CONNECTONE BANCORP, INC., 10-K filed on 2/28/2019
Annual Report
v3.10.0.1
Document And Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2018
Feb. 27, 2019
Jun. 30, 2018
Document and Entity Information [Abstract]      
Entity Registrant Name ConnectOne Bancorp, Inc.    
Entity Central Index Key 0000712771    
Document Type 10-K    
Document Period End Date Dec. 31, 2018    
Document Fiscal Period Focus FY    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2018    
Amendment Flag false    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Shell Company false    
Entity Emerging Growth Company false    
Entity Public Float     $ 737.9
Entity Common Stock, Shares Outstanding   35,425,481  
v3.10.0.1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
ASSETS    
Cash and due from banks $ 39,161 $ 52,565
Interest-bearing deposits with banks 133,205 97,017
Cash and cash equivalents 172,366 149,582
Securities available-for-sale 412,034 435,284
Equity securities 11,460
Loans held-for-sale 24,845
Loans receivable 4,541,092 4,171,456
Less: Allowance for loan losses 34,954 31,748
Net loans receivable 4,506,138 [1] 4,139,708
Investment in restricted stock, at cost 31,136 33,497
Bank premises and equipment, net 19,062 21,659
Accrued interest receivable 18,214 15,470
Bank owned life insurance 113,820 111,311
Other real estate owned 538
Goodwill 145,909 145,909
Core deposit intangibles 1,737 2,364
Other assets 30,216 28,275
Total assets 5,462,092 5,108,442
Deposits:    
Noninterest-bearing 768,584 776,843
Interest-bearing 3,323,508 3,018,285
Total deposits 4,092,092 3,795,128
Borrowings 600,001 670,077
Subordinated debentures 128,556 54,699
Accounts payable and accrued liabilities 27,516 23,101
Total liabilities 4,848,165 4,543,005
STOCKHOLDERS' EQUITY    
Preferred Stock: Authorized 5,000,000 shares
Common stock, no par value: Authorized 50,000,000 shares; issued 34,392,464 shares at December 31, 2018 and 34,135,782 shares at December 31, 2017; outstanding 32,328,542 shares at December 31, 2018 and 32,071,860 at December 31, 2017 412,546 412,546
Additional paid-in capital 15,542 13,602
Retained earnings 211,345 160,025
Treasury stock, at cost (2,063,922 shares at December 31, 2018 and December 31, 2017) (16,717) (16,717)
Accumulated other comprehensive loss (8,789) (4,019)
Total stockholders' equity 613,927 565,437
Total liabilities and stockholders' equity $ 5,462,092 $ 5,108,442
[1] ASU 2016-01 requires the use of an exit price in fair value disclosures. Historically (prior to January 1, 2018) the Company used an entry price in the estimate of fair value loans.
v3.10.0.1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Statement of Financial Position [Abstract]    
Held-to-maturity, fair value (in Dollars) $ 11,460  
Preferred stock, shares authorized 5,000,000 5,000,000
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 34,392,464 34,135,782
Common stock, shares outstanding 32,328,542 32,071,860
Treasury Stock, Shares 2,063,922 2,063,922
v3.10.0.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Interest income:      
Interest and fees on loans $ 201,524 $ 168,824 $ 147,982
Interest and dividends on investment securities:      
Taxable 8,482 6,799 7,266
Nontaxable 3,276 3,569 3,827
Dividends 2,012 1,421 1,410
Interest on federal funds sold and other short-term investments 839 711 756
Total interest income 216,133 181,324 161,241
Interest expense:      
Deposits 39,936 23,670 18,667
Borrowings 18,982 12,585 12,429
Total interest expense 58,918 36,255 31,096
Net interest income 157,215 145,069 130,145
Provision for loan losses 21,100 6,000 38,700
Net interest income after provision for loan losses 136,115 139,069 91,445
Noninterest income:      
Annuity and insurance commissions [1] 39 [1],[2] 191
Income on bank owned life insurance 3,094 [1] 3,181 [1],[2] 2,559
Net gains on sale of loans held-for-sale 61 [1] 708 [1],[2] 232
Deposit, loan and other income 2,584 2,680 2,704
Net gains on sale of investment securities [1] 1,596 [1],[2] 4,234
Total noninterest income 5,739 8,204 [2] 9,920
Noninterest expense:      
Salaries and employee benefits 39,556 34,878 30,726
Occupancy and equipment 8,312 8,163 8,571
FDIC insurance 3,115 3,485 2,940
Professional and consulting 3,568 2,863 2,979
Marketing and advertising 980 996 1,040
Data processing 4,421 4,543 4,141
Merger expenses 1,335
Amortization of core deposit intangible 627 724 820
Other components of net periodic pension expense 28 250 304
Increase in valuation allowance, loans held-for-sale 15,592
Other expenses 8,778 7,265 6,986
Total noninterest expenses 70,720 78,759 58,507
Income before income tax expense 71,134 68,514 42,858
Income tax expense 10,782 25,294 11,776
Net income 60,352 43,220 31,082
Less: Preferred stock dividends 22
Net income available to common stockholders $ 60,352 $ 43,220 $ 31,060
Earnings per common share:      
Basic $ 1.87 $ 1.35 $ 1.02
Diluted 1.86 1.34 1.01
Dividends per common share $ 0.30 $ 0.30 $ 0.30
[1] Not within scope of ASC 606.
[2] The Company elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation.
v3.10.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Statement of Comprehensive Income [Abstract]      
Net income $ 60,352 $ 43,220 $ 31,082
Unrealized gains and losses:      
Unrealized holding losses on available-for-sale securities arising during the period (6,444) (1,350) (5,624)
Tax effect 1,638 532 2,142
Net of tax (4,806) (818) (3,482)
Unrealized gains on securities transferred from held-to-maturity to available-for-sale during the period 10,069
Tax effect (3,815)
Net of tax 6,254
Reclassification adjustment for realized gains included in net income (1,596) (4,234)
Tax effect 579 1,682
Net of tax (1,017) (2,552)
Amortization of unrealized net losses on held-to-maturity securities transferred from available-for-sale securities 1,986
Tax effect (813)
Net of tax 1,173
Unrealized gains on cash flow hedges 361 710 219
Tax effect (98) (290) (90)
Net of tax 263 420 129
Unrealized pension plan (losses) gains:      
Unrealized pension plan gains (losses) before reclassifications 236 (2) (2)
Tax effect (67) 1 1
Net of tax 169 (1) (1)
Reclassification adjustment for realized losses included in net income 359 412 407
Tax effect (101) (169) (165)
Net of tax 258 243 242
Total other comprehensive income (loss) (4,116) (1,173) 1,763
Total comprehensive income $ 56,236 $ 42,047 $ 32,845
v3.10.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive Income (Loss)
Total
Balance at Dec. 31, 2015 $ 11,250 $ 374,287 $ 8,527 $ 104,606 $ (16,717) $ (4,609) $ 477,344
Net income 31,082 31,082
Other comprehensive loss, net of taxes 1,763 1,763
Dividends on series B preferred stock (22) (22)
Cash dividends declared on common stock ($0.30 per share) (9,204) (9,204)
Redemption of preferred stock (11,250) (11,250)
Exercise of stock options (136,429, 66,389 and 189,992) shares) 767 767
Secondary offering of common stock, net of costs of $1,811 (1,659,794 shares) 38,439 38,439
Restricted stock, net of forfeitures (70,019, 57,164 and 24,018 shares)
Stock-based compensation expense 2,113 2,113
Balance at Dec. 31, 2016 412,726 11,407 126,462 (16,717) (2,846) 531,032
Net income 43,220 43,220
Other comprehensive loss, net of taxes (1,173) (1,173)
Cash dividends declared on common stock ($0.30 per share) (9,657) (9,657)
Issuance costs of common stock (180) (180)
Exercise of stock options (136,429, 66,389 and 189,992) shares) 417 417
Restricted stock, net of forfeitures (70,019, 57,164 and 24,018 shares)
Stock-based compensation expense 1,778 1,778
Balance at Dec. 31, 2017 412,546 13,602 160,025 (16,717) (4,019) 565,437
Reclassification of stranded tax effects (ASU 2018-02) (see Note 17) 709 709
Cumulative effect of adopting ASU 2016-01 (see Note 17) (55) 55
Net income 60,352 60,352
Other comprehensive loss, net of taxes (4,116) (4,116)
Cash dividends declared on common stock ($0.30 per share) (9,686) (9,686)
Exercise of stock options (136,429, 66,389 and 189,992) shares) 875 875
Restricted stock, net of forfeitures (70,019, 57,164 and 24,018 shares)
Net shares issued in satisfaction of performance units earned, (42,672 shares) (819) (819)
Stock-based compensation expense $ 1,884 $ 1,884
Balance at Dec. 31, 2018 $ 412,546 $ 15,542 $ 211,345 $ (16,717) $ (8,789) $ 613,927
v3.10.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Statement of Stockholders' Equity [Abstract]      
Cash dividends declared on common stock (in Dollars per share) $ 0.30 $ 0.30 $ 0.30
Issuance of restricted stock awards, shares 24,018 57,164 70,019
Exercise of stock options, shares 189,992 66,389 136,429
Secondary offering of common stock, shares     1,659,794
Offering costs for common shares     $ 1,811
Net performance units issued 42,672    
v3.10.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities      
Net income $ 60,352 $ 43,220 $ 31,082
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:      
Depreciation and amortization of premises and equipment 3,062 3,151 2,704
Provision for loan losses 21,100 6,000 38,700
Increase to valuation allowance, loans held-for-sale 15,592
Amortization of intangibles 627 724 820
Net accretion of loans (1,127) (2,073) (4,280)
Accretion on bank premises (67) (74) (132)
Accretion on deposits (57) (31) (172)
Accretion on borrowings (76) (203) (307)
Net deferred income tax expense 926 3,699 1,969
Stock-based compensation 1,884 1,778 2,113
Gains on sales of investment securities, net [1] (1,596) [1],[2] (4,234)
Change in fair value of equity securities, net 267
Gains on sale of loans held-for-sale, net (61) (708) (232)
Loans originated for resale (4,121) (9,083) (10,004)
Proceeds from sale of loans held-for-sale 4,552 63,731 10,048
Net loss (gain) on disposition of premises and equipment 26 (8) (57)
Net loss (gain) on sale of other real estate owned 192 82 (182)
Increase in cash surrender value of bank owned life insurance (3,094) (2,952) (2,559)
Amortization of premiums and accretion of discounts on investments securities, net 3,233 2,631 1,692
Amortization of subordinated debt issuance costs 332 165 191
Increase in accrued interest receivable (2,744) (2,505) (420)
(Increase) Decrease in other assets (1,134) 5,706 (15,006)
Increase (Decrease) in other liabilities 4,988 3,887 (2,022)
Net cash provided by operating activities 89,060 131,133 49,712
Investment securities available-for-sale:      
Purchases (140,013) (224,621) (165,527)
Sales 29,543 85,253
Maturities, calls and principal repayments 141,859 109,104 137,587
Investment securities held-to-maturity:      
Purchases (1,000)
Maturities and principal repayments   14,757
Net redemptions (purchases) of restricted investment in bank stocks 2,361 (9,187) 8,302
Loans held-for-sale payments 159 3,122
Net increase in loans (362,625) (714,159) (490,777)
Purchases of premises and equipment (2,051) (2,661) (2,702)
Purchases of bank owned life insurance (10,000) (16,999)
Proceeds from sale of premises and equipment 1,627 8 445
Proceeds from life insurance death benefits 585
Proceeds from sale of other real estate owned 884 1,124 2,992
Net cash used in investing activities (357,214) (817,727) (427,669)
Cash flows from financing activities      
Net increase in deposits 297,021 450,888 553,477
Increase in subordinated debt 73,525
Advances of FHLB borrowings 1,733,000 1,280,000 375,000
Repayments of FHLB borrowings (1,803,000) (1,071,000) (570,000)
Repayment of repurchase agreement (15,000)
Cash dividends paid on common stock (9,664) (9,612) (9,067)
Cash dividends paid on preferred stock (22)
Redemption of preferred stock (11,250)
Issuance cost of common stock (180)
Secondary offering of common stock 38,439
Tax benefit of options exercised 264 117
Proceeds from exercise of stock options 875 417 767
Net shares issued in satisfaction of performance units earned (819)
Net cash provided by financing activities 290,938 635,777 377,461
Net change in cash and cash equivalents 22,784 (50,817) (496)
Cash and cash equivalents at beginning of period 149,582 200,399 200,895
Cash and cash equivalents at end of period 172,366 149,582 200,399
Cash payments for:      
Interest paid 55,662 36,721 30,862
Income taxes paid 9,092 16,205 22,945
Investing:      
Transfer of loans to other real estate owned 538 1,118 887
Transfer of loan held-for-sale to loans held-for-investment 45,552 54,422
Transfer of loans held-for-investment to loans held-for-sale 21,236 73,916 77,817
Transfer from investment securities held-to-maturity to investment securities available-for-sale $ 209,855
[1] Not within scope of ASC 606.
[2] The Company elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation.
v3.10.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2018
Disclosure Text Block [Abstract]  
Summary of Significant Accounting Policies

Note 1 - Summary of Significant Accounting Policies

 

Business

 

ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of the State of New Jersey and is a registered bank holding company. 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), and NJCB Spec-1, LLC (a New Jersey limited liability 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-nine 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 Financial Statement Presentation

 

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.

 

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles.

 

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.

 

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 customer loan and deposit transactions, interest-bearing deposits in other financial institutions, and federal funds purchased and repurchase agreements.

 

Investment Securities

 

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 are 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 should be considered when determining whether a debt security is other-than-temporarily impaired. For debt securities, management must assess 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 are 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 is 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 is recognized through earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized through other comprehensive income.

 

Equity Securities

 

The Company’s equity securities are recorded at fair value, with unrealized gains and losses included in earnings beginning January 1, 2018 after adoption of Accounting Standards Update No. 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. Prior to January 1, 2018, unrealized gains and losses on equity securities were excluded from earnings and reported in other comprehensive income (loss), net of tax. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific-identification method.

 

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, 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, and an allowance for loan 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 is both well-secured and in the process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans 90 days or greater past due and still accruing include both smaller balance homogeneous loans that are collectively evaluated for impairment and loans individually evaluated for impairment.

 

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 its New Jersey and New York market area. 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 loan 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 Loan Losses

 

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired.

 

A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans for which the terms have been modified as a concession to the borrower due to the borrower experiencing financial difficulties are considered troubled debt restructurings (“TDR”) and are classified as impaired. The impairment of a loan can be measured at (1) the fair value of the collateral less costs to sell, if the loan is collateral dependent, (2) at the value of expected future cash flows using the loan’s effective interest rate, or (3) at the loan’s observable market price. Generally, the Bank measures impairment of such loans by reference to the fair value of the collateral less costs to sell.

 

Loans of $250,000 and over are individually evaluated for impairment. If a loan that is identified as impaired and the individual test results in an impairment, a portion of the allowance is allocated so that the loan is reported, net, at the fair value of collateral less costs to sell if repayment is expected solely from the collateral or at the present value of estimated future cash flows using the loan’s existing rate if the loan is dependent on cash flow. Loans with balances less than $250,000 are collectively evaluated for impairment, and accordingly, are not separately identified for impairment disclosures.

 

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

 

Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

 

The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience, the primary factor, is determined by loan segment and is based on the actual loss history experienced by the Bank over an actual three year rolling calculation. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. This actual loss experience is supplemented with the exogenous factor adjustments based on the risks present for each loan category. These exogenous factors (nine total) include consideration of the following: concentrations of credit; delinquency & nonaccrual trends; economic & business conditions including evaluation of the national and regional economies and industries with significant loan concentrations; external factors including legal, regulatory or competitive pressures that may impact the loan portfolio; changes in the experience, ability, or size of the lending staff, management, or board of directors that may impact the loan portfolio; changes in underwriting standards, collection procedures, charge-off practices, or other changes in lending policies and procedures that may impact the loan portfolio; loss and recovery trends; changes in portfolio size and mix; and trends in problem loans.

 

Purchased Credit-Impaired Loans

 

The Company acquires groups of loans in conjunction with mergers, some of which have shown evidence of credit deterioration since origination. These purchased credit-impaired loans are recorded at their estimated fair value, such that there is no carryover of the seller’s allowance for loan losses.  After acquisition, losses are recognized by an increase in the allowance for loan losses.

 

Such purchased credit-impaired loans (“PCI”) are identified on an individual basis. The Company estimates the amount and timing of expected cash flows for each loan and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

 

A PCI loan may be resolved either through a sale of the loan, by working with the customer and obtaining partial or full repayment, by short sale of the collateral, or by foreclosure. A gain or loss on resolution would be recognized based on the difference between the proceeds received and the carrying amount of the loan.

 

PCI loans that met the criteria for nonaccrual may be considered performing, regardless of whether the customer 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 records cash flow hedges at the inception of the derivative contract based on the Company’s intentions and belief as to likely effectiveness as a hedge. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income.

 

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.

 

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. A Black-Scholes model is used to estimate the fair value of stock options while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. See Note 19 of the Notes to Consolidated Financial Statements for a further discussion.

 

Treasury Stock

 

Subject to 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 years ended December 31, 2018, 2017 and 2016, the Parent Corporation did not purchase any of its shares.

 

 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 for the years ended December 31, 2018, 2017 and 2016.

 

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 2017 and 2016 to conform to the classifications presented in 2018. Such reclassifications had no impact on net income or stockholders’ equity.
v3.10.0.1
Authoritative Accounting Guidance
 12 Months Ended
Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]  
Authoritative Accounting Guidance

Note 2 –Authoritative Accounting Guidance

Adoption of New Accounting Standards

Effective January 1, 2018, the Company implemented ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. The guidance also resulted in separate classification of equity securities previously included in available-for-sale securities on the consolidated statements of condition with changes in the fair value of the equity securities now being captured in the Consolidated Statement of Income. As a result, the Company recorded a cumulative-effect adjustment to the Consolidated Statement of Condition. See Note 17 - Comprehensive Income for further information. See Note 1 for the Company’s accounting policy on Equity Securities. Adoption of the standard also resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the Consolidated Statements of Condition. See Note 22 for further information regarding the valuation of these loans.

Effective January 1, 2018, the Company implemented ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” Under ASU 2018-02, the FASB amended existing guidance to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from The Tax Cuts and Jobs Act of 2017. Please see Note 17 for further information.

Effective January 1, 2018, the Company implemented ASU 2017-07, “Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under ASU 2017-07, the FASB requires employers to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. See Note 18 for further information.

Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, "ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. Please see Note 25 for further information.

Newly Issued, But Not Yet Effective Accounting Standards

ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Assets Measured at Amortized Cost.” (modified by ASU 2018-19 – Codification Improvements to Topic 326, Financial Instruments – Credit Losses). ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates and affects loans, debt securities, trade receivables, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has formed a CECL committee which has assessed our data and system needs. The Company has engaged a third-party vendors to assist in analyzing our data and developing a CECL model. The Company, in conjunction with these vendors, has researched and analyzed modeling standards, loan segmentation, as well as potential external inputs to supplement our historical loss history. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the ASU is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the ASU on our consolidated financial statements.

ASU No. 2016-02, “Leases (Topic 842)” (modified by ASU 2018-01 – Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842) and ASU 2018-20 – Leases (Topic 842) Narrow – Scope Improvements for Lessors). ASU 206-02 requires the recognition of a right of use asset and related lease liability by lessees for leases classified as operating leases under current GAAP. Topic 842, which replaces the current guidance under Topic 840, retains a distinction between finance leases and operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee also will not significantly change from current GAAP. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. Topic 842 will be effective for the Company for reporting periods beginning January 1, 2019, with early adoption permitted. The Company must apply a modified retrospective transition approach for the applicable leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company has engaged a third-party vendor and is using their software to assist in calculating the impact of this ASU. The adoption of ASU 2016-02 will result in increases to both the Company's assets and liabilities. The increase is less than 1% of total assets as of December 31, 2018 and will not have a significant impact on the Company’s Consolidated Statement of Income or Consolidated Statement of Cash Flows.

ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU No. 2017-12 refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. ASU 2017-12 will be effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. We adopted the standard on January 1, 2019 and the impact was not material to our consolidated financial statements.

ASU No. 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” ASU No. 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. We are currently evaluating this ASU to determine the impact on our consolidated financial statements.

ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. ASU 2018-15 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements.

 

ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements.

 

ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in this update modify disclosure requirements on fair value measurements by removing, modifying and adding certain disclosure requirements. The amendments primarily pertain to Level 3 fair value measurements and depending on the amendment are applied either prospectively or retrospectively. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements.

 

ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350).” ASU 2017-04 aims to simplify the subsequent measurement of goodwill. Under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets and still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019. Although management continues to evaluate the potential impact of ASU 2017-04 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact on our consolidated financial statements.
v3.10.0.1
Earnings per Common Share
 12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Earnings per Common Share

Note 3.  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, 
   2018   2017   2016 
   (in thousands, except per share amounts) 
Net income available to common stockholders  $60,352   $43,220   $31,060 
Earnings allocated to participating securities   (139)    (141)    (147) 
Income attributable to common stock  $60,213   $43,079   $30,913 
Weighted average common shares outstanding, including participating securities   32,198    31,943    30,453 
Weighted average participating securities   (74)    (41)    (54) 
Weighted average common shares outstanding   32,124    31,902    30,399 
Incremental shares from assumed conversions of options, performance units and restricted shares   233    335    291 
Weighted average common and equivalent shares outstanding   32,357    32,237    30,690 
Earnings per common share:               
Basic  $1.87   $1.35   $1.02 
Diluted   1.86    1.34    1.01 

 

There were no antidilutive common share equivalents as of December 31, 2018, 2017 and 2016.
v3.10.0.1
Investment Securities
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

Note 4 - Investment Securities

 

The Company’s investment securities are classified as available-for-sale at December 31, 2018 and December 31, 2017. 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, 2018 and December 31, 2017. 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 22 of the Notes to Consolidated Financial Statements for a further discussion.

 

Transfers of debt securities from the held-to-maturity category to the available-for-sale category are made at fair value at the date of transfer.  For transfers from the available-for-sale category to the held-to maturity category the unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income, a component of stockholders’ equity and in the carrying value of the held-to-maturity investment security. Unrealized holding gains or losses that remain in accumulated other comprehensive income are amortized or accreted out of other comprehensive income with an offsetting entry to interest income as a yield adjustment through earnings over the remaining terms of the securities. For transfers from the held-to-maturity category to the available-for-sale category unrealized holding gain or loss at the date of the transfer shall be recognized in accumulated other comprehensive income, net of tax.

 

The following tables present information related to the Company’s portfolio of securities available-for-sale at December 31, 2018 and 2017.

 

   Amortized
Cost		   Gross
Unrealized
Gains		   Gross
Unrealized
Losses		   Fair
Value		 
   (dollars in thousands) 
December 31, 2018                    
Investment securities available-for-sale                    
Federal agency obligations  $45,509   $51   $(605)   $44,955 
Residential mortgage pass-through securities   189,721    85    (4,602)    185,204 
Commercial mortgage pass-through securities   3,919    -    (45)    3,874 
Obligations of U.S. states and political subdivisions   141,496    1,091    (3,402)    139,185 
Trust preferred securities   -    -    -    - 
Corporate bonds and notes   26,308    45    (540)    25,813 
Asset-backed securities   9,685    22    (16)    9,691 
Certificates of deposit   319    3    -    322 
Other securities   2,990    -    -    2,990 
Total securities available-for-sale  $419,947   $1,297   $(9,210)   $412,034 

 

   Amortized
Cost		   Gross
Unrealized
Gains		   Gross
Unrealized
Losses		   Fair
Value		 
December 31, 2017  (dollars in thousands) 
Investment securities available-for-sale                    
Federal agency obligations  $56,297   $141   $(416)   $56,022 
Residential mortgage pass-through securities   183,509    330    (1,948)    181,891 
Commercial mortgage pass-through securities   4,054    3    (3)    4,054 
Obligations of U.S. states and political subdivisions   130,723    1,739    (1,334)    131,128 
Trust preferred securities   4,577    205    (111)    4,671 
Corporate bonds and notes   29,801    163    (271)    29,693 
Asset-backed securities   12,021    66    (37)    12,050 
Certificates of deposit   621    4    -    625 
Equity securities   11,843    235    (350)    11,728 
Other securities   3,422    -    -    3,422 
Total securities available-for-sale  $436,868   $2,886   $(4,470)   $435,284 

 

Investment securities having a carrying value of approximately $151.5 million and $157.8 million at December 31, 2018 and December 31, 2017, respectively, were pledged to secure public deposits, borrowings, repurchase agreements, Federal Reserve Discount Window borrowings and Federal Home Loan Bank advances and for other purposes required or permitted by law. As of December 31, 2018 and December 31, 2017, 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 investments in securities available-for-sale at December 31, 2018, 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, 2018 
   Amortized
Cost		   Fair
Value		 
   (dollars in thousands) 
Investment Securities Available-for-Sale:          
Due in one year or less  $2,355   $2,358 
Due after one year through five years   36,338    35,953 
Due after five years through ten years   28,067    28,375 
Due after ten years   156,557    153,280 
Residential mortgage pass-through securities   189,721    185,204 
Commercial mortgage pass-through securities   3,919    3,874 
Other securities   2,990    2,990 
Total securities available-for-sale  $419,947   $412,034 

 

Gross gains and losses from the sales, calls, and maturities of investment securities for the years ended December 31, 2018, 2017 and 2016 were as follows:

 

   Years Ended December 31, 
   2018   2017   2016 
   (dollars in thousands) 
Proceeds  $-   $29,543   $85,253 
                
Gross gains on sales of investment securities  $-   $1,596   $4,234 
Gross losses on sales of investment securities   -    -    - 
Net gains on sales of investment securities   -    1,596    4,234 
Tax provision on net gains   -    (579)    (1,682) 
Net gains on sales of investment securities, after tax  $-   $1,017   $2,552 

 

Other-than-Temporarily Impaired Investments

 

The Company reviews all securities for potential recognition of other-than-temporary impairment. The Company maintains a watch list for the identification and monitoring of securities experiencing problems that require a heightened level of review. This could include credit rating downgrades.

 

The Company’s assessment of whether an impairment in the portfolio is other-than temporary includes factors such as whether the issuer has defaulted on scheduled payments, announced a restructuring and/or filed for bankruptcy, has disclosed severe liquidity problems that cannot be resolved, disclosed deteriorating financial condition or sustained significant losses.

 

Temporarily Impaired Investments

 

The Company does not believe that any of the unrealized losses, which were comprised of 148 and 112 investment securities as of December 31, 2018 and December 31, 2017, respectively, represent an other-than-temporary impairment. The gross unrealized losses associated with U.S. Treasury and agency securities, federal agency obligations, mortgage-backed securities, corporate bonds, obligations of U.S. states and political subdivisions, and asset-backed securities, are not considered to be other-than-temporary because management believes these unrealized losses are related to changes in interest rates and do not affect the expected cash flows of the underlying collateral or issuer.

 

Factors which may contribute to unrealized losses include credit risk, market risk, changes in interest rates, economic cycles, and liquidity risk. The magnitude of any unrealized loss may be affected by the relative concentration of the Company’s investment in any one issuer or industry. The Company has established policies to reduce exposure through diversification of the investment portfolio including limits on concentrations to any one issuer. The Company believes the investment portfolio is prudently diversified.

 

The unrealized losses included in the tables below are primarily related to changes in interest rates and credit spreads. All of the Company’s investment securities are performing and are expected to continue to perform in accordance with their respective contractual terms and conditions. These are largely intermediate duration holdings and, in certain cases, monthly principal payments can further reduce loss exposure resulting from an increase in rates.

 

The Company evaluates all securities with unrealized losses quarterly to determine whether the loss is other-than-temporary. Unrealized losses in the corporate debt securities category consist primarily of senior unsecured corporate debt securities issued by large financial institutions, insurance companies and other corporate issuers, none of which have defaulted on interest payments. The decline in fair value is due in large part to changes in market credit spreads and movements in market interest rates. Management concluded that these securities were not other-than-temporarily impaired at December 31, 2018.

