CONNECTONE BANCORP, INC., 10-K filed on 2/24/2023
Annual Report
v3.22.4
Document And Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2022
Feb. 24, 2023
Jun. 30, 2022
Document Information [Line Items]      
Entity Central Index Key 0000712771    
Entity Registrant Name ConnectOne Bancorp, Inc.    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2022    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2022    
Document Transition Report false    
Entity File Number 001-40751    
Entity Incorporation, State or Country Code NJ    
Entity Tax Identification Number 52-1273725    
Entity Address, Address Line One 301 Sylvan Avenue    
Entity Address, City or Town Englewood Cliffs    
Entity Address, State or Province NJ    
Entity Address, Postal Zip Code 07632    
City Area Code 201    
Local Phone Number 816-8900    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 1,026,400,000
Entity Common Stock, Shares Outstanding   39,151,113  
Auditor Firm ID 173    
Auditor Name Crowe LLP    
Auditor Location Livingston, New Jersey    
Depositary Shares [Member]      
Document Information [Line Items]      
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of 5.25% Series A Non-Cumulative, perpetual preferred stock)    
Trading Symbol CNOBP    
Security Exchange Name NASDAQ    
Common Stock [Member]      
Document Information [Line Items]      
Title of 12(b) Security Common Stock, no par value    
Trading Symbol CNOB    
Security Exchange Name NASDAQ    
v3.22.4
Consolidated Statements of Financial Condition - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
ASSETS    
Cash and due from banks $ 61,629 $ 54,352
Interest-bearing deposits with banks 206,686 211,184
Cash and cash equivalents 268,315 265,536
Investment securities 634,884 534,507
Equity securities 15,811 13,794
Loans held-for-sale 13,772 250
Loans receivable 8,099,689 6,828,622
Less: Allowance for credit losses - loans 90,513 78,773
Net loans receivable 8,009,176 6,749,849
Investment in restricted stock, at cost 46,604 27,826
Bank premises and equipment, net 27,800 29,032
Accrued interest receivable 46,062 34,152
Bank owned life insurance 231,328 195,731
Right of use operating lease assets 10,179 11,017
Other real estate owned 264 0
Goodwill 208,372 208,372
Core deposit intangibles 7,312 8,997
Other assets 125,069 50,417
Total assets 9,644,948 8,129,480
Deposits:    
Noninterest-bearing 1,501,614 1,617,049
Interest-bearing 5,855,008 4,715,904
Total deposits 7,356,622 6,332,953
Borrowings 857,622 468,193
Subordinated debentures, net of debt issuance costs 153,255 152,951
Operating lease liabilities 11,397 12,417
Other liabilities 87,301 38,754
Total liabilities 8,466,197 7,005,268
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY    
Preferred Stock, no par value; $1,000 per share liquidation preference; Authorized 5,000,000 shares; issued 115,000 shares as of December 31, 2022 and as of December 31, 2021; outstanding 115,000 shares as of December 31, 2022 and as of December 31, 2021 110,927 110,927
Authorized 100,000,000 shares; issued 41,942,149 shares as of December 31, 2022 and 41,820,008 shares as of December 31, 2021; outstanding 39,243,123 shares as of December 31, 2022 and 39,568,090 as of December 31, 2021 586,946 586,946
Additional paid-in capital 30,126 27,246
Retained earnings 535,915 440,169
Treasury stock, at cost 2,699,026 shares as of December 31, 2022 and 2,251,918 shares as of December 31, 2021 (52,799) (39,672)
Accumulated other comprehensive loss (32,364) (1,404)
Total stockholders’ equity 1,178,751 1,124,212
Total liabilities and stockholders’ equity $ 9,644,948 $ 8,129,480
v3.22.4
Consolidated Statements of Financial Condition (Parentheticals) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
Preferred stock, no par value (in dollars per share) $ 0 $ 0
Preferred stock, liquidation preference par share (in dollars per share) $ 1,000 $ 1,000
Preferred stock, authorized shares (in shares) 5,000,000 5,000,000
Preferred Stock, Shares Issued (in shares) 115,000 115,000
Preferred stock, outstanding shares (in shares) 115,000 115,000
Common stock, no par value (in dollars per share) $ 0 $ 0
Common stock, shares authorized (in shares) 100,000,000 100,000,000
Common stock, issued (in shares) 41,942,149 42,820,008
Common stock, outstanding (in shares) 39,243,123 39,568,090
Treasury stock, shares (in shares) 2,699,026 2,251,918
v3.22.4
Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Interest income:      
Interest and fees on loans $ 352,993 $ 293,546 $ 296,611
Interest and dividends on investment securities:      
Taxable 12,712 4,413 6,456
Tax-exempt 3,893 2,403 2,797
Dividends 1,655 971 1,642
Interest on federal funds sold and other short-term investments 2,493 405 694
Total interest income 373,746 301,738 308,200
Interest expense:      
Deposits 50,561 24,768 52,386
Borrowings 21,066 14,092 17,823
Total interest expense 71,627 38,860 70,209
Net interest income 302,119 262,878 237,991
Provision for (reversal of) credit losses 17,750 (5,500) 41,000
Net interest income after provision for credit losses 284,369 268,378 196,991
Noninterest income:      
Deposit, loan and other income 7,472 6,617 7,077
Income on bank owned life insurance 5,597 4,771 5,007
Net gains on sale of loans held-for-sale 1,695 3,807 2,085
Gain on sale of branches 0 674 0
Net (losses) gains on equity securities (1,521) (373) 202
Net gains on sale/redemption of investment securities 0 195 29
Total noninterest income 13,243 15,691 14,400
Noninterest expense:      
Salaries and employee benefits 81,289 64,341 58,877
Occupancy and equipment 9,865 11,638 13,882
FDIC insurance 2,881 2,665 4,002
Professional and consulting 8,053 8,286 7,383
Marketing and advertising 1,692 1,318 1,200
Information technology and communications 11,108 11,267 6,008
Merger expenses 0 0 14,640
Amortization of core deposit intangible 1,685 1,981 2,559
Net periodic pension income (572) (269) (119)
Increase in value of acquisition price 1,516 0 2,333
Other expenses 8,871 7,784 10,236
Total noninterest expenses 126,388 109,011 121,001
Income before income tax expense 171,224 175,058 90,390
Income tax expense 46,013 44,705 19,101
Net income 125,211 130,353 71,289
Preferred dividends 6,037 1,717 0
Net income available to common stockholders $ 119,174 $ 128,636 $ 71,289
Earnings per common share:      
Basic (in dollars per share) $ 3.03 $ 3.24 $ 1.80
Diluted (in dollars per share) $ 3.01 $ 3.22 $ 1.79
v3.22.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net income $ 125,211 $ 130,353 $ 71,289
Other comprehensive income:      
Unrealized holding (losses) gains on available-for-sale securities arising during the period (86,240) (11,109) 7,005
Tax effect 24,949 2,914 (1,847)
Net of tax (61,291) (8,195) 5,158
Reclassification adjustment for realized gains included in net income 0 (195) (29)
Tax effect 0 (48) (6)
Net of tax 0 (147) (23)
Unrealized gains (losses) on cash flow hedges 46,181 3,593 (3,423)
Tax effect (13,960) (1,012) 962
Net of tax 32,221 2,581 (2,461)
Reclassification adjustment for (gains) losses arising during this period (3,243) 1,873 1,577
Tax effect 976 (528) (443)
Net of tax (2,267) 1,345 1,134
Unrealized pension plan gains (losses):      
Unrealized pension plan gains (losses) before reclassifications 343 0 (112)
Tax effect 12 (0) (31)
Net of tax 331 0 (81)
Reclassification adjustment for realized losses included in net income 66 299 301
Tax effect (20) (84) (84)
Net of tax 46 215 217
Total other comprehensive (loss) income (30,960) (4,201) 3,944
Total comprehensive income $ 94,251 $ 126,152 $ 75,233
v3.22.4
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Performance Shares [Member]
Preferred Stock [Member]
Performance Shares [Member]
Common Stock [Member]
Performance Shares [Member]
Additional Paid-in Capital [Member]
Performance Shares [Member]
Retained Earnings [Member]
Performance Shares [Member]
Treasury Stock [Member]
Performance Shares [Member]
AOCI Attributable to Parent [Member]
Performance Shares [Member]
Bancorp of New Jersey [Member]
Preferred Stock [Member]
Bancorp of New Jersey [Member]
Common Stock [Member]
Bancorp of New Jersey [Member]
Additional Paid-in Capital [Member]
Bancorp of New Jersey [Member]
Retained Earnings [Member]
Bancorp of New Jersey [Member]
Treasury Stock [Member]
Bancorp of New Jersey [Member]
AOCI Attributable to Parent [Member]
Bancorp of New Jersey [Member]
Restricted Stock Units (RSUs) [Member]
Preferred Stock [Member]
Restricted Stock Units (RSUs) [Member]
Common Stock [Member]
Restricted Stock Units (RSUs) [Member]
Additional Paid-in Capital [Member]
Restricted Stock Units (RSUs) [Member]
Retained Earnings [Member]
Restricted Stock Units (RSUs) [Member]
Treasury Stock [Member]
Restricted Stock Units (RSUs) [Member]
AOCI Attributable to Parent [Member]
Restricted Stock Units (RSUs) [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Preferred Stock [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Additional Paid-in Capital [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Treasury Stock [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
AOCI Attributable to Parent [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Preferred Stock [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Common Stock [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Additional Paid-in Capital [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Treasury Stock [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
AOCI Attributable to Parent [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
AOCI Attributable to Parent [Member]
Total
Balance at Dec. 31, 2019                                                                       $ 0 $ 468,571 $ 21,344 $ 271,782 $ (29,360) $ (1,147) $ 731,190
Net income                                                                       0 0 0 71,289 0 0 71,289
Other comprehensive income, net of tax                                                                       0 0 0 0 0 3,944 3,944
Cash dividends declared on common stock                                                                       0 0 0 (11,120) 0 0 (11,120)
Repurchase of stock                                                                       0 0 0 0 (911) 0 (911)
Net shares issued in satisfaction of units earned $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0                                                         0 0 0 0 0 0 0
Exercise of stock options                                                                       0 0 233 0 0 0 233
Restricted stock grants, net of forfeitures                                                                       0 0 0 0 0 0 0
Stock grants issued                                                                       0 0 0 0 0 0 0
Share redemption for tax withholdings on performance units and deferred stock units earned                                                                       0 0 (639) 0 0 0 (639)
Stock issued in acquisition               $ 0 $ 118,375 $ 0 $ 0 $ 0 $ 0 $ 118,375                                                        
Stock-based compensation expense                                                                       0 0 2,949 0 0 0 2,949
Balance at Dec. 31, 2020                                           $ 0 $ 0 $ 0 $ (2,925) $ 0 $ 0 $ (2,925) $ 0 $ 586,946 $ 23,887 $ 329,026 $ (30,271) $ 2,797 $ 912,385 0 586,946 23,887 331,951 (30,271) 2,797 915,310
Net income                                                                       0 0 0 130,353 0 0 130,353
Other comprehensive income, net of tax                                                                       0 0 0 0 0 (4,201) (4,201)
Cash dividends declared on common stock                                                                       0 0 0 (17,493) 0 0 (17,493)
Repurchase of stock                                                                       0 0 0 0 (9,401) 0 (9,401)
Net shares issued in satisfaction of units earned 0 0 0 0 0 0 0                                                         0 0 0 0 0 0 0
Exercise of stock options                                                                       0 0 106 0 0 0 106
Restricted stock grants, net of forfeitures                                                                       0 0 0 0 0 0 0
Stock grants issued                                                                       0 0 0 0 0 0 0
Share redemption for tax withholdings on performance units and deferred stock units earned                                                                       0 0 (1,283) 0 0 0 (1,283)
Stock-based compensation expense                                                                       0 0 4,536 0 0 0 4,536
Cash dividends declared on preferred stock                                                                       0 0 0 (1,717) 0 0 (1,717)
Proceeds from preferred stock issuance, net of costs                                                                       110,927 0 0 0 0 0 110,927
Balance at Dec. 31, 2021                                                                       110,927 586,946 27,246 440,169 (39,672) (1,404) 1,124,212
Net income                                                                       0 0 0 125,211 0 0 125,211
Other comprehensive income, net of tax                                                                       0 0 0 0 0 (30,960) (30,960)
Cash dividends declared on common stock                                                                       0 0 0 (23,428) 0 0 (23,428)
Repurchase of stock                                                                       0 0 0 0 (13,127) 0 (13,127)
Net shares issued in satisfaction of units earned $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0               $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0                                          
Exercise of stock options                                                                       0 0 124 0 0 0 124
Restricted stock grants, net of forfeitures                                                                       0 0 0 0 0 0 0
Stock grants issued                                                                       0 0 0 0 0 0 0
Share redemption for tax withholdings on performance units and deferred stock units earned                                                                       0 0 (2,133) 0 0 0 (2,133)
Stock-based compensation expense                                                                       0 0 4,889 0 0 0 4,889
Cash dividends declared on preferred stock                                                                       0 0 0 (6,037) 0 0 (6,037)
Balance at Dec. 31, 2022                                                                       $ 110,927 $ 586,946 $ 30,126 $ 535,915 $ (52,799) $ (32,364) $ 1,178,751
v3.22.4
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Performance Shares [Member]      
Net shares issued in satisfaction of units earned, shares (in shares) 22,350 34,458 22,402
Bancorp of New Jersey [Member]      
Stock issued in acquisition, shares (in shares)     4,602,450
Restricted Stock Units (RSUs) [Member]      
Net shares issued in satisfaction of units earned, shares (in shares) 31,383    
Cash dividends declared on common stock, per share (in dollars per share) $ 0.595 $ 0.48 $ 0.27
Repurchase of treasury stock, shares (in shares) 447,108 330,541 54,693
Net shares issued in satisfaction of units earned, shares (in shares)   14,711 16,541
Exercise of options, shares (in shares) 15,086 14,247 35,413
Restricted stock grants, shares (in shares) 53,169 44,836 89,879
Stock grants issued, shares (in shares) 153 4,981 1,340
Cash dividend declared on preferred stock, per share (in dollars per share) $ 1.3125 $ 0.371875  
Proceeds from preferred stock issuance, net of costs, shares (in shares)   115,000  
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities      
Net income $ 125,211 $ 130,353 $ 71,289
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization of premises and equipment 3,863 3,757 4,244
Provision for (reversal of) credit losses 17,750 (5,500) 41,000
Amortization of intangibles 1,685 1,981 2,559
Net accretion of loans (3,178) (5,350) (6,687)
Accretion on bank premises (49) (73) (90)
Accretion on deposits (777) (2,224) (4,301)
Amortization (accretion) on borrowings 40 (36) (183)
Net deferred income tax (benefit) expense (403) 16 (7,495)
Stock-based compensation 4,889 4,536 2,949
Gains on sales/redemptions of investment securities, net 0 (195) (29)
Change in fair value of equity securities, net 1,521 373 (202)
Gain on sale of loans held-for-sale, net (1,695) (3,807) (2,085)
Gain on sale of branches 0 (674) 0
Net losses on disposition of other fixed assets 22 65 0
Gain (loss) on sale of other real estate owned 6 (18) 0
Loans originated for resale (21,128) (51,669) (63,114)
Proceeds from sale of loans held-for-sale 28,341 72,233 80,323
Increase in cash surrender value of bank owned life insurance (5,597) (4,771) (4,793)
Amortization of premiums and accretion of discounts on investments securities, net 2,155 5,966 5,506
Amortization of subordinated debt issuance costs 304 303 323
(Increase) decrease in accrued interest receivable (11,910) 1,165 (11,458)
Net change in operating leases (182) (769) 41
(Increase) decrease in other assets (12,413) 46,086 (22,498)
Increase (decrease) in other liabilities 48,322 10,526 (4,174)
Net cash provided by operating activities 176,777 202,273 81,125
Cash flows from investing activities      
Purchases (339,059) (349,500) (338,087)
Sales 0 0 19,624
Maturities, calls and principal repayments 150,287 285,873 256,782
Net (purchases)/redemptions of restricted investment in bank stocks (18,778) (2,727) 5,362
Purchases of equity securities (3,538) (780) (2,000)
Loans held-for-sale payments 54 38 1,186
Net increase in loans (1,292,938) (596,389) (329,210)
Cash flow hedge premium payment (6,965) 0 0
Purchases of premises and equipment (3,301) (2,783) (2,199)
Purchases of bank owned life insurance (30,000) (25,000) (25,000)
Proceeds from life insurance death benefits 0 0 1,794
Proceeds from disposition of fixed assets 697 113 0
Proceeds from sale of branches 0 974 0
Cash and cash equivalents acquired in acquisitions, net 0 0 87,391
Proceeds from sale of other real estate owned 309 321 992
Net cash used in investing activities (1,543,232) (689,860) (323,365)
Cash flows from financing activities      
Net increase in deposits 1,024,446 375,953 410,605
(Repayment of) increase in subordinated debt 0 (50,000) 73,440
Advances of FHLB borrowings 4,203,181 340,000 1,526,489
Repayments of FHLB borrowings (3,813,792) (297,725) (1,650,387)
Cash dividends paid on preferred stock (6,037) (1,717) 0
Cash dividends paid on common stock (23,428) (17,493) (14,317)
Proceeds from preferred stock offering 0 110,927 0
Purchase of treasury stock (13,127) (9,401) (911)
Proceeds from exercise of stock options 124 106 233
Share redemption for tax withholdings on performance units and deferred stock units earned (2,133) (1,283) (639)
Net cash provided by financing activities 1,369,234 449,367 344,513
Net change in cash and cash equivalents 2,779 (38,220) 102,273
Cash and cash equivalents at beginning of period 265,536 303,756 201,483
Cash and cash equivalents at end of period 268,315 265,536 303,756
Supplemental disclosures of cash flow information:      
Interest paid 67,850 41,787 74,701
Income taxes paid 49,234 45,431 26,548
Supplemental disclosures of noncash investing activities:      
Transfer of loans to other real estate owned 579 304 0
Transfer of loans held-for-sale to loans held-for-investment 8,043 4,293 10,995
Transfer of loans held-for-investment to loans held-for-sale $ 27,137 $ 16,628 $ 26,548
v3.22.4
Note 1a - Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1a – Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies

 

Nature of Operations

 

ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of the State of New Jersey and is a registered bank holding company under the Bank Holding Company Act of 1956, as amended (the “BHCA”). The Parent Corporation’s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the “Bank” and, collectively with the Parent Corporation and the Parent Corporation’s subsidiaries, the “Company”). The Bank’s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a Delaware investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), NJCB Spec-1, LLC (a New Jersey limited liability company), Port Jervis Holdings, LLC (a New Jersey limited liability company), BONJ Special Properties, LLC (a New Jersey limited liability company) and BoeFly, Inc. (a New Jersey financial technology company).

 

The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty-four other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower’s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrowers’ business, real estate rental and consumer wages.

 

Basis of Presentation and Principals of Consolidation

 

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles. The consolidated financial statements of the Parent Corporation are prepared on an accrual basis and include the accounts of the Parent Corporation and the Company. All significant intercompany accounts and transactions have been eliminated from the accompanying consolidated financial statements.

 

Segments

 

FASB ASC 28, “Segment Reporting,” requires companies to report certain information about operating segments. The Company is managed as one segment: a community bank. All decisions including but not limited to loan growth, deposit funding, interest rate risk, credit risk and pricing are determined after assessing the effect on the totality of the organization. For example, loan growth is dependent on the ability of the organization to fund this growth through deposits or other borrowings. As a result, the Company is managed as one operating segment.

 

Use of Estimates

 

In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates.

 

Risks and Uncertainties

 

As previously disclosed, on March 11, 2020 the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which continues to impact the United States and the world. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. The COVID-19 pandemic has adversely affected, and continues to adversely affect economic activity globally, nationally and locally. Although economic activity  accelerated during 2022 the COVID pandemic and changes to peoples’ patterns of work and spending may  have an adverse impact on the economies and financial markets of many countries and parts of the United States, including the New Jersey/New York metropolitan area in which the Company primarily operates. COVID-19 could impact the Company’s operations in the future. Although state and local governments have lifted restrictions on conducting business, it is possible that restrictions could be reimposed.

 

 

On July 27, 2017, the U.K. Financial Conduct Authority, which regulates London Interbank Offered Rate ("LIBOR"), announced that it will no longer persuade or compel banks to submit rates for the calculation of LIBOR to the LIBOR administrator after 2021. The announcement also indicates that the continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021. Consequently, although banks have continued to submit certain rates for the calculation of LIBOR in 2022, at this time, it is not possible to predict whether and to what extent banks will continue to provide LIBOR submissions to the LIBOR administrator . Similarly, banking regulators in the United States have required insured depository institutions in the United States to cease originating loans using LIBOR as a rate index as of December 31, 2021, and in March 2022 Congress adopted legislation providing for the replacement of LIBOR indexes in contracts without fall back language with the Secured Overnight Financing Rate ("SOFR"), and for the Federal Reserve to adopt regulation by September of 2022 implementing this change. Although the Bank ceased using LIBOR as an index for loans it originates, it is unclear at this time what effect these changes may have on the values of loans and liabilities held or owed by the Bank whose interest rates are or were tied to LIBOR. Uncertainty surrounding the phase out  of LIBOR may adversely affect the value of, and the return on our loans, and our investment securities.

 

The United States economy is currently experiencing a level of price inflation not experienced since the late 1970’s and early 1980’s. It is therefore difficult to predict the response of consumers and businesses to this level of inflation, and its impact on the economy. In addition, in order to attempt to control and reduce the level of inflation, the Federal Reserve has embarked on a series of interest rate increases along with quantitative tightening to further constrict economic conditions. It is unclear whether the Federal Reserve’s efforts will be successful, and what impact they may have on the United States’ economy. It is possible that the combined effects of inflation and increases in market interest rates could cause the economy of the United States to enter a recession, which could negatively affect the businesses of our borrowers and their ability to repay their loans or need credit, which could negatively affect our results of operations.   

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash, deposits with other financial institutions with maturities of less than 90 days, and federal funds sold. Net cash flows are reported for client loan and deposit transactions, interest-bearing deposits in other financial institutions, and federal funds purchased and repurchase agreements.

 

Investment Securities

 

Effective January 1, 2021, the Company accounts for its investment securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320-10-05. Investments are classified into the following categories: (1) held-to-maturity securities, for which the Company has both the positive intent and ability to hold until maturity, which are reported at amortized cost; (2) trading securities, which are purchased and held principally for the purpose of selling in the near term and are reported at fair value with unrealized gains and losses included in earnings; and (3) available-for-sale securities, which do not meet the criteria of the other two categories and which management believes may be sold prior to maturity due to changes in interest rates, prepayment risk, liquidity or other factors, and are reported at fair value, with unrealized gains and losses, net of applicable income taxes, reported as a component of accumulated other comprehensive income, which is included in stockholders’ equity and excluded from earnings.

 

Investment securities are adjusted for amortization of premiums and accretion of discounts as adjustments to interest income, which are recognized on a level yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Investment securities gains or losses are determined using the specific identification method.

 

Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in comprehensive income, net of tax. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are generally amortized using the level-yield method without estimating prepayments, except for mortgage-backed securities, where prepayment rates are estimated. Premiums on callable investment securities are amortized to their earliest call date. Gains and losses on sales of securities are recorded on the trade date and determined using the specific identification method.

 

 

For available-for-sale investment securities which are in an unrealized loss position, the Company will first assess whether we intend to sell, or it is more likely than not, that we will be required to sell the security before recovery of the amortized cost basis. If either of the criteria is met, the amortized cost basis of the security is written down to fair value through income. For available-for-sale investment securities that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from an actual or estimated credit loss event or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, changes to the rating of the security, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss is likely, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, an allowance for credit losses is recorded for the estimated credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit loss is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major agencies and have a long history of no credit losses.

 

Prior to January 1, 2021, securities were evaluated on at least a quarterly basis, and more frequently when market conditions warrant such an evaluation, to determine whether a decline in their value is other-than-temporary. FASB ASC 320-10-65 clarifies the interaction of the factors that were considered when determining whether a debt security is other-than-temporarily impaired. For debt securities, management assessed whether (a) it has the intent to sell the security and (b) it is more likely than not that it will be required to sell the security prior to its anticipated recovery. These steps were done before assessing whether the entity will recover the cost basis of the investment. In instances when a determination is made that an other-than-temporary impairment exists but the investor does not intend to sell the debt security and it is not more likely than not that it will be required to sell the debt security prior to its anticipated recovery, FASB ASC 320-10-65 changed the presentation and amount of the other-than-temporary impairment recognized in the Consolidated Statement of Income. The other-than-temporary impairment was separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss was recognized through earnings. The amount of the total other-than-temporary impairment related to all other factors was recognized through other comprehensive income. 

 

Equity Securities

 

The Company’s investments in equity securities are recorded at fair value, with unrealized gains and losses included in earnings.

 

Loans Held-for-Sale

 

Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan.

 

Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. Fair value on these loans is determined based on the terms of the loan, such as interest rate, maturity date, and reset term, as well as sales of similar assets.

 

Loans

 

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, purchase premium and discounts and an allowance for credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

 

Loan segments are defined as a group of loans, which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. Management has determined that the Company has five segments of loans: commercial, commercial real estate, commercial construction, residential real estate (including home equity) and consumer.

 

 

Loans that are 90 days past due are placed on nonaccrual and previously accrued interest is reversed and charged against interest income unless the loans are both well-secured and in the process of collection. Past due status is based on the contractual terms of the loan. In certain cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for credit losses and loans individually evaluated for credit losses.

 

All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

 

The policy of the Company is to generally grant commercial, residential and consumer loans to residents and businesses within the market-areas served by its offices in New Jersey, New York and Florida. The borrowers’ abilities to repay their obligations are dependent upon various factors including the borrowers’ income and net worth, cash flows generated by the borrowers’ underlying collateral, value of the underlying collateral, and priority of the lender’s lien on the property. Such factors are dependent upon various economic conditions and individual circumstances beyond the control of the Company. The Company is therefore subject to risk of loss. The Company believes its lending policies and procedures adequately minimize the potential exposure to such risks and that adequate provisions for credit losses are provided for all known and inherent risks. Collateral and/or personal guarantees are required for a large majority of the Company’s loans.

 

Allowance for Credit Losses

 

The allowance for credit losses is an estimate of current expected credit losses considering available information relevant to assessing collectability of cash flows over the contractual term of the financial assets necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and investment securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. Loan losses are charged against the allowance for credit losses when the Company believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance for credit losses. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The expected credit loss for unfunded loan commitments is reported on the consolidated statement of financial condition in other liabilities.

 

For financial assets, the allowance for credit losses is a valuation account that is deducted from, or added to, the amortized cost basis of the financial assets to present the net amount expected to be collected on the financial assets. The Company 's methodology to estimate the allowance for credit losses has two components: (i) a collective reserve component for estimated lifetime expected credit losses for pools of loans that share common risk characteristics and (ii) an individual reserve component for loans that do not share common risk characteristics. The Company maintains an allowance for unfunded credit commitments mainly consisting of undisbursed non-cancellable lines of credit, new loan commitments and commercial letters of credit.

 

Information relevant to establishing an estimate of current expected credit losses includes historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. The Company reports in net income (as a credit loss expense) the amount necessary to adjust the allowance for credit losses and liabilities for credit losses on off-balance-sheet credit exposures for the current estimate of expected credit losses.

 

 

Expected credit losses of financial assets are measured on a collective (pool) basis when similar risk characteristic(s) exist. If the Company determines that a financial asset does not share risk characteristics with other financial assets, the Company will evaluate the financial asset for expected credit losses on an individual basis. Financial assets are assessed once, either through collective assessments or individual assessments. Standard expected losses are evaluated on a collective, or pool, basis when financial assets share similar risk characteristics. For pooled loan segments, utilizing a quantitative analysis, the Company calculates estimated credit losses using a probability of default and loss given default methodology, the results of which are applied to the aggregated discounted cash flow of each individual loan within the segment. In the absence of relevant and reliable internal data, probability of default and loss given default rates are determined using peer data. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount. Financial assets may be segmented based on one characteristic, or a combination of characteristics. Examples of risk characteristics relevant to the Company’s evaluation included, but were not limited to: (1) Internal or external credit scores or credit ratings, (2) Risk ratings or classifications, (3) Financial asset type, (4) Collateral type, (5) Size, (6) Effective interest rate, (7) Term, (8) Geographical location, (9) Industry of the borrower and (10) Vintage.

 

The Company’s quantitative analysis also considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. After the reasonable and supportable forecast period, the Company reverts, on a straight-line basis, to average historical losses. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate.

 

Included in the allowance for credit losses are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis or the forecasts described above. Each qualitative loss factor, for each loan segment within the portfolio, incorporates consideration for a minimum to maximum range for loss factors derived from either the Company’s historical loss experience, or peer group historical charge-off experience. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses and are applied to each loan segment.

 

The Bank evaluates individual instruments for expected credit losses when those instruments do not share similar risk characteristics with instruments evaluated using a collective (pooled) basis. The Company evaluates the pooling methodology at least annually. Loans transition from defined segments for individual analysis when credit characteristics, or risk traits, change in a material manner. A loan is considered for individual analysis when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by the Company in determining individual analysis include payment status and the probability of collecting scheduled principal and interest payments, when due.

 

Loans for which the terms have been modified as a concession to the borrower due to the borrower experiencing financial difficulties are troubled debt restructurings (“TDR”) and are individually analyzed if carrying value is $250,000 or higher. Additionally, nonaccrual loans that are $250,000 or higher are also individually analyzed. All PCD loans are individually analyzed. For loans designated as TDR or nonaccrual with balances less than $250,000, these loans are collectively evaluated, and, accordingly, are not separately identified for analysis or disclosures. Instruments will not be included in both collective and individual analysis. Individual analysis will establish a specific reserve for instruments in scope.

 

 For collateral dependent loans, when it is determined that a foreclosure is probable, the allowance for credit losses is determined on a loan level basis using the fair value of the collateral as of the reporting date, less estimated disposition costs (“net fair value”), which will ensure that the credit loss is not delayed until the time at which the actual foreclosure takes place. In the event that this fair value is less than then amortized cost basis of these specific loans, the Company will recognize the difference between the net fair value at the reporting date and the amortized cost basis in the allowance for credit losses. If the fair value of the collateral has increased as of the evaluation date, the increase in the fair value of the collateral is reflected through a reduction in the allowance for credit losses. Adjustments for estimated disposition costs are not appropriate when the repayment of a collateral-dependent loan is expected from the operation of the collateral. If repayment is based upon future expected cash flows, the present value of the expected future cash flows discounted at the loan’s original effective interest rate is compared to the carrying value of the loan, and any shortfall is recorded as the allowance for credit losses. The effective interest rate used to discount expected cash flows is adjusted to incorporate expected prepayments, if applicable.

 

 

Purchased Credit-Deteriorated Loans

 

Loans acquired in a business combination that have experienced a more-than-significant deterioration in credit quality since origination are considered PCD loans. The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) troubled debt restructured designation; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that were current on acquisition date, but had been previously delinquent. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium, which is recognized through interest income on a level-yield basis over the lives of the related loans. All loans considered to be purchased credit-impaired (PCI) prior to the adoption of ASU 2016-13 were converted to PCD upon adoption.

 

PCD loans that met the criteria for nonaccrual may be considered performing, regardless of whether the client is contractually delinquent, if management can reasonably estimate the timing and amount of the expected cash flows on such loans and if management expects to fully collect the new carrying value of the loans. As such, management may no longer consider the loans to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount.

 

Derivatives

 

The Company’s quantitative analysis also considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. After the reasonable and supportable forecast period, the Company reverts, on a straight-line basis, to average historical economic driver conditions. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate.

 

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

 

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

 

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.

 

 

Restricted Stock

 

The Bank is a member of the Federal Home Loan Bank (“FHLB”) of New York. Members are required to own a certain amount of stock based on the level of borrowings and other factors and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Cash dividends on the stock are reported as income.

 

Transfers of Financial Assets

 

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

 

Premises and Equipment

 

Land is carried at cost and premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 4 to 30 years. Leasehold improvements are depreciated using the straight-line method over the terms of the respective leases, or the estimated useful lives of the improvements, whichever is shorter. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years.

 

Leases

 

Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease team. The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option.

 

Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company has elected not to recognize leases with original terms of 12 months or less on the consolidated balance sheet.

 

Other Real Estate Owned

 

Other real estate owned (“OREO”), representing property acquired through foreclosure and held-for-sale, is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequently, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Costs relating to holding the assets are charged to expenses.

 

Employee Benefit Plans

 

The Company has a noncontributory pension plan that covered all eligible employees up until September 30, 2007, at which time the Company froze its defined benefit pension plan. As such, all future benefit accruals in this pension plan were discontinued and all retirement benefits that employees would have earned as of September 30, 2007 were preserved. The Company’s policy is to fund at least the minimum contribution required by the Employee Retirement Income Security Act of 1974. The costs associated with the plan are accrued based on actuarial assumptions and included in salaries and employee benefits expense.

 

 

The Company accounts for its defined benefit pension plan in accordance with FASB ASC 715-30. FASB ASC 715-30 requires that the funded status of defined benefit postretirement plans be recognized on the Company’s statement of financial condition and changes in the funded status be reflected in other comprehensive income. FASB ASC 715-30 also requires companies to measure the funded status of the plan as of the date of its fiscal year-end.

 

The Company maintains a 401(k)-employee savings plan to provide for defined contributions which covers substantially all employees of the Company. Employee 401(k) and profit-sharing plan expense is the amount of matching contributions.

 

Stock-Based Compensation

 

Stock compensation accounting guidance (FASB ASC 718, “Compensation-Stock Compensation”) requires that the compensation cost related to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans.

 

Stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. See Note 18 of the Notes to Consolidated Financial Statements for a further discussion.

 

Treasury Stock

 

Subject to certain regulatory limitations applicable to the Parent Corporation, treasury stock purchases may be made from time to time as, in the opinion of management, market conditions warrant, in the open market or in privately negotiated transactions. Shares repurchased are added to the corporate treasury and will be used for future stock dividends and other issuances. The repurchased shares are recorded as treasury stock, which results in a decrease in stockholders’ equity. Treasury stock is recorded using the cost method and accordingly is presented as a reduction of stockholders’ equity. During the year ended December 31, 2022 and December 31, 2021, the Parent Corporation repurchased 447,108 and 330,541 shares, respectively, under a board-approved share repurchase program.

 

Goodwill

 

Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized but tested for impairment annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. The Company has selected December 31 as the date to perform the annual impairment test. No impairment charge was deemed necessary as of the years ended December 31, 2022, 2021 and 2020.

 

 

Other Intangible Assets

 

Other intangible assets consist of core deposit intangibles arising from business combinations that are amortized over their estimated useful lives to their estimated residual value.

 

Comprehensive Income

 

Total comprehensive income includes all changes in equity during a period from transactions and other events and circumstances from nonowner sources. The Company’s other comprehensive income (loss) is comprised of unrealized holding gains and losses on securities available-for-sale, unrecognized actuarial gains and losses of the Company’s defined benefit pension plan and unrealized gains and losses on cash flow hedges, net of taxes.

