CONNECTONE BANCORP, INC., 10-K filed on 2/25/2022
Annual Report
v3.22.0.1
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Feb. 25, 2022
Jun. 30, 2021
Document Information [Line Items]      
Entity Central Index Key 0000712771    
Document Fiscal Period Focus FY    
Amendment Flag false    
Document Fiscal Year Focus 2021    
Current Fiscal Year End Date --12-31    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Document Transition Report false    
Entity File Number 000-11486    
Entity Registrant Name ConnectOne Bancorp, Inc.    
Entity Incorporation, State or Country Code NJ    
Entity Tax Identification Number 52-1273725    
Entity Address, Address Line One 301 Sylvan Avenue    
Entity Address, City or Town Englewood Cliffs    
Entity Address, State or Province NJ    
Entity Address, Postal Zip Code 07632    
City Area Code 201    
Local Phone Number 816-8900    
Entity Well-Known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 968.8
Entity Common Stock, Shares Outstanding   39,605,913  
Documents Incorporated By Reference Text Block

Shares Outstanding on February 25, 2022

Common Stock, no par value: 39,605,913 shares

 

DOCUMENTS INCORPORATED BY REFERENCE

Definitive proxy statement in connection with the 2022 Annual Stockholders Meeting to be filed with the Commission pursuant to Regulation 14A will be incorporated by reference in Part III

   
Auditor Name Crowe LLP    
Auditor Location Livingston, New Jersey    
Auditor Firm Id 173    
Common Stock [Member]      
Document Information [Line Items]      
Title of 12(b) Security Common Stock, no par value    
Trading Symbol CNOB    
Name of Exchange on which Security is Registered NASDAQ    
Depositary Shares [Member]      
Document Information [Line Items]      
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of 5.25% Series A Non-Cumulative, perpetual preferred stock)    
Trading Symbol CNOBP    
Name of Exchange on which Security is Registered NASDAQ    
v3.22.0.1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
ASSETS    
Cash and due from banks $ 54,352 $ 63,637
Interest-bearing deposits with banks 211,184 240,119
Cash and cash equivalents 265,536 303,756
Investment securities 534,507 487,955
Equity securities 13,794 13,387
Loans held-for-sale 250 4,710
Loans receivable 6,828,622 6,236,307
Less: Allowance for credit losses - loans 78,773 79,226
Net loans receivable 6,749,849 6,157,081
Investment in restricted stock, at cost 27,826 25,099
Bank premises and equipment, net 29,032 30,108
Accrued interest receivable 34,152 35,317
Bank owned life insurance 195,731 165,960
Right of use operating lease assets 11,017 16,159
Goodwill 208,372 208,372
Core deposit intangibles 8,997 10,977
Other assets 50,417 88,458
Total assets 8,129,480 7,547,339
Deposits:    
Noninterest-bearing 1,617,049 1,339,108
Interest-bearing 4,715,904 4,620,116
Total deposits 6,332,953 5,959,224
Borrowings 468,193 425,954
Subordinated debentures, net of debt issuance costs 152,951 202,648
Operating lease liabilities 12,417 18,026
Other liabilities 38,754 26,177
Total liabilities 7,005,268 6,632,029
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY    
Preferred Stock, no par value; $1,000 per share liquidation preference; Authorized 5,000,000 shares; issued 115,000 shares as of December 31, 2021 and -0- shares as of December 31, 2020; outstanding 115,000 shares as of December 31, 2021 and -0- shares as of December 31, 2020 110,927
Common stock, no par value: Authorized 100,000,000 shares; issued 42,557,264 shares as of December 31, 2021 and 42,444,031 shares as of December 31, 2020; outstanding 39,568,090 shares as of December 31, 2021 and 39,785,398 as of December 31, 2020 586,946 586,946
Additional paid-in capital 27,246 23,887
Retained earnings 440,169 331,951
Treasury stock, at cost (2,989,174 shares as of December 31, 2021 and 2,658,633 shares as of December 31, 2020) (39,672) (30,271)
Accumulated other comprehensive (loss) income (1,404) 2,797
Total stockholders' equity 1,124,212 915,310
Total liabilities and stockholders' equity $ 8,129,480 $ 7,547,339
v3.22.0.1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares
Dec. 31, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Preferred stock, liquidation preference par share $ 1,000 $ 1,000
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued 115,000 0
Preferred stock, shares outstanding 115,000 0
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 42,557,264 42,444,031
Common stock, shares outstanding 39,568,090 39,785,398
Treasury Stock, Shares 2,989,174 2,658,633
v3.22.0.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Interest income:      
Interest and fees on loans $ 293,546 $ 296,611 $ 255,479
Interest and dividends on investment securities:      
Taxable 4,413 6,456 9,131
Tax-exempt 2,403 2,797 3,929
Dividends 971 1,642 1,778
Interest on federal funds sold and other short-term investments 405 694 1,167
Total interest income 301,738 308,200 271,484
Interest expense:      
Deposits 24,768 52,386 65,570
Borrowings 14,092 17,823 19,595
Total interest expense 38,860 70,209 85,165
Net interest income 262,878 237,991 186,319
(Reversal of) provision for credit losses (5,500) 41,000 8,100
Net interest income after provision for credit losses 268,378 196,991 178,219
Noninterest income:      
Deposit, loan and other income 6,617 7,077 4,025
Income on bank owned life insurance 4,771 5,007 3,484
Net gains on sale of loans held-for-sale 3,807 2,085 512
Gain on sale of branches 674
Net (losses) gains on equity securities (373) 202 294
Net gains (losses) on sale/redemption of investment securities 195 29 (280)
Total noninterest income 15,691 14,400 8,035
Noninterest expense:      
Salaries and employee benefits 64,341 58,877 49,021
Occupancy and equipment 11,638 13,882 9,712
FDIC insurance 2,665 4,002 2,011
Professional and consulting 8,286 7,383 5,506
Marketing and advertising 1,318 1,200 1,353
Data processing 6,265 6,008 4,503
Merger expenses 14,640 8,955
Loss on extinguishment of debt 1,047
Amortization of core deposit intangible 1,981 2,559 1,408
Other components of net periodic pension (income) expense (269) (119) 114
Increase in value of acquisition price 2,333
Other expenses 12,786 10,236 8,598
Total noninterest expenses 109,011 121,001 92,228
Income before income tax expense 175,058 90,390 94,026
Income tax expense 44,705 19,101 20,631
Net income 130,353 71,289 73,395
Preferred dividends 1,717
Net income available to common stockholders $ 128,636 $ 71,289 $ 73,395
Earnings per common share:      
Basic $ 3.24 $ 1.80 $ 2.08
Diluted $ 3.22 $ 1.79 $ 2.07
v3.22.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net income $ 130,353 $ 71,289 $ 73,395
Unrealized gains and losses:      
Unrealized holding (losses) gains on available-for-sale securities arising during the period (11,109) 7,005 11,286
Tax effect 2,914 (1,847) (2,923)
Net of tax (8,195) 5,158 8,363
Reclassification adjustment for realized (gains) losses included in net income (195) (29) 280
Tax effect 48 6 (79)
Net of tax (147) (23) 201
Unrealized gains (losses) on cash flow hedges 3,593 (3,423) (755)
Tax effect (1,012) 962 213
Net of tax 2,581 (2,461) (542)
Reclassification adjustment for losses (gains) arising during this period 1,873 1,577 (677)
Tax effect (528) (443) 190
Net of tax 1,345 1,134 (487)
Unrealized pension plan (losses) gains:      
Unrealized pension plan losses before reclassifications (112) (209)
Tax effect 31 59
Net of tax (81) (150)
Reclassification adjustment for realized losses included in net income 299 301 358
Tax effect (84) (84) (101)
Net of tax 215 217 257
Total other comprehensive (loss) income (4,201) 3,944 7,642
Total comprehensive income $ 126,152 $ 75,233 $ 81,037
v3.22.0.1
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, 2018 $ 412,546 $ 15,542 $ 211,345 $ (16,717) $ (8,789) $ 613,927
Net income       73,395     73,395
Other comprehensive income (loss), net of tax           7,642 7,642
Cash dividends declared on common stock       (12,958)     (12,958)
Repurchase of stock         (12,643)   (12,643)
Net shares issued in satisfaction of restricted stock units earned            
Exercise of stock options     360       360
Restricted stock, net of forfeitures            
Net shares issued in satisfaction of performance units earned     196       196
Stock issued in acquisition of GHB   56,025         56,025
Stock issued in acquisition of BoeFly, LLC     2,500       2,500
Stock-based compensation expense     2,746       2,746
Balance at Dec. 31, 2019 468,571 21,344 271,782 (29,360) (1,147) 731,190
Net income       71,289     71,289
Other comprehensive income (loss), net of tax           3,944 3,944
Cash dividends declared on common stock       (11,120)     (11,120)
Repurchase of stock         (911)   (911)
Net shares issued in satisfaction of restricted stock units earned            
Exercise of stock options     233       233
Restricted stock grants, net of forfeitures            
Stock grants issued            
Net shares issued in satisfaction of performance units earned            
Share redemption for tax withholdings on performance units and restricted stock units earned     (639)       (639)
Stock issued in acquisition of Bancorp of New Jersey   118,375         118,375
Stock-based compensation expense     2,949       2,949
Balance at Dec. 31, 2020 586,946 23,887 331,951 (30,271) 2,797 915,310
Cumulative effect of change in accounting principle (see note 1b. "Authoritative Accounting Guidance Presentation"), net of tax       (2,925)     (2,925)
Balance on January 1 at Dec. 31, 2020 586,946 23,887 329,026 (30,271) 2,797 912,385
Net income       130,353     130,353
Other comprehensive income (loss), net of tax           (4,201) (4,201)
Cash dividends declared on preferred stock       (1,717)     (1,717)
Cash dividends declared on common stock       (17,493)     (17,493)
Repurchase of stock         (9,401)   (9,401)
Net shares issued in satisfaction of restricted stock units earned            
Exercise of stock options     106       106
Restricted stock grants, net of forfeitures            
Stock grants issued            
Net shares issued in satisfaction of performance units earned            
Share redemption for tax withholdings on performance units and restricted stock units earned     (1,283)       (1,283)
Proceeds from preferred stock issuance, net of costs 110,927           110,927
Stock-based compensation expense     4,536       4,536
Balance at Dec. 31, 2021 $ 110,927 $ 586,946 $ 27,246 $ 440,169 $ (39,672) $ (1,404) $ 1,124,212
v3.22.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash dividends declared on preferred stock (in Dollars per share) $ 0.371875    
Cash dividends declared on common stock (in Dollars per share) $ 0.48 $ 0.27 $ 0.36
Exercise of stock options, shares 14,247 35,413 38,937
Restricted stock, net of forfeitures 44,836 89,879 56,772
Net shares issued in satisfaction of performance units earned 34,458 22,402 31,425
Repurchase of stock 330,541 54,693 540,018
Net shares issued in satisfaction of restricted stock units earned 14,711 16,541 4,904
Stock grants issued 4,981 1,340  
Preferred stock issued 115,000 0  
Bancorp of New Jersey [Member]      
Stock issued in acquisition   4,602,450  
GHB acquisition [Member]      
Stock issued in acquisition     3,032,496
Boefly [Member]      
Stock issued in acquisition     119,008
v3.22.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities      
Net income $ 130,353 $ 71,289 $ 73,395
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:      
Depreciation and amortization of premises and equipment 3,757 4,244 3,053
(Reversal) of provision for credit losses (5,500) 41,000 8,100
Amortization of intangibles 1,980 2,559 1,408
Net accretion of loans (5,350) (6,687) (5,056)
Accretion on bank premises (73) (90) (86)
Accretion on deposits (2,224) (4,301) (1,149)
(Accretion) amortization on borrowings (36) (183) 209
Net deferred income tax expense 16 (7,495) 104
Stock-based compensation 4,536 2,949 2,942
Losses (gains) on sales/redemptions of investment securities, net (195) (29) 280
Change in fair value of equity securities, net 373 (202) (294)
Gains (losses) on sale of loans held-for-sale, net (3,807) (2,085) (512)
Gain on sale of branches (674)
Net losses on disposition of other fixed assets 65
Gain on sale of other real estate owned (18)
Loans originated for resale (51,669) (63,114) (20,499)
Loss on extinguishment of debt 1,047
Proceeds from sale of loans held-for-sale 72,233 80,323 21,011
Net gains on disposition of premises and equipment (8)
Net gains on sale of other real estate owned (8)
Increase in cash surrender value of bank owned life insurance (4,771) (4,793) (3,484)
Amortization of premiums and accretion of discounts on investments securities, net 5,966 5,506 4,299
Amortization of subordinated debt issuance costs 303 323 329
Increase (decrease) in accrued interest receivable 1,165 (11,458) (301)
Net change in operating leases (769) 41 1,312
Decrease (increase) in other assets 46,086 (22,498) (22,619)
Increase (decrease) in other liabilities 10,526 (4,174) (2,785)
Net cash provided by operating activities 202,273 81,125 60,688
Investment securities available-for-sale:      
Purchases (349,500) (338,087) (225,853)
Sales 19,624 183,728
Maturities, calls and principal repayments 285,873 256,782 178,116
Net (purchases)/redemptions of restricted investment in bank stocks (2,727) 5,362 3,739
Purchases of equity securities (780) (2,000)
Sales of equity securities 569
Loans held-for-sale payments 38 1,186 47
Net increase in loans (596,389) (329,210) (243,430)
Purchases of premises and equipment (2,783) (2,199) (1,527)
Purchases of bank owned life insurance (25,000) (25,000) (10,000)
Proceeds from life insurance death benefits 1,794
Proceeds from sale of branches 1,087
Proceeds from sale of premises and equipment 18
Cash and cash equivalents acquired in acquisitions, net 87,391 11,211
Proceeds from sale of other real estate owned 321 992 915
Net cash used in investing activities (689,860) (323,365) (102,467)
Cash flows from financing activities      
Net increase in deposits 375,953 410,605 260,489
(Repayment of) increase in subordinated debt (50,000) 73,440
Advances of FHLB borrowings 340,000 1,526,489 2,597,000
Repayments of FHLB borrowings (297,725) (1,650,387) (2,762,150)
Cash dividends paid on preferred stock (1,717)
Cash dividends paid on common stock (17,493) (14,317) (12,160)
Proceeds from preferred stock offering 110,927
Purchase of treasury stock (9,401) (911) (12,643)
Proceeds from exercise of stock options 106 233 360
Share redemption for tax withholdings on performance units and restricted stock units earned (1,283) (639)
Net cash provided by financing activities 449,367 344,513 70,896
Net change in cash and cash equivalents (38,220) 102,273 29,117
Cash and cash equivalents at beginning of period 303,756 201,483 172,366
Cash and cash equivalents at end of period 265,536 303,756 201,483
Cash payments for:      
Interest paid 41,787 74,701 88,522
Income taxes paid 45,431 26,548 18,497
Supplemental disclosures of noncash investing activities:      
Transfer of loans to other real estate owned 304 907
Transfer of loans held-for-sale to loans held-for-investment 4,293 10,995
Transfer of loans held-for-investment to loans held-for-sale $ 16,628 $ 26,548 $ 33,297
v3.22.0.1
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies

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

Nature of Operations

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

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

Basis of Presentation and Principals of Consolidation

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

Segments

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

Use of Estimates

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

Risks and Uncertainties

As previously disclosed, on March 11, 2020 the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which continues to impact the United States and the world. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. The COVID-19 pandemic has adversely affected, and continues to adversely affect economic activity globally, nationally and locally. Although economic activity has accelerated in 2021, and the United States continues to implement a COVID-19 vaccination program, COVID-19, it’s variants and actions taken to mitigate the spread of it have had and may in the future have an adverse impact on the economies and financial markets of many countries and parts of the United States, including the New Jersey/New York metropolitan area in which the Company primarily operates. Although the Company has been able to continue operations while taking steps to ensure the safety of employees and clients, COVID-19 could impact the Company’s operations in the future. Federal Reserve reductions in interest rates and other effects of the COVID-19 pandemic may adversely affect the Company's financial condition and results of operations in future periods. Although state and local governments have lifted many restrictions on conducting business, it is possible that restrictions could be reimposed.

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Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

It is therefore unknown how long COVID-19 may continue to impact the economy and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including the determination of the allowance for credit losses on loans, fair value of financial instruments, impairment of goodwill and other intangible assets and income taxes. Federal Reserve reductions in interest rates and other effects of the COVID-19 pandemic may adversely affect the Company's financial condition and results of operations in future periods. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including the determination of the allowance for credit losses, fair value of financial instruments, impairment of goodwill and other intangible assets and income taxes.

Cash and Cash Equivalents

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

Investment Securities

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

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

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

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

Prior to January 1, 2021, securities were evaluated on at least a quarterly basis, and more frequently when market conditions warrant such an evaluation, to determine whether a decline in their value is other-than-temporary. FASB ASC 320-10-65 clarifies the interaction of the factors that were considered when determining whether a debt security is other-than-temporarily impaired. For debt securities, management assessed whether (a) it has the intent to sell the security and (b) it is more likely than not that it will be required to sell the security prior to its anticipated recovery. These steps were done before assessing whether the entity will recover the cost basis of the investment. In instances when

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Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

a determination is made that an other-than-temporary impairment exists but the investor does not intend to sell the debt security and it is not more likely than not that it will be required to sell the debt security prior to its anticipated recovery, FASB ASC 320-10-65 changed the presentation and amount of the other-than-temporary impairment recognized in the Consolidated Statement of Income. The other-than-temporary impairment was separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss was recognized through earnings. The amount of the total other-than-temporary impairment related to all other factors was recognized through other comprehensive income.

Equity Securities

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

Loans Held-for-Sale

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

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

Loans

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

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

Loans that are 90 days past due are placed on nonaccrual and previously accrued interest is reversed and charged against interest income unless the loans are both well-secured and in the process of collection. Past due status is based on the contractual terms of the loan. In 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 credit losses and loans individually evaluated for credit losses.

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

The policy of the Company is to generally grant commercial, residential and consumer loans to residents and businesses within 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 credit losses are provided for all known and inherent risks. Collateral and/or personal guarantees are required for a large majority of the Company’s loans.

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Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Allowance for Credit Losses

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

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

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

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

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

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

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

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CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

Purchased Credit-Deteriorated Loans

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

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

Derivatives

The Company 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.

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CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

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

Restricted Stock

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

Transfers of Financial Assets

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

Premises and Equipment

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

Leases

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

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

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Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Other Real Estate Owned

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

Employee Benefit Plans

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

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

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

Stock-Based Compensation

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

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

Treasury Stock

Subject to limitations applicable to the Parent Corporation, treasury stock purchases may be made from time to time as, in the opinion of management, market conditions warrant, in the open market or in privately negotiated transactions. Shares repurchased are added to the corporate treasury and will be used for future stock dividends and other issuances. The repurchased shares are recorded as treasury stock, which results in a decrease in stockholders’ equity. Treasury stock is recorded using the cost method and accordingly is presented as a reduction of stockholders’ equity. During the year ended December 31, 2021 and December 31, 2020, the Parent Corporation repurchased 330,541 and 54,693 shares, respectively, under a board-approved share repurchase program.

Goodwill

Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized but tested for impairment annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. The Company has selected December 31 as the date to perform the annual impairment test. No impairment charge was deemed necessary as of the years ended December 31, 2021, 2020 and 2019.

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Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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 2020 and 2019 to conform to the classifications presented in 2021. Such reclassifications had no impact on net income or stockholders’ equity.

v3.22.0.1
Authoritative Accounting Guidance
 12 Months Ended
Dec. 31, 2021
Accounting Changes and Error Corrections [Abstract]  
Authoritative Accounting Guidance

Note 1b – Authoritative Accounting Guidance

Adoption of New Accounting Standards in 2021

Effective January 1, 2021, the Company adopted Accounting Standards Update (“ASU”) 2016-13 “ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the prior incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL” or the “CECL Standard”). The measurement of expected credit losses under the CECL Standard is applicable to financial assets measured at amortized cost, including portfolio loans and investment securities classified as held-to-maturity (“HTM”). It also applies to off-balance sheet credit exposures including loan commitments, standby letters of credit, financial guarantees and other similar instruments. In addition, the CECL Standard changes the accounting for investment securities classified as available-for-sale (“AFS”), including a requirement that estimated credit losses on AFS securities be presented as an allowance rather than as a direct write-down of the carrying balance of securities which we do not intend to sell, or believe that it is more likely than not, that we will be required to sell.

The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. As discussed further below, purchased credit deteriorated assets were measured on a prospective basis in accordance with the CECL Standard and all purchased credit impaired loans as of December 31, 2020 were considered purchased credit deteriorated loans upon adoption. Results for reporting periods beginning after January 1, 2021 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2021 (dollars in thousands):

Change in Consolidated Statement of Condition

Tax Effect

Change to Retained Earnings from Adoption of CECL

Allowance for credit losses (“ACL”) (loans)

$

1,350

$

406

$

944

Adjustment related to purchased credit-impaired loan marks(1)

5,207

-

-

Total ACL – loans

6,557

406

944

ACL (unfunded credit commitments)

2,833

852

1,981

Total impact of CECL adoption

$

9,390

$

1,258

$

2,925

 

 

​(1) This amount represents a gross-up of the balance sheet related to nonaccretable credit marks of purchased credit-impaired loans resulting from adoption of CECL on January 1, 2021.

