 31,273 | 23,445 | 26,009 | ||||||||||||||||||||||
Provision for income taxes
|
3,181 | 6,302 | 4,465 | 4,836 | ||||||||||||||||||||||
Net income
|
$ | 23,450 | $ | 24,971 | $ | 18,980 | $ | 21,173 | ||||||||||||||||||
Basic earnings per share
|
$ | 0.47 | $ | 0.50 | $ | 0.37 | $ | 0.43 | ||||||||||||||||||
Diluted earnings per share
|
$ | 0.47 | $ | 0.49 | $ | 0.37 | $ | 0.42 |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
Item 10. | Directors, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Plan Category |
Number of Securities
to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (A) |
Weighted-average
Exercise Price of Outstanding Options, Warrants and Rights |
Number of Securities
Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (A)) |
|||||||||||||||||
Equity compensation plans approved by stockholders
|
2,838,867 | $ | 20.67 | 1,016,984 | ||||||||||||||||
Equity compensation plans not approved by stockholders
|
— | — | — | |||||||||||||||||
Total
|
2,838,867 | $ | 20.67 | 1,016,984 |
Item 13. | Certain Relationships and Related Transactions and Director Independence |
Item 14. | Principal Accountant Fees and Services |
Exhibit No: | Exhibit Description | Reference | ||||||||||||
Agreement and Plan of Merger, dated as of August 9, 2019, by and among OceanFirst Financial Corp., Midtown Merger Sub Corp. and Country Bank Holding Company, Inc. | Incorporated herein by reference from the Exhibits to the Current Report on Form 8-K filed by OceanFirst Financial Corp. on August 13, 2019. | |||||||||||||
Agreement and Plan of Merger, dated as of August 9, 2019, by and among OceanFirst Financial Corp., Hammerhead Merger Sub Corp. and Two River Bancorp. | Incorporated herein by reference from the Exhibits to the Current Report on Form 8-K filed by OceanFirst Financial Corp. on August 13, 2019. | |||||||||||||
Certificate of Incorporation of OceanFirst Financial Corp. |
Incorporated herein by reference from the Exhibits to Form S-1, Registration Statement, effective May 13, 1996 as amended, Registration No. 33-80123.
|
|||||||||||||
Certificate of Amendment to the Certificate of Incorporation of OceanFirst Financial Corp. | Incorporated herein by reference from Exhibit to Form 8-K filed on June 4, 2018. | |||||||||||||
Bylaws of OceanFirst Financial Corp. |
Incorporated herein by reference from Exhibit to Form 8-K filed on December 21, 2017.
|
|||||||||||||
Certificate of Designation of 7.00% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, of the Company, filed with the Secretary of State of the State of Delaware and effective May 6, 2020. | Incorporated herein by reference to Exhibit 3.2 to the Company’s Registration Statement on Form 8-A, filed on May 7, 2020. | |||||||||||||
Stock Certificate of OceanFirst Financial Corp. |
Incorporated herein by reference from the Exhibits to Form S-1, Registration Statement, effective May 13, 1996 as amended, Registration No. 33-80123.
|
|||||||||||||
Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 | Filed herewith. | |||||||||||||
Form of OceanFirst Bank Employee Stock Ownership Plan |
Incorporated herein by reference from the Exhibits to Form S-1, Registration Statement, effective May 13, 1996 as amended, Registration No. 33-80123.