 

Restrictions on Cash

 

Cash on hand or on deposit with the Federal Reserve Bank is required to meet regulatory reserve and clearing requirements.

 

Dividend Restriction

 

Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Parent Corporation or by the Parent Corporation to the stockholders.

 

Fair Value of Financial Instruments

 

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

 

Bank Owned Life Insurance

 

The Company invests in Bank Owned Life Insurance (“BOLI”) to help offset the cost of employee benefits. The change in the cash surrender value of the BOLI is recorded as a component of noninterest income.

 

Income Taxes

 

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

 

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

 

Advertising Costs

 

The Company recognizes its marketing and advertising cost as incurred.

 

Reclassifications

 

Certain reclassifications have been made in the consolidated financial statements and footnotes for 2021 and 2020 to conform to the classifications presented in 2022. Such reclassifications had no impact on net income or stockholders’ equity.

 

 

Adoption of New Accounting Standards in 2023

 

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (“TDRs”) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the current expected credit loss (“CECL”) model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13”). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2022-02 did not have a material effect on the Company’s consolidated financial statements.

 

Newly Issued, But Not Yet Effective Accounting Standards

 

In June 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value.  ASU 2022-03 is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the effect that ASU 2022-03 will have on its consolidated financial statements.

 
v3.22.4
Note 2 - Earnings Per Common Share
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Earnings Per Share [Text Block]

Note 2 – Earnings per Common Share

 

Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities. Earnings per common share have been computed based on the following:

 

  

Years Ended December 31,

 
  

2022

  

2021

  

2020

 
  

(in thousands, except per share amounts)

 

Net income available to common stockholders

 $119,174  $128,636  $71,289 

Earnings allocated to participating securities

  (287)  (313)  (356)

Income attributable to common stock

 $118,887  $128,323  $70,933 

Weighted average common shares outstanding, including participating securities

  39,355   39,723   39,643 

Weighted average participating securities

  (95)  (97)  (131)

Weighted average common shares outstanding

  39,260   39,626   39,512 

Incremental shares from assumed conversions of options, deferred stock units, performance units and restricted stock

  216   260   132 

Weighted average common and equivalent shares outstanding

  39,476   39,886   39,644 

Earnings per common share:

            

Basic

 $3.03  $3.24  $1.80 

Diluted

  3.01   3.22   1.79 

 

There were no antidilutive common share equivalents as of December 31, 2022, 2021 and 2020.

 
v3.22.4
Note 3 - Investment Securities
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3 – Investment Securities

 

The Company’s investment securities are classified as available-for-sale as of December 31, 2022 and December 31, 2021. Investment securities available-for-sale are reported at fair value with unrealized gains or losses included in stockholders’ equity, net of tax. Accordingly, the carrying value of such securities reflects their fair value as of December 31, 2022 and December 31, 2021. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. See Note 20 of the Notes to Consolidated Financial Statements for a further discussion.

 

The following tables present information related to the Company’s portfolio of investment securities available-for-sale as of December 31, 2022 and 2021.

 

      

Gross

  

Gross

     
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 
  

Cost

  

Gains

  

Losses

  

Value

 
  

(dollars in thousands)

 

December 31, 2022

                

Investment securities available-for-sale

                

Federal agency obligations

 $54,889  $-  $(10,439) $44,450 

Residential mortgage pass-through securities

  475,263   178   (57,863)  417,578 

Commercial mortgage pass-through securities

  25,485   -   (4,381)  21,104 

Obligations of U.S. states and political subdivisions​​

  157,247   111   (14,462)  142,896 

Corporate bonds and notes

  7,000   -   (26)  6,974 

Asset-backed securities

  1,673   -   (33)  1,640 

Other securities

  242   -   -   242 

Total securities available-for-sale

 $721,799  $289  $(87,204) $634,884 

 

 

      

Gross

  

Gross

     
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 
  

Cost

  

Gains

  

Losses

  

Value

 
  

(dollars in thousands)

 

December 31, 2021

                

Investment securities available-for-sale

                

Federal agency obligations

 $50,336  $649  $(625) $50,360 

Residential mortgage pass-through securities

  317,111   1,868   (2,884)  316,095 

Commercial mortgage pass-through securities

  10,814   118   (463)  10,469 

Obligations of U.S. states and political subdivisions​​

  145,045   1,562   (982)  145,625 

Corporate bonds and notes

  8,968   81   -   9,049 

Asset-backed securities

  2,563   3   (2)  2,564 

Certificates of deposit

  150   -   -   150 

Other securities

  195   -   -   195 

Total securities available-for-sale

 $535,182  $4,281  $(4,956) $534,507 

 

 

Note 3 – Investment Securities – (continued)

 

Investment securities having a carrying value of approximately $157 million and $71 million as of December 31, 2022 and December 31, 2021, respectively, were pledged to secure public deposits, borrowings, Federal Reserve Discount Window borrowings and Federal Home Loan Bank advances and for other purposes required or permitted by law. As of December 31, 2022, and December 31, 2021, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

 

The following table presents information for investment securities available-for-sale as of December 31, 2022, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. Securities not due at a single maturity date are shown separately.

 

  

December 31, 2022

 
  

Amortized

  

Fair

 
  

Cost

  

Value

 
  

(dollars in thousands)

 

Investment securities available-for-sale:

        

Due in one year or less

 $5,453  $5,451 

Due after one year through five years

  4,106   4,082 

Due after five years through ten years

  2,247   2,244 

Due after ten years

  209,003   184,183 

Residential mortgage pass-through securities

  475,263   417,578 

Commercial mortgage pass-through securities

  25,485   21,104 

Other securities

  242   242 

Total securities available-for-sale

 $721,799  $634,884 

 

 

Gross gains and losses from the sales and redemptions of investment securities for the years ended December 31, 2022, 2021 and 2020 were as follows:

 

  

Years Ended December 31,

 
  

2022

  

2021

  

2020

 
  

(dollars in thousands)

 

Proceeds

 $-  $5,185  $19,624 

Gross gains on sale/redemption of investment securities

 $-  $195  $29 

Gross losses on sale/redemption of investment securities

  -   -   - 

Net gains on sales/redemptions of investment securities​​

  -   195   29 

Tax provision on net gains

  -   (48)  (6)

Net gains on sale/redemption of investment securities, after tax​​

 $-  $147  $23 

 

 

Note 3 – Investment Securities – (continued)

 

Impairment Analysis of Available-for-Sale Debt Securities

 

The following tables indicate gross unrealized losses for which an ACL has not been recorded, aggregated by investment category and by the length of continuous time individual securities have been in an unrealized loss position as of December 31, 2022 and December 31, 2021.

 

  

December 31, 2022

 
  

Total

  

Less than 12 Months

  

12 Months or Longer

 
  Fair  Unrealized  Fair  Unrealized  Fair  Unrealized 
  

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 
  

(dollars in thousands)

 

Investment securities available-for-sale:

                        

Federal agency obligation

 $44,451  $(10,439) $20,517  $(1,831) $23,934  $(8,608)

Residential mortgage pass-through securities

  403,039   (57,863)  218,918   (13,869)  184,121   (43,994)

Commercial mortgage pass-through securities

  21,105   (4,381)  14,523   (2,304)  6,582   (2,077)

Obligations of U.S. states and political subdivisions

  133,265   (14,462)  47,446   (3,404)  85,819   (11,058)

Corporate bonds and notes

  4,973   (26)  4,973   (26)  -   - 

Asset-backed securities

  1,640   (33)  1,048   (16)  592   (17)

Total temporarily impaired securities

 $608,473  $(87,204) $307,425  $(21,450) $301,048  $(65,754)

 

  

December 31, 2021

 
  

Total

  

Less than 12 Months

  

12 Months or Longer

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 
  

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 
  

(dollars in thousands)

 

Investment securities available-for-sale:

                        

Federal agency obligation

 $28,974  $(625) $28,974  $(625) $-  $- 

Residential mortgage pass-through securities

  246,396   (2,884)  214,701   (2,111)  31,695   (773)

Commercial mortgage pass-through securities

  8,370   (463)  4,682   (75)  3,688   (388)

Obligations of U.S. states and political subdivisions

  89,473   (982)  89,473   (982)  -   - 

Asset-backed securities

  802   (2)  802   (2)  -   - 

Total temporarily impaired securities

 $374,015  $(4,956) $338,632  $(3,795) $35,383  $(1,161)

 

On January 1, 2021, the Company adopted ASU 2016-13 and implemented the CECL methodology for allowance for credit losses on its investment securities available-for-sale. The new CECL methodology replaces the other-than-temporary impairment model that previously existed. The Company did not have a CECL day 1 impact attributable to its investment securities portfolio and did not have an allowance for credit losses as of December 31, 2022. The Company has elected to exclude accrued interest from the amortized cost of its investment securities available-for-sale. Accrued interest receivable for investment securities available for sale as of December 31, 2022 and December 31, 2021, totaled $2.4 million and $1.6 million, respectively.

 

Note 3 – Investment Securities – (continued)

 

The Company evaluates securities in an unrealized loss position for impairment related to credit losses on at least a quarterly basis. Securities in unrealized loss positions are first assessed as to whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If one of the criteria is met, the security’s amortized cost basis is written down to fair value through current earnings. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value resulted from credit losses or other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Unrealized losses on asset backed securities and state and municipal securities have not been recognized into income because the issuers are of high credit quality, we do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery. The decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the securities. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. No allowance for credit losses for available-for-sale securities was recorded as of December 31, 2022.

 

Federal agency obligations, residential mortgage-backed pass-through securities and commercial mortgage-backed pass-through securities are issued by U.S. Government agencies and U.S. Government sponsored enterprises. Although a government guarantee exists on these investments, these entities are not legally backed by the full faith and credit of the federal government, and the current support they receive is subject to a cap as part of the agreement entered into in 2008. Nonetheless, at this time we do not foresee any set of circumstances in which the government would not fund its commitments on these investments as the issuers are an integral part of the U.S. housing market in providing liquidity and stability. Therefore, we concluded that a zero-allowance approach for these investment securities is appropriate.

 
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 4 – Loans and the Allowance for Credit Losses

 

Loans Receivable: The following table sets forth the composition of the Company’s loan portfolio segments, net of deferred fees, as of December 31, 2022 and December 31, 2021:

 

  

2022

  

2021

 
  

(dollars in thousands)

 

Commercial (1)

 $1,472,734  $1,299,428 

Commercial real estate

  5,795,228   4,741,590 

Commercial construction

  574,139   540,178 

Residential real estate

  264,748   255,269 

Consumer

  2,312   1,886 

Gross loans

  8,109,161   6,838,351 

Net deferred fees

  (9,472)  (9,729)

Loans receivable

 $8,099,689  $6,828,622 

 

 

 (1)

Included in commercial loans as of December 31, 2022 and  December 31, 2021 were Paycheck Protection Program (“PPP”) loans of $11.4 million and $93.1 million, respectively. These loans are 100% federally guaranteed and currently not subject to any allocation of allowance for credit losses.

 

As of December 31, 2022, and 2021, loan balances of approximately $2.7 billion and $2.5 billion, respectively, were pledged to secure borrowings from the Federal Home Loan Bank.

 

The loan segments in the above table have unique risk characteristics with respect to credit quality:

 

 •

The repayment of commercial loans is generally dependent on the creditworthiness and cash flow of borrowers, and if applicable, guarantors, which may be negatively impacted by adverse economic conditions. While the majority of these loans are secured, collateral type, marketing, coverage, valuation and monitoring is not as uniform as in other portfolio classes and recovery from liquidation of such collateral may be subject to greater variability.

  

 

 •

Payment on commercial real estate is driven principally by operating results of the managed properties or underlying business and secondarily by the sale or refinance of such properties. Both primary and secondary sources of repayment, and value of the properties in liquidation, may be affected to a greater extent by adverse conditions in the real estate market or the economy in general.

  

 

 •

Properties underlying construction, land and land development loans often do not generate sufficient cash flows to service debt and thus repayment is subject to ability of the borrower and, if applicable, guarantors, to complete development or construction of the property and carry the project, often for extended periods of time. As a result, the performance of these loans is contingent upon future events whose probability at the time of origination is uncertain.

  

 

 •

The ability of borrowers to service debt in the residential and consumer loan portfolios is generally subject to personal income which may be impacted by general economic conditions, such as increased unemployment levels. These loans are predominately collateralized by first and/or second liens on single family properties. If a borrower cannot maintain the loan, the Company’s ability to recover against the collateral in sufficient amount and in a timely manner may be significantly influenced by market, legal and regulatory conditions.

  

 

 •

The Company considers loan classes and loan segments to be one and the same.

 

Loans Held-For-Sale: The following table presents loans held-for-sale by loan segment as of December 31, 2022 and December 31, 2021:

 

  

2022

  

2021

 
  

(dollars in thousands)

 

Commercial

 $13,473  $- 

Residential real estate

  299   250 

Total carrying amount

 $13,772  $250 

 

Loans Receivable on Nonaccrual Status - The following tables present nonaccrual loans with an allowance for credit loss (“ACL”) as of December 31, 2022 and December 31, 2021 and nonaccrual loans without an ACL as of December 31, 2022 and December 31, 2021:

 

  

December 31, 2022

 
  

Nonaccrual loans with ACL

  

Nonaccrual loans without ACL

  

Total Nonaccrual loans

 
  

(dollars in thousands)

 

Commercial

 $23,512  $1,745  $25,257 

Commercial real estate

  10,220   6,597   16,817 

Residential real estate

  604   1,776   2,380 

Total

 $34,336  $10,118  $44,454 

 

  

December 31, 2021

 
  

Nonaccrual loans with ACL

  

Nonaccrual loans without ACL

  

Total Nonaccrual loans

 
  

(dollars in thousands)

 

Commercial

 $28,746  $1,316  $30,062 

Commercial real estate

  15,362   10,031   25,393 

Commercial construction

  -   3,150   3,150 

Residential real estate

  1,239   1,856   3,095 

Total

 $45,347  $16,353  $61,700 

 

Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and loans individually evaluated for impairment.

 

 

Credit Quality Indicators - The Company continuously monitors the credit quality of its loans receivable. In addition to its internal monitoring, the Company utilizes the services of a third-party loan review firm to periodically validate the credit quality of its loans receivable on a sample basis. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified as “Pass” are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as “Special Mention” have generally acceptable credit quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such conditions include strained liquidity, slow pay, stale financial statements, or other conditions that require more stringent attention from the lending staff. These conditions, if not corrected, may weaken the loan quality or inadequately protect the Company’s credit position at some future date. Assets are classified as “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified as special mention. Such weakness, if left uncorrected, could possibly result in the compromised ability of the loan to perform to contractual requirements. An asset is classified as “Doubtful” if it is inadequately protected by the net worth and/or paying capacity of the obligor or of the collateral, if any, that secures the obligation. Assets classified as doubtful include assets for which there is a “distinct possibility” that a degree of loss will occur if the inadequacies are not corrected.

 

 

We evaluate whether a modification, extension or renewal of a loan is a current period origination in accordance with GAAP. Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the table below. As of December 31, 2022, our loans based on year of origination and risk designation are as follows (dollars in thousands):

 

  

Term loans amortized cost basis by origination year

         
                          

Revolving

  

Total

 
  

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Loans

  

Gross Loans

 

Commercial

                                

Pass

 $301,636  $305,721  $47,952  $28,177  $52,950  $127,739  $550,483  $1,414,658 

Special mention

  -   -   -   583   26   8,551   3,292   12,452 

Substandard

  7,615   146   15   1,769   11,214   22,596   2,269   45,624 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial

 $309,251  $305,867  $47,967  $30,529  $64,190  $158,886  $556,044  $1,472,734 
                                 

Commercial Real Estate

                                

Pass

 $1,571,751  $1,608,023  $382,987  $358,578  $375,886  $987,982  $401,365  $5,686,572 

Special mention

  3,040   -   -   -   -   37,774   8,839   49,653 

Substandard

  -   1,929   -   6,526   19,138   23,287   8,123   59,003 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Real Estate

 $1,574,791  $1,609,952  $382,987  $365,104  $395,024  $1,049,043  $418,327  $5,795,228 
                                 

Commercial Construction

                                

Pass

 $8,615  $7,605  $6,720  $508  $-  $-  $542,460  $565,908 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   8,231   8,231 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Construction

 $8,615  $7,605  $6,720  $508  $-  $-  $550,691  $574,139 
                                 

Residential Real Estate

                                

Pass

 $45,926  $25,318  $24,409  $21,557  $20,284  $78,314  $41,468  $257,276 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   3,379   4,093   7,472 

Doubtful

  -   -   -   -   -   -   -   - 

Total Residential Real Estate

 $45,926  $25,318  $24,409  $21,557  $20,284  $81,693  $45,561  $264,748 
                                 

Consumer

                                

Pass

 $2,219  $-  $9  $-  $-  $2  $82  $2,312 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   -   - 

Doubtful

  -   -   -   -   -   -   -   - 

Total Consumer

 $2,219  $-  $9  $-  $-  $2  $82  $2,312 
                                 

Total

                                

Pass

 $1,930,147  $1,946,667  $462,077  $408,820  $449,120  $1,194,037  $1,535,858  $7,926,726 

Special mention

  3,040   -   -   583   26   46,325   12,131   62,105 

Substandard

  7,615   2,075   15   8,295   30,352   49,262   22,716   120,330 

Doubtful

  -   -   -   -   -   -   -   - 

Grand Total

 $1,940,802  $1,948,742  $462,092  $417,698  $479,498  $1,289,624  $1,570,705  $8,109,161 

 

 

As of December 31, 2021, our loans based on year of origination and risk designation are as follows (dollars in thousands):

 

                          

Revolving

  

Total

 
  

2021

  

2020

  

2019

  

2018

  

2017

  

Prior

  

Loans

  

Gross Loans

 

Commercial

                                

Pass

 $403,203  $58,534  $54,485  $60,409  $95,727  $86,556  $471,588  $1,230,502 

Special mention

  -   -   -   -   1   4,045   4,266   8,312 

Substandard

  170   -   1,842   13,298   9,740   21,024   14,540   60,614 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial

 $403,373  $58,534  $56,327  $73,707  $105,468  $111,625  $490,394  $1,299,428 
                                 

Commercial Real Estate

                                

Pass

 $1,692,098  $533,315  $420,995  $452,262  $497,065  $842,244  $170,721  $4,608,700 

Special mention

  -   -   -   -   5,142   50,438   6,601   62,181 

Substandard

  1,968   9,039   4,006   20,624   -   26,108   8,964   70,709 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Real Estate

 $1,694,066  $542,354  $425,001  $472,886  $502,207  $918,790  $186,286  $4,741,590 
                                 

Commercial Construction

                                

Pass

 $8,018  $7,370  $12,625  $2,600  $2,339  $-  $490,119  $523,071 

Special mention

  -   -   -   -   350   -   1,443   1,793 

Substandard

  -   -   -   -   -   -   15,314   15,314 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Construction

 $8,018  $7,370  $12,625  $2,600  $2,689  $-  $506,876  $540,178 
                                 

Residential Real Estate

                                

Pass

 $27,081  $29,539  $23,611  $25,070  $28,701  $66,249  $44,221  $244,472 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   7,262   3,535   10,797 

Doubtful

  -   -   -   -   -   -   -   - 

Total Residential Real Estate

 $27,081  $29,539  $23,611  $25,070  $28,701  $73,511  $47,756  $255,269 
                                 

Consumer

                                

Pass

 $1,590  $85  $39  $21  $28  $-  $123  $1,886 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   -   - 

Doubtful

  -   -   -   -   -   -   -   - 

Total Consumer

 $1,590  $85  $39  $21  $28  $-  $123  $1,886 
                                 

Total

                                

Pass

 $2,131,990  $628,843  $511,755  $540,362  $623,860  $995,049  $1,176,772  $6,608,631 

Special mention

  -   -   -   -   5,493   54,483   12,310   72,286 

Substandard

  2,138   9,039   5,848   33,922   9,740   54,394   42,353   157,434 

Doubtful

  -   -   -   -   -   -   -   - 

Grand Total

 $2,134,128  $637,882  $517,603  $574,284  $639,093  $1,103,926  $1,231,435  $6,838,351 

 

 

Collateral Dependent Loans: Loans which meet certain criteria are individually evaluated as part of the process of calculating the allowance for credit losses. The evaluation is determined on an individual basis using the fair value of the collateral as of the reporting date. The following table presents collateral dependent loans that were individually evaluated for impairment as of December 31, 2022 and 2021:

 

  

December 31, 2022

 
  

Real Estate

  

Other

  

Total

 
  

(dollars in thousands)

 

Commercial

 $5,352  $22,517  $27,869 

Commercial real estate

  52,477   -   52,477 

Commercial construction

  8,232   -   8,232 

Residential real estate

  5,864   -   5,864 

Total

 $71,925  $22,517  $94,442 

 

  

December 31, 2021

 
  

Real Estate

  

Other

  

Total

 
  

(dollars in thousands)

 

Commercial

 $6,385  $26,182  $32,567 

Commercial real estate

  55,244   -   55,244 

Commercial construction

  13,196   -   13,196 

Residential real estate

  8,856   -   8,856 

Total

 $83,681  $26,182  $109,863 

 

 

Aging Analysis - The following table provides an analysis of the aging of the loans by class, excluding the effect of net deferred fees, which are past due as of December 31, 2022 and  December 31, 2021 (dollars in thousands):

 

  

December 31, 2022

 
  

30-59 Days Past Due

  

60-89 Days Past Due

  

90 Days or Greater Past Due and Still Accruing

  

Nonaccrual

  

Total Past Due and Nonaccrual

  

Current

  

Gross Loans

 

Commercial

 $306  $-  $-  $25,257  $25,563  $1,447,171  $1,472,734 

Commercial real Estate

  90   -   5,591   16,817   22,498   5,772,730   5,795,228 

Commercial construction

  -   -   -   -   -   574,139   574,139 

Residential real Estate

  1,569   -   -   2,380   3,949   260,799   264,748 

Consumer

  -   -   -   -   -   2,312   2,312 

Total

 $1,965  $-  $5,591  $44,454  $52,010  $8,057,151  $8,109,161 

 

The 90 days or greater past due and still accruing category reflects purchased credit-deteriorated loans, net of fair value marks, which accrete income per the valuation at date of acquisition.

 

  

December 31, 2021

 
  

30-59 Days Past Due

  

60-89 Days Past Due

  

90 Days or Greater Past Due and Still Accruing

  

Nonaccrual

  

Total Past Due and Nonaccrual

  

Current

  

Total Loans Receivable

 

Commercial

 $4,305  $729  $4,457  $30,062  $39,553  $1,259,875  $1,299,428 

Commercial real estate

  1,622   1,009   5,935   25,393   33,959   4,707,631   4,741,590 

Commercial construction

  -   -   -   3,150   3,150   537,028   540,178 

Residential real estate

  1,437   292   3,139   3,095   7,963   247,306   255,269 

Consumer

  -   -   -   -   -   1,886   1,886 

Total

 $7,364  $2,030  $13,531  $61,700  $84,625  $6,753,726  $6,838,351 

 

The 90 days or greater past due and still accruing category reflects purchased credit-deteriorated loans, net of fair value marks, which accrete income per the valuation at date of acquisition.

 

 

The following tables detail the amount of gross loans that are individually evaluated for impairment, collectively evaluated for impairment, and loans acquired with deteriorated quality, and the related portion of the allowance for credit losses for loans that are allocated to each loan portfolio segment.

 

  

December 31, 2022

 
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Total

 
  

(dollars in thousands)

 

Allowance for credit losses - loans

                        

Individually evaluated

 $7,426  $1,003  $-  $50  $-  $8,479 

Collectively evaluated

  19,319   50,818   3,718   4,093   7   77,955 

Acquired with deteriorated credit quality individually analyzed​​

  2,158   1,921   -   -   -   4,079 

Total

 $28,903  $53,742  $3,718  $4,143  $7  $90,513 

Gross loans

                        

Individually evaluated

 $30,994  $46,886  $8,232  $5,864  $-  $91,976 

Collectively evaluated

  1,436,866   5,742,751   565,907   258,884   2,312   8,006,720 

Acquired with deteriorated credit quality individually analyzed​​

  4,874   5,591   -   -   -   10,465 

Total

 $1,472,734  $5,795,228  $574,139  $264,748  $2,312  $8,109,161 

 

  

  

December 31, 2021

 
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Total

 
  

(dollars in thousands)

 

Allowance for credit losses - loans

                        

Individually evaluated

 $15,131  $955  $-  $131  $-  $16,217 

Collectively evaluated

  8,561   42,713   3,580   3,497   7   58,358 

Acquired with deteriorated credit quality individually analyzed​​

  2,277   1,921   -   -   -   4,198 

Total

 $25,969  $45,589  $3,580  $3,628  $7  $78,773 
                         

Gross loans

                        

Individually evaluated

 $33,726  $49,310  $13,196  $5,717  $-  $101,949 

Collectively evaluated

  1,260,537   4,686,346   526,982   246,413   1,886   6,722,164 

Acquired with deteriorated credit quality individually analyzed​​

  5,165   5,934   -   3,139   -   14,238 

Total

 $1,299,428  $4,741,590  $540,178  $255,269  $1,886  $6,838,351 

 

 

A summary of the activity in the allowance for credit losses for loans by loan segment is as follows:

 

  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Unallocated

  

Total

 
  

(dollars in thousands)

 

Balance as of January 1, 2022

 $25,969  $45,589  $3,580  $3,628  $7  $-  $78,773 

Charge-offs

  (2,612)  (2,819)  -   (9)  (3)  -   (5,443)

Recoveries

  54   -   -   63   -   -   117 

Provision for credit losses

  5,492   10,972   138   461   3   -   17,066 

Balance as of December 31, 2022

 $28,903  $53,742  $3,718  $4,143  $7  $-  $90,513 

 

On January 1, 2021, the Company adopted CECL, which replaced the incurred loss method we used in prior periods for determining the provision for credit losses and the allowance for credit losses. Under CECL, we record an expected loss of all cash flows we do not expect to collect at the inception of the loan. The adoption of CECL resulted in an increase in our allowance for credit losses for loans of $6.6 million, which did not impact our consolidated income statement.

 

  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Unallocated

  

Total

 
  

(dollars in thousands)

 

Balance as of January 1, 2021

 $28,443  $39,330  $8,194  $2,687  $4  $568  $79,226 

Day 1 Adjustment CECL

  (4,225)  9,605   (961)  2,697   9   (568)  6,557 

Balance as of January 1, 2021

  24,218   48,935   7,233   5,384   13   -   85,783 

Charge-offs

  (382)  (1,780)  -   (235)  -   -   (2,397)

Recoveries

  289   85   -   20   11   -   405 

Provision for (reversal of) credit losses

  1,844   (1,651)  (3,653)  (1,541)  (17)  -   (5,018)

Balance as of December 31, 2021

 $25,969  $45,589  $3,580  $3,628  $7  $-  $78,773 

 

 

  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Unallocated

  

Total

 
  

(dollars in thousands)

 

Balance as of January 1, 2020

 $8,349  $20,853  $7,304  $1,685  $3  $99  $38,293 

Charge-offs

  (552)  -   -   (341)  (7)  -   (900)

Recoveries

  4   802   -   23   4   -   833 

Provision for loan losses

  20,642   17,675   890   1,320   4   469   41,000 

Balance as of December 31, 2020

 $28,443  $39,330  $8,194  $2,687  $4  $568  $79,226 

 

 

Troubled Debt Restructurings

 

Loans are considered to have been modified in a troubled debt restructuring (“TDR”) when, except as discussed below, due to a borrower’s financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, maturity extensions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a TDR remains on nonaccrual status for a period of nine months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual status.

 

As of December 31, 2022, there were no commitments to lend additional funds to borrowers whose loans were on nonaccrual status or were contractually past due 90 days or greater and still accruing interest, or whose terms have been modified in a TDR.

 

As of December 31, 2022, TDRs totaled $75.1 million, of which $23.7 million were on nonaccrual status and $51.4 million were classified as accruing and were performing under their restructured terms. As of December 31, 2021, TDRs totaled $79.5 million, of which $35.9 million were on nonaccrual status and $43.6 million were classified as accruing and were performing under their restructured terms. The Company has allocated $4.2 million and $10.4 million of specific allowance related to TDRs as of December 31, 2022 and December 31, 2021, respectively. There were no TDRs for which there was a payment default within twelve months following the modification during the year ended December 31, 2022, 2021 and 2020.

 

The following table presents loans by class modified as TDRs during the year ended December 31, 2022:

 

      

Pre-Modification

  

Post-Modification

 
      

Outstanding

  

Outstanding

 
  

Number of

  

Recorded

  

Recorded

 
  

Loans

  

Investment

  

Investment

 
  

(dollars in thousands)

 

Troubled debt restructurings:

            

Commercial

  2  $633  $633 

Commercial real estate

  3   12,083   11,583 

Residential real estate

  3   949   949 

Total

  8  $13,665  $13,165 

                    

The loans modified as TDRs during the year ended December 31, 2022 included maturity extensions and interest rate reductions.  One of the commercial real estate loans included a one-time principal paydown of $500,000 at the time of modification.  The eight loans modified during the year ended December 31, 2022 resulted in a $0.3 million increase to the allowance for credit losses at the time of their modification.

   

 

 

The following table presents loans by class modified as TDRs during the year ended December 31, 2021

 

      

Pre-Modification

  

Post-Modification

 
      

Outstanding

  

Outstanding

 
  

Number of

  

Recorded

  

Recorded

 
  

Loans

  

Investment

  

Investment

 
  

(dollars in thousands)

 

Troubled debt restructurings:

            

Commercial

  4  $1,276  $1,276 

Commercial real estate

  11   35,635   35,635 

Commercial construction

  1   1,641   1,641 

Residential real estate

  3   1,758   1,758 

Total

  19  $40,310  $40,310 

                     

  The loans modified as TDRs during the year ended December 31, 2021 included maturity extensions and interest rate reductions.             

       

The following table presents loans by class modified as TDRs during the year ended December 31, 2020:

 

      

Pre-Modification

  

Post-Modification

 
      

Outstanding

  

Outstanding

 
  

Number of

  

Recorded

  

Recorded

 
  

Loans

  

Investment

  

Investment

 
  

(dollars in thousands)

 

Troubled debt restructurings:

            

Commercial

  1  $188  $188 

Commercial real estate

  1   93   93 

Commercial construction

  1   4,021   4,021 

Residential real estate

  2   2,184   2,184 

Total

  5  $6,486  $6,486 

 

The five loan modifications during the year ended December 31, 2020 were maturity extensions. 

 

 

Allowance for Credit Losses for Unfunded Commitments

 

The Company has recorded an ACL for unfunded credit commitments, which is recorded in other liabilities. The provision is recorded within the (reversal of) provision for credit losses on the Company’s income statement. The following table presents the allowance for credit losses for unfunded commitments for the year ended December 31, 2022 and 2021 (dollars in thousands):

 

         
  

2022

  

2021

 

Balance as of beginning of period

 $2,351  $- 

Day 1 Effect of CECL

  -   2,833 

Provision for (reversal of) credit losses - unfunded commitments

  684   (482)

Balance as of end of period

 $3,035  $2,351 
         

 

Components of (Reversal of) Provision for Credit Losses

 

The following table summarizes the provision for (reversal of) provision for credit losses for the year ended December 31, 2022 and 2021 (dollars in thousands):

 

         
  

2022

  

2021

 

Provision for (reversal of) credit losses - loans

 $17,066  $(5,018)

Provision for (reversal of) credit losses - unfunded commitments

  684   (482)

Provision for (reversal of) credit losses

 $17,750  $(5,500)

 
v3.22.4
Note 5 - Premises and Equipment
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]

Note 5 – Premises and Equipment

 

Premises and equipment are summarized as follows December 31, 2022 and 2021 :

 

  

Estimated

         
  

Useful Life

         
  

(Years)

  

2022

  

2021

 
  

(dollars in thousands)

 

Land

  -  $6,732  $7,232 

Buildings

  10-25   9,797   10,509 

Furniture, fixtures and equipment

  3-7   24,830   24,137 

Leasehold improvements

  10-20   25,164   27,343 

Subtotal

      66,523   69,221 

Less: accumulated depreciation, amortization and fair value adjustments

      38,723   40,189 

Total premises and equipment, net

     $27,800  $29,032 

 

 

Depreciation and amortization expense of premises and equipment was $3.9 million, $3.8 million and $4.2 million for 2022, 2021 and 2020, respectively.

 

Finance Leases: The Company has a lease agreement for a building accounted for as a finance lease. The lease arrangement requires monthly payments through 2028. As of December 31, 2022, the weighted average remaining term for the finance lease was 5.9 years and the weighted average discount rate used in the measurement of finance lease liabilities was 6.0%. Total finance lease costs for the year ended December 31, 2022, was $280 thousand.

 

The Company has included this lease in premises and equipment as follows December 31, 2022 and 2021 :

 

  

2022

  

2021

 
  

(dollars in thousands)

 

Finance lease

 $3,423  $3,423 

Less: accumulated amortization

  2,395   2,224 
  $1,028  $1,199 

 

 

The following is a schedule by year of future minimum lease payments under the finance lease, together with the present value of net minimum lease payments as of December 31, 2022 (dollars in thousands):

 

2023

 $323 

2024

  353 

2025

  353 

2026

  353 

2027

  353 

Thereafter

  323 

Total minimum lease payments

  2,058 
     

Less amount representing interest

  325 

Present value of net minimum lease payments

 $1,733 

 

 

 

The Company leases certain premises and equipment under operating leases. As of December 31, 2022, the Company had lease liabilities totaling $11.4 million and right-of-use assets totaling $10.2 million. As of December 31, 2022, the weighted average remaining lease term for operating leases was 5 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.8%. Total lease costs for the year ended December 31, 2022 was $3.2 million.

 

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows:

 

  

December 31,

 
  

2022

 
  

(dollars in thousands)

 

Lease payments due:

    

Less than 1 year

 $2,958 

1 year through less than 2 years

  2,422 

2 years through less than 3 years

  2,139 

3 years through less than 4 years

  2,043 

4 years through 5 years

  1,391 

After 5 years

  1,360 

Total undiscounted cash flows

  12,313 

Impact of discounting

  (916)

Total lease liability

 $11,397 

 

 
v3.22.4
Note 6 - Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

Note 6 – Goodwill and Other Intangible Assets

 

A goodwill impairment test is required under ASC 350, Intangibles – Goodwill and Other, and the FASB issued ASU No. 2011-08, “Testing Goodwill for Impairment,” allowing an initial qualitative assessment of goodwill commonly known as step zero impairment testing. In general, the step zero test allows an entity to first assess qualitative factors to determine whether it is more likely than not (i.e., more than 50%) that the fair value of a reporting unit is less than its carrying value. If a step zero impairment test results in the conclusion that it is more likely than not that the fair value of the reporting unit exceeds its carrying value, then no further testing is required.

 

Based upon management’s review through December 31, 2022, the Company’s goodwill was not impaired. Management concludes that the ASC 350 goodwill step zero test has been passed, and no further testing is required.

 

Goodwill

 

The change in goodwill during the year is as follows:

 

  

2022

  

2021

 
  

(dollars in thousands)

 

Balance, January 1

 $208,372  $208,372 

Acquired goodwill

  -   - 

Impairment

  -   - 

Balance, December 31

 $208,372  $208,372 

 

 

 

Acquired Intangible Assets

 

The table below provides information regarding the carrying amounts and accumulated amortization of total amortized intangible assets as of the dates set forth below.

