☒ | QUARTERLY 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 | 04-3510455 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
60 State Street | Boston | Massachusetts | 02109 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.01 per share | BHLB | The New York Stock Exchange |
Page | ||||||||||||||
Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 | ||||||||||||||
Consolidated Statements of Income for the Three Months Ended March 31, 2022 and 2021 | ||||||||||||||
Consolidated Statements of Comprehensive (Loss) for the Three Months Ended March 31, 2022 and 2021 | ||||||||||||||
Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended March 31, 2022 and 2021 | ||||||||||||||
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021 | ||||||||||||||
Notes to Consolidated Financial Statements (Unaudited) | ||||||||||||||
Item 2. | ||||||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||
(In thousands, except share data) | ||||||||||||||
Assets | ||||||||||||||
Cash and due from banks | $ | 151,814 | $ | 109,350 | ||||||||||
Short-term investments | 1,455,437 | 1,518,457 | ||||||||||||
Total cash and cash equivalents | 1,607,251 | 1,627,807 | ||||||||||||
Trading security, at fair value | 7,798 | 8,354 | ||||||||||||
Marketable equity securities, at fair value | 14,719 | 15,453 | ||||||||||||
Securities available for sale, at fair value | 2,032,575 | 1,877,585 | ||||||||||||
Securities held to maturity (fair values of $580,538 and $647,236) | 612,174 | 636,503 | ||||||||||||
Federal Home Loan Bank stock and other restricted securities | 10,829 | 10,800 | ||||||||||||
Total securities | 2,678,095 | 2,548,695 | ||||||||||||
Less: Allowance for credit losses on held to maturity securities | (99) | (105) | ||||||||||||
Net securities | 2,677,996 | 2,548,590 | ||||||||||||
Loans held for sale | 300 | 6,110 | ||||||||||||
Total loans | 7,267,323 | 6,825,847 | ||||||||||||
Less: Allowance for credit losses on loans | (99,475) | (106,094) | ||||||||||||
Net loans | 7,167,848 | 6,719,753 | ||||||||||||
Premises and equipment, net | 92,971 | 94,383 | ||||||||||||
Other intangible assets | 28,332 | 29,619 | ||||||||||||
Cash surrender value of bank-owned life insurance policies | 236,593 | 235,690 | ||||||||||||
Other assets | 281,729 | 288,384 | ||||||||||||
Assets held for sale | 3,988 | 4,577 | ||||||||||||
Total assets | $ | 12,097,008 | $ | 11,554,913 | ||||||||||
Liabilities | ||||||||||||||
Demand deposits | $ | 3,020,568 | $ | 3,008,461 | ||||||||||
NOW and other deposits | 2,546,799 | 976,401 | ||||||||||||
Money market deposits | 2,469,042 | 3,293,526 | ||||||||||||
Savings deposits | 1,133,877 | 1,111,625 | ||||||||||||
Time deposits | 1,528,922 | 1,678,940 | ||||||||||||
Total deposits | 10,699,208 | 10,068,953 | ||||||||||||
Long-term Federal Home Loan Bank advances and other | 14,563 | 13,331 | ||||||||||||
Subordinated borrowings | 97,569 | 97,513 | ||||||||||||
Total borrowings | 112,132 | 110,844 | ||||||||||||
Other liabilities | 191,807 | 192,681 | ||||||||||||
Total liabilities | $ | 11,003,147 | $ | 10,372,478 | ||||||||||
(continued) | ||||||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||
Shareholders’ equity | ||||||||||||||
Common stock ($0.01 par value; 100,000,000 shares authorized and 51,903,190 shares issued and 47,791,829 shares outstanding in 2022; 51,903,190 shares issued and 48,667,110 shares outstanding in 2021) | 528 | 528 | ||||||||||||
Additional paid-in capital - common stock | 1,423,679 | 1,423,445 | ||||||||||||
Unearned compensation | (10,284) | (9,056) | ||||||||||||
Retained (deficit) | (125,343) | (139,383) | ||||||||||||
Accumulated other comprehensive (loss) | (78,237) | (3,243) | ||||||||||||
Treasury stock, at cost (4,111,361 shares in 2022 and 3,236,080 shares in 2021) | (116,482) | (89,856) | ||||||||||||
Total shareholders’ equity | 1,093,861 | 1,182,435 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 12,097,008 | $ | 11,554,913 |
Three Months Ended March 31, | ||||||||||||||
(In thousands, except per share data) | 2022 | 2021 | ||||||||||||
Interest and dividend income | ||||||||||||||
Loans | $ | 62,474 | $ | 75,933 | ||||||||||
Securities and other | 12,349 | 12,220 | ||||||||||||
Total interest and dividend income | 74,823 | 88,153 | ||||||||||||
Interest expense | ||||||||||||||
Deposits | 4,174 | 9,583 | ||||||||||||
Borrowings | 1,586 | 3,477 | ||||||||||||
Total interest expense | 5,760 | 13,060 | ||||||||||||
Net interest income | 69,063 | 75,093 | ||||||||||||
Non-interest income | ||||||||||||||
Deposit related fees | 7,351 | 7,126 | ||||||||||||
Loan fees and revenue | 8,265 | 10,246 | ||||||||||||
Insurance commissions and fees | — | 3,130 | ||||||||||||
Wealth management fees | 2,625 | 2,772 | ||||||||||||
Mortgage banking originations | 19 | 802 | ||||||||||||
Total fee income | 18,260 | 24,076 | ||||||||||||
Other, net | 3,166 | 2,148 | ||||||||||||
(Loss) on securities, net | (745) | (31) | ||||||||||||
Total non-interest income | 20,681 | 26,193 | ||||||||||||
Total net revenue | 89,744 | 101,286 | ||||||||||||
(Benefit)/provision for credit losses | (4,000) | 6,500 | ||||||||||||
Non-interest expense | ||||||||||||||
Compensation and benefits | 37,521 | 38,735 | ||||||||||||
Occupancy and equipment | 10,067 | 11,024 | ||||||||||||
Technology and communications | 8,527 | 8,593 | ||||||||||||
Marketing and promotion | 1,111 | 595 | ||||||||||||
Professional services | 2,692 | 6,614 | ||||||||||||
FDIC premiums and assessments | 987 | 1,120 | ||||||||||||
Other real estate owned and foreclosures | — | 2 | ||||||||||||
Amortization of intangible assets | 1,286 | 1,319 | ||||||||||||
Acquisition, restructuring, and other expenses | 18 | 3,486 | ||||||||||||
Other | 6,341 | 6,666 | ||||||||||||
Total non-interest expense | 68,550 | 78,154 | ||||||||||||
Income before income taxes | $ | 25,194 | $ | 16,632 | ||||||||||
Income tax expense | 4,998 | 3,601 | ||||||||||||
Net income | $ | 20,196 | $ | 13,031 | ||||||||||
Basic earnings per common share | $ | 0.42 | $ | 0.26 | ||||||||||
Diluted earnings per common share | $ | 0.42 | $ | 0.26 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 47,668 | 50,330 | ||||||||||||
Diluted | 48,067 | 50,565 |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Net income | $ | 20,196 | $ | 13,031 | ||||||||||
Other comprehensive (loss), before tax: | ||||||||||||||
Changes in unrealized (loss) on debt securities available-for-sale | (101,373) | (27,013) | ||||||||||||
Income taxes related to other comprehensive income: | ||||||||||||||
Changes in unrealized (loss) on debt securities available-for-sale | 26,379 | 6,863 | ||||||||||||
Total other comprehensive (loss) | (74,994) | (20,150) | ||||||||||||
Total comprehensive (loss) | $ | (54,798) | $ | (7,119) |
Common stock | Additional paid-in capital | Unearned compensation | Retained earnings (deficit) | Accumulated other comprehensive income/(loss) | Treasury stock | |||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 50,833 | $ | 528 | $ | 1,427,239 | $ | (6,245) | $ | (233,344) | $ | 30,871 | $ | (31,276) | $ | 1,187,773 | |||||||||||||||||||||||||||||||||||
Comprehensive (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 13,031 | — | — | 13,031 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) | — | — | — | — | — | (20,150) | — | (20,150) | ||||||||||||||||||||||||||||||||||||||||||
Total comprehensive (loss) | — | — | — | — | 13,031 | (20,150) | — | (7,119) | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared on common shares ($0.12 per share) | — | — | — | — | (6,124) | — | — | (6,124) | ||||||||||||||||||||||||||||||||||||||||||
Forfeited shares | (52) | — | (234) | 1,333 | — | — | (1,099) | — | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 5 | — | — | — | (79) | — | 148 | 69 | ||||||||||||||||||||||||||||||||||||||||||
Restricted stock grants | 210 | — | (2,660) | (3,485) | — | — | 6,145 | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | 675 | — | — | — | 675 | ||||||||||||||||||||||||||||||||||||||||||
Other, net | (8) | — | 4 | — | — | — | (139) | (135) | ||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 50,988 | $ | 528 | $ | 1,424,349 | $ | (7,722) | $ | (226,516) | $ | 10,721 | $ | (26,221) | $ | 1,175,139 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 48,667 | $ | 528 | $ | 1,423,445 | $ | (9,056) | $ | (139,383) | $ | (3,243) | $ | (89,856) | $ | 1,182,435 | |||||||||||||||||||||||||||||||||||
Comprehensive (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 20,196 | — | — | 20,196 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) | — | — | — | — | — | (74,994) | — | (74,994) | ||||||||||||||||||||||||||||||||||||||||||
Total comprehensive (loss) | — | — | — | — | 20,196 | (74,994) | — | (54,798) | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared on common shares ($0.12 per share) | — | — | — | — | (6,152) | — | — | (6,152) | ||||||||||||||||||||||||||||||||||||||||||
Treasury shares repurchased | (972) | — | — | — | — | — | (29,254) | (29,254) | ||||||||||||||||||||||||||||||||||||||||||
Forfeited shares | (36) | — | 70 | 983 | — | — | (1,053) | — | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 1 | — | — | — | (4) | — | 29 | 25 | ||||||||||||||||||||||||||||||||||||||||||
Restricted stock grants | 139 | — | 161 | (4,016) | — | — | 3,855 | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | 1,805 | — | — | — | 1,805 | ||||||||||||||||||||||||||||||||||||||||||
Other, net | (7) | — | 3 | — | — | — | (203) | (200) | ||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 47,792 | $ | 528 | $ | 1,423,679 | $ | (10,284) | $ | (125,343) | $ | (78,237) | $ | (116,482) | $ | 1,093,861 |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 20,196 | $ | 13,031 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
(Benefit)/provision for credit losses | (4,000) | 6,500 | ||||||||||||
Net amortization of securities | 668 | 389 | ||||||||||||
Change in unamortized net loan costs and premiums | 560 | (2,755) | ||||||||||||
Premises and equipment depreciation and amortization expense | 2,479 | 2,839 | ||||||||||||
Stock-based compensation expense | 1,805 | 675 | ||||||||||||
Accretion of purchase accounting entries, net | (677) | (1,305) | ||||||||||||
Amortization of other intangibles | 1,286 | 1,319 | ||||||||||||
Income from cash surrender value of bank-owned life insurance policies | (1,332) | (1,348) | ||||||||||||