 

In determining whether or not securities are OTTI, the Company must exercise considerable judgment. Accordingly, there can be no assurance that the actual results will not differ from the Company’s judgments and that such differences may not require the future recognition of other-than-temporary impairment charges that could have a material effect on the Company’s financial position and results of operations. In addition, the value of, and the realization of any loss on, an investment security is subject to numerous risks as cited above.

 

The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position at December 31, 2018 and 2017. There were no investments held-to-maturity as of December 31, 2018 and 2017.

 

   December 31, 2018  
   Total   Less than 12 Months   12 Months or Longer 
   Fair
Value		   Unrealized
Losses		   Fair
Value		   Unrealized
Losses		   Fair
Value		   Unrealized
Losses		 
   (dollars in thousands)
Investment Securities Available-for-Sale:                              
Federal agency obligation  $35,472   $(605)   $810   $(1)   $34,662   $(604) 
Residential mortgage pass-through securities   178,365    (4,602)    42,040    (393)    136,325    (4,209) 
Commercial mortgage pass-through securities   3,874    (45)    -    -    3,874    (45) 
Obligations of U.S. states and political subdivisions   64,367    (3,402)    7,765    (21)    56,602    (3,381) 
Corporate bonds and notes   15,534    (540)    7,767    (133)    7,767    (407) 
Asset-backed securities   3,957    (16)    2,219    (11)    1,738    (5) 
Total Temporarily Impaired Securities  $301,569   $(9,210)   $60,601   $(559)   $240,968   $(8,651) 
                         
   December 31, 2017  
   Total   Less than 12 Months   12 Months or Longer 
   Fair
Value		   Unrealized
Losses		   Fair
Value		   Unrealized
Losses		   Fair
Value		   Unrealized
Losses		 
   (dollars in thousands) 
Investment Securities Available-for-Sale:                              
Federal agency obligation  $39,813   $(416)   $28,407   $(213)   $11,406   $(203) 
Residential mortgage pass-through securities   148,574    (1,948)    117,556    (1,146)    31,018    (802) 
Commercial mortgage pass-through securities   1,198    (3)    1,198    (3)    -    - 
Obligations of U.S. states and political subdivisions   57,685    (1,334)    17,909    (246)    39,776    (1,088) 
Trust preferred securities   1,469    (111)    -    -    1,469    (111) 
Corporate bonds and notes   11,074    (271)    1,965    (21)    9,109    (250) 
Asset-backed securities   7,428    (37)    993    (2)    6,435    (35) 
Equity securities   11,116    (350)    -    -    11,116    (350) 
Total Temporarily Impaired Securities  $278,357   $(4,470)   $168,028   $(1,631)   $110,329   $(2,839) 
v3.10.0.1
Loans and the Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Loans and the Allowance for Loan Losses

Note 5 - Loans and the Allowance for Loan Losses

 

Loans Receivable: The following table sets forth the composition of the Company’s loan portfolio segments, including net deferred fees, as of December 31, 2018 and December 31, 2017:

 

   2018   2017 
   (dollars in thousands) 
Commercial  $988,758   $824,082 
Commercial real estate   2,778,167    2,592,909 
Commercial construction   465,389    483,216 
Residential real estate   309,991    271,795 
Consumer   2,594    2,808 
Gross loans   4,544,899    4,174,810 
Net deferred fees   (3,807)    (3,354) 
Loans receivable  $4,541,092   $4,171,456 

 

At December 31, 2018 and 2017, loan balances of approximately $2.3 billion and $1.9 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 mortgages 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, 2018 and December 31, 2017:

 

   2018   2017 
   (dollars in thousands) 
Commercial real estate   -    24,475 
Residential mortgage loans   -    370 
Total carrying amount  $-   $24,845 

 

Purchased Credit-Impaired Loans: The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows as of December 31, 2018 and December 31, 2017.

 

   2018   2017 
   (dollars in thousands) 
Commercial  $2,509   $2,683 

 

For those purchased loans disclosed above, the Company did not increase the allowance for loan losses for the year ended December 31, 2018 and 2017. No allowances for loan losses were reversed during 2018 and 2017.

 

The accretable yield, or income expected to be collected, on the purchased credit-impaired loans above is as follows as of December 31, 2018 and December 31, 2017.

 

   2018   2017 
   (dollars in thousands) 
Balance at January 1,  $1,387   $2,860 
Accretion of income   (253)    (1,473) 
Balance at December 31,  $1,134   $1,387 

 

Loans Receivable on Nonaccrual Status: The following tables present nonaccrual loans included in loans receivable by loan class as of December 31, 2018 and December 31, 2017:

 

   2018   2017 
   (dollars in thousands) 
Commercial  $29,340   $47,363 
Commercial real estate   15,135    12,757 
Commercial construction   2,934    - 
Residential real estate   4,446    5,493 
Total loans receivable on nonaccrual status  $51,855   $65,613 

 

Nonaccrual loans and loans 90 days or greater past due and still accruing 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 “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 “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified 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. All loans past due 90 days or greater and all impaired loans are included in the appropriate category below. The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) at December 31, 2018 and 2017:

 

   December 31, 2018 
   Pass   Special
Mention		   Substandard   Doubtful   Total 
   (dollars in thousands) 
Commercial  $951,610   $3,371   $33,777   $-   $988,758 
Commercial real estate   2,742,989    12,574    22,604    -    2,778,167 
Commercial construction   453,598    5,515    6,276    -    465,389 
Residential real estate   305,414    -    4,577    -    309,991 
Consumer   2,576    -    18    -    2,594 
Gross loans  $4,456,187   $21,460   $67,252   $-   $4,544,899 
     
   December 31, 2017 
   Pass   Special
Mention		   Substandard   Doubtful   Total 
   (dollars in thousands) 
Commercial  $767,020   $3,764   $53,298   $-   $824,082 
Commercial real estate   2,534,973    34,335    23,601    -    2,592,909 
Commercial construction   475,066    5,521    2,629    -    483,216 
Residential real estate   266,163    -    5,632    -    271,795 
Consumer   2,767    -    41    -    2,808 
Gross loans  $4,045,989   $43,620   $85,201   $-   $4,174,810 

 

The following table provides an analysis of the impaired loans by class as of and for the years ended at December 31, 2018, 2017 and 2016.

 

   December 31, 2018 
No Related Allowance Recorded  Recorded
Investment		   Unpaid
Principal
Balance		   Related
Allowance		   Average
Recorded
Investment		   Interest
Income
Recognized		 
   (dollars in thousands) 
Commercial  $29,896   $83,596        $31,721   $66 
Commercial real estate   16,839    17,935         17,676    149 
Commercial construction   9,240    9,240         11,215    493 
Residential real estate   2,209    2,521         2,284    - 
Consumer   -    -         -    - 
Total  $58,184   $113,292        $62,896   $708 
                     
With An Allowance Recorded                    
Commercial real estate  $1,488    1,488    7    1,511    46 
Residential real estate   260    266    29    265    - 
Total  $1,748   $1,754    36   $1,776   $46 
                          
Total                         
Commercial  $29,896   $83,596   $-   $31,721   $66 
Commercial real estate   18,327    19,423    7    19,187    195 
Commercial construction   9,240    9,240    -    11,215    493 
Residential real estate   2,469    2,787    29    2,549    - 
Consumer   -    -    -    -    - 
Total (including related allowance)  $59,932   $115,046   $36   $64,672   $754 
                     
   December 31, 2017 
No Related Allowance Recorded  Recorded
Investment		   Unpaid
Principal
Balance		   Related
Allowance		   Average
Recorded
Investment		   Interest
Income
Recognized		 
   (dollars in thousands) 
Commercial  $49,761   $101,066        $10,552   $161 
Commercial real estate   23,905    23,976         24,099    585 
Commercial construction   6,662    6,662         5,509    322 
Residential real estate   3,203    3,442         3,255    - 
Consumer   -    -         -    - 
Total  $83,531   $135,146        $43,415   $1,068 
                          
With An Allowance Recorded                         
Commercial real estate  $1,133   $1,133   $39   $1,152   $51 
                          
Total                         
Commercial  $49,761   $101,066   $-   $10,765   $161 
Commercial real estate   25,038    25,109    39    25,251    636 
Commercial construction   6,662    6,662    -    5,509    322 
Residential real estate   3,203    3,442    -    3,255    - 
Consumer   -    -    -    -    - 
Total (including related allowance)  $84,664   $136,279   $39   $44,567   $1,119 

 

   December 31, 2016 
No Related Allowance Recorded  Recorded
Investment		   Unpaid
Principal
Balance		   Related
Allowance		   Average
Recorded
Investment		   Interest
Income
Recognized		 
   (dollars in thousands) 
Commercial  $3,637   $4,063        $4,052   $64 
Commercial real estate   18,288    18,288         18,532    250 
Commercial construction   5,909    5,909         5,308    79 
Residential real estate   1,851    2,055         1,908    19 
Consumer   62    62         72    4 
Total  $29,747   $30,377        $29,872   $416 
                          
With An Allowance Recorded                         
Commercial real estate  $1,244   $1,244   $145   $1,274   $- 
                          
Total
                         
Commercial  $3,637   $4,063   $-   $4,052   $64 
Commercial real estate   19,532    19,532    145    19,806    250 
Commercial construction   5,909    5,909    -    5,308    79 
Residential real estate   1,851    2,055    -    1,908    19 
Consumer   62    62    -    72    4 
Total (including related allowance)  $30,991   $31,621   $145   $31,146   $416 

 

Included in the impaired loans table are $11.2 million, $14.9 million and $13.3 million of performing TDRs as of December 31, 2018, 2017 and 2016, respectively. Cash basis interest and interest income recognized on accrual basis approximate each other.

 

Aging Analysis: The following table provides an analysis of the aging of the loans by class, excluding net deferred fees, that are past due at December 31, 2018 and December 31, 2017 (dollars in thousands):

 

   December 31, 2018 
     
   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  $1,673   $-   $1,647   $29,340   $32,660   $956,098   $988,758 
Commercial real estate   6,162    1,840    -    15,135    23,137    2,755,030    2,778,167 
Commercial construction   2,496    564    -    2,934    5,994    459,395    465,389 
Residential real estate   3,455    119    -    4,446    8,020    301,971    309,991 
Consumer   -    -    -    -    -    2,594    2,594 
Total  $13,786   $2,523   $1,647   $51,855   $69,811   $4,475,088   $4,544,899 

 

The amount reported 90 days or greater past due and still accruing as of December 31, 2018 are comprised of PCI loans, net of their fair value marks, which are accreting income per their valuation at date of acquisition. There were no non-PCI loans 90 days or greater past due and still accruing as of December 31, 2018.

 

   December 31, 2017 
     
   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   $1,708   $183   $1,664   $47,363   $50,918   $773,164   $824,082 
Commercial real estate   545    1,475    -    12,757    14,777    2,578,132    2,592,909 
Commercial construction   -    -    -    -    -    483,216    483,216 
Residential real estate   1,578    -    -    5,493    7,071    264,724    271,795 
Consumer   18    -    -    -    18    2,790    2,808 
Total  $3,849   $1,658   $1,664   $65,613   $72,784   $4,102,026   $4,174,810 

 

The amount reported 90 days or greater past due and still accruing as of December 31, 2017 are comprised of PCI loans, net of their fair value marks, which are accreting income per their valuation at date of acquisition. There were no non-PCI loans 90 days or greater past due and still accruing as of December 31, 2017.

 

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated quality, and the related portion of the allowance for loan losses that are allocated to each loan portfolio segment:

 

   December 31, 2018 
   Commercial   Commercial real estate   Commercial construction   Residential real estate   Consumer   Unallocated   Total 
   (dollars in thousands) 
Allowance for loan losses                                   
Individually evaluated for impairment  $-   $7   $-   $29   $-   $-   $36 
Collectively evaluated for impairment   9,675    17,840    4,519    1,237    2    445    33,718 
Acquired portfolio   200    1,000    -    -    -    -    1,200 
Acquired with deteriorated credit quality   -    -    -    -    -    -    - 
Total  $9,875   $18,847   $4,519   $1,266   $2   $445   $34,954 
                                    
Gross loans                                   
Individually evaluated for impairment  $29,896   $18,327   $9,240   $2,469   $-        $59,932 
Collectively evaluated for impairment   949,129    2,500,132    456,149    263,449    2,484         4,171,343 
Acquired portfolio   7,224    259,708    -    44,073    110         311,115 
Acquired with deteriorated credit quality   2,509    -    -    -    -         2,509 
Total  $988,758   $2,778,167   $465,389   $309,991   $2,594        $4,544,899 
                             
   December 31, 2017 
   Commercial   Commercial real estate   Commercial construction   Residential real estate   Consumer   Unallocated   Total 
   (dollars in thousands) 
Allowance for loan losses                                   
Individually evaluated for impairment  $-   $39   $-   $-   $-   $-   $39 
Collectively evaluated for impairment   8,032    15,472    4,747    1,051    2    605    29,909 
Acquired portfolio   200    1,600    -    -    -    -    1,800 
Acquired with deteriorated credit quality   -    -    -    -    -    -    - 
Total  $8,232   $17,111   $4,747   $1,051   $2   $605   $31,748 
                                    
Gross loans                                   
Individually evaluated for impairment  $49,761   $25,038   $6,662   $3,203   $-        $84,664 
Collectively evaluated for impairment   757,923    2,190,686    476,554    212,350    2,338         3,639,851 
Acquired portfolio   13,715    377,185    -    56,242    470         447,612 
Acquired with deteriorated credit quality   2,683    -    -    -    -         2,683 
Total  $824,082   $2,592,909   $483,216   $271,795   $2,808        $4,174,810 

 

The Company’s allowance for loan losses is analyzed quarterly. Many factors are considered, including growth in the portfolio, delinquencies, nonaccrual loan levels, and other factors inherent in the extension of credit.

 

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

 

   Commercial   Commercial
real estate		   Commercial
construction		   Residential
real estate		   Consumer   Unallocated   Total 
   (dollars in thousands) 
Balance at January 1, 2018  $8,233   $17,112   $4,747   $1,050   $1   $605   $31,748 
Loan charge-offs   (17,066)    (915)    -    (23)    (7)    -    (18,011) 
Recoveries   109    -    -    2    6    -    117 
Provision for loan losses   18,599    2,650    (228)    237    2    (160)    21,100 
Balance at December 31, 2018  $9,875   $18,847   $4,519   $1,266   $2   $445   $34,954 

 

   Commercial   Commercial
real estate		   Commercial
construction		   Residential
real estate		   Consumer   Unallocated   Total 
   (dollars in thousands) 
Balance at January 1, 2017  $6,632   $12,583   $4,789   $958   $3   $779   $25,744 
Loan charge-offs   (70)    (155)    -    -    (14)    -    (239) 
Recoveries   178    51    -    12    2    -    243 
Provision for loan losses   1,493    4,633    (42)    80    10    (174)    6,000 
Balance at December 31, 2017  $8,233   $17,112   $4,747   $1,050   $1   $605   $31,748 

 

   Commercial   Commercial
real estate		   Commercial
construction		   Residential
real estate		   Consumer   Unallocated   Total 
   (dollars in thousands) 
Balance at January 1, 2016  $10,949   $10,926   $3,253   $976   $4   $464   $26,572 
Loan charge-offs   (39,343)    (107)    -    (94)    (29)    -    (39,573) 
Recoveries   4    35    -    3    3    -    45 
Provision for loan losses   35,022    1,729    1,536    73    25    315    38,700 
Balance at December 31, 2016  $6,632   $12,583   $4,789   $958   $3   $779   $25,744 

 

For the year ended December 31, 2018, the loan charge-offs within the commercial loan segment were primarily made up of $17.0 million in charge-offs related to the taxi medallion portfolio.

 

For the year ended December 31, 2016, the loan charge-offs within the commercial loan segment were primarily made up of $36.7 million in charge-offs related to the taxi medallion portfolio. The $36.7 million charge on the taxi medallion portfolio occurred in conjunction with the transfer of the taxi medallion loans to loans held-for-sale. The amount transferred to loans held-for-sale as of December 31, 2016 had a carrying value of $65.6 million following the charge-off.

 

Troubled Debt Restructurings

 

Loans are considered to have been modified in a troubled debt restructuring (“TDRs”) when 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, 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 troubled debt restructuring remains on nonaccrual status for a period of six 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.

 

At December 31, 2018, 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 troubled debt restructurings.

 

As of December 31, 2018 TDRs totaled $34.5 million, of which $23.3 million were on nonaccrual status and $11.2 million were performing under their restructured terms. As of December 31, 2017 TDRs totaled $20.5 million, of which $5.6 million were on nonaccrual status and $14.9 million were performing under their restructured terms. The Company has allocated $3 thousand and $39 thousand of specific allowance for those loans at December 31, 2018 and 2017, respectively.

 

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2018:

 

   Number of
Loans		   Pre-Modification
Outstanding
Recorded
Investment		   Post-Modification
Outstanding
Recorded
Investment		 
   (dollars in thousands)
TDRs   
Commercial   32   $16,017   $16,017 
Commercial real estate   3    1,422    1,422 
Commercial construction   3    4,773    4,773 
Residential real estate   2    454    454 
                
Total   40   $22,666   $22,666 

 

Included in the commercial loan segment of the troubled debt restructurings are 27 taxi medallion loans totaling $11.2 million. All 27 taxi medallion loans included above were on nonaccrual status prior to modification, and remain on nonaccrual status post-modification. All loan modifications during the year ended December 31, 2018 included interest rate reductions or maturity extensions.

 

There were no charge-offs in connection with a loan modification at the time of modification during the year ended December 31, 2018. There were no TDRs for which there was a payment default within twelve months following the modification during the year ended December 31, 2018.

 

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2017:

 

   Number of
Loans		   Pre-Modification
Outstanding
Recorded
Investment		   Post-Modification
Outstanding
Recorded
Investment		 
   (dollars in thousands) 
TDRs               
Commercial   1   $692   $692 
Commercial real estate   2    3,007    3,007 
Commercial construction   2    6,662    6,662 
Residential real estate   1    17    17 
Consumer   -    -    - 
                
Total   6   $10,378   $10,378 

 

There were no charge-offs in connection with a loan modification at the time of modification during the year ended December 31, 2017. There were no TDRs for which there was a payment default within twelve months following the modification during the year ended December 31, 2017.

 

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2016:

 

   Number of
Loans		   Pre-Modification
Outstanding
Recorded
Investment		   Post-Modification
Outstanding
Recorded
Investment		 
   (dollars in thousands) 
TDRs               
Commercial   19   $22,420   $22,420 
Commercial real estate   3    2,155    2,155 
Commercial construction   1    1,750    1,750 
Residential real estate   -    -    - 
Consumer   -    -    - 
                
Total   23   $26,325   $26,325 

 

Included in the above troubled debt restructurings were 15 loans secured by 27 New York City taxi medallions totaling $18.5 million as of the date of the respective modifications. These loan modifications included interest rate reductions and maturity extensions. All 15 loans were accruing prior to modification, while 14 remained in accrual status post-modification. As of December 31, 2016, the taxi medallion loans that were modified in a troubled debt restructuring in 2016 were transferred to the loans held-for-sale category (along with the 2015 taxi medallion modified troubled debt restructurings) and, concurrently, were put on nonaccrual.

 

There were no charge-offs in connection with a loan modification at the time of modification during the year ended December 31, 2016. There were no troubled debt restructurings for which there was a payment default within twelve months following the modification during the year ended December 31, 2016.
v3.10.0.1
Premises and Equipment
 12 Months Ended
Dec. 31, 2018
Property, Plant and Equipment [Abstract]  
Premises and Equipment

Note 6 - Premises and Equipment

 

Premises and equipment are summarized as follows:

 

   Estimated
Useful Life
(Years)		  2018   2017 
   (dollars in thousands)
Land  -  $2,403   $2,403 
Buildings  10-25   15,277    16,092 
Furniture, fixtures and equipment  3-7   29,991    30,077 
Leasehold improvements  10-20   14,076    13,775 
Subtotal      61,747    62,347 
Less: accumulated depreciation and amortization      42,218    40,154 
Subtotal      19,529    22,193 
Less: fair value adjustment for acquired leases      467    534 
Total premises and equipment, net     $19,062   $21,659 

 

Depreciation and amortization expense of premises and equipment was $3.1 million, $3.2 million and $2.7 million for 2018, 2017 and 2016, respectively.

 

Capital Leases: As a result of the Merger, the Company acquired a lease agreement for a building under a capital lease. The lease arrangement requires monthly payments through 2028.

 

The Company has included this lease in premises and equipment as follows:

 

   2018   2017 
   (dollars in thousands) 
Capital Lease  $3,408   $3,408 
Less: accumulated amortization   1,696    1,526 
   $1,712   $1,882 

 

The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments at December 31, 2018 (dollars in thousands):

 

2019  $321 
2020   321 
2021   321 
2022   321 
2023   323 
Thereafter   1,734 
Total minimum lease payments   3,341 
      
Less amount representing interest   845 
Present value of net minimum lease payments  $2,496 

 

Operating Leases: Occupancy and equipment expense includes rentals for premises and equipment of $2.3 million in 2018, $2.3 million in 2017 and $2.5 million in 2016. At December 31, 2018, the Company was obligated under a number of non-cancelable leases for premises and equipment, many of which provide for increased rental payments based upon increases in real estate taxes and the cost of living index. These leases, most of which have renewal provisions, are principally operating leases.

 

Future minimum lease payments under these leases are as follows (dollars in thousand):

 

2019  $2,919 
2020   2,605 
2021   2,227 
2022   1,853 
2023   1,748 
Thereafter   4,072 
v3.10.0.1
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

Note 7 - 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.

 

Step zero impairment testing is an assessment of qualitative factors that affect the likelihood of impairment. Based upon management’s review, the Company’s intangible assets were not impaired and there has been no impairment through December 31, 2018. 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:

 

   2018   2017 
   (dollars in thousands) 
Balance, January 1  $145,909   $145,909 
Acquired goodwill   -    - 
Impairment   -    - 
Balance, December 31  $145,909   $145,909 

 

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
Carrying
Amount		   Accumulated
Amortization		   Net
Carrying
Amount		 
   (dollars in thousands) 
As of December 31, 2018            
Core deposit intangibles  $6,011   $(4,274)   $1,737 
As of December 31, 2017               
Core deposit intangibles  $6,011   $(3,647)   $2,364 

 

Aggregate amortization expense was approximately $627,000, $724,000 and $820,000 for 2018, 2017 and 2016, respectively. Estimated amortization expense for each of the next five years (dollars in thousands):

 

2019  $531 
2020   434 
2021   338 
2022   241 
2023   145 
v3.10.0.1
Deposits
 12 Months Ended
Dec. 31, 2018
Disclosure Text Block [Abstract]  
Deposits

Note 8 – Deposits

 

Time Deposits

 

As of December 31, 2018 and 2017, the Company’s total time deposits were $1.4 billion and $1.2 billion, respectively. Included in time deposits were brokered time deposits of $405.6 million and $358.7 million as of December 31, 2018 and 2017, respectively. As of December 31, 2018, the contractual maturities of these time deposits were as follows (dollars in thousands):

 

2019   816,649 
2020   360,259 
2021   145,350 
2022   32,532 
2023   11,263 
Total  $1,366,053 

 

 The amount of time deposits with balances of $250,000 or more was $272.2 million and $198.3 million as of December 31, 2018 and 2017, respectively. Included in time deposits with balances of $250,000 or more were brokered time deposits with balances of $250,000 or more of $8.8 million and $-0- million as of December 31, 2018 and 2017, respectively.
v3.10.0.1
FHLB Borrowings
 12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
FHLB Borrowings

Note 9 – FHLB Borrowings

 

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

 

   December 31, 2018   December 31, 2017
   Amount   Rate   Amount   Rate
   (dollars in thousands)
Total FHLB borrowings  $600,001    2.59%  $670,077    1.76%
                     
By remaining period to maturity:                    
Less than 1 year  $405,001    2.57%  $505,077    1.59%
1 year through less than 2 years   110,000    2.75%   35,000    1.60%
2 years through less than 3 years   60,000    2.27%   85,000    2.65%
3 years through less than 4 years   -         45,000    2.15%
4 years through 5 years   25,000    2.92%   -      
Total borrowings  $600,001    2.59%  $670,077    1.76%

 

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 are fixed rates. The advances at December 31, 2018 were primarily collateralized by approximately $1.7 billion of commercial mortgage and residential loans, net of required over collateralization amounts, under a blanket lien arrangement. At December 31, 2018 the Company had remaining borrowing capacity of approximately $1.0 billion at FHLB.
v3.10.0.1
Securities Sold under Agreements to Repurchase
 12 Months Ended
Dec. 31, 2018
Securities Sold under Agreements to Repurchase [Abstract]  
Securities Sold under Agreements to Repurchase

Note 10 – Securities Sold under Agreements to Repurchase

 

The Company has entered into agreements under which it has sold securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. The obligation to repurchase the securities is reflected as a liability in the Company’s consolidated statement of condition, while the securities underlying the securities sold under agreements to repurchase remain in the respective asset accounts and are delivered to and held as collateral by third party trustees.

 

Repurchase agreements are secured borrowings. The Company pledges investment securities to secure those borrowings. Information concerning repurchase agreements is summarized as follows (dollars in thousands):

 

   2018   2017   2016 
Average daily balance during the year  $-   $6,781   $15,000 
Average interest rate during the year        5.95%   5.95%
Maximum month-end balance during the year  $-   $15,000   $15,000 
Weighted average interest rate during the year   -    5.95%   5.95%
v3.10.0.1
Subordinated Debentures
 12 Months Ended
Dec. 31, 2018
Subordinated Borrowings [Abstract]  
Subordinated Debentures

Note 11 - 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 1 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 at December 31, 2018 was 5.37%. 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 at December 31, 2018 and December 31, 2017.

 

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  01/23/2034  01/23/2009

 

In June 2015, the Parent Corporation issued $50.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”). The Notes are non-callable for five years, have a stated maturity of July 1, 2025, and bear interest at a fixed rate of 5.75% per year, from and including June 30, 2015 to, but excluding July 1, 2020. From and including July 1, 2020 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month LIBOR rate plus 393 basis points. As of December 31, 2018, unamortized costs related to the debt issuance were approximately $272,000.

 

On January 11, 2018, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”). The Notes bear interest at 5.20% annually from, and including, the date of initial issuance to, but excluding, February 1, 2023, payable semi-annually in arrears. From and including February 1, 2023 through maturity or earlier redemption, the interest rate shall reset 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. If three-month LIBOR is not available for any reason, then the rate for that interest period will be determined by such alternate method as provided in the Supplemental Indenture. Interest on the Notes will be paid on February 1, and August 1, commencing August 1, 2018 to but not including February 1, 2023, and from and including February 1, 2023, 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. As of December 31, 2018, unamortized costs related to this debt issuance were approximately $1,327,500.
v3.10.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

Note 12 - Income Taxes

 

The current and deferred amounts of income tax expense for 2018, 2017 and 2016 are as follows (dollars in thousands): 

 

   2018   2017   2016 
Current:               
Federal  $8,902   $21,090   $10,173 
State   954    505    (366) 
Subtotal   9,856    21,595    9,807 
Deferred:               
Federal   2,455    3,876    2,682 
State   (1,529)    (177)    (713) 
Subtotal   926    3,699    1,969 
Income tax expense  $10,782   $25,294   $11,776 

 

The Tax Cuts and Jobs Act of 2017 (“the Act”) was signed into law on December 22, 2017. As a result of the Act, the Company recorded a net tax charge of $4.8 million primarily due to a re-measurement of deferred tax assets and liabilities.

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. 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. These changes are not temporary. Although regulations implementing the legislative changes have not yet been issued, it is possible that the Company will lose the benefit of at least certain of its tax management strategies, and, if so, our total tax expense will likely increase. As a result of the Bill the Company recorded a net tax benefit of $0.6 million primarily due to a re-measurement of deferred tax assets and liabilities.