 

  

Gross

      

Net

 
  

Carrying

  

Accumulated

  

Carrying

 
  

Amount

  

Amortization

  

Amount

 
  

(dollars in thousands)

 

Core deposit intangibles

            

December 31, 2022

 $18,515  $(11,203) $7,312 

Core deposit intangibles

            

December 31, 2021

 $18,515  $(9,518) $8,997 

 

Aggregate amortization expense was approximately $1.7 million, $2.0 million and $2.6 million for 2022, 2021 and 2020, respectively. Estimated amortization expense for each of the next five years (dollars in thousands):

 

2023

 $1,438 

2024

  1,235 

2025

  1,116 

2026

  1,050 

2027

  989 

 

 
v3.22.4
Note 7 - Deposits
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Deposit Liabilities Disclosures [Text Block]

Note 7 – Deposits

 

Time Deposits

 

As of December 31, 2022, and 2021, the Company's total time deposits were $2.4 billion and $1.2 billion, respectively. Included in time deposits were gross nonreciprocal brokered time deposits of $934.9 million and $215.2 million as of December 31, 2022 and 2021, respectively. As of December 31, 2022, the contractual maturities of these time deposits were as follows (dollars in thousands):

 

2023

 $1,571,746 

2024

  502,172 

2025

  112,106 

2026

  169,440 

2027

  40,179 

Time Deposits (before net discount)

 $2,395,643 

Fair value net discount

  (1,453)

Total Time Deposits (after net discount)

 $2,394,190 

 

 

The amount of time deposits with balances in excess of $250,000 were $591.8 million and $250.5 million as of December 31, 2022 and 2021, respectively.

 
v3.22.4
Note 8 - FHLB Borrowings
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Federal Home Loan Bank, Advances [Text Block]

Note 8 – FHLB Borrowings

 

The Company’s FHLB borrowings and weighted average interest rates are summarized below:

 

  

December 31, 2022

  

December 31, 2021

 
  

Amount

  

Rate

  

Amount

  

Rate

 
  

(dollars in thousands)

 

By remaining period to maturity:

                

Less than 1 year

 $830,000   4.42% $390,549   0.56%

1 year through less than 2 years

  -   -   50,000   1.84 

2 years through less than 3 years

  25,000   1.00   -   n/a 

3 years through less than 4 years

  2,050   2.23   25,000   1.00 

4 years through 5 years

  326   2.85   2,050   2.23 

After 5 Years

  326   2.96   714   2.91 

FHLB borrowings - (before discount)

  857,702   4.32%  468,313   0.73%

Fair value discount

  (80)      (120)    

FHLB borrowings (after discount)

 $857,622      $468,193     

 

The FHLB borrowings are secured by pledges of certain collateral including, but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgages and commercial real estate loans.

 

Advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances have fixed rates. The advances as of December 31, 2022 were primarily collateralized by approximately $2.7 billion of commercial mortgage and residential loans, net of required over collateralization amounts, under a blanket lien arrangement. As of December 31, 2022, the Company had remaining borrowing capacity of approximately $498.9 million at the FHLB.

 
v3.22.4
Note 9 - Subordinated Debentures
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Subordinated Borrowings Disclosure [Text Block]

Note 9 – Subordinated Debentures

 

During 2003, the Company formed a statutory business trust, which exists for the exclusive purpose of (i) issuing Trust Securities representing undivided beneficial interests in the assets of the Trust; (ii) investing the gross proceeds of the Trust securities in junior subordinated deferrable interest debentures (subordinated debentures) of the Company; and (iii) engaging in only those activities necessary or incidental thereto. On December 19, 2003, Center Bancorp Statutory Trust II, a statutory business trust and wholly-owned subsidiary of the Parent Corporation issued $5.0 million of MMCapS capital securities to investors due on January 23, 2034. The capital securities presently qualify as Tier I capital. The trust loaned the proceeds of this offering to the Company and received in exchange $5.2 million of the Parent Corporation’s subordinated debentures. The subordinated debentures are redeemable in whole or in part prior to maturity. The floating interest rate on the subordinate debentures is three-month LIBOR plus 2.85% and reprices quarterly. The rate as of December 31, 2022 was 7.26%. These subordinated debentures and the related income effects are not eliminated in the consolidated financial statements as the statutory business trust is not consolidated in accordance with FASB ASC 810-10. Distributions on the subordinated debentures owned by the subsidiary trust have been classified as interest expense in the Consolidated Statements of Income.

 

The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II as of December 31, 2022 and December 31, 2021.

 

Issuance Date

 

Securities Issued

 

Liquidation Value

 

Coupon Rate

 

Maturity

 

Redeemable by Issuer

Beginning

12/19/2003

 $5,000,000 

$1,000 per Capital Security

 

Floating 3-month LIBOR + 285 Basis Points

 

1/23/2034

 

1/23/2009

 

On June 10, 2020, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “2020 Notes”). The 2020 Notes bear interest at 5.75% annually from, and including, the date of initial issuance to, but excluding, June 15, 2025 or the date of earlier redemption, payable semi-annually in arrears on June 15 and December 15 of each year, commencing December 15, 2020. From and including June 15, 2025 through maturity or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in the Second Supplemental Indenture), plus 560.5 basis points, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on September 15, 2025. Notwithstanding the foregoing, if the benchmark rate is less than zero, then the benchmark rate shall be deemed to be zero.

 

On January 11, 2018, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “2018 Notes”). The 2018 Notes bore interest at  a rate that  resets quarterly to an interest rate per annum equal to the then current three-month LIBOR rate plus 284 basis points (2.84%) payable quarterly in arrears. Interest on the 2018 Notes was to be  paid on  on February 1, May 1, August 1, and November 1, of each year to but excluding the stated maturity date, unless in any case previously redeemed. The 2018 Notes were redeemed in full on February 1, 2023.

 

During June 2015, the Parent Corporation issued $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “2015 Notes”).  As of December 31, 2020, the 2015 Notes had a stated maturity of July 1, 2025, and bore interest until the maturity date or early redemption date at a variable rate equal to the then current three-month LIBOR rate plus 393 basis points. As of December 31, 2020, the variable interest rate was 4.16%, all costs related to 2015 issuance had been amortized and the 2015 Notes were redeemed in full on January 1, 2021.

 

 
v3.22.4
Note 10 - Income Taxes
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 10 – Income Taxes

 

The current and deferred amounts of income tax expense for December 2022, 2021 and 2020 are as follows (dollars in thousands):

 

  

2022

  

2021

  

2020

 

Current:

            

Federal

 $33,169  $32,364  $19,590 

State

  13,247   12,325   7,006 

Subtotal

  46,416   44,689   26,596 

Deferred:

            

Federal

  (3,353)  (110)  (3,881)

State

  2,950   126   (3,614)

Subtotal

  (403)  16   (7,495)

Income tax expense

 $46,013  $44,705  $19,101 

 

On July 1, 2018 New Jersey Governor Phil Murphy signed Assembly Bill 4202 (“the Bill”) into law. The legislation imposes a temporary surtax on corporations earning New Jersey allocated income in excess of $1 million of 2.5% for tax years beginning on or after January 1, 2018 through December 31, 2019, and of 1.5% for tax years beginning on or after January 1, 2020 through December 31, 2021. However, in 2020, this surtax was extended through December 31, 2023, at the 2.5% level. The legislation also requires combined filing for members of an affiliated group for tax years beginning on or after January 1, 2019, changing New Jersey’s current status as a separate return state, and limits the deductibility of dividends received.

 

Actual income tax expense differs from the tax computed based on pre-tax income and the applicable statutory federal tax rate for the following reasons (dollars in thousands) December 31,

 

  

2022

  

2021

  

2020

 

Income before income tax expense

 $171,224  $175,058  $90,390 

Federal statutory rate

  21%  21%  21%

Computed “expected” Federal income tax expense

  35,957   36,762   18,982 

State tax, net of federal tax benefit

  13,314   9,127   1,913 

162M adjustment

  777   -   - 

Bank owned life insurance

  (1,175)  (1,001)  (1,052)

Tax-exempt interest and dividends

  (1,969)  (1,405)  (1,491)

Tax benefits from stock-based compensation

  (417)  (261)  157 

Other, net

  (474)  1,483   592 

Income tax expense

 $46,013  $44,705  $19,101 

 

 

 

The tax effects of temporary differences that give rise to significant portions of the deferred tax asset and deferred tax liability as of December 31, 2022 and 2021 are presented in the following table:

 

  

2022

  

2021

 
  

(dollars in thousands)

 

Deferred tax assets

        

Allowance for credit losses

 $26,901  $23,955 

Depreciation

  -   205 

Pension actuarial losses

  1,269   1,301 

New Jersey net operating loss

  156   3,609 

Deferred compensation

  3,784   2,786 

Unrealized losses on available-for-sale securities

  25,141   191 

Deferred loan costs, net of fees

  2,664   2,163 

Finance lease

  212   222 

Nonaccrual interest

  168   62 

Operating lease liability

  3,424   3,747 

Other

  4,172   3,703 

Total deferred tax assets

 $67,891  $41,944 

Deferred tax liabilities

        

Employee benefit plans

 $(2,452) $(2,289)

Purchase accounting

  (1,458)  (925)

Depreciation

  (381)  - 

Prepaid expenses

  (1,011)  (288)

Market discount accretion

  -   (437)

Unrealized gains on swaps

  (13,704)  (941)

Right of use asset

  (3,059)  (3,325)

Other

  (1,681)  (1,984)

Total deferred tax liabilities

  (23,746)  (10,189)

Net deferred tax assets

 $44,145  $31,755 

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, the projected future taxable income, and tax planning strategies in making this assessment. During 2022 and 2021, based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, the Company believes the net deferred tax assets are more likely than not to be realized. There are no unrecorded tax benefits, and the Company does not expect the total amount of unrecognized income tax benefits to significantly increase in the next twelve months.

 

The Company’s federal income tax returns are open and subject to examination from the 2019 tax return year and forward. The Company’s state income tax returns are generally open from the 2018 and later tax return years based on individual state statutes of limitations.

 

As of December 31, 2022, the Company has $1.7 million in New Jersey net operating loss (NOL).  The NOL is set to expire on December 31, 2040.

 
v3.22.4
Note 11 - Preferred Stock
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Preferred Stock [Text Block]

Note 11 – Preferred Stock

 

On August 19, 2021, the Company completed an underwritten public offering of 115,000 shares, or $115 million in aggregate liquidation preference, of its depositary shares, each representing a 1/40th interest in a share of the Company’s 5.25% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A, no par value, with a liquidation preference of $1,000 per share. The net proceeds received from the issuance of preferred stock at the time of closing were $110.9 million.

 
v3.22.4
Note 12 - Commitments, Contingencies, and Concentrations of Credit Risk
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

Note 12 – Commitments, Contingencies and Concentrations of Credit Risk

 

In the normal course of business, the Company has outstanding commitments and contingent liabilities, such as standby and commercial letters of credit, unused portions of lines of credit and commitments to extend various types of credit. Commitments to extend credit and standby letters of credit generally do not exceed one year.

 

These financial instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the consolidated financial statements. The commitment or contract amount of these financial instruments is an indicator of the Company’s level of involvement in each type of instrument as well as the exposure to credit loss in the event of nonperformance by the other party to the financial instrument.

 

The Company controls the credit risk of these financial instruments through credit approvals, limits and monitoring procedures. To minimize potential credit risk, the Company generally requires collateral and other credit-related terms and conditions from the client. In the opinion of management, the financial condition of the Company will not be materially affected by the final outcome of these commitments and contingent liabilities. A substantial portion of the Bank’s loans are secured by real estate located in New Jersey and New York. Accordingly, the collectability of a substantial portion of the loan portfolio of the Bank is susceptible to changes in the metropolitan New York real estate market.

 

The following table provides a summary of financial instruments with off-balance sheet risk as of December 31, 2022 and 2021:

 

  

2022

  

2021

 
  

(dollars in thousands)

 

Commitments under commercial loans and lines of credit

 $662,515  $647,971 

Home equity and other revolving lines of credit

  54,302   53,180 

Outstanding commercial mortgage loan commitments

  433,034   514,473 

Standby letters of credit

  20,770   25,271 

Overdraft protection lines

  905   973 

Total

 $1,171,526  $1,241,868 

 

 

The Company is subject to claims and lawsuits that arise in the ordinary course of business. Based upon the information currently available in connection with such claims, it is the opinion of management that the disposition or ultimate determination of such claims will not have a material adverse impact on the consolidated financial position, results of operations, or liquidity of the Company.

 
v3.22.4
Note 13 - Transactions with Executive Officers, Directors, and Principle Stockholders
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

Note 13 – Transactions with Executive Officers, Directors and Principal Stockholders

 

Loans to principal officers, directors, and their affiliates during the years ended December 31, 2022 and 2021 were as follows:

 

  

2022

  

2021

 
  

(dollars in thousands)

 

Balance, January 1

 $17,616  $21,534 

New loans

  1,200   5,250 

Repayments

  (2,550)  (9,168)

Balance, December 31

 $16,266  $17,616 

 

 

Deposits from principal officers, directors, and their affiliates as of December 31, 2022 and 2021 were $49.7 million and $59.5 million respectively.

 

The Company has had, and may be expected to have in the future, banking transactions in the ordinary course of business with its executive officers, directors, principal stockholders, their immediate families and affiliated companies (commonly referred to as related parties). The Company leases banking offices from related party entities. In addition, the Company also utilizes an advertising and public relations agency at which one of the Company’s directors is President and CEO and a principal owner. For these transactions, the expenses are not significant to the operations of the Company.

 
v3.22.4
Note 14 - Stockholders' Equity and Regulatory Requirements
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]

Note 14 – Stockholders’ Equity and Regulatory Requirements

 

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The accumulated other comprehensive gain or loss, on securities and derivatives is not included in computing regulatory capital. Management believes as of December 31, 2022, the Bank and the Parent Corporation meet all capital adequacy requirements to which they are subject.

 

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If an institution is classified as adequately capitalized or lower, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is growth and expansion, and capital restoration plans are required. As of December 31, 2022, and 2021, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

 

 

The following is a summary of the Bank’s and the Parent Corporation’s actual capital amounts and ratios as of December 31, 2022 and 2021, compared to the FRB and FDIC minimum capital adequacy requirements and the FDIC requirements for classification as a well-capitalized institution.

 

                  

For Classification

 
                  

Under Corrective

 
          

Minimum

  

Action Plan

 
          

Capital Adequacy

  

as Well Capitalized

 
  

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 

The Bank

         

(dollars in thousands)

         

December 31, 2022

                        

Leverage (Tier 1) capital

 $996,013   10.64% $374,553   4.00% $468,191   5.00%

Risk-Based Capital:

                        

CET 1

 $996,013   11.60  $386,289   4.50  $557,972   6.50 

Tier 1

  996,013   11.60   515,051   6.00   686,735   8.00 

Total

  1,117,733   13.02   686,735   8.00   858,419   10.00 
                         

December 31, 2021

                        

Leverage (Tier 1) capital

 $891,730   11.43% $312,166   4.00% $390,207   5.00%

Risk-Based Capital:

                        

CET 1

 $891,730   11.96  $335,641   4.50  $484,815   6.50 

Tier 1

  891,730   11.96   447,522   6.00   596,696   8.00 

Total

  1,002,753   13.44   596,696   8.00   745,869   10.00 

 

 

          

Minimum Capital

  

For Classification

 
          

Adequacy

  

as Well Capitalized

 
  Amount  Ratio  Amount  Ratio  Amount  Ratio 

The Company

 (dollars in thousands) 

December 31, 2022

                        

Leverage (Tier 1) capital

 $1,000,577   10.68% $374,729   4.00%  N/A   N/A 

Risk-Based Capital:

                        

CET 1

 $884,495   10.30  $386,295   4.50   N/A   N/A 

Tier 1

  1,000,577   11.66   515,061   6.00   N/A   N/A 

Total

  1,240,047   14.45   686,748   8.00   N/A   N/A 
                         

December 31, 2021

                        

Leverage (Tier 1) capital

 $909,577   11.65% $312,194   4.00%  N/A   N/A 

Risk-Based Capital:

                        

CET 1

 $793,495   10.64  $335,648   4.50   N/A   N/A 

Tier 1

  909,577   12.19   447,531   6.00   N/A   N/A 

Total

  1,138,350   15.26   596,708   8.00   N/A   N/A 

 

As of December 31, 2022, both the Company and Bank satisfy the capital conservation buffer requirements applicable to them. The lowest ratio at the Company is the Tier 1 Risk Based Ratio which was 3.16% above the minimum buffer ratio and, at the Bank, the lowest ratio was the Total Risk Based Capital Ratio which was 2.52% above the minimum buffer ratio. 

 
v3.22.4
Note 15 - Comprehensive Income
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Comprehensive Income (Loss) Note [Text Block]

Note 15 – Comprehensive Income

 

Total comprehensive income includes all changes in equity during a period from transactions and other events and circumstances from non-owner sources. The Company’s other comprehensive income is comprised of unrealized holding gains and losses on securities available-for-sale, unrealized gains and losses on cash flow hedges, obligations for defined benefit pension plan and an adjustment to reflect the curtailment of the Company’s defined benefit pension plan, each net of taxes.

 

The following table represents the reclassification out of accumulated other comprehensive (loss) income for the periods presented:

 

             

Affected Line Item in the

Details about Accumulated Other

 

Amounts Reclassified from Accumulated

 

Consolidated

Comprehensive Income (Loss) Components

 

Other Comprehensive Income (Loss)

 

Statements of Income

  

For the Year Ended

  
  

December 31,

  

(dollars in thousands)

 

2022

  

2021

  

2020

  

Sale of investment securities available-for-sale

 $-  $195  $29 

Net gains on sale of investment securities

   -   (48)  (6)

Income tax expense

   -   147   23  

Net interest income (expense) on swaps

  3,243   (1,873)  (1,577)

Interest income (expense)

   (976)  528   443 

Income tax (benefit) expense

   2,267   (1,345)  (1,134) 

Amortization of pension plan net actuarial losses

  (66)  (299)  (301)

Salaries and employee benefits

   20   84   84 

Income tax benefit

   (46)  (215)  (217) 

Total reclassification

 $2,221  $(1,413) $(1,328) 

 

Accumulated other comprehensive (loss) income as of December 31, 2022 and 2021 consisted of the following:

 

  

2022

  

2021

 
  

(dollars in thousands)

 

Investment securities available-for-sale, net of tax

 $(61,775) $(484)

Cash flow hedge, net of tax

  32,360   2,406 

Defined benefit pension, net of tax

  (2,949)  (3,326)

Total

 $(32,364) $(1,404)

 

 
v3.22.4
Note 16 - Pension and Other Benefits
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Retirement Benefits [Text Block]

Note 16 – Pension and Other Benefits

 

Defined Benefit Plans

 

The Company maintains a frozen, noncontributory pension plan covering employees of the Company prior to the merger with Legacy ConnectOne. The benefits are based on years of service and the employee’s compensation over the prior five-year period. The plan’s benefits are payable in the form of a ten-year certain and life annuity. The plan is intended to be a tax-qualified defined benefit plan under Section 401(a) of the Internal Revenue Code. Payments may be made under the Pension Plan once attaining the normal retirement age of 65 and are generally equal to 44% of a participant’s highest average compensation over a 5-year period.

 

The following table sets forth changes in projected benefit obligation, changes in fair value of plan assets, funded status, and amounts recognized in the consolidated statements of condition for the Company’s pension plans as of December 31, 2022 and 2021.

 

  

2022

  

2021

 
  

(dollars in thousands)

 

Change in Benefit Obligation:

        

Projected benefit obligation as of January 1,

 $14,644  $13,476 

Interest cost

  311   284 

Actuarial (gain) loss

  (4,657)  1,584 

Benefits paid

  (981)  (700)

Projected benefit obligation as of December 31,

 $9,317  $14,644 

Change in Plan Assets:

        

Fair value of plan assets as of January 1,

 $17,604  $15,868 

Actual return on plan assets

  (3,366)  2,436 

Benefits paid

  (981)  (700)

Fair value of plan assets as of December 31,

 $13,257  $17,604 

Funded status

 $3,940  $2,960 

 

 

The accumulated benefit obligation was $9.3 million and $14.6 million as of the year ended December 31, 2022 and 2021, respectively.

 

Note 16 – Pension and Other Benefits – (continued)

 

Amounts recognized as a component of accumulated other comprehensive loss as of the periods presented that have not been recognized as a component of the net periodic pension expense for the plan are presented in the following table. As of December 31, 2022, the Company expects to recognize approximately $0.3 million of the net actuarial loss as a component of net periodic pension expense during 2023.

 

  

As of December 31,

 
  

2022

  

2021

 
  

(dollars in thousands)

 

Net actuarial loss recognized in accumulated other comprehensive income (pre-tax)

 $4,219  $4,627 

 

The pre-tax, net periodic pension expense (income) and other comprehensive income for the years ended December 31,  2022, 2021 and 2020 includes the following:

 

  

2022

  

2021

  

2020

 
  

(dollars in thousands)

 

Interest cost

 $311  $284  $364 

Expected return on plan assets

  (949)  (852)  (784)

Net amortization

  66   299   301 

Total net periodic pension income

 $(572) $(269) $(119)
             

Total unrealized (gain) loss recognized in other comprehensive income

  (343)  -   112 

Realized losses included in net income

  (66)  (299)  (301)

Total recognized in net periodic pension income and other comprehensive income

 $(981) $(568) $(308)

 

 

Note 16 – Pension and Other Benefits – (continued)

 

The following table presents the weighted average assumptions used to determine the pension benefit obligations as of December 31, for the following periods.

 

  

2022

  

2021

 

Discount rate

  4.92%  2.57%

Rate of compensation increase

  N/A   N/A 

 

The following table presents the weighted average assumptions used to determine net periodic pension cost for the following three years:

 

  

2023

  

2022

  

2021

 
             

Discount rate

  4.92%  2.57%  2.17%

Expected long-term return on plan assets

  6.50%  5.50%  5.50%

Rate of compensation increase

  N/A   N/A   N/A 

 

The process of determining the overall expected long-term rate of return on plan assets begins with a review of appropriate investment data, including current yields on fixed income securities, historical investment data, historical plan performance and forecasts of inflation and future total returns for the various asset classes. This data forms the basis for the construction of a best-estimate range of real investment returns for each asset class. An average weighted real-return range is computed reflecting the plan’s expected asset mix, and that range, when combined with an expected inflation range, produces an overall best-estimate expected return range. Specific factors such as the plan’s investment policy, reinvestment risk and investment volatility are taken into consideration during the construction of the best estimate real return range, as well as in the selection of the final return assumption from within the range.

 

Plan Assets

 

The general investment policy of the Pension Trust is for the fund to experience growth in assets that will allow the market value to exceed the value of benefit obligations over time. The Company’s pension plan asset allocation as of December 31, 2022 and 2021, target allocation, and expected long-term rate of return by asset are as follows:

 

              

Weighted

 
              

Average

 
      

% of Plan

  

% of Plan

  

Expected

 
      

Assets –

  

Assets –

  

Long-Term

 
  

Target

  

Year Ended

  

Year Ended

  

Rate of

 
  

Allocation

  

2022

  

2021

  

Return

 

Equity Securities

                

Domestic

  45%  58%  59%  4.5%

International

  15   4   5   0.4 

Debt and/or fixed income securities

  38   35   34   1.5 

Cash and other alternative investments, including real estate funds, commodity funds, hedge funds and equity structured notes

  2   3   2   0.1 

Total

  100%  100%  100%  6.5%

 

Note 16 – Pension and Other Benefits – (continued)

 

The fair values of the Company’s pension plan assets as of December 31, 2022 and 2021, by asset class, are as follows:

 

  

December 31,

             
  

2022

  

Fair Value Measurements at Reporting Date Using

 
      

Quoted Prices

  

Significant

     
      

in Active

  

Other

  

Significant

 
      

Markets for

  

Observable

  

Unobservable

 
      

Identical Assets

  

Inputs

  

Inputs

 

Asset Class

     

(Level 1)

  

(Level 2)

  

(Level 3)

 
  

(dollars in thousands)

 

Cash

 $262  $262  $-  $- 

Equity securities:

                

U.S. companies

  7,611   7,611   -   - 

International companies

  569   569   -   - 

Debt and/or fixed income securities

  4,684   4,684   -   - 

Commodity funds

  95   95   -   - 

Real estate funds

  36   36   -   - 

Total

 $13,257  $13,257  $-  $- 

 

  

December 31,

             
  

2021

  

Fair Value Measurements at Reporting Date Using

 
      

Quoted Prices

  

Significant

     
      

in Active

  

Other

  

Significant

 
      

Markets for

  

Observable

  

Unobservable

 
      

Identical Assets

  

Inputs

  

Inputs

 

Asset Class

     

(Level 1)

  

(Level 2)

  

(Level 3)

 
  

(dollars in thousands)

 

Cash

 $178  $178  $-  $- 

Equity securities:

                

U.S. companies

  10,551   10,551   -   - 

International companies

  897   897   -   - 

Debt and/or fixed income securities

  5,804   5,804   -   - 

Commodity funds

  111   111   -   - 

Real estate funds

  63   63   -   - 

Total

 $17,604  $17,604  $-  $- 

 

Fair Value of Plan Assets

 

The Company used the following valuation methods and assumptions to estimate the fair value of assets held by the plan (for further information on fair value methods, see Note 20):

 

Equity securities and real estate funds: The fair values for equity securities and real estate funds are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2).

 

Note 16 – Pension and Other Benefits – (continued)

 

Debt and fixed income securities: Certain debt securities are valued at the closing price reported in the active market in which the bond is traded (Level 1 inputs). Other debt securities are valued based upon recent bid prices or the average of recent bid and asked prices when available (Level 2 inputs) and, if not available, they are valued through matrix pricing models developed by sources considered by management to be reliable. Matrix pricing, which is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using spread to swap and LIBOR curves that are updated to incorporate loss severities, volatility, credit spread and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations.

 

The investment manager is not authorized to purchase, acquire or otherwise hold certain types of market securities (subordinated bonds, real estate investment trusts, limited partnerships, naked puts, naked calls, stock index futures, oil, gas or mineral exploration ventures or unregistered securities) or to employ certain types of market techniques (margin purchases or short sales) or to mortgage, pledge, hypothecate, or in any manner transfer as security for indebtedness, any security owned or held by the Plan.

 

Cash Flows

 

Contributions

 

The Bank does not expect to make a contribution in 2023.

 

Estimated Future Benefit Payments

 

The following benefit payments, which reflect expected future service, as appropriate, for the following years are as follows (dollars in thousands):

 

2023

 $738 

2024

  726 

2025

  724 

2026

  728 

2027

  770 

2028 - 2032

  3,744 

 

401(k) Plan

 

The Company maintains a 401(k) plan to provide for defined contributions which covers substantially all employees of the Company. Beginning with the 2014 plan year, the 401(k) plan was amended to provide for a match of 50% of elective contributions, up to 6% of an employee’s contribution. In 2018, the 401 (k) plan was amended to provide for 100% matching of employee contributions up to 5% of employee contributions. For 2022, 2021 and 2020, employer contributions amounted to $2.2 million, $1.6 million and $1.6 million, respectively.

 

Supplemental Executive Retirement Plan (“SERP”)

 

During 2019 and in 2021, the Company adopted supplemental executive retirement plans (“SERP’s”) for the benefit of several of its executive officers. Each SERP is a non-qualified plan which provides supplemental retirement benefits to the participating officers of the Company. SERP compensation expense was $1.4 million, $1.0 million and $0.4 million for the years ended December 31, 2022, December 31, 2021 and December 31, 2020, respectively.

 
v3.22.4
Note 17 - Stock-based Compensation
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

Note 17 – Stock Based Compensation

 

The Company’s stockholders approved the 2017 Equity Compensation Plan (“the Plan”) on May 23, 2017. The Plan eliminates all remaining issuable shares under previous plans and is the only outstanding plan as of December 31, 2022. The maximum number of shares of common stock or equivalents which may be issued under the Plan, is 750,000. Grants under the Plan can be in the form of stock options (qualified or non-qualified), restricted shares, restricted share units or performance units. Shares available for grant and issuance under the Plan as of December 31, 2022 are approximately 201,715. The Company intends to issue all shares under the Plan in the form of newly issued shares.

 

Restricted stock, options and deferred stock units typically have a three-year vesting period starting one year after the date of grant with one-third vesting each year. The options generally expire ten years from the date of grant. Restricted stock granted to new employees and board members may be granted with shorter vesting periods. Grants of performance units typically have a cliff vesting after three years or upon a change of control. All issuances are subject to forfeiture if the recipient leaves or is terminated prior to the awards vesting. Restricted shares have the same dividend and voting rights as common stock, while options, performance units and deferred stock units do not.

 

All awards are issued at the fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant, ratably over the vesting period. Forfeiture rates are not estimated but are recorded as incurred. Stock-based compensation expense was $4.9 million, $4.5 million and $2.9 million for the years ended December 31, 2022, 2021 and 2020 respectively.

 

 

Activity under the Company’s options for the year ended December 31, 2022 was as follows:

 

          

Weighted-

     
          

Average

     
      

Weighted-

  

Remaining

     
  

Number of

  

Average

  

Contractual

     
  

Stock

  

Exercise

  

Term

  

Aggregate

 
  

Options

  

Price

  

(in years)

  

Intrinsic Value

 

Outstanding as of December 31, 2021

  23,766  $9.94         

Granted

  -   -         

Exercised

  (15,086)  8.21         

Forfeited/cancelled/expired

  -   -         

Outstanding as of December 31, 2022

  8,680   12.95   0.29  $97,673 
                 

Exercisable as of December 31, 2022

  8,680  $12.95   -  $- 

 

 

Note 17 – Stock Based Compensation - (continued)

 

The aggregate intrinsic value of outstanding and exercisable options above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on December 31, 2022 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2022. This amount changes based on the fair market value of the Company’s stock.

 

Activity under the Company’s restricted shares for year ended December 31, 2022 was as follows:

 

      

Weighted-

 
      

Average

 
  

Nonvested

  

Grant Date

 
  

Shares

  

Fair Value

 

Nonvested as of December 31, 2021

  82,693  $21.78 

Granted

  53,543   30.76 

Vested

  (49,931)  23.74 

Forfeited/cancelled/expired

  (374)  30.99 

Nonvested December 31, 2022

  85,931  $26.20 

 

 

Note 17 – Stock Based Compensation – (continued)

 

As of December 31, 2022, there was approximately $0.8 million of total unrecognized compensation cost related to nonvested restricted shares granted. The cost is expected to be recognized over a weighted average period of 1.1 years.

 

A summary of the status of unearned performance unit awards and the change during the period is presented in the table below:

 

          

Weighted

 
          

Average Grant

 
  

Units

  

Units

  

Date Fair

 
  

(expected)

  

(maximum)

  

Value

 

Unearned as of December 31, 2021

  209,995      $16.18 

Awarded

  34,874       32.80 

Vested shares

  (49,604)      20.79 

Unearned as of December 31, 2022

  195,265   221,541  $17.98 

 

As of December 31, 2022, the specific number of shares related to performance units that were expected to vest was 195,265, determined by actual performance in consideration of the established range of the performance targets, which is consistent with the level of expense currently being recognized over the vesting period. Should this expectation change, additional compensation expense could be recorded in future periods or previously recognized expense could be reversed. As of December 31, 2022, the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 221,541. During the year ended December 31, 2022, 49,604 shares vested. A total of 27,254 shares were netted from the vested shares to satisfy employee tax obligations. The net shares issued from vesting of performance units during the year ended December 31, 2022 were 22,350 shares. As of December 31, 2022, compensation cost of approximately $1.2 million related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 1.7 years.

 

A summary of the status of unearned deferred stock units and the changes in deferred stock units during the period is presented in the table below:

 

      

Weighted

 
      

Average Grant

 
  

Units

  

Date Fair

 
  

(expected)

  

Value

 

Unearned as of December 31, 2021

  136,948  $16.52 

Awarded

  52,312   32.80 

Vested shares

  (69,225)  16.13 

Unearned as of December 31, 2022

  120,035  $23.84 

 

 

Any forfeitures would result in previously recognized expense being reversed. A portion of the shares that vest will be netted out to satisfy the tax obligations of the recipient. During the year ended December 31, 2022, 69,225 shares vested. A total of 37,842 shares were netted from the vested shares to satisfy employee tax obligations. The net shares issued from vesting of deferred stock units during the year ended December 31, 2022 were 31,383 shares. As of December 31, 2022, compensation cost of approximately $1.5 million related to non-vested deferred stock units, not yet recognized, is expected to be recognized over a weighted-average period of 1.5 years.

 
v3.22.4
Note 18 - Dividends and Other Restrictions
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Restrictions on Dividends, Loans and Advances [Text Block]

Note 18 – Dividends and Other Restrictions

 

Certain restrictions, including capital requirements, exist on the availability of undistributed net profits of the Bank for the future payment of dividends to the Parent Corporation. A dividend may not be paid if it would impair the capital of the Bank. As of December 31, 2022, approximately $259.3 million was available for payment of dividends based on regulatory guidelines.

 
v3.22.4
Note 19 - Derivatives
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 19 – Derivatives

 

As part of our overall asset liability management and strategy the Company uses derivative instruments, which can include interest rate swaps, collars, caps, and floors.  The notional amount does not represent amounts exchanged by the parties.  The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Derivative instruments are recognized on the balance sheet at their fair value and are not reported on a net basis.

 

Derivatives Designated as Hedges

 

Subsequent changes in fair value for a hedging instrument that has been designated and qualifies as part of a hedging relationship are accounted for in the following manner:

 

1) Cash flow hedges: changes in fair value are recognized as a component in other comprehensive income

2) Fair value hedges: changes in fair value are recognized concurrently in earnings

 

As long as a hedging instrument is designated and the results of the effectiveness testing support that the instrument qualifies for hedge accounting treatment, 100% of the periodic changes in fair value of the hedging instrument are accounted for as outlined above. This is the case whether or not economic mismatches exist in the hedging relationship. As a result, there is no periodic measurement or recognition of ineffectiveness. Rather, the full impact of hedge gains and losses is recognized in the period in which the hedged transactions impact earnings. The change in fair value of the hedging instrument that is included in the assessment of hedge effectiveness is presented in the same income statement line item that is used to present the earnings effect of the hedged item.

 

The Company entered into eleven pay fixed-rate interest rate swaps, with a total notional amount of $500 million, all of which were entered into in 2021 and 2022. These are designated as cash flow hedges of current, Federal Home Loan Bank advances. We are required to pay fixed rates of interest ranging from 0.63% to 3.41% and receive variable rates of interest that reset quarterly based on the daily compounding secured overnight financing rate (“SOFR”).  All swaps carry expiration dates on the eleven positions ranging from December 2025 to March 2028. The swaps are determined to be fully effective during the period presented and therefore no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swap is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps. 