Loans designated as purchased credit impaired loans (“PCI”) and accounted for under Accounting Standards Codification (“ASC”) 310-30 were designated as purchased with credit deterioration loans (“PCD”). In accordance with the CECL Standard, the Company did not reassess whether PCI loans met the criteria of PCD loans as of the date of adoption and determined all PCI loans were PCD loans. The Company recorded an increase to the balance of PCD loans and an increase to the ACL for loans of $5.2 million, which represented the expected credit losses for PCD loans. The remaining non-credit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2021 over the remaining estimated life of the loans. Also, in accordance with the CECL Standard, the Company did not reassess whether modifications to individual acquired financial assets were troubled debt restructurings (“TDRs”) as of the date of adoption.

ASU No. 2021-03, “Intangibles – Goodwill and Other (Topic 350).” ASU 2021-03 requires an entity to identify and evaluate goodwill impairment triggering events when they occur to determine whether it is more likely than not that the fair value of a reporting unit (or entity, if the entity has elected the accounting alternative for amortizing goodwill and chosen that option) is less than its carrying amount. If an entity determines that it is more likely than not that the goodwill is impaired. It must test goodwill for impairment using the triggering event date as the measurement date. An entity is required to disclose the amount assigned to goodwill in total and by major business combination, or by reorganization event resulting in fresh-start reporting. Also, the entity must disclose the weighted average amortization period in total and the amortization period by major business combination, or by reorganization event resulting in fresh-start reporting. ASU 2021-03 was effective for the Company on January 1, 2021 and did not have a significant impact on our consolidated financial statement.

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 was effective for the Company as of January 1, 2021 and did not have a significant impact on our consolidated financial statements.

ASU 2021-01 “Reference Rate Reform (Topic 848)” In January 2021 the Financial Accounting Standards Board (the “FASB”), issued ASU 2021-01 to clarify the scope of ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. ASU 2020-04 provides temporary, optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships that reference the London Interbank Offered Rate or another reference rate that is expected to be discontinued. The ASU addresses questions about whether Topic 848 can be applied to derivative instruments that do not reference a rate that is expected to be discontinued but that use an interest rate for margining, discounting, or contract price alignment that is expected to be modified as a result of reference rate reform, commonly referred to as the “discounting transition”. The amendments clarify that certain optional expedients and exceptions in Topic 848 do apply to derivatives that are affected by the discounting transition. The amendments in ASU 2021-01 are effective immediately for all entities. The amendments do not apply to contract modifications made after December 31, 2022; new hedging relationships entered into after December 31, 2022; and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship, including periods after December 31, 2022. The Company adopted ASU 2021-01 in January 2021, and its adoption did not have a significant impact on the Company’s audited consolidated financial statements.

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CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1b – Authoritative Accounting Guidance – (continued)

Newly Issued, But Not Yet Effective Accounting Standards

In November 2020, federal and state banking regulators issued the “Interagency Policy Statement on Reference Rates for Loans" to reiterate that a specific replacement rate for loans impacted by reference rate reform has not been endorsed and entities may utilize any replacement reference rate determined to be appropriate based on its funding model and customer needs. As discussed in the “Interagency Policy Statement on Reference Rates for Loans," fallback language should be included in lending contracts to provide for use of a robust fallback rate if the initial reference rate is discontinued. Additionally, federal banking regulators issued the "Interagency Statement on LIBOR Transition" acknowledging that the administrator of USD London Interbank Offered Rate (LIBOR) benchmarks has announced it will consult on its intention to cease the publication of the one week and two month USD LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining USD LIBOR settings immediately following the LIBOR publication on June 30, 2023. On March 5, 2021, the administrator of USD LIBOR benchmarks confirmed these dates and will cease publication of USD LIBOR tenors accordingly. As discussed in the "Interagency Statement on LIBOR Transition," regulators encouraged banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, in order to facilitate an orderly, safe and sound LIBOR transition. The Company continues to monitor efforts and evaluate the impact of reference rate reform on its consolidated financial statements; however, the impact is not expected to be significant.

v3.22.0.1
Earnings per Common Share
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Earnings per Common Share

Note 2 – Earnings per Common Share

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

Years Ended December 31,

2021

2020

2019

(in thousands, except per share amounts)

Net income available to common stockholders

$

128,636

$

71,289

$

73,395

Earnings allocated to participating securities

 

(313

)

 

(356

)

 

(295

)

Income attributable to common stock

$

128,323

$

70,933

$

73,100

Weighted average common shares outstanding, including participating securities

39,723

39,643

35,289

Weighted average participating securities

 

(97

)

 

(131

)

 

(84

)

Weighted average common shares outstanding

39,626

39,512

35,205

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

 

260

 

132

 

88

Weighted average common and equivalent shares outstanding

 

39,886

 

39,644

 

35,293

Earnings per common share:

Basic

$

3.24

$

1.80

$

2.08

Diluted

3.22

1.79

2.07

There were no antidilutive common share equivalents as of December 31, 2021, 2020 and 2019.

v3.22.0.1
Investment Securities
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

Note 3 – Investment Securities

The Company’s investment securities are classified as available-for-sale as of December 31, 2021 and December 31, 2020. 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, 2021 and December 31, 2020. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. See Note 20 of the Notes to Consolidated Financial Statements for a further discussion.

The following tables present information related to the Company’s portfolio of securities available-for-sale as of December 31, 2021 and 2020.

Amortized

Cost

Gross

Unrealized

Gains

Gross

Unrealized

Losses

Fair

Value

(dollars in thousands)

December 31, 2021

Investment securities available-for-sale

Federal agency obligations

$

50,336

$

649

$

(625

)

$

50,360

Residential mortgage pass-through securities

317,111

1,868

(2,884

)

316,095

Commercial mortgage pass-through securities

10,814

118

(463

)

10,469

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

145,045

1,562

(982

)

145,625

Corporate bonds and notes

8,968

81

-

9,049

Asset-backed securities

2,563

3

(2

)

2,564

Certificates of deposit

150

-

-

150

Other securities

 

195

 

-

 

-

 

195

Total securities available-for-sale

$

535,182

$

4,281

$

(4,956

)

$

534,507

Amortized

Cost

Gross

Unrealized

Gains

Gross

Unrealized

Losses

Fair

Value

(dollars in thousands)

December 31, 2020

Investment securities available-for-sale

Federal agency obligations

$

37,015

$

1,508

$

(65

)

$

38,458

Residential mortgage pass-through securities

266,114

4,811

(41

)

270,884

Commercial mortgage pass-through securities

6,906

203

(187

)

6,922

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

138,539

4,269

-

142,808

Corporate bonds and notes

24,925

222

(52

)

25,095

Asset-backed securities

3,521

-

(41

)

3,480

Certificates of deposit

149

2

-

151

Other securities

 

157

 

-

 

-

 

157

Total securities available-for-sale

$

477,326

$

11,015

$

(386

)

$

487,955

- 67 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 3 – Investment Securities – (continued)

Investment securities having a carrying value of approximately $71.2 million and $107.6 million as of December 31, 2021 and December 31, 2020, respectively, were pledged to secure public deposits, borrowings, Federal Reserve Discount Window borrowings and Federal Home Loan Bank advances and for other purposes required or permitted by law. As of December 31, 2021, and December 31, 2020, 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 as of December 31, 2021, 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, 2021

Amortized

Cost

Fair

Value

(dollars in thousands)

Investment Securities Available-for-Sale:

Due in one year or less

$

3,045

$

3,051

Due after one year through five years

10,203

10,280

Due after five years through ten years

5,136

5,338

Due after ten years

188,678

189,079

Residential mortgage pass-through securities

317,111

316,095

Commercial mortgage pass-through securities

10,814

10,469

Other securities

 

195

 

195

Total securities available-for-sale

$

535,182

$

534,507

Gross gains and losses from the sales and redemptions of investment securities for the years ended December 31, 2021, 2020 and 2019 were as follows:

Years Ended December 31,

2021

2020

2019

(dollars in thousands)

Proceeds

$

5,185

$

19,624

$

183,728

Gross gains on sales/redemptions of investment securities

$

195

$

29

$

401

Gross losses on sales/redemptions of investment securities

 

-

 

-

 

(681

)

Net gains (losses) on sales/redemptions of investment securities​​

 

195

 

29

 

(280

)

Tax provision on net gains

 

(48

)

 

(6

)

 

79

Net gains (losses) on sales/redemptions of investment securities, after tax​​

$

147

$

23

$

(201

)

- 68 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 3 – Investment Securities – (continued)

Impairment Analysis of Available-for-Sale Debt Securities

The following tables indicate gross unrealized losses for which an ACL has not been recorded, aggregated by investment category and by the length of continuous time individual securities have been in an unrealized loss position as of December 31, 2021 and December 31, 2020.

December 31, 2021

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

$

28,974

$

(625

)

$

28,974

$

(625

)

$

-

$

-

Residential mortgage pass-through securities

246,396

(2,884

)

214,701

(2,111

)

31,695

(773

)

Commercial mortgage pass-through securities

8,370

(463

)

4,682

(75

)

3,688

(388

)

Obligations of U.S. states and political subdivisions

89,473

(982

)

89,473

(982

)

-

-

Asset-backed securities

 

802

 

(2

)

 

802

 

(2

)

 

-

 

-

Total Temporarily Impaired Securities

$

374,015

$

(4,956

)

$

338,632

$

(3,795

)

$

35,383

$

(1,161

)

December 31, 2020

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

$

8,978

$

(65

)

$

8,975

$

(65

)

$

3

$

-

Residential mortgage pass-through securities

20,895

(41

)

20,886

(41

)

9

-

Commercial mortgage pass-through securities

3,954

(187

)

3,954

(187

)

-

-

Corporate bonds and notes

3,928

(52

)

3,928

(52

)

-

-

Asset-backed securities

 

3,083

 

(41

)

 

622

 

-

 

2,461

 

(41

)

Total Temporarily Impaired Securities

$

40,838

$

(386

)

$

38,365

$

(345

)

$

2,473

$

(41

)

On January 1, 2021, the Company adopted ASU 2016-13 and implemented the CECL methodology for allowance for credit losses on its investment securities available-for-sale. The new CECL methodology replaces the other-than-temporary impairment model that previously existed. The Company did not have a CECL day 1 impact attributable to its investment securities portfolio and did not have an allowance for credit losses as of December 31, 2021. The Company has elected to exclude accrued interest from the amortized cost of its investment securities available-for-sale. Accrued interest receivable for investment securities available for sale as of December 31, 2021 and December 31, 2020, totaled $1.6 million and $1.7 million, respectively.