|
|||||||||||||
Specimen of the Company’s 7.00% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A Certificate | Incorporated herein by reference to Exhibit 4.1 to the Company’s Registration Statement on Form 8-A, filed on May 7, 2020. | |||||||||||||
Deposit Agreement, dated as of May 7, 2020, among the Company, Broadridge Corporate Issuer Solutions, Inc., as depositary, and the holders from time to time of the depositary receipts described therein | Incorporated herein by reference to Exhibit 4.2 to the Company’s Registration Statement on Form 8-A, filed on May 7, 2020. | |||||||||||||
Form of Depositary Receipt | Incorporated herein by reference to Exhibit A to Exhibit 4.2 to the Company’s Registration Statement on Form 8-A, filed on May 7, 2020. | |||||||||||||
Indenture, dated May 1, 2020, between OceanFirst Financial Corp. and Wilmington Trust, National Association, as Trustee | Incorporated herein by reference from Exhibit to Form 8-K filed on May 1, 2020. | |||||||||||||
First Supplemental Indenture, dated May 1, 2020, between OceanFirst Financial Corp. and Wilmington Trust, National Association, as Trustee | Incorporated herein by reference from Exhibit to Form 8-K filed on May 1, 2020. | |||||||||||||
Form of 5.25% Fixed-to-Floating Rate Subordinated Note due 2030 | Incorporated herein by reference from Exhibit 4.2 to Form 8-K filed on May 1, 2020. | |||||||||||||
Exhibit No: | Exhibit Description | Reference | ||||||||||||
Form of OceanFirst Bank Employee Stock Ownership Plan | Incorporated herein by reference from the Exhibits to Form S-1, Registration Statement, effective May 13, 1996 as amended, Registration No. 33-80123. | |||||||||||||
Amendment to OceanFirst Bank Employee Stock Ownership Plan |
Incorporated herein by reference from the Exhibits to Form 10-K filed on March 25, 1997.
|
|||||||||||||
Amendment to OceanFirst Bank Employee Stock Ownership Plan |
Incorporated herein by reference from Exhibit to Form 10-K filed on March 17, 2008.
|
|||||||||||||
OceanFirst Bank 1995 Supplemental Executive Retirement Plan |
Incorporated herein by reference from the Exhibits to Form S-1, Registration Statement, effective May 13, 1996 as amended, Registration No. 33-80123.
|
|||||||||||||
OceanFirst Bank Executive Supplemental Retirement Income Agreement |
Incorporated herein by reference from Exhibit to Form 8-K filed on September 23, 2008.
|
|||||||||||||
OceanFirst Bank Deferred Compensation Plan for Directors |
Incorporated herein by reference from the Exhibits to Form S-1, Registration Statement, effective May 13, 1996 as amended, Registration No. 33-80123.
|
|||||||||||||
OceanFirst Bank New Executive Deferred Compensation Master Agreement |
Incorporated herein by reference from Exhibit to Form 8-K filed on September 23, 2008.
|
|||||||||||||
OceanFirst Bank Deferred Compensation Plan for Officers |
Incorporated herein by reference from the Exhibits to Form S-1, Registration Statement, effective May 13, 1996 as amended, Registration No. 33-80123.
|
|||||||||||||
OceanFirst Bank New Director Deferred Compensation Master Agreement |
Incorporated herein by reference from Exhibit to Form 8-K filed on September 23, 2008.
|
|||||||||||||
Amendment and form of OceanFirst Bank Employee Severance Compensation Plan |
Incorporated herein by reference from Exhibits to Form 10-Q filed on August 9, 2005.
|
Form of OceanFirst Financial Corp. Deferred Incentive Compensation Award Program |
Incorporated herein by reference from Exhibits to Form 10-K filed on March 14, 2006.