Securities losses, net | 745 | 31 | ||||||||||||
Net change in loans held-for-sale | 5,204 | 3,938 | ||||||||||||
Loss on disposition of assets | — | 2,811 | ||||||||||||
Amortization of interest in tax-advantaged projects | 357 | 33 | ||||||||||||
Net change in other | (10,595) | (2,584) | ||||||||||||
Net cash provided by operating activities | 16,696 | 23,574 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Net decrease in trading security | 202 | 192 | ||||||||||||
Proceeds from sales of marketable equity securities | — | 2,849 | ||||||||||||
Purchases of securities available for sale | (386,636) | (103,877) | ||||||||||||
Proceeds from maturities, calls, and prepayments of securities available for sale | 130,118 | 166,998 | ||||||||||||
Purchases of securities held to maturity | — | (155,417) | ||||||||||||
Proceeds from maturities, calls, and prepayments of securities held to maturity | 23,853 | 9,377 | ||||||||||||
Net change in loans | (443,357) | 412,255 | ||||||||||||
Net change in Mid-Atlantic region loans held for sale | — | 16,830 | ||||||||||||
Proceeds from surrender of bank-owned life insurance | 429 | — | ||||||||||||
Purchase of Federal Home Loan Bank stock | (116) | — | ||||||||||||
Proceeds from redemption of Federal Home Loan Bank stock | 87 | 6,193 | ||||||||||||
Purchase of premises and equipment, net | — | (2,297) | ||||||||||||
Net cash (used)/provided by investing activities | (675,420) | 353,103 | ||||||||||||
(continued) |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Net increase in deposits | 630,255 | 28,562 | ||||||||||||
Net change in Mid-Atlantic region deposits held for sale | — | 29,245 | ||||||||||||
Proceeds from Federal Home Loan Bank advances and other borrowings | 1,275 | — | ||||||||||||
Repayments of Federal Home Loan Bank advances and other borrowings | (46) | (123,022) | ||||||||||||
Purchase of treasury stock | (29,254) | — | ||||||||||||
Exercise of stock options | 25 | 69 | ||||||||||||
Common stock cash dividends paid | (6,152) | (6,124) | ||||||||||||
Settlement of derivative contracts with financial institution counterparties | 42,065 | 36,326 | ||||||||||||
Net cash provided/(used) by financing activities | 638,168 | (34,944) | ||||||||||||
Net change in cash and cash equivalents | (20,556) | 341,733 | ||||||||||||
Cash and cash equivalents at beginning of period | 1,627,807 | 1,557,875 | ||||||||||||
Cash and cash equivalents at end of period | $ | 1,607,251 | $ | 1,899,608 | ||||||||||
Supplemental cash flow information: | ||||||||||||||
Interest paid on deposits | $ | 3,965 | $ | 10,149 | ||||||||||
Interest paid on borrowed funds | 1,588 | 3,655 | ||||||||||||
Income taxes (refunded) paid, net | 2,694 | (2,386) | ||||||||||||
Other non-cash changes: | ||||||||||||||
Other net comprehensive income | $ | (74,994) | $ | (20,150) | ||||||||||
Unsettled transactions related to security purchases | — | 22,126 | ||||||||||||
Reclass of seasoned loan portfolios to held-for-sale, net | — | 9,500 | ||||||||||||
Reclass of held-for-sale loans to held-for-investment, net | 606 | — |
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Allowance | |||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||
U.S Treasuries | $ | 290,656 | $ | 31 | $ | (78) | $ | 290,609 | ||||||||||||||||||||||||
Municipal bonds and obligations | 68,624 | 2,039 | (440) | 70,223 | — | |||||||||||||||||||||||||||
Agency collateralized mortgage obligations | 740,928 | 68 | (43,284) | 697,712 | — | |||||||||||||||||||||||||||
Agency mortgage-backed securities | 702,903 | 50 | (48,567) | 654,386 | — | |||||||||||||||||||||||||||
Agency commercial mortgage-backed securities | 273,144 | 100 | (14,920) | 258,324 | — | |||||||||||||||||||||||||||
Corporate bonds | 44,803 | 373 | (678) | 44,498 | — | |||||||||||||||||||||||||||
Other bonds and obligations | 16,790 | 77 | (44) | 16,823 | — | |||||||||||||||||||||||||||
Total securities available for sale | 2,137,848 | 2,738 | (108,011) | 2,032,575 | — | |||||||||||||||||||||||||||
Securities held to maturity | ||||||||||||||||||||||||||||||||
Municipal bonds and obligations | 271,466 | 5,462 | (11,963) | 264,965 | 67 | |||||||||||||||||||||||||||
Agency collateralized mortgage obligations | 143,170 | 618 | (9,741) | 134,047 | — | |||||||||||||||||||||||||||
Agency mortgage-backed securities | 55,058 | — | (5,353) | 49,705 | — | |||||||||||||||||||||||||||
Agency commercial mortgage-backed securities | 139,751 | — | (10,611) | 129,140 | — | |||||||||||||||||||||||||||
Tax advantaged economic development bonds | 2,564 | 15 | (63) | 2,516 | 32 | |||||||||||||||||||||||||||
Other bonds and obligations | 165 | — | — | 165 | — | |||||||||||||||||||||||||||
Total securities held to maturity | 612,174 | 6,095 | (37,731) | 580,538 | 99 | |||||||||||||||||||||||||||
Marketable equity securities | 15,690 | 109 | (1,080) | 14,719 | — | |||||||||||||||||||||||||||
Total | $ | 2,765,712 | $ | 8,942 | $ | (146,822) | $ | 2,627,832 | $ | 99 | ||||||||||||||||||||||
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Allowance | |||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||
U.S Treasuries | $ | 59,972 | $ | 1 | $ | — | $ | 59,973 | $ | — | ||||||||||||||||||||||
Municipal bonds and obligations | 71,822 | 5,355 | — | 77,177 | — | |||||||||||||||||||||||||||
Agency collateralized mortgage obligations | 693,782 | 5,566 | (11,012) | 688,336 | — | |||||||||||||||||||||||||||
Agency mortgage-backed securities | 711,154 | 2,347 | (7,642) | 705,859 | — | |||||||||||||||||||||||||||
Agency commercial mortgage-backed securities | 282,958 | 2,996 | (3,620) | 282,334 | — | |||||||||||||||||||||||||||
Corporate bonds | 44,824 | 950 | (114) | 45,660 | — | |||||||||||||||||||||||||||
Other bonds and obligations | 17,301 | 953 | (8) | 18,246 | — | |||||||||||||||||||||||||||
Total securities available for sale | 1,881,813 | 18,168 | (22,396) | 1,877,585 | — | |||||||||||||||||||||||||||
Securities held to maturity | ||||||||||||||||||||||||||||||||
Municipal bonds and obligations | 281,515 | 16,151 | (693) | 296,973 | 70 | |||||||||||||||||||||||||||
Agency collateralized mortgage obligations | 149,195 | 3,203 | (3,513) | 148,885 | — | |||||||||||||||||||||||||||
Agency mortgage-backed securities | 57,327 | 95 | (1,498) | 55,924 | — | |||||||||||||||||||||||||||
Agency commercial mortgage-backed securities | 145,573 | 266 | (3,289) | 142,550 | — | |||||||||||||||||||||||||||
Tax advantaged economic development bonds | 2,728 | 26 | (15) | 2,739 | 35 | |||||||||||||||||||||||||||
Other bonds and obligations | 165 | — | — | 165 | — | |||||||||||||||||||||||||||
Total securities held to maturity | 636,503 | 19,741 | (9,008) | 647,236 | 105 | |||||||||||||||||||||||||||
Marketable equity securities | 15,689 | 67 | (303) | 15,453 | — | |||||||||||||||||||||||||||
Total | $ | 2,534,005 | $ | 37,979 | $ | (31,707) | $ | 2,540,274 | $ | 105 |
(In thousands) | Municipal bonds and obligations | Tax advantaged economic development bonds | Total | ||||||||||||||
Balance at December 31, 2021 | $ | 70 | $ | 35 | $ | 105 | |||||||||||
Provision for credit losses - reversal | (3) | (3) | (6) | ||||||||||||||
Balance at March 31, 2022 | $ | 67 | $ | 32 | $ | 99 |
(In thousands) | Municipal bonds and obligations | Tax advantaged economic development bonds | Total | ||||||||||||||
Balance at December 31, 2020 | $ | 64 | $ | 40 | $ | 104 | |||||||||||
Provision for credit losses | 7 | — | 7 | ||||||||||||||
Balance at March 31, 2021 | $ | 71 | $ | 40 | $ | 111 |
Available for sale | Held to maturity | |||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||
(In thousands) | Cost | Value | Cost | Value | ||||||||||||||||||||||
Within 1 year | $ | 292,101 | $ | 292,057 | $ | 1,717 | $ | 1,718 | ||||||||||||||||||
Over 1 year to 5 years | 7,941 | 8,007 | 2,783 | 2,799 | ||||||||||||||||||||||
Over 5 years to 10 years | 48,905 | 48,853 | 21,186 | 21,602 | ||||||||||||||||||||||
Over 10 years | 71,926 | 73,236 | 248,509 | 241,527 | ||||||||||||||||||||||
Total bonds and obligations | 420,873 | 422,153 | 274,195 | 267,646 | ||||||||||||||||||||||
Mortgage-backed securities | 1,716,975 | 1,610,422 | 337,979 | 312,892 | ||||||||||||||||||||||
Total | $ | 2,137,848 | $ | 2,032,575 | $ | 612,174 | $ | 580,538 |
Less Than Twelve Months | Over Twelve Months | Total | ||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | |||||||||||||||||||||||||||||||||
(In thousands) | Losses | Value | Losses | Value | Losses | Value | ||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||||||||
U.S Treasuries | $ | 78 | $ | 140,643 | $ | — | $ | — | $ | 78 | $ | 140,643 | ||||||||||||||||||||||||||
Municipal bonds and obligations | 440 | 10,695 | — | — | 440 | 10,695 | ||||||||||||||||||||||||||||||||
Agency collateralized mortgage obligations | 38,150 | 637,494 | 5,134 | 38,740 | 43,284 | 676,234 | ||||||||||||||||||||||||||||||||
Agency mortgage-backed securities | 24,058 | 414,665 | 24,509 | 233,313 | 48,567 | 647,978 | ||||||||||||||||||||||||||||||||
Agency commercial mortgage-backed securities | 8,380 | 178,298 | 6,540 | 69,180 | 14,920 | 247,478 | ||||||||||||||||||||||||||||||||
Corporate bonds | 678 | 16,533 | — | — | 678 | 16,533 | ||||||||||||||||||||||||||||||||
Other bonds and obligations | 35 | 6,049 | 9 | 594 | 44 | 6,643 | ||||||||||||||||||||||||||||||||
Total securities available for sale | $ | 71,819 | $ | 1,404,377 | $ | 36,192 | $ | 341,827 | $ | 108,011 | $ | 1,746,204 | ||||||||||||||||||||||||||
Securities held to maturity | ||||||||||||||||||||||||||||||||||||||
Municipal bonds and obligations | $ | 10,422 | $ | 43,645 | $ | 1,541 | $ | 5,249 | $ | 11,963 | $ | 48,894 | ||||||||||||||||||||||||||
Agency collateralized mortgage obligations | 5,863 | 48,246 | 3,878 | 32,979 | 9,741 | 81,225 | ||||||||||||||||||||||||||||||||
Agency mortgage-backed securities | 73 | 2,925 | 5,280 | 46,780 | 5,353 | 49,705 | ||||||||||||||||||||||||||||||||
Agency commercial mortgage-backed securities | 5,524 | 77,044 | 5,087 | 52,095 | 10,611 | 129,139 | ||||||||||||||||||||||||||||||||
Tax advantaged economic development bonds | 63 | 1,171 | — | — | 63 | 1,171 | ||||||||||||||||||||||||||||||||
Total securities held to maturity | 21,945 | 173,031 | 15,786 | 137,103 | 37,731 | 310,134 | ||||||||||||||||||||||||||||||||
Total | $ | 93,764 | $ | 1,577,408 | $ | 51,978 | $ | 478,930 | $ | 145,742 | $ | 2,056,338 | ||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||||||||