 

The Company previously entered into one forward starting interest rate cap spread transaction, with a total notional amount of $150 million, which became effective on October 1, 2022 and matures in October of 2027 and one additional interest rate cap spread transaction, with a total notional amount of $75 million, which became effective in November 2022 and matures in November of 2027.  These are designated as cash flow hedges of brokered certificates of deposits, and the interest rate cap spread is indexed to a benchmark of fed funds with payment required on a monthly basis. The structure of these instruments is such that the Company entered into a total of $225 million in notional amount of sold interest rate cap agreements, in which we are required to pay the counterparty an incremental amount if the index rate exceeds a set cap rate. Simultaneously, the Company purchased a total of $225 million notional amount of interest rate cap agreements in which we receive an incremental amount if the index rate is above a set cap rate.  No payments are required if the index rate is at, or below, the cap rate on the sold or purchased interest rate cap agreements. 

 

Interest expense recorded on these swap and cap transactions totaled approximately $(3.3) million, $1.9 million, and $(1.6) million during 2022, 2021, and 2020 is reported as a component of either interest expense on FHLB Advances and brokered certificates of deposits.

 

 

The following table presents the net gains (losses), recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the years ended December 31, 2022 and 2021:

 

  

2022

 
  

Amount of gain

  

Amount of (gain)

  

Amount of gain (loss)

 
  

(loss) recognized

  

loss reclassified

  

recognized in other

 
  

in OCI (Effective

  

from OCI to

  

Noninterest income

 

(dollars in thousands)

 

Portion)

  

interest expense

  

(Ineffective Portion)

 

Interest rate contracts

 $46,282  $(3,343) $- 

 

  

2021

 
  

Amount of gain

  

Amount of (gain)

  

Amount of gain (loss)

 
  

(loss) recognized

  

loss reclassified

  

recognized in other

 
  

in OCI (Effective

  

from OCI to

  

Noninterest income

 

(dollars in thousands)

 

Portion)

  

interest expense

  

(Ineffective Portion)

 

Interest rate contracts

 $3,593  $1,873  $- 

 

The following table reflects the cash flow hedges included in the Consolidated Statements of Condition as of December 31, 2022 and December 31, 2021:

 

  

2022

  

2021

 
  

Notional

      

Notional

     

(dollars in thousands)

 

Amount

  

Fair Value

  

Amount

  

Fair Value

 

Included in other assets/(liabilities):

                

Interest rate contracts

 $950,000  $56,797  $475,000  $3,347 

 

There were no net gains (losses) recorded in accumulated other comprehensive income or in the Consolidated Statement of Income relating to cash flow derivative instruments for the years ended December 31, 2022 and December 31, 2021.

 
v3.22.4
Note 20 - Fair Value Measurements and Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

Note 20 – Fair Value Measurements and Fair Value of Financial Instruments

 

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

 

FASB ASC 820-10-05 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurements and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.

 

FASB ASC 820-10-65 provides additional guidance for estimating fair value in accordance with FASB ASC 820-10-05 when the volume and level of activity for the asset or liability have significantly decreased. This ASC also includes guidance on identifying circumstances that indicate a transaction is not orderly.

 

FASB ASC 820-10-05 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820-10-05 are as follows:

 

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

 

Level 2: Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

 

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (for example, supported with little or no market activity).

 

An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

 

Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of December 31, 2022 and December 31, 2021:

 

Securities Available-for-Sale: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of instruments, which would generally be classified within Level 2 of the valuation hierarchy include municipal bonds and certain agency collateralized mortgage obligations. In certain cases where there is limited activity in the market for a particular instrument, assumptions must be made to determine the fair value of the instruments and these are classified as Level 3. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company’s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class.

 

Derivatives: The fair value of derivatives are based on valuation models using observable market data as of the measurement date (level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rate, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

 

For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used as of December 31, 2022 and  December 31, 2021 are as follows:

 

      

December 31, 2022

 
      

Fair Value Measurements at Reporting Date Using

 
      

Quoted Prices

         
      

in Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
      

Assets

  

Inputs

  

Inputs

 
  

Total Fair Value

  

(Level 1)

  

(Level 2)

  

(Level 3)

 

(dollars in thousands)

                

Recurring fair value measurements:

                

Assets

                

Investment securities:

                

Available-for-sale:

                

Federal agency obligations

 $44,450  $-  $44,450  $- 

Residential mortgage pass-through securities

  417,578   -   417,578   - 

Commercial mortgage pass-through securities

  21,104   -   21,104   - 

Obligations of U.S. states and political subdivision

  142,896   -   135,547   7,349 

Corporate bonds and notes

  6,974   -   6,974   - 

Asset-backed securities

  1,640   -   1,640   - 

Certificates of deposit

  -   -   -   - 

Other securities

  242   242   -   - 

Total available-for-sale

 $634,884  $242  $627,293  $7,349 
                 

Equity securities

  15,811   9,733   6,078   - 

Derivatives - interest rate contracts

  56,797   -   56,797   - 

Total assets

 $707,492  $9,975  $690,168  $7,349 

 

 

There were no transfers between Level 1 and Level 2 during the years ended December 31, 2022 and 2021.

 

      

December 31, 2021

 
      

Fair Value Measurements at Reporting Date Using

 
      

Quoted Prices

         
      

in Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
      

Assets

  

Inputs

  

Inputs

 
  

Total Fair Value

  

(Level 1)

  

(Level 2)

  

(Level 3)

 

(dollars in thousands)

                

Recurring fair value measurements:

                

Assets

                

Investment securities:

                

Available-for-sale:

                

Federal agency obligations

 $50,360  $-  $50,360  $- 

Residential mortgage pass-through securities

  316,095   -   316,095   - 

Commercial mortgage pass-through securities

  10,469   -   10,469   - 

Obligations of U.S. states and political subdivision

  145,625   -   137,060   8,565 

Corporate bonds and notes

  9,049   -   9,049   - 

Asset-backed securities

  2,564   -   2,564   - 

Certificates of deposit

  150   -   150   - 

Other securities

  195   195   -   - 

Total available-for-sale

 $534,507  $195  $525,747  $8,565 
                 

Equity securities

  13,794   11,081   2,713   - 

Derivatives - interest rate contracts

  3,347   -   3,347   - 

Total assets

 $551,648  $11,276  $531,807  $8,565 

 

Assets Measured at Fair Value on a Non-Recurring Basis

 

The Company may be required periodically to measure certain assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or impairment write-downs of individual assets. The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis as of December 31, 2022 and December 31, 2021:

 

 

Collateral Dependent Loans: The Company may record adjustments to the carrying value of loans based on fair value measurements, either as specific reserves or as partial charge-offs of the uncollectible portions of these loans. These adjustments also include certain impairment amounts for collateral dependent loans calculated in accordance with GAAP. Impairment amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated impairment amount applicable to that loan does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable by market participants. However, due to the substantial judgment applied and limited volume of activity as compared to other assets, fair value is based on Level 3 inputs. Estimates of fair value used for collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and are also based on Level 3 inputs.

 

For assets measured at fair value on a nonrecurring basis, the fair value measurements as of December 31, 2022 and  December 31, 2021 are as follows:

 

 

      

Fair Value Measurements at Reporting Date Using

 
      

Quoted

         
      

Prices

         
      

in Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
  

December 31,

  

Assets

  

Inputs

  

Inputs

 
  

2022

  

(Level 1)

  

(Level 2)

  

(Level 3)

 

Assets measured at fair value on a nonrecurring basis:

 

(dollars in thousands)

 

Collateral dependent loans:

                

Commercial

 $14,550  $-  $-  $14,550 

Commercial real estate

  17,264   -   -   17,264 

Residential real estate

  1,392   -   -   1,392 

 

      

Fair Value Measurements at Reporting Date Using

 
      

Quoted

         
      

Prices

         
      

in Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
  

December 31,

  

Assets

  

Inputs

  

Inputs

 
  

2021

  

(Level 1)

  

(Level 2)

  

(Level 3)

 

Assets measured at fair value on a nonrecurring basis:

 

(dollars in thousands)

 

Collateral dependent loans:

                

Commercial

 $13,399  $-  $-  $13,399 

Commercial real estate

  20,185   -   -   20,185 

Residential real estate

  2,794   -   -   2,794 

 

Collateral dependent loans - Collateral dependent loans as of December 31, 2022 that required a valuation allowance were $43.8 million with a related valuation allowance of $10.5 million.

 

Collateral dependent loans - Collateral dependent loans as of  December 31, 2021 that required a valuation allowance were $54.1 million with a valuation allowance of $17.8 million.

 

 

Assets Measured With Significant Unobservable Level 3 Inputs

 

Recurring basis

 

The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2022 and year ended December 31, 2021:

 

  

Municipal

 
  

Securities

 
  

(dollars in thousands)

 

Beginning balance, January 1, 2022

 $8,565 

Principal paydowns

  (287)

Changes in unrealized gain (loss)

  (929)

Ending balance, December 31, 2022

 $7,349 
     

 

  

Municipal

 
  

Securities

 
  

(dollars in thousands)

 

Beginning balance, January 1, 2021

 $8,844 

Principal paydowns

  (279)

Ending balance, December 31, 2021

 $8,565 

 

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of December 31, 2022 and December 31, 2021. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

 

December 31, 2022

    

Valuation

 

Unobservable

   
  

Fair Value

 

Techniques

 

Input

 

Range

 

Securities available-for-sale:

    

(dollars in thousands)

     

Municipal securities

 $7,349 

Discounted cash flows

 

Discount rate

 4.3%

 

December 31, 2021

    

Valuation

Unobservable

    
  

Fair Value

 

Techniques

Input

 

Range

 

Securities available-for-sale:

    

(dollars in thousands)

     

Municipal securities

 $8,565 

Discounted cash flows

Discount rate

  2.9%

 

 

 

Non-recurring basis

 

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

 

December 31, 2022

           
     

Valuation

 

Unobservable

    

(dollars in thousands)

 

Fair Value

 

Techniques

 

Input

 

Range (weighed average)

 

Commercial loans

 $14,028 

Market approach (100%)

 

Average transfer price as a price to unpaid principal balance

  65% to 96% (67%) 

Commercial loans

  522 

Appraisals of collateral

 

Adjustment for comparable sales

 

-10% to +13% (+3%)

 

Commercial real estate loans

  17,264 

Appraisals of collateral

 

Adjustment for comparable sales

 

-20% to +0% (-15%)

 

Residential real estate loans

  1,392 

Appraisals of collateral

 

Adjustment for comparable sales

 

+21% to +39% (22%)

 

 

December 31, 2021

          
     

Valuation

 

Unobservable

   

(dollars in thousands)

 

Fair Value

 

Techniques

 

Input

 

Range (weighed average)

 

Commercial loans

 $12,193 

Market approach (100%)

 

Average transfer price as a price to unpaid principal balance

 48% to 73% (49%) 

Commercial loans

  1,206 

Appraisals of collateral

 

Adjustment for comparable sales

 

-10% to +35% (+6%)

 

Commercial real estate loans

  20,185 

Appraisals of collateral

 

Adjustment for comparable sales

 

-20% to +15% (-6%)

 

Residential real estate loans

  2,794 

Appraisals of collateral

 

Adjustment for comparable sales

 -15% to +39% (5%) 

 

 

Fair Value of Financial Instruments

 

FASB ASC 825-10 requires all entities to disclose the estimated fair value of their financial instrument assets and liabilities. For the Company, as for most financial institutions, the majority of its assets and liabilities are considered financial instruments as defined in FASB ASC 825-10. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. It is also the Company’s general practice and intent to hold its financial instruments to maturity and not to engage in trading or sales activities except for loans held-for-sale and investment securities available-for-sale. Therefore, significant estimations and assumptions, as well as present value calculations, were used by the Company for the purposes of this disclosure.

 

Fair values for financial instruments must be estimated by management using techniques such as discounted cash flow analysis and comparison to similar instruments. These estimates are highly subjective and require judgments regarding significant matters, such as the amount and timing of future cash flows and the selection of discount rates that appropriately reflect market and credit risks. Changes in these judgments often have a material effect on the fair value estimates. Since these estimates are made as of a specific point in time, they are susceptible to material near-term changes. Fair values disclosed in accordance with ASC Topic 825 do not reflect any premium or discount that could result from the sale of a large volume of a particular financial instrument, nor do they reflect possible tax ramifications or estimated transaction costs.

 

Cash and cash equivalents. The carrying amounts of cash and short-term instruments approximate fair values.

 

FHLB stock. It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability.

 

Loans. The fair value of portfolio loans, net is determined using an exit price methodology. The exit price methodology continues to be based on a discounted cash flow analysis, in which projected cash flows are based on contractual cash flows adjusted for prepayments for certain loan types (e.g., residential mortgage loans and multi-family loans) and the use of a discount rate based on expected relative risk of the cash flows. The discount rate selected considers loan type, maturity date, a liquidity premium, cost to service, and cost of capital, which is a Level 3 fair value estimate.

 

Deposits. The carrying amounts of deposits with no stated maturities (i.e., non‐interest-bearing, savings, NOW, and money market deposits) are assigned fair values equal to the carrying amounts payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows using estimated rates currently offered for alternative funding sources of similar remaining maturity.

 

Term Borrowings and Subordinated Debentures. The fair value of the Company’s long-term borrowings and subordinated debentures were calculated using a discounted cash flow approach and applying discount rates currently offered based on weighted remaining maturities.

 

Accrued Interest Receivable/Payable. The carrying amounts of accrued interest approximate fair value resulting in a level 2 or level 3 classification based on the level of the asset or liability with which the accrual is associated.

 

 

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2022 and December 31, 2021:

 

          

Fair Value Measurements

 
          

Quoted

         
          

Prices in

         
          

Active

  

Significant

     
          

Markets for

  

Other

  

Significant

 
          

Identical

  

Observable

  

Unobservable

 
  

Carrying

  

Fair

  

Assets

  

Inputs

  

Inputs

 
  

Amount

  

Value

  

(Level 1)

  

(Level 2)

  

(Level 3)

 
  

(dollars in thousands)

 

December 31, 2022

                    

Financial assets:

                    

Cash and due from banks

 $268,315  $268,315  $268,315  $-  $- 

Investment securities available-for-sale

  634,884   634,884   242   627,293   7,349 

Restricted investment in bank stocks

  46,604   n/a   n/a   n/a   n/a 

Equity securities

  15,811   15,811   9,733   6,078   - 

Net loans

  8,009,176   7,723,378   -   -   7,723,378 

Derivatives - interest rate contracts

  56,797   56,797   -   56,797   - 

Accrued interest receivable

  46,062   46,062   -   4,685   41,377 
                     

Financial liabilities:

                    

Noninterest-bearing deposits

  1,501,614   1,501,614   1,501,614   -   - 

Interest-bearing deposits

  5,855,008   5,811,291   3,460,818   2,350,473   - 

Borrowings

  857,622   854,698   -   854,698   - 

Subordinated debentures

  153,255   153,581   -   153,581   - 

Accrued interest payable

  6,925   6,925   -   6,925   - 
                     

December 31, 2021

                    

Financial assets:

                    

Cash and due from banks

 $265,536  $265,536  $265,536  $-  $- 

Investment securities available-for-sale

  534,507   534,507   195   525,747   8,565 

Restricted investment in bank stocks

  27,826   n/a   n/a   n/a   n/a 

Equity securities

  13,794   13,794   11,081   2,713   - 

Net loans

  6,749,849   6,800,287   -   -   6,800,287 

Derivatives - interest rate contracts

  3,347   3,347   -   3,347   - 

Accrued interest receivable

  34,152   34,152   -   1,554   32,598 
                     

Financial liabilities:

                    

Noninterest-bearing deposits

  1,617,049   1,617,049   1,617,049   -   - 

Interest-bearing deposits

  4,715,904   4,716,358   3,565,795   1,150,563   - 

Borrowings

  468,193   469,671   -   469,671   - 

Subordinated debentures

  152,951   163,995   -   163,995   - 

Accrued interest payable

  2,716   2,716   -   2,716   - 

 

 

The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, considering the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to originate loans is immaterial and not included in the tables above.

 

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values.

 

The Company’s remaining assets and liabilities, which are not considered financial instruments, have not been valued differently than has been customary with historical cost accounting. No disclosure of the relationship value of the Company’s core deposit base is required by FASB ASC 825-10.

 

Fair value estimates are based on existing balance sheet financial instruments, without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, there are certain significant assets and liabilities that are not considered financial assets or liabilities, such as the brokerage network, deferred taxes, premises and equipment, and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

 

Management believes that reasonable comparability between financial institutions may not be likely, due to the wide range of permitted valuation techniques and numerous estimates which must be made, given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values.

 
v3.22.4
Note 21 - Parent Corporation Only Financial Statements
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Note 21 – Parent Corporation Only Financial Statements

 

The Parent Corporation operates its wholly-owned subsidiary, the Bank. The earnings of this subsidiary are recognized by the Parent Corporation using the equity method of accounting. Accordingly, earnings are recorded as increases in the Parent Corporation’s investment in the subsidiaries and dividends paid reduce the investment in the subsidiaries. The ability of the Parent Corporation to pay dividends will largely depend upon the dividends paid to it by the Bank. Dividends payable by the Bank to the Parent Corporation are restricted under supervisory regulations (see Note 18 of the Notes to Consolidated Financial Statements).

 

Condensed financial statements of the Parent Corporation only are as follows:

 

Condensed Statements of Condition

 

  

As of December 31,

 
  

2022

  

2021

 
  

(dollars in thousands)

 

ASSETS

        

Cash and cash equivalents

 $117,162  $133,648 

Investment in subsidiaries

  1,179,342   1,111,520 

Investment securities

  32,405   32,405 

Equity securities

  4,218   725 

Other assets

  699   699 

Total assets

 $1,333,826  $1,278,997 

LIABILITIES AND STOCKHOLDERS’ EQUITY

        

Other liabilities

  1,820   1,834 

Subordinated debentures, net

  153,255   152,951 

Stockholders’ equity

  1,178,751   1,124,212 

Total liabilities and stockholders’ equity

 $1,333,826  $1,278,997 

                                                                                                                                                       

                                                                                                                                                                             Condensed Statements of Income

 

  

For Years Ended December 31,

 
  

2022

  

2021

  

2020

 
  

(dollars in thousands)

 

Income:

            

Dividend income from subsidiaries

 $36,475  $24,071  $15,200 

Other income

  1,638   1,627   1,683 

Total Income

  38,113   25,698   16,883 

Expenses

  (8,928)  (8,741)  (9,263)

Income before equity in undistributed earnings of subsidiaries

  29,185   16,957   7,620 

Equity in undistributed earnings of subsidiaries

  96,026   113,396   63,669 

Net Income

  125,211   130,353   71,289 

Preferred dividends

  6,037   1,717   - 

Net income available to common stockholders

 $119,174  $128,636  $71,289 

 

 

Condensed Statements of Cash Flows

 

  

For Years Ended December 31

 
  

2022

  

2021

  

2020

 
  

(dollars in thousands)

 
             

Cash flows from operating activities:

            

Net income

 $125,211  $130,353  $71,289 

Adjustments to reconcile net income to net cash provided by operating activities:

            

Equity in undistributed earnings of subsidiary

  (96,026)  (113,396)  (63,669)

Loss on equity securities, net

  45   55   - 

Amortization of subordinated debt issuance costs

  304   303   323 

Decrease (increase) in other assets

  -   50,590   (50,001)

Decrease in other liabilities

  (14)  (287)  (391)

Net cash provided by (used in) operating activities

  29,520   67,618   (42,449)
             

Cash flows from investing activities:

            

Sale of equity securities

  (3,538)  (780)  - 

Repayment of short-term borrowing

  -   -   (3,000)

Net cash used in investing activities

  (3,538)  (780)  (3,000)
             

Cash flows from financing activities:

            

Proceeds from (repayment of) proceeds from subordinated debt

  -   (50,000)  73,440 

Cash dividends paid on preferred stock

  (6,037)  (1,717)  - 

Cash dividends paid on common stock

  (23,428)  (17,493)  (14,317)

Purchase of treasury stock

  (13,127)  (9,401)  (911)

Proceeds from preferred stock offering

  -   110,927   - 

Proceeds from exercise of stock options

  124   106   233 

Net cash (used in) provided by financing activities

  (42,468)  32,422   58,445 
             

Decrease (increase) in cash and cash equivalents

  (16,486)  99,260   12,996 

Cash and cash equivalents as of January 1,

  133,648   34,388   21,392 

Cash and cash equivalents as of December 31,

 $117,162  $133,648  $34,388 

 

 
v3.22.4
Note 22 - Quarterly Financial Information of ConnectOne Bancorp, Inc. (Unaudited)
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Quarterly Financial Information [Text Block]

Note 22 – Quarterly Financial Information of ConnectOne Bancorp, Inc. (unaudited)

 

  

2022

 
  

4th Quarter

  

3rd Quarter

  

2nd Quarter

  

1st Quarter

 
  

(dollars in thousands, except per share data)

 

Total interest income

 $112,469  $96,980  $85,356  $78,941 

Total interest expense

  34,460   18,819   9,765   8,583 

Net interest income

  78,009   78,161   75,591   70,358 

Provision for credit losses

  3,300   10,000   3,000   1,450 

Total other income

  3,508   3,322   3,359   3,054 

Other expenses

  33,312   32,143   31,703   29,230 

Income before income taxes

  44,905   39,340   44,247   42,732 

Income tax expense

  12,348   10,425   11,889   11,351 

Net income

  32,557   28,915   32,358   31,381 

Preferred dividends

  1,510   1,509   1,509   1,509 

Net income available to common stockholders

 $31,047  $27,406  $30,849  $29,872 

Earnings per share:

                

Basic

 $0.79  $0.70  $0.78  $0.76 

Diluted

  0.79   0.70   0.78   0.75 
                 

 

Note: Due to rounding, quarterly earnings per share for 2022 do not sum to reported annual earnings per share.

 

  

2021

 
  

4th Quarter

  

3rd Quarter

  

2nd Quarter

  

1st Quarter

 
  

(dollars in thousands, except per share data)

 

Total interest income

 $79,040  $77,026  $73,051  $72,621 

Total interest expense

  8,579   8,781   10,042   11,458 

Net interest income

  70,461   68,245   63,009   61,163 

Provision for (reversal of) credit losses

  815   1,100   (1,649)  (5,766)

Total other income, net of securities gains

  3,777   4,016   4,472   3,426 

Other expenses

  28,084   28,183   26,259   26,485 

Income before income taxes

  45,339   42,978   42,871   43,870 

Income tax expense

  12,301   10,881   10,652   10,871 

Net income

  33,038   32,097   32,219   32,999 

Preferred dividends

  1,717   -   -   - 

Net income available to common stockholders

 $31,321  $32,097  $32,219  $32,999 

Earnings per share:

                

Basic

 $0.79  $0.81  $0.81  $0.83 

Diluted

  0.79   0.80   0.81   0.82 

 

 

 

 
v3.22.4
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Nature of Operations [Policy Text Block]

Nature of Operations

 

ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of the State of New Jersey and is a registered bank holding company under the Bank Holding Company Act of 1956, as amended (the “BHCA”). The Parent Corporation’s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the “Bank” and, collectively with the Parent Corporation and the Parent Corporation’s subsidiaries, the “Company”). The Bank’s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a Delaware investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), NJCB Spec-1, LLC (a New Jersey limited liability company), Port Jervis Holdings, LLC (a New Jersey limited liability company), BONJ Special Properties, LLC (a New Jersey limited liability company) and BoeFly, Inc. (a New Jersey financial technology company).

 

The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty-four other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower’s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrowers’ business, real estate rental and consumer wages.

 
Consolidation, Policy [Policy Text Block]

Basis of Presentation and Principals of Consolidation

 

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles. The consolidated financial statements of the Parent Corporation are prepared on an accrual basis and include the accounts of the Parent Corporation and the Company. All significant intercompany accounts and transactions have been eliminated from the accompanying consolidated financial statements.

 
Segment Reporting, Policy [Policy Text Block]

Segments

 

FASB ASC 28, “Segment Reporting,” requires companies to report certain information about operating segments. The Company is managed as one segment: a community bank. All decisions including but not limited to loan growth, deposit funding, interest rate risk, credit risk and pricing are determined after assessing the effect on the totality of the organization. For example, loan growth is dependent on the ability of the organization to fund this growth through deposits or other borrowings. As a result, the Company is managed as one operating segment.

 
Use of Estimates, Policy [Policy Text Block]

Use of Estimates

 

In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates.

 
Risks and Uncertainties [Policy Text Block]

Risks and Uncertainties

 

As previously disclosed, on March 11, 2020 the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which continues to impact the United States and the world. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. The COVID-19 pandemic has adversely affected, and continues to adversely affect economic activity globally, nationally and locally. Although economic activity  accelerated during 2022 the COVID pandemic and changes to peoples’ patterns of work and spending may  have an adverse impact on the economies and financial markets of many countries and parts of the United States, including the New Jersey/New York metropolitan area in which the Company primarily operates. COVID-19 could impact the Company’s operations in the future. Although state and local governments have lifted restrictions on conducting business, it is possible that restrictions could be reimposed.

 

 

On July 27, 2017, the U.K. Financial Conduct Authority, which regulates London Interbank Offered Rate ("LIBOR"), announced that it will no longer persuade or compel banks to submit rates for the calculation of LIBOR to the LIBOR administrator after 2021. The announcement also indicates that the continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021. Consequently, although banks have continued to submit certain rates for the calculation of LIBOR in 2022, at this time, it is not possible to predict whether and to what extent banks will continue to provide LIBOR submissions to the LIBOR administrator . Similarly, banking regulators in the United States have required insured depository institutions in the United States to cease originating loans using LIBOR as a rate index as of December 31, 2021, and in March 2022 Congress adopted legislation providing for the replacement of LIBOR indexes in contracts without fall back language with the Secured Overnight Financing Rate ("SOFR"), and for the Federal Reserve to adopt regulation by September of 2022 implementing this change. Although the Bank ceased using LIBOR as an index for loans it originates, it is unclear at this time what effect these changes may have on the values of loans and liabilities held or owed by the Bank whose interest rates are or were tied to LIBOR. Uncertainty surrounding the phase out  of LIBOR may adversely affect the value of, and the return on our loans, and our investment securities.

 

The United States economy is currently experiencing a level of price inflation not experienced since the late 1970’s and early 1980’s. It is therefore difficult to predict the response of consumers and businesses to this level of inflation, and its impact on the economy. In addition, in order to attempt to control and reduce the level of inflation, the Federal Reserve has embarked on a series of interest rate increases along with quantitative tightening to further constrict economic conditions. It is unclear whether the Federal Reserve’s efforts will be successful, and what impact they may have on the United States’ economy. It is possible that the combined effects of inflation and increases in market interest rates could cause the economy of the United States to enter a recession, which could negatively affect the businesses of our borrowers and their ability to repay their loans or need credit, which could negatively affect our results of operations.   

 
Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

 

Cash and cash equivalents include cash, deposits with other financial institutions with maturities of less than 90 days, and federal funds sold. Net cash flows are reported for client loan and deposit transactions, interest-bearing deposits in other financial institutions, and federal funds purchased and repurchase agreements.

 
Investment, Policy [Policy Text Block]

Investment Securities

 

Effective January 1, 2021, the Company accounts for its investment securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320-10-05. Investments are classified into the following categories: (1) held-to-maturity securities, for which the Company has both the positive intent and ability to hold until maturity, which are reported at amortized cost; (2) trading securities, which are purchased and held principally for the purpose of selling in the near term and are reported at fair value with unrealized gains and losses included in earnings; and (3) available-for-sale securities, which do not meet the criteria of the other two categories and which management believes may be sold prior to maturity due to changes in interest rates, prepayment risk, liquidity or other factors, and are reported at fair value, with unrealized gains and losses, net of applicable income taxes, reported as a component of accumulated other comprehensive income, which is included in stockholders’ equity and excluded from earnings.

 

Investment securities are adjusted for amortization of premiums and accretion of discounts as adjustments to interest income, which are recognized on a level yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Investment securities gains or losses are determined using the specific identification method.

 

Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in comprehensive income, net of tax. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are generally amortized using the level-yield method without estimating prepayments, except for mortgage-backed securities, where prepayment rates are estimated. Premiums on callable investment securities are amortized to their earliest call date. Gains and losses on sales of securities are recorded on the trade date and determined using the specific identification method.

 

 

For available-for-sale investment securities which are in an unrealized loss position, the Company will first assess whether we intend to sell, or it is more likely than not, that we will be required to sell the security before recovery of the amortized cost basis. If either of the criteria is met, the amortized cost basis of the security is written down to fair value through income. For available-for-sale investment securities that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from an actual or estimated credit loss event or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, changes to the rating of the security, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss is likely, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, an allowance for credit losses is recorded for the estimated credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit loss is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major agencies and have a long history of no credit losses.

 

Prior to January 1, 2021, securities were evaluated on at least a quarterly basis, and more frequently when market conditions warrant such an evaluation, to determine whether a decline in their value is other-than-temporary. FASB ASC 320-10-65 clarifies the interaction of the factors that were considered when determining whether a debt security is other-than-temporarily impaired. For debt securities, management assessed whether (a) it has the intent to sell the security and (b) it is more likely than not that it will be required to sell the security prior to its anticipated recovery. These steps were done before assessing whether the entity will recover the cost basis of the investment. In instances when a determination is made that an other-than-temporary impairment exists but the investor does not intend to sell the debt security and it is not more likely than not that it will be required to sell the debt security prior to its anticipated recovery, FASB ASC 320-10-65 changed the presentation and amount of the other-than-temporary impairment recognized in the Consolidated Statement of Income. The other-than-temporary impairment was separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss was recognized through earnings. The amount of the total other-than-temporary impairment related to all other factors was recognized through other comprehensive income. 

 
Stockholders' Equity, Policy [Policy Text Block]

Equity Securities

 

The Company’s investments in equity securities are recorded at fair value, with unrealized gains and losses included in earnings.

 
Financing Receivable, Held-for-sale [Policy Text Block]

Loans Held-for-Sale

 

Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan.

 

Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. Fair value on these loans is determined based on the terms of the loan, such as interest rate, maturity date, and reset term, as well as sales of similar assets.

 
Policy Loans Receivable, Policy [Policy Text Block]

Loans

 

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, purchase premium and discounts and an allowance for credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

 

Loan segments are defined as a group of loans, which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. Management has determined that the Company has five segments of loans: commercial, commercial real estate, commercial construction, residential real estate (including home equity) and consumer.

 

 

Loans that are 90 days past due are placed on nonaccrual and previously accrued interest is reversed and charged against interest income unless the loans are both well-secured and in the process of collection. Past due status is based on the contractual terms of the loan. In certain cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for credit losses and loans individually evaluated for credit losses.

 

All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

 

The policy of the Company is to generally grant commercial, residential and consumer loans to residents and businesses within the market-areas served by its offices in New Jersey, New York and Florida. The borrowers’ abilities to repay their obligations are dependent upon various factors including the borrowers’ income and net worth, cash flows generated by the borrowers’ underlying collateral, value of the underlying collateral, and priority of the lender’s lien on the property. Such factors are dependent upon various economic conditions and individual circumstances beyond the control of the Company. The Company is therefore subject to risk of loss. The Company believes its lending policies and procedures adequately minimize the potential exposure to such risks and that adequate provisions for credit losses are provided for all known and inherent risks. Collateral and/or personal guarantees are required for a large majority of the Company’s loans.

 
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

Allowance for Credit Losses

 

The allowance for credit losses is an estimate of current expected credit losses considering available information relevant to assessing collectability of cash flows over the contractual term of the financial assets necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and investment securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. Loan losses are charged against the allowance for credit losses when the Company believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance for credit losses. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The expected credit loss for unfunded loan commitments is reported on the consolidated statement of financial condition in other liabilities.

 

For financial assets, the allowance for credit losses is a valuation account that is deducted from, or added to, the amortized cost basis of the financial assets to present the net amount expected to be collected on the financial assets. The Company 's methodology to estimate the allowance for credit losses has two components: (i) a collective reserve component for estimated lifetime expected credit losses for pools of loans that share common risk characteristics and (ii) an individual reserve component for loans that do not share common risk characteristics. The Company maintains an allowance for unfunded credit commitments mainly consisting of undisbursed non-cancellable lines of credit, new loan commitments and commercial letters of credit.

 

Information relevant to establishing an estimate of current expected credit losses includes historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. The Company reports in net income (as a credit loss expense) the amount necessary to adjust the allowance for credit losses and liabilities for credit losses on off-balance-sheet credit exposures for the current estimate of expected credit losses.

 

 

Expected credit losses of financial assets are measured on a collective (pool) basis when similar risk characteristic(s) exist. If the Company determines that a financial asset does not share risk characteristics with other financial assets, the Company will evaluate the financial asset for expected credit losses on an individual basis. Financial assets are assessed once, either through collective assessments or individual assessments. Standard expected losses are evaluated on a collective, or pool, basis when financial assets share similar risk characteristics. For pooled loan segments, utilizing a quantitative analysis, the Company calculates estimated credit losses using a probability of default and loss given default methodology, the results of which are applied to the aggregated discounted cash flow of each individual loan within the segment. In the absence of relevant and reliable internal data, probability of default and loss given default rates are determined using peer data. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount. Financial assets may be segmented based on one characteristic, or a combination of characteristics. Examples of risk characteristics relevant to the Company’s evaluation included, but were not limited to: (1) Internal or external credit scores or credit ratings, (2) Risk ratings or classifications, (3) Financial asset type, (4) Collateral type, (5) Size, (6) Effective interest rate, (7) Term, (8) Geographical location, (9) Industry of the borrower and (10) Vintage.

 

The Company’s quantitative analysis also considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. After the reasonable and supportable forecast period, the Company reverts, on a straight-line basis, to average historical losses. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate.

 

Included in the allowance for credit losses are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis or the forecasts described above. Each qualitative loss factor, for each loan segment within the portfolio, incorporates consideration for a minimum to maximum range for loss factors derived from either the Company’s historical loss experience, or peer group historical charge-off experience. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses and are applied to each loan segment.

 

The Bank evaluates individual instruments for expected credit losses when those instruments do not share similar risk characteristics with instruments evaluated using a collective (pooled) basis. The Company evaluates the pooling methodology at least annually. Loans transition from defined segments for individual analysis when credit characteristics, or risk traits, change in a material manner. A loan is considered for individual analysis when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by the Company in determining individual analysis include payment status and the probability of collecting scheduled principal and interest payments, when due.

 

Loans for which the terms have been modified as a concession to the borrower due to the borrower experiencing financial difficulties are troubled debt restructurings (“TDR”) and are individually analyzed if carrying value is $250,000 or higher. Additionally, nonaccrual loans that are $250,000 or higher are also individually analyzed. All PCD loans are individually analyzed. For loans designated as TDR or nonaccrual with balances less than $250,000, these loans are collectively evaluated, and, accordingly, are not separately identified for analysis or disclosures. Instruments will not be included in both collective and individual analysis. Individual analysis will establish a specific reserve for instruments in scope.