|
|||||||||||||
Form of Change in Control Agreement between OceanFirst Financial Corp. and Angela K. Ho | Incorporated herein by reference from Exhibit to Form 8-K filed on March 7, 2017. | |||||||||||||
Form of Change in Control Agreement between OceanFirst Bank and Angela K. Ho | Incorporated herein by reference from Exhibit to Form 8-K filed on March 7, 2017. | |||||||||||||
Form of OceanFirst Financial Corp. 2011 Stock Incentive Plan Award Agreement for Stock Options | Incorporated by reference from Exhibit to Form 8-K filed May 10, 2011. | |||||||||||||
Form of OceanFirst Financial Corp. 2011 Cash Incentive Compensation Plan Award Agreement | Incorporated by reference from Exhibit to Form 8-K filed May 10, 2011. | |||||||||||||
2011 Stock Incentive Plan | Incorporated herein by reference from Schedule 14-A Revised Definitive Proxy Statement filed on March 31, 2011. | |||||||||||||
Amendment No. 1 to 2011 Stock Incentive Plan | Incorporated herein by reference from Schedule 14-A Definitive Proxy Statement filed on April 26, 2017. | |||||||||||||
2011 Cash Incentive Compensation Plan | Incorporated herein by reference from Schedule 14-A Revised Definitive Proxy Statement filed on March 31, 2011. | |||||||||||||
Form of Employment Agreement between OceanFirst Financial Corp. and certain executive officers, including Christopher D. Maher, Michael J. Fitzpatrick, and Steven J. Tsimbinos | Incorporated herein by reference from Exhibit to Form 8-K filed on April 10, 2017. | |||||||||||||
Supplemental Executive Retirement Account Agreement between Christopher D. Maher and OceanFirst Bank dated June 18, 2013 | Incorporated herein by reference from Exhibit to Form 8-K filed June 20, 2013. | |||||||||||||
Form of OceanFirst Financial Corp 2011 Stock Incentive Plan Award Agreement for Stock Awards | Incorporated herein by reference from Exhibit to Form 8-K filed January 17, 2014. | |||||||||||||
Form of Employment Agreement between OceanFirst Financial Corp. and certain executive officers, including Joseph R. Iantosca and Joseph J. Lebel | Incorporated herein by reference from Exhibit to Form 8-K filed on April 10, 2017. |
Exhibit No: | Exhibit Description | Reference | ||||||||||||
Form of First Amendment to Confidentiality and Executive Restriction Agreement Employment between OceanFirst Financial Corp. and certain executive officers, including Christopher D. Maher, Michael J. Fitzpatrick, Joseph R. Iantosca, Joseph J. Lebel III, and Steven J. Tsimbinos | Incorporated herein by reference from Exhibit to Form 8-K filed on June 27, 2017. | |||||||||||||
Separation, Non-Competition and Consulting Agreement, dated as of August 9, 2019, by and among OceanFirst Financial Corp., OceanFirst Bank, National Association, and Joseph M. Murphy, Jr. | Incorporated herein by reference from the Exhibits to the Current Report on Form 8-K filed on December 19, 2019. | |||||||||||||
Consulting Agreement, dated as of December 31, 2019, by and among OceanFirst Financial Corp., OceanFirst Bank, National Association, and William D. Moss | Incorporated herein by reference from the Exhibits to the Current Report on Form 8-K/A filed on January 2, 2020. | |||||||||||||
OceanFirst Financial Corp. 2020 Stock Incentive Plan | Incorporated hereto by reference to Appendix A to the Proxy Statement on Form DEF 14A filed on April 22, 2020. | |||||||||||||
Form of OceanFirst Financial Corp. 2020 Stock Incentive Plan Award Agreement for Stock Options | Incorporated herein by reference from the Exhibits to the Current Report on Form 8-K filed on May 26, 2020. | |||||||||||||
Form of OceanFirst Financial Corp. 2020 Stock Incentive Plan Award Agreement for Time-Vested Stock Awards | Incorporated herein by reference from the Exhibits to the Current Report on Form 8-K filed on May 26, 2020. | |||||||||||||
Form of OceanFirst Financial Corp. 2020 Stock Incentive Plan Performance Based Stock Award Agreement | Incorporated herein by reference from the Exhibits to the Current Report on Form 8-K filed on May 26, 2020. | |||||||||||||
OceanFirst Financial Corp. Code of Ethics and Standards of Personal Conduct | Incorporated herein by reference from the Exhibits to Form 10-K filed on March 15, 2004. | |||||||||||||
Subsidiary information is incorporated herein by reference to “Part I – Subsidiary Activities” | Filed herewith. | |||||||||||||
Consent of KPMG LLP | Filed herewith. | |||||||||||||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith. | |||||||||||||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith. | |||||||||||||
Certifications pursuant to 18 U.S.C. Section 1350 as added by Section 906 of the Sarbanes Oxley Act of 2002 | Filed herewith. |
Exhibit No: | Exhibit Description | Reference | ||||||||||||
101.0 |
The following materials from the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements.
|
Filed herewith. | ||||||||||||
101.INS | XBRL Instance Document | Filed herewith. | ||||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith. | ||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith. | ||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed herewith. | ||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith. | ||||||||||||
101.DEF | XBRL Taxonomy Extension Definitions Linkbase Document | Filed herewith. | ||||||||||||
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)
|
Filed herewith. | ||||||||||||
OCEANFIRST FINANCIAL CORP.