Agency collateralized mortgage obligations | $ | 9,626 | $ | 375,132 | $ | 1,386 | $ | 27,025 | $ | 11,012 | $ | 402,157 | ||||||||||||||||||||||||||
Agency mortgage-backed securities | 3,179 | 222,887 | 4,463 | 175,941 | 7,642 | 398,828 | ||||||||||||||||||||||||||||||||
Agency commercial mortgage-backed securities | 1,609 | 103,354 | 2,011 | 48,619 | 3,620 | 151,973 | ||||||||||||||||||||||||||||||||
Corporate bonds | 114 | 11,115 | — | — | 114 | 11,115 | ||||||||||||||||||||||||||||||||
Other bonds and obligations | — | — | 8 | 694 | 8 | 694 | ||||||||||||||||||||||||||||||||
Total securities available for sale | $ | 14,528 | $ | 712,488 | $ | 7,868 | $ | 252,279 | $ | 22,396 | $ | 964,767 | ||||||||||||||||||||||||||
Securities held to maturity | ||||||||||||||||||||||||||||||||||||||
Municipal bonds and obligations | $ | 693 | $ | 36,981 | $ | — | $ | — | $ | 693 | $ | 36,981 | ||||||||||||||||||||||||||
Agency collateralized mortgage obligations | 1,808 | 49,308 | 1,705 | 36,212 | 3,513 | 85,520 | ||||||||||||||||||||||||||||||||
Agency mortgage-backed securities | 839 | 26,656 | 659 | 26,025 | 1,498 | 52,681 | ||||||||||||||||||||||||||||||||
Agency commercial mortgage-backed securities | 1,255 | 80,406 | 2,034 | 51,654 | 3,289 | 132,060 | ||||||||||||||||||||||||||||||||
Tax advantaged economic development bonds | 15 | 1,255 | — | — | 15 | 1,255 | ||||||||||||||||||||||||||||||||
Total securities held to maturity | 4,610 | 194,606 | 4,398 | 113,891 | 9,008 | 308,497 | ||||||||||||||||||||||||||||||||
Total | $ | 19,138 | $ | 907,094 | $ | 12,266 | $ | 366,170 | $ | 31,404 | $ | 1,273,264 |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Construction | $ | 310,778 | $ | 324,282 | ||||||||||
Commercial multifamily | 640,922 | 515,817 | ||||||||||||
Commercial real estate owner occupied | 609,526 | 606,477 | ||||||||||||
Commercial real estate non-owner occupied | 2,207,124 | 2,156,929 | ||||||||||||
Commercial and industrial | 1,350,752 | 1,284,429 | ||||||||||||
Residential real estate | 1,665,304 | 1,489,248 | ||||||||||||
Home equity | 244,649 | 252,366 | ||||||||||||
Consumer other | 238,268 | 196,299 | ||||||||||||
Total loans | $ | 7,267,323 | $ | 6,825,847 | ||||||||||
Allowance for credit losses | 99,475 | 106,094 | ||||||||||||
Net loans | $ | 7,167,848 | $ | 6,719,753 |
(In thousands) | Balance at Beginning of Period | Charge-offs | Recoveries | Provision for Credit Losses | Balance at End of Period | |||||||||||||||||||||||||||
Three months ended March 31, 2022 | ||||||||||||||||||||||||||||||||
Construction | $ | 3,206 | $ | — | $ | — | $ | (701) | $ | 2,505 | ||||||||||||||||||||||
Commercial multifamily | 6,120 | — | — | (349) | 5,771 | |||||||||||||||||||||||||||
Commercial real estate owner occupied | 12,752 | (130) | 209 | (1,333) | 11,498 | |||||||||||||||||||||||||||
Commercial real estate non-owner occupied | 32,106 | (4,884) | 1,266 | (2,674) | 25,814 | |||||||||||||||||||||||||||
Commercial and industrial | 22,584 | (653) | 1,288 | (270) | 22,949 | |||||||||||||||||||||||||||
Residential real estate | 22,406 | (164) | 388 | (4,814) | 17,816 | |||||||||||||||||||||||||||
Home equity | 4,006 | — | 134 | (837) | 3,303 | |||||||||||||||||||||||||||
Consumer other | 2,914 | (216) | 137 | 6,984 | 9,819 | |||||||||||||||||||||||||||
Total allowance for credit losses | $ | 106,094 | $ | (6,047) | $ | 3,422 | $ | (3,994) | $ | 99,475 |
(In thousands) | Balance at Beginning of Period | Charge-offs | Recoveries | Provision for Credit Losses | Balance at End of Period | |||||||||||||||||||||||||||
Three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||
Construction | $ | 5,111 | $ | — | $ | — | $ | (714) | $ | 4,397 | ||||||||||||||||||||||
Commercial multifamily | 5,916 | (124) | 62 | 497 | 6,351 | |||||||||||||||||||||||||||
Commercial real estate owner occupied | 12,380 | (376) | 12 | 2,241 | 14,257 | |||||||||||||||||||||||||||
Commercial real estate non-owner occupied | 35,850 | (6,658) | 126 | 5,243 | 34,561 | |||||||||||||||||||||||||||
Commercial and industrial | 25,013 | (3,320) | 644 | 3,734 | 26,071 | |||||||||||||||||||||||||||
Residential real estate | 28,491 | (377) | 437 | (2,751) | 25,800 | |||||||||||||||||||||||||||
Home equity | 6,482 | (77) | 24 | (680) | 5,749 | |||||||||||||||||||||||||||
Consumer other | 8,059 | (528) | 160 | (1,077) | 6,614 | |||||||||||||||||||||||||||
Total allowance for credit losses | $ | 127,302 | $ | (11,460) | $ | 1,465 | $ | 6,493 | $ | 123,800 |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Balance at beginning of period | $ | 7,043 | $ | 7,629 | ||||||||||
Expense for credit losses | — | 200 | ||||||||||||
Balance at end of period | $ | 7,043 | $ | 7,829 |
Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total | ||||||||||||||||||||
As of March 31, 2022 | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Risk rating | |||||||||||||||||||||||||||||
Pass | $ | 23,309 | $ | 101,236 | $ | 28,394 | $ | 90,605 | $ | 33,505 | $ | 4,932 | $ | 49 | $ | — | $ | 282,030 | |||||||||||
Special Mention | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Substandard | — | — | — | — | 28,748 | — | — | — | 28,748 | ||||||||||||||||||||
Total | $ | 23,309 | $ | 101,236 | $ | 28,394 | $ | 90,605 | $ | 62,253 | $ | 4,932 | $ | 49 | $ | — | $ | 310,778 | |||||||||||
Commercial multifamily: | |||||||||||||||||||||||||||||
Risk rating | |||||||||||||||||||||||||||||
Pass | $ | 125,302 | $ | 63,610 | $ | 28,023 | $ | 119,128 | $ | 69,248 | $ | 225,003 | $ | 769 | $ | — | $ | 631,083 | |||||||||||
Special Mention | — | — | 2,682 | — | 5,578 | — | — | — | 8,260 | ||||||||||||||||||||
Substandard | — | — | — | — | — | 1,445 | 134 | — | 1,579 | ||||||||||||||||||||
Total | $ | 125,302 | $ | 63,610 | $ | 30,705 | $ | 119,128 | $ | 74,826 | $ | 226,448 | $ | 903 | $ | — | $ | 640,922 | |||||||||||
Commercial real estate owner occupied: | |||||||||||||||||||||||||||||
Risk rating | |||||||||||||||||||||||||||||
Pass | $ | 26,695 | $ | 147,396 | $ | 49,844 | $ | 85,077 | $ | 87,214 | $ | 195,950 | $ | 3,344 | $ | — | $ | 595,520 | |||||||||||
Special Mention | — | — | 396 | 1,609 | 262 | 1,395 | — | — | 3,662 | ||||||||||||||||||||
Substandard | — | — | 116 | 856 | 1,576 | 7,796 | — | — | 10,344 | ||||||||||||||||||||
Total | $ | 26,695 | $ | 147,396 | $ | 50,356 | $ | 87,542 | $ | 89,052 | $ | 205,141 | $ | 3,344 | $ | — | $ | 609,526 | |||||||||||
Commercial real estate non-owner occupied: | |||||||||||||||||||||||||||||
Risk rating | |||||||||||||||||||||||||||||
Pass | $ | 228,720 | $ | 425,619 | $ | 169,251 | $ | 260,590 | $ | 333,773 | $ | 667,716 | $ | 18,161 | $ | — | $ | 2,103,830 | |||||||||||
Special Mention | — | — | — | 11,119 | 13,737 | 29,310 | — | — | 54,166 | ||||||||||||||||||||
Substandard | — | — | 7,504 | — | 3,066 | 38,459 | 99 | — | 49,128 | ||||||||||||||||||||
Total | $ | 228,720 | $ | 425,619 | $ | 176,755 | $ | 271,709 | $ | 350,576 | $ | 735,485 | $ | 18,260 | $ | — | $ | 2,207,124 | |||||||||||
Commercial and industrial: | |||||||||||||||||||||||||||||
Risk rating | |||||||||||||||||||||||||||||
Pass | $ | 76,088 | $ | 182,930 | $ | 110,615 | $ | 93,214 | $ | 132,957 | $ | 167,828 | $ | 519,051 | $ | — | $ | 1,282,683 | |||||||||||
Special Mention | — | — | 1,296 | 9,857 | 3,157 | 1,244 | 19,264 | — | 34,818 | ||||||||||||||||||||
Substandard | — | 465 | 2,416 | 8,128 | 2,781 | 4,285 | 14,949 | — | 33,024 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | 14 | 213 | — | 227 | ||||||||||||||||||||
Total | $ | 76,088 | $ | 183,395 | $ | 114,327 | $ | 111,199 | $ | 138,895 | $ | 173,371 | $ | 553,477 | $ | — | $ | 1,350,752 | |||||||||||
Residential real estate | |||||||||||||||||||||||||||||
Risk rating | |||||||||||||||||||||||||||||
Pass | $ | 225,079 | $ | 259,363 | $ | 107,629 | $ | 81,674 | $ | 153,406 | $ | 820,956 | $ | 291 | $ | — | $ | 1,648,398 | |||||||||||
Special Mention | — | — | 328 | — | — | 499 | — | — | 827 | ||||||||||||||||||||
Substandard | — | 854 | 13 | 425 | 2,031 | 12,756 | — | — | 16,079 | ||||||||||||||||||||
Total | $ | 225,079 | $ | 260,217 | $ | 107,970 | $ | 82,099 | $ | 155,437 | $ | 834,211 | $ | 291 | $ | — | $ | 1,665,304 |
Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||
(In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total | ||||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Risk rating | |||||||||||||||||||||||||||||
Pass | $ | 71,784 | $ | 52,725 | $ | 117,784 | $ | 66,950 | $ | 3,839 | $ | 1,721 | $ | 50 | $ | — | $ | 314,853 | |||||||||||
Special Mention | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Substandard | — | — | — | 9,429 | — | — | — | — | 9,429 | ||||||||||||||||||||
Total | $ | 71,784 | $ | 52,725 | $ | 117,784 | $ | 76,379 | $ | 3,839 | $ | 1,721 | $ | 50 | $ | — | $ | 324,282 | |||||||||||
Commercial multifamily: | |||||||||||||||||||||||||||||
Risk rating | |||||||||||||||||||||||||||||
Pass | $ | 63,630 | $ | 28,172 | $ | 98,455 | $ | 59,720 | $ | 76,699 | $ | 176,020 | $ | 457 | $ | — | $ | 503,153 | |||||||||||
Special Mention | — | 2,700 | — | 5,598 | — | — | — | — | 8,298 | ||||||||||||||||||||
Substandard | — | — | — | — | — | 4,230 | 136 | — | 4,366 | ||||||||||||||||||||
Total | $ | 63,630 | $ | 30,872 | $ | 98,455 | $ | 65,318 | $ | 76,699 | $ | 180,250 | $ | 593 | $ | — | $ | 515,817 | |||||||||||
Commercial real estate owner occupied: | |||||||||||||||||||||||||||||
Risk rating | |||||||||||||||||||||||||||||
Pass | $ | 154,434 | $ | 50,236 | $ | 85,687 | $ | 91,316 | $ | 45,995 | $ | 157,346 | $ | 3,206 | $ | — | $ | 588,220 | |||||||||||
Special Mention | — | 525 | 869 | 1,668 | 1,405 | 1,157 | — | — | 5,624 | ||||||||||||||||||||
Substandard | — | — | 2,113 | 1,593 | 838 | 8,089 | — | — | 12,633 | ||||||||||||||||||||
Total | $ | 154,434 | $ | 50,761 | $ | 88,669 | $ | 94,577 | $ | 48,238 | $ | 166,592 | $ | 3,206 | $ | — | $ | 606,477 | |||||||||||
Commercial real estate non-owner occupied: | |||||||||||||||||||||||||||||
Risk rating | |||||||||||||||||||||||||||||
Pass | $ | 426,086 | $ | 176,172 | $ | 296,985 | $ | 349,947 | $ | 204,043 | $ | 585,044 | $ | 19,511 | $ | — | $ | 2,057,788 | |||||||||||
Special Mention | — | 221 | 3,472 | 7,632 | 2,302 | 27,268 | — | — | 40,895 | ||||||||||||||||||||
Substandard | — | 7,588 | — | 2,784 | 33,472 | 14,303 | 99 | — | 58,246 | ||||||||||||||||||||
Total | $ | 426,086 | $ | 183,981 | $ | 300,457 | $ | 360,363 | $ | 239,817 | $ | 626,615 | $ | 19,610 | $ | — | $ | 2,156,929 | |||||||||||