- 69 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 3 – Investment Securities – (continued)

The Company evaluates securities in an unrealized loss position for impairment related to credit losses on at least a quarterly basis. Securities in unrealized loss positions are first assessed as to whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If one of the criteria is met, the security’s amortized cost basis is written down to fair value through current earnings. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value resulted from credit losses or other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Unrealized losses on asset backed securities and state and municipal securities have not been recognized into income because the issuers are of high credit quality, we do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery. The decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the securities. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. No allowance for credit losses for available-for-sale securities was recorded as of December 31, 2021.

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

v3.22.0.1
Loans and the Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Loans and the Allowance for Credit Losses

Note 4 – Loans and the Allowance for Credit Losses

Loans Receivable: The following table sets forth the composition of the Company’s loan portfolio segments, including net deferred fees, as of December 31, 2021 and December 31, 2020:

2021

2020

(dollars in thousands)

Commercial (1)

$

1,299,428

$

1,521,967

Commercial real estate

4,741,590

3,783,550

Commercial construction

540,178

617,747

Residential real estate

255,269

322,564

Consumer

 

1,886

 

1,853

Gross loans

6,838,351

6,247,681

Net deferred fees

 

(9,729

)

 

(11,374

)

Loans receivable

$

6,828,622

$

6,236,307

 

(1)

Included in commercial loans as of December 31, 2021 and December 31, 2020 were Paycheck Protection Program (“PPP”) loans of $93.1 million and $397.5 million, respectively. These loans are 100% federally guaranteed and currently not subject to any allocation of allowance for credit losses.

As of December 31, 2021, and 2020, loan balances of approximately $2.5 billion and $2.7 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.

- 71 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Loans and the Allowance for Credit Losses – (continued)

Loans Held-For-Sale: The following table presents loans held-for-sale by loan segment as of December 31, 2021 and December 31, 2020:

2021

2020

(dollars in thousands)

Commercial

$

-

$

-

Commercial real estate

 

-

 

1,990

Residential mortgage

 

250

 

2,720

Total carrying amount

$

250

$

4,710

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

December 31, 2021

Nonaccrual loans with ACL

Nonaccrual loans without ACL

Total Nonaccrual loans

(dollars in thousands)

Commercial

$

28,746

$

1,316

$

30,062

Commercial real estate

15,362

10,031

25,393

Commercial construction

-

3,150

3,150

Residential real estate

1,239

1,856

3,095

Consumer

-

-

-

Total

$

45,347

$

16,353

$

61,700

The following tables present total nonaccrual loans included in loans receivable by loan class as of December 31, 2020 (dollars in thousands):

December 31, 2020

Commercial

$

33,019

Commercial real estate

10,111

Commercial construction

14,015

Residential real estate

4,551

Consumer

-

Total nonaccrual loans

$

61,696

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

- 72 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Loans and the Allowance for Credit Losses – (continued)

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

We evaluate whether a modification, extension or renewal of a loan is a current period origination in accordance with GAAP. Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the table below. As of December 31, 2021, our loans based on year of origination and risk designation are as follows (dollars in thousands):

Term loans amortized cost basis by origination year

Revolving

Total

2021

2020

2019

2018

2017

Prior

Loans

Gross Loans

Commercial

Pass

$

403,203

 

 

$

58,534

 

 

$

54,485

$

60,409

$

95,727

$

86,556

$

471,588

$

1,230,502

Special mention

-

-

-

-

1

4,045

4,266

8,312

Substandard

170

-

1,842

13,298

9,740

21,024

14,540

60,614

Doubtful

-

-

-

-

-

-

-

-

Total Commercial

$

403,373

$

58,534

$

56,327

$

73,707

$

105,468

$

111,625

$

490,394

$

1,299,428

 

Commercial Real Estate

Pass

$

1,692,098

$

533,315

$

420,995

$

452,262

$

497,065

$

842,244

$

170,721

$

4,608,700

Special mention

-

-

-

-

5,142

50,438

6,601

62,181

Substandard

1,968

9,039

4,006

20,624

-

26,108

8,964

70,709

Doubtful

-

-

-

-

-

-

-

-

Total Commercial Real Estate

$

1,694,066

$

542,354

$

425,001

$

472,886

$

502,207

$

918,790

$

186,286

$

4,741,590

 

Commercial Construction

Pass

$

8,018

$

7,370

$

12,625

$

2,600

$

2,339

$

-

$

490,119

523,071

Special mention

-

-

-

-

350

-

1,443

1,793

Substandard

-

-

-

-

-

-

15,314

15,314

Doubtful

-

-

-

-

-

-

-

-

Total Commercial Construction

$

8,018

$

7,370

$

12,625

$

2,600

$

2,689

$

-

$

506,876

$

540,178

 

Residential Real Estate

Pass

$

27,081

$

29,539

$

23,611

$

25,070

$

28,701

$

66,249

$

44,221

$

244,472

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

7,262

3,535

10,797

Doubtful

-

-

-

-

-

-

-

-

Total Residential Real Estate

$

27,081

$

29,539

$

23,611

$

25,070

$

28,701

$

73,511

$

47,756

$

255,269

 

Consumer

Pass

$

1,594

$

85

$

39

$

21

$

28

$

(4

)

$

123

$

1,886

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

Total Consumer

$

1,594

$

85

$

39

$

21

$

28

$

(4

)

$

123

$

1,886

 

Total

Pass

$

2,131,994

$

628,843

$

511,755

$

540,362

$

623,860

$

995,045

$

1,176,772

$

6,608,631

Special mention

-

-

-

-

5,493

54,483

12,310

72,286

Substandard

2,138

9,039

5,848

33,922

9,740

54,394

42,353

157,434

Doubtful

-

-

-

-

-

-

-

-

Grand Total

$

2,134,132

$

637,882

$

517,603

$

574,284

$

639,093

$

1,103,922

$

1,231,435

$

6,838,351

- 73 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Loans and the Allowance for Credit Losses – (continued)

The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) as of December 31, 2020:

December 31, 2020

Pass

Special Mention

Substandard

Doubtful

Total

(dollars in thousands)

Commercial

$

1,447,097

 

 

$

30,725

 

 

$

43,930

$

215

$

1,521,967

Commercial real estate

3,700,498

49,143

33,909

-

3,783,550

Commercial construction

587,266

-

30,481

-

617,747

Residential real estate

311,174

-

11,390

-

322,564

Consumer

 

1,853

 

-

 

-

 

-

 

1,853

Gross loans

$

6,047,888

$

79,868

$

119,710

$

215

$

6,247,681

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

December 31, 2021

 

 

Real Estate

 

 

Other

 

 

Total

 

 

(dollars in thousands)

Commercial

 

$

6,385

 

 

$

26,182

 

 

$

32,567

 

Commercial real estate

 

 

55,244

 

 

 

-

 

 

 

55,244

 

Commercial construction

 

 

13,196

 

 

-

 

 

13,196

Residential real estate

 

8,856

 

 

-

 

 

8,856

Consumer

-

-

-

Total

$

83,681

$

26,182

$

109,863

- 74 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Loans and the Allowance for Credit Losses – (continued)

Impaired loans - Impaired loans disclosures presented below as of December 31, 2020 and as of and for the three and twelve months ended December 31, 2020 represent requirements prior to the adoption of CECL on January 1, 2021.

The following table provides an analysis of the impaired loans by class as of the year ended December 31, 2020.

December 31, 2020

No Related Allowance Recorded

Recorded Investment

Unpaid Principal Balance

Related Allowance

Average Recorded Investment

Interest Income Recognized

(dollars in thousands)

Commercial

$

11,325

$

11,835

-

$

11,627

$

203

Commercial real estate

13,105

13,449

-

13,215

287

Commercial construction

24,284

24,907

-

21,279

377

Residential real estate

5,378

5,723

-

4,733

104

Consumer

 

-

 

-

 

-

 

-

 

-

Total

$

54,092

$

55,914

 

-

$

50,854

$

971

 

With An Allowance Recorded

Commercial

$

23,736

$

69,122

$

12,985

$

23,625

$

-

Commercial real estate

2,722

2,722

1,329

2,722

-

Total

$

26,458

$

71,844

$

14,314

$

26,347

$

-

 

Total

Commercial

$

35,061

$

80,957

$

12,985

$

35,252

$

203

Commercial real estate

15,827

16,171

1,329

15,937

287

Commercial construction

24,284

24,907

-

21,279

377

Residential real estate

5,378

5,723

-

4,733

104

Consumer

 

-

 

-

 

-

 

-

 

-

Total (including related

allowance)

$

80,550

$

127,758

$

14,314

$

77,201

$

971

- 75 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Loans and the Allowance for Credit Losses – (continued)

Aging Analysis - The following table provides an analysis of the aging of the loans by class, excluding net deferred fees, that are past due as of December 31, 2021 and December 31, 2020 (dollars in thousands):

December 31, 2021

30-59 Days Past Due

60-89 Days Past Due

90 Days or Greater Past Due and Still Accruing

Nonaccrual

Total Past Due and Nonaccrual

Current

Gross Loans

Commercial

$

4,305

$

729

$

4,457

$

30,062

$

39,553

$

1,259,875

$

1,299,428

Commercial real Estate

1,622

1,009

5,935

25,393

33,959

4,707,631

4,741,590

Commercial construction

-

-

-

3,150

3,150

537,028

540,178

Residential real Estate

1,437

292

3,139

3,095

7,963

247,306

255,269

Consumer

 

-

-

-

-

-

 

1,886

 

1,886

Total

$

7,364

$

2,030

$

13,531

$

61,700

$

84,625

$

6,753,726

$

6,838,351

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

December 31, 2020

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

$

1,445

$

558

$

3,182

$

33,019

$

38,204

$

1,483,763

$

1,521,967

Commercial real estate

13,258

4,140

5,555

10,111

33,064

3,750,486

3,783,550

Commercial construction

2,472

-

-

14,015

16,487

601,260

617,747

Residential real estate

1,367

241

4,084

4,551

10,243

312,321

322,564

Consumer

 

2

 

-

 

-

 

-

 

2

 

1,851

 

1,853

Total

$

18,544

$

4,939

$

12,821

$

61,696

$

98,000

$

6,149,681

$

6,247,681

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

- 76 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Loans and the Allowance for Credit Losses – (continued)

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 credit losses for loans that are allocated to each loan portfolio segment. “Prior to January 1, 2021, the allowance for loan losses is based on a calculation methodology disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.”