 

 For collateral dependent loans, when it is determined that a foreclosure is probable, the allowance for credit losses is determined on a loan level basis using the fair value of the collateral as of the reporting date, less estimated disposition costs (“net fair value”), which will ensure that the credit loss is not delayed until the time at which the actual foreclosure takes place. In the event that this fair value is less than then amortized cost basis of these specific loans, the Company will recognize the difference between the net fair value at the reporting date and the amortized cost basis in the allowance for credit losses. If the fair value of the collateral has increased as of the evaluation date, the increase in the fair value of the collateral is reflected through a reduction in the allowance for credit losses. Adjustments for estimated disposition costs are not appropriate when the repayment of a collateral-dependent loan is expected from the operation of the collateral. If repayment is based upon future expected cash flows, the present value of the expected future cash flows discounted at the loan’s original effective interest rate is compared to the carrying value of the loan, and any shortfall is recorded as the allowance for credit losses. The effective interest rate used to discount expected cash flows is adjusted to incorporate expected prepayments, if applicable.

 

 
Impaired Financing Receivable, Policy [Policy Text Block]

Purchased Credit-Deteriorated Loans

 

Loans acquired in a business combination that have experienced a more-than-significant deterioration in credit quality since origination are considered PCD loans. The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) troubled debt restructured designation; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that were current on acquisition date, but had been previously delinquent. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium, which is recognized through interest income on a level-yield basis over the lives of the related loans. All loans considered to be purchased credit-impaired (PCI) prior to the adoption of ASU 2016-13 were converted to PCD upon adoption.

 

PCD loans that met the criteria for nonaccrual may be considered performing, regardless of whether the client is contractually delinquent, if management can reasonably estimate the timing and amount of the expected cash flows on such loans and if management expects to fully collect the new carrying value of the loans. As such, management may no longer consider the loans to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount.

 
Derivatives, Policy [Policy Text Block]

Derivatives

 

The Company’s quantitative analysis also considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. After the reasonable and supportable forecast period, the Company reverts, on a straight-line basis, to average historical economic driver conditions. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate.

 

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

 

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

 

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.

 

 
Restricted Stock [Policy Text Block]

Restricted Stock

 

The Bank is a member of the Federal Home Loan Bank (“FHLB”) of New York. Members are required to own a certain amount of stock based on the level of borrowings and other factors and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Cash dividends on the stock are reported as income.

 
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Policy [Policy Text Block]

Transfers of Financial Assets

 

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

 
Property, Plant and Equipment, Policy [Policy Text Block]

Premises and Equipment

 

Land is carried at cost and premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 4 to 30 years. Leasehold improvements are depreciated using the straight-line method over the terms of the respective leases, or the estimated useful lives of the improvements, whichever is shorter. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years.

 
Lessee, Leases [Policy Text Block]

Leases

 

Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease team. The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option.

 

Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company has elected not to recognize leases with original terms of 12 months or less on the consolidated balance sheet.

 
Financing Receivable, Held-for-investment, Foreclosed Asset [Policy Text Block]

Other Real Estate Owned

 

Other real estate owned (“OREO”), representing property acquired through foreclosure and held-for-sale, is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequently, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Costs relating to holding the assets are charged to expenses.

 
Postemployment Benefit Plans, Policy [Policy Text Block]

Employee Benefit Plans

 

The Company has a noncontributory pension plan that covered all eligible employees up until September 30, 2007, at which time the Company froze its defined benefit pension plan. As such, all future benefit accruals in this pension plan were discontinued and all retirement benefits that employees would have earned as of September 30, 2007 were preserved. The Company’s policy is to fund at least the minimum contribution required by the Employee Retirement Income Security Act of 1974. The costs associated with the plan are accrued based on actuarial assumptions and included in salaries and employee benefits expense.

 

 

The Company accounts for its defined benefit pension plan in accordance with FASB ASC 715-30. FASB ASC 715-30 requires that the funded status of defined benefit postretirement plans be recognized on the Company’s statement of financial condition and changes in the funded status be reflected in other comprehensive income. FASB ASC 715-30 also requires companies to measure the funded status of the plan as of the date of its fiscal year-end.

 

The Company maintains a 401(k)-employee savings plan to provide for defined contributions which covers substantially all employees of the Company. Employee 401(k) and profit-sharing plan expense is the amount of matching contributions.

 
Share-Based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

 

Stock compensation accounting guidance (FASB ASC 718, “Compensation-Stock Compensation”) requires that the compensation cost related to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans.

 

Stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. See Note 18 of the Notes to Consolidated Financial Statements for a further discussion.

 
Treasury Stock [Policy Text Block]

Treasury Stock

 

Subject to certain regulatory limitations applicable to the Parent Corporation, treasury stock purchases may be made from time to time as, in the opinion of management, market conditions warrant, in the open market or in privately negotiated transactions. Shares repurchased are added to the corporate treasury and will be used for future stock dividends and other issuances. The repurchased shares are recorded as treasury stock, which results in a decrease in stockholders’ equity. Treasury stock is recorded using the cost method and accordingly is presented as a reduction of stockholders’ equity. During the year ended December 31, 2022 and December 31, 2021, the Parent Corporation repurchased 447,108 and 330,541 shares, respectively, under a board-approved share repurchase program.

 
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

 

Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized but tested for impairment annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. The Company has selected December 31 as the date to perform the annual impairment test. No impairment charge was deemed necessary as of the years ended December 31, 2022, 2021 and 2020.

 

 
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]

Other Intangible Assets

 

Other intangible assets consist of core deposit intangibles arising from business combinations that are amortized over their estimated useful lives to their estimated residual value.

 
Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income

 

Total comprehensive income includes all changes in equity during a period from transactions and other events and circumstances from nonowner sources. The Company’s other comprehensive income (loss) is comprised of unrealized holding gains and losses on securities available-for-sale, unrecognized actuarial gains and losses of the Company’s defined benefit pension plan and unrealized gains and losses on cash flow hedges, net of taxes.

 
Restrictions on Cash [Policy Text Block]

Restrictions on Cash

 

Cash on hand or on deposit with the Federal Reserve Bank is required to meet regulatory reserve and clearing requirements.

 
Policyholders' Dividend [Policy Text Block]

Dividend Restriction

 

Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Parent Corporation or by the Parent Corporation to the stockholders.

 
Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

 

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

 
Life Settlement Contracts, Policy [Policy Text Block]

Bank Owned Life Insurance

 

The Company invests in Bank Owned Life Insurance (“BOLI”) to help offset the cost of employee benefits. The change in the cash surrender value of the BOLI is recorded as a component of noninterest income.

 
Income Tax, Policy [Policy Text Block]

Income Taxes

 

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

 

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

 
Advertising Cost [Policy Text Block]

Advertising Costs

 

The Company recognizes its marketing and advertising cost as incurred.

 
Reclassification, Comparability Adjustment [Policy Text Block]

Reclassifications

 

Certain reclassifications have been made in the consolidated financial statements and footnotes for 2021 and 2020 to conform to the classifications presented in 2022. Such reclassifications had no impact on net income or stockholders’ equity.

 

 
New Accounting Pronouncements, Policy [Policy Text Block]

Adoption of New Accounting Standards in 2023

 

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (“TDRs”) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the current expected credit loss (“CECL”) model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13”). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2022-02 did not have a material effect on the Company’s consolidated financial statements.

 

Newly Issued, But Not Yet Effective Accounting Standards

 

In June 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value.  ASU 2022-03 is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the effect that ASU 2022-03 will have on its consolidated financial statements.
v3.22.4
Note 2 - Earnings Per Common Share (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
  

Years Ended December 31,

 
  

2022

  

2021

  

2020

 
  

(in thousands, except per share amounts)

 

Net income available to common stockholders

 $119,174  $128,636  $71,289 

Earnings allocated to participating securities

  (287)  (313)  (356)

Income attributable to common stock

 $118,887  $128,323  $70,933 

Weighted average common shares outstanding, including participating securities

  39,355   39,723   39,643 

Weighted average participating securities

  (95)  (97)  (131)

Weighted average common shares outstanding

  39,260   39,626   39,512 

Incremental shares from assumed conversions of options, deferred stock units, performance units and restricted stock

  216   260   132 

Weighted average common and equivalent shares outstanding

  39,476   39,886   39,644 

Earnings per common share:

            

Basic

 $3.03  $3.24  $1.80 

Diluted

  3.01   3.22   1.79 
v3.22.4
Note 3 - Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Debt Securities, Available-for-Sale [Table Text Block]
      

Gross

  

Gross

     
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 
  

Cost

  

Gains

  

Losses

  

Value

 
  

(dollars in thousands)

 

December 31, 2022

                

Investment securities available-for-sale

                

Federal agency obligations

 $54,889  $-  $(10,439) $44,450 

Residential mortgage pass-through securities

  475,263   178   (57,863)  417,578 

Commercial mortgage pass-through securities

  25,485   -   (4,381)  21,104 

Obligations of U.S. states and political subdivisions​​

  157,247   111   (14,462)  142,896 

Corporate bonds and notes

  7,000   -   (26)  6,974 

Asset-backed securities

  1,673   -   (33)  1,640 

Other securities

  242   -   -   242 

Total securities available-for-sale

 $721,799  $289  $(87,204) $634,884 

 

      

Gross

  

Gross

     
  

Amortized

  

Unrealized

  

Unrealized

  

Fair

 
  

Cost

  

Gains

  

Losses

  

Value

 
  

(dollars in thousands)

 

December 31, 2021

                

Investment securities available-for-sale

                

Federal agency obligations

 $50,336  $649  $(625) $50,360 

Residential mortgage pass-through securities

  317,111   1,868   (2,884)  316,095 

Commercial mortgage pass-through securities

  10,814   118   (463)  10,469 

Obligations of U.S. states and political subdivisions​​

  145,045   1,562   (982)  145,625 

Corporate bonds and notes

  8,968   81   -   9,049 

Asset-backed securities

  2,563   3   (2)  2,564 

Certificates of deposit

  150   -   -   150 

Other securities

  195   -   -   195 

Total securities available-for-sale

 $535,182  $4,281  $(4,956) $534,507 

 
Investments Classified by Contractual Maturity Date [Table Text Block]
  

December 31, 2022

 
  

Amortized

  

Fair

 
  

Cost

  

Value

 
  

(dollars in thousands)

 

Investment securities available-for-sale:

        

Due in one year or less

 $5,453  $5,451 

Due after one year through five years

  4,106   4,082 

Due after five years through ten years

  2,247   2,244 

Due after ten years

  209,003   184,183 

Residential mortgage pass-through securities

  475,263   417,578 

Commercial mortgage pass-through securities

  25,485   21,104 

Other securities

  242   242 

Total securities available-for-sale

 $721,799  $634,884 

 
Schedule of Realized Gain (Loss) [Table Text Block]
  

Years Ended December 31,

 
  

2022

  

2021

  

2020

 
  

(dollars in thousands)

 

Proceeds

 $-  $5,185  $19,624 

Gross gains on sale/redemption of investment securities

 $-  $195  $29 

Gross losses on sale/redemption of investment securities

  -   -   - 

Net gains on sales/redemptions of investment securities​​

  -   195   29 

Tax provision on net gains

  -   (48)  (6)

Net gains on sale/redemption of investment securities, after tax​​

 $-  $147  $23 

 
Schedule of Unrealized Loss on Investments [Table Text Block]
  

December 31, 2022

 
  

Total

  

Less than 12 Months

  

12 Months or Longer

 
  Fair  Unrealized  Fair  Unrealized  Fair  Unrealized 
  

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 
  

(dollars in thousands)

 

Investment securities available-for-sale:

                        

Federal agency obligation

 $44,451  $(10,439) $20,517  $(1,831) $23,934  $(8,608)

Residential mortgage pass-through securities

  403,039   (57,863)  218,918   (13,869)  184,121   (43,994)

Commercial mortgage pass-through securities

  21,105   (4,381)  14,523   (2,304)  6,582   (2,077)

Obligations of U.S. states and political subdivisions

  133,265   (14,462)  47,446   (3,404)  85,819   (11,058)

Corporate bonds and notes

  4,973   (26)  4,973   (26)  -   - 

Asset-backed securities

  1,640   (33)  1,048   (16)  592   (17)

Total temporarily impaired securities

 $608,473  $(87,204) $307,425  $(21,450) $301,048  $(65,754)
  

December 31, 2021

 
  

Total

  

Less than 12 Months

  

12 Months or Longer

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

 
  

Value

  

Losses

  

Value

  

Losses

  

Value

  

Losses

 
  

(dollars in thousands)

 

Investment securities available-for-sale:

                        

Federal agency obligation

 $28,974  $(625) $28,974  $(625) $-  $- 

Residential mortgage pass-through securities

  246,396   (2,884)  214,701   (2,111)  31,695   (773)

Commercial mortgage pass-through securities

  8,370   (463)  4,682   (75)  3,688   (388)

Obligations of U.S. states and political subdivisions

  89,473   (982)  89,473   (982)  -   - 

Asset-backed securities

  802   (2)  802   (2)  -   - 

Total temporarily impaired securities

 $374,015  $(4,956) $338,632  $(3,795) $35,383  $(1,161)
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
  

2022

  

2021

 
  

(dollars in thousands)

 

Commercial (1)

 $1,472,734  $1,299,428 

Commercial real estate

  5,795,228   4,741,590 

Commercial construction

  574,139   540,178 

Residential real estate

  264,748   255,269 

Consumer

  2,312   1,886 

Gross loans

  8,109,161   6,838,351 

Net deferred fees

  (9,472)  (9,729)

Loans receivable

 $8,099,689  $6,828,622 

 
Schedule of Loans Held-for-sale [Table Text Block]
  

2022

  

2021

 
  

(dollars in thousands)

 

Commercial

 $13,473  $- 

Residential real estate

  299   250 

Total carrying amount

 $13,772  $250 
Financing Receivable, Nonaccrual [Table Text Block]
  

December 31, 2022

 
  

Nonaccrual loans with ACL

  

Nonaccrual loans without ACL

  

Total Nonaccrual loans

 
  

(dollars in thousands)

 

Commercial

 $23,512  $1,745  $25,257 

Commercial real estate

  10,220   6,597   16,817 

Residential real estate

  604   1,776   2,380 

Total

 $34,336  $10,118  $44,454 
  

December 31, 2021

 
  

Nonaccrual loans with ACL

  

Nonaccrual loans without ACL

  

Total Nonaccrual loans

 
  

(dollars in thousands)

 

Commercial

 $28,746  $1,316  $30,062 

Commercial real estate

  15,362   10,031   25,393 

Commercial construction

  -   3,150   3,150 

Residential real estate

  1,239   1,856   3,095 

Total

 $45,347  $16,353  $61,700 
Financing Receivable Origination And Risk Designation [Table Text Block]
  

Term loans amortized cost basis by origination year

         
                          

Revolving

  

Total

 
  

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Loans

  

Gross Loans

 

Commercial

                                

Pass

 $301,636  $305,721  $47,952  $28,177  $52,950  $127,739  $550,483  $1,414,658 

Special mention

  -   -   -   583   26   8,551   3,292   12,452 

Substandard

  7,615   146   15   1,769   11,214   22,596   2,269   45,624 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial

 $309,251  $305,867  $47,967  $30,529  $64,190  $158,886  $556,044  $1,472,734 
                                 

Commercial Real Estate

                                

Pass

 $1,571,751  $1,608,023  $382,987  $358,578  $375,886  $987,982  $401,365  $5,686,572 

Special mention

  3,040   -   -   -   -   37,774   8,839   49,653 

Substandard

  -   1,929   -   6,526   19,138   23,287   8,123   59,003 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Real Estate

 $1,574,791  $1,609,952  $382,987  $365,104  $395,024  $1,049,043  $418,327  $5,795,228 
                                 

Commercial Construction

                                

Pass

 $8,615  $7,605  $6,720  $508  $-  $-  $542,460  $565,908 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   8,231   8,231 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Construction

 $8,615  $7,605  $6,720  $508  $-  $-  $550,691  $574,139 
                                 

Residential Real Estate

                                

Pass

 $45,926  $25,318  $24,409  $21,557  $20,284  $78,314  $41,468  $257,276 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   3,379   4,093   7,472 

Doubtful

  -   -   -   -   -   -   -   - 

Total Residential Real Estate

 $45,926  $25,318  $24,409  $21,557  $20,284  $81,693  $45,561  $264,748 
                                 

Consumer

                                

Pass

 $2,219  $-  $9  $-  $-  $2  $82  $2,312 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   -   - 

Doubtful

  -   -   -   -   -   -   -   - 

Total Consumer

 $2,219  $-  $9  $-  $-  $2  $82  $2,312 
                                 

Total

                                

Pass

 $1,930,147  $1,946,667  $462,077  $408,820  $449,120  $1,194,037  $1,535,858  $7,926,726 

Special mention

  3,040   -   -   583   26   46,325   12,131   62,105 

Substandard

  7,615   2,075   15   8,295   30,352   49,262   22,716   120,330 

Doubtful

  -   -   -   -   -   -   -   - 

Grand Total

 $1,940,802  $1,948,742  $462,092  $417,698  $479,498  $1,289,624  $1,570,705  $8,109,161 
                          

Revolving

  

Total

 
  

2021

  

2020

  

2019

  

2018

  

2017

  

Prior

  

Loans

  

Gross Loans

 

Commercial

                                

Pass

 $403,203  $58,534  $54,485  $60,409  $95,727  $86,556  $471,588  $1,230,502 

Special mention

  -   -   -   -   1   4,045   4,266   8,312 

Substandard

  170   -   1,842   13,298   9,740   21,024   14,540   60,614 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial

 $403,373  $58,534  $56,327  $73,707  $105,468  $111,625  $490,394  $1,299,428 
                                 

Commercial Real Estate

                                

Pass

 $1,692,098  $533,315  $420,995  $452,262  $497,065  $842,244  $170,721  $4,608,700 

Special mention

  -   -   -   -   5,142   50,438   6,601   62,181 

Substandard

  1,968   9,039   4,006   20,624   -   26,108   8,964   70,709 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Real Estate

 $1,694,066  $542,354  $425,001  $472,886  $502,207  $918,790  $186,286  $4,741,590 
                                 

Commercial Construction

                                

Pass

 $8,018  $7,370  $12,625  $2,600  $2,339  $-  $490,119  $523,071 

Special mention

  -   -   -   -   350   -   1,443   1,793 

Substandard

  -   -   -   -   -   -   15,314   15,314 

Doubtful

  -   -   -   -   -   -   -   - 

Total Commercial Construction

 $8,018  $7,370  $12,625  $2,600  $2,689  $-  $506,876  $540,178 
                                 

Residential Real Estate

                                

Pass

 $27,081  $29,539  $23,611  $25,070  $28,701  $66,249  $44,221  $244,472 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   7,262   3,535   10,797 

Doubtful

  -   -   -   -   -   -   -   - 

Total Residential Real Estate

 $27,081  $29,539  $23,611  $25,070  $28,701  $73,511  $47,756  $255,269 
                                 

Consumer

                                

Pass

 $1,590  $85  $39  $21  $28  $-  $123  $1,886 

Special mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   -   - 

Doubtful

  -   -   -   -   -   -   -   - 

Total Consumer

 $1,590  $85  $39  $21  $28  $-  $123  $1,886 
                                 

Total

                                

Pass

 $2,131,990  $628,843  $511,755  $540,362  $623,860  $995,049  $1,176,772  $6,608,631 

Special mention

  -   -   -   -   5,493   54,483   12,310   72,286 

Substandard

  2,138   9,039   5,848   33,922   9,740   54,394   42,353   157,434 

Doubtful

  -   -   -   -   -   -   -   - 

Grand Total

 $2,134,128  $637,882  $517,603  $574,284  $639,093  $1,103,926  $1,231,435  $6,838,351 
Financing Receivable, Collateral Dependent [Table Text Block]
  

December 31, 2022

 
  

Real Estate

  

Other

  

Total

 
  

(dollars in thousands)

 

Commercial

 $5,352  $22,517  $27,869 

Commercial real estate

  52,477   -   52,477 

Commercial construction

  8,232   -   8,232 

Residential real estate

  5,864   -   5,864 

Total

 $71,925  $22,517  $94,442 
  

December 31, 2021

 
  

Real Estate

  

Other

  

Total

 
  

(dollars in thousands)

 

Commercial

 $6,385  $26,182  $32,567 

Commercial real estate

  55,244   -   55,244 

Commercial construction

  13,196   -   13,196 

Residential real estate

  8,856   -   8,856 

Total

 $83,681  $26,182  $109,863 
Financing Receivable, Past Due [Table Text Block]
  

December 31, 2022

 
  

30-59 Days Past Due

  

60-89 Days Past Due

  

90 Days or Greater Past Due and Still Accruing

  

Nonaccrual

  

Total Past Due and Nonaccrual

  

Current

  

Gross Loans

 

Commercial

 $306  $-  $-  $25,257  $25,563  $1,447,171  $1,472,734 

Commercial real Estate

  90   -   5,591   16,817   22,498   5,772,730   5,795,228 

Commercial construction

  -   -   -   -   -   574,139   574,139 

Residential real Estate

  1,569   -   -   2,380   3,949   260,799   264,748 

Consumer

  -   -   -   -   -   2,312   2,312 

Total

 $1,965  $-  $5,591  $44,454  $52,010  $8,057,151  $8,109,161 
  

December 31, 2021

 
  

30-59 Days Past Due

  

60-89 Days Past Due

  

90 Days or Greater Past Due and Still Accruing

  

Nonaccrual

  

Total Past Due and Nonaccrual

  

Current

  

Total Loans Receivable

 

Commercial

 $4,305  $729  $4,457  $30,062  $39,553  $1,259,875  $1,299,428 

Commercial real estate

  1,622   1,009   5,935   25,393   33,959   4,707,631   4,741,590 

Commercial construction

  -   -   -   3,150   3,150   537,028   540,178 

Residential real estate

  1,437   292   3,139   3,095   7,963   247,306   255,269 

Consumer

  -   -   -   -   -   1,886   1,886 

Total

 $7,364  $2,030  $13,531  $61,700  $84,625  $6,753,726  $6,838,351 
Schedule of Evaluation of Impairment on Financing Receivables [Table Text Block]
  

December 31, 2022

 
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Total

 
  

(dollars in thousands)

 

Allowance for credit losses - loans

                        

Individually evaluated

 $7,426  $1,003  $-  $50  $-  $8,479 

Collectively evaluated

  19,319   50,818   3,718   4,093   7   77,955 

Acquired with deteriorated credit quality individually analyzed​​

  2,158   1,921   -   -   -   4,079 

Total

 $28,903  $53,742  $3,718  $4,143  $7  $90,513 

Gross loans

                        

Individually evaluated

 $30,994  $46,886  $8,232  $5,864  $-  $91,976 

Collectively evaluated

  1,436,866   5,742,751   565,907   258,884   2,312   8,006,720 

Acquired with deteriorated credit quality individually analyzed​​

  4,874   5,591   -   -   -   10,465 

Total

 $1,472,734  $5,795,228  $574,139  $264,748  $2,312  $8,109,161 
  

December 31, 2021

 
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Total

 
  

(dollars in thousands)

 

Allowance for credit losses - loans

                        

Individually evaluated

 $15,131  $955  $-  $131  $-  $16,217 

Collectively evaluated

  8,561   42,713   3,580   3,497   7   58,358 

Acquired with deteriorated credit quality individually analyzed​​

  2,277   1,921   -   -   -   4,198 

Total

 $25,969  $45,589  $3,580  $3,628  $7  $78,773 
                         

Gross loans

                        

Individually evaluated

 $33,726  $49,310  $13,196  $5,717  $-  $101,949 

Collectively evaluated

  1,260,537   4,686,346   526,982   246,413   1,886   6,722,164 

Acquired with deteriorated credit quality individually analyzed​​

  5,165   5,934   -   3,139   -   14,238 

Total

 $1,299,428  $4,741,590  $540,178  $255,269  $1,886  $6,838,351 
Financing Receivable, Allowance for Credit Loss [Table Text Block]
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Unallocated

  

Total

 
  

(dollars in thousands)

 

Balance as of January 1, 2022

 $25,969  $45,589  $3,580  $3,628  $7  $-  $78,773 

Charge-offs

  (2,612)  (2,819)  -   (9)  (3)  -   (5,443)

Recoveries

  54   -   -   63   -   -   117 

Provision for credit losses

  5,492   10,972   138   461   3   -   17,066 

Balance as of December 31, 2022

 $28,903  $53,742  $3,718  $4,143  $7  $-  $90,513 
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Unallocated

  

Total

 
  

(dollars in thousands)

 

Balance as of January 1, 2021

 $28,443  $39,330  $8,194  $2,687  $4  $568  $79,226 

Day 1 Adjustment CECL

  (4,225)  9,605   (961)  2,697   9   (568)  6,557 

Balance as of January 1, 2021

  24,218   48,935   7,233   5,384   13   -   85,783 

Charge-offs

  (382)  (1,780)  -   (235)  -   -   (2,397)

Recoveries

  289   85   -   20   11   -   405 

Provision for (reversal of) credit losses

  1,844   (1,651)  (3,653)  (1,541)  (17)  -   (5,018)

Balance as of December 31, 2021

 $25,969  $45,589  $3,580  $3,628  $7  $-  $78,773 
  

Commercial

  

Commercial real estate

  

Commercial construction

  

Residential real estate

  

Consumer

  

Unallocated

  

Total

 
  

(dollars in thousands)

 

Balance as of January 1, 2020

 $8,349  $20,853  $7,304  $1,685  $3  $99  $38,293 

Charge-offs

  (552)  -   -   (341)  (7)  -   (900)

Recoveries

  4   802   -   23   4   -   833 

Provision for loan losses

  20,642   17,675   890   1,320   4   469   41,000 

Balance as of December 31, 2020

 $28,443  $39,330  $8,194  $2,687  $4  $568  $79,226 
Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block]
      

Pre-Modification

  

Post-Modification

 
      

Outstanding

  

Outstanding

 
  

Number of

  

Recorded

  

Recorded

 
  

Loans

  

Investment

  

Investment

 
  

(dollars in thousands)

 

Troubled debt restructurings:

            

Commercial

  2  $633  $633 

Commercial real estate

  3   12,083   11,583 

Residential real estate

  3   949   949 

Total

  8  $13,665  $13,165 
      

Pre-Modification

  

Post-Modification

 
      

Outstanding

  

Outstanding

 
  

Number of

  

Recorded

  

Recorded

 
  

Loans

  

Investment

  

Investment

 
  

(dollars in thousands)

 

Troubled debt restructurings:

            

Commercial

  4  $1,276  $1,276 

Commercial real estate

  11   35,635   35,635 

Commercial construction

  1   1,641   1,641 

Residential real estate

  3   1,758   1,758 

Total

  19  $40,310  $40,310 
      

Pre-Modification

  

Post-Modification

 
      

Outstanding

  

Outstanding

 
  

Number of

  

Recorded

  

Recorded

 
  

Loans

  

Investment

  

Investment

 
  

(dollars in thousands)

 

Troubled debt restructurings:

            

Commercial

  1  $188  $188 

Commercial real estate

  1   93   93 

Commercial construction

  1   4,021   4,021 

Residential real estate

  2   2,184   2,184 

Total

  5  $6,486  $6,486 
Schedule of Allowance for Credit Losses on Unfunded Commitments [Table Text Block]
         
  

2022

  

2021

 

Balance as of beginning of period

 $2,351  $- 

Day 1 Effect of CECL

  -   2,833 

Provision for (reversal of) credit losses - unfunded commitments

  684   (482)

Balance as of end of period

 $3,035  $2,351 
         
Schedule of Provision for (Reversal of) Credit Losses [Table Text Block]
         
  

2022

  

2021

 

Provision for (reversal of) credit losses - loans

 $17,066  $(5,018)

Provision for (reversal of) credit losses - unfunded commitments

  684   (482)

Provision for (reversal of) credit losses

 $17,750  $(5,500)
v3.22.4
Note 5 - Premises and Equipment (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Property, Plant and Equipment [Table Text Block]
  

Estimated

         
  

Useful Life

         
  

(Years)

  

2022

  

2021

 
  

(dollars in thousands)

 

Land

  -  $6,732  $7,232 

Buildings

  10-25   9,797   10,509 

Furniture, fixtures and equipment

  3-7   24,830   24,137 

Leasehold improvements

  10-20   25,164   27,343 

Subtotal

      66,523   69,221 

Less: accumulated depreciation, amortization and fair value adjustments

      38,723   40,189 

Total premises and equipment, net

     $27,800  $29,032 

 
Schedule of Capital Lease In Premises and Equipment [Table Text Block]
  

2022

  

2021

 
  

(dollars in thousands)

 

Finance lease

 $3,423  $3,423 

Less: accumulated amortization

  2,395   2,224 
  $1,028  $1,199 

 
Finance Lease, Liability, Fiscal Year Maturity [Table Text Block]

2023

 $323 

2024

  353 

2025

  353 

2026

  353 

2027

  353 

Thereafter

  323 

Total minimum lease payments

  2,058 
     

Less amount representing interest

  325 

Present value of net minimum lease payments

 $1,733 

 
Lessee, Operating Lease, Liability, Maturity [Table Text Block]
  

December 31,

 
  

2022

 
  

(dollars in thousands)

 

Lease payments due:

    

Less than 1 year

 $2,958 

1 year through less than 2 years

  2,422 

2 years through less than 3 years

  2,139 

3 years through less than 4 years

  2,043 

4 years through 5 years

  1,391 

After 5 years

  1,360 

Total undiscounted cash flows

  12,313 

Impact of discounting

  (916)

Total lease liability

 $11,397 

 
v3.22.4
Note 6 - Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Goodwill [Table Text Block]
  

2022

  

2021

 
  

(dollars in thousands)

 

Balance, January 1

 $208,372  $208,372 

Acquired goodwill

  -   - 

Impairment

  -   - 

Balance, December 31

 $208,372  $208,372 

 
Schedule of Finite-Lived Intangible Assets [Table Text Block]
  

Gross

      

Net

 
  

Carrying

  

Accumulated

  

Carrying

 
  

Amount

  

Amortization

  

Amount

 
  

(dollars in thousands)

 

Core deposit intangibles

            

December 31, 2022

 $18,515  $(11,203) $7,312 

Core deposit intangibles

            

December 31, 2021

 $18,515  $(9,518) $8,997 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

2023

 $1,438 

2024

  1,235 

2025

  1,116 

2026

  1,050 

2027

  989 

 
v3.22.4
Note 7 - Deposits (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule Of Time Deposits [Table Text Block]

2023

 $1,571,746 

2024

  502,172 

2025

  112,106 

2026

  169,440 

2027

  40,179 

Time Deposits (before net discount)

 $2,395,643 

Fair value net discount

  (1,453)

Total Time Deposits (after net discount)

 $2,394,190 

 
v3.22.4
Note 8 - FHLB Borrowings (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block]
  

December 31, 2022

  

December 31, 2021

 
  

Amount

  

Rate

  

Amount

  

Rate

 
  

(dollars in thousands)

 

By remaining period to maturity:

                

Less than 1 year

 $830,000   4.42% $390,549   0.56%

1 year through less than 2 years

  -   -   50,000   1.84 

2 years through less than 3 years

  25,000   1.00   -   n/a 

3 years through less than 4 years

  2,050   2.23   25,000   1.00 

4 years through 5 years

  326   2.85   2,050   2.23 

After 5 Years

  326   2.96   714   2.91 

FHLB borrowings - (before discount)

  857,702   4.32%  468,313   0.73%

Fair value discount

  (80)      (120)    

FHLB borrowings (after discount)

 $857,622      $468,193     
v3.22.4
Note 9 - Subordinated Debentures (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Long-Term Debt Instruments [Table Text Block]

Issuance Date

 

Securities Issued

 

Liquidation Value

 

Coupon Rate

 

Maturity

 

Redeemable by Issuer

Beginning

12/19/2003

 $5,000,000 

$1,000 per Capital Security

 

Floating 3-month LIBOR + 285 Basis Points

 

1/23/2034

 

1/23/2009
v3.22.4
Note 10 - Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
  

2022

  

2021

  

2020

 

Current:

            

Federal

 $33,169  $32,364  $19,590 

State

  13,247   12,325   7,006 

Subtotal

  46,416   44,689   26,596 

Deferred:

            

Federal

  (3,353)  (110)  (3,881)

State

  2,950   126   (3,614)

Subtotal

  (403)  16   (7,495)

Income tax expense

 $46,013  $44,705  $19,101 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
  

2022

  

2021

  

2020

 

Income before income tax expense

 $171,224  $175,058  $90,390 

Federal statutory rate

  21%  21%  21%

Computed “expected” Federal income tax expense

  35,957   36,762   18,982 

State tax, net of federal tax benefit

  13,314   9,127   1,913 

162M adjustment

  777   -   - 

Bank owned life insurance

  (1,175)  (1,001)  (1,052)

Tax-exempt interest and dividends

  (1,969)  (1,405)  (1,491)

Tax benefits from stock-based compensation

  (417)  (261)  157 

Other, net

  (474)  1,483   592 

Income tax expense

 $46,013  $44,705  $19,101 

 
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
  

2022

  

2021

 
  

(dollars in thousands)

 

Deferred tax assets

        

Allowance for credit losses

 $26,901  $23,955 

Depreciation

  -   205 

Pension actuarial losses

  1,269   1,301 

New Jersey net operating loss

  156   3,609 

Deferred compensation

  3,784   2,786 

Unrealized losses on available-for-sale securities

  25,141   191 

Deferred loan costs, net of fees

  2,664   2,163 

Finance lease

  212   222 

Nonaccrual interest

  168   62 

Operating lease liability

  3,424   3,747 

Other

  4,172   3,703 

Total deferred tax assets

 $67,891  $41,944 

Deferred tax liabilities

        

Employee benefit plans

 $(2,452) $(2,289)

Purchase accounting

  (1,458)  (925)

Depreciation

  (381)  - 

Prepaid expenses

  (1,011)  (288)

Market discount accretion

  -   (437)

Unrealized gains on swaps

  (13,704)  (941)

Right of use asset

  (3,059)  (3,325)

Other

  (1,681)  (1,984)

Total deferred tax liabilities

  (23,746)  (10,189)

Net deferred tax assets

 $44,145  $31,755 

 
v3.22.4
Note 12 - Commitments, Contingencies, and Concentrations of Credit Risk (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Fair Value, off-Balance-Sheet Risks [Table Text Block]
  

2022

  

2021

 
  

(dollars in thousands)

 

Commitments under commercial loans and lines of credit

 $662,515  $647,971 

Home equity and other revolving lines of credit

  54,302   53,180 

Outstanding commercial mortgage loan commitments

  433,034   514,473 

Standby letters of credit

  20,770   25,271 

Overdraft protection lines

  905   973 

Total

 $1,171,526  $1,241,868 

 
v3.22.4
Note 13 - Transactions with Executive Officers, Directors, and Principle Stockholders (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Related Party Transactions [Table Text Block]
  

2022

  

2021

 
  

(dollars in thousands)

 

Balance, January 1

 $17,616  $21,534 

New loans

  1,200   5,250 

Repayments

  (2,550)  (9,168)

Balance, December 31

 $16,266  $17,616 

 
v3.22.4
Note 14 - Stockholders' Equity and Regulatory Requirements (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]
                  

For Classification

 
                  

Under Corrective

 
          

Minimum

  

Action Plan

 
          

Capital Adequacy

  

as Well Capitalized

 
  

Amount

  

Ratio

  

Amount

  

Ratio

  

Amount

  

Ratio

 

The Bank

         

(dollars in thousands)

         