Commercial and industrial: | |||||||||||||||||||||||||||||
Risk rating | |||||||||||||||||||||||||||||
Pass | $ | 187,257 | $ | 130,520 | $ | 114,153 | $ | 156,443 | $ | 54,190 | $ | 136,837 | $ | 424,393 | $ | — | $ | 1,203,793 | |||||||||||
Special Mention | 661 | 1,691 | 10,824 | 5,092 | 1,433 | 488 | 22,468 | — | 42,657 | ||||||||||||||||||||
Substandard | 211 | 2,494 | 9,609 | 3,145 | 2,020 | 2,330 | 17,935 | — | 37,744 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | 15 | 220 | — | 235 | ||||||||||||||||||||
Total | $ | 188,129 | $ | 134,705 | $ | 134,586 | $ | 164,680 | $ | 57,643 | $ | 139,670 | $ | 465,016 | $ | — | $ | 1,284,429 | |||||||||||
Residential real estate | |||||||||||||||||||||||||||||
Risk rating | |||||||||||||||||||||||||||||
Pass | $ | 214,306 | $ | 114,536 | $ | 86,997 | $ | 169,537 | $ | 189,980 | $ | 697,401 | $ | 293 | $ | — | $ | 1,473,050 | |||||||||||
Special Mention | — | — | — | 120 | 502 | 1,557 | — | — | 2,179 | ||||||||||||||||||||
Substandard | 1,239 | — | 142 | 1,849 | 2,161 | 8,628 | — | — | 14,019 | ||||||||||||||||||||
Total | $ | 215,545 | $ | 114,536 | $ | 87,139 | $ | 171,506 | $ | 192,643 | $ | 707,586 | $ | 293 | $ | — | $ | 1,489,248 |
Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total | ||||||||||||||||||||
As of March 31, 2022 | |||||||||||||||||||||||||||||
Home equity: | |||||||||||||||||||||||||||||
Payment performance | |||||||||||||||||||||||||||||
Performing | $ | — | $ | 122 | $ | 464 | $ | — | $ | — | $ | 22 | $ | 242,052 | $ | — | $ | 242,660 | |||||||||||
Nonperforming | — | — | — | — | — | — | 1,989 | — | 1,989 | ||||||||||||||||||||
Total | $ | — | $ | 122 | $ | 464 | $ | — | $ | — | $ | 22 | $ | 244,041 | $ | — | $ | 244,649 | |||||||||||
Consumer other: | |||||||||||||||||||||||||||||
Payment performance | |||||||||||||||||||||||||||||
Performing | $ | 68,740 | $ | 35,602 | $ | 10,303 | $ | 18,878 | $ | 48,084 | $ | 47,445 | $ | 6,902 | $ | — | $ | 235,954 | |||||||||||
Nonperforming | — | 92 | 39 | 263 | 733 | 1,167 | 20 | — | 2,314 | ||||||||||||||||||||
Total | $ | 68,740 | $ | 35,694 | $ | 10,342 | $ | 19,141 | $ | 48,817 | $ | 48,612 | $ | 6,922 | $ | — | $ | 238,268 |
Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||
(In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total | ||||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||||||||
Home equity: | |||||||||||||||||||||||||||||
Payment performance | |||||||||||||||||||||||||||||
Performing | $ | 125 | $ | 469 | $ | — | $ | — | $ | — | $ | 24 | $ | 249,590 | $ | — | $ | 250,208 | |||||||||||
Nonperforming | — | — | — | — | — | — | 2,158 | — | 2,158 | ||||||||||||||||||||
Total | $ | 125 | $ | 469 | $ | — | $ | — | $ | — | $ | 24 | $ | 251,748 | $ | — | $ | 252,366 | |||||||||||
Consumer other: | |||||||||||||||||||||||||||||
Payment performance | |||||||||||||||||||||||||||||
Performing | $ | 37,994 | $ | 11,189 | $ | 21,548 | $ | 55,577 | $ | 30,632 | $ | 28,797 | $ | 7,505 | $ | — | $ | 193,242 | |||||||||||
Nonperforming | 8 | 46 | 290 | 797 | 746 | 1,139 | 31 | — | 3,057 | ||||||||||||||||||||
Total | $ | 38,002 | $ | 11,235 | $ | 21,838 | $ | 56,374 | $ | 31,378 | $ | 29,936 | $ | 7,536 | $ | — | $ | 196,299 |
(In thousands) | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | Current | Total Loans | ||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Construction | $ | — | $ | — | $ | — | $ | — | $ | 310,778 | $ | 310,778 | ||||||||||||||||||||||||||
Commercial multifamily | — | — | 182 | 182 | 640,740 | 640,922 | ||||||||||||||||||||||||||||||||
Commercial real estate owner occupied | 225 | — | 4,263 | 4,488 | 605,038 | 609,526 | ||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied | 2,342 | 26 | 4,923 | 7,291 | 2,199,833 | 2,207,124 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 3,979 | 476 | 7,450 | 11,905 | 1,338,847 | 1,350,752 | ||||||||||||||||||||||||||||||||
Residential real estate | 3,821 | 828 | 15,263 | 19,912 | 1,645,392 | 1,665,304 | ||||||||||||||||||||||||||||||||
Home equity | 188 | 70 | 1,989 | 2,247 | 242,402 | 244,649 | ||||||||||||||||||||||||||||||||
Consumer other | 1,366 | 198 | 2,224 | 3,788 | 234,480 | 238,268 | ||||||||||||||||||||||||||||||||
Total | $ | 11,921 | $ | 1,598 | $ | 36,294 | $ | 49,813 | $ | 7,217,510 | $ | 7,267,323 |
(In thousands) | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | Current | Total Loans | ||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Construction | $ | — | $ | — | $ | — | $ | — | $ | 324,282 | $ | 324,282 | ||||||||||||||||||||||||||
Commercial multifamily | 82 | 306 | 187 | 575 | 515,242 | 515,817 | ||||||||||||||||||||||||||||||||
Commercial real estate owner occupied | — | 400 | 4,221 | 4,621 | 601,856 | 606,477 | ||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied | 25,420 | 653 | 9,049 | 35,122 | 2,121,807 | 2,156,929 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 2,700 | 709 | 6,836 | 10,245 | 1,274,184 | 1,284,429 | ||||||||||||||||||||||||||||||||
Residential real estate | 5,529 | 2,015 | 13,264 | 20,808 | 1,468,440 | 1,489,248 | ||||||||||||||||||||||||||||||||
Home equity | 258 | 108 | 2,158 | 2,524 | 249,842 | 252,366 | ||||||||||||||||||||||||||||||||
Consumer other | 1,363 | 320 | 2,882 | 4,565 | 191,734 | 196,299 | ||||||||||||||||||||||||||||||||
Total | $ | 35,352 | $ | 4,511 | $ | 38,597 | $ | 78,460 | $ | 6,747,387 | $ | 6,825,847 |
(In thousands) | Nonaccrual Amortized Cost | Nonaccrual With No Related Allowance | Past Due 90 Days or Greater and Accruing | Interest Income Recognized on Nonaccrual | ||||||||||||||||||||||
At or for the three months ended March 31, 2022 | ||||||||||||||||||||||||||
Construction | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Commercial multifamily | 182 | 182 | — | — | ||||||||||||||||||||||
Commercial real estate owner occupied | 3,726 | 2,477 | 537 | — | ||||||||||||||||||||||
Commercial real estate non-owner occupied | 4,751 | 94 | 172 | — | ||||||||||||||||||||||
Commercial and industrial | 5,619 | 746 | 1,831 | — | ||||||||||||||||||||||
Residential real estate | 11,678 | 6,946 | 3,585 | — | ||||||||||||||||||||||
Home equity | 1,719 | 132 | 270 | — | ||||||||||||||||||||||
Consumer other | 2,006 | 4 | 218 | — | ||||||||||||||||||||||
Total | $ | 29,681 | $ | 10,581 | $ | 6,613 | $ | — |
(In thousands) | Nonaccrual Amortized Cost | Nonaccrual With No Related Allowance | Past Due 90 Days or Greater and Accruing | Interest Income Recognized on Nonaccrual | ||||||||||||||||||||||
At or for the three months ended December 31, 2021 | ||||||||||||||||||||||||||
Construction | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Commercial multifamily | 187 | 187 | — | — | ||||||||||||||||||||||
Commercial real estate owner occupied | 4,221 | 2,413 | — | — | ||||||||||||||||||||||
Commercial real estate non-owner occupied | 8,877 | 8,412 | 172 | — | ||||||||||||||||||||||
Commercial and industrial | 6,747 | 1,506 | 89 | — | ||||||||||||||||||||||
Residential real estate | 10,698 | 6,511 | 2,566 | — | ||||||||||||||||||||||
Home equity | 1,901 | 141 | 257 | — | ||||||||||||||||||||||
Consumer other | 2,695 | 4 | 187 | — | ||||||||||||||||||||||
Total | $ | 35,326 | $ | 19,174 | $ | 3,271 | $ | — |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Non-Accrual | $ | 29,681 | $ | 35,326 | ||||||||||
Substandard Accruing | 113,755 | 106,560 | ||||||||||||
Total Classified | 143,436 | 141,886 | ||||||||||||
Special Mention | 101,992 | 100,071 | ||||||||||||
Total Criticized | $ | 245,428 | $ | 241,957 |
Type of Collateral | ||||||||||||||||||||
(In thousands) | Real Estate | Investment Securities/Cash | Other | |||||||||||||||||
March 31, 2022 | ||||||||||||||||||||
Construction | $ | 9,429 | $ | — | $ | — | ||||||||||||||
Commercial multifamily | 184 | — | — | |||||||||||||||||
Commercial real estate owner occupied | 3,628 | — | — | |||||||||||||||||
Commercial real estate non-owner occupied | 5,481 | — | — | |||||||||||||||||
Commercial and industrial | 623 | — | 1,040 | |||||||||||||||||
Residential real estate | 6,563 | — | — | |||||||||||||||||
Home equity | 253 | — | — | |||||||||||||||||
Consumer other | 6 | — | — | |||||||||||||||||
Total loans | $ | 26,167 | $ | — | $ | 1,040 | ||||||||||||||
December 31, 2021 | ||||||||||||||||||||
Construction | $ | 9,429 | $ | — | $ | — | ||||||||||||||
Commercial multifamily | 188 | — | — | |||||||||||||||||
Commercial real estate owner occupied | 4,466 | — | — | |||||||||||||||||
Commercial real estate non-owner occupied | 9,501 | — | — | |||||||||||||||||
Commercial and industrial | 526 | — | 1,040 | |||||||||||||||||
Residential real estate | 7,035 | — | — | |||||||||||||||||
Home equity | 262 | — | — | |||||||||||||||||
Consumer other | 2 | — | — | |||||||||||||||||
Total loans | $ | 31,409 | $ | — | $ | 1,040 | ||||||||||||||
(In thousands) | Balance at Beginning of Period | Principal Payments | TDR Status Change | Other Additions/(Reductions) | Newly Identified TDRs | Balance at End of Period | ||||||||||||||||||||||||||||||||
Three months ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Construction | $ | 9,429 | $ | — | $ | — | $ | — | $ | — | $ | 9,429 | ||||||||||||||||||||||||||
Commercial multifamily | 703 | (9) | — | — | — | 694 | ||||||||||||||||||||||||||||||||
Commercial real estate owner occupied | 2,733 | (9) | — | — | — | 2,724 | ||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied | 9,310 | — | — | (8,312) | — | 998 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 3,656 | (51) | — | (13) | — | 3,592 | ||||||||||||||||||||||||||||||||
Residential real estate | 1,117 | (8) | — | — | — | 1,109 | ||||||||||||||||||||||||||||||||
Home equity | 121 | (2) | — | — | 50 | 169 | ||||||||||||||||||||||||||||||||
Consumer other | 33 | (1) | — | — | — | 32 | ||||||||||||||||||||||||||||||||
Total | $ | 27,102 | $ | (80) | $ | — | $ | (8,325) | $ | 50 | $ | 18,747 |
(In thousands) | Balance at Beginning of Period | Principal Payments | TDR Status Change | Other Additions/(Reductions) | Newly Identified TDRs | Balance at End of Period | ||||||||||||||||||||||||||||||||
Three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Commercial multifamily | 754 | (13) | — | — | — | 741 | ||||||||||||||||||||||||||||||||
Commercial real estate owner occupied | 1,731 | (6) | — | — | — | 1,725 | ||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied | 13,684 | (14) | — | 511 | 544 | 14,725 | ||||||||||||||||||||||||||||||||