 

 

December 31, 2021

 

 

 

Commercial

 

 

Commercial real estate

 

 

Commercial construction

 

 

Residential real estate

 

 

Consumer

 

 

 

 

 

Total

 

 

 

(dollars in thousands)

 

Allowance for credit losses - loans

Individually evaluated

 

$

15,131

$

955

$

-

 

 

$

131

 

 

$

-

 

 

 

 

$

16,217

 

Collectively evaluated

 

 

8,561

 

 

 

42,713

 

 

 

3,580

 

 

 

3,497

 

 

 

7

 

 

 

 

 

 

58,358

 

Acquired with deteriorated credit quality individually analyzed​​

 

 

2,277

 

 

 

1,921

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

4,198

 

Total

 

$

25,969

 

 

$

45,589

 

 

$

3,580

 

 

$

3,628

 

 

$

7

 

 

 

 

$

78,773

 

Gross loans

Individually evaluated

 

$

33,726

 

 

$

49,310

 

 

$

13,196

 

 

$

5,717

 

 

$

-

 

$

101,949

 

Collectively evaluated

 

1,260,537

 

 

4,686,346

 

 

526,982

 

 

246,413

 

 

$

1,886

 

$

6,722,164

 

Acquired with deteriorated credit quality individually analyzed​​

 

 

5,165

 

 

 

5,934

 

 

 

-

 

 

 

3,139

 

 

 

-

 

 

14,238

 

Total

 

$

1,299,428

 

 

$

4,741,590

 

 

$

540,178

 

 

$

255,269

 

 

$

1,886

 

 

 

 

 

 

$

6,838,351

 

 

 

December 31, 2020

 

 

 

Commercial

 

 

Commercial real estate

 

 

Commercial construction

 

 

Residential real estate

 

 

Consumer

 

 

Unallocated

 

 

Total

 

 

 

(dollars in thousands)

 

Allowance for loan losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

12,985

 

 

$

1,329

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

14,314

 

Collectively evaluated for impairment

 

 

15,412

 

 

 

33,373

 

 

 

7,787

 

 

 

1,928

 

 

 

4

 

 

 

568

 

 

 

59,072

 

Acquired portfolio

 

 

46

 

 

 

4,628

 

 

 

407

 

 

 

759

 

 

 

-

 

 

 

-

 

 

 

5,840

 

Acquired with deteriorated credit quality

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$

28,443

 

 

$

39,330

 

 

$

8,194

 

 

$

2,687

 

 

$

4

 

 

$

568

 

 

$

79,226

 

 

 

Gross loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

35,061

 

 

$

15,827

 

 

$

24,284

 

 

$

5,378

 

 

$

-

 

 

 

 

 

 

$

80,550

 

Collectively evaluated for impairment

 

 

1,414,626

 

 

 

2,959,978

 

 

 

574,118

 

 

 

241,925

 

 

 

1,627

 

 

 

 

 

 

 

5,192,274

 

Acquired portfolio

 

 

68,402

 

 

 

802,190

 

 

 

19,345

 

 

 

71,177

 

 

 

226

 

 

 

 

 

 

 

961,340

 

Acquired with deteriorated credit quality

 

 

3,878

 

 

 

5,555

 

 

 

-

 

 

 

4,084

 

 

 

-

 

 

 

 

 

 

 

13,517

 

Total

 

$

1,521,967

 

 

$

3,783,550

 

 

$

617,747

 

 

$

322,564

 

 

$

1,853

 

 

 

 

 

 

$

6,247,681

 

- 77 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Loans and the Allowance for Credit Losses – (continued)

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

Commercial

Commercial real estate

Commercial construction

Residential real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of January 1, 2021

$

28,443

$

39,330

$

8,194

$

2,687

$

4

$

568

$

79,226

Day 1 Adjustment CECL

(4,225

)

9,605

(961

)

2,697

9

(568

)

6,557

Balance as of January 1, 2021

24,218

48,935

7,233

5,384

13

-

85,783

Loan charge-offs

(382

)

(1,780

)

-

(235

)

-

-

(2,397

)

Recoveries

289

85

-

20

11

-

405

 

Provision for (reversal of) credit losses

 

1,844

 

(1,651

)

 

(3,653

)

 

(1,541

)

 

(17

)

 

-

 

(5,018

)

Balance as of December 31, 2021

$

25,969

$

45,589

$

3,580

$

3,628

$

7

$

-

$

78,773

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

Commercial

Commercial real estate

Commercial construction

Residential real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of January 1, 2020

$

8,349

$

20,853

$

7,304

$

1,685

$

3

$

99

$

38,293

Loan charge-offs

(552

)

-

-

(341

)

(7

)

-

(900

)

Recoveries

4

802

-

23

4

-

833

 

Provision for loan losses

 

20,642

 

17,675

 

890

 

1,320

 

4

 

469

 

41,000

Balance as of December 31, 2020

$

28,443

$

39,330

$

8,194

$

2,687

$

4

$

568

$

79,226

 

 

Commercial

 

 

Commercial real estate

 

 

Commercial construction

 

 

Residential real estate

 

 

Consumer

 

 

Unallocated

 

 

Total

 

 

 

(dollars in thousands)

 

Balance as of January 1, 2019

 

$

9,875

 

 

$

18,847

 

 

$

4,519

 

 

$

1,266

 

 

$

2

 

 

$

445

 

 

$

34,954

 

Loan charge-offs

 

 

(1,029

)

 

 

(3,470

)

 

 

-

 

 

 

(557

)

 

 

(20

)

 

 

-

 

 

 

(5,076

)

Recoveries

 

 

265

 

 

 

30

 

 

 

-

 

 

 

3

 

 

 

17

 

 

 

-

 

 

 

315

 

 

Provision for loan losses

 

 

(762)

 

 

 

5,446

 

 

 

2,785

 

 

 

973

 

 

 

4

 

 

 

(346

)

 

 

8,100

 

Balance as of December 31, 2019

 

$

8,349

 

 

$

20,853

 

 

$

7,304

 

 

$

1,685

 

 

$

3

 

 

$

99

 

 

$

38,293

 

Troubled Debt Restructurings

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

As of December 31, 2021, there were no commitments to lend additional funds to borrowers whose loans were on nonaccrual status or were contractually past due 90 days or greater and still accruing interest, or whose terms have been modified in a TDR.

- 78 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Loans and the Allowance for Credit Losses – (continued)

As of December 31, 2021, TDRs totaled $79.5 million, of which $35.9 million were on nonaccrual status and $43.6 million were classified as accruing and were performing under their restructured terms. As of December 31, 2020, TDRs totaled $49.4 million, of which $25.7 million were on nonaccrual status and $23.7 million were classified as accruing and were performing under their restructured terms. The Company has allocated $10.4 million and $-0- of specific allowance related to TDRs as of December 31, 2021 and December 31, 2020, respectively. There were no TDRs for which there was a payment default within twelve months following the modification during the year ended December 31, 2021, 2020 and 2019.

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

Number of

Loans

Pre-Modification

Outstanding

Recorded

Investment

Post-Modification

Outstanding

Recorded

Investment

(dollars in thousands)

Troubled debt restructurings:

Commercial

4

$

1,276

$

1,276

Commercial real estate

11

35,635

35,635

Commercial construction

1

1,641

1,641

Residential real estate

3

1,758

1,758

 

Total

 

19

$

40,310

$

40,310

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

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

Number of

Loans

Pre-Modification

Outstanding

Recorded

Investment

Post-Modification

Outstanding

Recorded

Investment

(dollars in thousands)

Troubled debt restructurings:

Commercial

1

$

188

$

188

Commercial real estate

1

93

93

Commercial construction

1

4,021

4,021

Residential real estate

2

2,184

2,184

 

Total

 

5

$

6,486

$

6,486

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

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2019:

Number of

Loans

Pre-Modification

Outstanding

Recorded

Investment

Post-Modification

Outstanding

Recorded

Investment

(dollars in thousands)

Troubled debt restructurings:

Commercial

11

$

14,558

$

14,558

Commercial real estate

3

5,863

5,863

Commercial construction

3

5,630

5,630

 

Total

 

17

$

26,051

$

26,051

- 79 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Loans and the Allowance for Credit Losses – (continued)

Included in the commercial loan segment of the troubled debt restructurings is one taxi medallion loan totaling $0.3 million. This taxi medallion loan was on nonaccrual status prior to modification and will remain on nonaccrual status post-modification. All loan modifications during the year ended December 31, 2019 included interest rate reductions and/or maturity extensions.

In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with clients affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., three to nine months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Additionally, the statement allows for the Company to extend deferrals for an additional term at the option of the Company. Provisions of the CARES Act largely mirrored the provisions of the interagency statement, providing that modified loans would not be considered TDR’s if they were performing at year-end 2019, and the other conditions set forth in the interagency statement were met. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented or at year-end 2019. As of December 31, 2021, the Bank had 1 deferred loan outstanding totaling $0.5 million, compared to 113 deferred loans totaling $207.1 million as of December 31, 2020 that were not considered TDRs.

Allowance for Credit Losses for Unfunded Commitments

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

Year Ended December 31, 2021

Balance as of beginning of period

$

-

Day 1 Effect of CECL

2,833

Provision for (reversal of) credit losses - unfunded commitments

(482

)

Balance as of end of period

$

2,351

Components of (Reversal of) Provision for Credit Losses

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

Year Ended December 31, 2021

Provision for (reversal of) credit losses - loans

$

5,018

Provision for (reversal of) credit losses - unfunded commitments

(482

)

Provision for (reversal of) credit losses

$

(5,500

)

v3.22.0.1
Premises and Equipment
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Premises and Equipment

Note 5 – Premises and Equipment

Premises and equipment are summarized as follows:

Estimated

Useful Life

(Years)

2021

2020

(dollars in thousands)

Land

-

$

7,232

$

7,232

Buildings

10-25

10,509

15,159

Furniture, fixtures and equipment

3-7

24,137

40,930

Leasehold improvements

10-20

 

27,343

 

28,860

Subtotal

69,221

92,181

Less: accumulated depreciation, amortization and fair value adjustments

 

40,189

 

62,073

Total premises and equipment, net

$

29,032

$

30,108

Depreciation and amortization expense of premises and equipment was $3.8 million, $4.2 million and $3.1 million for 2021, 2020 and 2019, respectively.