 

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):

 

   2018   2017   2016 
Income before income tax expense  $71,134   $68,514   $42,858 
Federal statutory rate   21%   35%   35%
Computed “expected” Federal income tax expense   14,938    23,980    15,000 
State tax, net of federal tax benefit   1,104    213    (701) 
Impact of “the Act”   (790)    5,623    - 
Impact of “the Bill”   (618)    -    - 
Bank owned life insurance   (650)    (1,113)    (896) 
Tax-exempt interest and dividends   (1,521)    (2,123)    (1,714) 
Tax benefits from stock based compensation   (1,100)    (348)    - 
Other, net   (581)    (938)    87 
Income tax expense  $10,782   $25,294   $11,776 

 

The tax effects of temporary differences that give rise to significant portions of the deferred tax asset and deferred tax liability at December 31, 2018 and 2017 are presented in the following table:

 

   2018   2017 
   (dollars in thousands) 
Deferred tax assets          
Allowance for loan losses   10,358    8,848 
Purchase accounting   307    2,310 
Pension actuarial losses   2,203    1,647 
New Jersey net operating loss   2,796    1,310 
Deferred compensation   1,234    1,184 
Unrealized losses on securities and swaps   1,620    483 
Deferred loan costs, net of fees   19    474 
Accrued rent   426    459 
Capital lease   232    211 
Nonaccrual interest   95    158 
Other   -    7 
Total deferred tax assets  $19,290   $17,091 
Deferred tax liabilities          
Employee benefit plans  $(2,167)   $(1,501) 
Depreciation   (512)    (434) 
Prepaid expenses   (185)    (174) 
Market discount accretion   (414)    (60) 
Unrealized gains on securities and swaps   (366)    (224) 
Other   (198)    (28) 
Total deferred tax liabilities   (3,842)   (2,421) 
Net deferred tax assets  $15,448   $14,670 

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets for state purposes is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible, while for Federal purposes the deferred tax assets can also be realized through tax carrybacks. Management considers the scheduled reversal of deferred tax liabilities, the projected future taxable income, and tax planning strategies in making this assessment. During 2018 and 2017, 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 2015 tax return year and forward. The Company’s state income tax returns are generally open from the 2014 and later tax return years based on individual state statutes of limitations.
v3.10.0.1
Offsetting Assets and Liabilities
 12 Months Ended
Dec. 31, 2018
Offsetting [Abstract]  
Offsetting Assets and Liabilities

Note 13 – Offsetting Assets and Liabilities

 

Certain financial instrument-related assets and liabilities may be eligible for offset on the consolidated statements of condition because they are subject to master netting agreements or similar agreements. However, the Company does not elect to offset such arrangements on the consolidated financial statements. The Company enters into interest rate swap agreements with financial institution counterparties. For additional detail regarding interest rate swap agreements refer to Note 21 within this section. In the event of default on, or termination of, any one contract, both parties have the right to net settle multiple contracts. Also, certain interest rate swap agreements may require the Company to receive or pledge cash or financial instrument collateral based on the contract provisions.

 

The following table presents information about financial instruments that are eligible for offset as of December 31, 2018 and December 31, 2017:

 

               Gross Amounts Not Offset 
   Gross Amounts
Recognized		   Gross Amounts
Offset in the
Statement of
Financial
Condition		   Net Amounts
of Assets
Presented in the
Statement of
Financial
Condition		   Financial
Instruments
Recognized		   Cash or
Financial
Instrument
Collateral		   Net
Amount		 
   (dollars in thousands) 
December 31, 2018                              
Assets:                              
Interest rate swaps  $1,159   $-   $1,159   $-   $-   $1,159 
December 31, 2017                              
Assets:                              
Interest rate swaps  $798   $-   $798   $-   $-   $798 

 

For the year ended December 31, 2018 and 2017 there was no financial collateral pledged to our interest rate swaps. As these swap positions were not within the contractually agreed upon collateral requirement there was no collateral pledged to, or from, the respective counterparties.
v3.10.0.1
Commitments, Contingencies and Concentrations of Credit Risk
 12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments, Contingencies and Concentrations of Credit Risk

Note 14 - 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 customer. 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 at December 31, 2018 and 2017:

 

   2018   2017 
   (dollars in thousands) 
Commitments under commercial loans and lines of credit  $425,189   $344,142 
Home equity and other revolving lines of credit   39,965    44,483 
Outstanding commercial mortgage loan commitments   355,914    254,710 
Standby letters of credit   36,141    34,114 
Overdraft protection lines   836    688 
Total  $858,045   $678,137 

 

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.
v3.10.0.1
Transactions with Executive Officers, Directors and Principal Stockholders
 12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Transactions with Executive Officers, Directors and Principal Stockholders

Note 15 – Transactions with Executive Officers, Directors and Principal Stockholders

 

Loans to principal officers, directors, and their affiliates during the years ended December 31, 2018 and 2017 were as follows:

 

   2018    2017   
   (dollars in thousands) 
Balance, January 1  $56,300   $49,710 
New loans   5,041    11,089 
Repayments   (4,438)    (4,499) 
Balance, December 31  $56,903   $56,300 

 

Deposits from principal officers, directors, and their affiliates at December 31, 2018 and 2017 were $39.7 million and $42.4 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.
v3.10.0.1
Stockholders' Equity and Regulatory Requirements
 12 Months Ended
Dec. 31, 2018
Stockholders' Equity Note [Abstract]  
Stockholders' Equity and Regulatory Requirements

Note 16 - 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 final rules implementing the Basel Committee on Banking Supervisions’ capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of December 31, 2018, 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 adequately capitalized, 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, 2018 and 2017, 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, 2018 and 2017, compared to the FRB and FDIC minimum capital adequacy requirements and the FDIC requirements for classification as a well-capitalized institution.

 

       Minimum
Capital Adequacy		   For Classification
Under Corrective
Action Plan
as Well Capitalized		 
   Amount   Ratio   Amount   Ratio   Amount   Ratio 
The Bank          (dollars in thousands)         
December 31, 2018                              
Leverage (Tier 1) capital  $552,311    10.78%   $204,973    4.00%   $256,217    5.00% 
Risk-Based Capital:                              
CET 1  $552,311    11.37%   $218,589    4.50%   $315,740    6.50% 
Tier 1   552,311    11.37%   291,452    6.00%    388,603    8.00% 
Total   619,515    12.75%    388,603    8.00%    485,754    10.00% 
                               
December 31, 2017                               
 Leverage (Tier 1) capital  $468,899    9.84%   $190,665    4.00%   $238,332    5.00% 
Risk-Based Capital:                              
CET 1  $468,899    10.21%   $206,721    4.50%   $298,597    6.50% 
Tier 1   468,899    10.21%   275,628    6.00%    367,504    8.00% 
Total   500,647    10.90%   367,504    8.00%    459,379    10.00% 

 

       Minimum Capital
Adequacy		   For Classification
as Well Capitalized
   Amount   Ratio   Amount   Ratio   Amount  Ratio
The Company          (dollars in thousands)       
December 31, 2018                          
Leverage (Tier 1) capital  $478,876    9.34%   $204,995    4.00%   N/A   N/A
Risk-Based Capital:                          
CET 1  $473,721    9.75%   $218,585    4.50%  N/A   N/A
Tier 1   478,876    9.86%    291,446    6.00%   N/A   N/A
Total   638,830    13.15%    388,595    8.00%   N/A   N/A
                           
December 31, 2017                          
Leverage (Tier 1) capital  $425,407    8.92%   $190,728    4.00%   N/A   N/A
Risk-Based Capital:                          
CET 1  $420,252    9.15%   $206,742    4.50%   N/A   N/A
Tier 1   425,407    9.26%    275,656    6.00%   N/A   N/A
Total   507,155    11.04%    367,542    8.00%   N/A   N/A

 

The new Basel III rules require a “capital conservation buffer,” for both the Company and the Bank. On January 1, 2019, the Company and the Bank are required to maintain a 2.5% capital conservation buffer, above and beyond the capital levels otherwise required under applicable regulation. Under this guidance banking institutions with a CET1, Tier 1 Capital Ratio and Total Risk Based Capital Ratio above the minimum regulatory adequate capital ratios but below the capital conservation buffer will face constraints on their ability to pay dividends, repurchase equity and pay discretionary bonuses to executive officers, based on the amount of the shortfall.

 

As of December 31, 2018 both the Company and Bank satisfy the capital conservation buffer requirements applicable to them. The lowest ratio at the Company is the Tier 1 Ratio which was 1.99% above the minimum buffer ratio and, at the Bank, the lowest ratio was the Total Risk Based Capital Ratio which was 2.88% above the minimum buffer ratio.
v3.10.0.1
Comprehensive Income
 12 Months Ended
Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Comprehensive Income

Note 17 - 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, obligations for defined benefit pension plan and an adjustment to reflect the curtailment of the Company’s defined benefit pension plan, net of taxes.

 

Details about Accumulated Other
Comprehensive Income (Loss) Components		  Amounts Reclassified from Accumulated
Other Comprehensive Income (Loss)		   Affected Line Item in the Consolidated
Statements of Income
   Year ended
December 31,		    
(dollars in thousands)  2018   2017   2016    
Sale of investment securities available-for-sale  $-   $1,596   $4,234   Net gains on sale of investment securities
    -    (579)    (1,682)   Income tax expense
    -    1,017    2,552    
Amortization of unrealized holding (losses) gains on securities transferred from available-for-sale to held-to-maturity   -    -    (1,986)   Interest income
    -    -    813   Income tax benefit
    -    -    (1,173)    
Amortization of pension plan net actuarial losses   (359)    (412)    (407)   Salaries and employee benefits
    101    169    165   Income tax benefit
    (258)    (243)    (242)    
Total reclassification  $(258)  $774   $1,137    

 

Accumulated other comprehensive loss at December 31, 2018 and 2017 consisted of the following:

 

   2018   2017 
   (dollars in thousands) 
Investment securities available-for-sale, net of tax  $(5,841)   $(902) 
Cash flow hedge, net of tax   837    472 
Defined benefit pension and post-retirement plans, net of tax   (3,785)   (3,589) 
 Total  $(8,789)   $(4,019) 

 

Effective January 1, 2018, the Company implemented ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” Under ASU 2018-02, the FASB amended existing guidance to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from The Act. In order to comply with this new ASU, the Company recorded an adjustment to the Consolidated Statement of Condition on January 1, 2018 of approximately $709 thousand that increased retained earnings and increased accumulated other comprehensive loss.

 

Effective January 1, 2018, the Company implemented ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” Under ASU 2016-01, equity securities, with certain exceptions, are to be measured at fair value with changes in fair value recognized in net income. In order to comply with this new ASU, the Company recorded a cumulative-effect adjustment to the Consolidated Statement of Condition of approximately $55 thousand.
v3.10.0.1
Pension and Other Benefits
 12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Pension and Other Benefits

Note 18 - Pension and Other Benefits

 

Defined Benefit Plans

 

The Company maintains a frozen noncontributory pension plan covering employees of the Company prior to the Merger. 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 at December 31, 2018 and 2017.

 

   2018   2017 
   (dollars in thousands) 
Change in Benefit Obligation:          
Projected benefit obligation at January 1,  $13,129   $12,682 
Interest cost   427    478 
Actuarial (gain) loss   (1,716)    879 
Benefits paid   (871)   (910)
Projected benefit obligation at December 31,  $10,969   $13,129 
Change in Plan Assets:          
Fair value of plan assets at January 1,  $12,609   $12,002 
Actual return on plan assets   (715)    1,517 
Employer contributions   2,000    - 
Benefits paid   (871)    (910) 
Fair value of plan assets at December 31,  $13,023   $12,609 
Funded status  $2,054   $(520) 

 

The accumulated benefit obligation was $11.0 million and $13.1 million as of the year ended December 31, 2018 and 2017, respectively.

 

Amounts recognized as a component of accumulated other comprehensive loss as of year-end that have not been recognized as a component of the net periodic pension expense for the plan are presented in the following table. The Company expects to recognize approximately $358,000 of the net actuarial loss reported in the following table as of December 31, 2018 as a component of net periodic pension expense during 2019.

 

   2018   2017         
   (dollars in thousands)         
Net actuarial loss recognized in accumulated other comprehensive income  $5,265   $5,860         

 

The net periodic pension expense and other comprehensive income (before tax) for 2018, 2017 and 2016 includes the following:

 

   2018    2017    2016  
   (dollars in thousands) 
Interest cost  $427   $478   $514 
Expected return on plan assets   (765)    (640)    (617) 
Net amortization   366    412    407 
Total net periodic pension expense  $28   $250   $304 
                
Total gain recognized in other comprehensive income   (595)    (410)    (405) 
Total recognized in net periodic expense and other comprehensive income (before tax)  $(567)   $(160)   $(101) 

 

Effective January 1, 2018, the Company implemented ASU 2017-07, “Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under ASU 2017-07, the FASB requires employers to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The table above details the affected line items within the Consolidated Statements of Income related to the net periodic pension costs for the following periods.

 

This ASU is also required to be applied retrospectively to all periods presented. The following table summarizes the impact of retrospective application to the Consolidated Statement of Condition for the period presented:

 

   2017    2016  
         
Other components of net periodic pension expense          
As previously reported  $-   $- 
As reported under the new guidance   250    304 
           
Salaries and employee benefits          
As previously reported  $35,128   $31,030 
As reported under the new guidance   34,878    30,726 

 

The following table presents the weighted average assumptions used to determine the pension benefit obligations at December 31, for the following three years.

 

   2018    2017    2016  
Discount rate   4.05%   3.41%   3.88%
Rate of compensation increase    N/A     N/A     N/A 

 

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

 

   2018    2017    2016  
   (dollars in thousands) 
Discount rate   4.05%   3.41%   3.88%
Expected long-term return on plan assets   5.50%   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 return 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, 2018 and 2017, target allocation, and expected long-term rate of return by asset are as follows:

 

   Target
Allocation 		   % of Plan
Assets –
Year Ended
2018 		   % of Plan
Assets –
Year Ended
2017		   Weighted
Average
Expected
Long-Term
Rate of
Return		 
Equity Securities                    
Domestic   50%    53%    41%    3.4% 
International   10%    7%   8%    0.7% 
Debt and/or fixed income securities   36%    36%    49%    1.2% 
Cash and other alternative investments, including real estate funds, commodity funds, hedge funds and equity structured notes   4%    4%    2%    0.2% 
Total   100%   $100%   $100%   $5.5% 

 

The fair values of the Company’s pension plan assets at December 31, 2018 and 2017, by asset class, are as follows:

 

   December 31,
2018		   Fair Value Measurements at Reporting Date Using 
Asset Class      Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
   (dollars in thousands) 
Cash  $298   $298   $-   $- 
Equity securities:                    
U.S. companies   6,957    6,957    -    - 
International companies   901    901    -    - 
Debt and/or fixed income securities   4,651    4,651           
Commodity funds   161    161           
Real estate funds   55    55    -    - 
Total  $13,023   $13,023   $-   $- 
                     
   December 31,
2017		   Fair Value Measurements at Reporting Date Using 
Asset Class      Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
   (dollars in thousands) 
Cash  $175   $175   $-   $- 
Equity securities:                    
U.S. companies   5,175    5,175    -    - 
International companies   1,056    1,056    -    - 
Debt and/or fixed income securities   6,139    6,139           
Real estate funds   64    64    -    - 
Total  $12,609   $12,609   $-   $- 

 

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 22):

 

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).

 

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 2019.

 

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):

 

2019  $716 
2020   712 
2021   724 
2022   709 
2023   697 
2024-2028   3,514 

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 2018, 2017 and 2016, employer contributions amounted to $862,000, $383,000 and $351,000, respectively.
v3.10.0.1
Stock Based Compensation
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Based Compensation

Note 19 - 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, 2018. 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 December 31, 2018 are approximately 668,000. The Company intends to issue all shares under the Plan in the form of newly issued shares.

 

Restricted stock, options and restricted 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 restricted stock units do not.

 

All awards are issued at 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 handled on a case-by-case basis. Stock-based compensation expense for the year ended December 31, 2018, December 31, 2017 and December 31, 2016 was $1.9 million, $1.8 million and $2.1 million, respectively.

 

Activity under the Company’s options as of and for the year ended December 31, 2018 was as follows: 

 

   Number of
Stock
Options		   Weighted-
Average
Exercise
Price		   Weighted-
Average
Remaining
Contractual
Term
(in years)		   Aggregate
Intrinsic Value		 
Outstanding at December 31, 2017   299,778   $6.18           
Granted   -                
Exercised   (189,992)    4.89           
Forfeited/cancelled/expired   (1,323)    14.24           
Outstanding at December 31, 2018   108,463    8.35    2.8   $1,097,806 
                     
Exercisable at December 31, 2018   108,463   $8.35    2.8   $1,097,806 

 

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, 2018 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, 2018. This amount changes based on the fair market value of the Company’s stock.

 

Activity under the Company’s restricted shares for the year ended December 31, 2018 was as follows: 

 

   Nonvested
Shares		   Weighted-
Average
Grant Date
Fair Value		 
Nonvested at December 31, 2017   103,078   $20.41 
Granted   24,684    27.86 
Vested   (58,668)    18.89 
Forfeited/cancelled/expired   (666)    24.25 
Nonvested at December 31, 2018   68,428    23.04 

 

As of December 31, 2018, there was approximately $687,000 of total unrecognized compensation cost related to nonvested restricted shares granted under the plans. The cost is expected to be recognized over a weighted average period of 0.8 years. A total of 24,684 restricted shares were granted during the year ended December 31, 2018.

 

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

 

   Units
(expected)		   Units
(maximum)		   Weighted
Average Grant
Date Fair
Value		 
Unearned at December 31, 2017   151,194        $19.19 
Awarded   19,614         31.35 
Change in Estimate   (15,172)           
Vested   (69,627)         19.46 
Unearned at December 31, 2018   86,009    151,772   $22.06 

 

At December 31, 2018, the specific number of shares related to performance units that were expected to vest was 86,009, 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. At December 31, 2018 the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 151,772.

 

At December 31, 2018, compensation cost of approximately $653,000 related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 1.5 years. A total of 19,614 performance units were awarded during the year ended December 31, 2018, respectively.

 

During the year ended December 31, 2018, 69,627 vested and 42,672 shares were issued in satisfaction of earned performance units. The shares issued were calculated based on a net down of 26,955 shares to satisfy tax obligations created by vesting.

 

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

 

   Units
(expected)		   Weighted
Average Grant
Date Fair
Value		 
Unearned at December 31, 2017   -   $- 
Awarded   29,423    31.35 
Forfeited   -    - 
Vested   -    - 
Unearned at December 31, 2018   29,423   $31.35 

 

At December 31, 2018, the specific number of shares related to restricted stock units that were expected to vest was approximately 29,423. Any forfeitures would result in previously recognized expense being reversed. A portion of the shares that vest will be repurchased to satisfy the tax obligations of the recipient.

 

At December 31, 2018, compensation cost of approximately $679,000 related to non-vested restricted stock units, not yet recognized, is expected to be recognized over a weighted-average period of 2.0 years. A total of 29,423 restricted stock units were awarded during the year ended December 31, 2018.

 

Effective January 1, 2017, the Company implemented ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Included in income tax expense for the year ended December 31, 2018 and December 31, 2017 is a benefit of approximately $1.1 million and $0.5 million, respectively, which resulted from the effect of implementing ASU 2016-09.
v3.10.0.1
Dividends and Other Restrictions
 12 Months Ended
Dec. 31, 2018
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract]  
Dividends and Other Restrictions

Note 20 - 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. At December 31, 2018, approximately $230.9 million was available for payment of dividends based on regulatory guidelines.
v3.10.0.1
Derivatives
 12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives

Note 21 – Derivatives

 

The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap 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 interest rate swap agreements.

 

Interest rate swaps were entered into on April 13, 2017, August 24, 2015, and December 30, 2014, each with a respective notional amount of $25.0 million and were designated as a cash flow hedge of a Federal Home Loan Bank advance. The swaps were 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 swaps 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.

 

Summary information about the interest rate swap designated as a cash flow hedges as of year-end is as follows:

 

   December 31,
2018		   December 31,
2017		 
   (dollars in thousands) 
Notional amount  $75,000   $100,000 
Weighted average pay rates   1.70%   1.66% 
Weighted average receive rates   2.19%   1.23% 
Weighted average maturity   2.0 years    2.4 years 
Fair value  $1,159   $798 

 

Interest expense recorded on these swap transactions totaled approximately $(463,600), $406,200, and $668,300 during 2018, 2017, and 2016 is reported as a component of interest expense on FHLB Advances.

 

Cash Flow Hedge

 

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:

 

 2018 
(dollars in thousands)  Amount of gain
(loss) recognized
in OCI (Effective
Portion)		   Amount of (gain)
loss reclassified
from OCI to
interest expense		   Amount of gain (loss)
recognized in other
Noninterest income
(Ineffective Portion)		 
Interest rate contracts  $825   $(464)  $- 
     
 2017 
(dollars in thousands)  Amount of gain
(loss) recognized
in OCI (Effective
Portion)		   Amount of (gain)
loss reclassified
from OCI to
interest expense		   Amount of gain (loss)
recognized in other
Noninterest income
(Ineffective Portion)		 
Interest rate contracts  $304   $406   $- 

 

The following table reflects the cash flow hedges included in the Consolidated Statements of Condition as of December 31, 2018 and December 31, 2017:

 

   2018   2017 
(dollars in thousands)  Notional
Amount		   Fair Value   Notional
Amount		   Fair Value 
Included in other assets/(liabilities):                    
Interest rate swaps related to FHLB Advances  $75,000   $1,159   $100,000   $798 

 

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, 2018, December 31, 2017 and December 31, 2016.
v3.10.0.1
Fair Value Measurements and Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Fair Value of Financial Instruments

Note 22 - 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 a 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 at December 31, 2018 and December 31, 2017:

 

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 at December 31, 2018 and December 31, 2017 are as follows:

 

       December 31, 2018
Fair Value Measurements at Reporting Date Using		 
   Total Fair Value   Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
(dollars in thousands)                
Recurring fair value measurements:                    
Assets                    
Investment securities:                    
Available-for-sale:                    
Federal agency obligations  $44,955   $-   $44,955   $- 
Residential mortgage pass-through securities   185,204    -    185,204    - 
Commercial mortgage pass-through securities   3,874    -    3,874    - 
Obligations of U.S. states and political subdivision   139,185    -    129,808    9,377 
Corporate bonds and notes   25,813    -    25,813    - 
Asset-backed securities   9,691    -    9,691    - 
Certificates of deposit   322    -    322    - 
Other securities   2,990    2,990    -    - 
Total available-for-sale  $412,034   $2,990   $399,667   $9,377 
                     
Equity securities   11,460    11,460    -    - 
Derivatives   1,159    -    1,159    - 
Total assets  $424,653   $14,450   $400,826   $9,377 

 

       December 31, 2017
Fair Value Measurements at Reporting Date Using		 
   Total Fair Value   Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
(dollars in thousands)                
Recurring fair value measurements:                    
Assets                    
Investment securities:                    
Available-for-sale:                    
Federal agency obligations  $56,022   $-   $56,022   $- 
Residential mortgage pass-through securities   181,891    -    181,891    - 
Commercial mortgage pass-through securities   4,054    -    4,054    - 
Obligations of U.S. states and political subdivision   131,128    -    121,496    9,632 
Trust preferred securities   4,671    -    4,671    - 
Corporate bonds and notes   29,693    -    29,693    - 
Asset-backed securities   12,050    -    12,050    - 
Certificates of deposit   625    -    625    - 
Equity securities   11,728    11,728    -    - 
Other securities   3,422    3,422    -    - 
Total available-for-sale  $435,284   $15,150   $410,502   $9,632 
Derivatives   798    -    798    - 
Total assets  $436,082   $15,150   $411,300   $9,632 

 

There were no transfers between Level 1 and Level 2 during the years ended December 31, 2018 and 2017.

 

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 at December 31, 2018 and December 31, 2017:

 

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. Management obtains quotes or bids on all or part of these loans directly from the purchasing financial institutions (Level 2).

 

Impaired Loans

 

The Company may record adjustments to the carrying value of loans based on fair value measurements, generally 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 market place and are also based on Level 3 inputs.

 

For assets measured at fair value on a non-recurring basis, the fair value measurements at December 31, 2018 and December 31, 2017 are as follows:

 

       Fair Value Measurements at Reporting Date Using 
Assets measured at fair value on a nonrecurring basis:  December 31,
2018		   Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
Impaired loans:  (dollars in thousands) 
Commercial real estate  $1,481   $-   $-   $1,481 
Residential   231    -    -    231 
                     
       Fair Value Measurements at Reporting Date Using 
Assets measured at fair value on a nonrecurring basis:  December 31,
2017		   Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
Impaired loans:  (dollars in thousands) 
Commercial real estate  $1,094   $-   $-   $1,094 

 

Impaired Loans - Collateral dependent impaired loans at December 31, 2018 that required a valuation allowance were $1.7 million with a related valuation allowance of $36 thousand, compared to $1.1 million with a related valuation allowance of $39 thousand at December 31, 2017.

 

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 year ended December 31, 2018 and year ended December 31, 2017:

 

   Municipal
Securities		 
   (dollars in thousands) 
Beginning balance, January 1, 2018  $9,632 
Principal paydowns   (255) 
Ending balance, December 31, 2018  $9,377 
      
   Municipal
Securities		 
   (dollars in thousands) 
Beginning balance, January 1, 2017  $18,218 
Principal paydowns   (8,586) 
Ending balance, December 31, 2017  $9,632 

 

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 at December 31, 2018 and December 31, 2017. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

 

December 31, 2018

   Fair Value   Valuation
Techniques		  Unobservable
Input		  Range 
Securities available-for-sale:      (dollars in thousands)       
Municipal securities  $9,377   Discounted cash flows  Discount rate   2.9% 

 

December 31, 2017

   Fair Value   Valuation
Techniques		  Unobservable
Input		  Range 
Securities available-for-sale:      (dollars in thousands)       
Municipal securities  $9,632   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, 2018

(dollars in thousands)  Fair Value   Valuation
Techniques		  Unobservable
Input		  Range (weighed average)
Impaired loans:              
Commercial real estate  $1,481   Appraisals of collateral value  Comparable sales  6% - 9% (8%)
               
Residential  $231   Appraisals of collateral value  Comparable sales  0% - 10% (5%)

 

December 31, 2017

(dollars in thousands)  Fair Value   Valuation
Techniques		  Unobservable
Input		  Range (weighed average)
Impaired loans:              
Commercial real estate  $1,094   Appraisals of collateral value  Comparable sales  0% - 10% (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. Effective January 1, 2018, with the adoption of the New Fair Value Standard, 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. In 2017, the fair value estimate of portfolio loans, net was determined using an entrance price methodology, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.

 

Deposits. The carrying amounts of deposits with no stated maturities (i.e., noninterest-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, 2018 and December 31, 2017:

 

           Fair Value Measurements 
   Carrying
Amount		   Fair
Value		   Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
   (dollars in thousands) 
December 31, 2018                         
Financial assets:                         
Cash and due from banks  $172,366   $172,366   $172,366   $-   $- 
Investment securities available-for-sale   412,034    412,034    2,990    399,667    9,377 
Restricted investment in bank stocks   31,136    n/a    n/a    n/a    n/a 
Equity securities   11,460    11,460    11,460    -    - 
Net loans (1)   4,506,138    4,402,878    -    -    4,402,878 
Derivatives   1,159    1,159    -    1,159    - 
Accrued interest receivable   18,214    18,214    -    2,064    16,150 
                          
Financial liabilities:                         
Noninterest-bearing deposits   768,584    768,584    768,584    -    - 
Interest-bearing deposits   3,323,508    3,320,640    1,957,503    1,363,137    - 
Borrowings   600,001    598,598    -    598,598    - 
Subordinated debentures   128,556    132,426    -    132,426    - 
Accrued interest payable   6,764    6,764    -    6,764    - 
                          
December 31, 2017                         
Financial assets:                         
Cash and due from banks  $149,582   $149,582   $149,582   $-   $- 
Investment securities available-for-sale   435,284    435,284    15,150    410,502    9,632 
Restricted investment in bank stocks   33,497    n/a    n/a    n/a    n/a 
Loans held-for-sale   24,845    24,845    -    370    24,475 
Net loans   4,139,708    4,118,542    -    -    4,118,542 
Derivatives   798    798    -    798    - 
Accrued interest receivable   15,470    15,470    -    2,051    13,419 
                          
Financial liabilities:                         
Noninterest-bearing deposits   776,843    776,843    776,843    -    - 
Interest-bearing deposits   3,018,285    3,018,285    1,842,151    1,176,134    - 
Borrowings   670,077    669,680    -    669,680    - 
Subordinated debentures   54,699    57,340    -    57,340    - 
Accrued interest payable   3,707    3,707    -    3,707    - 

 

(1)ASU 2016-01 requires the use of an exit price in fair value disclosures. Historically (prior to January 1, 2018) the Company used an entry price in the estimate of fair value loans.