Commercial and industrial | 2,686 | (199) | — | — | 146 | 2,633 | ||||||||||||||||||||||||||||||||
Residential real estate | 1,524 | (31) | — | — | — | 1,493 | ||||||||||||||||||||||||||||||||
Home equity | 133 | (3) | — | — | — | 130 | ||||||||||||||||||||||||||||||||
Consumer other | 36 | (2) | — | — | — | 34 | ||||||||||||||||||||||||||||||||
Total | $ | 20,548 | $ | (268) | $ | — | $ | 511 | $ | 690 | $ | 21,481 |
(dollars in thousands) | Total | |||||||
Three months ended March 31, 2022 | ||||||||
TDR: | ||||||||
Number of loans | 1 | |||||||
Pre-modification outstanding recorded investment | $ | 50 | ||||||
Post-modification outstanding recorded investment | $ | 50 | ||||||
Three months ended March 31, 2021 | ||||||||
TDR: | ||||||||
Number of loans | 4 | |||||||
Pre-modification outstanding recorded investment | $ | 690 | ||||||
Post-modification outstanding recorded investment | $ | 690 |
(in thousands) | Number of Loans | Recorded Investment | |||||||||
Three months ended March 31, 2022 | |||||||||||
Commercial and industrial | 1 | $ | 105 | ||||||||
Total | 1 | $ | 105 |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Time less than $100,000 | $ | 543,728 | $ | 676,979 | ||||||||||
Time $100,000 through $250,000 | 623,928 | 610,174 | ||||||||||||
Time more than $250,000 | 361,266 | 391,787 | ||||||||||||
Total time deposits | $ | 1,528,922 | $ | 1,678,940 |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Weighted | Weighted | |||||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||||
(Dollars in thousands) | Principal | Rate | Principal | Rate | ||||||||||||||||||||||
Short-term borrowings: | ||||||||||||||||||||||||||
Advances from the FHLB | $ | — | — | % | $ | — | — | % | ||||||||||||||||||
Total short-term borrowings: | — | — | — | — | ||||||||||||||||||||||
Long-term borrowings: | ||||||||||||||||||||||||||
Advances from the FHLB and other borrowings | 14,563 | 1.60 | 13,331 | 1.75 | ||||||||||||||||||||||
Subordinated borrowings | 74,633 | 7.00 | 74,590 | 7.00 | ||||||||||||||||||||||
Junior subordinated borrowing - Trust I | 15,464 | 2.33 | 15,464 | 2.01 | ||||||||||||||||||||||
Junior subordinated borrowing - Trust II | 7,472 | 2.53 | 7,459 | 1.90 | ||||||||||||||||||||||
Total long-term borrowings: | 112,132 | 5.36 | 110,844 | 5.33 | ||||||||||||||||||||||
Total | $ | 112,132 | 5.36 | % | $ | 110,844 | 5.33 | % |
March 31, 2022 | ||||||||||||||
Weighted Average | ||||||||||||||
(In thousands, except rates) | Principal | Rate | ||||||||||||
Fixed rate advances maturing: | ||||||||||||||
2022 | $ | 3,999 | 2.04 | % | ||||||||||
2023 | — | — | ||||||||||||
2024 | 35 | — | ||||||||||||
2025 | 5,971 | 1.99 | ||||||||||||
2025 and beyond | 4,558 | 0.72 | ||||||||||||
Total FHLB advances | $ | 14,563 | 1.60 | % |
Weighted | Weighted Average Rate | Estimated | |||||||||||||||||||||||||||
Notional | Average | Contract | Fair Value | ||||||||||||||||||||||||||
Amount | Maturity | Received | pay rate | Asset (Liability) | |||||||||||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||||||||||||
Economic hedges: | |||||||||||||||||||||||||||||
Interest rate swap on tax advantaged economic development bond | $ | 7,677 | 7.7 | 0.60 | % | 5.09 | % | $ | (726) | ||||||||||||||||||||
Interest rate swaps on loans with commercial loan customers | 1,688,052 | 6.0 | 3.97 | % | 2.01 | % | (2,540) | ||||||||||||||||||||||
Offsetting interest rate swaps on loans with commercial loan customers (1) | 1,688,052 | 6.0 | 2.01 | % | 3.97 | % | 6,179 | ||||||||||||||||||||||
Risk participation agreements with dealer banks | 329,679 | 5.5 | 324 | ||||||||||||||||||||||||||
Forward sale commitments | 307 | 0.2 | 7 | ||||||||||||||||||||||||||
Total economic hedges | 3,713,767 | 3,244 | |||||||||||||||||||||||||||
Non-hedging derivatives: | |||||||||||||||||||||||||||||
Commitments to lend | 1,184 | 0.2 | 18 | ||||||||||||||||||||||||||
Total non-hedging derivatives | 1,184 | 18 | |||||||||||||||||||||||||||
Total | $ | 3,714,951 | $ | 3,262 |
Weighted | Weighted Average Rate | Estimated | |||||||||||||||||||||||||||
Notional | Average | Contract | Fair Value | ||||||||||||||||||||||||||
Amount | Maturity | Received | pay rate | Asset (Liability) | |||||||||||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||||||||||||
Economic hedges: | |||||||||||||||||||||||||||||
Interest rate swap on tax advantaged economic development bond | $ | 7,879 | 7.9 | 0.47 | % | 5.09 | % | $ | (1,158) | ||||||||||||||||||||
Interest rate swaps on loans with commercial loan customers | 1,684,238 | 5.8 | 3.99 | % | 1.91 | % | 74,348 | ||||||||||||||||||||||
Offsetting interest rate swaps on loans with commercial loan customers (1) | 1,684,238 | 5.8 | 1.91 | % | 3.99 | % | (30,454) | ||||||||||||||||||||||
Risk participation agreements with dealer banks | 320,981 | 5.8 | 432 | ||||||||||||||||||||||||||
Forward sale commitments | 6,377 | 0.2 | 134 | ||||||||||||||||||||||||||
Total economic hedges | 3,703,713 | 43,302 | |||||||||||||||||||||||||||
Non-hedging derivatives: | |||||||||||||||||||||||||||||
Commitments to lend | 8,192 | 0.2 | 124 | ||||||||||||||||||||||||||
Total non-hedging derivatives | 8,192 | 124 | |||||||||||||||||||||||||||
Total | $ | 3,711,905 | $ | 43,426 |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2022 | 2021 | |||||||||
Economic hedges | |||||||||||
Interest rate swap on industrial revenue bond: | |||||||||||
Unrealized gain recognized in other non-interest income | $ | 432 | $ | 346 | |||||||
Interest rate swaps on loans with commercial loan customers: | |||||||||||
Unrealized (loss) recognized in other non-interest income | (78,698) | (60,302) | |||||||||
Favorable change in credit valuation adjustment recognized in other non-interest income | 867 | 2,502 | |||||||||
Offsetting interest rate swaps on loans with commercial loan customers: | |||||||||||
Unrealized gain recognized in other non-interest income | 78,698 | 60,302 | |||||||||
Risk participation agreements: | |||||||||||
Unrealized (loss) recognized in other non-interest income | (108) | (329) | |||||||||
Forward commitments: | |||||||||||
Unrealized (loss)/gain recognized in other non-interest income | (127) | 6 | |||||||||
Realized gain/(loss) in other non-interest income | — | (6) | |||||||||
Non-hedging derivatives | |||||||||||
Commitments to lend | |||||||||||
Unrealized (loss) recognized in other non-interest income | $ | (106) | $ | (550) | |||||||
Realized gain in other non-interest income | 252 | 1,352 | |||||||||
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Assets Presented in the | Gross Amounts Not Offset in the Statements of Condition | |||||||||||||||||||||||||||||||||||
Recognized | Statements of | Statements of | Financial | Cash | ||||||||||||||||||||||||||||||||||
(In thousands) | Assets | Condition | Condition | Instruments | Collateral Received | Net Amount | ||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Interest Rate Swap Agreements: | ||||||||||||||||||||||||||||||||||||||
Institutional counterparties | $ | 26,748 | $ | (49) | $ | 26,699 | $ | — | $ | — | $ | 26,699 | ||||||||||||||||||||||||||
Commercial counterparties | 22,748 | — | 22,748 | — | — | 22,748 | ||||||||||||||||||||||||||||||||
Total | $ | 49,496 | $ | (49) | $ | 49,447 | $ | — | $ | — | $ | 49,447 |
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Liabilities Presented in the | Gross Amounts Not Offset in the Statements of Condition | |||||||||||||||||||||||||||||||||||
Recognized | Statements of | Statements of | Financial | Cash | ||||||||||||||||||||||||||||||||||
(In thousands) | Liabilities | Condition | Condition | Instruments | Collateral Pledged | Net Amount | ||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Interest Rate Swap Agreements: | ||||||||||||||||||||||||||||||||||||||
Institutional counterparties | $ | (24,005) | $ | 3,712 | $ | (20,293) | $ | 45,288 | $ | 38,609 | $ | 63,604 | ||||||||||||||||||||||||||
Commercial counterparties | (25,288) | — | (25,288) | — | — | (25,288) | ||||||||||||||||||||||||||||||||
Total | $ | (49,293) | $ | 3,712 | $ | (45,581) | $ | 45,288 | $ | 38,609 | $ | 38,316 |
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Assets Presented in the | Gross Amounts Not Offset in the Statements of Condition | |||||||||||||||||||||||||||||||||||
Recognized | Statements of | Statements of | Financial | Cash | ||||||||||||||||||||||||||||||||||
(In thousands) | Assets | Condition | Condition | Instruments | Collateral Received | Net Amount | ||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Interest Rate Swap Agreements: | ||||||||||||||||||||||||||||||||||||||
Institutional counterparties | $ | 2,223 | $ | (75) | $ | 2,148 | $ | — | $ | — | $ | 2,148 | ||||||||||||||||||||||||||
Commercial counterparties | 76,809 | — | 76,809 | — | — | 76,809 | ||||||||||||||||||||||||||||||||
Total | $ | 79,032 | $ | (75) | $ | 78,957 | $ | — | $ | — | $ | 78,957 |
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Liabilities Presented in the | Gross Amounts Not Offset in the Statements of Condition | |||||||||||||||||||||||||||||||||||
Recognized | Statements of | Statements of | Financial | Cash | ||||||||||||||||||||||||||||||||||
(In thousands) | Liabilities | Condition | Condition | Instruments | Collateral Pledged | Net Amount | ||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Interest Rate Swap Agreements: | ||||||||||||||||||||||||||||||||||||||
Institutional counterparties | $ | (78,146) | $ | 44,814 | $ | (33,332) | $ | 34,896 | $ | 43,694 | $ | 45,258 | ||||||||||||||||||||||||||
Commercial counterparties | (2,461) | — | (2,461) | — | — | (2,461) | ||||||||||||||||||||||||||||||||
Total | $ | (80,607) | $ | 44,814 | $ | (35,793) | $ | 34,896 | $ | 43,694 | $ | 42,797 |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||||||||
Lease Right-of-Use Assets | Classification | |||||||||||||||||||
Operating lease right-of-use assets | $ | 53,641 | $ | 52,180 | ||||||||||||||||
Finance lease right-of-use assets | 6,543 | 6,674 | ||||||||||||||||||
Total Lease Right-of-Use Assets | $ | 60,184 | $ | 58,854 | ||||||||||||||||
Lease Liabilities | ||||||||||||||||||||
Operating lease liabilities | $ | 57,085 | $ | 55,674 | ||||||||||||||||
Finance lease liabilities | 9,725 | 9,862 | ||||||||||||||||||
Total Lease Liabilities | $ | 66,810 | $ | 65,536 |
March 31, 2022 | December 31, 2021 | ||||||||||