Finance Leases: The Company acquired a lease agreement for a building under a finance lease. The lease arrangement requires monthly payments through 2028.

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

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Capital Lease

 

$

3,423

 

 

$

3,408

 

Less: accumulated amortization

 

 

2,224

 

 

 

2,038

 

 

 

$

1,199

 

 

$

1,370

 

The following is a schedule by year of future minimum lease payments under the finance lease, together with the present value of net minimum lease payments as of December 31, 2021 (dollars in thousands):

2022

$

321

2023

323

2024

353

2025

353

2026

353

Thereafter

 

676

Total minimum lease payments

2,379

 

Less amount representing interest

 

444

Present value of net minimum lease payments

$

1,935

- 81 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 5 – Premises and Equipment – (continued)

The Company leases certain premises and equipment under operating leases. As of December 31, 2021, the Company had lease liabilities totaling $12.4 million and right-of-use assets totaling $11.0 million. As of December 31, 2021, the weighted average remaining lease term for operating leases was 5.8 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.8%. Total lease costs for the year ended December 31, 2021 was $3.2 million.

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

December 31,

2021

(dollars in thousands)

Lease payments due:

Less than 1 year

$

2,807

1 year through less than 2 years

2,586

2 years through less than 3 years

2,065

3 years through less than 4 years

1,773

4 years through 5 years

1,668

After 5 years

2,680

Total undiscounted cash flows

13,579

Impact of discounting

(1,162

)

Total lease liability

$

12,417

v3.22.0.1
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

Note 6 – Goodwill and Other Intangible Assets

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

Based upon management’s review through December 31, 2021, the Company’s goodwill was not impaired. Management concludes that the ASC 350 goodwill step zero test has been passed, and no further testing is required.

Goodwill

The change in goodwill during the year is as follows:

2021

2020

(dollars in thousands)

Balance, January 1

$

208,372

$

162,574

Acquired goodwill

-

 

45,798

Impairment

 

-

 

-

Balance, December 31

$

208,372

$

208,372

- 82 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 6 – Goodwill and Other Intangible Assets – (continued)

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)

Core deposit intangibles

 

December 31, 2021

$

18,515

$

(9,518)

$

8,997

 

Core deposit intangibles

 

December 31, 2020

$

18,515

$

(7,538)

$

10,977

 

Aggregate amortization expense was approximately $2.0 million, $2.6 million and $1.4 million for 2021, 2020 and 2019, respectively. Estimated amortization expense for each of the next five years (dollars in thousands):

2022

$

1,684

2023

1,438

2024

1,235

2025

1,116

2026

1,050

v3.22.0.1
Deposits
 12 Months Ended
Dec. 31, 2021
Deposits:  
Deposits

Note 7 – Deposits

Time Deposits

As of December 31, 2021, and 2020, the Company's total time deposits were $1.2 billion and $1.5 billion, respectively. Included in time deposits were nonreciprocal brokered time deposits of $215.2 million and $217.5 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the contractual maturities of these time deposits were as follows (dollars in thousands):

2022

$

745,411

2023

176,351

2024

45,678

2025

 

51,216

2026

 

105,342

2027

25,995

Sub-Total

$

1,149,993

Fair value premium

116

Total

$

1,150,109

The amount of time deposits with balances in excess of $250,000 were $250.5 million and $368.3 million as of December 31, 2021 and 2020, respectively.

v3.22.0.1
FHLB Borrowings
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
FHLB Borrowings

Note 8 – FHLB Borrowings

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

December 31, 2021

December 31, 2020

Amount

Rate

Amount

Rate

(dollars in thousands)

By remaining period to maturity:

Less than 1 year

$

390,549

0.56

%

$

297,570

0.84

1 year through less than 2 years

50,000

1.84

%

75,644

1.42

2 years through less than 3 years

-

n/a

50,000

1.84

3 years through less than 4 years

25,000

1.00

-

n/a

4 years through 5 years

 

2,050

2.23

 

-

n/a

After 5 Years

 

714

2.91

%

 

2,824

2.42

FHLB borrowings - gross

468,313

0.73

%

426,038

1.07

%

Fair value (discount) premium

(120

)

(84

)

Total FHLB borrowings

$

468,193

$

425,954

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

Advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances have fixed rates. The advances as of December 31, 2021 were primarily collateralized by approximately $1.9 billion of commercial mortgage and residential loans, net of required over collateralization amounts, under a blanket lien arrangement. As of December 31, 2021, the Company had remaining borrowing capacity of approximately $867.3 million at the FHLB.

v3.22.0.1
Subordinated Debentures
 12 Months Ended
Dec. 31, 2021
Subordinated Borrowings [Abstract]  
Subordinated Debentures

Note 9 – Subordinated Debentures

During 2003, the Company formed a statutory business trust, which exists for the exclusive purpose of (i) issuing Trust Securities representing undivided beneficial interests in the assets of the Trust; (ii) investing the gross proceeds of the Trust securities in junior subordinated deferrable interest debentures (subordinated debentures) of the Company; and (iii) engaging in only those activities necessary or incidental thereto. On December 19, 2003, Center Bancorp Statutory Trust II, a statutory business trust and wholly-owned subsidiary of the Parent Corporation issued $5.0 million of MMCapS capital securities to investors due on January 23, 2034. The capital securities presently qualify as Tier I capital. The trust loaned the proceeds of this offering to the Company and received in exchange $5.2 million of the Parent Corporation’s subordinated debentures. The subordinated debentures are redeemable in whole or in part prior to maturity. The floating interest rate on the subordinate debentures is three-month LIBOR plus 2.85% and reprices quarterly. The rate as of December 31, 2021 was 2.98%. These subordinated debentures and the related income effects are not eliminated in the consolidated financial statements as the statutory business trust is not consolidated in accordance with FASB ASC 810-10. Distributions on the subordinated debentures owned by the subsidiary trust have been classified as interest expense in the Consolidated Statements of Income.

The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II as of December 31, 2021 and December 31, 2020.

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

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

On January 11, 2018, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “2018 Notes”). The 2018 Notes 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 2018 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.

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

v3.22.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10 – Income Taxes

The current and deferred amounts of income tax expense for December 2021, 2020 and 2019 are as follows (dollars in thousands):

 

 

2021

 

 

2020

 

 

2019

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

32,364

 

 

$

19,590

 

 

$

15,509

 

State

 

 

12,325

 

 

 

7,006

 

 

 

5,018

 

Subtotal

 

 

44,689

 

 

 

26,596

 

 

 

20,527

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(110

)

 

 

(3,881

)

 

 

916

 

State

 

 

126

 

 

(3,614

)

 

 

(812

)

Subtotal

 

 

16

 

 

(7,495

)

 

 

104

 

Income tax expense

 

$

44,705

 

 

$

19,101

 

 

$

20,631

 

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

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

 

 

2021

 

 

2020

 

 

2019

 

Income before income tax expense

 

$

175,058

 

 

$

90,390

 

 

$

94,026

 

Federal statutory rate

 

 

21

%

 

 

21

%

 

 

21

%

Computed “expected” Federal income tax expense

 

 

36,762

 

 

 

18,982

 

 

 

19,745

 

State tax, net of federal tax benefit

 

 

9,127

 

 

 

1,913

 

 

 

3,436

 

Bank owned life insurance

 

 

(1,001

)

 

 

(1,052

)

 

 

(732

)

Tax-exempt interest and dividends

 

 

(1,405

)

 

 

(1,491

)

 

 

(2,519

)

Tax benefits from stock-based compensation

 

 

(261

)

 

 

157

 

 

 

(27

)

Other, net

 

 

1,483

 

 

 

592

 

 

 

728

 

Income tax expense

 

$

44,705

 

 

$

19,101

 

 

$

20,631

 

- 86 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 10 – Income Taxes – (continued)

The tax effects of temporary differences that give rise to significant portions of the deferred tax asset and deferred tax liability as of December 31, 2021 and 2020 are presented in the following table:

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Deferred tax assets

 

 

 

 

 

 

 

 

Allowance for credit losses

 

$

23,955

 

 

$

23,399

 

Depreciation

 

 

205

 

 

 

-

 

Pension actuarial losses

 

 

1,301

 

 

 

1,385

 

New Jersey net operating loss

 

 

3,609

 

 

 

4,370

 

Deferred compensation

 

 

2,786

 

 

 

1,835

 

Unrealized loss on AFS

 

 

191

 

 

 

-

 

Deferred loan costs, net of fees

 

 

2,163

 

 

 

357

 

Capital lease

 

 

222

 

 

 

225

 

Nonaccrual interest

 

 

62

 

 

 

51

 

Other

 

 

3,703

 

 

 

4,519

 

Total deferred tax assets

 

$

38,197

 

 

$

36,141

 

Deferred tax liabilities

 

 

 

 

 

 

 

 

Employee benefit plans

 

$

(2,289

)

 

$

(2,161

)

Purchase accounting

 

 

(925

)

 

 

(1,821

)

Depreciation

 

 

-

 

 

(187

)

Prepaid expenses

 

 

(288

)

 

 

(201

)

Market discount accretion

 

 

(437

)

 

 

(428

)

Unrealized gains on securities and swaps

 

 

(941

)

 

 

(2,171

)

Other

 

 

(1,562

)

 

 

-

 

Total deferred tax liabilities

 

 

(6,442

)

 

 

(6,969

)

Net deferred tax assets

 

$

31,755

 

 

$

29,172

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. The ultimate realization of deferred tax assets 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 2021 and 2020, 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 2018 tax return year and forward. The Company’s state income tax returns are generally open from the 2016 and later tax return years based on individual state statutes of limitations.

v3.22.0.1
Preferred Stock
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Preferred Stock

Note 11 – Preferred Stock

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

v3.22.0.1
Commitments, Contingencies and Concentrations of Credit Risk
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments, Contingencies and Concentrations of Credit Risk

Note 12 – Commitments, Contingencies and Concentrations of Credit Risk

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

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

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

The following table provides a summary of financial instruments with off-balance sheet risk as of December 31, 2021 and 2020:

2021

2020

(dollars in thousands)

Commitments under commercial loans and lines of credit

$

647,971

$

525,606

Home equity and other revolving lines of credit

53,180

65,690

Outstanding commercial mortgage loan commitments

514,473

327,745

Standby letters of credit

25,271

28,738

Overdraft protection lines

 

973

 

1,020

Total

$

1,241,868

$

948,799

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.