 

The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account 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.
v3.10.0.1
Parent Corporation Only Financial Statements
 12 Months Ended
Dec. 31, 2018
Condensed Financial Information Disclosure [Abstract]  
Parent Corporation Only Financial Statements

Note 23 - 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 20 of the Notes to Consolidated Financial Statements).

 

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

 

Condensed Statements of Condition

 

   At December 31, 
   2018   2017 
   (dollars in thousands) 
ASSETS          
Cash and cash equivalents  $22,071   $7,506 
Investment in subsidiaries   692,516    614,083 
Receivable due from subsidiaries   32,250    - 
Investments securities available-for-sale   176    779 
Equity securities (1)   607    - 
Other assets   1,282    322 
Total assets  $748,902   $622,690 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Other liabilities  $6,419   $2,554 
Subordinated debentures   128,556    54,699 
Stockholders’ equity   613,927    565,437 
Total liabilities and stockholders’ equity  $748,902   $622,690 

 

  (1) Beginning January 1, 2018, equity securities were reclassified out of investment securities available-for-sale in conjunction with ASU 2016-01.

 

Condensed Statements of Income

 

   For Years Ended December 31, 
   2018   2017   2016 
   (dollars in thousands) 
Income:               
Dividend income from subsidiaries  $16,700   $13,000   $12,400 
Other income   1,618    13    8 
Total Income   18,318    13,013    12,408 
Expenses   (7,201)   (3,251)   (3,252)
Income before equity in undistributed earnings of subsidiaries   11,117    9,762    9,156 
Equity in undistributed earnings of subsidiaries   49,235    33,458    21,926 
Net Income  $60,352   $43,220   $31,082 

 

Condensed Statements of Cash Flows

 

   For Years Ended December 31 
   2018   2017   2016 
   (dollars in thousands) 
Cash flows from operating activities:               
Net income  $60,352   $43,220   $31,082 
Adjustments to reconcile net income to net cash provided by operating activities:               
Equity in undistributed earnings of subsidiary   (49,235)   (33,458)   (21,926)
Loss on equity securities, net   4    -    - 
(Increase) decrease in other assets   (627)   269    2,023 
Increase (decrease) in other liabilities   3,843    (151)   544 
Net cash provided by operating activities   14,337    9,880    11,723 
                
Cash flows from investing activities:               
Purchase of available-for-sale securities   (8)   (7)   - 
Capital infusion to subsidiary   (64,500)   -    (38,439)
Net cash used in investing activities   (64,508)   (7)   (38,439)
                
Cash flows from financing activities:               
Proceeds from subordinated debt   73,525    -    - 
Cash dividends on common stock   (9,664)   (9,612)   (9,067)
Cash dividends on preferred stock   -    -    (22)
Secondary offering and issuance of common stock   -    (180)   38,439 
Redemption of preferred stock   -    -    (11,250)
Proceeds from exercise of stock options   875    417    767 
Net cash provided by (used in) financing activities   64,736    (9,375)   18,867 
                
Increase (decrease) in cash and cash equivalents   14,565    498    (7,849)
Cash and cash equivalents at January 1,   7,506    7,008    14,857 
Cash and cash equivalents at December 31,  $22,071   $7,506   $7,008
v3.10.0.1
Quarterly Financial Information of ConnectOne Bancorp, Inc. (Unaudited)
 12 Months Ended
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information of ConnectOne Bancorp, Inc. (unaudited)

Note 24 - Quarterly Financial Information of ConnectOne Bancorp, Inc. (unaudited)

 

   2018 
   4th Quarter   3rd Quarter   2nd Quarter   1st Quarter 
   (dollars in thousands, except per share data) 
Total interest income  $57,223   $55,351   $53,084   $50,475 
Total interest expense   17,062    15,389    14,139    12,328 
Net interest income   40,161    39,962    38,945    38,147 
Provision for loan losses   1,100    1,100    1,100    17,800 
Total other income, net of securities gains   1,515    1,429    1,388    1,407 
Other expenses   18,266    18,287    17,108    17,059 
Income before income taxes   22,310    22,004    22,125    4,695 
Income tax expense   3,638    2,102    4,598    444 
Net income   18,672    19,902    17,527    4,251 
Earnings per share:                    
Basic  $0.58   $0.62   $0.54   $0.13 
Diluted   0.58    0.61    0.54    0.13 

 

   2017 
   4th Quarter   3rd Quarter   2nd Quarter   1st Quarter 
   (dollars in thousands, except per share data) 
Total interest income  $50,211   $46,338   $43,691   $41,084 
Total interest expense   10,403    9,319    8,590    7,943 
Net interest income   39,808    37,019    35,101    33,141 
Provision for loan losses   2,000    1,450    1,450    1,100 
Total other income, net of securities gains   2,024    1,756    1,422    1,406 
Net securities gains   -    -    -    1,596 
Other expenses   16,566    18,641    25,303    18,249 
Income before income taxes   23,266    18,684    9,770    16,794 
Income tax expense   12,686    5,607    2,087    4,914 
Net income   10,580    13,077    7,683    11,880 
Earnings per share:                    
Basic  $0.33   $0.41   $0.24   $0.37 
Diluted   0.33    0.41    0.24    0.37 

 

Note:  Due to rounding, quarterly earnings per share may not sum to reported annual earnings per share.

 

The provision for loan losses for the first quarter 2018 was a notable increase that was mainly attributable to specific allocations to the taxi medallion loans and concurrent partial charge-off of $17.0 million.

 

Other expenses for the second quarter of 2017 had a notable increase that was mainly attributable to an increase in valuation allowance for our loans held-for-sale. Income taxes for the fourth quarter of 2017 had a notable increase that was mainly attributable to a charge against the Company’s deferred tax assets of $5.6 million due to the impact of The Tax Cuts and Jobs Act of 2017.
v3.10.0.1
Revenue Recognition
 12 Months Ended
Dec. 31, 2018
Revenue Recognition [Abstract]  
Revenue Recognition

Note 25. Revenue Recognition

 

Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, “ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Company’s revenues come from interest income and other sources, including loans, leases, securities, and derivatives that are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include deposit service charges on deposits, interchange income, and the sale of OREO.

 

The Company, using a modified retrospective transition approach, determined that there will be no cumulative effect adjustment to retained earnings as a result of adopting the new standard, nor will the standard have a material impact on our consolidated financial statements including the timing or amounts of revenue recognized.

 

All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the year ended December 31, 2018 and 2017. Items outside of ASC 606 are noted as such.

 

   Year Ended
December 31,
2018		   Year Ended
December 31,
2017(2)		 
   (dollars in thousands) 
Noninterest income          
Service charges on deposits          
Overdraft fees  $847   $809 
Other   607    736 
Interchange income   628    675 
Net gains on sales of loans(1)   61    708 
Wire transfer fees(1)   309    251 
Loan servicing fees(1)   94    108 
Bank owned life insurance(1)   3,094    3,181 
Net gains on sales of securities(1)   -    1,596 
Annuity and insurance income(1)   -    39 
Other   99    101 
Total noninterest income  $5,739   $8,204 

 

(1)Not within scope of ASC 606.
(2)The Company elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation.

 

A description of the Company’s revenue streams accounted for under ASC 606 is as follows:

 

Service Charges on Deposit Accounts: The Company earns fees from deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed at the point in the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

 

Interchange Income: The Company earns interchange fees from debit and credit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

 

Gains/Losses on Sales of OREO: The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction prices is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.
v3.10.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2018
Subsequent Events [Abstract]  
Subsequent Events

Note 26 – Subsequent Event

 

On January 2, 2019, Greater Hudson Bank merged with and into ConnectOne Bank, with ConnectOne Bank as the surviving bank. As a result of the merger, the Company acquired approximately $0.4 billion in loans, assumed approximately $0.4 billion in deposits and acquired seven branch offices located in Rockland, Orange and Westchester Counties, New York. The assets and liabilities acquired will be recorded at fair value as of the acquisition date. Each outstanding share of Greater Hudson Bank common stock was exchanged for 0.245 shares of ConnectOne common stock. Given the initial accounting for this business combination is incomplete, management is not yet able to disclose the preliminary fair value of the assets acquired and liabilities assumed.
v3.10.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Business

Business

 

ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of the State of New Jersey and is a registered bank holding company. 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), and NJCB Spec-1, LLC (a New Jersey limited liability 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-nine 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 Financial Statement Presentation

Basis of Financial Statement Presentation

 

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.

 

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles.
Segments

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

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.
Cash and Cash Equivalents

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 customer loan and deposit transactions, interest-bearing deposits in other financial institutions, and federal funds purchased and repurchase agreements.
Investment Securities

Investment Securities

 

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 are 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 should be considered when determining whether a debt security is other-than-temporarily impaired. For debt securities, management must assess 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 are 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 is 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 is recognized through earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized through other comprehensive income.
Equity Securities

Equity Securities

 

The Company’s equity securities are recorded at fair value, with unrealized gains and losses included in earnings beginning January 1, 2018 after adoption of Accounting Standards Update No. 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. Prior to January 1, 2018, unrealized gains and losses on equity securities were excluded from earnings and reported in other comprehensive income (loss), net of tax. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific-identification method.
Loans Held-for-Sale

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, reset term, as well as sales of similar assets.
Loans

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, and an allowance for loan 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 is both well-secured and in the process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans 90 days or greater past due and still accruing include both smaller balance homogeneous loans that are collectively evaluated for impairment and loans individually evaluated for impairment.

 

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 its New Jersey and New York market area. 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 loan 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 Loan Losses

Allowance for Loan Losses

 

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired.

 

A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans for which the terms have been modified as a concession to the borrower due to the borrower experiencing financial difficulties are considered troubled debt restructurings (“TDR”) and are classified as impaired. The impairment of a loan can be measured at (1) the fair value of the collateral less costs to sell, if the loan is collateral dependent, (2) at the value of expected future cash flows using the loan’s effective interest rate, or (3) at the loan’s observable market price. Generally, the Bank measures impairment of such loans by reference to the fair value of the collateral less costs to sell.

 

Loans of $250,000 and over are individually evaluated for impairment. If a loan that is identified as impaired and the individual test results in an impairment, a portion of the allowance is allocated so that the loan is reported, net, at the fair value of collateral less costs to sell if repayment is expected solely from the collateral or at the present value of estimated future cash flows using the loan’s existing rate if the loan is dependent on cash flow. Loans with balances less than $250,000 are collectively evaluated for impairment, and accordingly, are not separately identified for impairment disclosures.

 

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

 

Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

 

The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience, the primary factor, is determined by loan segment and is based on the actual loss history experienced by the Bank over an actual three year rolling calculation. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. This actual loss experience is supplemented with the exogenous factor adjustments based on the risks present for each loan category. These exogenous factors (nine total) include consideration of the following: concentrations of credit; delinquency & nonaccrual trends; economic & business conditions including evaluation of the national and regional economies and industries with significant loan concentrations; external factors including legal, regulatory or competitive pressures that may impact the loan portfolio; changes in the experience, ability, or size of the lending staff, management, or board of directors that may impact the loan portfolio; changes in underwriting standards, collection procedures, charge-off practices, or other changes in lending policies and procedures that may impact the loan portfolio; loss and recovery trends; changes in portfolio size and mix; and trends in problem loans.
Purchased Credit-Impaired Loans

Purchased Credit-Impaired Loans

 

The Company acquires groups of loans in conjunction with mergers, some of which have shown evidence of credit deterioration since origination. These purchased credit-impaired loans are recorded at their estimated fair value, such that there is no carryover of the seller’s allowance for loan losses.  After acquisition, losses are recognized by an increase in the allowance for loan losses.

 

Such purchased credit-impaired loans (“PCI”) are identified on an individual basis. The Company estimates the amount and timing of expected cash flows for each loan and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

 

A PCI loan may be resolved either through a sale of the loan, by working with the customer and obtaining partial or full repayment, by short sale of the collateral, or by foreclosure. A gain or loss on resolution would be recognized based on the difference between the proceeds received and the carrying amount of the loan.

 

PCI loans that met the criteria for nonaccrual may be considered performing, regardless of whether the customer 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

Derivatives

 

The Company records cash flow hedges at the inception of the derivative contract based on the Company’s intentions and belief as to likely effectiveness as a hedge. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income.

 

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

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

 

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

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.
Other Real Estate Owned

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

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-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. A Black-Scholes model is used to estimate the fair value of stock options while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. See Note 19 of the Notes to Consolidated Financial Statements for a further discussion.
Treasury Stock

Treasury Stock

 

Subject to 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 years ended December 31, 2018, 2017 and 2016, the Parent Corporation did not purchase any of its shares.
Goodwill

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 for the years ended December 31, 2018, 2017 and 2016.
Other Intangible Assets

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

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

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

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 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

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 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

Advertising Costs

 

The Company recognizes its marketing and advertising cost as incurred.
Reclassifications

Reclassifications

 

Certain reclassifications have been made in the consolidated financial statements and footnotes for 2017 and 2016 to conform to the classifications presented in 2018. Such reclassifications had no impact on net income or stockholders’ equity.
v3.10.0.1
Earnings per Common Share (Tables)
 12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Earnings per common share have been computed based on the following:

 

   Years Ended December 31, 
   2018   2017   2016 
   (in thousands, except per share amounts) 
Net income available to common stockholders  $60,352   $43,220   $31,060 
Earnings allocated to participating securities   (139)    (141)    (147) 
Income attributable to common stock  $60,213   $43,079   $30,913 
Weighted average common shares outstanding, including participating securities   32,198    31,943    30,453 
Weighted average participating securities   (74)    (41)    (54) 
Weighted average common shares outstanding   32,124    31,902    30,399 
Incremental shares from assumed conversions of options, performance units and restricted shares   233    335    291 
Weighted average common and equivalent shares outstanding   32,357    32,237    30,690 
Earnings per common share:               
Basic  $1.87   $1.35   $1.02 
Diluted   1.86    1.34    1.01 
v3.10.0.1
Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Unrealized Gain (Loss) on Investments [Table Text Block]

The following tables present information related to the Company’s portfolio of securities available-for-sale at December 31, 2018 and 2017.

 

   Amortized
Cost		   Gross
Unrealized
Gains		   Gross
Unrealized
Losses		   Fair
Value		 
   (dollars in thousands) 
December 31, 2018                    
Investment securities available-for-sale                    
Federal agency obligations  $45,509   $51   $(605)   $44,955 
Residential mortgage pass-through securities   189,721    85    (4,602)    185,204 
Commercial mortgage pass-through securities   3,919    -    (45)    3,874 
Obligations of U.S. states and political subdivisions   141,496    1,091    (3,402)    139,185 
Trust preferred securities   -    -    -    - 
Corporate bonds and notes   26,308    45    (540)    25,813 
Asset-backed securities   9,685    22    (16)    9,691 
Certificates of deposit   319    3    -    322 
Other securities   2,990    -    -    2,990 
Total securities available-for-sale  $419,947   $1,297   $(9,210)   $412,034 

 

   Amortized
Cost		   Gross
Unrealized
Gains		   Gross
Unrealized
Losses		   Fair
Value		 
December 31, 2017  (dollars in thousands) 
Investment securities available-for-sale                    
Federal agency obligations  $56,297   $141   $(416)   $56,022 
Residential mortgage pass-through securities   183,509    330    (1,948)    181,891 
Commercial mortgage pass-through securities   4,054    3    (3)    4,054 
Obligations of U.S. states and political subdivisions   130,723    1,739    (1,334)    131,128 
Trust preferred securities   4,577    205    (111)    4,671 
Corporate bonds and notes   29,801    163    (271)    29,693 
Asset-backed securities   12,021    66    (37)    12,050 
Certificates of deposit   621    4    -    625 
Equity securities   11,843    235    (350)    11,728 
Other securities   3,422    -    -    3,422 
Total securities available-for-sale  $436,868   $2,886   $(4,470)   $435,284 
Investments Classified by Contractual Maturity Date [Table Text Block]

The following table presents information for investments in securities available-for-sale at December 31, 2018, 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, 2018 
   Amortized
Cost		   Fair
Value		 
   (dollars in thousands) 
Investment Securities Available-for-Sale:          
Due in one year or less  $2,355   $2,358 
Due after one year through five years   36,338    35,953 
Due after five years through ten years   28,067    28,375 
Due after ten years   156,557    153,280 
Residential mortgage pass-through securities   189,721    185,204 
Commercial mortgage pass-through securities   3,919    3,874 
Other securities   2,990    2,990 
Total securities available-for-sale  $419,947   $412,034 
Schedule of Realized Gain (Loss) [Table Text Block]

Gross gains and losses from the sales, calls, and maturities of investment securities for the years ended December 31, 2018, 2017 and 2016 were as follows:

 

   Years Ended December 31, 
   2018   2017   2016 
   (dollars in thousands) 
Proceeds  $-   $29,543   $85,253 
                
Gross gains on sales of investment securities  $-   $1,596   $4,234 
Gross losses on sales of investment securities   -    -    - 
Net gains on sales of investment securities   -    1,596    4,234 
Tax provision on net gains   -    (579)    (1,682) 
Net gains on sales of investment securities, after tax  $-   $1,017   $2,552 
Schedule of Unrealized Loss on Investments [Table Text Block]

The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position at December 31, 2018 and 2017. There were no investments held-to-maturity as of December 31, 2018 and 2017.

 

   December 31, 2018  
   Total   Less than 12 Months   12 Months or Longer 
   Fair
Value		   Unrealized
Losses		   Fair
Value		   Unrealized
Losses		   Fair
Value		   Unrealized
Losses		 
   (dollars in thousands)
Investment Securities Available-for-Sale:                              
Federal agency obligation  $35,472   $(605)   $810   $(1)   $34,662   $(604) 
Residential mortgage pass-through securities   178,365    (4,602)    42,040    (393)    136,325    (4,209) 
Commercial mortgage pass-through securities   3,874    (45)    -    -    3,874    (45) 
Obligations of U.S. states and political subdivisions   64,367    (3,402)    7,765    (21)    56,602    (3,381) 
Corporate bonds and notes   15,534    (540)    7,767    (133)    7,767    (407) 
Asset-backed securities   3,957    (16)    2,219    (11)    1,738    (5) 
Total Temporarily Impaired Securities  $301,569   $(9,210)   $60,601   $(559)   $240,968   $(8,651) 
                         
   December 31, 2017  
   Total   Less than 12 Months   12 Months or Longer 
   Fair
Value		   Unrealized
Losses		   Fair
Value		   Unrealized
Losses		   Fair
Value		   Unrealized
Losses		 
   (dollars in thousands) 
Investment Securities Available-for-Sale:                              
Federal agency obligation  $39,813   $(416)   $28,407   $(213)   $11,406   $(203) 
Residential mortgage pass-through securities   148,574    (1,948)    117,556    (1,146)    31,018    (802) 
Commercial mortgage pass-through securities   1,198    (3)    1,198    (3)    -    - 
Obligations of U.S. states and political subdivisions   57,685    (1,334)    17,909    (246)    39,776    (1,088) 
Trust preferred securities   1,469    (111)    -    -    1,469    (111) 
Corporate bonds and notes   11,074    (271)    1,965    (21)    9,109    (250) 
Asset-backed securities   7,428    (37)    993    (2)    6,435    (35) 
Equity securities   11,116    (350)    -    -    11,116    (350) 
Total Temporarily Impaired Securities  $278,357   $(4,470)   $168,028   $(1,631)   $110,329   $(2,839) 
v3.10.0.1
Loans and the Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The following table sets forth the composition of the Company’s loan portfolio segments, including net deferred fees, as of December 31, 2018 and December 31, 2017:

 

   2018   2017 
   (dollars in thousands) 
Commercial  $988,758   $824,082 
Commercial real estate   2,778,167    2,592,909 
Commercial construction   465,389    483,216 
Residential real estate   309,991    271,795 
Consumer   2,594    2,808 
Gross loans   4,544,899    4,174,810 
Net deferred fees   (3,807)    (3,354) 
Loans receivable  $4,541,092   $4,171,456 
Loans held for sale [Table Text Block]

The following table presents loans held-for-sale by loan segment as of December 31, 2018 and December 31, 2017:

 

   2018   2017 
   (dollars in thousands) 
Commercial  $-   $- 
Commercial real estate   -    24,475 
Residential mortgage loans   -    370 
Total carrying amount  $-   $24,845 
Loans and Leases Receivable Purchase Credit Impaired Loans [Table Text Block]

The carrying amount of those loans is as follows as of December 31, 2018 and December 31, 2017.

 

   2018   2017 
   (dollars in thousands) 
Commercial  $2,509   $2,683 
Loans and Leases Receivable Purchased Loans [Table Text Block]

The accretable yield, or income expected to be collected, on the purchased credit-impaired loans above is as follows as of December 31, 2018 and December 31, 2017.

 

   2018   2017 
   (dollars in thousands) 
Balance at January 1,  $1,387   $2,860 
Accretion of income   (253)    (1,473) 
Balance at December 31,  $1,134   $1,387 
Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

The following tables present nonaccrual loans included in loans receivable by loan class as of December 31, 2018 and December 31, 2017:

 

   2018   2017 
   (dollars in thousands) 
Commercial  $29,340   $47,363 
Commercial real estate   15,135    12,757 
Commercial construction   2,934    - 
Residential real estate   4,446    5,493 
Total loans receivable on nonaccrual status  $51,855   $65,613 
Financing Receivable Credit Quality Indicators [Table Text Block]

The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) at December 31, 2018 and 2017:

 

   December 31, 2018 
   Pass   Special
Mention		   Substandard   Doubtful   Total 
   (dollars in thousands) 
Commercial  $951,610   $3,371   $33,777   $-   $988,758 
Commercial real estate   2,742,989    12,574    22,604    -    2,778,167 
Commercial construction   453,598    5,515    6,276    -    465,389 
Residential real estate   305,414    -    4,577    -    309,991 
Consumer   2,576    -    18    -    2,594 
Gross loans  $4,456,187   $21,460   $67,252   $-   $4,544,899 
     
   December 31, 2017 
   Pass   Special
Mention		   Substandard   Doubtful   Total 
   (dollars in thousands) 
Commercial  $767,020   $3,764   $53,298   $-   $824,082 
Commercial real estate   2,534,973    34,335    23,601    -    2,592,909 
Commercial construction   475,066    5,521    2,629    -    483,216 
Residential real estate   266,163    -    5,632    -    271,795 
Consumer   2,767    -    41    -    2,808 
Gross loans  $4,045,989   $43,620   $85,201   $-   $4,174,810 
Impaired Financing Receivables [Table Text Block]

The following table provides an analysis of the impaired loans by class as of and for the years ended at December 31, 2018, 2017 and 2016.

 

   December 31, 2018 
No Related Allowance Recorded  Recorded
Investment		   Unpaid
Principal
Balance		   Related
Allowance		   Average
Recorded
Investment		   Interest
Income
Recognized		 
   (dollars in thousands) 
Commercial  $29,896   $83,596        $31,721   $66 
Commercial real estate   16,839    17,935         17,676    149 
Commercial construction   9,240    9,240         11,215    493 
Residential real estate   2,209    2,521         2,284    - 
Consumer   -    -         -    - 
Total  $58,184   $113,292        $62,896   $708 
                     
With An Allowance Recorded                    
Commercial real estate  $1,488    1,488    7    1,511    46 
Residential real estate   260    266    29    265    - 
Total  $1,748   $1,754    36   $1,776   $46 
                          
Total                         
Commercial  $29,896   $83,596   $-   $31,721   $66 
Commercial real estate   18,327    19,423    7    19,187    195 
Commercial construction   9,240    9,240    -    11,215    493 
Residential real estate   2,469    2,787    29    2,549    - 
Consumer   -    -    -    -    - 
Total (including related allowance)  $59,932   $115,046   $36   $64,672   $754 
                     
   December 31, 2017 
No Related Allowance Recorded  Recorded
Investment		   Unpaid
Principal
Balance		   Related
Allowance		   Average
Recorded
Investment		   Interest
Income
Recognized		 
   (dollars in thousands) 
Commercial  $49,761   $101,066        $10,552   $161 
Commercial real estate   23,905    23,976         24,099    585 
Commercial construction   6,662    6,662         5,509    322 
Residential real estate   3,203    3,442         3,255    - 
Consumer   -    -         -    - 
Total  $83,531   $135,146        $43,415   $1,068 
                          
With An Allowance Recorded                         
Commercial real estate  $1,133   $1,133   $39   $1,152   $51 
                          
Total                         
Commercial  $49,761   $101,066   $-   $10,765   $161 
Commercial real estate   25,038    25,109    39    25,251    636 
Commercial construction   6,662    6,662    -    5,509    322 
Residential real estate   3,203    3,442    -    3,255    - 
Consumer   -    -    -    -    - 
Total (including related allowance)  $84,664   $136,279   $39   $44,567   $1,119 

 

   December 31, 2016 
No Related Allowance Recorded  Recorded
Investment		   Unpaid
Principal
Balance		   Related
Allowance		   Average
Recorded
Investment		   Interest
Income
Recognized		 
   (dollars in thousands) 
Commercial  $3,637   $4,063        $4,052   $64 
Commercial real estate   18,288    18,288         18,532    250 
Commercial construction   5,909    5,909         5,308    79 
Residential real estate   1,851    2,055         1,908    19 
Consumer   62    62         72    4 
Total  $29,747   $30,377        $29,872   $416 
                          
With An Allowance Recorded                         
Commercial real estate  $1,244   $1,244   $145   $1,274   $- 
                          
Total
                         
Commercial  $3,637   $4,063   $-   $4,052   $64 
Commercial real estate   19,532    19,532    145    19,806    250 
Commercial construction   5,909    5,909    -    5,308    79 
Residential real estate   1,851    2,055    -    1,908    19 
Consumer   62    62    -    72    4 
Total (including related allowance)  $30,991   $31,621   $145   $31,146   $416 
Past Due Financing Receivables [Table Text Block]

The following table provides an analysis of the aging of the loans by class, excluding net deferred fees, that are past due at December 31, 2018 and December 31, 2017 (dollars in thousands):

 

   December 31, 2018 
     
   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  $1,673   $-   $1,647   $29,340   $32,660   $956,098   $988,758 
Commercial real estate   6,162    1,840    -    15,135    23,137    2,755,030    2,778,167 
Commercial construction   2,496    564    -    2,934    5,994    459,395    465,389 
Residential real estate   3,455    119    -    4,446    8,020    301,971    309,991 
Consumer   -    -    -    -    -    2,594    2,594 
Total  $13,786   $2,523   $1,647   $51,855   $69,811   $4,475,088   $4,544,899 

 

The amount reported 90 days or greater past due and still accruing as of December 31, 2018 are comprised of PCI loans, net of their fair value marks, which are accreting income per their valuation at date of acquisition. There were no non-PCI loans 90 days or greater past due and still accruing as of December 31, 2018.