Weighted-Average Remaining Lease Term (in years) | |||||||||||
Operating leases | 9.5 | 9.5 | |||||||||
Finance leases | 12.6 | 12.8 | |||||||||
Weighted-Average Discount Rate | |||||||||||
Operating leases | 2.59 | % | 2.77 | % | |||||||
Finance leases | 5.00 | % | 5.00 | % |
Three Months Ended | ||||||||||||||
(In thousands) | March 31, 2022 | March 31, 2021 | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows from operating leases | $ | 2,614 | $ | 3,330 | ||||||||||
Operating cash flows from finance leases | 120 | 127 | ||||||||||||
Financing cash flows from finance leases | 138 | 131 |
(In thousands) | Operating Leases | Finance Leases | ||||||||||||
2022 | $ | 7,499 | $ | 772 | ||||||||||
2023 | 9,192 | 1,037 | ||||||||||||
2024 | 7,993 | 1,037 | ||||||||||||
2025 | 6,215 | 1,037 | ||||||||||||
2026 | 4,992 | 1,037 | ||||||||||||
Thereafter | 28,683 | 8,187 | ||||||||||||
Total undiscounted lease payments | 64,574 | 13,107 | ||||||||||||
Less amounts representing interest | (7,489) | (3,382) | ||||||||||||
Lease liability | $ | 57,085 | $ | 9,725 |
March 31, 2022 | December 31, 2021 | Minimum Capital Requirement | ||||||||||||||||||
Company (consolidated) | ||||||||||||||||||||
Total capital to risk-weighted assets | 16.0 | % | 17.3 | % | 8.0 | % | ||||||||||||||
Common equity tier 1 capital to risk-weighted assets | 13.9 | 15.0 | 4.5 | |||||||||||||||||
Tier 1 capital to risk-weighted assets | 14.2 | 15.3 | 6.0 | |||||||||||||||||
Tier 1 capital to average assets | 10.3 | 10.5 | 4.0 |
March 31, 2022 | December 31, 2021 | Regulatory Minimum to be Adequately Capitalized | Regulatory Minimum to be Well Capitalized | |||||||||||||||||||||||
Bank | ||||||||||||||||||||||||||
Total capital to risk-weighted assets | 14.5 | % | 15.9 | % | 8.0 | % | 10.0 | % | ||||||||||||||||||
Common equity tier 1 capital to risk-weighted assets | 13.5 | 14.8 | 4.5 | 6.5 | ||||||||||||||||||||||
Tier 1 capital to risk-weighted assets | 13.5 | 14.8 | 6.0 | 8.0 | ||||||||||||||||||||||
Tier 1 capital to average assets | 9.8 | 10.1 | 4.0 | 5.0 |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Other accumulated comprehensive income, before tax: | ||||||||||||||
Net unrealized holding loss on AFS securities | $ | (103,179) | $ | (1,806) | ||||||||||
Net unrealized holding (loss) on pension plans | (2,518) | (2,518) | ||||||||||||
Income taxes related to items of accumulated other comprehensive income: | ||||||||||||||
Net unrealized tax benefit on AFS securities | 26,786 | 407 | ||||||||||||
Net unrealized tax benefit on pension plans | 674 | 674 | ||||||||||||
Accumulated other comprehensive loss | $ | (78,237) | $ | (3,243) |
(In thousands) | Before Tax | Tax Effect | Net of Tax | |||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||
Net unrealized holding loss on AFS securities: | x | |||||||||||||||||||
Net unrealized (losses) arising during the period | $ | (101,373) | $ | 26,379 | $ | (74,994) | ||||||||||||||
Less: reclassification adjustment for gains realized in net income | — | — | — | |||||||||||||||||
Net unrealized holding (loss) on AFS securities | (101,373) | 26,379 | (74,994) | |||||||||||||||||
Other comprehensive (loss) | $ | (101,373) | $ | 26,379 | $ | (74,994) | ||||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||||
Net unrealized holding loss on AFS securities: | ||||||||||||||||||||
Net unrealized (losses) arising during the period | $ | (27,013) | $ | 6,863 | $ | (20,150) | ||||||||||||||
Less: reclassification adjustment for gains realized in net income | — | — | — | |||||||||||||||||
Net unrealized holding (loss) on AFS securities | (27,013) | 6,863 | (20,150) | |||||||||||||||||
Other comprehensive (loss) | $ | (27,013) | $ | 6,863 | $ | (20,150) | ||||||||||||||
(In thousands) | Net unrealized holding loss on AFS Securities | Net unrealized holding loss on pension plans | Total | |||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||
Balance at Beginning of Period | $ | (1,398) | $ | (1,845) | $ | (3,243) | ||||||||||||||
Other comprehensive loss before reclassifications | (74,994) | — | (74,994) | |||||||||||||||||
Less: amounts reclassified from accumulated other comprehensive (loss) | — | — | — | |||||||||||||||||
Total other comprehensive (loss) | (74,994) | — | (74,994) | |||||||||||||||||
Balance at End of Period | $ | (76,392) | $ | (1,845) | $ | (78,237) | ||||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||||
Balance at Beginning of Period | $ | 33,458 | $ | (2,587) | $ | 30,871 | ||||||||||||||
Other comprehensive loss before reclassifications | (20,150) | — | (20,150) | |||||||||||||||||
Less: amounts reclassified from accumulated other comprehensive (loss) | — | — | — | |||||||||||||||||
Total other comprehensive (loss) | (20,150) | — | (20,150) | |||||||||||||||||
Balance at End of Period | $ | 13,308 | $ | (2,587) | $ | 10,721 | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(In thousands, except per share data) | 2022 | 2021 | ||||||||||||
Net income | $ | 20,196 | $ | 13,031 | ||||||||||
Average number of common shares issued | 51,903 | 51,903 | ||||||||||||
Less: average number of treasury shares | 3,494 | 948 | ||||||||||||
Less: average number of unvested stock award shares | 741 | 625 | ||||||||||||
Average number of basic shares outstanding | 47,668 | 50,330 | ||||||||||||
Plus: dilutive effect of unvested stock award shares | 392 | 235 | ||||||||||||
Plus: dilutive effect of stock options outstanding | 7 | — | ||||||||||||
Average number of diluted shares outstanding | 48,067 | 50,565 | ||||||||||||
Basic earnings per common share: | $ | 0.42 | $ | 0.26 | ||||||||||
Diluted earnings per common share: | $ | 0.42 | $ | 0.26 |
Non-Vested Stock Awards Outstanding | Stock Options Outstanding | ||||||||||||||||||||||||||||
(Shares in thousands) | Number of Shares | Weighted-Average Grant Date Fair Value | Number of Shares | Weighted-Average Exercise Price | |||||||||||||||||||||||||
December 31, 2021 | 710 | $ | 20.16 | 80 | $ | 25.21 | |||||||||||||||||||||||
Granted | 139 | 28.92 | — | — | |||||||||||||||||||||||||
Acquired | — | — | — | — | |||||||||||||||||||||||||
Stock options exercised | — | — | 1 | 23.30 | |||||||||||||||||||||||||
Stock awards vested | (63) | 22.09 | — | — | |||||||||||||||||||||||||
Forfeited | (36) | 27.12 | — | — | |||||||||||||||||||||||||
Expired | — | — | (3) | 23.34 | |||||||||||||||||||||||||
March 31, 2022 | 750 | $ | 21.73 | 78 | $ | 25.30 | |||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In thousands) | Inputs | Inputs | Inputs | Fair Value | |||||||||||||||||||
Trading security | $ | — | $ | — | $ | 7,798 | $ | 7,798 | |||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
U.S Treasuries | — | 290,609 | — | 290,609 | |||||||||||||||||||
Municipal bonds and obligations | — | 70,223 | — | 70,223 | |||||||||||||||||||
Agency collateralized mortgage obligations | — | 697,712 | — | 697,712 | |||||||||||||||||||
Agency residential mortgage-backed securities | — | 654,386 | — | 654,386 | |||||||||||||||||||
Agency commercial mortgage-backed securities | — | 258,324 | — | 258,324 | |||||||||||||||||||
Corporate bonds | — | 40,478 | 4,020 | 44,498 | |||||||||||||||||||
Other bonds and obligations | — | 16,823 | — | 16,823 | |||||||||||||||||||
Marketable equity securities | 14,064 | 655 | — | 14,719 | |||||||||||||||||||
Loans held for investment at fair value | — | — | 1,197 | 1,197 | |||||||||||||||||||
Loans held for sale | — | 300 | — | 300 | |||||||||||||||||||
Derivative assets | — | 49,046 | 25 | 49,071 | |||||||||||||||||||
Capitalized servicing rights | — | — | 1,786 | 1,786 | |||||||||||||||||||
Derivative liabilities | — | 45,809 | — | 45,809 |
December 31, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In thousands) | Inputs | Inputs | Inputs | Fair Value | |||||||||||||||||||
Trading security | $ | — | $ | — | $ | 8,354 | $ | 8,354 | |||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
U.S Treasuries | — | 59,973 | — | 59,973 | |||||||||||||||||||
Municipal bonds and obligations | — | 77,177 | — | 77,177 | |||||||||||||||||||
Agency collateralized mortgage obligations | — | 688,336 | — | 688,336 | |||||||||||||||||||
Agency residential mortgage-backed securities | — | 705,859 | — | 705,859 | |||||||||||||||||||
Agency commercial mortgage-backed securities | — | 282,334 | — | 282,334 | |||||||||||||||||||
Corporate bonds | — | 41,630 | 4,030 | 45,660 | |||||||||||||||||||
Other bonds and obligations | — | 18,246 | — | 18,246 | |||||||||||||||||||
Marketable equity securities | 14,798 | 655 | — | 15,453 | |||||||||||||||||||
Loans held for investment at fair value | — | — | 1,200 | 1,200 | |||||||||||||||||||
Loans held for sale | — | 6,110 | — | 6,110 | |||||||||||||||||||
Derivative assets | — | 79,270 | 258 | 79,528 | |||||||||||||||||||
Capitalized servicing rights | — | — | 1,966 | 1,966 | |||||||||||||||||||
Derivative liabilities | — | 35,194 | — | 35,194 |
Aggregate Fair Value | ||||||||||||||||||||
March 31, 2022 | Aggregate | Aggregate | Less Aggregate | |||||||||||||||||
(In thousands) | Fair Value | Unpaid Principal | Unpaid Principal | |||||||||||||||||
Loans held for investment at fair value | $ | 1,197 | $ | 23,148 | $ | (21,951) |
Aggregate Fair Value | ||||||||||||||||||||
December 31, 2021 | Aggregate | Aggregate | Less Aggregate | |||||||||||||||||
(In thousands) | Fair Value | Unpaid Principal | Unpaid Principal | |||||||||||||||||
Loans held for investment at fair value | $ | 1,200 | $ | 31,430 | $ | (30,230) |
Aggregate Fair Value | ||||||||||||||||||||
March 31, 2022 | Aggregate | Aggregate | Less Aggregate | |||||||||||||||||
(In thousands) | Fair Value | Unpaid Principal | Unpaid Principal | |||||||||||||||||
Loans held for sale | $ | 300 | $ | 291 | $ | 9 |
Aggregate Fair Value | ||||||||||||||||||||
December 31, 2021 | Aggregate | Aggregate | Less Aggregate | |||||||||||||||||
(In thousands) | Fair Value | Unpaid Principal | Unpaid Principal | |||||||||||||||||
Loans held for sale | $ | 6,110 | $ | 5,926 | $ | 184 |
Assets (Liabilities) | |||||||||||||||||||||||||||||||||||
Securities | Loans | Capitalized | |||||||||||||||||||||||||||||||||
Trading | Available | Held for | Commitments | Forward | Servicing | ||||||||||||||||||||||||||||||
(In thousands) | Security | for Sale | Investment | to Lend | Commitments | Rights | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||
December 31, 2021 | $ | 8,354 | $ | 4,030 | $ | 1,200 | $ | 124 | $ | 134 | $ | 1,966 | |||||||||||||||||||||||