- 88 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

v3.22.0.1
Transactions with Executive Officers, Directors and Principal Stockholders
 12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Transactions with Executive Officers, Directors and Principal Stockholders

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

Loans to principal officers, directors, and their affiliates during the years ended December 31, 2021 and 2020 were as follows:

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Balance, January 1

 

$

21,534

 

 

$

57,409

 

New loans

 

 

5,250

 

 

 

1,500

 

Repayments

 

 

(9,168

)

 

 

(37,375

)

Balance, December 31

 

$

17,616

 

 

$

21,534

 

Deposits from principal officers, directors, and their affiliates as of December 31, 2021 and 2020 were $59.5 million and $55.4 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.

v3.22.0.1
Stockholders' Equity and Regulatory Requirements
 12 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
Stockholders' Equity and Regulatory Requirements

Note 14 – Stockholders’ Equity and Regulatory Requirements

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of December 31, 2021, the Bank and the Parent Corporation meet all capital adequacy requirements to which they are subject.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If an institution is classified as adequately capitalized or lower, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is growth and expansion, and capital restoration plans are required. As of December 31, 2021, and 2020, 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.

- 89 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 14 – Stockholders’ Equity and Regulatory Requirements – (continued)

The following is a summary of the Bank’s and the Parent Corporation’s actual capital amounts and ratios as of December 31, 2021 and 2020, 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, 2021

Leverage (Tier 1) capital

$

891,730

11.43%

$

312,166

4.00%

$

390,207

5.00%

Risk-Based Capital:

CET 1

$

891,730

11.96%

$

335,641

4.50%

$

484,815

6.50%

Tier 1

891,730

11.96%

447,522

6.00%

596,696

8.00%

Total

1,002,753

13.44%

596,696

8.00%

745,869

10.00%

 

December 31, 2020

Leverage (Tier 1) capital

$

776,430

10.64%

$

291,958

4.00%

$

364,947

5.00%

Risk-Based Capital:

CET 1

$

776,430

12.24%

$

285,473

4.50%

$

412,349

6.50%

Tier 1

776,430

12.24%

380,630

6.00%

507,507

8.00%

Total

887,906

14.00%

507,507

8.00%

634,384

10.00%

Minimum Capital

Adequacy

For Classification

as Well Capitalized

 

Amount

Ratio

Amount

Ratio

Amount

Ratio

The Company

(dollars in thousands)

December 31, 2021

Leverage (Tier 1) capital

$

909,577

11.65%

$

312,194

4.00%

N/A

N/A

Risk-Based Capital:

CET 1

$

793,495

10.64%

$

335,648

4.50%

N/A

N/A

Tier 1

909,577

12.19%

447,531

6.00%

N/A

N/A

Total

1,138,350

15.26%

596,708

8.00%

N/A

N/A

 

December 31, 2020

Leverage (Tier 1) capital

$

694,895

9.51%

$

292,349

4.00%

N/A

N/A

Risk-Based Capital:

CET 1

$

689,740

10.79%

$

287,746

4.50%

N/A

N/A

Tier 1

694,895

10.87%

383,661

6.00%

N/A

N/A

Total

964,121

15.08%

511,548

8.00%

N/A

N/A

As of December 31, 2021, both the Company and Bank satisfy the capital conservation buffer requirements applicable to them. The lowest ratio at the Company is the CET 1 Ratio which was 3.64% above the minimum buffer ratio and, at the Bank, the lowest ratio was the Total Risk Based Capital Ratio which was 2.94% above the minimum buffer ratio.

v3.22.0.1
Comprehensive Income
 12 Months Ended
Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Comprehensive Income

Note 15 – Comprehensive Income

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

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

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

For the Year Ended

December 31,

(dollars in thousands)

2021

2020

2019

Sale of investment securities available-for-sale

$

195

$

29

$

(280

)

Net gains (losses) on sale of investment securities

 

(48

)

 

(6

)

 

79

Income tax expense

147

23

(201

)

Net interest (expense)/income on swaps

(1,873

)

(1,577

)

677

Interest expense

 

528

 

443

 

(190

)

Income tax expense

(1,345

)

(1,134

)

487

Amortization of pension plan net actuarial gains/(losses)

(299

)

(301

)

(358

)

Salaries and employee benefits

 

84

 

84

 

101

Income tax benefit

 

(215

)

 

(217

)

 

(257

)

Total reclassification

$

(1,413

)

$

(1,328

)

$

29

Accumulated other comprehensive (loss)/income as of December 31, 2021 and 2020 consisted of the following:

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Investment securities available-for-sale, net of tax

 

$

(484

)

 

$

7,859

 

Cash flow hedge, net of tax

 

 

2,406

 

 

(1,520

)

Defined benefit pension and post-retirement plans, net of tax

 

 

(3,326

)

 

 

(3,542

)

Total

 

$

(1,404

)

 

$

2,797

 

v3.22.0.1
Pension and Other Benefits
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Pension and Other Benefits

Note 16 – Pension and Other Benefits

Defined Benefit Plans

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

The following table sets forth changes in projected benefit obligation, changes in fair value of plan assets, funded status, and amounts recognized in the consolidated statements of condition for the Company’s pension plans as of December 31, 2021 and 2020.

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Change in Benefit Obligation:

 

 

 

 

 

 

 

 

Projected benefit obligation as of January 1,

 

$

13,476

 

 

$

12,533

 

Interest cost

 

 

284

 

 

 

364

 

Actuarial loss

 

 

1,584

 

 

 

1,300

 

Benefits paid

 

 

(700

)

 

 

(721

)

Projected benefit obligation as of December 31,

 

$

14,644

 

 

$

13,476

 

Change in Plan Assets:

 

 

 

 

 

 

 

 

Fair value of plan assets as of January 1,

 

$

15,868

 

 

$

14,616

 

Actual return on plan assets

 

 

2,436

 

 

 

1,973

 

Employer contributions

 

 

-

 

 

 

-

 

Benefits paid

 

 

(700

)

 

 

(721

)

Fair value of plan assets as of December 31,

 

$

17,604

 

 

$

15,868

 

Funded status

 

$

2,960

 

 

$

2,392

 

The accumulated benefit obligation was $14.6 million and $13.5 million as of the year ended December 31, 2021 and 2020, 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 $0.1 of the net actuarial loss reported in the following table as of December 31, 2021 as a component of net periodic pension expense during 2022.

2021

2020

(dollars in thousands)

Net actuarial loss recognized in accumulated other comprehensive income

 

$

4,627

 

 

$

4,926

 

The net periodic pension expense and other comprehensive income (before tax) for 2021, 2020 and 2019 includes the following:

2021

2020

2019

(dollars in thousands)

Interest cost

 

$

284

 

 

$

364

 

 

$

453

 

Expected return on plan assets

(852

)

(784

)

(697

)

Net amortization

 

299

 

301

 

358

Total net periodic pension expense

$

(269

)

$

(119

)

$

114

 

Total gain recognized in other comprehensive income

 

(299

)

 

(190

)

 

(150

)

Total recognized in net periodic expense and other comprehensive income (before tax)

$

(568

)

$

(309

)

$

(36

)

- 92 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 16 – Pension and Other Benefits – (continued)

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

2021

2020

Discount rate

2.57

%

2.17

%

Rate of compensation increase

N/A

N/A

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

2022

2021

2020

Discount rate

2.57

%

2.17

%

2.99

%

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 returns for each asset class. An average weighted real-return range is computed reflecting the plan’s expected asset mix, and that range, when combined with an expected inflation range, produces an overall best-estimate expected return range. Specific factors such as the plan’s investment policy, reinvestment risk and investment volatility are taken into consideration during the construction of the best estimate real return range, as well as in the selection of the final return assumption from within the range.

Plan Assets

The general investment policy of the Pension Trust is for the fund to experience growth in assets that will allow the market value to exceed the value of benefit obligations over time. The Company’s pension plan asset allocation as of December 31, 2021 and 2020, target allocation, and expected long-term rate of return by asset are as follows:

Target

Allocation

% of Plan

Assets –

Year Ended

2021

% of Plan

Assets –

Year Ended

2020

Weighted

Average

Expected

Long-Term

Rate of

Return

Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

45%

59%

55%

3.2%

International

15%

5%

6%

1.3%

Debt and/or fixed income securities

38%

34%

35%

0.9%

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

 

2%

 

2%

 

4%

 

0.1%

Total

 

100%

$

100%

$

100%

$

5.5%

- 93 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 16 – Pension and Other Benefits – (continued)

The fair values of the Company’s pension plan assets as of December 31, 2021 and 2020, by asset class, are as follows:

December 31,

2021

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

 

$

178

 

 

$

178

 

 

$

-

 

 

$

-

 

Equity securities:

U.S. companies

10,551

10,551

-

-

International companies

897

897

-

-

Debt and/or fixed income securities

5,804

5,804

-

-

Commodity funds

111

111

-

-

Real estate funds

 

63

 

63

 

-

 

-

Total

$

17,604

$

17,604

$

-

$

-

December 31,

2020

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

 

$

406

 

 

$

406

 

 

$

-

 

 

$

-

 

Equity securities:

U.S. companies

8,737

8,737

-

-

International companies

1,031

1,031

-

-

Debt and/or fixed income securities

5,522

5,522

-

-

Commodity funds

115

115

-

-

Real estate funds

 

57

 

57

 

-

 

-

Total

$

15,868

$

15,868

$

-

$

-

- 94 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 16 – Pension and Other Benefits – (continued)

Fair Value of Plan Assets

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

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

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 2022.

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):

2022

$

726

2023

708

2024

697

2025

697

2026

702

2027-2031

3,682

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 2021, 2020 and 2019, employer contributions amounted to $1.6 million, $1.6 million and $1.3 million, respectively.

Supplemental Executive Retirement Plan (“SERP”)

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

v3.22.0.1
Stock Based Compensation
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock Based Compensation

Note 17 – Stock Based Compensation

The Company’s stockholders approved the 2017 Equity Compensation Plan (“the Plan”) on May 23, 2017. The Plan eliminates all remaining issuable shares under previous plans and is the only outstanding plan as of December 31, 2021. The maximum number of shares of common stock or equivalents which may be issued under the Plan, is 750,000. Grants under the Plan can be in the form of stock options (qualified or non-qualified), restricted shares, restricted share units or performance units. Shares available for grant and issuance under the Plan as of December 31, 2021 are approximately 320,613. 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 the fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant, ratably over the vesting period. Forfeiture rates are not estimated but are recorded as incurred. Stock-based compensation expense was $4.5 million, $2.9 million and $2.7 million for the years ended December 31, 2021, 2020 and 2019 respectively.