 

   December 31, 2017 
     
   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   $1,708   $183   $1,664   $47,363   $50,918   $773,164   $824,082 
Commercial real estate   545    1,475    -    12,757    14,777    2,578,132    2,592,909 
Commercial construction   -    -    -    -    -    483,216    483,216 
Residential real estate   1,578    -    -    5,493    7,071    264,724    271,795 
Consumer   18    -    -    -    18    2,790    2,808 
Total  $3,849   $1,658   $1,664   $65,613   $72,784   $4,102,026   $4,174,810 
Schedule of Recorded Investment in Financing Receivables [Table Text Block]

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated quality, and the related portion of the allowance for loan losses that are allocated to each loan portfolio segment:

 

   December 31, 2018 
   Commercial   Commercial real estate   Commercial construction   Residential real estate   Consumer   Unallocated   Total 
   (dollars in thousands) 
Allowance for loan losses                                   
Individually evaluated for impairment  $-   $7   $-   $29   $-   $-   $36 
Collectively evaluated for impairment   9,675    17,840    4,519    1,237    2    445    33,718 
Acquired portfolio   200    1,000    -    -    -    -    1,200 
Acquired with deteriorated credit quality   -    -    -    -    -    -    - 
Total  $9,875   $18,847   $4,519   $1,266   $2   $445   $34,954 
                                    
Gross loans                                   
Individually evaluated for impairment  $29,896   $18,327   $9,240   $2,469   $-        $59,932 
Collectively evaluated for impairment   949,129    2,500,132    456,149    263,449    2,484         4,171,343 
Acquired portfolio   7,224    259,708    -    44,073    110         311,115 
Acquired with deteriorated credit quality   2,509    -    -    -    -         2,509 
Total  $988,758   $2,778,167   $465,389   $309,991   $2,594        $4,544,899 
                             
   December 31, 2017 
   Commercial   Commercial real estate   Commercial construction   Residential real estate   Consumer   Unallocated   Total 
   (dollars in thousands) 
Allowance for loan losses                                   
Individually evaluated for impairment  $-   $39   $-   $-   $-   $-   $39 
Collectively evaluated for impairment   8,032    15,472    4,747    1,051    2    605    29,909 
Acquired portfolio   200    1,600    -    -    -    -    1,800 
Acquired with deteriorated credit quality   -    -    -    -    -    -    - 
Total  $8,232   $17,111   $4,747   $1,051   $2   $605   $31,748 
                                    
Gross loans                                   
Individually evaluated for impairment  $49,761   $25,038   $6,662   $3,203   $-        $84,664 
Collectively evaluated for impairment   757,923    2,190,686    476,554    212,350    2,338         3,639,851 
Acquired portfolio   13,715    377,185    -    56,242    470         447,612 
Acquired with deteriorated credit quality   2,683    -    -    -    -         2,683 
Total  $824,082   $2,592,909   $483,216   $271,795   $2,808        $4,174,810 
Allowance for Credit Losses on Financing Receivables [Table Text Block]

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

 

   Commercial   Commercial
real estate		   Commercial
construction		   Residential
real estate		   Consumer   Unallocated   Total 
   (dollars in thousands) 
Balance at January 1, 2018  $8,233   $17,112   $4,747   $1,050   $1   $605   $31,748 
Loan charge-offs   (17,066)    (915)    -    (23)    (7)    -    (18,011) 
Recoveries   109    -    -    2    6    -    117 
Provision for loan losses   18,599    2,650    (228)    237    2    (160)    21,100 
Balance at December 31, 2018  $9,875   $18,847   $4,519   $1,266   $2   $445   $34,954 

 

   Commercial   Commercial
real estate		   Commercial
construction		   Residential
real estate		   Consumer   Unallocated   Total 
   (dollars in thousands) 
Balance at January 1, 2017  $6,632   $12,583   $4,789   $958   $3   $779   $25,744 
Loan charge-offs   (70)    (155)    -    -    (14)    -    (239) 
Recoveries   178    51    -    12    2    -    243 
Provision for loan losses   1,493    4,633    (42)    80    10    (174)    6,000 
Balance at December 31, 2017  $8,233   $17,112   $4,747   $1,050   $1   $605   $31,748 

 

   Commercial   Commercial
real estate		   Commercial
construction		   Residential
real estate		   Consumer   Unallocated   Total 
   (dollars in thousands) 
Balance at January 1, 2016  $10,949   $10,926   $3,253   $976   $4   $464   $26,572 
Loan charge-offs   (39,343)    (107)    -    (94)    (29)    -    (39,573) 
Recoveries   4    35    -    3    3    -    45 
Provision for loan losses   35,022    1,729    1,536    73    25    315    38,700 
Balance at December 31, 2016  $6,632   $12,583   $4,789   $958   $3   $779   $25,744 
Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block]

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2018:

 

   Number of
Loans		   Pre-Modification
Outstanding
Recorded
Investment		   Post-Modification
Outstanding
Recorded
Investment		 
   (dollars in thousands)
TDRs   
Commercial   32   $16,017   $16,017 
Commercial real estate   3    1,422    1,422 
Commercial construction   3    4,773    4,773 
Residential real estate   2    454    454 
                
Total   40   $22,666   $22,666 

 

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2017:

 

   Number of
Loans		   Pre-Modification
Outstanding
Recorded
Investment		   Post-Modification
Outstanding
Recorded
Investment		 
   (dollars in thousands) 
TDRs               
Commercial   1   $692   $692 
Commercial real estate   2    3,007    3,007 
Commercial construction   2    6,662    6,662 
Residential real estate   1    17    17 
Consumer   -    -    - 
                
Total   6   $10,378   $10,378 

 

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2016:

 

   Number of
Loans		   Pre-Modification
Outstanding
Recorded
Investment		   Post-Modification
Outstanding
Recorded
Investment		 
   (dollars in thousands) 
TDRs               
Commercial   19   $22,420   $22,420 
Commercial real estate   3    2,155    2,155 
Commercial construction   1    1,750    1,750 
Residential real estate   -    -    - 
Consumer   -    -    - 
                
Total   23   $26,325   $26,325 
v3.10.0.1
Premises and Equipment (Tables)
 12 Months Ended
Dec. 31, 2018
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment [Table Text Block]

Premises and equipment are summarized as follows:

 

   Estimated
Useful Life
(Years)		  2018   2017 
   (dollars in thousands)
Land  -  $2,403   $2,403 
Buildings  10-25   15,277    16,092 
Furniture, fixtures and equipment  3-7   29,991    30,077 
Leasehold improvements  10-20   14,076    13,775 
Subtotal      61,747    62,347 
Less: accumulated depreciation and amortization      42,218    40,154 
Subtotal      19,529    22,193 
Less: fair value adjustment for acquired leases      467    534 
Total premises and equipment, net     $19,062   $21,659 
Schedule of Capital Lease in Premises and Equipment [Table Text Block]

The Company has included this lease in premises and equipment as follows:

 

   2018   2017 
   (dollars in thousands) 
Capital Lease  $3,408   $3,408 
Less: accumulated amortization   1,696    1,526 
   $1,712   $1,882 
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]

The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments at December 31, 2018 (dollars in thousands):

 

2019  $321 
2020   321 
2021   321 
2022   321 
2023   323 
Thereafter   1,734 
Total minimum lease payments   3,341 
      
Less amount representing interest   845 
Present value of net minimum lease payments  $2,496 
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Future minimum lease payments under these leases are as follows (dollars in thousand):

 

2019  $2,919 
2020   2,605 
2021   2,227 
2022   1,853 
2023   1,748 
Thereafter   4,072 
v3.10.0.1
Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill [Table Text Block]

The change in goodwill during the year is as follows:

 

   2018   2017 
   (dollars in thousands) 
Balance, January 1  $145,909   $145,909 
Acquired goodwill   -    - 
Impairment   -    - 
Balance, December 31  $145,909   $145,909 
Intangible Assets Disclosure [Text Block]

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
Carrying
Amount		   Accumulated
Amortization		   Net
Carrying
Amount		 
   (dollars in thousands) 
As of December 31, 2018            
Core deposit intangibles  $6,011   $(4,274)   $1,737 
As of December 31, 2017               
Core deposit intangibles  $6,011   $(3,647)   $2,364 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Aggregate amortization expense was approximately $627,000, $724,000 and $820,000 for 2018, 2017 and 2016, respectively. Estimated amortization expense for each of the next five years (dollars in thousands):

 

2019  $531 
2020   434 
2021   338 
2022   241 
2023   145 
v3.10.0.1
Deposits (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure Text Block [Abstract]  
Schedule Of Time Deposits [Table Text Block]

As of December 31, 2018, the contractual maturities of these time deposits were as follows (dollars in thousands):

 

2019   816,649 
2020   360,259 
2021   145,350 
2022   32,532 
2023   11,263 
Total  $1,366,053 
v3.10.0.1
FHLB Borrowings (Tables)
 12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block]

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

 

   December 31, 2018   December 31, 2017
   Amount   Rate   Amount   Rate
   (dollars in thousands)
Total FHLB borrowings  $600,001    2.59%  $670,077    1.76%
                     
By remaining period to maturity:                    
Less than 1 year  $405,001    2.57%  $505,077    1.59%
1 year through less than 2 years   110,000    2.75%   35,000    1.60%
2 years through less than 3 years   60,000    2.27%   85,000    2.65%
3 years through less than 4 years   -         45,000    2.15%
4 years through 5 years   25,000    2.92%   -      
Total borrowings  $600,001    2.59%  $670,077    1.76%
v3.10.0.1
Securities Sold under Agreements to Repurchase (Tables)
 12 Months Ended
Dec. 31, 2018
Securities Sold under Agreements to Repurchase [Abstract]  
Schedule of information concerning repurchase agreements [Table Text Block]

Repurchase agreements are secured borrowings. The Company pledges investment securities to secure those borrowings. Information concerning repurchase agreements is summarized as follows (dollars in thousands):

 

   2018   2017   2016 
Average daily balance during the year  $-   $6,781   $15,000 
Average interest rate during the year        5.95%   5.95%
Maximum month-end balance during the year  $-   $15,000   $15,000 
Weighted average interest rate during the year   -    5.95%   5.95%
v3.10.0.1
Subordinated Debentures (Tables)
 12 Months Ended
Dec. 31, 2018
Subordinated Borrowings [Abstract]  
Schedule of Subordinated Debentures [Table Text Block]

The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II at December 31, 2018 and December 31, 2017.

 

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  01/23/2034  01/23/2009
v3.10.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The current and deferred amounts of income tax expense for 2018, 2017 and 2016 are as follows (dollars in thousands): 

 

   2018   2017   2016 
Current:               
Federal  $8,902   $21,090   $10,173 
State   954    505    (366) 
Subtotal   9,856    21,595    9,807 
Deferred:               
Federal   2,455    3,876    2,682 
State   (1,529)    (177)    (713) 
Subtotal   926    3,699    1,969 
Income tax expense  $10,782   $25,294   $11,776 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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):

 

   2018   2017   2016 
Income before income tax expense  $71,134   $68,514   $42,858 
Federal statutory rate   21%   35%   35%
Computed “expected” Federal income tax expense   14,938    23,980    15,000 
State tax, net of federal tax benefit   1,104    213    (701) 
Impact of “the Act”   (790)    5,623    - 
Impact of “the Bill”   (618)    -    - 
Bank owned life insurance   (650)    (1,113)    (896) 
Tax-exempt interest and dividends   (1,521)    (2,123)    (1,714) 
Tax benefits from stock based compensation   (1,100)    (348)    - 
Other, net   (581)    (938)    87 
Income tax expense  $10,782   $25,294   $11,776
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred tax asset and deferred tax liability at December 31, 2018 and 2017 are presented in the following table:

 

   2018   2017 
   (dollars in thousands) 
Deferred tax assets          
Allowance for loan losses   10,358    8,848 
Purchase accounting   307    2,310 
Pension actuarial losses   2,203    1,647 
New Jersey net operating loss   2,796    1,310 
Deferred compensation   1,234    1,184 
Unrealized losses on securities and swaps   1,620    483 
Deferred loan costs, net of fees   19    474 
Accrued rent   426    459 
Capital lease   232    211 
Nonaccrual interest   95    158 
Other   -    7 
Total deferred tax assets  $19,290   $17,091 
Deferred tax liabilities          
Employee benefit plans  $(2,167)   $(1,501) 
Depreciation   (512)    (434) 
Prepaid expenses   (185)    (174) 
Market discount accretion   (414)    (60) 
Unrealized gains on securities and swaps   (366)    (224) 
Other   (198)    (28) 
Total deferred tax liabilities   (3,842)   (2,421) 
Net deferred tax assets  $15,448   $14,670 
v3.10.0.1
Offsetting Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2018
Offsetting [Abstract]  
Schedule of financial instruments that are eligible for offset [Table Text Block]

The following table presents information about financial instruments that are eligible for offset as of December 31, 2018 and December 31, 2017:

 

               Gross Amounts Not Offset 
   Gross Amounts
Recognized		   Gross Amounts
Offset in the
Statement of
Financial
Condition		   Net Amounts
of Assets
Presented in the
Statement of
Financial
Condition		   Financial
Instruments
Recognized		   Cash or
Financial
Instrument
Collateral		   Net
Amount		 
   (dollars in thousands) 
December 31, 2018                              
Assets:                              
Interest rate swaps  $1,159   $-   $1,159   $-   $-   $1,159 
December 31, 2017                              
Assets:                              
Interest rate swaps  $798   $-   $798   $-   $-   $798 
v3.10.0.1
Commitments, Contingencies and Concentrations of Credit Risk (Tables)
 12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Supply Commitment [Table Text Block]

The following table provides a summary of financial instruments with off-balance sheet risk at December 31, 2018 and 2017:

 

   2018   2017 
   (dollars in thousands) 
Commitments under commercial loans and lines of credit  $425,189   $344,142 
Home equity and other revolving lines of credit   39,965    44,483 
Outstanding commercial mortgage loan commitments   355,914    254,710 
Standby letters of credit   36,141    34,114 
Overdraft protection lines   836    688 
Total  $858,045   $678,137 
v3.10.0.1
Transactions with Executive Officers, Directors and Principal Stockholders (Tables)
 12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions [Table Text Block]

Loans to principal officers, directors, and their affiliates during the years ended December 31, 2018 and 2017 were as follows:

 

   2018    2017   
   (dollars in thousands) 
Balance, January 1  $56,300   $49,710 
New loans   5,041    11,089 
Repayments   (4,438)    (4,499) 
Balance, December 31  $56,903   $56,300 
v3.10.0.1
Stockholders' Equity and Regulatory Requirements (Tables)
 12 Months Ended
Dec. 31, 2018
Stockholders' Equity Note [Abstract]  
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

The following is a summary of the Bank’s and the Parent Corporation’s actual capital amounts and ratios as of December 31, 2018 and 2017, compared to the FRB and FDIC minimum capital adequacy requirements and the FDIC requirements for classification as a well-capitalized institution.

 

       Minimum
Capital Adequacy		   For Classification
Under Corrective
Action Plan
as Well Capitalized		 
   Amount   Ratio   Amount   Ratio   Amount   Ratio 
The Bank          (dollars in thousands)         
December 31, 2018                              
Leverage (Tier 1) capital  $552,311    10.78%   $204,973    4.00%   $256,217    5.00% 
Risk-Based Capital:                              
CET 1  $552,311    11.37%   $218,589    4.50%   $315,740    6.50% 
Tier 1   552,311    11.37%   291,452    6.00%    388,603    8.00% 
Total   619,515    12.75%    388,603    8.00%    485,754    10.00% 
                               
December 31, 2017                               
 Leverage (Tier 1) capital  $468,899    9.84%   $190,665    4.00%   $238,332    5.00% 
Risk-Based Capital:                              
CET 1  $468,899    10.21%   $206,721    4.50%   $298,597    6.50% 
Tier 1   468,899    10.21%   275,628    6.00%    367,504    8.00% 
Total   500,647    10.90%   367,504    8.00%    459,379    10.00% 

 

       Minimum Capital
Adequacy		   For Classification
as Well Capitalized
   Amount   Ratio   Amount   Ratio   Amount  Ratio
The Company          (dollars in thousands)       
December 31, 2018                          
Leverage (Tier 1) capital  $478,876    9.34%   $204,995    4.00%   N/A   N/A
Risk-Based Capital:                          
CET 1  $473,721    9.75%   $218,585    4.50%  N/A   N/A
Tier 1   478,876    9.86%    291,446    6.00%   N/A   N/A
Total   638,830    13.15%    388,595    8.00%   N/A   N/A
                           
December 31, 2017                          
Leverage (Tier 1) capital  $425,407    8.92%   $190,728    4.00%   N/A   N/A
Risk-Based Capital:                          
CET 1  $420,252    9.15%   $206,742    4.50%   N/A   N/A
Tier 1   425,407    9.26%    275,656    6.00%   N/A   N/A
Total   507,155    11.04%    367,542    8.00%   N/A   N/A
v3.10.0.1
Comprehensive Income (Tables)
 12 Months Ended
Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Comprehensive Income (Loss) [Table Text Block]

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, obligations for defined benefit pension plan and an adjustment to reflect the curtailment of the Company’s defined benefit pension plan, net of taxes.

 

Details about Accumulated Other
Comprehensive Income (Loss) Components		  Amounts Reclassified from Accumulated
Other Comprehensive Income (Loss)		   Affected Line Item in the Consolidated
Statements of Income
   Year ended
December 31,		    
(dollars in thousands)  2018   2017   2016    
Sale of investment securities available-for-sale  $-   $1,596   $4,234   Net gains on sale of investment securities
    -    (579)    (1,682)   Income tax expense
    -    1,017    2,552    
Amortization of unrealized holding (losses) gains on securities transferred from available-for-sale to held-to-maturity   -    -    (1,986)   Interest income
    -    -    813   Income tax benefit
    -    -    (1,173)    
Amortization of pension plan net actuarial losses   (359)    (412)    (407)   Salaries and employee benefits
    101    169    165   Income tax benefit
    (258)    (243)    (242)    
Total reclassification  $(258)  $774   $1,137    
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Accumulated other comprehensive loss at December 31, 2018 and 2017 consisted of the following:

 

   2018   2017 
   (dollars in thousands) 
Investment securities available-for-sale, net of tax  $(5,841)   $(902) 
Cash flow hedge, net of tax   837    472 
Defined benefit pension and post-retirement plans, net of tax   (3,785)   (3,589) 
 Total  $(8,789)   $(4,019) 
v3.10.0.1
Pension and Other Benefits (Tables)
 12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Schedule of Changes in Projected Benefit Obligations [Table Text Block]

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 at December 31, 2018 and 2017.

 

   2018   2017 
   (dollars in thousands) 
Change in Benefit Obligation:          
Projected benefit obligation at January 1,  $13,129   $12,682 
Interest cost   427    478 
Actuarial (gain) loss   (1,716)    879 
Benefits paid   (871)   (910)
Projected benefit obligation at December 31,  $10,969   $13,129 
Change in Plan Assets:          
Fair value of plan assets at January 1,  $12,609   $12,002 
Actual return on plan assets   (715)    1,517 
Employer contributions   2,000    - 
Benefits paid   (871)    (910) 
Fair value of plan assets at December 31,  $13,023   $12,609 
Funded status  $2,054   $(520)
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block]

The Company expects to recognize approximately $358,000 of the net actuarial loss reported in the following table as of December 31, 2018 as a component of net periodic pension expense during 2019.

 

   2018   2017         
   (dollars in thousands)         
Net actuarial loss recognized in accumulated other comprehensive income  $5,265   $5,860         
Schedule of Net Benefit Costs [Table Text Block]

The net periodic pension expense and other comprehensive income (before tax) for 2018, 2017 and 2016 includes the following:

 

   2018    2017    2016  
   (dollars in thousands) 
Interest cost  $427   $478   $514 
Expected return on plan assets   (765)    (640)    (617) 
Net amortization   366    412    407 
Total net periodic pension expense  $28   $250   $304 
                
Total gain recognized in other comprehensive income   (595)    (410)    (405) 
Total recognized in net periodic expense and other comprehensive income (before tax)  $(567)   $(160)   $(101) 
Schedule of Retrospective Application to Consolidated Statement of Condition [Table Text Block]

This ASU is also required to be applied retrospectively to all periods presented. The following table summarizes the impact of retrospective application to the Consolidated Statement of Condition for the period presented:

 

   2017    2016  
         
Other components of net periodic pension expense          
As previously reported  $-   $- 
As reported under the new guidance   250    304 
           
Salaries and employee benefits          
As previously reported  $35,128   $31,030 
As reported under the new guidance   34,878    30,726
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]

The following table presents the weighted average assumptions used to determine the pension benefit obligations at December 31, for the following three years.

 

   2018    2017    2016  
Discount rate   4.05%   3.41%   3.88%
Rate of compensation increase    N/A     N/A     N/A 

 

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

 

   2018    2017    2016  
   (dollars in thousands) 
Discount rate   4.05%   3.41%   3.88%
Expected long-term return on plan assets   5.50%   5.50%   5.50%
Rate of compensation increase    N/A     N/A     N/A 
Schedule of Allocation of Plan Assets [Table Text Block]

The Company’s pension plan asset allocation as of December 31, 2018 and 2017, target allocation, and expected long-term rate of return by asset are as follows:

 

   Target
Allocation 		   % of Plan
Assets –
Year Ended
2018 		   % of Plan
Assets –
Year Ended
2017		   Weighted
Average
Expected
Long-Term
Rate of
Return		 
Equity Securities                    
Domestic   50%    53%    41%    3.4% 
International   10%    7%   8%    0.7% 
Debt and/or fixed income securities   36%    36%    49%    1.2% 
Cash and other alternative investments, including real estate funds, commodity funds, hedge funds and equity structured notes   4%    4%    2%    0.2% 
Total   100%   $100%   $100%   $5.5% 
Schedule of Changes in Fair Value of Plan Assets [Table Text Block]

The fair values of the Company’s pension plan assets at December 31, 2018 and 2017, by asset class, are as follows:

 

   December 31,
2018		   Fair Value Measurements at Reporting Date Using 
Asset Class      Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
   (dollars in thousands) 
Cash  $298   $298   $-   $- 
Equity securities:                    
U.S. companies   6,957    6,957    -    - 
International companies   901    901    -    - 
Debt and/or fixed income securities   4,651    4,651           
Commodity funds   161    161           
Real estate funds   55    55    -    - 
Total  $13,023   $13,023   $-   $- 
                     
   December 31,
2017		   Fair Value Measurements at Reporting Date Using 
Asset Class      Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
   (dollars in thousands) 
Cash  $175   $175   $-   $- 
Equity securities:                    
U.S. companies   5,175    5,175    -    - 
International companies   1,056    1,056    -    - 
Debt and/or fixed income securities   6,139    6,139           
Real estate funds   64    64    -    - 
Total  $12,609   $12,609   $-   $- 
Schedule of Defined Benefit Plans Disclosures [Table Text Block]

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

 

2019  $716 
2020   712 
2021   724 
2022   709 
2023   697 
2024-2028   3,514 
v3.10.0.1
Stock Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

Activity under the Company’s options as of and for the year ended December 31, 2018 was as follows: 

 

   Number of
Stock
Options		   Weighted-
Average
Exercise
Price		   Weighted-
Average
Remaining
Contractual
Term
(in years)		   Aggregate
Intrinsic Value		 
Outstanding at December 31, 2017   299,778   $6.18           
Granted   -                
Exercised   (189,992)    4.89           
Forfeited/cancelled/expired   (1,323)    14.24           
Outstanding at December 31, 2018   108,463    8.35    2.8   $1,097,806 
                     
Exercisable at December 31, 2018   108,463   $8.35    2.8   $1,097,806 
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

Activity under the Company’s restricted shares for the year ended December 31, 2018 was as follows: 

 

   Nonvested
Shares		   Weighted-
Average
Grant Date
Fair Value		 
Nonvested at December 31, 2017   103,078   $20.41 
Granted   24,684    27.86 
Vested   (58,668)    18.89 
Forfeited/cancelled/expired   (666)    24.25 
Nonvested at December 31, 2018   68,428    23.04 
Schedule of Unearned Performance Unit Awards [Table Text Block]

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

 

   Units
(expected)		   Units
(maximum)		   Weighted
Average Grant
Date Fair
Value		 
Unearned at December 31, 2017   151,194        $19.19 
Awarded   19,614         31.35 
Change in Estimate   (15,172)           
Vested   (69,627)         19.46 
Unearned at December 31, 2018   86,009    151,772   $22.06 
Schedule of Unearned Restricted Unit Awards [Table Text Block]

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

 

   Units
(expected)		   Weighted
Average Grant
Date Fair
Value		 
Unearned at December 31, 2017   -   $- 
Awarded   29,423    31.35 
Forfeited   -    - 
Vested   -    - 
Unearned at December 31, 2018   29,423   $31.35 
v3.10.0.1
Derivatives (Tables)
 12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Interest Rate Derivatives [Table Text Block]

Summary information about the interest rate swap designated as a cash flow hedges as of year-end is as follows:

 

   December 31,
2018		   December 31,
2017		 
   (dollars in thousands) 
Notional amount  $75,000   $100,000 
Weighted average pay rates   1.70%   1.66% 
Weighted average receive rates   2.19%   1.23% 
Weighted average maturity   2.0 years    2.4 years 
Fair value  $1,159   $798 
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]

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:

 

 2018 
(dollars in thousands)  Amount of gain
(loss) recognized
in OCI (Effective
Portion)		   Amount of (gain)
loss reclassified
from OCI to
interest expense		   Amount of gain (loss)
recognized in other
Noninterest income
(Ineffective Portion)		 
Interest rate contracts  $825   $(464)  $- 
     
 2017 
(dollars in thousands)  Amount of gain
(loss) recognized
in OCI (Effective
Portion)		   Amount of (gain)
loss reclassified
from OCI to
interest expense		   Amount of gain (loss)
recognized in other
Noninterest income
(Ineffective Portion)		 
Interest rate contracts  $304   $406   $- 
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following table reflects the cash flow hedges included in the Consolidated Statements of Condition as of December 31, 2018 and December 31, 2017:

 

   2018   2017 
(dollars in thousands)  Notional
Amount		   Fair Value   Notional
Amount		   Fair Value 
Included in other assets/(liabilities):                    
Interest rate swaps related to FHLB Advances  $75,000   $1,159   $100,000   $798 
v3.10.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

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 at December 31, 2018 and December 31, 2017 are as follows:

 

       December 31, 2018
Fair Value Measurements at Reporting Date Using		 
   Total Fair Value   Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
(dollars in thousands)                
Recurring fair value measurements:                    
Assets                    
Investment securities:                    
Available-for-sale:                    
Federal agency obligations  $44,955   $-   $44,955   $- 
Residential mortgage pass-through securities   185,204    -    185,204    - 
Commercial mortgage pass-through securities   3,874    -    3,874    - 
Obligations of U.S. states and political subdivision   139,185    -    129,808    9,377 
Corporate bonds and notes   25,813    -    25,813    - 
Asset-backed securities   9,691    -    9,691    - 
Certificates of deposit   322    -    322    - 
Other securities   2,990    2,990    -    - 
Total available-for-sale  $412,034   $2,990   $399,667   $9,377 
                     
Equity securities   11,460    11,460    -    - 
Derivatives   1,159    -    1,159    - 
Total assets  $424,653   $14,450   $400,826   $9,377 

 

       December 31, 2017
Fair Value Measurements at Reporting Date Using		 
   Total Fair Value   Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
(dollars in thousands)                
Recurring fair value measurements:                    
Assets                    
Investment securities:                    
Available-for-sale:                    
Federal agency obligations  $56,022   $-   $56,022   $- 
Residential mortgage pass-through securities   181,891    -    181,891    - 
Commercial mortgage pass-through securities   4,054    -    4,054    - 
Obligations of U.S. states and political subdivision   131,128    -    121,496    9,632 
Trust preferred securities   4,671    -    4,671    - 
Corporate bonds and notes   29,693    -    29,693    - 
Asset-backed securities   12,050    -    12,050    - 
Certificates of deposit   625    -    625    - 
Equity securities   11,728    11,728    -    - 
Other securities   3,422    3,422    -    - 
Total available-for-sale  $435,284   $15,150   $410,502   $9,632 
Derivatives   798    -    798    - 
Total assets  $436,082   $15,150   $411,300   $9,632 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

For assets measured at fair value on a non-recurring basis, the fair value measurements at December 31, 2018 and December 31, 2017 are as follows:

 

       Fair Value Measurements at Reporting Date Using 
Assets measured at fair value on a nonrecurring basis:  December 31,
2018		   Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
Impaired loans:  (dollars in thousands) 
Commercial real estate  $1,481   $-   $-   $1,481 
Residential   231    -    -    231 
                     
       Fair Value Measurements at Reporting Date Using 
Assets measured at fair value on a nonrecurring basis:  December 31,
2017		   Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
Impaired loans:  (dollars in thousands) 
Commercial real estate  $1,094   $-   $-   $1,094 
Fair Value, by Balance Sheet Grouping [Table Text Block]

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, 2018 and December 31, 2017:

 