Unrealized (loss)/gain, net recognized in other non-interest income | (354) | — | 209 | 70 | (127) | (180) | |||||||||||||||||||||||||||||
Unrealized gain included in accumulated other comprehensive income | — | (10) | — | — | — | — | |||||||||||||||||||||||||||||
Unrealized gain/(loss), net recognized in discontinued operations | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Paydown of asset | (202) | — | (212) | — | — | — | |||||||||||||||||||||||||||||
Transfers to held for sale loans | — | — | — | (176) | — | — | |||||||||||||||||||||||||||||
March 31, 2022 | $ | 7,798 | $ | 4,020 | $ | 1,197 | $ | 18 | $ | 7 | $ | 1,786 | |||||||||||||||||||||||
Unrealized gain relating to instruments still held at March 31, 2022 | $ | 121 | $ | 20 | $ | — | $ | 18 | $ | 7 | $ | — |
Securities | Loans | Capitalized | |||||||||||||||||||||||||||||||||
Trading | Available | Held for | Commitments | Forward | Servicing | ||||||||||||||||||||||||||||||
(In thousands) | Security | for Sale | Investment | to Lend | Commitments | Rights | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
December 31, 2020 | $ | 9,708 | $ | 15,000 | $ | 2,265 | $ | 735 | $ | 320 | $ | 3,033 | |||||||||||||||||||||||
Maturities, calls, and prepayments of AFS security | — | (15,000) | — | — | — | — | |||||||||||||||||||||||||||||
Unrealized (loss)/gain, net recognized in other non-interest income | (166) | — | 414 | 818 | 6 | (65) | |||||||||||||||||||||||||||||
Paydown of asset | (192) | — | (1,231) | — | — | — | |||||||||||||||||||||||||||||
Transfers to held for sale loans | — | — | — | (1,368) | — | — | |||||||||||||||||||||||||||||
Additions to servicing rights | — | — | — | — | — | — | |||||||||||||||||||||||||||||
March 31, 2021 | $ | 9,350 | $ | — | $ | 1,448 | $ | 185 | $ | 326 | $ | 2,968 | |||||||||||||||||||||||
Unrealized gains relating to instruments still held at March 31,2021 | $ | 887 | $ | — | $ | — | $ | 185 | $ | 326 | $ | — |
Fair Value | Significant Unobservable Input | |||||||||||||||||||||||||
(In thousands) | March 31, 2022 | Valuation Techniques | Unobservable Inputs | Value | ||||||||||||||||||||||
Assets (Liabilities) | ||||||||||||||||||||||||||
Trading security | $ | 7,798 | Discounted Cash Flow | Discount Rate | 4.32 | % | ||||||||||||||||||||
AFS Securities | 4,020 | Indication from Market Maker | Price | 101.00% | ||||||||||||||||||||||
Loans held for investment | 1,197 | Discounted Cash Flow | Discount Rate | 25.00 | % | |||||||||||||||||||||
Collateral Value | $6.3 - $16.9 | |||||||||||||||||||||||||
Commitments to lend | 18 | Historical Trend | Closing Ratio | 80.00 | % | |||||||||||||||||||||
Pricing Model | Origination Costs, per loan | $ | 3 | |||||||||||||||||||||||
Forward commitments | 7 | Historical Trend | Closing Ratio | 80.00 | % | |||||||||||||||||||||
Pricing Model | Origination Costs, per loan | $ | 3 | |||||||||||||||||||||||
Capitalized servicing rights | 1,786 | Discounted cash flow | Constant Prepayment Rate (CPR) | 12.55 | % | |||||||||||||||||||||
Discount Rate | 9.01 | % | ||||||||||||||||||||||||
Total | $ | 14,826 |
Fair Value | Significant Unobservable Input | |||||||||||||||||||||||||
(In thousands) | December 31, 2021 | Valuation Techniques | Unobservable Inputs | Value | ||||||||||||||||||||||
Assets (Liabilities) | ||||||||||||||||||||||||||
Trading security | $ | 8,354 | Discounted Cash Flow | Discount Rate | 3.35 | % | ||||||||||||||||||||
AFS Securities | 4,030 | Indication from Market Maker | Price | 101.00 | % | |||||||||||||||||||||
Loans held for investment | 1,200 | Discounted Cash Flow | Discount Rate | 25.00 | % | |||||||||||||||||||||
Collateral Value | $6.3- $19.8 | |||||||||||||||||||||||||
Commitments to lend | 124 | Historical Trend | Closing Ratio | 82.09 | % | |||||||||||||||||||||
Pricing Model | Origination Costs, per loan | $ | 3 | |||||||||||||||||||||||
Forward commitments | 134 | Historical Trend | Closing Ratio | 82.09 | % | |||||||||||||||||||||
Pricing Model | Origination Costs, per loan | $ | 3 | |||||||||||||||||||||||
Capitalized servicing rights | 1,966 | Discounted Cash Flow | Constant Prepayment Rate (CPR) | 19.41 | % | |||||||||||||||||||||
Discount Rate | 9.50 | % | ||||||||||||||||||||||||
Total | $ | 15,808 |
March 31, 2022 | December 31, 2021 | Fair Value Measurement Date as of March 31, 2022 | ||||||||||||||||||
Level 3 | Level 3 | Level 3 | ||||||||||||||||||
(In thousands) | Inputs | Inputs | Inputs | |||||||||||||||||
Assets | ||||||||||||||||||||
Individually evaluated | $ | 8,192 | $ | 12,482 | March 2022 | |||||||||||||||
Capitalized servicing rights | 13,579 | 14,056 | March 2022 | |||||||||||||||||
Total | $ | 21,771 | $ | 26,538 |
Fair Value | ||||||||||||||||||||||||||
(In thousands) | March 31, 2022 | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) (1) | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Individually evaluated | $ | 8,192 | Fair Value of Collateral | Discounted Cash Flow - Loss Severity | (100.00)% to 102.24% ((45.07)%) | |||||||||||||||||||||
Appraised Value | $0 to $4,319 ($2,497) | |||||||||||||||||||||||||
Capitalized servicing rights | 13,579 | Discounted Cash Flow | Constant Prepayment Rate (CPR) | 6.16% to 13.64% (11.51%) | ||||||||||||||||||||||
Discount Rate | 9.09% to 11.74% (10.83%) | |||||||||||||||||||||||||
Total | $ | 21,771 |
Fair Value | ||||||||||||||||||||||||||
(In thousands) | December 31, 2021 | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) (1) | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Individually evaluated | $ | 12,482 | Fair Value of Collateral | Discounted Cash Flow - loss severity | (35.96)% to 133.09% ((49.14)%) | |||||||||||||||||||||
Appraised Value | $0 to $405 ($256) | |||||||||||||||||||||||||
Capitalized servicing rights | 14,056 | Discounted Cash Flow | Constant Prepayment Rate (CPR) | 6.24% to 17.73% (13.29%) | ||||||||||||||||||||||
Discount Rate | 9.59% to 13.11% (11.97%) | |||||||||||||||||||||||||
Total | $ | 26,538 |
March 31, 2022 | ||||||||||||||||||||||||||||||||
Carrying | Fair | |||||||||||||||||||||||||||||||
(In thousands) | Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,607,251 | $ | 1,607,251 | $ | 1,607,251 | $ | — | $ | — | ||||||||||||||||||||||
Trading security | 7,798 | 7,798 | — | — | 7,798 | |||||||||||||||||||||||||||
Marketable equity securities | 14,719 | 14,719 | 14,064 | 655 | — | |||||||||||||||||||||||||||
Securities available for sale | 2,032,575 | 2,032,575 | — | 2,028,555 | 4,020 | |||||||||||||||||||||||||||
Securities held to maturity | 612,174 | 580,538 | — | 578,021 | 2,517 | |||||||||||||||||||||||||||
FHLB bank stock and restricted securities | 10,829 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Net loans | 7,167,848 | 7,224,588 | — | — | 7,224,588 | |||||||||||||||||||||||||||
Loans held for sale | 300 | 300 | — | 300 | — | |||||||||||||||||||||||||||
Accrued interest receivable | 33,813 | 33,813 | — | 33,813 | — | |||||||||||||||||||||||||||
Derivative assets | 49,071 | 49,071 | — | 49,046 | 25 | |||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Total deposits | $ | 10,699,208 | $ | 10,683,261 | $ | — | $ | 10,683,261 | $ | — | ||||||||||||||||||||||
Short-term debt | — | — | — | — | — | |||||||||||||||||||||||||||
Long-term Federal Home Loan Bank advances and other | 14,563 | 13,487 | — | 13,487 | — | |||||||||||||||||||||||||||
Subordinated borrowings | 97,569 | 94,267 | — | 94,267 | — | |||||||||||||||||||||||||||
Derivative liabilities | 45,809 | 45,809 | — | 45,809 | — |
December 31, 2021 | ||||||||||||||||||||||||||||||||
Carrying | Fair | |||||||||||||||||||||||||||||||
(In thousands) | Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,627,807 | $ | 1,627,807 | $ | 1,627,807 | $ | — | $ | — | ||||||||||||||||||||||
Trading security | 8,354 | 8,354 | — | — | 8,354 | |||||||||||||||||||||||||||
Marketable equity securities | 15,453 | 15,453 | 14,798 | 655 | — | |||||||||||||||||||||||||||
Securities available for sale and other | 1,877,585 | 1,877,585 | — | 1,873,555 | 4,030 | |||||||||||||||||||||||||||
Securities held to maturity | 636,503 | 647,236 | — | 644,497 | 2,739 | |||||||||||||||||||||||||||
FHLB bank stock and restricted securities | 10,800 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Net loans | 6,719,753 | 6,850,975 | — | — | 6,850,975 | |||||||||||||||||||||||||||
Loans held for sale | 6,110 | 6,110 | — | 6,110 | — | |||||||||||||||||||||||||||
Accrued interest receivable | 33,534 | 33,534 | — | 33,534 | — | |||||||||||||||||||||||||||
Derivative assets | 79,528 | 79,528 | — | 79,270 | 258 | |||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Total deposits | $ | 10,068,953 | $ | 10,073,217 | $ | — | $ | 10,073,217 | $ | — | ||||||||||||||||||||||
Short-term debt | — | — | — | — | — | |||||||||||||||||||||||||||
Long-term Federal Home Loan Bank advances | 13,331 | 13,053 | — | 13,053 | — | |||||||||||||||||||||||||||
Subordinated borrowings | 97,513 | 95,006 | — | 95,006 | — | |||||||||||||||||||||||||||
Derivative liabilities | 35,194 | 35,194 | — | 35,194 | — | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
(In thousands) | 2022 | 2021 | |||||||||||||||
Net interest income | $ | 69,063 | $ | 75,093 | |||||||||||||
(Benefit)/provision for credit losses | (4,000) | 6,500 | |||||||||||||||
Net interest after provision for credit losses | $ | 73,063 | $ | 68,593 |
At or for the | |||||||||||
Three Months Ended March,31, | |||||||||||
2022 | 2021 | ||||||||||
NOMINAL AND PER SHARE DATA | |||||||||||
Net earnings per common share, diluted | $ | 0.42 | $ | 0.26 | |||||||
Adjusted earnings per common share, diluted (1)(2) | 0.43 | 0.32 | |||||||||
Net income, (thousands) | 20,196 | 13,031 | |||||||||
Adjusted net income, (thousands) (1)(2) | 20,789 | 16,015 | |||||||||
Total common shares outstanding, (thousands) | 47,792 | 50,988 | |||||||||
Average diluted shares, (thousands) | 48,067 | 50,565 | |||||||||
Total book value per common share | 22.89 | 23.05 | |||||||||
Tangible book value per common share (2) | 22.30 | 22.39 | |||||||||
Dividends per common share | 0.12 | 0.12 | |||||||||
Full-time equivalent staff, continuing operations | 1,333 | 1,467 | |||||||||
PERFORMANCE RATIOS (3) | |||||||||||
Return on equity | 6.79 | % | 4.50 | % | |||||||
Adjusted return on equity (1)(2) | 6.99 | 5.53 | |||||||||
Return on tangible common equity (1)(2) | 7.29 | 4.98 | |||||||||
Adjusted return on tangible common equity (1)(2) | 7.49 | 6.04 | |||||||||