December 31, 2022

                        

Leverage (Tier 1) capital

 $996,013   10.64% $374,553   4.00% $468,191   5.00%

Risk-Based Capital:

                        

CET 1

 $996,013   11.60  $386,289   4.50  $557,972   6.50 

Tier 1

  996,013   11.60   515,051   6.00   686,735   8.00 

Total

  1,117,733   13.02   686,735   8.00   858,419   10.00 
                         

December 31, 2021

                        

Leverage (Tier 1) capital

 $891,730   11.43% $312,166   4.00% $390,207   5.00%

Risk-Based Capital:

                        

CET 1

 $891,730   11.96  $335,641   4.50  $484,815   6.50 

Tier 1

  891,730   11.96   447,522   6.00   596,696   8.00 

Total

  1,002,753   13.44   596,696   8.00   745,869   10.00 
          

Minimum Capital

  

For Classification

 
          

Adequacy

  

as Well Capitalized

 
  Amount  Ratio  Amount  Ratio  Amount  Ratio 

The Company

 (dollars in thousands) 

December 31, 2022

                        

Leverage (Tier 1) capital

 $1,000,577   10.68% $374,729   4.00%  N/A   N/A 

Risk-Based Capital:

                        

CET 1

 $884,495   10.30  $386,295   4.50   N/A   N/A 

Tier 1

  1,000,577   11.66   515,061   6.00   N/A   N/A 

Total

  1,240,047   14.45   686,748   8.00   N/A   N/A 
                         

December 31, 2021

                        

Leverage (Tier 1) capital

 $909,577   11.65% $312,194   4.00%  N/A   N/A 

Risk-Based Capital:

                        

CET 1

 $793,495   10.64  $335,648   4.50   N/A   N/A 

Tier 1

  909,577   12.19   447,531   6.00   N/A   N/A 

Total

  1,138,350   15.26   596,708   8.00   N/A   N/A 
v3.22.4
Note 15 - Comprehensive Income (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]
             

Affected Line Item in the

Details about Accumulated Other

 

Amounts Reclassified from Accumulated

 

Consolidated

Comprehensive Income (Loss) Components

 

Other Comprehensive Income (Loss)

 

Statements of Income

  

For the Year Ended

  
  

December 31,

  

(dollars in thousands)

 

2022

  

2021

  

2020

  

Sale of investment securities available-for-sale

 $-  $195  $29 

Net gains on sale of investment securities

   -   (48)  (6)

Income tax expense

   -   147   23  

Net interest income (expense) on swaps

  3,243   (1,873)  (1,577)

Interest income (expense)

   (976)  528   443 

Income tax (benefit) expense

   2,267   (1,345)  (1,134) 

Amortization of pension plan net actuarial losses

  (66)  (299)  (301)

Salaries and employee benefits

   20   84   84 

Income tax benefit

   (46)  (215)  (217) 

Total reclassification

 $2,221  $(1,413) $(1,328) 
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
  

2022

  

2021

 
  

(dollars in thousands)

 

Investment securities available-for-sale, net of tax

 $(61,775) $(484)

Cash flow hedge, net of tax

  32,360   2,406 

Defined benefit pension, net of tax

  (2,949)  (3,326)

Total

 $(32,364) $(1,404)

 
v3.22.4
Note 16 - Pension and Other Benefits (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Changes in Projected Benefit Obligations [Table Text Block]
  

2022

  

2021

 
  

(dollars in thousands)

 

Change in Benefit Obligation:

        

Projected benefit obligation as of January 1,

 $14,644  $13,476 

Interest cost

  311   284 

Actuarial (gain) loss

  (4,657)  1,584 

Benefits paid

  (981)  (700)

Projected benefit obligation as of December 31,

 $9,317  $14,644 

Change in Plan Assets:

        

Fair value of plan assets as of January 1,

 $17,604  $15,868 

Actual return on plan assets

  (3,366)  2,436 

Benefits paid

  (981)  (700)

Fair value of plan assets as of December 31,

 $13,257  $17,604 

Funded status

 $3,940  $2,960 

 
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block]
  

As of December 31,

 
  

2022

  

2021

 
  

(dollars in thousands)

 

Net actuarial loss recognized in accumulated other comprehensive income (pre-tax)

 $4,219  $4,627 
Schedule of Net Benefit Costs [Table Text Block]
  

2022

  

2021

  

2020

 
  

(dollars in thousands)

 

Interest cost

 $311  $284  $364 

Expected return on plan assets

  (949)  (852)  (784)

Net amortization

  66   299   301 

Total net periodic pension income

 $(572) $(269) $(119)
             

Total unrealized (gain) loss recognized in other comprehensive income

  (343)  -   112 

Realized losses included in net income

  (66)  (299)  (301)

Total recognized in net periodic pension income and other comprehensive income

 $(981) $(568) $(308)

 
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets [Table Text Block]
  

2022

  

2021

 

Discount rate

  4.92%  2.57%

Rate of compensation increase

  N/A   N/A 
  

2023

  

2022

  

2021

 
             

Discount rate

  4.92%  2.57%  2.17%

Expected long-term return on plan assets

  6.50%  5.50%  5.50%

Rate of compensation increase

  N/A   N/A   N/A 
Schedule of Allocation of Plan Assets [Table Text Block]
              

Weighted

 
              

Average

 
      

% of Plan

  

% of Plan

  

Expected

 
      

Assets –

  

Assets –

  

Long-Term

 
  

Target

  

Year Ended

  

Year Ended

  

Rate of

 
  

Allocation

  

2022

  

2021

  

Return

 

Equity Securities

                

Domestic

  45%  58%  59%  4.5%

International

  15   4   5   0.4 

Debt and/or fixed income securities

  38   35   34   1.5 

Cash and other alternative investments, including real estate funds, commodity funds, hedge funds and equity structured notes

  2   3   2   0.1 

Total

  100%  100%  100%  6.5%
Schedule of Changes in Fair Value of Plan Assets [Table Text Block]
  

December 31,

             
  

2022

  

Fair Value Measurements at Reporting Date Using

 
      

Quoted Prices

  

Significant

     
      

in Active

  

Other

  

Significant

 
      

Markets for

  

Observable

  

Unobservable

 
      

Identical Assets

  

Inputs

  

Inputs

 

Asset Class

     

(Level 1)

  

(Level 2)

  

(Level 3)

 
  

(dollars in thousands)

 

Cash

 $262  $262  $-  $- 

Equity securities:

                

U.S. companies

  7,611   7,611   -   - 

International companies

  569   569   -   - 

Debt and/or fixed income securities

  4,684   4,684   -   - 

Commodity funds

  95   95   -   - 

Real estate funds

  36   36   -   - 

Total

 $13,257  $13,257  $-  $- 
  

December 31,

             
  

2021

  

Fair Value Measurements at Reporting Date Using

 
      

Quoted Prices

  

Significant

     
      

in Active

  

Other

  

Significant

 
      

Markets for

  

Observable

  

Unobservable

 
      

Identical Assets

  

Inputs

  

Inputs

 

Asset Class

     

(Level 1)

  

(Level 2)

  

(Level 3)

 
  

(dollars in thousands)

 

Cash

 $178  $178  $-  $- 

Equity securities:

                

U.S. companies

  10,551   10,551   -   - 

International companies

  897   897   -   - 

Debt and/or fixed income securities

  5,804   5,804   -   - 

Commodity funds

  111   111   -   - 

Real estate funds

  63   63   -   - 

Total

 $17,604  $17,604  $-  $- 
Schedule of Defined Benefit Plans Disclosures [Table Text Block]

2023

 $738 

2024

  726 

2025

  724 

2026

  728 

2027

  770 

2028 - 2032

  3,744 
v3.22.4
Note 17 - Stock-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Share-Based Payment Arrangement, Option, Activity [Table Text Block]
          

Weighted-

     
          

Average

     
      

Weighted-

  

Remaining

     
  

Number of

  

Average

  

Contractual

     
  

Stock

  

Exercise

  

Term

  

Aggregate

 
  

Options

  

Price

  

(in years)

  

Intrinsic Value

 

Outstanding as of December 31, 2021

  23,766  $9.94         

Granted

  -   -         

Exercised

  (15,086)  8.21         

Forfeited/cancelled/expired

  -   -         

Outstanding as of December 31, 2022

  8,680   12.95   0.29  $97,673 
                 

Exercisable as of December 31, 2022

  8,680  $12.95   -  $- 

 
Nonvested Restricted Stock Shares Activity [Table Text Block]
      

Weighted-

 
      

Average

 
  

Nonvested

  

Grant Date

 
  

Shares

  

Fair Value

 

Nonvested as of December 31, 2021

  82,693  $21.78 

Granted

  53,543   30.76 

Vested

  (49,931)  23.74 

Forfeited/cancelled/expired

  (374)  30.99 

Nonvested December 31, 2022

  85,931  $26.20 

 
Schedule of Nonvested Performance-Based Units Activity [Table Text Block]
          

Weighted

 
          

Average Grant

 
  

Units

  

Units

  

Date Fair

 
  

(expected)

  

(maximum)

  

Value

 

Unearned as of December 31, 2021

  209,995      $16.18 

Awarded

  34,874       32.80 

Vested shares

  (49,604)      20.79 

Unearned as of December 31, 2022

  195,265   221,541  $17.98 
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]
      

Weighted

 
      

Average Grant

 
  

Units

  

Date Fair

 
  

(expected)

  

Value

 

Unearned as of December 31, 2021

  136,948  $16.52 

Awarded

  52,312   32.80 

Vested shares

  (69,225)  16.13 

Unearned as of December 31, 2022

  120,035  $23.84 

 
v3.22.4
Note 19 - Derivatives (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]
  

2022

 
  

Amount of gain

  

Amount of (gain)

  

Amount of gain (loss)

 
  

(loss) recognized

  

loss reclassified

  

recognized in other

 
  

in OCI (Effective

  

from OCI to

  

Noninterest income

 

(dollars in thousands)

 

Portion)

  

interest expense

  

(Ineffective Portion)

 

Interest rate contracts

 $46,282  $(3,343) $- 
  

2021

 
  

Amount of gain

  

Amount of (gain)

  

Amount of gain (loss)

 
  

(loss) recognized

  

loss reclassified

  

recognized in other

 
  

in OCI (Effective

  

from OCI to

  

Noninterest income

 

(dollars in thousands)

 

Portion)

  

interest expense

  

(Ineffective Portion)

 

Interest rate contracts

 $3,593  $1,873  $- 
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]
  

2022

  

2021

 
  

Notional

      

Notional

     

(dollars in thousands)

 

Amount

  

Fair Value

  

Amount

  

Fair Value

 

Included in other assets/(liabilities):

                

Interest rate contracts

 $950,000  $56,797  $475,000  $3,347 
v3.22.4
Note 20 - Fair Value Measurements and Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
      

December 31, 2022

 
      

Fair Value Measurements at Reporting Date Using

 
      

Quoted Prices

         
      

in Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
      

Assets

  

Inputs

  

Inputs

 
  

Total Fair Value

  

(Level 1)

  

(Level 2)

  

(Level 3)

 

(dollars in thousands)

                

Recurring fair value measurements:

                

Assets

                

Investment securities:

                

Available-for-sale:

                

Federal agency obligations

 $44,450  $-  $44,450  $- 

Residential mortgage pass-through securities

  417,578   -   417,578   - 

Commercial mortgage pass-through securities

  21,104   -   21,104   - 

Obligations of U.S. states and political subdivision

  142,896   -   135,547   7,349 

Corporate bonds and notes

  6,974   -   6,974   - 

Asset-backed securities

  1,640   -   1,640   - 

Certificates of deposit

  -   -   -   - 

Other securities

  242   242   -   - 

Total available-for-sale

 $634,884  $242  $627,293  $7,349 
                 

Equity securities

  15,811   9,733   6,078   - 

Derivatives - interest rate contracts

  56,797   -   56,797   - 

Total assets

 $707,492  $9,975  $690,168  $7,349 
      

December 31, 2021

 
      

Fair Value Measurements at Reporting Date Using

 
      

Quoted Prices

         
      

in Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
      

Assets

  

Inputs

  

Inputs

 
  

Total Fair Value

  

(Level 1)

  

(Level 2)

  

(Level 3)

 

(dollars in thousands)

                

Recurring fair value measurements:

                

Assets

                

Investment securities:

                

Available-for-sale:

                

Federal agency obligations

 $50,360  $-  $50,360  $- 

Residential mortgage pass-through securities

  316,095   -   316,095   - 

Commercial mortgage pass-through securities

  10,469   -   10,469   - 

Obligations of U.S. states and political subdivision

  145,625   -   137,060   8,565 

Corporate bonds and notes

  9,049   -   9,049   - 

Asset-backed securities

  2,564   -   2,564   - 

Certificates of deposit

  150   -   150   - 

Other securities

  195   195   -   - 

Total available-for-sale

 $534,507  $195  $525,747  $8,565 
                 

Equity securities

  13,794   11,081   2,713   - 

Derivatives - interest rate contracts

  3,347   -   3,347   - 

Total assets

 $551,648  $11,276  $531,807  $8,565 
Fair Value Measurements, Nonrecurring [Table Text Block]
      

Fair Value Measurements at Reporting Date Using

 
      

Quoted

         
      

Prices

         
      

in Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
  

December 31,

  

Assets

  

Inputs

  

Inputs

 
  

2022

  

(Level 1)

  

(Level 2)

  

(Level 3)

 

Assets measured at fair value on a nonrecurring basis:

 

(dollars in thousands)

 

Collateral dependent loans:

                

Commercial

 $14,550  $-  $-  $14,550 

Commercial real estate

  17,264   -   -   17,264 

Residential real estate

  1,392   -   -   1,392 
      

Fair Value Measurements at Reporting Date Using

 
      

Quoted

         
      

Prices

         
      

in Active

  

Significant

     
      

Markets for

  

Other

  

Significant

 
      

Identical

  

Observable

  

Unobservable

 
  

December 31,

  

Assets

  

Inputs

  

Inputs

 
  

2021

  

(Level 1)

  

(Level 2)

  

(Level 3)

 

Assets measured at fair value on a nonrecurring basis:

 

(dollars in thousands)

 

Collateral dependent loans:

                

Commercial

 $13,399  $-  $-  $13,399 

Commercial real estate

  20,185   -   -   20,185 

Residential real estate

  2,794   -   -   2,794 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
  

Municipal

 
  

Securities

 
  

(dollars in thousands)

 

Beginning balance, January 1, 2022

 $8,565 

Principal paydowns

  (287)

Changes in unrealized gain (loss)

  (929)

Ending balance, December 31, 2022

 $7,349 
     
  

Municipal

 
  

Securities

 
  

(dollars in thousands)

 

Beginning balance, January 1, 2021

 $8,844 

Principal paydowns

  (279)

Ending balance, December 31, 2021

 $8,565 
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

December 31, 2022

    

Valuation

 

Unobservable

   
  

Fair Value

 

Techniques

 

Input

 

Range

 

Securities available-for-sale:

    

(dollars in thousands)

     

Municipal securities

 $7,349 

Discounted cash flows

 

Discount rate

 4.3%

December 31, 2021

    

Valuation

Unobservable

    
  

Fair Value

 

Techniques

Input

 

Range

 

Securities available-for-sale:

    

(dollars in thousands)

     

Municipal securities

 $8,565 

Discounted cash flows

Discount rate

  2.9%
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

December 31, 2022

           
     

Valuation

 

Unobservable

    

(dollars in thousands)

 

Fair Value

 

Techniques

 

Input

 

Range (weighed average)

 

Commercial loans

 $14,028 

Market approach (100%)

 

Average transfer price as a price to unpaid principal balance

  65% to 96% (67%) 

Commercial loans

  522 

Appraisals of collateral

 

Adjustment for comparable sales

 

-10% to +13% (+3%)

 

Commercial real estate loans

  17,264 

Appraisals of collateral

 

Adjustment for comparable sales

 

-20% to +0% (-15%)

 

Residential real estate loans

  1,392 

Appraisals of collateral

 

Adjustment for comparable sales

 

+21% to +39% (22%)

 

December 31, 2021

          
     

Valuation

 

Unobservable

   

(dollars in thousands)

 

Fair Value

 

Techniques

 

Input

 

Range (weighed average)

 

Commercial loans

 $12,193 

Market approach (100%)

 

Average transfer price as a price to unpaid principal balance

 48% to 73% (49%) 

Commercial loans

  1,206 

Appraisals of collateral

 

Adjustment for comparable sales

 

-10% to +35% (+6%)

 

Commercial real estate loans

  20,185 

Appraisals of collateral

 

Adjustment for comparable sales

 

-20% to +15% (-6%)

 

Residential real estate loans

  2,794 

Appraisals of collateral

 

Adjustment for comparable sales

 -15% to +39% (5%) 
Fair Value, by Balance Sheet Grouping [Table Text Block]
          

Fair Value Measurements

 
          

Quoted

         
          

Prices in

         
          

Active

  

Significant

     
          

Markets for

  

Other

  

Significant

 
          

Identical

  

Observable

  

Unobservable

 
  

Carrying

  

Fair

  

Assets

  

Inputs

  

Inputs

 
  

Amount

  

Value

  

(Level 1)

  

(Level 2)

  

(Level 3)

 
  

(dollars in thousands)

 

December 31, 2022

                    

Financial assets:

                    

Cash and due from banks

 $268,315  $268,315  $268,315  $-  $- 

Investment securities available-for-sale

  634,884   634,884   242   627,293   7,349 

Restricted investment in bank stocks

  46,604   n/a   n/a   n/a   n/a 

Equity securities

  15,811   15,811   9,733   6,078   - 

Net loans

  8,009,176   7,723,378   -   -   7,723,378 

Derivatives - interest rate contracts

  56,797   56,797   -   56,797   - 

Accrued interest receivable

  46,062   46,062   -   4,685   41,377 
                     

Financial liabilities:

                    

Noninterest-bearing deposits

  1,501,614   1,501,614   1,501,614   -   - 

Interest-bearing deposits

  5,855,008   5,811,291   3,460,818   2,350,473   - 

Borrowings

  857,622   854,698   -   854,698   - 

Subordinated debentures

  153,255   153,581   -   153,581   - 

Accrued interest payable

  6,925   6,925   -   6,925   - 
                     

December 31, 2021

                    

Financial assets:

                    

Cash and due from banks

 $265,536  $265,536  $265,536  $-  $- 

Investment securities available-for-sale

  534,507   534,507   195   525,747   8,565 

Restricted investment in bank stocks

  27,826   n/a   n/a   n/a   n/a 

Equity securities

  13,794   13,794   11,081   2,713   - 

Net loans

  6,749,849   6,800,287   -   -   6,800,287 

Derivatives - interest rate contracts

  3,347   3,347   -   3,347   - 

Accrued interest receivable

  34,152   34,152   -   1,554   32,598 
                     

Financial liabilities:

                    

Noninterest-bearing deposits

  1,617,049   1,617,049   1,617,049   -   - 

Interest-bearing deposits

  4,715,904   4,716,358   3,565,795   1,150,563   - 

Borrowings

  468,193   469,671   -   469,671   - 

Subordinated debentures

  152,951   163,995   -   163,995   - 

Accrued interest payable

  2,716   2,716   -   2,716   - 
v3.22.4
Note 21 - Parent Corporation Only Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Condensed Balance Sheet [Table Text Block]
  

As of December 31,

 
  

2022

  

2021

 
  

(dollars in thousands)

 

ASSETS

        

Cash and cash equivalents

 $117,162  $133,648 

Investment in subsidiaries

  1,179,342   1,111,520 

Investment securities

  32,405   32,405 

Equity securities

  4,218   725 

Other assets

  699   699 

Total assets

 $1,333,826  $1,278,997 

LIABILITIES AND STOCKHOLDERS’ EQUITY

        

Other liabilities

  1,820   1,834 

Subordinated debentures, net

  153,255   152,951 

Stockholders’ equity

  1,178,751   1,124,212 

Total liabilities and stockholders’ equity

 $1,333,826  $1,278,997 
Condensed Income Statement [Table Text Block]
  

For Years Ended December 31,

 
  

2022

  

2021

  

2020

 
  

(dollars in thousands)

 

Income:

            

Dividend income from subsidiaries

 $36,475  $24,071  $15,200 

Other income

  1,638   1,627   1,683 

Total Income

  38,113   25,698   16,883 

Expenses

  (8,928)  (8,741)  (9,263)

Income before equity in undistributed earnings of subsidiaries

  29,185   16,957   7,620 

Equity in undistributed earnings of subsidiaries

  96,026   113,396   63,669 

Net Income

  125,211   130,353   71,289 

Preferred dividends

  6,037   1,717   - 

Net income available to common stockholders

 $119,174  $128,636  $71,289 
Condensed Cash Flow Statement [Table Text Block]
  

For Years Ended December 31

 
  

2022

  

2021

  

2020

 
  

(dollars in thousands)

 
             

Cash flows from operating activities:

            

Net income

 $125,211  $130,353  $71,289 

Adjustments to reconcile net income to net cash provided by operating activities:

            

Equity in undistributed earnings of subsidiary

  (96,026)  (113,396)  (63,669)

Loss on equity securities, net

  45   55   - 

Amortization of subordinated debt issuance costs

  304   303   323 

Decrease (increase) in other assets

  -   50,590   (50,001)

Decrease in other liabilities

  (14)  (287)  (391)

Net cash provided by (used in) operating activities

  29,520   67,618   (42,449)
             

Cash flows from investing activities:

            

Sale of equity securities

  (3,538)  (780)  - 

Repayment of short-term borrowing

  -   -   (3,000)

Net cash used in investing activities

  (3,538)  (780)  (3,000)
             

Cash flows from financing activities:

            

Proceeds from (repayment of) proceeds from subordinated debt

  -   (50,000)  73,440 

Cash dividends paid on preferred stock

  (6,037)  (1,717)  - 

Cash dividends paid on common stock

  (23,428)  (17,493)  (14,317)

Purchase of treasury stock

  (13,127)  (9,401)  (911)

Proceeds from preferred stock offering

  -   110,927   - 

Proceeds from exercise of stock options

  124   106   233 

Net cash (used in) provided by financing activities

  (42,468)  32,422   58,445 
             

Decrease (increase) in cash and cash equivalents

  (16,486)  99,260   12,996 

Cash and cash equivalents as of January 1,

  133,648   34,388   21,392 

Cash and cash equivalents as of December 31,

 $117,162  $133,648  $34,388 
v3.22.4
Note 22 - Quarterly Financial Information of ConnectOne Bancorp, Inc. (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2022
Notes Tables  
Quarterly Financial Information [Table Text Block]
  

2022

 
  

4th Quarter

  

3rd Quarter

  

2nd Quarter

  

1st Quarter

 
  

(dollars in thousands, except per share data)

 

Total interest income

 $112,469  $96,980  $85,356  $78,941 

Total interest expense

  34,460   18,819   9,765   8,583 

Net interest income

  78,009   78,161   75,591   70,358 

Provision for credit losses

  3,300   10,000   3,000   1,450 

Total other income

  3,508   3,322   3,359   3,054 

Other expenses

  33,312   32,143   31,703   29,230 

Income before income taxes

  44,905   39,340   44,247   42,732 

Income tax expense

  12,348   10,425   11,889   11,351 

Net income

  32,557   28,915   32,358   31,381 

Preferred dividends

  1,510   1,509   1,509   1,509 

Net income available to common stockholders

 $31,047  $27,406  $30,849  $29,872 

Earnings per share:

                

Basic

 $0.79  $0.70  $0.78  $0.76 

Diluted

  0.79   0.70   0.78   0.75 
                 

 

Note: Due to rounding, quarterly earnings per share for 2022 do not sum to reported annual earnings per share.

  

2021

 
  

4th Quarter

  

3rd Quarter

  

2nd Quarter

  

1st Quarter

 
  

(dollars in thousands, except per share data)

 

Total interest income

 $79,040  $77,026  $73,051  $72,621 

Total interest expense

  8,579   8,781   10,042   11,458 

Net interest income

  70,461   68,245   63,009   61,163 

Provision for (reversal of) credit losses

  815   1,100   (1,649)  (5,766)

Total other income, net of securities gains

  3,777   4,016   4,472   3,426 

Other expenses

  28,084   28,183   26,259   26,485 

Income before income taxes

  45,339   42,978   42,871   43,870 

Income tax expense

  12,301   10,881   10,652   10,871 

Net income

  33,038   32,097   32,219   32,999 

Preferred dividends

  1,717   -   -   - 

Net income available to common stockholders

 $31,321  $32,097  $32,219  $32,999 

Earnings per share:

                

Basic

 $0.79  $0.81  $0.81  $0.83 

Diluted

  0.79   0.80   0.81   0.82 

 