           Fair Value Measurements 
   Carrying
Amount		   Fair
Value		   Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		 
   (dollars in thousands) 
December 31, 2018                         
Financial assets:                         
Cash and due from banks  $172,366   $172,366   $172,366   $-   $- 
Investment securities available-for-sale   412,034    412,034    2,990    399,667    9,377 
Restricted investment in bank stocks   31,136    n/a    n/a    n/a    n/a 
Equity securities   11,460    11,460    11,460    -    - 
Net loans (1)   4,506,138    4,402,878    -    -    4,402,878 
Derivatives   1,159    1,159    -    1,159    - 
Accrued interest receivable   18,214    18,214    -    2,064    16,150 
                          
Financial liabilities:                         
Noninterest-bearing deposits   768,584    768,584    768,584    -    - 
Interest-bearing deposits   3,323,508    3,320,640    1,957,503    1,363,137    - 
Borrowings   600,001    598,598    -    598,598    - 
Subordinated debentures   128,556    132,426    -    132,426    - 
Accrued interest payable   6,764    6,764    -    6,764    - 
                          
December 31, 2017                         
Financial assets:                         
Cash and due from banks  $149,582   $149,582   $149,582   $-   $- 
Investment securities available-for-sale   435,284    435,284    15,150    410,502    9,632 
Restricted investment in bank stocks   33,497    n/a    n/a    n/a    n/a 
Loans held-for-sale   24,845    24,845    -    370    24,475 
Net loans   4,139,708    4,118,542    -    -    4,118,542 
Derivatives   798    798    -    798    - 
Accrued interest receivable   15,470    15,470    -    2,051    13,419 
                          
Financial liabilities:                         
Noninterest-bearing deposits   776,843    776,843    776,843    -    - 
Interest-bearing deposits   3,018,285    3,018,285    1,842,151    1,176,134    - 
Borrowings   670,077    669,680    -    669,680    - 
Subordinated debentures   54,699    57,340    -    57,340    - 
Accrued interest payable   3,707    3,707    -    3,707    - 

 

(1)ASU 2016-01 requires the use of an exit price in fair value disclosures. Historically (prior to January 1, 2018) the Company used an entry price in the estimate of fair value loans.
Fair Value, Recurring basis [Table Text Block]

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 year ended December 31, 2018 and year ended December 31, 2017:

 

   Municipal
Securities		 
   (dollars in thousands) 
Beginning balance, January 1, 2018  $9,632 
Principal paydowns   (255) 
Ending balance, December 31, 2018  $9,377 
      
   Municipal
Securities		 
   (dollars in thousands) 
Beginning balance, January 1, 2017  $18,218 
Principal paydowns   (8,586) 
Ending balance, December 31, 2017  $9,632 
Significant unobservable inputs used in fair value measurements [Table Text Block]

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 at December 31, 2018 and December 31, 2017. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

 

December 31, 2018

   Fair Value   Valuation
Techniques		  Unobservable
Input		  Range 
Securities available-for-sale:      (dollars in thousands)       
Municipal securities  $9,377   Discounted cash flows  Discount rate   2.9% 

 

December 31, 2017

   Fair Value   Valuation
Techniques		  Unobservable
Input		  Range 
Securities available-for-sale:      (dollars in thousands)       
Municipal securities  $9,632   Discounted cash flows  Discount rate   2.9% 
Fair Value Measurements, Nonrecurring [Table Text Block]

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, 2018

(dollars in thousands)  Fair Value   Valuation
Techniques		  Unobservable
Input		  Range (weighed average)
Impaired loans:              
Commercial real estate  $1,481   Appraisals of collateral value  Comparable sales  6% - 9% (8%)
               
Residential  $231   Appraisals of collateral value  Comparable sales  0% - 10% (5%)

 

December 31, 2017

(dollars in thousands)  Fair Value   Valuation
Techniques		  Unobservable
Input		  Range (weighed average)
Impaired loans:              
Commercial real estate  $1,094   Appraisals of collateral value  Comparable sales  0% - 10% (5%)
v3.10.0.1
Parent Corporation Only Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2018
Condensed Financial Information Disclosure [Abstract]  
Condensed Balance Sheet [Table Text Block]

Condensed Statements of Condition

 

   At December 31, 
   2018   2017 
   (dollars in thousands) 
ASSETS          
Cash and cash equivalents  $22,071   $7,506 
Investment in subsidiaries   692,516    614,083 
Receivable due from subsidiaries   32,250    - 
Investments securities available-for-sale   176    779 
Equity securities (1)   607    - 
Other assets   1,282    322 
Total assets  $748,902   $622,690 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Other liabilities  $6,419   $2,554 
Subordinated debentures   128,556    54,699 
Stockholders’ equity   613,927    565,437 
Total liabilities and stockholders’ equity  $748,902   $622,690 

 

  (1) Beginning January 1, 2018, equity securities were reclassified out of investment securities available-for-sale in conjunction with ASU 2016-01.
Condensed Income Statement [Table Text Block]

Condensed Statements of Income

 

   For Years Ended December 31, 
   2018   2017   2016 
   (dollars in thousands) 
Income:               
Dividend income from subsidiaries  $16,700   $13,000   $12,400 
Other income   1,618    13    8 
Total Income   18,318    13,013    12,408 
Expenses   (7,201)   (3,251)   (3,252)
Income before equity in undistributed earnings of subsidiaries   11,117    9,762    9,156 
Equity in undistributed earnings of subsidiaries   49,235    33,458    21,926 
Net Income  $60,352   $43,220   $31,082 
Condensed Cash Flow Statement [Table Text Block]

Condensed Statements of Cash Flows

 

   For Years Ended December 31 
   2018   2017   2016 
   (dollars in thousands) 
Cash flows from operating activities:               
Net income  $60,352   $43,220   $31,082 
Adjustments to reconcile net income to net cash provided by operating activities:               
Equity in undistributed earnings of subsidiary   (49,235)   (33,458)   (21,926)
Loss on equity securities, net   4    -    - 
(Increase) decrease in other assets   (627)   269    2,023 
Increase (decrease) in other liabilities   3,843    (151)   544 
Net cash provided by operating activities   14,337    9,880    11,723 
                
Cash flows from investing activities:               
Purchase of available-for-sale securities   (8)   (7)   - 
Capital infusion to subsidiary   (64,500)   -    (38,439)
Net cash used in investing activities   (64,508)   (7)   (38,439)
                
Cash flows from financing activities:               
Proceeds from subordinated debt   73,525    -    - 
Cash dividends on common stock   (9,664)   (9,612)   (9,067)
Cash dividends on preferred stock   -    -    (22)
Secondary offering and issuance of common stock   -    (180)   38,439 
Redemption of preferred stock   -    -    (11,250)
Proceeds from exercise of stock options   875    417    767 
Net cash provided by (used in) financing activities   64,736    (9,375)   18,867 
                
Increase (decrease) in cash and cash equivalents   14,565    498    (7,849)
Cash and cash equivalents at January 1,   7,506    7,008    14,857 
Cash and cash equivalents at December 31,  $22,071   $7,506   $7,008 
v3.10.0.1
Quarterly Financial Information of ConnectOne Bancorp, Inc. (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information [Table Text Block]
  2018 
   4th Quarter   3rd Quarter   2nd Quarter   1st Quarter 
   (dollars in thousands, except per share data) 
Total interest income  $57,223   $55,351   $53,084   $50,475 
Total interest expense   17,062    15,389    14,139    12,328 
Net interest income   40,161    39,962    38,945    38,147 
Provision for loan losses   1,100    1,100    1,100    17,800 
Total other income, net of securities gains   1,515    1,429    1,388    1,407 
Other expenses   18,266    18,287    17,108    17,059 
Income before income taxes   22,310    22,004    22,125    4,695 
Income tax expense   3,638    2,102    4,598    444 
Net income   18,672    19,902    17,527    4,251 
Earnings per share:                    
Basic  $0.58   $0.62   $0.54   $0.13 
Diluted   0.58    0.61    0.54    0.13 

 

   2017 
   4th Quarter   3rd Quarter   2nd Quarter   1st Quarter 
   (dollars in thousands, except per share data) 
Total interest income  $50,211   $46,338   $43,691   $41,084 
Total interest expense   10,403    9,319    8,590    7,943 
Net interest income   39,808    37,019    35,101    33,141 
Provision for loan losses   2,000    1,450    1,450    1,100 
Total other income, net of securities gains   2,024    1,756    1,422    1,406 
Net securities gains   -    -    -    1,596 
Other expenses   16,566    18,641    25,303    18,249 
Income before income taxes   23,266    18,684    9,770    16,794 
Income tax expense   12,686    5,607    2,087    4,914 
Net income   10,580    13,077    7,683    11,880 
Earnings per share:                    
Basic  $0.33   $0.41   $0.24   $0.37 
Diluted   0.33    0.41    0.24    0.37 
v3.10.0.1
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2018
Revenue Recognition Tables Abstract  
Schedule of Revenue from Contracts with Customers [Table Text Block]

The following table presents the Company’s sources of noninterest income for the year ended December 31, 2018 and 2017. Items outside of ASC 606 are noted as such.

 

   Year Ended
December 31,
2018		   Year Ended
December 31,
2017(2)		 
   (dollars in thousands) 
Noninterest income          
Service charges on deposits          
Overdraft fees  $847   $809 
Other   607    736 
Interchange income   628    675 
Net gains on sales of loans(1)   61    708 
Wire transfer fees(1)   309    251 
Loan servicing fees(1)   94    108 
Bank owned life insurance(1)   3,094    3,181 
Net gains on sales of securities(1)   -    1,596 
Annuity and insurance income(1)   -    39 
Other   99    101 
Total noninterest income  $5,739   $8,204 

 