Return on assets | 0.70 | 0.42 | |||||||||
Adjusted return on assets (1)(2) | 0.72 | 0.51 | |||||||||
Net interest margin, fully taxable equivalent (FTE) (4)(6) | 2.61 | 2.62 | |||||||||
Efficiency ratio (1)(2) | 72.61 | 71.32 | |||||||||
FINANCIAL DATA (in millions, end of period) | |||||||||||
Total assets | $ | 12,097 | $ | 12,757 | |||||||
Total earning assets | 11,401 | 12,071 | |||||||||
Total loans | 7,267 | 7,659 | |||||||||
Total deposits | 10,699 | 10,244 | |||||||||
Loans/deposits (%) | 68 | % | 75 | % | |||||||
ASSET QUALITY (5) | |||||||||||
Allowance for credit losses, (millions) | $ | 99 | $ | 124 | |||||||
Net charge-offs, (millions) | (3) | (10) | |||||||||
Net charge-offs (QTD annualized)/average loans | 0.15 | % | 0.51 | % | |||||||
Provision (benefit)/expense, (millions) | $ | (4) | $ | 7 | |||||||
Non-accruing loans/total loans | 0.41 | % | 0.73 | % | |||||||
Allowance for credit losses/non-accruing loans | 335 | 222 | |||||||||
Allowance for credit losses/total loans | 1.37 | 1.62 | |||||||||
CAPITAL RATIOS | |||||||||||
Common equity tier 1 capital to risk-weighted assets | 13.9 | % | 14.2 | % | |||||||
Tier 1 capital leverage ratio | 10.3 | 9.5 | |||||||||
Tangible common shareholders' equity/tangible assets (2) | 8.8 | 9.0 |
At or for the | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
FOR THE PERIOD: (In thousands) | ||||||||||||||
Net interest income | $ | 69,063 | $ | 75,093 | ||||||||||
Non-interest income | 20,681 | 26,193 | ||||||||||||
Net revenue | 89,744 | 101,286 | ||||||||||||
(Benefit)/provision for credit losses | (4,000) | 6,500 | ||||||||||||
Non-interest expense | 68,550 | 78,154 | ||||||||||||
Net income | 20,196 | 13,031 | ||||||||||||
Adjusted income (1)(2) | 20,789 | 16,015 |
Three Months Ended March,31, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
(Dollars in millions) | Average Balance | Yield/Rate (FTE basis) | Average Balance | Yield/Rate (FTE basis) | |||||||||||||
Assets | |||||||||||||||||
Loans: | |||||||||||||||||
Commercial real estate | $ | 3,651 | 3.35 | % | $ | 3,630 | 3.27 | % | |||||||||
Commercial and industrial loans | 1,373 | 4.14 | 1,865 | 4.62 | |||||||||||||
Residential mortgages | 1,436 | 3.56 | 1,740 | 3.71 | |||||||||||||
Consumer loans | 514 | 4.24 | 634 | 3.79 | |||||||||||||
Total loans (1) | 6,974 | 3.61 | 7,869 | 3.73 | |||||||||||||
Investment securities (2) | 2,649 | 1.95 | 2,195 | 2.36 | |||||||||||||
Short-term investments & loans held for sale (3) | 1,202 | 0.17 | 1,351 | 0.13 | |||||||||||||
Mid-Atlantic region loans held for sale(4) | — | — | 295 | 4.09 | |||||||||||||
Total interest-earning assets | 10,825 | 2.82 | 11,710 | 3.07 | |||||||||||||
Intangible assets | 29 | X | 34 | ||||||||||||||
Other non-interest earning assets | 639 | 724 | |||||||||||||||
Total assets | $ | 11,493 | $ | 12,468 | |||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||
Deposits: | |||||||||||||||||
NOW and other | $ | 1,456 | 0.04 | % | $ | 1,325 | 0.15 | % | |||||||||
Money market | 2,871 | 0.16 | 2,802 | 0.27 | |||||||||||||
Savings | 1,117 | 0.03 | 1,003 | 0.08 | |||||||||||||
Time | 1,624 | 0.71 | 2,266 | 1.12 | |||||||||||||
Total interest-bearing deposits | 7,068 | 0.24 | 7,396 | 0.48 | |||||||||||||
Borrowings and notes (5) | 122 | 5.21 | 511 | 2.78 | |||||||||||||
Mid-Atlantic region interest-bearing deposits(4) | — | — | 518 | 0.60 | |||||||||||||
Total interest-bearing liabilities | 7,190 | 0.32 | 8,425 | 0.63 | |||||||||||||
Non-interest-bearing demand deposits | 2,968 | 2,537 | |||||||||||||||
Other non-interest earning liabilities | 146 | 347 | |||||||||||||||
Liabilities from discontinued operations | — | — | |||||||||||||||
Total liabilities | 10,304 | 11,309 | |||||||||||||||
Total common shareholders' equity | 1,189 | 1,159 | |||||||||||||||
Total shareholders’ equity (2) | 1,189 | 1,159 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,493 | $ | 12,468 | |||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Average Balance | Yield/Rate (FTE basis) | Average Balance | Yield/Rate (FTE basis) | ||||||||||||||
Net interest spread | 2.50 | % | 2.44 | % | |||||||||||||
Net interest margin (6) | 2.61 | 2.62 | |||||||||||||||
Cost of funds | 0.23 | 0.48 | |||||||||||||||
Cost of deposits | 0.17 | 0.36 | |||||||||||||||
Supplementary data | |||||||||||||||||
Total deposits (In millions) | $ | 10,037 | $ | 9,932 | |||||||||||||
Fully taxable equivalent income adj. (In thousands) (7) | 1,524 | 1,494 |
At or for the Three Months Ended March 31, | |||||||||||
(In thousands) | 2022 | 2021 | |||||||||
GAAP Net income/(loss) | $ | 20,196 | $ | 13,031 | |||||||
Adj: Net losses on securities (1) | 745 | 31 | |||||||||
Adj: Restructuring and other expense | 18 | 3,486 | |||||||||
Adj: Income taxes | (170) | (533) | |||||||||
Total adjusted income/(loss) (non-GAAP) (2) | (A) | $ | 20,789 | $ | 16,015 | ||||||
GAAP Total revenue | $ | 89,744 | $ | 101,286 | |||||||
Adj: Losses on securities, net (1) | 745 | 31 | |||||||||
Adj: Net (gains) on sale of business operations and assets | — | — | |||||||||
Total operating revenue (non-GAAP) (2) | (B) | $ | 90,489 | $ | 101,317 | ||||||
GAAP Total non-interest expense | $ | 68,550 | $ | 78,154 | |||||||
Less: Total non-operating expense (see above) | (18) | (3,486) | |||||||||
Operating non-interest expense (non-GAAP) (2) | (C) | $ | 68,532 | $ | 74,668 | ||||||
(In millions, except per share data) | |||||||||||
Total average assets | (D) | $ | 11,493 | $ | 12,468 | ||||||
Total average shareholders’ equity | (E) | 1,189 | 1,159 | ||||||||
Total average tangible shareholders’ equity (2) | (F) | 1,160 | 1,125 | ||||||||
Total average tangible common shareholders' equity (2) | (G) | 1,160 | 1,125 | ||||||||
Total tangible shareholders’ equity, period-end (2)(3) | (H) | 1,066 | 1,142 | ||||||||
Total tangible common shareholders' equity, period-end (2)(3) | (I) | 1,066 | 1,142 | ||||||||
Total tangible assets, period-end (2)(3) | (J) | 12,069 | 12,724 | ||||||||
Total common shares outstanding, period-end (thousands) | (K) | 47,792 | 50,988 | ||||||||
Average diluted shares outstanding (thousands) | (L) | 48,067 | 50,565 | ||||||||
Earnings per common share, diluted | $ | 0.42 | $ | 0.26 | |||||||
Adjusted earnings per common share, diluted (2) | (A/L) | 0.43 | 0.32 | ||||||||
Book value per common share, period-end | 22.89 | 23.05 | |||||||||
Tangible book value per common share, period-end (2) | (I/K) | 22.30 | 22.39 | ||||||||
Total shareholders' equity/total assets | 9.04 | 9.21 | |||||||||
Total tangible shareholder's equity/total tangible assets (2) | (H/J) | 8.83 | 8.98 | ||||||||
Performance ratios (4) | |||||||||||
GAAP return on equity | 6.79 | % | 4.50 | % | |||||||
Adjusted return on equity (2) | (A/E) | 6.99 | 5.53 | ||||||||
Return on tangible common equity (2)(5) | 7.29 | 4.98 | |||||||||
Adjusted return on tangible common equity (2)(5) | (A+O)/(G) | 7.49 | 6.04 | ||||||||
GAAP return on assets | 0.70 | 0.42 | |||||||||
Adjusted return on assets (2) | (A/D) | 0.72 | 0.51 | ||||||||
Efficiency ratio (2) | (C-O)/(B+M+P) | 72.61 | 71.32 | ||||||||
(in thousands) | |||||||||||
Supplementary data (In thousands) | |||||||||||
Tax benefit on tax-credit investments (6) | (M) | $ | 596 | $ | 41 | ||||||
Non-interest income charge on tax-credit investments (7) | (N) | (357) | (33) | ||||||||
Net income on tax-credit investments | (M+N) | 239 | 8 | ||||||||
Intangible amortization | (O) | 1,286 | 1,319 | ||||||||
Fully taxable equivalent income adjustment | (P) | 1,524 | 1,494 |
CHANGE IN NET INTEREST INCOME | ||||||||||||||
1-12 Months | 13-24 Months | |||||||||||||
Parallel Interest Rate Shock – Basis Points | % Change | % Change | ||||||||||||
At March 31, 2022 | ||||||||||||||
+200 | 10.3% | 12.5% | ||||||||||||
+100 | 4.3% | 4.6% | ||||||||||||
-100 | (4.4)% | (5.6)% | ||||||||||||
At December 31, 2021 | ||||||||||||||
+200 | 13.1% | 16.1% | ||||||||||||
+100 | 5.6% | 6.5% | ||||||||||||
-100 | (0.1)% | (1.2)% |
Total number of | Average price | Total number of shares purchased as part of publicly announced | Maximum number of shares that may yet be purchased under | |||||||||||||||||||||||
Period | shares purchased | paid per share | plans or programs | the plans or programs | ||||||||||||||||||||||
January 1-31, 2022 | — | $ | — | — | 4,832,585 | |||||||||||||||||||||
February 1-28, 2022 | 420,000 | 30.41 | 420,000 | 4,412,585 | ||||||||||||||||||||||
March 1-31, 2022 | 552,000 | 29.95 | 552,000 | 3,860,585 | ||||||||||||||||||||||
Total | 972,000 | $ | 30.15 | 972,000 | 3,860,585 |
3.1 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in Inline XBRL: (i) the Consolidated Statements of Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements tagged as blocks of text and including detailed tags. | |||||||
104 | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in Inline XBRL. |
BERKSHIRE HILLS BANCORP, INC. | ||||||||
Dated: May 10, 2022 | By: | /s/ Nitin J. Mhatre | ||||||
Nitin J. Mhatre | ||||||||
President and Chief Executive Officer | ||||||||
Dated: May 10, 2022 | By: | /s/ Subhadeep Basu | ||||||
Subhadeep Basu | ||||||||
Senior Executive Vice President, Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Berkshire Hills Bancorp, Inc.; | ||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||||
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant 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 quarterly 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 weakness 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. |
May 10, 2022 | /s/ Nitin J. Mhatre | ||||
Nitin J. Mhatre | |||||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Berkshire Hills Bancorp, Inc.; | ||||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||||
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant 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 quarterly 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 weakness 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. |
May 10, 2022 | /s/ Subhadeep Basu | ||||
Subhadeep Basu | |||||
Senior Executive Vice President, Chief 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. |
May 10, 2022 | /s/ Nitin J. Mhatre | ||||
Nitin J. Mhatre | |||||
President and Chief Executive 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. |
May 10, 2022 | /s/ Subhadeep Basu | ||||
Subhadeep Basu | |||||
Senior Executive Vice President, Chief Financial Officer |