|
|||||
By: | /s/ Christopher D. Maher | ||||
Christopher D. Maher | |||||
Chairman of the Board | |||||
Chief Executive Officer | |||||
Date: | March 1, 2021 |
Name | Date | |||||||||||||
/s/ Christopher D. Maher | March 1, 2021 | |||||||||||||
Christopher D. Maher | ||||||||||||||
Chairman of the Board and Chief Executive Officer (Principal Executive Officer) | ||||||||||||||
/s/ Michael J. Fitzpatrick | March 1, 2021 | |||||||||||||
Michael J. Fitzpatrick | ||||||||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||||||||||
/s/ Angela K. Ho | March 1, 2021 | |||||||||||||
Angela K. Ho | ||||||||||||||
(Principal Accounting Officer) | ||||||||||||||
/s/ Angelo J. Catania | March 1, 2021 | |||||||||||||
Angelo J. Catania | ||||||||||||||
Director | ||||||||||||||
/s/ Anthony R. Coscia | March 1, 2021 | |||||||||||||
Anthony R. Coscia | ||||||||||||||
Director | ||||||||||||||
/s/ Michael D. Devlin | March 1, 2021 | |||||||||||||
Michael D. Devlin | ||||||||||||||
Director |
Name | Date | |||||||||||||
/s/ Jack M. Farris | March 1, 2021 | |||||||||||||
Jack M. Farris | ||||||||||||||
Director | ||||||||||||||
/s/ Kimberly M. Guadagno | March 1, 2021 | |||||||||||||
Kimberly M. Guadagno | ||||||||||||||
Director | ||||||||||||||
/s/ Nicos Katsoulis | March 1, 2021 | |||||||||||||
Nicos Katsoulis | ||||||||||||||
Director | ||||||||||||||
/s/ John K. Lloyd | March 1, 2021 | |||||||||||||
John K. Lloyd | ||||||||||||||
Director | ||||||||||||||
/s/ William D. Moss | March 1, 2021 | |||||||||||||
William D. Moss | ||||||||||||||
Director | ||||||||||||||
/s/ Joseph M. Murphy, Jr. | March 1, 2021 | |||||||||||||
Joseph M. Murphy, Jr. | ||||||||||||||
Director | ||||||||||||||
/s/ Steven M. Scopellite | March 1, 2021 | |||||||||||||
Steven M. Scopellite | ||||||||||||||
Director | ||||||||||||||
/s/ Grace C. Torres | March 1, 2021 | |||||||||||||
Grace C. Torres | ||||||||||||||
Director | ||||||||||||||
/s/ Patricia L. Turner | March 1, 2021 | |||||||||||||
Patricia L. Turner | ||||||||||||||
Director | ||||||||||||||
/s/ Grace M. Vallacchi | March 1, 2021 | |||||||||||||
Grace M. Vallacchi | ||||||||||||||
Director | ||||||||||||||
/s/ John E. Walsh | March 1, 2021 | |||||||||||||
John E. Walsh | ||||||||||||||
Director |
1 | I have reviewed this annual report on Form 10-K of OceanFirst Financial Corp.; | |||||||
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 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. |
Date: | March 1, 2021 | /s/ Christopher D. Maher | |||||||||||||||||||||
Christopher D. Maher | |||||||||||||||||||||||
Chief Executive Officer | |||||||||||||||||||||||
(principal executive officer) |
1 | I have reviewed this annual report on Form 10-K of OceanFirst Financial Corp.; | |||||||
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 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. |
Date: | March 1, 2021 | /s/ Michael J. Fitzpatrick | |||||||||||||||||||||
Michael J. Fitzpatrick | |||||||||||||||||||||||
Chief Financial Officer | |||||||||||||||||||||||
(principal financial officer) |
1 | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||||
2 | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report. |
/s/ Christopher D. Maher | ||
Christopher D. Maher | ||
Chief Executive Officer | ||
March 1, 2021 |
/s/ Michael J. Fitzpatrick | ||
Michael J. Fitzpatrick | ||
Chief Financial Officer | ||
March 1, 2021 |