(1)Not within scope of ASC 606.
(2)The Company elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation.
v3.10.0.1
Summary of Significant Accounting Policies (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
USD ($)
Integer
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]  
Number of Operating Segments | Integer 5
Maximum Maturity of Cash and Cash Equivalents 90 days
Loans Delinquent Period 90 days
Non Accrual Contractual Due 90 days
Non Accrual Payment Status 90 days
Threshold Amount of Loan for Evaluation of Impairment | $ $ 250
Rolling Calculations Years 3 years
Effective Income Tax Rate Reconciliation, Deduction, Medicare Prescription Drug Benefit, Percent 50.00%
Minimum [Member] | Furniture Fixtures And Equipment [Member]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
Minimum [Member] | Land, Buildings and Improvements [Member]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]  
Property, Plant and Equipment, Useful Life 4 years
Maximum [Member] | Furniture Fixtures And Equipment [Member]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]  
Property, Plant and Equipment, Useful Life 7 years
Maximum [Member] | Land, Buildings and Improvements [Member]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]  
Property, Plant and Equipment, Useful Life 30 years
v3.10.0.1
Earnings per Common Share (Details) - Schedule of earnings per common share - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Earnings Per Share [Abstract]                      
Net income available to common stockholders                 $ 60,352 $ 43,220 $ 31,060
Earnings allocated to participating securities                 (139) (141) (147)
Income attributable to common stock                 $ 60,213 $ 43,079 $ 30,913
Weighted average common shares outstanding, including participating securities                 32,198 31,943 30,453
Weighted average participating securities                 (74) (41) (54)
Weighted average common shares outstanding                 32,124 31,902 30,399
Incremental shares from assumed conversions of options, performance units and restricted shares                 233 335 291
Weighted average common and equivalent shares outstanding                 32,357 32,237 30,690
Earnings per common share:                      
Basic $ 0.58 $ 0.62 $ 0.54 $ 0.13 $ 0.33 $ 0.41 $ 0.24 $ 0.37 $ 1.87 $ 1.35 $ 1.02
Diluted $ 0.58 $ 0.61 $ 0.54 $ 0.13 $ 0.33 $ 0.41 $ 0.24 $ 0.37 $ 1.86 $ 1.34 $ 1.01
v3.10.0.1
Investment Securities (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
USD ($)
Integer
Dec. 31, 2017
USD ($)
Integer
Investments, Debt and Equity Securities [Abstract]    
Number of Investment Securities Sold | Integer 148 112
Available-for-sale Securities Pledged as Collateral | $ $ 151,500 $ 157,800
v3.10.0.1
Investment Securities (Details) - Unrealized gains on investment securities - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost $ 419,947 $ 436,868
Investment Securities Available-for-Sale, Gross Unrealized Gains 1,297 2,886
Investment Securities Available-for-Sale, Gross Unrealized Losses (9,210) (4,470)
Investment Securities Available-for-Sale, Fair Value 412,034 435,284
Federal Agency Obligations [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 45,509 56,297
Investment Securities Available-for-Sale, Gross Unrealized Gains 51 141
Investment Securities Available-for-Sale, Gross Unrealized Losses (605) (416)
Investment Securities Available-for-Sale, Fair Value 44,955 56,022
Residential Mortgage Backed Securities [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 189,721 183,509
Investment Securities Available-for-Sale, Gross Unrealized Gains 85 330
Investment Securities Available-for-Sale, Gross Unrealized Losses (4,602) (1,948)
Investment Securities Available-for-Sale, Fair Value 185,204 181,891
Commercial Mortgage Backed Securities [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 3,919 4,054
Investment Securities Available-for-Sale, Gross Unrealized Gains 3
Investment Securities Available-for-Sale, Gross Unrealized Losses (45) (3)
Investment Securities Available-for-Sale, Fair Value 3,874 4,054
US States and Political Subdivisions Debt Securities [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 141,496 130,723
Investment Securities Available-for-Sale, Gross Unrealized Gains 1,091 1,739
Investment Securities Available-for-Sale, Gross Unrealized Losses (3,402) (1,334)
Investment Securities Available-for-Sale, Fair Value 139,185 131,128
Trust Preferred Securities [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 4,577
Investment Securities Available-for-Sale, Gross Unrealized Gains 205
Investment Securities Available-for-Sale, Gross Unrealized Losses (111)
Investment Securities Available-for-Sale, Fair Value 4,671
Corporate Bonds And Notes [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 26,308 29,801
Investment Securities Available-for-Sale, Gross Unrealized Gains 45 163
Investment Securities Available-for-Sale, Gross Unrealized Losses (540) (271)
Investment Securities Available-for-Sale, Fair Value 25,813 29,693
Asset-backed Securities [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 9,685 12,021
Investment Securities Available-for-Sale, Gross Unrealized Gains 22 66
Investment Securities Available-for-Sale, Gross Unrealized Losses (16) (37)
Investment Securities Available-for-Sale, Fair Value 9,691 12,050
Certificates of Deposit [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 319 621
Investment Securities Available-for-Sale, Gross Unrealized Gains 3 4
Investment Securities Available-for-Sale, Gross Unrealized Losses
Investment Securities Available-for-Sale, Fair Value 322 625
Equity Securities [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost   11,843
Investment Securities Available-for-Sale, Gross Unrealized Gains   235
Investment Securities Available-for-Sale, Gross Unrealized Losses   (350)
Investment Securities Available-for-Sale, Fair Value 11,460 11,728
Other Securities [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 2,990 3,422
Investment Securities Available-for-Sale, Gross Unrealized Gains
Investment Securities Available-for-Sale, Gross Unrealized Losses
Investment Securities Available-for-Sale, Fair Value $ 2,990 $ 3,422
v3.10.0.1
Investment Securities (Details) - Investments classified by maturity date - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Investment securities available-for-sale:    
Due in one year or less, amortized cost $ 2,355  
Due in one year or less, fair value 2,358  
Due after one year through five years, amortized cost 36,338  
Due after one year through five years, fair value 35,953  
Due after five years through ten years, amortized cost 28,067  
Due after five years through ten years, fair value 28,375  
Due after ten years, amortized cost 156,557  
Due after ten years, fair value 153,280  
Total 419,947 $ 436,868
Total 412,034  
Residential Mortgage Backed Securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Amortized Cost 189,721  
Investment Securities Available-for-Sale: Fair Value 185,204  
Total 189,721 183,509
Commercial Mortgage Backed Securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Amortized Cost 3,919  
Investment Securities Available-for-Sale: Fair Value 3,874  
Total 3,919 4,054
Other Securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Amortized Cost 2,990  
Investment Securities Available-for-Sale: Fair Value 2,990  
Total $ 2,990 $ 3,422
v3.10.0.1
Investment Securities (Details) - Schedule of realized gains and losses - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]      
Proceeds $ 29,543 $ 85,253
Gross gains on sales of investment securities 1,596 4,234
Gross losses on sales of investment securities
Net gains on sales of investment securities 1,596 4,234
Tax provision on net gains (579) (1,682)
Net gains on sales of investment securities, after tax $ 1,017 $ 2,552
v3.10.0.1
Investment Securities (Details) - Schedule of unrealized losses not recognized in income - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value $ 301,569 $ 278,357
Investment Securities Available-for-Sale: Total, Unrealized Losses (9,210) (4,470)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 60,601 168,028
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (559) (1,631)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 240,968 110,329
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (8,651) (2,839)
Federal Agency Obligations [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value 35,472 39,813
Investment Securities Available-for-Sale: Total, Unrealized Losses (605) (416)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 810 28,407
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (1) (213)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 34,662 11,406
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (604) (203)
Residential Mortgage Backed Securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value 178,365 148,574
Investment Securities Available-for-Sale: Total, Unrealized Losses (4,602) (1,948)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 42,040 117,556
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (393) (1,146)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 136,325 31,018
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (4,209) (802)
Commercial Mortgage Backed Securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value 3,874 1,198
Investment Securities Available-for-Sale: Total, Unrealized Losses (45) (3)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 1,198
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (3)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 3,874
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (45)
Obligation Of U.S. States And Political Subdivisions [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value 64,367 57,685
Investment Securities Available-for-Sale: Total, Unrealized Losses (3,402) (1,334)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 7,765 17,909
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (21) (246)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 56,602 39,776
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (3,381) (1,088)
Corporate Bonds And Notes [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value 15,534 11,074
Investment Securities Available-for-Sale: Total, Unrealized Losses (540) (271)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 7,767 1,965
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (133) (21)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 7,767 9,109
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (407) (250)
Asset-backed Securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value 3,957 7,428
Investment Securities Available-for-Sale: Total, Unrealized Losses (16) (37)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 2,219 993
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (11) (2)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 1,738 6,435
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses $ (5) (35)
Trust Preferred Securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value   1,469
Investment Securities Available-for-Sale: Total, Unrealized Losses   (111)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value  
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses  
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value   1,469
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses   (111)
Equity Securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value   11,116
Investment Securities Available-for-Sale: Total, Unrealized Losses   (350)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value  
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses  
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value   11,116
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses   $ (350)
v3.10.0.1
Loans and the Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Financing Receivable, Impaired [Line Items]      
Loans held-for-sale $ 24,845  
Non Accrual Contractual Due 90 days    
Loans Pledged as Collateral $ 2,300 1,900  
Charge offs 18,011 239 $ 39,573
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans 23,300 5,600  
Troubled debt restructurings 34,500 20,500  
Current Troubled debt restructurings 11,200 14,900 13,300
Specific allowance 3 $ 39  
Troubled debt restructurings medallions $ 18,500    
Number of loans All 15 loans were accruing prior to modification, while 14 remained in accrual status post-modification.    
Taxi medallion loans [Member]      
Financing Receivable, Impaired [Line Items]      
Charge offs $ 1,700   36,700
Troubled debt restructurings $ 11,200    
Number of loans 27 taxi medallion loans    
Commercial loans held-for-sale segment [Member]      
Financing Receivable, Impaired [Line Items]      
Loans held-for-sale     $ 65,600
v3.10.0.1
Loans and the Allowance for Loan Losses (Details) - Composition of loan portfolio - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Financing Receivable, Impaired [Line Items]    
Gross loans $ 4,544,899 $ 4,174,810
Net deferred (fees) (3,807) (3,354)
Total loans receivable 4,541,092 4,171,456
Commercial Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 988,758 824,082
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 2,778,167 2,592,909
Construction Loans [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 465,389 483,216
Residential Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 309,991 271,795
Consumer Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans $ 2,594 $ 2,808
v3.10.0.1
Loans and the Allowance for Loan Losses (Details) - Loans held-for-sale - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Financing Receivable, Impaired [Line Items]    
Total carrying amount $ 24,845
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Total carrying amount 24,475
Residential Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Total carrying amount $ 370
v3.10.0.1
Loans and the Allowance for Loan Losses (Details) - Purchase credit impaired loans - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Financing Receivable, Impaired [Line Items]    
Total carrying amount $ 2,509 $ 2,683
Commercial Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Total carrying amount $ 2,509 $ 2,683
v3.10.0.1
Loans and the Allowance for Loan Losses (Details) - Schedule of accretable yield, or income expected to be collected - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Receivables [Abstract]    
Beginning balance $ 1,387 $ 2,860
Accretion of income (253) (1,473)
Ending balance $ 1,134 $ 1,387
v3.10.0.1
Loans and the Allowance for Loan Losses (Details) - Loans receivable on nonaccrual status - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Financing Receivable, Impaired [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status $ 51,855 $ 65,613
Commercial Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 29,340 47,363
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 15,135 12,757
Construction Loans [Member]    
Financing Receivable, Impaired [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 2,934
Residential Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status $ 4,446 $ 5,493
v3.10.0.1
Loans and the Allowance for Loan Losses (Details) - Credit quality indicators - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount $ 4,544,899 $ 4,174,810
Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 4,456,187 4,045,989
Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 21,460 43,620
Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 67,252 85,201
Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Commercial Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 988,758 824,082
Commercial Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 951,610 767,020
Commercial Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 3,371 3,764
Commercial Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 33,777 53,298
Commercial Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 2,778,167 2,592,909
Commercial Real Estate Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 2,742,989 2,534,973
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 12,574 34,335
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 22,604 23,601
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Construction Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 465,389 483,216
Construction Loans [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 453,598 475,066
Construction Loans [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 5,515 5,521
Construction Loans [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 6,276 2,629
Construction Loans [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Residential Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 309,991 271,795
Residential Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 305,414 266,163
Residential Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Residential Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 4,577 5,632
Residential Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Consumer Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 2,594 2,808
Consumer Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 2,576 2,767
Consumer Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Consumer Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 18 41
Consumer Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
v3.10.0.1
Loans and the Allowance for Loan Losses (Details) - Schedule of analysis of impaired loans, by class - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Financing Receivable, Impaired [Line Items]      
No related allowance recorded, Recorded Investment $ 58,184 $ 83,531 $ 29,747
No related allowance recorded, Unpaid Principal Balance 113,292 135,146 30,377
No Related Allowance Average Recorded Investment 62,896 43,415 29,872
No Related Allowance Interest Income Recognized 708 1,068 416
With an allowance recorded, Recorded Investment 1,748    
With an allowance recorded, Unpaid Principal Balance 1,754    
With an allowance recorded, Related Allowance 36    
With An Allowance Recorded Average Recorded Investment 1,776    
With An Allowance Recorded Interest Income Recognized 46    
Total, Recorded Investment 59,932 84,664 30,991
Total, Unpaid Principal Balance 115,046 136,279 31,621
Total, Related Allowance 36 39 145
Total Impaired Average Recorded Investment 64,672 44,567 31,146
Total Impaired Interest Income Recognized 754 1,119 416
Commercial Portfolio Segment [Member]      
Financing Receivable, Impaired [Line Items]      
No related allowance recorded, Recorded Investment 29,896 49,761 3,637
No related allowance recorded, Unpaid Principal Balance 83,596 101,066 4,063
No Related Allowance Average Recorded Investment 31,721 10,552 4,052
No Related Allowance Interest Income Recognized 66 161 64
With an allowance recorded, Recorded Investment 1,488 1,133 1,244
With an allowance recorded, Unpaid Principal Balance 1,488 1,133 1,244
With an allowance recorded, Related Allowance 7 39 145
With An Allowance Recorded Average Recorded Investment 1,511 1,152 1,274
With An Allowance Recorded Interest Income Recognized 46 51
Total, Recorded Investment 29,896 49,761 3,637
Total, Unpaid Principal Balance 83,596 101,066 4,063
Total, Related Allowance
Total Impaired Average Recorded Investment 31,721 10,765 4,052
Total Impaired Interest Income Recognized 66 161 64
Commercial Real Estate Portfolio Segment [Member]      
Financing Receivable, Impaired [Line Items]      
No related allowance recorded, Recorded Investment 16,839 23,905 18,288
No related allowance recorded, Unpaid Principal Balance 17,935 23,976 18,288
No Related Allowance Average Recorded Investment 17,676 24,099 18,532
No Related Allowance Interest Income Recognized 149 585 250
Total, Recorded Investment 18,327 25,038 19,532
Total, Unpaid Principal Balance 19,423 25,109 19,532
Total, Related Allowance 7 39 145
Total Impaired Average Recorded Investment 19,187 25,251 19,806
Total Impaired Interest Income Recognized 195 636 250
Construction Loans [Member]      
Financing Receivable, Impaired [Line Items]      
No related allowance recorded, Recorded Investment 9,240 6,662 5,909
No related allowance recorded, Unpaid Principal Balance 9,240 6,662 5,909
No Related Allowance Average Recorded Investment 11,215 5,509 5,308
No Related Allowance Interest Income Recognized 493 322 79
Total, Recorded Investment 9,240 6,662 5,909
Total, Unpaid Principal Balance 9,240 6,662 5,909
Total, Related Allowance
Total Impaired Average Recorded Investment 11,215 5,509 5,308
Total Impaired Interest Income Recognized 493 322 79
Residential Portfolio Segment [Member]      
Financing Receivable, Impaired [Line Items]      
No related allowance recorded, Recorded Investment 2,209 3,203 1,851
No related allowance recorded, Unpaid Principal Balance 2,521 3,442 2,055
No Related Allowance Average Recorded Investment 2,284 3,255 1,908
No Related Allowance Interest Income Recognized 19
With an allowance recorded, Recorded Investment 260    
With an allowance recorded, Unpaid Principal Balance 266    
With an allowance recorded, Related Allowance 29    
With An Allowance Recorded Average Recorded Investment 265    
With An Allowance Recorded Interest Income Recognized    
Total, Recorded Investment 2,469 3,203 1,851
Total, Unpaid Principal Balance 2,787 3,442 2,055
Total, Related Allowance 29
Total Impaired Average Recorded Investment 2,549 3,255 1,908
Total Impaired Interest Income Recognized 19
Consumer Portfolio Segment [Member]      
Financing Receivable, Impaired [Line Items]      
No related allowance recorded, Recorded Investment 62
No related allowance recorded, Unpaid Principal Balance 62
No Related Allowance Average Recorded Investment 72
No Related Allowance Interest Income Recognized 4
With An Allowance Recorded Average Recorded Investment    
With An Allowance Recorded Interest Income Recognized    
Total, Recorded Investment 62
Total, Unpaid Principal Balance 62
Total, Related Allowance
Total Impaired Average Recorded Investment 72
Total Impaired Interest Income Recognized $ 4
v3.10.0.1
Loans and the Allowance for Loan Losses (Details) - Aging analysis - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual $ 51,855 $ 65,613
Total Past Due 69,811 72,784
Current 4,475,088 4,102,026
Loans 4,544,899 4,174,810
30 - 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 13,786 3,849
60 - 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 2,523 1,658
90 Days or Greater Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 1,647 1,664
Commercial Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 29,340 47,363
Total Past Due 32,660 50,918
Current 956,098 773,164
Loans 988,758 824,082
Commercial Portfolio Segment [Member] | 30 - 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 1,673 1,708
Commercial Portfolio Segment [Member] | 60 - 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 183
Commercial Portfolio Segment [Member] | 90 Days or Greater Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 1,647 1,664
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 15,135 12,757
Total Past Due 23,137 14,777
Current 2,755,030 2,578,132
Loans 2,778,167 2,592,909
Loans Receivable > 90 Days Past Due and Accruing 0  
Commercial Real Estate Portfolio Segment [Member] | 30 - 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 6,162 545
Commercial Real Estate Portfolio Segment [Member] | 60 - 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 1,840 1,475
Commercial Real Estate Portfolio Segment [Member] | 90 Days or Greater Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due
Construction Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 2,934
Total Past Due 5,994
Current 459,395 483,216
Loans 465,389 483,216
Construction Loans [Member] | 30 - 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 2,496
Construction Loans [Member] | 60 - 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 564
Construction Loans [Member] | 90 Days or Greater Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due
Residential Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 4,446 5,493
Total Past Due 8,020 7,071
Current 301,971 264,724
Loans 309,991 271,795
Residential Portfolio Segment [Member] | 30 - 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 3,455 1,578
Residential Portfolio Segment [Member] | 60 - 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 119
Residential Portfolio Segment [Member] | 90 Days or Greater Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due
Consumer Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual
Total Past Due 18
Current 2,594 2,790
Loans 2,594 2,808
Consumer Portfolio Segment [Member] | 30 - 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 18
Consumer Portfolio Segment [Member] | 60 - 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due
Consumer Portfolio Segment [Member] | 90 Days or Greater Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due
v3.10.0.1
Loans and the Allowance for Loan Losses (Details) - Allowance for loan losses - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Allowance for loan and lease losses        
Allowance for loan and lease losses, individually evaluated for impairment $ 36 $ 39    
Allowance for loan and lease losses, collectively evaluated for impairment 33,718 29,909    
Allowance for loan and lease losses, acquired portfolio 1,200 1,800    
Allowance for loan and lease losses, acquired with deteriorated credit quality    
Allowance for loan and lease losses, total 34,954 31,748 $ 25,744 $ 26,572
Gross loans        
Loans Receivable, individually evaluated for impairment 59,932 84,664    
Loans Receivable, collectively evaluated for impairment 4,171,343 3,639,851    
Loans Receivable, acquired portfolio 311,115 447,612    
Loans Receivables, acquired with deteriorated credit quality 2,509 2,683    
Loans Receivable, Total 4,544,899 4,174,810    
Commercial Portfolio Segment [Member]        
Allowance for loan and lease losses        
Allowance for loan and lease losses, individually evaluated for impairment    
Allowance for loan and lease losses, collectively evaluated for impairment 9,675 8,032    
Allowance for loan and lease losses, acquired portfolio 200 200    
Allowance for loan and lease losses, acquired with deteriorated credit quality    
Allowance for loan and lease losses, total 9,875 8,233 6,632 10,949
Gross loans        
Loans Receivable, individually evaluated for impairment 29,896 49,761    
Loans Receivable, collectively evaluated for impairment 949,129 757,923    
Loans Receivable, acquired portfolio 7,224 13,715    
Loans Receivables, acquired with deteriorated credit quality 2,509 2,683    
Loans Receivable, Total 988,758 824,082    
Commercial Real Estate Portfolio Segment [Member]        
Allowance for loan and lease losses        
Allowance for loan and lease losses, individually evaluated for impairment 7 39    
Allowance for loan and lease losses, collectively evaluated for impairment 17,840 15,472    
Allowance for loan and lease losses, acquired portfolio 1,000 1,600    
Allowance for loan and lease losses, acquired with deteriorated credit quality    
Allowance for loan and lease losses, total 18,847 17,112 12,583 10,926
Gross loans        
Loans Receivable, individually evaluated for impairment 18,327 25,038    
Loans Receivable, collectively evaluated for impairment 2,500,132 2,190,686    
Loans Receivable, acquired portfolio 259,708 377,185    
Loans Receivables, acquired with deteriorated credit quality    
Loans Receivable, Total 2,778,167 2,592,909    
Construction Loans [Member]        
Allowance for loan and lease losses        
Allowance for loan and lease losses, individually evaluated for impairment    
Allowance for loan and lease losses, collectively evaluated for impairment 4,519 4,747    
Allowance for loan and lease losses, acquired portfolio    
Allowance for loan and lease losses, acquired with deteriorated credit quality    
Allowance for loan and lease losses, total 4,519 4,747 4,789 3,253
Gross loans        
Loans Receivable, individually evaluated for impairment 9,240 6,662    
Loans Receivable, collectively evaluated for impairment 456,149 476,554    
Loans Receivable, acquired portfolio    
Loans Receivables, acquired with deteriorated credit quality    
Loans Receivable, Total 465,389 483,216    
Residential Portfolio Segment [Member]        
Allowance for loan and lease losses        
Allowance for loan and lease losses, individually evaluated for impairment 29    
Allowance for loan and lease losses, collectively evaluated for impairment 1,237 1,051    
Allowance for loan and lease losses, acquired portfolio    
Allowance for loan and lease losses, acquired with deteriorated credit quality    
Allowance for loan and lease losses, total 1,266 1,050 958 976
Gross loans        
Loans Receivable, individually evaluated for impairment 2,469 3,203    
Loans Receivable, collectively evaluated for impairment 263,449 212,350    
Loans Receivable, acquired portfolio 44,073 56,242    
Loans Receivables, acquired with deteriorated credit quality    
Loans Receivable, Total 309,991 271,795    
Consumer Portfolio Segment [Member]        
Allowance for loan and lease losses        
Allowance for loan and lease losses, individually evaluated for impairment    
Allowance for loan and lease losses, collectively evaluated for impairment 2 2    
Allowance for loan and lease losses, acquired portfolio    
Allowance for loan and lease losses, acquired with deteriorated credit quality    
Allowance for loan and lease losses, total 2 1 3 4
Gross loans        
Loans Receivable, individually evaluated for impairment    
Loans Receivable, collectively evaluated for impairment 2,484 2,338    
Loans Receivable, acquired portfolio 110 470    
Loans Receivables, acquired with deteriorated credit quality    
Loans Receivable, Total 2,594 2,808    
Unallocated Financing Receivables [Member]        
Allowance for loan and lease losses        
Allowance for loan and lease losses, individually evaluated for impairment    
Allowance for loan and lease losses, collectively evaluated for impairment 445 605    
Allowance for loan and lease losses, acquired portfolio    
Allowance for loan and lease losses, acquired with deteriorated credit quality    
Allowance for loan and lease losses, total $ 445 $ 605 $ 779 $ 464
v3.10.0.1
Loans and the Allowance for Loan Losses (Details) - Schedule of allowance for loan losses - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]                      
Balance       $ 31,748         $ 31,748 $ 25,744 $ 26,572
Loans charged-off                 (18,011) (239) (39,573)
Recoveries                 117 243 45
Provision for loan losses $ 1,100 $ 1,100 $ 1,100 17,800 $ 2,000 $ 1,450 $ 1,450 $ 1,100 21,100 6,000 38,700
Balance 34,954       31,748       34,954 31,748 25,744
Commercial Portfolio Segment [Member]                      
Financing Receivable, Allowance for Credit Losses [Line Items]                      
Balance       8,233         8,233 6,632 10,949
Loans charged-off                 (17,066) (70) (39,343)
Recoveries                 109 178 4
Provision for loan losses                 18,599 1,493 35,022
Balance 9,875       8,233       9,875 8,233 6,632
Commercial Real Estate Portfolio Segment [Member]                      
Financing Receivable, Allowance for Credit Losses [Line Items]                      
Balance       17,112         17,112 12,583 10,926
Loans charged-off                 (915) (155) (107)
Recoveries                 51 35
Provision for loan losses                 2,650 4,633 1,729
Balance 18,847       17,112       18,847 17,112 12,583
Construction Loans [Member]                      
Financing Receivable, Allowance for Credit Losses [Line Items]                      
Balance       4,747         4,747 4,789 3,253
Loans charged-off                
Recoveries                
Provision for loan losses                 (228) (42) 1,536
Balance 4,519       4,747       4,519 4,747 4,789
Residential Portfolio Segment [Member]                      
Financing Receivable, Allowance for Credit Losses [Line Items]                      
Balance       1,050         1,050 958 976
Loans charged-off                 (23) (94)
Recoveries                 2 12 3
Provision for loan losses                 237 80 73
Balance 1,266       1,050       1,266 1,050 958
Consumer Portfolio Segment [Member]                      
Financing Receivable, Allowance for Credit Losses [Line Items]                      
Balance       1         1 3 4
Loans charged-off                 (7) (14) (29)
Recoveries                 6 2 3
Provision for loan losses                 2 10 25
Balance 2       1       2 1 3
Unallocated Financing Receivables [Member]                      
Financing Receivable, Allowance for Credit Losses [Line Items]                      
Balance       $ 605         605 779 464
Loans charged-off                
Recoveries                
Provision for loan losses                 (160) (174) 315
Balance $ 445       $ 605       $ 445 $ 605 $ 779
v3.10.0.1
Loans and the Allowance for Loan Losses (Details) - Schedule of Troubled Debt Restructuring by Class
$ in Thousands
 12 Months Ended
Dec. 31, 2018
USD ($)
Integer
Dec. 31, 2017
USD ($)
Integer
Dec. 31, 2016
USD ($)
Integer
Troubled debt restructurings:      
Number of Loans | Integer 40 6 23
Pre-Modification Outstanding Recorded Investment $ 22,666 $ 10,378 $ 26,325
Post-Modification Outstanding Recorded Investment $ 22,666 $ 10,378 $ 26,325
Commercial Portfolio Segment [Member]      
Troubled debt restructurings:      
Number of Loans | Integer 32 1 19
Pre-Modification Outstanding Recorded Investment $ 16,017 $ 692 $ 22,420
Post-Modification Outstanding Recorded Investment $ 16,017 $ 692 $ 22,420
Commercial Real Estate Portfolio Segment [Member]      
Troubled debt restructurings:      
Number of Loans | Integer 3 2 3
Pre-Modification Outstanding Recorded Investment $ 1,422 $ 3,007 $ 2,155
Post-Modification Outstanding Recorded Investment $ 1,422 $ 3,007 $ 2,155
Construction Loans [Member]      
Troubled debt restructurings:      
Number of Loans | Integer 3 2 1
Pre-Modification Outstanding Recorded Investment $ 4,773 $ 6,662 $ 1,750
Post-Modification Outstanding Recorded Investment $ 4,773 $ 6,662 $ 1,750
Residential Portfolio Segment [Member]      
Troubled debt restructurings:      
Number of Loans | Integer 2 1
Pre-Modification Outstanding Recorded Investment $ 454 $ 17
Post-Modification Outstanding Recorded Investment $ 454 $ 17
Consumer Portfolio Segment [Member]      
Troubled debt restructurings:      
Number of Loans | Integer  
Pre-Modification Outstanding Recorded Investment  
Post-Modification Outstanding Recorded Investment  
v3.10.0.1
Premises and Equipment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Property, Plant and Equipment [Abstract]      
Depreciation and amortization expense $ 3.1 $ 3.2 $ 2.7
Operating Leases, Rent Expense, Net $ 2.3 $ 2.3 $ 2.5
v3.10.0.1
Premises and Equipment (Details) - Schedule of Premises and Equipment - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross $ 61,747 $ 62,347
Less: accumulated depreciation and amortization 42,218 40,154
Subtotal 19,529 22,193
Less: fair value adjustment for acquired leases 467 534
Total premises and equipment, net 19,062 21,659
Buildings [Member]    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross $ 15,277 16,092
Buildings [Member] | Minimum [Member]    
Property, Plant and Equipment [Line Items]    
Estimated Useful Life (Years) 10 years  
Buildings [Member] | Maximum [Member]    
Property, Plant and Equipment [Line Items]    
Estimated Useful Life (Years) 25 years  
Furniture Fixtures And Equipment [Member] | Minimum [Member]    
Property, Plant and Equipment [Line Items]    
Estimated Useful Life (Years) 3 years  
Furniture Fixtures And Equipment [Member] | Maximum [Member]    
Property, Plant and Equipment [Line Items]    
Estimated Useful Life (Years) 7 years  
Leasehold Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross $ 14,076 13,775
Leasehold Improvements [Member] | Minimum [Member]    
Property, Plant and Equipment [Line Items]    
Estimated Useful Life (Years) 10 years  
Leasehold Improvements [Member] | Maximum [Member]    
Property, Plant and Equipment [Line Items]    
Estimated Useful Life (Years) 20 years  
Land [Member]    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross $ 2,403 2,403
Furniture, fixtures and equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross $ 29,991 $ 30,077
v3.10.0.1
Premises and Equipment (Details) - Schedule of Capital Lease in Premises and Equipment - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Abstract]    
Capital Lease $ 3,408 $ 3,408
Less: accumulated amortization 1,696 1,526
Lease in premises and equipment $ 1,712 $ 1,882
v3.10.0.1
Premises and Equipment (Details) - Schedule of Future Minimum Lease Payments for Capitalization leases
$ in Thousands
Dec. 31, 2018
USD ($)
Property, Plant and Equipment [Abstract]  
2019 $ 321
2020 321
2021 321
2022 321
2023 323
Thereafter 1,734
Total minimum lease payments 3,341
Less amount representing interest 845
Present value of net minimum lease payments $ 2,496
v3.10.0.1
Premises and Equipment (Details) - Schedule of Operating Leases Included Renewal Provisions
$ in Thousands
Dec. 31, 2018
USD ($)
Property, Plant and Equipment [Abstract]  
2019 $ 2,919
2020 2,605
2021 2,227
2022 1,853
2023 1,748
Thereafter $ 4,072
v3.10.0.1
Goodwill and Other Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization of Intangible Assets $ 627 $ 724 $ 820
v3.10.0.1
Goodwill and Other Intangible Assets (Details) - Schedule of change in goodwill - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]    
Beginning of year $ 145,909 $ 145,909
Acquired goodwill
Impairment
End of year $ 145,909 $ 145,909
v3.10.0.1
Goodwill and Other Intangible Assets (Details) - Intangible Assets Disclosure - Core Deposits [Member] - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Gross Carrying Amount $ 6,011 $ 6,011
Accumulated Amortization (4,274) (3,647)
Net Carrying Amount $ 1,737 $ 2,364
v3.10.0.1
Goodwill and Other Intangible Assets (Details) - Estimated amortization expense
$ in Thousands
Dec. 31, 2018
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2019 $ 531
2020 434
2021 338
2022 241
2023 $ 145
v3.10.0.1
Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Disclosure Text Block [Abstract]    
Time Deposits Maturities, after Next Twelve Months $ 1,400,000 $ 1,200,000
Brokered Time Deposits 405,600 358,700
Time Deposits 250000 or More 272,200 198,300
Brokered Time Deposits with Balances $ 8,800 $ 0
v3.10.0.1
Deposits (Details) - Schedule of Time Deposits
$ in Thousands
Dec. 31, 2018
USD ($)
Disclosure Text Block [Abstract]  
2019 $ 816,649
2020 360,259
2021 145,350
2022 32,532
2023 11,263
Total $ 1,366,053
v3.10.0.1
FHLB Borrowings (Details)
$ in Millions
Dec. 31, 2018
USD ($)
Debt Disclosure [Abstract]  
Long-term Line of Credit $ 1,700.0
Line of Credit Facility, Remaining Borrowing Capacity $ 1,000.0
v3.10.0.1
FHLB Borrowings (Details) - Schedule of components of FHLB and other borrowings and weighted average interest rates - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
By type of borrowing:    
FHLB borrowings and other borrowings (in Dollars) $ 600,001 $ 670,077
Weighted average interest rates 2.59% 1.76%
By remaining period to maturity:    
Less than 1 year (in Dollars) $ 405,001 $ 505,077
Less than 1 year 2.57% 1.59%
1 year through less than 2 years (in Dollars) $ 110,000 $ 35,000
1 year through less than 2 years 2.75% 1.60%
2 years through less than 3 years (in Dollars) $ 60,000 $ 85,000
2 years through less than 3 years 2.27% 2.65%
3 years through less than 4 years (in Dollars) $ 45,000
3 years through less than 4 years   2.15%
4 years through 5 years (in Dollars) $ 25,000  
4 years through 5 years 2.92%  
Federal Home Loan Bank Advances [Member]    
By type of borrowing:    
FHLB borrowings and other borrowings (in Dollars) $ 600,001 $ 670,077
Weighted average interest rates 2.59% 1.76%
v3.10.0.1
Securities Sold under Agreements to Repurchase (Details) - Schedule of repurchase agreements - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Securities Sold under Agreements to Repurchase [Abstract]      
Average daily balance during the year $ 6,781 $ 15,000
Average interest rate during the year 0.00% 5.95% 5.95%
Maximum month-end balance during the year $ 15,000 $ 15,000
Weighted average interest rate during the year 0.00% 5.95% 5.95%
v3.10.0.1
Subordinated Debentures (Details) - USD ($)
 1 Months Ended 12 Months Ended
Jan. 11, 2018
Jun. 30, 2015
Dec. 31, 2018
Subordinated Debt from Trust [Member]      
Subordinated Debentures (Details) [Line Items]      
Value of subordinated debentures received by Trust     $ 5,000,000
Percentage Rate Added to Libor     2.85%
Floating interest rate on subordinated debentures     5.37%
Proceeds from Issuance of Debt     $ 5,200,000
Debt Instrument, Maturity Date     Jan. 23, 2034
Debt Instrument, Basis Spread on Variable Rate     3.93%
Fixed-to-floating Rate Subordinated Notes [Member]      
Subordinated Debentures (Details) [Line Items]      
Percentage Rate Added to Libor 2.84%    
Proceeds from Issuance of Debt $ 75,000,000 $ 50,000,000  
Debt Instrument, Term   5 years  
Debt Instrument, Maturity Date Feb. 01, 2023 Jul. 01, 2025  
Debt Instrument, Interest Rate, Stated Percentage 5.20% 5.75%  
Debt Instrument, Description of Variable Rate Basis three month LIBOR rate plus 284 basis points three-month LIBOR rate plus 393 basis points  
Debt Issuance Cost $ 1,327,500   $ 272,000
v3.10.0.1
Subordinated Debentures (Details) - Schedule of Subordinated Borrowing - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Subordinated Borrowings [Abstract]    
Issuance Date Dec. 19, 2003 Dec. 19, 2003
Securities Issued $ 5,000 $ 5,000
Liquidation Value $1,000 per Capital Security $1,000 per Capital Security
Coupon Rate Floating 3-month LIBOR + 285 Basis Points Floating 3-month LIBOR + 285 Basis Points
Maturity Jan. 23, 2034 Jan. 23, 2034
Redeemable by Issuer Beginning Jan. 23, 2009 Jan. 23, 2009
v3.10.0.1
Income Taxes (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Net tax Benefit Expense $ 600 $ 4,800
Temporary surtax on allocated income $ 1,000  
January 1, 2018 through December 31, 2019 [Member]    
Percentage of surtax 2.50%  
January 1, 2020 through December 31, 2021 [Member]    
Percentage of surtax 1.50%  
v3.10.0.1
Income Taxes (Details) - Schedule of Components of Income Tax Expense (Benefit) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Current:                      