 
v3.22.4
Note 1a - Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Details Textual)
 12 Months Ended
Dec. 31, 2022
USD ($)
shares
Dec. 31, 2021
USD ($)
shares
Number of Operating Segments 5  
Non Accrual Contractual Due (Day) 90 days  
Stock Repurchase Program, Repurchased, Shares (in shares) | shares 447,108 330,541
Goodwill, Impairment Loss $ 0 $ 0
Minimum [Member]    
Financing Receivable, Individually Evaluated for Impairment $ 250,000  
Minimum [Member] | Land, Buildings and Improvements [Member]    
Property, Plant and Equipment, Useful Life (Year) 4 years  
Minimum [Member] | Furniture Fixtures and Equipment [Member]    
Property, Plant and Equipment, Useful Life (Year) 3 years  
Minimum [Member] | Nonaccrual Loans [Member]    
Financing Receivable, Individually Evaluated for Impairment $ 250,000  
Maximum [Member]    
Financing Receivable, Collectively Evaluated for Impairment $ 250,000  
Maximum [Member] | Land, Buildings and Improvements [Member]    
Property, Plant and Equipment, Useful Life (Year) 30 years  
Maximum [Member] | Furniture Fixtures and Equipment [Member]    
Property, Plant and Equipment, Useful Life (Year) 10 years  
v3.22.4
Note 2 - Earnings Per Common Share (Details Textual) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) 0 0 0
v3.22.4
Note 2 - Earnings Per Common Share - Computation of Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net income available to common stockholders $ 31,047 $ 27,406 $ 30,849 $ 29,872 $ 31,321 $ 32,097 $ 32,219 $ 32,999 $ 119,174 $ 128,636 $ 71,289
Earnings allocated to participating securities                 (287) (313) (356)
Income attributable to common stock                 $ 118,887 $ 128,323 $ 70,933
Weighted average common shares outstanding, including participating securities (in shares)                 39,355 39,723 39,643
Weighted average participating securities (in shares)                 (95) (97) (131)
Weighted average common shares outstanding (in shares)                 39,260 39,626 39,512
Incremental shares from assumed conversions of options, deferred stock units, performance units and restricted stock (in shares)                 216 260 132
Weighted average common and equivalent shares outstanding (in shares)                 39,476 39,886 39,644
Basic (in dollars per share) $ 0.79 $ 0.70 $ 0.78 $ 0.76 $ 0.79 $ 0.81 $ 0.81 $ 0.83 $ 3.03 $ 3.24 $ 1.80
Diluted (in dollars per share) $ 0.79 $ 0.70 $ 0.78 $ 0.75 $ 0.79 $ 0.80 $ 0.81 $ 0.82 $ 3.01 $ 3.22 $ 1.79
v3.22.4
Note 3 - Investment Securities (Details Textual)
Pure in Thousands, $ in Thousands
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Debt Securities, Available-for-sale, Holding Greater than 10 Percent of Equity 0 0
Accrued Investment Income Receivable $ 2,400 $ 1,600
Debt Securities, Available-for-Sale, Allowance for Credit Loss, Ending Balance 0  
Asset Pledged as Collateral [Member]    
Debt Securities, Available-for-Sale, Restricted $ 157,000 $ 71,000
v3.22.4
Note 3 - Investment Securities - Portfolio of Securities Available-for-sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Amortized cost $ 721,799 $ 535,182
Gross unrealized gains 289 4,281
Gross unrealized losses (87,204) (4,956)
Securities available-for-sale 634,884 534,507
US Government Agencies Debt Securities [Member]    
Amortized cost 54,889 50,336
Gross unrealized gains 0 649
Gross unrealized losses (10,439) (625)
Securities available-for-sale 44,450 50,360
Residential Mortgage-Backed Securities [Member]    
Amortized cost 475,263 317,111
Gross unrealized gains 178 1,868
Gross unrealized losses (57,863) (2,884)
Securities available-for-sale 417,578 316,095
Commercial Mortgage-Backed Securities [Member]    
Amortized cost 25,485 10,814
Gross unrealized gains 0 118
Gross unrealized losses (4,381) (463)
Securities available-for-sale 21,104 10,469
US States and Political Subdivisions Debt Securities [Member]    
Amortized cost 157,247 145,045
Gross unrealized gains 111 1,562
Gross unrealized losses (14,462) (982)
Securities available-for-sale 142,896 145,625
Corporate Debt Securities [Member]    
Amortized cost 7,000 8,968
Gross unrealized gains 0 81
Gross unrealized losses (26) 0
Securities available-for-sale 6,974 9,049
Asset-Backed Securities [Member]    
Amortized cost 1,673 2,563
Gross unrealized gains 0 3
Gross unrealized losses (33) (2)
Securities available-for-sale 1,640 2,564
Other Debt Obligations [Member]    
Amortized cost 242 195
Gross unrealized gains 0 0
Gross unrealized losses 0 0
Securities available-for-sale $ 242 195
Certificates of Deposit [Member]    
Amortized cost   150
Gross unrealized gains   0
Gross unrealized losses   0
Securities available-for-sale   $ 150
v3.22.4
Note 3 - Investment Securities - Scheduled Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Due in one year or less, amortized cost $ 5,453  
Due in one year or less, fair value 5,451  
Due after one year through five years, amortized cost 4,106  
Due after one year through five years, fair value 4,082  
Due after five years through ten years, amortized cost 2,247  
Due after five years through ten years, fair value 2,244  
Due after ten years, amortized cost 209,003  
Due after ten years, fair value 184,183  
Total securities available-for-sale, amortized cost 721,799 $ 535,182
Total securities available-for-sale, fair value 634,884 534,507
Residential Mortgage-Backed Securities [Member]    
Securities available-for-sale, without single maturity date, amortized cost 475,263  
Securities available-for-sale, without single maturity date, fair value 417,578  
Total securities available-for-sale, amortized cost 475,263 317,111
Total securities available-for-sale, fair value 417,578 316,095
Commercial Mortgage-Backed Securities [Member]    
Securities available-for-sale, without single maturity date, amortized cost 25,485  
Securities available-for-sale, without single maturity date, fair value 21,104  
Total securities available-for-sale, amortized cost 25,485 10,814
Total securities available-for-sale, fair value 21,104 10,469
Other Debt Obligations [Member]    
Securities available-for-sale, without single maturity date, amortized cost 242  
Securities available-for-sale, without single maturity date, fair value 242  
Total securities available-for-sale, amortized cost 242 195
Total securities available-for-sale, fair value $ 242 $ 195
v3.22.4
Note 3 - Investment Securities - Gross Gains and Losses from Sales and Redemptions of Securities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Proceeds $ 0 $ 5,185 $ 19,624
Gross gains on sale/redemption of investment securities 0 195 29
Gross losses on sale/redemption of investment securities 0 0 0
Net gains on sales/redemptions of investment securities 0 195 29
Tax provision on net gains 0 (48) (6)
Net gains on sale/redemption of investment securities, after tax $ 0 $ 147 $ 23
v3.22.4
Note 3 - Investment Securities - Securities in an Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Temporarily impaired securities, fair value $ 608,473 $ 374,015
Temporarily impaired securities, unrealized losses (87,204) (4,956)
Temporarily impaired securities, fair value, less than 12 months 307,425 338,632
Temporarily impaired securities, unrealized losses, less than 12 months (21,450) (3,795)
Temporarily impaired securities, fair value, 12 months or longer 301,048 35,383
Temporarily impaired securities, unrealized losses, 12 months or longer (65,754) (1,161)
US Government Agencies Debt Securities [Member]    
Temporarily impaired securities, fair value 44,451 28,974
Temporarily impaired securities, unrealized losses (10,439) (625)
Temporarily impaired securities, fair value, less than 12 months 20,517 28,974
Temporarily impaired securities, unrealized losses, less than 12 months (1,831) (625)
Temporarily impaired securities, fair value, 12 months or longer 23,934 0
Temporarily impaired securities, unrealized losses, 12 months or longer (8,608) 0
Residential Mortgage-Backed Securities [Member]    
Temporarily impaired securities, fair value 403,039 246,396
Temporarily impaired securities, unrealized losses (57,863) (2,884)
Temporarily impaired securities, fair value, less than 12 months 218,918 214,701
Temporarily impaired securities, unrealized losses, less than 12 months (13,869) (2,111)
Temporarily impaired securities, fair value, 12 months or longer 184,121 31,695
Temporarily impaired securities, unrealized losses, 12 months or longer (43,994) (773)
Commercial Mortgage-Backed Securities [Member]    
Temporarily impaired securities, fair value 21,105 8,370
Temporarily impaired securities, unrealized losses (4,381) (463)
Temporarily impaired securities, fair value, less than 12 months 14,523 4,682
Temporarily impaired securities, unrealized losses, less than 12 months (2,304) (75)
Temporarily impaired securities, fair value, 12 months or longer 6,582 3,688
Temporarily impaired securities, unrealized losses, 12 months or longer (2,077) (388)
US States and Political Subdivisions Debt Securities [Member]    
Temporarily impaired securities, fair value 133,265 89,473
Temporarily impaired securities, unrealized losses (14,462) (982)
Temporarily impaired securities, fair value, less than 12 months 47,446 89,473
Temporarily impaired securities, unrealized losses, less than 12 months (3,404) (982)
Temporarily impaired securities, fair value, 12 months or longer 85,819 0
Temporarily impaired securities, unrealized losses, 12 months or longer (11,058) 0
Corporate Debt Securities [Member]    
Temporarily impaired securities, fair value 4,973  
Temporarily impaired securities, unrealized losses (26)  
Temporarily impaired securities, fair value, less than 12 months 4,973  
Temporarily impaired securities, unrealized losses, less than 12 months (26)  
Temporarily impaired securities, fair value, 12 months or longer 0  
Temporarily impaired securities, unrealized losses, 12 months or longer 0  
Asset-Backed Securities [Member]    
Temporarily impaired securities, fair value 1,640 802
Temporarily impaired securities, unrealized losses (33) (2)
Temporarily impaired securities, fair value, less than 12 months 1,048 802
Temporarily impaired securities, unrealized losses, less than 12 months (16) (2)
Temporarily impaired securities, fair value, 12 months or longer 592 0
Temporarily impaired securities, unrealized losses, 12 months or longer $ (17) $ 0
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses (Details Textual)
Pure in Thousands
 12 Months Ended
Jan. 01, 2021
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process   $ 8,109,161,000 $ 6,838,351,000    
Financing Receivable, after Allowance for Credit Loss, Total   8,009,176,000 6,749,849,000    
Allowance for Loan Losses Included in Unallocated $ 6,600,000        
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend   0      
Financing Receivable, Troubled Debt Restructuring   75,100,000 79,500,000    
Financing Receivable, Allowance for Credit Loss, Ending Balance   $ 90,513,000 $ 78,773,000 $ 79,226,000 $ 38,293,000
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts   0 0 0  
Troubled Debt Restructurings [Member]          
Financing Receivable, Allowance for Credit Loss, Ending Balance   $ 4,200,000 $ 10,400,000    
Taxi Medallion Loans [Member]          
Financing Receivable, Troubled Debt Restructuring   300,000      
Nonperforming Financial Instruments [Member]          
Financing Receivable, Troubled Debt Restructuring   23,700,000 35,900,000    
Performing Financial Instruments [Member]          
Financing Receivable, Troubled Debt Restructuring   51,400,000 43,600,000    
Asset Pledged as Collateral [Member] | Federal Home Loan Bank Advances [Member]          
Financing Receivable, after Allowance for Credit Loss, Total   2,700,000,000 2,500,000,000    
Commercial Portfolio Segment [Member]          
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process [1]   1,472,734,000 1,299,428,000    
Financing Receivable, Allowance for Credit Loss, Ending Balance   28,903,000 25,969,000 $ 28,443,000 8,349,000
Commercial Portfolio Segment [Member] | Paycheck Protection Program CARES Act [Member]          
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process   11,400,000 93,100,000    
Commercial Real Estate Portfolio Segment [Member]          
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process   5,795,228,000 4,741,590,000    
Financing Receivable, Allowance for Credit Loss, Ending Balance   53,742,000 $ 45,589,000 $ 39,330,000 $ 20,853,000
Commercial Real Estate Portfolio Segment [Member] | Contractual Interest Rate Reduction [Member]          
Financing Receivable, Troubled Debt Restructuring, One Time Principal Payment   $ 500,000      
[1] Included in commercial loans as of December 31, 2022 and December 31, 2021 were Paycheck Protection Program (“PPP”) loans of $11.4 million and $93.1 million, respectively. These loans are 100% federally guaranteed and currently not subject to any allocation of allowance for credit losses.
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses - Composition of Loan Portfolio (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process $ 8,109,161 $ 6,838,351
Net deferred fees (9,472) (9,729)
Loans receivable 8,099,689 6,828,622
Commercial Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process [1] 1,472,734 1,299,428
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 5,795,228 4,741,590
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 574,139 540,178
Residential Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 264,748 255,269
Consumer Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process $ 2,312 $ 1,886
[1] Included in commercial loans as of December 31, 2022 and December 31, 2021 were Paycheck Protection Program (“PPP”) loans of $11.4 million and $93.1 million, respectively. These loans are 100% federally guaranteed and currently not subject to any allocation of allowance for credit losses.
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses - Composition of Loans Held-for-sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Loans held-for-sale $ 13,772 $ 250
Commercial Portfolio Segment [Member]    
Loans held-for-sale 13,473 0
Residential Mortgage [Member]    
Loans held-for-sale $ 299 $ 250
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses - Loans Receivable on Nonaccrual Status (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Nonaccrual loans with ACL $ 34,336 $ 45,347
Nonaccrual loans without ACL 10,118 16,353
Total Nonaccrual loans 44,454 61,700
Commercial Portfolio Segment [Member]    
Nonaccrual loans with ACL 23,512 28,746
Nonaccrual loans without ACL 1,745 1,316
Total Nonaccrual loans 25,257 30,062
Commercial Real Estate Portfolio Segment [Member]    
Nonaccrual loans with ACL 10,220 15,362
Nonaccrual loans without ACL 6,597 10,031
Total Nonaccrual loans 16,817 25,393
Residential Portfolio Segment [Member]    
Nonaccrual loans with ACL 604 1,239
Nonaccrual loans without ACL 1,776 1,856
Total Nonaccrual loans 2,380 3,095
Commercial Construction Portfolio Segment [Member]    
Nonaccrual loans with ACL   0
Nonaccrual loans without ACL   3,150
Total Nonaccrual loans $ 0 $ 3,150
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses - Loans by Origination and Risk Designation (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Originated Current Fiscal Year $ 1,940,802 $ 2,134,128
Originated One Year Prior 1,948,742 637,882
Originated Two Years Prior 462,092 517,603
Originated Three Years Prior 417,698 574,284
Originated Four Years Prior 479,498 639,093
Originated Five or More Years Prior 1,289,624 1,103,926
Revolving Loans 1,570,705 1,231,435
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 8,109,161 6,838,351
Pass [Member]    
Originated Current Fiscal Year 1,930,147 2,131,990
Originated One Year Prior 1,946,667 628,843
Originated Two Years Prior 462,077 511,755
Originated Three Years Prior 408,820 540,362
Originated Four Years Prior 449,120 623,860
Originated Five or More Years Prior 1,194,037 995,049
Revolving Loans 1,535,858 1,176,772
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 7,926,726 6,608,631
Special Mention [Member]    
Originated Current Fiscal Year 3,040 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 583 0
Originated Four Years Prior 26 5,493
Originated Five or More Years Prior 46,325 54,483
Revolving Loans 12,131 12,310
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 62,105 72,286
Substandard [Member]    
Originated Current Fiscal Year 7,615 2,138
Originated One Year Prior 2,075 9,039
Originated Two Years Prior 15 5,848
Originated Three Years Prior 8,295 33,922
Originated Four Years Prior 30,352 9,740
Originated Five or More Years Prior 49,262 54,394
Revolving Loans 22,716 42,353
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 120,330 157,434
Doubtful [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Commercial Portfolio Segment [Member]    
Originated Current Fiscal Year 309,251 403,373
Originated One Year Prior 305,867 58,534
Originated Two Years Prior 47,967 56,327
Originated Three Years Prior 30,529 73,707
Originated Four Years Prior 64,190 105,468
Originated Five or More Years Prior 158,886 111,625
Revolving Loans 556,044 490,394
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process [1] 1,472,734 1,299,428
Commercial Portfolio Segment [Member] | Pass [Member]    
Originated Current Fiscal Year 301,636 403,203
Originated One Year Prior 305,721 58,534
Originated Two Years Prior 47,952 54,485
Originated Three Years Prior 28,177 60,409
Originated Four Years Prior 52,950 95,727
Originated Five or More Years Prior 127,739 86,556
Revolving Loans 550,483 471,588
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 1,414,658 1,230,502
Commercial Portfolio Segment [Member] | Special Mention [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 583 0
Originated Four Years Prior 26 1
Originated Five or More Years Prior 8,551 4,045
Revolving Loans 3,292 4,266
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 12,452 8,312
Commercial Portfolio Segment [Member] | Substandard [Member]    
Originated Current Fiscal Year 7,615 170
Originated One Year Prior 146 0
Originated Two Years Prior 15 1,842
Originated Three Years Prior 1,769 13,298
Originated Four Years Prior 11,214 9,740
Originated Five or More Years Prior 22,596 21,024
Revolving Loans 2,269 14,540
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 45,624 60,614
Commercial Portfolio Segment [Member] | Doubtful [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Commercial Real Estate Portfolio Segment [Member]    
Originated Current Fiscal Year 1,574,791 1,694,066
Originated One Year Prior 1,609,952 542,354
Originated Two Years Prior 382,987 425,001
Originated Three Years Prior 365,104 472,886
Originated Four Years Prior 395,024 502,207
Originated Five or More Years Prior 1,049,043 918,790
Revolving Loans 418,327 186,286
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 5,795,228 4,741,590
Commercial Real Estate Portfolio Segment [Member] | Pass [Member]    
Originated Current Fiscal Year 1,571,751 1,692,098
Originated One Year Prior 1,608,023 533,315
Originated Two Years Prior 382,987 420,995
Originated Three Years Prior 358,578 452,262
Originated Four Years Prior 375,886 497,065
Originated Five or More Years Prior 987,982 842,244
Revolving Loans 401,365 170,721
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 5,686,572 4,608,700
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]    
Originated Current Fiscal Year 3,040 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 5,142
Originated Five or More Years Prior 37,774 50,438
Revolving Loans 8,839 6,601
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 49,653 62,181
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member]    
Originated Current Fiscal Year 0 1,968
Originated One Year Prior 1,929 9,039
Originated Two Years Prior 0 4,006
Originated Three Years Prior 6,526 20,624
Originated Four Years Prior 19,138 0
Originated Five or More Years Prior 23,287 26,108
Revolving Loans 8,123 8,964
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 59,003 70,709
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Commercial Construction Portfolio Segment [Member]    
Originated Current Fiscal Year 8,615 8,018
Originated One Year Prior 7,605 7,370
Originated Two Years Prior 6,720 12,625
Originated Three Years Prior 508 2,600
Originated Four Years Prior 0 2,689
Originated Five or More Years Prior 0 0
Revolving Loans 550,691 506,876
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 574,139 540,178
Commercial Construction Portfolio Segment [Member] | Pass [Member]    
Originated Current Fiscal Year 8,615 8,018
Originated One Year Prior 7,605 7,370
Originated Two Years Prior 6,720 12,625
Originated Three Years Prior 508 2,600
Originated Four Years Prior 0 2,339
Originated Five or More Years Prior 0 0
Revolving Loans 542,460 490,119
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 565,908 523,071
Commercial Construction Portfolio Segment [Member] | Special Mention [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 350
Originated Five or More Years Prior 0 0
Revolving Loans 0 1,443
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 1,793
Commercial Construction Portfolio Segment [Member] | Substandard [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 8,231 15,314
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 8,231 15,314
Commercial Construction Portfolio Segment [Member] | Doubtful [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Residential Portfolio Segment [Member]    
Originated Current Fiscal Year 45,926 27,081
Originated One Year Prior 25,318 29,539
Originated Two Years Prior 24,409 23,611
Originated Three Years Prior 21,557 25,070
Originated Four Years Prior 20,284 28,701
Originated Five or More Years Prior 81,693 73,511
Revolving Loans 45,561 47,756
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 264,748 255,269
Residential Portfolio Segment [Member] | Pass [Member]    
Originated Current Fiscal Year 45,926 27,081
Originated One Year Prior 25,318 29,539
Originated Two Years Prior 24,409 23,611
Originated Three Years Prior 21,557 25,070
Originated Four Years Prior 20,284 28,701
Originated Five or More Years Prior 78,314 66,249
Revolving Loans 41,468 44,221
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 257,276 244,472
Residential Portfolio Segment [Member] | Special Mention [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Residential Portfolio Segment [Member] | Substandard [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 3,379 7,262
Revolving Loans 4,093 3,535
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 7,472 10,797
Residential Portfolio Segment [Member] | Doubtful [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Consumer Portfolio Segment [Member]    
Originated Current Fiscal Year 2,219 1,590
Originated One Year Prior 0 85
Originated Two Years Prior 9 39
Originated Three Years Prior 0 21
Originated Four Years Prior 0 28
Originated Five or More Years Prior 2 0
Revolving Loans 82 123
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 2,312 1,886
Consumer Portfolio Segment [Member] | Pass [Member]    
Originated Current Fiscal Year 2,219 1,590
Originated One Year Prior 0 85
Originated Two Years Prior 9 39
Originated Three Years Prior 0 21
Originated Four Years Prior 0 28
Originated Five or More Years Prior 2 0
Revolving Loans 82 123
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 2,312 1,886
Consumer Portfolio Segment [Member] | Special Mention [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Consumer Portfolio Segment [Member] | Substandard [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Consumer Portfolio Segment [Member] | Doubtful [Member]    
Originated Current Fiscal Year 0 0
Originated One Year Prior 0 0
Originated Two Years Prior 0 0
Originated Three Years Prior 0 0
Originated Four Years Prior 0 0
Originated Five or More Years Prior 0 0
Revolving Loans 0 0
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process $ 0 $ 0
[1] Included in commercial loans as of December 31, 2022 and December 31, 2021 were Paycheck Protection Program (“PPP”) loans of $11.4 million and $93.1 million, respectively. These loans are 100% federally guaranteed and currently not subject to any allocation of allowance for credit losses.
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses - Collateral Dependent Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process $ 8,109,161 $ 6,838,351
Real Estate [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 71,925 83,681
Other Collateral Pledged [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 22,517 26,182
Collateral Pledged [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 94,442 109,863
Commercial Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process [1] 1,472,734 1,299,428
Commercial Portfolio Segment [Member] | Real Estate [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 5,352 6,385
Commercial Portfolio Segment [Member] | Other Collateral Pledged [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 22,517 26,182
Commercial Portfolio Segment [Member] | Collateral Pledged [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 27,869 32,567
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 5,795,228 4,741,590
Commercial Real Estate Portfolio Segment [Member] | Real Estate [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 52,477 55,244
Commercial Real Estate Portfolio Segment [Member] | Other Collateral Pledged [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Commercial Real Estate Portfolio Segment [Member] | Collateral Pledged [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 52,477 55,244
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 574,139 540,178
Commercial Construction Portfolio Segment [Member] | Real Estate [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 8,232 13,196
Commercial Construction Portfolio Segment [Member] | Other Collateral Pledged [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Commercial Construction Portfolio Segment [Member] | Collateral Pledged [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 8,232 13,196
Residential Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 264,748 255,269
Residential Portfolio Segment [Member] | Real Estate [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 5,864 8,856
Residential Portfolio Segment [Member] | Other Collateral Pledged [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Residential Portfolio Segment [Member] | Collateral Pledged [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process $ 5,864 $ 8,856
[1] Included in commercial loans as of December 31, 2022 and December 31, 2021 were Paycheck Protection Program (“PPP”) loans of $11.4 million and $93.1 million, respectively. These loans are 100% federally guaranteed and currently not subject to any allocation of allowance for credit losses.
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses - Analysis of Aging of Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process $ 8,109,161 $ 6,838,351
Nonaccrual 44,454 61,700
Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 1,965 7,364
Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 2,030
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 5,591 13,531
Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 52,010 84,625
Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 8,057,151 6,753,726
Commercial Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process [1] 1,472,734 1,299,428
Nonaccrual 25,257 30,062
Commercial Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 306 4,305
Commercial Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 729
Commercial Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 4,457
Commercial Portfolio Segment [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 25,563 39,553
Commercial Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 1,447,171 1,259,875
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 5,795,228 4,741,590
Nonaccrual 16,817 25,393
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 90 1,622
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 1,009
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 5,591 5,935
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 22,498 33,959
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 5,772,730 4,707,631
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 574,139 540,178
Nonaccrual 0 3,150
Commercial Construction Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Commercial Construction Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Commercial Construction Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Commercial Construction Portfolio Segment [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 3,150
Commercial Construction Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 574,139 537,028
Residential Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 264,748 255,269
Nonaccrual 2,380 3,095
Residential Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 1,569 1,437
Residential Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 292
Residential Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 3,139
Residential Portfolio Segment [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 3,949 7,963
Residential Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 260,799 247,306
Consumer Portfolio Segment [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 2,312 1,886
Nonaccrual 0 0
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Consumer Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Consumer Portfolio Segment [Member] | Financial Asset, Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process 0 0
Consumer Portfolio Segment [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process $ 2,312 $ 1,886
[1] Included in commercial loans as of December 31, 2022 and December 31, 2021 were Paycheck Protection Program (“PPP”) loans of $11.4 million and $93.1 million, respectively. These loans are 100% federally guaranteed and currently not subject to any allocation of allowance for credit losses.
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses - Impairment Evaluation on Loans and Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Individually evaluated $ 8,479 $ 16,217    
Collectively evaluated 77,955 58,358    
Total 90,513 78,773 $ 79,226 $ 38,293
Individually evaluated 91,976 101,949    
Collectively evaluated 8,006,720 6,722,164    
Total 8,109,161 6,838,351    
Financial Asset Acquired with Credit Deterioration [Member]        
Individually evaluated 4,079 4,198    
Individually evaluated 10,465 14,238    
Commercial Portfolio Segment [Member]        
Individually evaluated 7,426 15,131    
Collectively evaluated 19,319 8,561    
Total 28,903 25,969 28,443 8,349
Individually evaluated 30,994 33,726    
Collectively evaluated 1,436,866 1,260,537    
Total [1] 1,472,734 1,299,428    
Commercial Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]        
Individually evaluated 2,158 2,277    
Individually evaluated 4,874 5,165    
Commercial Real Estate Portfolio Segment [Member]        
Individually evaluated 1,003 955    
Collectively evaluated 50,818 42,713    
Total 53,742 45,589 39,330 20,853
Individually evaluated 46,886 49,310    
Collectively evaluated 5,742,751 4,686,346    
Total 5,795,228 4,741,590    
Commercial Real Estate Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]        
Individually evaluated 1,921 1,921    
Individually evaluated 5,591 5,934    
Commercial Construction Portfolio Segment [Member]        
Individually evaluated 0 0    
Collectively evaluated 3,718 3,580    
Total 3,718 3,580 8,194 7,304
Individually evaluated 8,232 13,196    
Collectively evaluated 565,907 526,982    
Total 574,139 540,178    
Commercial Construction Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]        
Individually evaluated 0 0    
Individually evaluated 0 0    
Residential Portfolio Segment [Member]        
Individually evaluated 50 131    
Collectively evaluated 4,093 3,497    
Total 4,143 3,628 2,687 1,685
Individually evaluated 5,864 5,717    
Collectively evaluated 258,884 246,413    
Total 264,748 255,269    
Residential Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]        
Individually evaluated 0 0    
Individually evaluated 0 3,139    
Consumer Portfolio Segment [Member]        
Individually evaluated 0 0    
Collectively evaluated 7 7    
Total 7 7 $ 4 $ 3
Individually evaluated 0 0    
Collectively evaluated 2,312 1,886    
Total 2,312 1,886    
Consumer Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]        
Individually evaluated 0 0    
Individually evaluated $ 0 $ 0    
[1] Included in commercial loans as of December 31, 2022 and December 31, 2021 were Paycheck Protection Program (“PPP”) loans of $11.4 million and $93.1 million, respectively. These loans are 100% federally guaranteed and currently not subject to any allocation of allowance for credit losses.
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses - Activity in the ACL for Loans (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Balance       $ 78,773       $ 79,226 $ 78,773 $ 79,226  
Charge-offs                 (5,443) (2,397) $ (900)
Recoveries                 117 405 833
Provision for credit losses $ 3,300 $ 10,000 $ 3,000 1,450 $ 815 $ 1,100 $ (1,649) (5,766) 17,066 (5,018) 41,000
Balance 90,513       78,773       90,513 78,773 79,226
Balance       78,773       79,226 78,773 79,226 38,293
Balance 90,513       78,773       90,513 78,773 79,226
Cumulative Effect, Period of Adoption, Adjustment [Member]                      
Balance               6,557   6,557  
Balance                     6,557
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]                      
Balance               85,783   85,783  
Balance                     85,783
Commercial Portfolio Segment [Member]                      
Balance       25,969       28,443 25,969 28,443  
Charge-offs                 (2,612) (382) (552)
Recoveries                 54 289 4
Provision for credit losses                 5,492 1,844 20,642
Balance 28,903       25,969       28,903 25,969 28,443
Balance       25,969       28,443 25,969 28,443 8,349
Balance 28,903       25,969       28,903 25,969 28,443
Commercial Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]                      
Balance               (4,225)   (4,225)  
Balance                     (4,225)
Commercial Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]                      
Balance               24,218   24,218  
Balance                     24,218
Commercial Real Estate Portfolio Segment [Member]                      
Balance       45,589       39,330 45,589 39,330  
Charge-offs                 (2,819) (1,780) 0
Recoveries                 0 85 802
Provision for credit losses                 10,972 (1,651) 17,675
Balance 53,742       45,589       53,742 45,589 39,330
Balance       45,589       39,330 45,589 39,330 20,853
Balance 53,742       45,589       53,742 45,589 39,330
Commercial Real Estate Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]                      
Balance               9,605   9,605  
Balance                     9,605
Commercial Real Estate Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]                      
Balance               48,935   48,935  
Balance                     48,935
Commercial Construction Portfolio Segment [Member]                      
Balance       3,580       8,194 3,580 8,194  
Charge-offs                 0 0 0
Recoveries                 0 0 0
Provision for credit losses                 138 (3,653) 890
Balance 3,718       3,580       3,718 3,580 8,194
Balance       3,580       8,194 3,580 8,194 7,304
Balance 3,718       3,580       3,718 3,580 8,194
Commercial Construction Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]                      
Balance               (961)   (961)  
Balance                     (961)
Commercial Construction Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]                      
Balance               7,233   7,233  
Balance                     7,233
Residential Portfolio Segment [Member]                      
Balance       3,628       2,687 3,628 2,687  
Charge-offs                 (9) (235) (341)
Recoveries                 63 20 23
Provision for credit losses                 461 (1,541) 1,320
Balance 4,143       3,628       4,143 3,628 2,687
Balance       3,628       2,687 3,628 2,687 1,685
Balance 4,143       3,628       4,143 3,628 2,687
Residential Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]                      
Balance               2,697   2,697  
Balance                     2,697
Residential Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]                      
Balance               5,384   5,384  
Balance                     5,384
Consumer Portfolio Segment [Member]                      
Balance       7       4 7 4  
Charge-offs                 (3) 0 (7)
Recoveries                 0 11 4
Provision for credit losses                 3 (17) 4
Balance 7       7       7 7 4
Balance       7       4 7 4 3
Balance 7       7       7 7 4
Consumer Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]                      
Balance               9   9  
Balance                     9
Consumer Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]                      
Balance               13   13  
Balance                     13
Unallocated Financing Receivables [Member]                      
Balance       0       568 0 568  
Charge-offs                 0 0 0
Recoveries                 0 0 0
Provision for credit losses                 0 0 469
Balance $ 0       0       0 0 568
Balance       $ 0       568 $ 0 568 99
Balance         $ 0         0 568
Unallocated Financing Receivables [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]                      
Balance               (568)   (568)  
Balance                     (568)
Unallocated Financing Receivables [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]                      
Balance               $ 0   $ 0  
Balance                     $ 0
v3.22.4
Note 4 - Loans and the Allowance for Loan Losses - Loans Modified as TDRs (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Number of loans 8 19 5
Pre-modification outstanding recorded investment $ 13,665 $ 40,310 $ 6,486
Post-modification outstanding recorded investment $ 13,165 $ 40,310 $ 6,486
Commercial Portfolio Segment [Member]      
Number of loans 2 4 1
Pre-modification outstanding recorded investment $ 633 $ 1,276 $ 188
Post-modification outstanding recorded investment $ 633 $ 1,276 $ 188
Commercial Real Estate Portfolio Segment [Member]      
Number of loans 3 11 1
Pre-modification outstanding recorded investment $ 12,083 $ 35,635 $ 93
Post-modification outstanding recorded investment $ 11,583 $ 35,635 $ 93
Residential Portfolio Segment [Member]      
Number of loans 3 3 2
Pre-modification outstanding recorded investment $ 949 $ 1,758 $ 2,184
Post-modification outstanding recorded investment $ 949 $ 1,758 $ 2,184
Commercial Construction Portfolio Segment [Member]      
Number of loans   1 1
Pre-modification outstanding recorded investment   $ 1,641 $ 4,021
Post-modification outstanding recorded investment   $ 1,641 $ 4,021
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses - Rollforward of Allowance for Credit Losses for Unfunded Commitments (Details) - Unfunded Loan Commitment [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Balance as of beginning of period $ 2,351 $ 0
Provision for (reversal of) credit losses - unfunded commitments 684 (482)
Balance as of end of period 3,035 2,351
Cumulative Effect, Period of Adoption, Adjustment [Member]    
Balance as of beginning of period $ 0 2,833
Balance as of end of period   $ 0
v3.22.4
Note 4 - Loans and the Allowance for Credit Losses - Summary of (Reversal of) Provision for Credit Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Provision for (reversal of) credit losses - loans $ 3,300 $ 10,000 $ 3,000 $ 1,450 $ 815 $ 1,100 $ (1,649) $ (5,766) $ 17,066 $ (5,018) $ 41,000
Provision for (reversal of) credit losses                 17,750 (5,500) $ 41,000
Unfunded Loan Commitment [Member]                      
Provision for (reversal of) credit losses - unfunded commitments                 $ 684 $ (482)  
v3.22.4
Note 5 - Premises and Equipment (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Depreciation, Total $ 3,863 $ 3,757 $ 4,244
Finance Lease, Weighted Average Remaining Lease Term (Year) 5 years 10 months 24 days    
Finance Lease, Weighted Average Discount Rate, Percent 6.00%    
Finance Lease, Cost $ 280    
Operating Lease, Liability, Total 11,397 12,417  
Operating Lease, Right-of-Use Asset $ 10,179 $ 11,017  
Operating Lease, Weighted Average Remaining Lease Term (Year) 5 years    
Operating Lease, Weighted Average Discount Rate, Percent 2.80%    
Lease, Cost, Total $ 3,200    
v3.22.4
Note 5 - Premises and Equipment - Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment, Gross $ 66,523 $ 69,221
Less: accumulated depreciation, amortization and fair value adjustments 38,723 40,189
Bank premises and equipment, net 27,800 29,032
Land [Member]    
Property, Plant and Equipment, Gross 6,732 7,232
Building [Member]    
Property, Plant and Equipment, Gross $ 9,797 10,509
Building [Member] | Minimum [Member]    
Estimated useful life (Year) 10 years  
Building [Member] | Maximum [Member]    
Estimated useful life (Year) 25 years  
Furniture and Fixtures [Member]    
Property, Plant and Equipment, Gross $ 24,830 24,137
Furniture and Fixtures [Member] | Minimum [Member]    
Estimated useful life (Year) 3 years  
Furniture and Fixtures [Member] | Maximum [Member]    
Estimated useful life (Year) 7 years  
Leasehold Improvements [Member]    
Property, Plant and Equipment, Gross $ 25,164 $ 27,343
Leasehold Improvements [Member] | Minimum [Member]    
Estimated useful life (Year) 10 years  
Leasehold Improvements [Member] | Maximum [Member]    
Estimated useful life (Year) 20 years  
v3.22.4
Note 5 - Premises and Equipment - Schedule of Capital Lease in Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Finance lease $ 3,423 $ 3,423
Less: accumulated amortization 2,395 2,224
Capital Lease in Premises and Equipment, Net $ 1,028 $ 1,199
v3.22.4
Note 5 - Premises and Equipment - Schedule of Future Minimum Lease Payments for Finance Leases (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
2023, finance lease $ 323
2024, finance lease 353
2025, finance lease 353
2026, finance lease 353
2027, finance lease 353
Thereafter, finance lease 323
Total minimum lease payments 2,058
Less amount representing interest 325
Borrowings [Member]  
Present value of net minimum lease payments $ 1,733
v3.22.4
Note 5 - Premises and Equipment - Schedule of Future Minimum Rental Payments for Operating Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Less than 1 year $ 2,958  
1 year through less than 2 years 2,422  
2 years through less than 3 years 2,139  
3 years through less than 4 years 2,043  
4 years through 5 years 1,391  
After 5 years 1,360  
Total undiscounted cash flows 12,313  
Impact of discounting (916)  
Operating lease liabilities $ 11,397 $ 12,417
v3.22.4
Note 6 - Goodwill and Other Intangible Assets (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Goodwill, Impairment Loss $ 0 $ 0  
Amortization of Intangible Assets $ 1,685 $ 1,981 $ 2,559
v3.22.4
Note 6 - Goodwill and Other Intangible Assets - Schedule of Change in Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Balance $ 208,372 $ 208,372
Acquired goodwill 0 0
Balance $ 208,372 $ 208,372
v3.22.4
Note 6 - Goodwill and Other Intangible Assets - Intangible Assets (Details) - Core Deposits [Member] - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets, Gross $ 18,515 $ 18,515
Finite-Lived Intangible Assets, Accumulated Amortization (11,203) (9,518)
Finite-Lived Intangible Assets, Net $ 7,312 $ 8,997
v3.22.4
Note 6 - Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
2023 $ 1,438
2024 1,235
2025 1,116
2026 1,050
2027 $ 989
v3.22.4
Note 7 - Deposits (Details Textual) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Time Deposits, Total $ 2,394,190 $ 1,200,000
Deposits Received for Securities Loaned, at Carrying Value 934,900 215,200
Time Deposit Liability, above US Insurance Limit, Total $ 591,800 $ 250,500
v3.22.4
Note 7 - Deposits - Schedule of Time Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
2023, Time deposit maturities $ 1,571,746  
2024, Time deposit maturities 502,172  
2025, Time deposit maturities 112,106  
2026, Time deposit maturities 169,440  
2027, Time deposit maturities 40,179  
Time Deposits (before net discount) 2,395,643  
Fair value net discount (1,453)  
Total Time Deposits (after net discount) $ 2,394,190 $ 1,200,000
v3.22.4
Note 8 - FHLB Borrowings (Details Textual)
$ in Millions
Dec. 31, 2022
USD ($)
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged $ 2,700.0
Federal Home Loan Bank, Advances, General Debt Obligations, Amount of Available, Unused Funds $ 498.9
v3.22.4
Note 8 - FHLB Borrowings - FHLB Borrowings and Weighted Average Interest Rates (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Less than 1 year, amount $ 830,000 $ 390,549
Less than 1 year, rate 4.42% 0.56%
1 year through less than 2 years, amount $ 0 $ 50,000
1 year through less than 2 years, rate 0.00% 1.84%
2 years through less than 3 years, amount $ 25,000 $ 0
2 years through less than 3 years, rate 1.00%  
3 years through less than 4 years, amount $ 2,050 $ 25,000
3 years through less than 4 years, rate 2.23% 1.00%
4 years through 5 years, amount $ 326 $ 2,050