Federal                 $ 8,902 $ 21,090 $ 10,173
State                 954 505 (366)
Subtotal                 9,856 21,595 9,807
Deferred:                      
Federal                 2,455 3,876 2,682
State                 (1,529) (177) (713)
Subtotal                 926 3,699 1,969
Income tax expense $ 3,638 $ 2,102 $ 4,598 $ 444 $ 12,686 $ 5,607 $ 2,087 $ 4,914 $ 10,782 $ 25,294 $ 11,776
v3.10.0.1
Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Tax Disclosure [Abstract]                      
Income before income tax expense $ 22,310 $ 22,004 $ 22,125 $ 4,695 $ 23,266 $ 18,684 $ 9,770 $ 16,794 $ 71,134 $ 68,514 $ 42,858
Federal statutory rate                 21.00% 35.00% 35.00%
Computed "expected" Federal income tax expense                 $ 14,938 $ 23,980 $ 15,000
State tax, net of Federal tax benefit                 1,104 213 (701)
Impact of the "Act"                 (790) 5,623
Impact of "the Bill"                 (618)
Bank owned life insurance                 (650) (1,113) (896)
Tax-exempt interest and dividends                 (1,521) (2,123) (1,714)
Tax benefits from stock based compensation                 1,100 (348)
Other, net                 (581) (938) 87
Income tax expense $ 3,638 $ 2,102 $ 4,598 $ 444 $ 12,686 $ 5,607 $ 2,087 $ 4,914 $ 10,782 $ 25,294 $ 11,776
v3.10.0.1
Income Taxes (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Deferred tax assets:    
Allowance for loan losses $ 10,358 $ 8,848
Purchase accounting 307 2,310
Pension actuarial losses 2,203 1,647
New Jersey net operating loss 2,796 1,310
Deferred compensation 1,234 1,184
Unrealized losses on securities and swaps 1,620 483
Deferred loan costs, net of fees 19 474
Accrued rent 426 459
Capital lease 232 211
Nonaccrual interest 95 158
Other 7
Total deferred tax assets 19,290 17,091
Deferred tax liabilities:    
Employee benefit plans (2,167) (1,501)
Depreciation (512) (434)
Prepaid expenses (185) (174)
Market discount accretion (414) (60)
Unrealized gains on securities and swaps (366) (224)
Other (198) (28)
Total deferred tax liabilities (3,842) (2,421)
Net deferred tax assets $ 15,448 $ 14,670
v3.10.0.1
Offsetting Assets and Liabilities (Details) - Interest Rate Swap [Member] - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Gross Amounts Recognized, Assets $ 1,159 $ 798
Gross Amounts Offset in the Statement of Financial Position
Net Amounts of Assets Presented in the Statement of Financial Position, Assets 1,159 798
Financial Instruments Recognized, Assets
Cash or Financial Instrument Collateral, Assets
Net Amount, Assets $ 1,159 $ 798
v3.10.0.1
Commitments, Contingencies and Concentrations of Credit Risk (Details) - Summary of Financial Instruments - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Supply Commitment [Line Items]    
Off-balance sheet commitements $ 858,045 $ 678,137
Commercial Portfolio Segment [Member] | Supply Commitment [Member]    
Supply Commitment [Line Items]    
Off-balance sheet commitements 425,189 344,142
Home Equity Line of Credit [Member]    
Supply Commitment [Line Items]    
Off-balance sheet commitements 39,965 44,483
Commercial Real Estate Portfolio Segment [Member] | Supply Commitment [Member]    
Supply Commitment [Line Items]    
Off-balance sheet commitements 355,914 254,710
Standby Letters of Credit [Member]    
Supply Commitment [Line Items]    
Off-balance sheet commitements 36,141 34,114
Overdraft Protection Lines [Member]    
Supply Commitment [Line Items]    
Off-balance sheet commitements $ 836 $ 688
v3.10.0.1
Transactions with Executive Officers, Directors and Principal Stockholders (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Related Party Transactions [Abstract]    
Proceeds from Other Deposits $ 39,700 $ 42,400
v3.10.0.1
Transactions with Executive Officers, Directors and Principal Stockholders (Loans) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Related Party Transactions [Abstract]    
Beginning balance $ 56,300 $ 49,710
New loans 5,041 11,089
Repayments (4,438) (4,499)
Ending balance $ 56,903 $ 56,300
v3.10.0.1
Stockholders' Equity and Regulatory Requirements (Details)
Jan. 31, 2019
Dec. 31, 2018
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets   1.99%
Total Risk Based Capital Ratio   2.88%
Subsequent Event [Member]    
Capital conservation buffer percentage rate 2.50%  
v3.10.0.1
Stockholders' Equity and Regulatory Requirements (Details) - Schedule of Compliance with Regulatory Capital Requirements - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets 1.99%  
Parent Company [Member]    
Tier One Leverage Capital $ 478,876 $ 425,407
Tier One Leverage Capital to Average Assets 9.34% 8.92%
Tier One Leverage Capital Required for Capital Adequacy $ 204,995 $ 190,728
Tier One Leverage Capital Required for Capital Adequacy to Average Assets 4.00% 4.00%
Tier One Leverage Capital Required to be Well Capitalized
Tier One Leverage Capital Required to be Well Capitalized to Average Assets
CET One Risk Based Capital $ 473,721 $ 420,252
CET One Risk Based Capital to Risk Weighted Assets 9.75% 9.15%
CET One Risk Based Capital Required for Capital Adequacy $ 218,585 $ 206,742
CET One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets 4.50% 4.50%
CET One Risk Based Capital Required to be Well Capitalized
CET One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets
Tier One Risk Based Capital $ 478,876 $ 425,407
Tier One Risk Based Capital to Risk Weighted Assets 9.86% 9.26%
Tier One Risk Based Capital Required for Capital Adequacy $ 291,446 $ 275,656
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets 6.00% 6.00%
Tier One Risk Based Capital Required to be Well Capitalized
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets
Capital $ 638,830 $ 507,155
Capital to Risk Weighted Assets 13.15% 11.04%
Capital Required for Capital Adequacy $ 388,595 $ 367,542
Capital Required for Capital Adequacy to Risk Weighted Assets 8.00% 8.00%
Capital Required to be Well Capitalized
Capital Required to be Well Capitalized to Risk Weighted Assets
Union Center National Bank [Member]    
Tier One Leverage Capital $ 552,311 $ 468,899
Tier One Leverage Capital to Average Assets 10.78% 9.84%
Tier One Leverage Capital Required for Capital Adequacy $ 204,973 $ 190,665
Tier One Leverage Capital Required for Capital Adequacy to Average Assets 4.00% 4.00%
Tier One Leverage Capital Required to be Well Capitalized $ 256,217 $ 238,332
Tier One Leverage Capital Required to be Well Capitalized to Average Assets 5.00% 5.00%
CET One Risk Based Capital $ 552,311 $ 468,899
CET One Risk Based Capital to Risk Weighted Assets 11.37% 10.21%
CET One Risk Based Capital Required for Capital Adequacy $ 218,589 $ 206,721
CET One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets 4.50% 4.50%
CET One Risk Based Capital Required to be Well Capitalized $ 315,740 $ 298,597
CET One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets 6.50% 6.50%
Tier One Risk Based Capital $ 552,311 $ 468,899
Tier One Risk Based Capital to Risk Weighted Assets 11.37% 10.21%
Tier One Risk Based Capital Required for Capital Adequacy $ 291,452 $ 275,628
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets 6.00% 6.00%
Tier One Risk Based Capital Required to be Well Capitalized $ 388,603 $ 367,504
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets 8.00% 8.00%
Capital $ 619,515 $ 500,647
Capital to Risk Weighted Assets 12.75% 10.90%
Capital Required for Capital Adequacy $ 388,603 $ 367,504
Capital Required for Capital Adequacy to Risk Weighted Assets 8.00% 8.00%
Capital Required to be Well Capitalized $ 485,754 $ 459,379
Capital Required to be Well Capitalized to Risk Weighted Assets 10.00% 10.00%
v3.10.0.1
Comprehensive Income (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Comprehensive Income Loss Abstract  
Increase in retained earnings $ 709
Cumulative-effect adjustment to balance sheet $ 55
v3.10.0.1
Comprehensive Income (Details) - Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Sale of investment securities available-for-sale Net gains on sale investment securities $ (6,444) $ (1,350) $ (5,624)
Sale of investment securities available-for-sale Income tax expense (1,638) (532) (2,142)
Total reclassification (4,116) (1,173) 1,763
Reclassification out of Accumulated Other Comprehensive Income [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Sale of investment securities available-for-sale Net gains on sale investment securities 1,596 4,234
Sale of investment securities available-for-sale Income tax expense (579) (1,682)
Sale of investment securities available-for-sale 1,017 2,552
Amortization of unrealized holding (losses) gains on securities transferred from available-for-sale to held-to-maturity Interest income (1,986)
Amortization of unrealized holding (losses) gains on securities transferred from available-for-sale to held-to-maturity Income tax benefit 813
Amortization of unrealized holding (losses) gains on securities transferred from available-for-sale to held-to-maturity (1,173)
Amortization of pension plan net actuarial losses Salaries and employee benefits (359) (412) (407)
Amortization of pension plan net actuarial losses Income tax benefit 101 169 165
Amortization of pension plan net actuarial losses (258) (243) (242)
Total reclassification $ (258) $ 774 $ 1,137
v3.10.0.1
Comprehensive Income (Details) - Schedule of Accumulated Other Comprehensive Income (Loss) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]    
Investment securities available-for-sale, net of tax $ (5,841) $ (902)
Cash flow hedge, net of tax 837 472
Defined benefit pension and post-retirement plans, net of tax (3,785) (3,589)
Total accumulated other comprehensive loss $ (8,789) $ (4,019)
v3.10.0.1
Pension and Other Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Retirement Benefits [Abstract]      
General Discussion of Pension and Other Postretirement Benefits The Company maintains a frozen noncontributory pension plan covering employees of the Company prior to the Merger. 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.    
Defined Benefit Plan, Effect of Settlements and Curtailments on Accumulated Benefit Obligation $ 11,000 $ 13,100  
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax 358    
Defined Benefit Plan, Contributions by Employer $ 862 $ 383 $ 351
Defined Benefit Plan, Description of Plan Amendment Beginning with the 2014 Plan Year, the Plan was amended to provide for a match of 50% of elective contributions, up 6% of an employee’s contribution. In 2018, the plan was amended to provide for 100% matching of employee contributions up to 5%    
v3.10.0.1
Pension and Other Benefits (Details) - Schedule of Changes in Projected Benefit Obligations - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Change in Benefit Obligation:      
Projected benefit obligation at beginning of year $ 13,129 $ 12,682  
Interest cost 427 478 $ 514
Actuarial (gain) loss (1,716) 879  
Benefits paid (871) (910)  
Projected benefit obligation at end of year 10,969 13,129 12,682
Change in Plan Assets:      
Fair value of plan assets at beginning year 12,609 12,002  
Actual return on plan assets (715) 1,517  
Employer contributions 2,000  
Benefits paid (871) (910)  
Fair value of plan assets at end of year 13,023 12,609 $ 12,002
Funded status $ 2,054 $ (520)  
v3.10.0.1
Pension and Other Benefits (Details) - Component of Accumulated Other Comprehensive Loss have not been Recognized - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Retirement Benefits [Abstract]    
Net actuarial loss recognized in accumulated other comprehensive income $ 5,265 $ 5,860
v3.10.0.1
Pension and Other Benefits (Details) - Schedule of Net Periodic Pension Expense - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Retirement Benefits [Abstract]      
Interest cost $ 427 $ 478 $ 514
Expected return on plan assets (765) (640) (617)
Net amortization 366 412 407
Total net periodic pension expense 28 250 304
Total gain recognized in other comprehensive income (595) (410) (405)
Total recognized in net periodic expense and other comprehensive income (before tax) $ (567) $ (160) $ (101)
v3.10.0.1
Pension and Other Benefits (Details) - Schedule of Retrospective Application to Consolidated Statement of Condition - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
As previously reported [Member]    
Other components of net periodic pension expense
Salaries and employee benefits 35,128 31,030
As reported under the new guidance [Member]    
Other components of net periodic pension expense 250 304
Salaries and employee benefits $ 34,878 $ 30,726
v3.10.0.1
Pension and Other Benefits (Details) - Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Retirement Benefits [Abstract]      
Discount rate 4.05% 3.41% 3.88%
Discount rate 4.05% 3.41% 3.88%
Expected long-term return on plan assets 5.50% 5.50% 5.50%
Rate of compensation increase
v3.10.0.1
Pension and Other Benefits (Details) - Schedule of Allocation of Plan Assets
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Equity Securities    
Target Allocation 100.00% 100.00%
% of Plan Assets 100.00% 100.00%
Weighted Average Expected Long-Term Rate of Return 5.50% 5.50%
Domestic Equity Securities [Member]    
Equity Securities    
Target Allocation 50.00% 50.00%
% of Plan Assets 53.00% 41.00%
Weighted Average Expected Long-Term Rate of Return 3.40% 3.40%
International Equity Securities [Member]    
Equity Securities    
Target Allocation 10.00% 10.00%
% of Plan Assets 7.00% 8.00%
Weighted Average Expected Long-Term Rate of Return 0.70% 0.70%
Debt And Fixed Income Securities [Member]    
Equity Securities    
Target Allocation 36.00% 36.00%
% of Plan Assets 36.00% 49.00%
Weighted Average Expected Long-Term Rate of Return 1.20% 1.20%
Cash And Other Alternative Investments [Member]    
Equity Securities    
Target Allocation 4.00% 4.00%
% of Plan Assets 4.00% 2.00%
Weighted Average Expected Long-Term Rate of Return 0.20% 2.00%
v3.10.0.1
Pension and Other Benefits (Details) - Schedule of Changes in Fair Value of Plan Assets - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets $ 13,023 $ 12,609
Fair Value, Inputs, Level 3 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets
Fair Value, Inputs, Level 2 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets
Fair Value, Inputs, Level 1 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets 13,023 12,609
Real Estate Fund [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets 55 64
Real Estate Fund [Member] | Fair Value, Inputs, Level 3 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets
Real Estate Fund [Member] | Fair Value, Inputs, Level 2 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets
Real Estate Fund [Member] | Fair Value, Inputs, Level 1 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets 55 64
Debt And Fixed Income Securities [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets 4,651 6,139
Debt And Fixed Income Securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets
Debt And Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets
Debt And Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets 4,651 6,139
International Companies [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets 901 1,056
International Companies [Member] | Fair Value, Inputs, Level 3 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets
International Companies [Member] | Fair Value, Inputs, Level 2 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets
International Companies [Member] | Fair Value, Inputs, Level 1 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets 901 1,056
Us Companies [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets 6,957 5,175
Us Companies [Member] | Fair Value, Inputs, Level 3 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets
Us Companies [Member] | Fair Value, Inputs, Level 2 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets
Us Companies [Member] | Fair Value, Inputs, Level 1 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets 6,957 5,175
Cash [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets 298 175
Cash [Member] | Fair Value, Inputs, Level 3 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets
Cash [Member] | Fair Value, Inputs, Level 2 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets
Cash [Member] | Fair Value, Inputs, Level 1 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets 298 $ 175
Commodity funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets 161  
Commodity funds [Member] | Fair Value, Inputs, Level 3 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets  
Commodity funds [Member] | Fair Value, Inputs, Level 2 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets  
Commodity funds [Member] | Fair Value, Inputs, Level 1 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair Value of Pension Plan Assets $ 161  
v3.10.0.1
Pension and Other Benefits (Details) - Estimated Future Benefit Payments
$ in Thousands
Dec. 31, 2018
USD ($)
Retirement Benefits [Abstract]  
2019 $ 716
2020 712
2021 724
2022 709
2023 697
2024-2028 $ 3,514
v3.10.0.1
Stock Based Compensation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 3 years    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 108,463 299,778  
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost (in Dollars) $ 1,100 $ 500  
Stock-based compensation expense $ 1,884 $ 1,778 $ 2,113
Number of shares to tax obligations 42,672    
Compensation income tax expense $ 69,627    
Equity Compensation Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)   750,000  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) 668    
Restricted Stock [Member]      
Unrecognized compensation cost related to nonvested shares $ 687    
Weighted average period related to compesation cost 9 months 18 days    
Performance Shares [Member]      
Unrecognized compensation cost related to nonvested shares $ 653    
Weighted average period related to compesation cost 1 year 6 months    
Performance unit shares to satisfy tax obligation created from vesting 26,955    
Non-vested restricted stock units [Member]      
Unrecognized compensation cost related to nonvested shares $ 679    
Weighted-average period 2 years    
v3.10.0.1
Stock Based Compensation (Details) - Disclosure of Share-based Compensation Arrangements by Share-based Payment Award - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]      
Outstanding Beginning Balance 299,778    
Granted    
Exercised (189,992) (66,389) (136,429)
Forfeited/cancelled/expired (1,323)    
Outstanding Ending Balance 108,463 299,778  
Exercisable Ending Balance 108,463    
Outstanding Beginning Balance, Weighted-Average Exercise Price $ 6.18    
Exercised, Weighted-Average Exercise Price 4.89    
Forfeited/cancelled/expired, Weighted-Average Exercise Price 14.24    
Outstanding Ending Balance, Weighted-Average Exercise Price 8.35 $ 6.18  
Exercisable Ending Balance, Weighted-Average Exercise Price $ 8.35    
Outstanding Ending Balance - Weighted average remaining contractual term (years) 2 years 9 months 18 days    
Exercisable Ending Balance - Weighted average remaining contractual term (years) 2 years 9 months 18 days    
Outstanding Ending Balance - Aggregate intrinsic value $ 1,097,806    
Exercisable Ending Balance - Aggregate intrinsic value $ 1,097,806    
v3.10.0.1
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Nonvested Shares
 12 Months Ended
Dec. 31, 2018
$ / shares
shares
Granted
Nonvested [Member]  
Nonvested at December 31, 2017 103,078
Granted 24,684
Vested (58,668)
Forfeited/cancelled/expired (666)
Nonvested at December 31, 2018 68,428
Outstanding, beginning balance | $ / shares $ 20.41
Granted | $ / shares 27.86
Vested | $ / shares 18.89
Forfeited/cancelled/expired | $ / shares 24.25
Outstanding, ending balance | $ / shares $ 23.04
v3.10.0.1
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Unearned Shares
 12 Months Ended
Dec. 31, 2018
$ / shares
shares
Outstanding Beginning Balance 299,778
Awarded
Outstanding Ending Balance 108,463
Performance Unit Awards [Member]  
Outstanding Beginning Balance 151,194
Awarded 19,614
Change in Estimate (15,172)
Vested (69,627)
Outstanding Ending Balance 86,009
Outstanding, beginning balance | $ / shares $ 19.19
Awarded | $ / shares 31.35
Vested | $ / shares 19.46
Outstanding, ending balance | $ / shares $ 22.06
Performance Unit Awards [Member] | Maximum [Member]  
Awarded
Outstanding Ending Balance 151,772
Outstanding, beginning balance | $ / shares
Unearned Restricted Stock Units [Member]  
Outstanding Beginning Balance
Awarded 29,423
Forfeited
Vested
Outstanding Ending Balance 29,423
Outstanding, beginning balance | $ / shares
Awarded | $ / shares 31.35
Vested | $ / shares
Forfeited | $ / shares
Outstanding, ending balance | $ / shares $ 31.35
v3.10.0.1
Dividends and Other Restrictions (Details)
$ in Millions
Dec. 31, 2018
USD ($)
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract]  
Available for payment of dividends $ 230,900
v3.10.0.1
Derivatives (Details) - USD ($)
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Apr. 13, 2017
Aug. 24, 2015
Dec. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]            
Notional Amount of Interest Rate Cash Flow Hedge Derivatives       $ 25,000,000 $ 25,000,000 $ 25,000,000
Interest expense on derivatives $ (463,600) $ 406,200 $ 668,300      
v3.10.0.1
Derivatives (Details) - Summary of interest rate swap designated as a cash flow hedges - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Summary of interest rate swap designated as a cash flow hedges [Abstract]    
Notional amount $ 75,000 $ 100,000
Weighted average pay rates 1.70% 1.66%
Weighted average receive rates 2.19% 1.23%
Weighted average maturity 2 years 2 years 4 months 24 days
Fair value $ 1,159 $ 798
v3.10.0.1
Derivatives (Details) - Summary of net gains (losses) recorded in accumulated other comprehensive income - Interest Rate Contract [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Derivatives (Details) - Summary of net gains (losses) recorded in accumulated other comprehensive income and statements of income relating to cash flow derivative instruments [Line Items]    
Amount of gain (loss) recognized in OCI (Effective Portion) $ 825 $ 304
Amount of gain (loss) reclassified from OCI to interest income (464) 406
Amount of gain (loss) recognized in other Noninterest income (Ineffective Portion)
v3.10.0.1
Derivatives (Details) - Summary of cash flow hedges included in the consolidated balance sheets - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Included in other asset/(liabilities):    
Interest rate swap related to FHLB Advances, Fair Value $ 1,159 $ 798
Interest Rate Swap [Member]    
Included in other asset/(liabilities):    
Interest rate swap related to FHLB Advances, Notional Amount 75,000 100,000
Interest rate swap related to FHLB Advances, Fair Value $ 1,159 $ 798
v3.10.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Impaired Financing Receivable, with Related Allowance, Recorded Investment $ 1,748  
Impaired Financing Receivable, Related Allowance 36 $ 39
Impaired Loans [Member]    
Impaired Financing Receivable, with Related Allowance, Recorded Investment 1,700 1,100
Impaired Financing Receivable, Related Allowance $ 36 $ 39
v3.10.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a recurring basis - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value $ 412,034 $ 435,284
Derivatives 1,159 798
Assets: Available-for-sale, Fair Value 424,653 436,082
Federal Agency Obligations [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 44,955 56,022
Residential Mortgage Backed Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 185,204 181,891
Commercial Mortgage Backed Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 3,874 4,054
US States and Political Subdivisions Debt Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 139,185 131,128
Corporate Bonds And Notes [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 25,813 29,693
Asset-backed Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 9,691 12,050
Certificates of Deposit [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 322 625
Equity Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 11,460 11,728
Other Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 2,990 3,422
Trust Preferred Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 4,671
Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 2,990 15,150
Derivatives
Assets: Available-for-sale, Fair Value 14,450 15,150
Fair Value, Inputs, Level 1 [Member] | Federal Agency Obligations [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Residential Mortgage Backed Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Commercial Mortgage Backed Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | US States and Political Subdivisions Debt Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds And Notes [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Asset-backed Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Certificate Of Deposit [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 11,460 11,728
Fair Value, Inputs, Level 1 [Member] | Other Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 2,990 3,422
Fair Value, Inputs, Level 1 [Member] | Trust Preferred Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value  
Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 399,667 410,502
Derivatives 1,159 798
Assets: Available-for-sale, Fair Value 400,826 411,300
Fair Value, Inputs, Level 2 [Member] | Federal Agency Obligations [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 44,955 56,022
Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 185,204 181,891
Fair Value, Inputs, Level 2 [Member] | Commercial Mortgage Backed Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 3,874 4,054
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 129,808 121,496
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds And Notes [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 25,813 29,693
Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 9,691 12,050
Fair Value, Inputs, Level 2 [Member] | Certificate Of Deposit [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 322 625
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 2 [Member] | Other Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 2 [Member] | Trust Preferred Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value   4,671
Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 9,377 9,632
Derivatives
Assets: Available-for-sale, Fair Value 9,377 9,632
Fair Value, Inputs, Level 3 [Member] | Federal Agency Obligations [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Residential Mortgage Backed Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Commercial Mortgage Backed Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | US States and Political Subdivisions Debt Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value 9,377 9,632
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds And Notes [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Asset-backed Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Certificate Of Deposit [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Other Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Trust Preferred Securities [Member]    
Available-for-sale:    
Investment securities: Available-for-sale, Fair Value  
v3.10.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Assets at Fair Value on Non-Recurring - Impaired Loans [Member] - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Commercial Real Estate [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Assets measured at fair value on a nonrecurring basis $ 1,481 $ 1,094
Commercial Real Estate [Member] | Fair Value, Inputs, Level 1 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Assets measured at fair value on a nonrecurring basis
Commercial Real Estate [Member] | Fair Value, Inputs, Level 2 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Assets measured at fair value on a nonrecurring basis
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Assets measured at fair value on a nonrecurring basis 1,481 $ 1,094
Residential [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Assets measured at fair value on a nonrecurring basis 231  
Residential [Member] | Fair Value, Inputs, Level 1 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Assets measured at fair value on a nonrecurring basis  
Residential [Member] | Fair Value, Inputs, Level 2 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Assets measured at fair value on a nonrecurring basis  
Residential [Member] | Fair Value, Inputs, Level 3 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Assets measured at fair value on a nonrecurring basis $ 231  
v3.10.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value recurring basis - Municipal Securities [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Balance of recurring Level 3 assets at January 1 $ 9,632 $ 18,218
Principal paydowns (255) (8,586)
Balance of recurring Level 3 assets At December 31 $ 9,377 $ 9,632
v3.10.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value no recurring item basis - Municipal Securities [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Fair value $ 9,377 $ 9,632
Valuation Techniques Discounted Cash Flows Discounted Cash Flows
Unobservable Input Discount Rate Discount Rate
Range 2.90% 2.90%
v3.10.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a non-recurring basis - Impaired Loans [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Residential [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Fair value $ 231  
Valuation Technique Appraisals of collateral value  
Unobservable Inputs Comparable sales  
Residential [Member] | Appraisals of collateral value [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Capitalization rate (5.00%)  
Residential [Member] | Appraisals of collateral value [Member] | Minimum [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Capitalization rate 0.00%  
Residential [Member] | Appraisals of collateral value [Member] | Maximum [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Capitalization rate 10.00%  
Commercial Real Estate [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Fair value $ 1,481 $ 1,094
Valuation Technique Appraisals of collateral value Appraisals of collateral value
Unobservable Inputs Comparable sales Comparable sales
Commercial Real Estate [Member] | Appraisals of collateral value [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Capitalization rate (8.00%) 5.00%
Commercial Real Estate [Member] | Appraisals of collateral value [Member] | Minimum [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Capitalization rate 6.00% 0.00%
Commercial Real Estate [Member] | Appraisals of collateral value [Member] | Maximum [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Capitalization rate 9.00% 10.00%
v3.10.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value hierarchy - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Financial assets        
Cash and due from banks, Carrying Amount $ 172,366 $ 149,582 $ 200,399 $ 200,895
Cash and due from banks, Fair Value 172,366 149,582    
Investment securities available-for-sale, Carrying Amount 412,034 435,284    
Investment Securities Available-for-Sale, Fair Value 412,034 435,284    
Restricted investment in bank stocks, Carrying Amount 31,136 33,497    
Restricted investment in bank stocks, Fair Value    
Equity securities, Carrying Amount 11,460    
Equity securities, Fair Value 11,460      
Loans held-for-sale, Carrying Amount 24,845    
Loans held-for-sale, Fair Value   24,845    
Net loans, Carrying Amount 4,506,138 [1] 4,139,708    
Net loans, Fair Value 4,402,878 [1] 4,118,542    
Derivatives, Carrying Amount 1,159 798    
Derivatives, Fair Value 1,159 798    
Accrued interest receivable, Carrying Amount 18,214 15,470    
Accrued interest receivable, Fair Value 18,214 15,470    
Financial liabilities        
Noninterest-bearing deposits, Carrying Amount 768,584 776,843    
Noninterest-bearing deposits, Fair Value 768,584 776,843    
Interest-bearing deposits, Carrying Amount 3,323,508 3,018,285    
Interest-bearing deposits, Fair Value 3,320,640 3,018,285    
Borrowings, Carrying Amount 600,001 670,077    
Borrowings, Fair Value 598,598 669,680    
Subordinated debentures, Carrying Amount 128,556 54,699    
Subordinated debentures, Fair Value 132,426 57,340    
Accrued interest payable, Carrying Amount 6,764 3,707    
Accrued interest payable, Fair Value 6,764 3,707    
Fair Value, Inputs, Level 1 [Member]        
Financial assets        
Cash and due from banks, Fair Value 172,366 149,582    
Investment Securities Available-for-Sale, Fair Value 2,990 15,150    
Restricted investment in bank stocks, Fair Value    
Equity securities, Fair Value 11,460      
Loans held-for-sale, Fair Value      
Net loans, Fair Value [1]    
Derivatives, Carrying Amount    
Derivatives, Fair Value    
Accrued interest receivable, Fair Value    
Financial liabilities        
Noninterest-bearing deposits, Fair Value 768,584 776,843    
Interest-bearing deposits, Fair Value 1,957,503 1,842,151    
Borrowings, Fair Value    
Subordinated debentures, Fair Value    
Accrued interest payable, Fair Value    
Fair Value, Inputs, Level 2 [Member]        
Financial assets        
Cash and due from banks, Fair Value    
Investment Securities Available-for-Sale, Fair Value 399,667 410,502    
Restricted investment in bank stocks, Fair Value    
Equity securities, Fair Value      
Loans held-for-sale, Fair Value   370    
Net loans, Fair Value [1]    
Derivatives, Carrying Amount 1,159 798    
Derivatives, Fair Value 1,159 798    
Accrued interest receivable, Fair Value 2,064 2,051    
Financial liabilities        
Noninterest-bearing deposits, Fair Value    
Interest-bearing deposits, Fair Value 1,363,137 1,176,134    
Borrowings, Fair Value 598,598 669,680    
Subordinated debentures, Fair Value 132,426 57,340    
Accrued interest payable, Fair Value 6,764 3,707    
Fair Value, Inputs, Level 3 [Member]        
Financial assets        
Cash and due from banks, Fair Value    
Investment Securities Available-for-Sale, Fair Value 9,377 9,632    
Restricted investment in bank stocks, Fair Value    
Equity securities, Fair Value      
Loans held-for-sale, Fair Value   24,475    
Net loans, Fair Value 4,402,878 [1] 4,118,542    
Derivatives, Carrying Amount    
Derivatives, Fair Value    
Accrued interest receivable, Fair Value 16,150 13,419    
Financial liabilities        
Noninterest-bearing deposits, Fair Value    
Interest-bearing deposits, Fair Value    
Borrowings, Fair Value    
Subordinated debentures, Fair Value    
Accrued interest payable, Fair Value    
[1] ASU 2016-01 requires the use of an exit price in fair value disclosures. Historically (prior to January 1, 2018) the Company used an entry price in the estimate of fair value loans.
v3.10.0.1
Parent Corporation Only Financial Statements (Details) - Condensed Statements of Condition - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
ASSETS    
Cash and cash equivalents $ 39,161 $ 52,565
Securities available-for-sale 412,034 435,284
Equity securities 11,460
Other assets 30,216 28,275
Total assets 5,462,092 5,108,442
LIABILITIES AND STOCKHOLDERS' EQUITY    
Subordinated debentures 128,556 54,699
Stockholders' equity 613,927 565,437
Total liabilities and stockholders' equity 5,462,092 5,108,442
Parent Company [Member]    
ASSETS    
Cash and cash equivalents 22,071 7,506
Investment in subsidiaries 692,516 614,083
Receivable due from subsidiaries 32,250
Securities available-for-sale 176 779
Equity securities [1] 607
Other assets 1,282 322
Total assets 748,902 622,690
LIABILITIES AND STOCKHOLDERS' EQUITY    
Other liabilities 6,419 2,554
Subordinated debentures 128,556 54,699
Stockholders' equity 613,927 565,437
Total liabilities and stockholders' equity $ 748,902 $ 622,690
[1] Beginning January 1, 2018, equity securities were reclassified out of investment securities available-for-sale in conjunction with ASU 2016-01.
v3.10.0.1
Parent Corporation Only Financial Statements (Details) - Condensed Statements of Income - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income:                      
Dividend income from subsidiaries                 $ 2,012 $ 1,421 $ 1,410
Other income                 607 736 [1]  
Net Income $ 18,672 $ 19,902 $ 17,527 $ 4,251 $ 10,580 $ 13,077 $ 7,683 $ 11,880 60,352 43,220 31,082
Parent Company [Member]                      
Income:                      
Dividend income from subsidiaries                 16,700 13,000 12,400
Other income                 1,618 13 8
Total Income                 18,318 13,013 12,408
Expenses                 (7,201) (3,251) (3,252)
Income before equity in undistributed earnings of subsidiaries                 11,117 9,762 9,156
Equity in undistributed earnings of subsidiaries                 49,235 33,458 21,926
Net Income                 $ 60,352 $ 43,220 $ 31,082
[1] The Company elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation.
v3.10.0.1
Parent Corporation Only Financial Statements (Details) - Condensed Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities:                      
Net income $ 18,672 $ 19,902 $ 17,527 $ 4,251 $ 10,580 $ 13,077 $ 7,683 $ 11,880 $ 60,352 $ 43,220 $ 31,082
Adjustments to reconcile net income to net cash provided by operating activities:                      
Loss on equity securities, net                 267
(Increase) decrease in other assets                 (1,134) 5,706 (15,006)
Increase (decrease) in other liabilities                 4,988 3,887 (2,022)
Net cash provided by operating activities                 89,060 131,133 49,712
Cash flows from investing activities:                      
Net cash used in investing activities                 (357,214) (817,727) (427,669)
Cash flows from financing activities:                      
Cash dividends on common stock                 (9,664) (9,612) (9,067)
Cash dividends on preferred stock                 (22)
Issuance cost of common stock                 (180)
Redemption of preferred stock                 (11,250)
Proceeds from exercise of stock options                 875 417 767
Net cash provided by financing activities                 290,938 635,777 377,461
Increase (decrease) in cash and cash equivalents                 22,784 (50,817) (496)
Cash and cash equivalents at beginning of period       149,582         149,582 200,399 200,895
Cash and cash equivalents at end of period 172,366       149,582       172,366 149,582 200,399
Parent Company [Member]                      
Cash flows from operating activities:                      
Net income                 60,352 43,220 31,082
Adjustments to reconcile net income to net cash provided by operating activities:                      
Equity in undistributed earnings of subsidiary                 (49,235) (33,458) (21,926)
Loss on equity securities, net                 4
(Increase) decrease in other assets                 (627) 269 2,023
Increase (decrease) in other liabilities                 3,843 (151) 544
Net cash provided by operating activities                 14,337 9,880 11,723
Cash flows from investing activities:                      
Purchase of available-for-sale securities                 (8) (7)
Capital infusion to subsidiary                 (64,500) (38,439)
Net cash used in investing activities                 (64,508) (7) (38,439)
Cash flows from financing activities:                      
Cash dividends on common stock                 73,525 (9,612) (9,067)
Cash dividends on preferred stock                 (9,664) (22)
Issuance cost of common stock                 (180)  
Secondary offering of common stock                 38,439
Redemption of preferred stock                 (11,250)
Proceeds from exercise of stock options                 875 417 767
Net cash provided by financing activities                 64,736 (9,375) 18,867
Increase (decrease) in cash and cash equivalents                 14,565 498 (7,849)
Cash and cash equivalents at beginning of period       $ 7,506         7,506 7,008 14,857
Cash and cash equivalents at end of period $ 22,071       $ 7,506       $ 22,071 $ 7,506 $ 7,008
v3.10.0.1
Quarterly Financial Information of ConnectOne Bancorp, Inc. (Unaudited) (Details) - Schedule of Quarterly Financial Information - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]                      
Total interest income $ 57,223 $ 55,351 $ 53,084 $ 50,475 $ 50,211 $ 46,338 $ 43,691 $ 41,084 $ 216,133 $ 181,324 $ 161,241
Total interest expense 17,062 15,389 14,139 12,328 10,403 9,319 8,590 7,943 58,918 36,255 31,096
Net interest income 40,161 39,962 38,945 38,147 39,808 37,019 35,101 33,141 157,215 145,069 130,145
Provision for loan losses 1,100 1,100 1,100 17,800 2,000 1,450 1,450 1,100 21,100 6,000 38,700
Total other income, net of securities gains 1,515 1,429 1,388 1,407 2,024 1,756 1,422 1,406      
Net securities gains         1,596      
Other expense 18,266 18,287 17,108 17,059 16,566 18,641 25,303 18,249      
Income before income taxes 22,310 22,004 22,125 4,695 23,266 18,684 9,770 16,794 71,134 68,514 42,858
Income tax expense 3,638 2,102 4,598 444 12,686 5,607 2,087 4,914 10,782 25,294 11,776
Net income $ 18,672 $ 19,902 $ 17,527 $ 4,251 $ 10,580 $ 13,077 $ 7,683 $ 11,880 $ 60,352 $ 43,220 $ 31,082
Earnings per share:                      
Basic (in Dollars per share) $ 0.58 $ 0.62 $ 0.54 $ 0.13 $ 0.33 $ 0.41 $ 0.24 $ 0.37 $ 1.87 $ 1.35 $ 1.02
Diluted (in Dollars per share) $ 0.58 $ 0.61 $ 0.54 $ 0.13 $ 0.33 $ 0.41 $ 0.24 $ 0.37 $ 1.86 $ 1.34 $ 1.01
v3.10.0.1
Revenue Recognition (Schedule of Revenue from Contracts with Customers) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
 [1]
Dec. 31, 2016
Service charges on deposits      
Overdraft fees $ 847 $ 809  
Other 607 736  
Interchange income 628 675  
Net gains on sales of loans 61 [2] 708 [2] $ 232
Wire transfer fees [2] 309 251  
Loan servicing fees [2] 94 108  
Bank owned life insurance 3,094 [2] 3,181 [2] 2,559
Net gains on sales of securities [2] 1,596 [2] 4,234
Annuity and insurance income [2] 39 [2] 191
Other 99 101  
Total noninterest income $ 5,739 $ 8,204 $ 9,920
[1] The Company elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation.
[2] Not within scope of ASC 606.
v3.10.0.1
Subsequent Events (Details) - Subsequent Event [Member] - ConnectOne Bank [Member]
$ / shares in Units, $ in Thousands
Jan. 02, 2019
USD ($)
$ / shares
Loans acquired $ 400,000
Deposits assumed $ 400,000
Common stock exchanged price | $ / shares $ 0.245