4 years through 5 years, rate 2.85% 2.23%
After 5 years, amount $ 326 $ 714
After 5 years, rate 2.96% 2.91%
FHLB borrowings - (before discount) $ 857,702 $ 468,313
FHLB borrowings - (before discount), rate 4.32% 0.73%
Fair value discount $ (80) $ (120)
FHLB borrowings (after discount) $ 857,622 $ 468,193
v3.22.4
Note 9 - Subordinated Debentures (Details Textual) - Subordinated Debt [Member] - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Jun. 10, 2020
Jan. 11, 2018
Dec. 31, 2003
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Jun. 30, 2015
Dec. 19, 2003
The 2020 Notes [Member]                
Debt Instrument, Face Amount $ 75.0              
Debt Instrument, Interest Rate, Stated Percentage 5.75%              
The Notes [Member]                
Debt Instrument, Face Amount   $ 75.0            
The 2015 Notes [Member]                
Debt Instrument, Face Amount             $ 50.0  
Debt Instrument, Interest Rate During Period           4.16%    
London Interbank Offered Rate (LIBOR) [Member] | The Notes [Member]                
Debt Instrument, Basis Spread on Variable Rate   2.84%            
London Interbank Offered Rate (LIBOR) [Member] | The 2015 Notes [Member]                
Debt Instrument, Basis Spread on Variable Rate         3.93%      
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | The 2020 Notes [Member]                
Debt Instrument, Basis Spread on Variable Rate 5.605%              
Center Bancorp Statutory Trust II [Member]                
Debt Instrument, Face Amount       $ 5,000.0       $ 5.0
Proceeds from Issuance of Debt     $ 5.2          
Debt Instrument, Basis Spread on Variable Rate       2.85%        
Debt Instrument, Interest Rate, Effective Percentage       7.26%        
Center Bancorp Statutory Trust II [Member] | London Interbank Offered Rate (LIBOR) [Member]                
Debt Instrument, Basis Spread on Variable Rate     2.85%          
v3.22.4
Note 9 - Subordinated Debentures - Summary of Mandatory Redeemable Trust Preferred Securities (Details) - Subordinated Debt [Member] - Center Bancorp Statutory Trust II [Member] - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 19, 2003
Securities issued $ 5,000 $ 5
Liquidation value (in dollars per share) $ 1,000  
Coupon rate 2.85%  
Maturity Jan. 23, 2034  
Redeemable by issuer beginning Jan. 23, 2009  
v3.22.4
Note 10 - Income Taxes (Details Textual)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Unrecognized Tax Benefits, Ending Balance $ 0
Domestic Tax Authority [Member]  
Open Tax Year 2019
State and Local Jurisdiction [Member]  
Open Tax Year 2018 2019 2020 2021 2022
Operating Loss Carryforwards $ 1,700
v3.22.4
Note 10 - Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current:                      
Federal, current                 $ 33,169 $ 32,364 $ 19,590
State, current                 13,247 12,325 7,006
Subtotal, current                 46,416 44,689 26,596
Deferred:                      
Federal, deferred                 (3,353) (110) (3,881)
State, deferred                 2,950 126 (3,614)
Subtotal, deferred                 (403) 16 (7,495)
Income tax expense $ 12,348 $ 10,425 $ 11,889 $ 11,351 $ 12,301 $ 10,881 $ 10,652 $ 10,871 $ 46,013 $ 44,705 $ 19,101
v3.22.4
Note 10 - Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income before income tax expense $ 44,905 $ 39,340 $ 44,247 $ 42,732 $ 45,339 $ 42,978 $ 42,871 $ 43,870 $ 171,224 $ 175,058 $ 90,390
Federal statutory rate                 21.00% 21.00% 21.00%
Computed “expected” Federal income tax expense                 $ 35,957 $ 36,762 $ 18,982
State tax, net of federal tax benefit                 13,314 9,127 1,913
162M adjustment                 777 0 0
Bank owned life insurance                 (1,175) (1,001) (1,052)
Tax-exempt interest and dividends                 (1,969) (1,405) (1,491)
Tax benefits from stock-based compensation                 (417) (261) 157
Other, net                 (474) 1,483 592
Income tax expense $ 12,348 $ 10,425 $ 11,889 $ 11,351 $ 12,301 $ 10,881 $ 10,652 $ 10,871 $ 46,013 $ 44,705 $ 19,101
v3.22.4
Note 10 - Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Deferred tax assets    
Allowance for credit losses $ 26,901 $ 23,955
Depreciation 0 205
Pension actuarial losses 1,269 1,301
New Jersey net operating loss 156 3,609
Deferred compensation 3,784 2,786
Unrealized losses on available-for-sale securities 25,141 191
Deferred loan costs, net of fees 2,664 2,163
Finance lease 212 222
Nonaccrual interest 168 62
Operating lease liability 3,424 3,747
Other 4,172 3,703
Total deferred tax assets 67,891 41,944
Deferred tax liabilities    
Employee benefit plans (2,452) (2,289)
Purchase accounting (1,458) (925)
Depreciation (381) 0
Prepaid expenses (1,011) (288)
Market discount accretion 0 (437)
Unrealized gains on swaps (13,704) (941)
Right of use asset (3,059) (3,325)
Other (1,681) (1,984)
Total deferred tax liabilities (23,746) (10,189)
Net deferred tax assets $ 44,145 $ 31,755
v3.22.4
Note 11 - Preferred Stock (Details Textual)
$ / shares in Thousands
 12 Months Ended
Aug. 19, 2021
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
USD ($)
shares
Stock Issued During Period, Shares, New Issues (in shares) | shares   153 4,981 1,340
Stock Issued During Period, Value, New Issues   $ 0 $ 0 $ 0
Preferred Stock, No Par Value (in dollars per share) | $ / shares   $ 0 $ 0  
Proceeds from Issuance of Preferred Stock and Preference Stock   $ 0 $ 110,927,000 $ 0
Series A Preferred Stock [Member]        
Preferred Stock, Dividend Rate, Percentage 5.25%      
Preferred Stock, No Par Value (in dollars per share) | $ / shares $ 0      
Preferred Stock, Liquidation Preference, Value $ 1,000      
Series A Preferred Stock [Member] | Underwritten Public Offering [Member]        
Stock Issued During Period, Shares, New Issues (in shares) | shares 115,000      
Stock Issued During Period, Value, New Issues $ 115,000,000      
Depositary Shares, Interest in Preferred Stock 0.025      
Proceeds from Issuance of Preferred Stock and Preference Stock $ 110,900,000      
v3.22.4
Note 12 - Commitments, Contingencies and Concentrations of Credit Risk - Summary of Off-balance Sheet Risk (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Off-balance sheet risk $ 1,171,526 $ 1,241,868
Commitments to Extend Credit [Member]    
Off-balance sheet risk 662,515 647,971
Home Equity Line of Credit [Member]    
Off-balance sheet risk 54,302 53,180
Outstanding Commercial Mortgage Loan Commitments [Member]    
Off-balance sheet risk 433,034 514,473
Standby Letters of Credit [Member]    
Off-balance sheet risk 20,770 25,271
Overdraft Protection Lines [Member]    
Off-balance sheet risk $ 905 $ 973
v3.22.4
Note 13 - Transactions with Executive Officers, Directors, and Principle Stockholders (Details Textual) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Principal Officers, Directors, and Their Affiliates [Member] | Deposits [Member]    
Related Party Transaction, Amounts of Transaction $ 49.7 $ 59.5
v3.22.4
Note 13 - Transactions with Executive Officers, Directors, and Principle Stockholders - Schedule of Related Party Transactions (Details) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Balance, January 1 $ 17,616 $ 21,534
New loans 1,200 5,250
Repayments (2,550) (9,168)
Balance, December 31 $ 16,266 $ 17,616
v3.22.4
Note 14 - Stockholders' Equity and Regulatory Requirements (Details Textual)
Dec. 31, 2022
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets, Percentage 3.16%
Total Risk Based Capital Ratio 2.52%
v3.22.4
Note 14 - Stockholders' Equity and Regulatory Requirements - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Union Center National Bank [Member]    
Leverage (Tier 1) capital $ 996,013 $ 891,730
Leverage (Tier 1) capital, ratio 0.1064 0.1143
Leverage (Tier 1) capital, capital adequacy $ 374,553 $ 312,166
Leverage (Tier 1) capital, capital adequacy, ratio 0.0400 0.0400
Leverage (Tier 1) capital, well capitalized $ 468,191 $ 390,207
Leverage (Tier 1) capital, well capitalized, ratio 0.0500 0.0500
CET one risk based capital $ 996,013 $ 891,730
CET one risk based capital, ratio 0.1160 0.1196
CET one risk based capital, capital adequacy $ 386,289 $ 335,641
CET one risk based capital, capital adequacy, ratio 0.0450 0.0450
CET one risk based capital, well capitalized $ 557,972 $ 484,815
CET one risk based capital, well capitalized, ratio 0.0650 0.0650
Tier 1, risk based capital $ 996,013 $ 891,730
Tier 1, risk based capital, ratio 0.1160 0.1196
Tier 1, risk based capital, capital adequacy $ 515,051 $ 447,522
Tier 1, risk based capital, capital adequacy, ratio 0.0600 0.0600
Tier 1, risk based capital, well capitalized $ 686,735 $ 596,696
Tier 1, risk based capital, well capitalized, ratio 0.0800 0.0800
Total capital $ 1,117,733 $ 1,002,753
Total capital, ratio 0.1302 0.1344
Total capital, capital adequacy $ 686,735 $ 596,696
Total capital, capital adequacy, ratio 0.0800 0.0800
Total capital, well capitalized $ 858,419 $ 745,869
Total capital, well capitalized, ratio 0.1000 0.1000
Parent Company [Member]    
Leverage (Tier 1) capital $ 1,000,577 $ 909,577
Leverage (Tier 1) capital, ratio 0.1068 0.1165
Leverage (Tier 1) capital, capital adequacy $ 374,729 $ 312,194
Leverage (Tier 1) capital, capital adequacy, ratio 0.0400 0.0400
CET one risk based capital $ 884,495 $ 793,495
CET one risk based capital, ratio 0.1030 0.1064
CET one risk based capital, capital adequacy $ 386,295 $ 335,648
CET one risk based capital, capital adequacy, ratio 0.0450 0.0450
Tier 1, risk based capital $ 1,000,577 $ 909,577
Tier 1, risk based capital, ratio 0.1166 0.1219
Tier 1, risk based capital, capital adequacy $ 515,061 $ 447,531
Tier 1, risk based capital, capital adequacy, ratio 0.0600 0.0600
Total capital $ 1,240,047 $ 1,138,350
Total capital, ratio 0.1445 0.1526
Total capital, capital adequacy $ 686,748 $ 596,708
Total capital, capital adequacy, ratio 0.0800 0.0800
v3.22.4
Note 15 - Comprehensive Income - Reclassification out of Accumulated Other Comprehensive (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net gains on sale of securities available-for-sale                 $ 0 $ 195 $ 29
Income tax benefit $ 12,348 $ 10,425 $ 11,889 $ 11,351 $ 12,301 $ 10,881 $ 10,652 $ 10,871 46,013 44,705 19,101
Net income 32,557 28,915 32,358 31,381 33,038 32,097 32,219 32,999 125,211 130,353 71,289
Net interest income (expense) on swaps $ 34,460 $ 18,819 $ 9,765 $ 8,583 $ 8,579 $ 8,781 $ 10,042 $ 11,458 71,627 38,860 70,209
Salaries and employee benefits                 81,289 64,341 58,877
Reclassification out of Accumulated Other Comprehensive Income [Member]                      
Net income                 2,221 (1,413) (1,328)
Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member]                      
Net gains on sale of securities available-for-sale                 0 195 29
Income tax benefit                 0 (48) (6)
Net income                 0 147 23
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]                      
Income tax benefit                 (976) 528 443
Net income                 2,267 (1,345) (1,134)
Net interest income (expense) on swaps                 3,243 (1,873) (1,577)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]                      
Income tax benefit                 20 84 84
Net income                 (46) (215) (217)
Salaries and employee benefits                 $ (66) $ (299) $ (301)
v3.22.4
Note 15 - Comprehensive Income - Accumulated Other Comprehensive (Loss) (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Balance $ 1,178,751 $ 1,124,212 $ 915,310 $ 731,190
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member]        
Balance (61,775) (484)    
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]        
Balance 32,360 2,406    
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]        
Balance (2,949) (3,326)    
AOCI Attributable to Parent [Member]        
Balance $ (32,364) $ (1,404) $ 2,797 $ (1,147)
v3.22.4
Note 16 - Pension and Other Benefits (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2018
Dec. 31, 2014
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax $ 331 $ 0 $ (81)    
The 401(k) Plan [Member]          
Defined Contribution Plan, Employer Matching Contribution, Percent of Match       100.00% 50.00%
Defined Benefit Plan, Plan Assets, Contributions by Employer 2,200 1,600 1,600    
Pension Plan [Member]          
Defined Benefit Plan, Accumulated Benefit Obligation 9,300 14,600      
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax 300        
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year 0        
Supplemental Employee Retirement Plan [Member]          
Pension Cost (Reversal of Cost) $ 1,400 $ 1,000 $ 400    
v3.22.4
Note 16 - Pension and Other Benefits - Schedule of Changes in Projected Benefit Obligations (Details) - Pension Plan [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Projected benefit obligation $ 14,644 $ 13,476  
Interest cost 311 284 $ 364
Actuarial (gain) loss (4,657) 1,584  
Benefits paid (981) (700)  
Projected benefit obligation 9,317 14,644 13,476
Fair value of plan assets 17,604 15,868  
Actual return on plan assets (3,366) 2,436  
Benefits paid (981) (700)  
Fair value of plan assets 13,257 17,604 $ 15,868
Funded status $ 3,940 $ 2,960  
v3.22.4
Note 16 - Pension and Other Benefits - Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Pension Plan [Member]    
Net actuarial loss recognized in accumulated other comprehensive income (pre-tax) $ 4,219 $ 4,627
v3.22.4
Note 16 - Pension and Other Benefits - Schedule of Net Benefit Costs (Details) - Pension Plan [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Interest cost $ 311 $ 284 $ 364
Expected return on plan assets (949) (852) (784)
Net amortization 66 299 301
Total net periodic pension income (572) (269) (119)
Total unrealized (gain) loss recognized in other comprehensive income (343) 0 112
Realized losses included in net income (66) (299) (301)
Total recognized in net periodic pension income and other comprehensive income $ (981) $ (568) $ (308)
v3.22.4
Note 16 - Pension and Other Benefits - Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets (Details) - Pension Plan [Member]
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Discount rate 4.92% 2.57%  
Discount rate 4.92% 2.57% 2.17%
Expected long-term return on plan assets 6.50% 5.50% 5.50%
v3.22.4
Note 16 - Pension and Other Benefits - Schedule of Allocation of Plan Assets (Details) - Pension Plan [Member]
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Target Allocation 100.00%    
Actual Allocation 100.00% 100.00%  
Expected long-term return on plan assets 6.50% 5.50% 5.50%
Defined Benefit Plan, Equity Securities, US [Member]      
Target Allocation 45.00%    
Actual Allocation 58.00% 59.00%  
Expected long-term return on plan assets 4.50%    
Defined Benefit Plan, Equity Securities, Non-US [Member]      
Target Allocation 15.00%    
Actual Allocation 4.00% 5.00%  
Expected long-term return on plan assets 0.40%    
Debt And/Or Fixed Income Securities [Member]      
Target Allocation 38.00%    
Actual Allocation 35.00% 34.00%  
Expected long-term return on plan assets 1.50%    
Cash and Other Alternative Investments [Member]      
Target Allocation 2.00%    
Actual Allocation 3.00% 2.00%  
Expected long-term return on plan assets 0.10%    
v3.22.4
Note 16 - Pension and Other Benefits - Schedule of Changes in Fair Value of Plan Assets (Details) - Pension Plan [Member] - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Fair value $ 13,257 $ 17,604 $ 15,868
Fair Value, Inputs, Level 1 [Member]      
Fair value 13,257 17,604  
Fair Value, Inputs, Level 2 [Member]      
Fair value 0 0  
Fair Value, Inputs, Level 3 [Member]      
Fair value 0 0  
Defined Benefit Plan, Cash [Member]      
Fair value 262 178  
Defined Benefit Plan, Cash [Member] | Fair Value, Inputs, Level 1 [Member]      
Fair value 262 178  
Defined Benefit Plan, Cash [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair value 0 0  
Defined Benefit Plan, Cash [Member] | Fair Value, Inputs, Level 3 [Member]      
Fair value 0 0  
Defined Benefit Plan, Equity Securities, US [Member]      
Fair value 7,611 10,551  
Defined Benefit Plan, Equity Securities, US [Member] | Fair Value, Inputs, Level 1 [Member]      
Fair value 7,611 10,551  
Defined Benefit Plan, Equity Securities, US [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair value 0 0  
Defined Benefit Plan, Equity Securities, US [Member] | Fair Value, Inputs, Level 3 [Member]      
Fair value 0 0  
Defined Benefit Plan, Equity Securities, Non-US [Member]      
Fair value 569 897  
Defined Benefit Plan, Equity Securities, Non-US [Member] | Fair Value, Inputs, Level 1 [Member]      
Fair value 569 897  
Defined Benefit Plan, Equity Securities, Non-US [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair value 0 0  
Defined Benefit Plan, Equity Securities, Non-US [Member] | Fair Value, Inputs, Level 3 [Member]      
Fair value 0 0  
Cash and Other Alternative Investments [Member]      
Fair value 4,684 5,804  
Cash and Other Alternative Investments [Member] | Fair Value, Inputs, Level 1 [Member]      
Fair value 4,684 5,804  
Cash and Other Alternative Investments [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair value 0 0  
Cash and Other Alternative Investments [Member] | Fair Value, Inputs, Level 3 [Member]      
Fair value 0 0  
Commodity Funds [Member]      
Fair value 95 111  
Commodity Funds [Member] | Fair Value, Inputs, Level 1 [Member]      
Fair value 95 111  
Commodity Funds [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair value 0 0  
Commodity Funds [Member] | Fair Value, Inputs, Level 3 [Member]      
Fair value 0 0  
Defined Benefit Plan, Real Estate [Member]      
Fair value 36 63  
Defined Benefit Plan, Real Estate [Member] | Fair Value, Inputs, Level 1 [Member]      
Fair value 36 63  
Defined Benefit Plan, Real Estate [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair value 0 0  
Defined Benefit Plan, Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]      
Fair value $ 0 $ 0  
v3.22.4
Note 16 - Pension and Other Benefits - Schedule of Defined Benefit Plans Disclosures (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
2023 $ 738
2024 726
2025 724
2026 728
2027 770
2027-2031 $ 3,744
v3.22.4
Note 17 - Stock-based Compensation (Details Textual) - USD ($)
$ in Millions
 12 Months Ended
May 23, 2017
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-Based Payment Arrangement, Expense   $ 4.9 $ 4.5 $ 2.9
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture, Total (in shares)     14,711 16,541
Performance Shares [Member]        
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total   $ 1.2    
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)   1 year 8 months 12 days    
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Expected toVested (in shares)   195,265    
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Expected to Vest, Performance Obligations Exceeded (in shares)   221,541    
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)   49,604    
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation (in shares)   27,254    
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture, Total (in shares)   22,350 34,458 22,402
Restricted Stock [Member]        
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total   $ 0.8    
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)   1 year 1 month 6 days    
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)   49,931    
Restricted Stock Units (RSUs) [Member]        
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total   $ 1.5    
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)   1 year 6 months    
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)   69,225    
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation (in shares)   37,842    
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture, Total (in shares)   31,383    
The 2017 Equity Compensation Plan [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) 750,000      
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)   201,715    
The 2017 Equity Compensation Plan [Member] | Restricted Stock, Options and Restricted Stock Units [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) 3 years      
The 2017 Equity Compensation Plan [Member] | Restricted Stock, Options and Restricted Stock Units [Member] | Vesting Each Year [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage 33.33%      
The 2017 Equity Compensation Plan [Member] | Share-Based Payment Arrangement, Option [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year) 10 years      
The 2017 Equity Compensation Plan [Member] | Performance Shares [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) 3 years      
v3.22.4
Note 17 - Stock-based Compensation - Activity in Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Outstanding, number of stock options (in shares) 23,766    
Outstanding, weighted-average exercise price (in dollars per share) $ 9.94    
Granted, number of stock options (in shares) 0    
Granted, weighted-average exercise price (in dollars per share) $ 0    
Exercised, number of stock options (in shares) (15,086) (14,247) (35,413)
Exercised, weighted-average exercise price (in dollars per share) $ 8.21    
Forfeited/cancelled/expired, number of stock options (in shares) 0    
Forfeited/cancelled/expired, weighted-average exercise price (in dollars per share) $ 0    
Outstanding, number of stock options (in shares) 8,680 23,766  
Outstanding, weighted-average exercise price (in dollars per share) $ 12.95 $ 9.94  
Outstanding, weighted average remaining contractual term (Year) 3 months 14 days    
Outstanding, aggregate intrinsic value $ 97,673    
Exercisable, number of stock options (in shares) 8,680    
Exercisable, weighted-average exercise price (in dollars per share) $ 12.95    
Exercisable, aggregate intrinsic value $ 0    
v3.22.4
Note 17 - Share-based Compensation - Activity in Restricted Shares (Details) - Restricted Stock [Member]
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
Nonvested, shares (in shares) | shares 82,693
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares $ 21.78
Granted, shares (in shares) | shares 53,543
Granted, weighted average grant date fair value (in dollars per share) | $ / shares $ 30.76
Vested, shares (in shares) | shares (49,931)
Vested, weighted average grant date fair value (in dollars per share) | $ / shares $ 23.74
Forfeited/cancelled/expired, shares (in shares) | shares (374)
Forfeited/cancelled/expired, weighted average grant date fair value (in dollars per share) | $ / shares $ 30.99
Nonvested, shares (in shares) | shares 85,931
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares $ 26.20
v3.22.4
Note 17 - Stock-based Compensation - Summary of Unearned Performance Unit Awards (Details) - Performance Shares [Member]
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
Nonvested, shares (in shares) 209,995
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares $ 16.18
Awarded, units (in shares) 34,874
Awarded, weighted average grant date fair value (in dollars per share) | $ / shares $ 32.80
Vested shares, units (in shares) (49,604)
Vested shares, weighted average grant date fair value (in dollars per share) | $ / shares $ 20.79
Nonvested, shares (in shares) 195,265
Unearned, units (maximum) (in shares) 221,541
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares $ 17.98
v3.22.4
Note 17 - Stock-based Compensation - Summary of Unearned Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member]
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
Nonvested, shares (in shares) | shares 136,948
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares $ 16.52
Awarded, units (in shares) | shares 52,312
Awarded, weighted average grant date fair value (in dollars per share) | $ / shares $ 32.80
Vested shares, units (in shares) | shares (69,225)
Vested shares, weighted average grant date fair value (in dollars per share) | $ / shares $ 16.13
Nonvested, shares (in shares) | shares 120,035
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares $ 23.84
v3.22.4
Note 18 - Dividends and Other Restrictions (Details Textual)
$ in Millions
Dec. 31, 2022
USD ($)
Amount Available for Dividend Distribution without Affecting Capital Adequacy Requirements $ 259.3
v3.22.4
Note 19 - Derivatives (Details Textual)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Nov. 30, 2022
USD ($)
Oct. 01, 2022
USD ($)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax $ 46,181 $ 3,593 $ (3,423)    
AOCI Attributable to Parent [Member]          
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax $ 0 0      
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]          
Derivative, Number of Instruments Held, Total 11        
Derivative Liability, Notional Amount $ 500,000        
Interest Expense, Federal Home Loan Bank and Federal Reserve Bank Advances, Long-Term $ 1,000 $ 1,900 $ 1,600    
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Minimum [Member]          
Derivative, Maturity Date Dec. 31, 2025        
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Maximum [Member]          
Derivative, Maturity Date Mar. 31, 2028        
Commenced Fixed Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Minimum [Member]          
Derivative, Fixed Interest Rate 0.63%        
Commenced Fixed Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Maximum [Member]          
Derivative, Fixed Interest Rate 3.41%        
Interest Rate Cap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]          
Derivative Liability, Notional Amount       $ 75,000 $ 150,000
v3.22.4
Note 19 - Derivatives - Net Losses Recorded in Other Comprehensive Income (Details) - Interest Rate Swap [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Derivative, amount of gain (loss) recognized in OCI $ 46,282 $ 3,593
Derivative, amount of gain (loss) reclassified from OCI to interest income (3,343) 1,873
Derivative, Amount of gain recognized in other Noninterest income $ 0 $ 0
v3.22.4
Note 19 - Derivatives - Cash Flow Hedges Included in Consolidated Statements of Condition (Details) - Interest Rate Swap [Member] - Cash Flow Hedging [Member] - Designated as Hedging Instrument [Member] - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Derivative, notional amount $ 950,000 $ 475,000
Derivative, fair value $ 56,797 $ 3,347
v3.22.4
Note 20 - Fair Value Measurements and Fair Value of Financial Instruments (Details Textual) - Collateral Pledged [Member] - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Impaired Financing Receivable, with Related Allowance, Recorded Investment $ 43.8 $ 54.1
Impaired Financing Receivable, Related Allowance $ 10.5 $ 17.8
v3.22.4
Note 20 - Fair Value Measurements and Fair Value of Financial Instruments - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Securities available-for-sale $ 634,884 $ 534,507
Fair Value, Recurring [Member]    
Securities available-for-sale 634,884 534,507
Equity securities 15,811 13,794
Derivatives - interest rate contracts 56,797 3,347
Total assets 707,492 551,648
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 242 195
Equity securities 9,733 11,081
Derivatives - interest rate contracts 0 0
Total assets 9,975 11,276
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 627,293 525,747
Equity securities 6,078 2,713
Derivatives - interest rate contracts 56,797 3,347
Total assets 690,168 531,807
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 7,349 8,565
Equity securities 0 0
Derivatives - interest rate contracts 0 0
Total assets 7,349 8,565
US Government Agencies Debt Securities [Member]    
Securities available-for-sale 44,450 50,360
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 44,450 50,360
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 44,450 50,360
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 0 0
Residential Mortgage-Backed Securities [Member]    
Securities available-for-sale 417,578 316,095
Residential Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 417,578 316,095
Residential Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
Residential Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 417,578 316,095
Residential Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 0 0
Commercial Mortgage-Backed Securities [Member]    
Securities available-for-sale 21,104 10,469
Commercial Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 21,104 10,469
Commercial Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
Commercial Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 21,104 10,469
Commercial Mortgage-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 0 0
US States and Political Subdivisions Debt Securities [Member]    
Securities available-for-sale 142,896 145,625
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 142,896 145,625
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 135,547 137,060
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 7,349 8,565
Corporate Debt Securities [Member]    
Securities available-for-sale 6,974 9,049
Corporate Debt Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 6,974 9,049
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 6,974 9,049
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 0 0
Asset-Backed Securities [Member]    
Securities available-for-sale 1,640 2,564
Asset-Backed Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 1,640 2,564
Asset-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
Asset-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 1,640 2,564
Asset-Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 0 0
Certificates of Deposit [Member]    
Securities available-for-sale   150
Certificates of Deposit [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 0 150
Certificates of Deposit [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 0 0
Certificates of Deposit [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 0 150
Certificates of Deposit [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale 0 0
Other Debt Obligations [Member]    
Securities available-for-sale 242 195
Other Debt Obligations [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 242 195
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Securities available-for-sale 242 195
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Securities available-for-sale 0 0
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Securities available-for-sale $ 0 $ 0
v3.22.4
Note 20 - Fair Value Measurements and Fair Value of Financial Instruments - Assets Measured on a Nonrecurring Basis (Details) - Fair Value, Nonrecurring [Member] - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Commercial Portfolio Segment [Member]    
Collateral dependent loans $ 14,550 $ 13,399
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member]    
Collateral dependent loans 0 0
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member]    
Collateral dependent loans 0 0
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member]    
Collateral dependent loans 14,550 13,399
Commercial Real Estate Portfolio Segment [Member]    
Collateral dependent loans 17,264 20,185
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member]    
Collateral dependent loans 0 0
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member]    
Collateral dependent loans 0 0
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member]    
Collateral dependent loans 17,264 20,185
Residential Portfolio Segment [Member]    
Collateral dependent loans 1,392 2,794
Residential Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member]    
Collateral dependent loans 0 0
Residential Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member]    
Collateral dependent loans 0 0
Residential Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member]    
Collateral dependent loans $ 1,392 $ 2,794
v3.22.4
Note 20 - Fair Value Measurements and Fair Value of Financial Instruments - Assets Measured on Recurring Basis Using Significant Unobservable Inputs (Details) - US States and Political Subdivisions Debt Securities [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Beginning balance, January 1, 2022 $ 8,565 $ 8,844
Principal paydowns (287) (279)
Changes in unrealized gain (loss) (929)  
Ending balance, December 31, 2022 $ 7,349 $ 8,565
v3.22.4
Note 20 - Fair Value Measurements and Fair Value of Financial Instruments - Quantitative Information About Significant Unobservable Inputs (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Securities available-for-sale $ 634,884 $ 534,507
Fair Value, Recurring [Member]    
Securities available-for-sale 634,884 534,507
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 7,349 8,565
US States and Political Subdivisions Debt Securities [Member]    
Securities available-for-sale 142,896 145,625
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale 142,896 145,625
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]    
Securities available-for-sale $ 7,349 $ 8,565
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member]    
Securities available-for-sale, rate 0.043 0.029
v3.22.4
Note 20 - Fair Value Measurements and Fair Value of Financial Instruments - Significant Unobservable Inputs for Assets Measured on Nonrecurring Basis (Details) - Fair Value, Nonrecurring [Member]
$ in Thousands
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Commercial Portfolio Segment [Member]    
Collateral dependent loans, fair value $ 14,550 $ 13,399
Commercial Real Estate Portfolio Segment [Member]    
Collateral dependent loans, fair value 17,264 20,185
Residential Portfolio Segment [Member]    
Collateral dependent loans, fair value 1,392 2,794
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member]    
Collateral dependent loans, fair value 14,550 13,399
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Average Transfer Price as Price to Unpaid Principal Balance [Member]    
Collateral dependent loans, fair value $ 14,028 $ 12,193
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Average Transfer Price as Price to Unpaid Principal Balance [Member] | Minimum [Member]    
Collateral dependent loans, rate 0.65 0.48
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Average Transfer Price as Price to Unpaid Principal Balance [Member] | Maximum [Member]    
Collateral dependent loans, rate 0.96 0.73
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Average Transfer Price as Price to Unpaid Principal Balance [Member] | Weighted Average [Member]    
Collateral dependent loans, rate 0.67 0.49
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, fair value $ 522 $ 1,206
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Minimum [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, rate 0.10 0.10
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Maximum [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, rate 0.13 0.35
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Weighted Average [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, rate 0.03 0.06
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member]    
Collateral dependent loans, fair value $ 17,264 $ 20,185
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, fair value $ 17,264 $ 20,185
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Minimum [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, rate 0.20 0.20
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Maximum [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, rate 0 0.15
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Weighted Average [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, rate 0.15 0.06
Fair Value, Inputs, Level 3 [Member] | Residential Portfolio Segment [Member]    
Collateral dependent loans, fair value $ 1,392 $ 2,794
Fair Value, Inputs, Level 3 [Member] | Residential Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, fair value $ 1,392 $ 2,794
Fair Value, Inputs, Level 3 [Member] | Residential Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Minimum [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, rate 0.21 0.15
Fair Value, Inputs, Level 3 [Member] | Residential Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Maximum [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, rate 0.39 0.39
Fair Value, Inputs, Level 3 [Member] | Residential Portfolio Segment [Member] | Measurement Input, Comparability Adjustment [Member] | Weighted Average [Member] | Appraisals of Collateral Value [Member]    
Collateral dependent loans, rate 0.22 0.05
v3.22.4
Note 20 - Fair Value Measurements and Fair Value of Financial Instruments - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Securities available-for-sale $ 634,884 $ 534,507
Reported Value Measurement [Member]    
Cash and due from banks 268,315 265,536
Securities available-for-sale 634,884 534,507
Restricted investment in bank stocks 46,604 27,826
Equity securities 15,811 13,794
Net loans 8,009,176 6,749,849
Derivatives - interest rate contracts 56,797 3,347
Accrued interest receivable 46,062 34,152
Noninterest-bearing deposits 1,501,614 1,617,049
Interest-bearing deposits 5,855,008 4,715,904
Borrowings 857,622 468,193
Subordinated debentures 153,255 152,951
Accrued interest payable 6,925 2,716
Estimate of Fair Value Measurement [Member]    
Cash and due from banks 268,315 265,536
Securities available-for-sale 634,884 534,507
Equity securities 15,811 13,794
Net loans 7,723,378 6,800,287
Derivatives - interest rate contracts 56,797 3,347
Accrued interest receivable 46,062 34,152
Noninterest-bearing deposits 1,501,614 1,617,049
Interest-bearing deposits 5,811,291 4,716,358
Borrowings 854,698 469,671
Subordinated debentures 153,581 163,995
Accrued interest payable 6,925 2,716
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]    
Cash and due from banks 268,315 265,536
Securities available-for-sale 242 195
Equity securities 9,733 11,081
Net loans 0 0
Derivatives - interest rate contracts 0 0
Accrued interest receivable 0 0
Noninterest-bearing deposits 1,501,614 1,617,049
Interest-bearing deposits 3,460,818 3,565,795
Borrowings 0 0
Subordinated debentures 0 0
Accrued interest payable 0 0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]    
Cash and due from banks 0 0
Securities available-for-sale 627,293 525,747
Equity securities 6,078 2,713
Net loans 0 0
Derivatives - interest rate contracts 56,797 3,347
Accrued interest receivable 4,685 1,554
Noninterest-bearing deposits 0 0
Interest-bearing deposits 2,350,473 1,150,563
Borrowings 854,698 469,671
Subordinated debentures 153,581 163,995
Accrued interest payable 6,925 2,716
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]    
Cash and due from banks 0 0
Securities available-for-sale 7,349 8,565
Equity securities 0 0
Net loans 7,723,378 6,800,287
Derivatives - interest rate contracts 0 0
Accrued interest receivable 41,377 32,598
Noninterest-bearing deposits 0 0
Interest-bearing deposits 0 0
Borrowings 0 0
Subordinated debentures 0 0
Accrued interest payable $ 0 $ 0
v3.22.4
Note 21 - Parent Corporation Only Financial Statements - Condensed Balance Sheet (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
ASSETS        
Cash and due from banks $ 61,629 $ 54,352    
Investment securities 634,884 534,507    
Equity securities 15,811 13,794    
Other assets 125,069 50,417    
Total assets 9,644,948 8,129,480    
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Other liabilities 87,301 38,754    
Subordinated debentures, net of debt issuance costs 153,255 152,951    
Balance 1,178,751 1,124,212 $ 915,310 $ 731,190
Total liabilities and stockholders’ equity 9,644,948 8,129,480    
Parent Company [Member]        
ASSETS        
Cash and due from banks 117,162 133,648    
Investment in subsidiaries 1,179,342 1,111,520    
Investment securities 32,405 32,405    
Equity securities 4,218 725    
Other assets 699 699    
Total assets 1,333,826 1,278,997    
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Other liabilities 1,820 1,834    
Subordinated debentures, net of debt issuance costs 153,255 152,951    
Balance 1,178,751 1,124,212    
Total liabilities and stockholders’ equity $ 1,333,826 $ 1,278,997    
v3.22.4
Note 21 - Parent Corporation Only Financial Statements - Condensed Income Statement (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dividends                 $ 1,655 $ 971 $ 1,642
Net income $ 32,557 $ 28,915 $ 32,358 $ 31,381 $ 33,038 $ 32,097 $ 32,219 $ 32,999 125,211 130,353 71,289
Preferred dividends 1,510 1,509 1,509 1,509 1,717 0 0 0 6,037 1,717 0
Net income available to common stockholders $ 31,047 $ 27,406 $ 30,849 $ 29,872 $ 31,321 $ 32,097 $ 32,219 $ 32,999 119,174 128,636 71,289
Parent Company [Member]                      
Dividends                 36,475 24,071 15,200
Other income                 1,638 1,627 1,683
Total Income                 38,113 25,698 16,883
Expenses                 (8,928) (8,741) (9,263)
Income before equity in undistributed earnings of subsidiaries                 29,185 16,957 7,620
Equity in undistributed earnings of subsidiaries                 96,026 113,396 63,669
Net income                 125,211 130,353 71,289
Preferred dividends                 6,037 1,717 0
Net income available to common stockholders                 $ 119,174 $ 128,636 $ 71,289
v3.22.4
Note 21 - Parent Corporation Only Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net income $ 32,557 $ 28,915 $ 32,358 $ 31,381 $ 33,038 $ 32,097 $ 32,219 $ 32,999 $ 125,211 $ 130,353 $ 71,289
Loss on equity securities, net                 1,521 373 (202)
Amortization of subordinated debt issuance costs                 304 303 323
Decrease (increase) in other assets                 (12,413) 46,086 (22,498)
Decrease in other liabilities                 48,322 10,526 (4,174)
Net cash provided by (used in) operating activities                 176,777 202,273 81,125
Net cash used in investing activities                 (1,543,232) (689,860) (323,365)
Cash dividends paid on preferred stock                 (6,037) (1,717) 0
Cash dividends paid on common stock                 (23,428) (17,493) (14,317)
Proceeds from preferred stock offering                 0 110,927 0
Proceeds from exercise of stock options                 124 106 233
Net cash (used in) provided by financing activities                 1,369,234 449,367 344,513
Decrease (increase) in cash and cash equivalents                 2,779 (38,220) 102,273
Cash and cash equivalents at beginning of period       265,536       303,756 265,536 303,756 201,483
Cash and cash equivalents at end of period 268,315       265,536       268,315 265,536 303,756
Parent Company [Member]                      
Net income                 125,211 130,353 71,289
Equity in undistributed earnings of subsidiary                 (96,026) (113,396) (63,669)
Loss on equity securities, net                 45 55 0
Amortization of subordinated debt issuance costs                 304 303 323
Decrease (increase) in other assets                 0 50,590 (50,001)
Decrease in other liabilities                 (14) (287) (391)
Net cash provided by (used in) operating activities                 29,520 67,618 (42,449)
Sale of equity securities                 (3,538) (780) 0
Repayment of short-term borrowing                 0 0 (3,000)
Net cash used in investing activities                 (3,538) (780) (3,000)
Proceeds from (repayment of) proceeds from subordinated debt                 0 (50,000) 73,440
Cash dividends paid on preferred stock                 (6,037) (1,717) 0
Cash dividends paid on common stock                 (23,428) (17,493) (14,317)
Purchase of treasury stock                 (13,127) (9,401) (911)
Proceeds from preferred stock offering                 0 110,927 0
Proceeds from exercise of stock options                 124 106 233
Net cash (used in) provided by financing activities                 (42,468) 32,422 58,445
Decrease (increase) in cash and cash equivalents                 (16,486) 99,260 12,996
Cash and cash equivalents at beginning of period       $ 133,648       $ 34,388 133,648 34,388 21,392
Cash and cash equivalents at end of period $ 117,162       $ 133,648       $ 117,162 $ 133,648 $ 34,388
v3.22.4
Note 22 - Quarterly Financial Information of ConnectOne Bancorp, Inc. (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Total interest income $ 112,469 $ 96,980 $ 85,356 $ 78,941 $ 79,040 $ 77,026 $ 73,051 $ 72,621 $ 373,746 $ 301,738 $ 308,200
Total interest expense 34,460 18,819 9,765 8,583 8,579 8,781 10,042 11,458 71,627 38,860 70,209
Net interest income 78,009 78,161 75,591 70,358 70,461 68,245 63,009 61,163 302,119 262,878 237,991
Provision for credit losses 3,300 10,000 3,000 1,450 815 1,100 (1,649) (5,766) 17,066 (5,018) 41,000
Total other income 3,508 3,322 3,359 3,054 3,777 4,016 4,472 3,426      
Other expenses 33,312 32,143 31,703 29,230 28,084 28,183 26,259 26,485      
Income before income tax expense 44,905 39,340 44,247 42,732 45,339 42,978 42,871 43,870 171,224 175,058 90,390
Income tax expense 12,348 10,425 11,889 11,351 12,301 10,881 10,652 10,871 46,013 44,705 19,101
Net income 32,557 28,915 32,358 31,381 33,038 32,097 32,219 32,999 125,211 130,353 71,289
Preferred dividends 1,510 1,509 1,509 1,509 1,717 0 0 0 6,037 1,717 0
Net income available to common stockholders $ 31,047 $ 27,406 $ 30,849 $ 29,872 $ 31,321 $ 32,097 $ 32,219 $ 32,999 $ 119,174 $ 128,636 $ 71,289
Basic (in dollars per share) $ 0.79 $ 0.70 $ 0.78 $ 0.76 $ 0.79 $ 0.81 $ 0.81 $ 0.83 $ 3.03 $ 3.24 $ 1.80
Diluted (in dollars per share) $ 0.79 $ 0.70 $ 0.78 $ 0.75 $ 0.79 $ 0.80 $ 0.81 $ 0.82 $ 3.01 $ 3.22 $ 1.79