Activity under the Company’s options for the year ended December 31, 2021 was as follows:

 

 

Number of

Stock

Options

 

 

Weighted-

Average

Exercise

Price

 

 

Weighted-

Average

Remaining

Contractual

Term

(in years)

 

 

Aggregate

Intrinsic Value

 

Outstanding as of December 31, 2020

 

 

38,013

 

 

$

9.03

 

 

 

 

 

 

Granted

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

Exercised

 

 

(14,247

)

 

 

7.51

 

 

 

 

 

 

 

 

 

Forfeited/cancelled/expired

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2021

 

 

23,766

 

 

 

9.94

 

 

 

0.6

 

 

$

541,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable as of December 31, 2021

 

 

23,766

 

 

$

9.94

 

 

 

0.6

 

 

$

541,000

 

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, 2021 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, 2021. This amount changes based on the fair market value of the Company’s stock.

Activity under the Company’s restricted shares for year ended December 31, 2021 was as follows:

 

 

Nonvested

Shares

 

 

Weighted-

Average

Grant Date

Fair Value

 

Nonvested as of December 31, 2020

 

 

113,114

 

 

$

18.17

 

Granted

 

 

49,971

 

 

 

25.33

 

Vested

 

 

(75,257

)

 

 

18.82

 

Forfeited/cancelled/expired

 

 

(5,135

)

 

 

20.22

 

Nonvested December 31, 2021

 

 

82,693

 

 

$

21.78

 

- 96 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 17 – Stock Based Compensation – (continued)

As of December 31, 2021, there was approximately $1.0 million of total unrecognized compensation cost related to nonvested restricted shares granted. The cost is expected to be recognized over a weighted average period of 1.1 years.

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

Units

(expected)

Units

(maximum)

Weighted

Average Grant

Date Fair

Value

Unearned as of December 31, 2020

 

147,636

 

$

17.29

 

Awarded

37,543

25.24

Change in estimate

65,389

15.46

Vested shares

 

(29,421

)

31.35

Forfeited/cancelled/expired

 

(11,153

)

 

17.06

Unearned as of December 31, 2021

 

209,994

 

233,638

$

16.18

As of December 31, 2021, the specific number of shares related to performance units that were expected to vest was 216,575, determined by actual performance in consideration of the established range of the performance targets, which is consistent with the level of expense currently being recognized over the vesting period. Should this expectation change, additional compensation expense could be recorded in future periods or previously recognized expense could be reversed. As of December 31, 2021, the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 218,835. During the year ended December 31, 2021, 29,421 shares vested. A total of 14,710 shares were netted from the vested shares to satisfy employee tax obligations. The net shares issued from vesting of performance units during the year ended December 31, 2021 were 14,711 shares. As of December 31, 2021, compensation cost of approximately $1.2 million related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 1.6 years.

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

 

 

Units

(expected)

 

 

Weighted

Average Grant

Date Fair

Value

 

Unearned as of December 31, 2020

169,313

$

14.07

Awarded

45,027

25.24

Vested shares

 

(68,916

)

16.29

Forfeited/cancelled/expired

(8,476

)

15.83

Unearned as of December 31, 2021

 

136,948

$

16.52

Any forfeitures would result in previously recognized expense being reversed. A portion of the shares that vest will be netted out to satisfy the tax obligations of the recipient. During the year ended December 31, 2021, 68,916 shares vested. A total of 34,458 shares were netted from the vested shares to satisfy employee tax obligations. The net shares issued from vesting of restricted stock units during the year ended December 31, 2021 were 34,458 shares. As of December 31, 2021, compensation cost of approximately $1.1 million related to non-vested restricted stock units, not yet recognized, is expected to be recognized over a weighted-average period of 1.3 years.

v3.22.0.1
Dividends and Other Restrictions
 12 Months Ended
Dec. 31, 2021
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract]  
Dividends and Other Restrictions

Note 18 – Dividends and Other Restrictions

Certain restrictions, including capital requirements, exist on the availability of undistributed net profits of the Bank for the future payment of dividends to the Parent Corporation. A dividend may not be paid if it would impair the capital of the Bank. As of December 31, 2021, approximately $256.9 million was available for payment of dividends based on regulatory guidelines.

v3.22.0.1
Derivatives
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives

Note 19 – 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, January 1, 2020 and March 3, 2020 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 We are required to pay fixed-rates of interest ranging from 0.88% to 1.93% and receive variable rates of interest that reset quarterly based on three-month LIBOR. Expiration dates for the swaps range from January 2022 to April 2022. 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.

In addition, during 2021, the Company entered into 9 forward starting pay fixed-rate interest rate swaps, with a total notional amount of $400 million, which are also designated as a cash flow hedge of a future Federal Home Loan Bank advance. We are required to pay fixed rates of interest ranging from 0.631% to 1.23% and receive variable rates of interest that reset quarterly based on the daily compounding secured overnight financing rate (“SOFR”). The forward starting swaps have commencing payment dates ranging from October 2021 to August 2022, with expiration dates ranging from December 2025 to March 2028.

Interest expense recorded on these swap transactions totaled approximately $(1.9) million, $(1.6) million, and $(0.7) million during 2021, 2020, and 2019 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:

2021

(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

$

3,593

$

1,873

$

-

2020

(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

$

(3,423)

$

1,577

$

-

The following table reflects the cash flow hedges included in the Consolidated Statements of Condition as of December 31, 2021 and December 31, 2020:

2021

2020

(dollars in thousands)

Notional

Amount

Fair Value

Notional

Amount

Fair Value

Included in other assets/(liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps related to FHLB Advances

$

475,000

$

3,347

$

175,000

$

(2,119)

- 98 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 19 – Derivatives – (continued)

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, 2021 and December 31, 2020.

v3.22.0.1
Fair Value Measurements and Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Fair Value of Financial Instruments

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

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

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

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

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

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

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

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

An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to 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 as of December 31, 2021 and December 31, 2020:

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.

- 99 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 20 – Fair Value Measurements and Fair Value of Financial Instruments – (continued)

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

For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used as of December 31, 2021 and December 31, 2020 are as follows:

December 31, 2021

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

$

50,360

$

-

$

50,360

$

-

Residential mortgage pass-through securities

316,095

-

316,095

-

Commercial mortgage pass-through securities

10,469

-

10,469

-

Obligations of U.S. states and political subdivision

145,625

-

137,060

8,565

Corporate bonds and notes

9,049

-

9,049

-

Asset-backed securities

2,564

-

2,564

-

Certificates of deposit

150

-

150

-

Other securities

 

195

 

195

 

-

 

-

Total available-for-sale

$

534,507

$

195

$

525,747

$

8,565

 

Equity securities

13,794

11,081

2,713

-

Derivatives

3,347

-

3,347

-

Total assets

$

551,648

$

11,276

$

531,807

$

8,565

There were no transfers between Level 1 and Level 2 during the years ended December 31, 2021 and 2020.

- 100 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 20 – Fair Value Measurements and Fair Value of Financial Instruments – (continued)

December 31, 2020

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

$

38,458

$

-

$

38,458

$

-

Residential mortgage pass-through securities

270,884

-

270,884

-

Commercial mortgage pass-through securities

6,922

-

6,922

-

Obligations of U.S. states and political subdivision

142,808

-

133,964

8,844

Corporate bonds and notes

25,095

-

25,095

-

Asset-backed securities

3,480

-

3,480

-

Certificates of deposit

151

-

151

-

Other securities

 

157

 

157

 

-

 

-

Total available-for-sale

$

487,955

$

157

$

478,954

$

8,844

 

Equity securities

13,387

13,387

-

-

Total assets

$

501,343

$

13,544

$

478,954

$

8,844

 

Liabilities

Derivatives

$

(2,119

)

$

-

$

(2,119

)

$

-

Total liabilities

$

(2,119

)

$

-

$

(2,119

)

$

-

Assets Measured at Fair Value on a Non-Recurring Basis

The Company may be required periodically to measure certain assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or impairment write-downs of individual assets. The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis as of December 31, 2021 and December 31, 2020:

- 101 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 20 – Fair Value Measurements and Fair Value of Financial Instruments – (continued)

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

For assets measured at fair value on a nonrecurring basis, the fair value measurements as of December 31, 2021 and December 31, 2020 are as follows:

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

Assets measured at fair value on a nonrecurring basis:

 

December 31,

2021

 

 

Quoted

Prices

in Active

Markets for

Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Collateral dependent loans:

 

(dollars in thousands)

 

Commercial

$

13,399

$

-

$

-

$

13,399

Commercial real estate

20,185

-

-

20,185

Residential real estate

2,794

-

-

2,794

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

Assets measured at fair value on a nonrecurring basis:

 

December 31,

2020

 

 

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

$

10,751

$

-

$

-

$

10,751

Commercial real estate

1,393

-

-

1,393

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

Impaired loans - Collateral dependent impaired loans as of December 31, 2020 that required a valuation allowance were $26.5 million with a valuation allowance of $14.3 million.

- 102 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 20 – Fair Value Measurements and Fair Value of Financial Instruments – (continued)

Assets Measured With Significant Unobservable Level 3 Inputs

Recurring basis

The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2021 and year ended December 31, 2020:

 

Municipal

Securities

 

 

(dollars in thousands)

 

Beginning balance, January 1, 2021

$

8,844

 

Principal paydowns

 

(279

)

Ending balance, December 31, 2021

$

8,565

 

Municipal

Securities

(dollars in thousands)

Beginning balance, January 1, 2020

$

9,114

 

Principal paydowns

 

(270

)

Ending balance, December 31, 2020

$

8,844

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of December 31, 2021 and December 31, 2020. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

December 31, 2021

Fair Value

Valuation

Techniques

Unobservable

Input

Range

Securities available-for-sale:

 

 

 

 

(dollars in thousands)

 

 

 

 

 

Municipal securities

$

8,565

Discounted cash flows

Discount rate

2.9%

December 31, 2020

Fair Value

Valuation

Techniques

Unobservable

Input

Range

 

Securities available-for-sale:

 

 

 

 

(dollars in thousands)

 

 

 

 

Municipal securities

8,844

Discounted cash flows

Discount rate

2.9%

- 103 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 20 – Fair Value Measurements and Fair Value of Financial Instruments – (continued)

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, 2021

(dollars in thousands)

 

Fair Value

 

 

Valuation

Techniques

 

Unobservable

Input

 

Range (weighed average)

Commercial

 

$

12,193

 

 

Market approach (100%)

 

Average transfer price as a price to unpaid principal balance

 

48% to 73% (49%)

Commercial

 

$

1,206

 

 

Appraisals of collateral value

 

Adjustment for comparable sales

 

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

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

20,185

 

 

Appraisals of collateral value

 

Adjustment for comparable sales

 

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

Residential real estate

$

2,794

Appraisals of collateral value

Adjustment for comparable sales

-15% to +39% (5%)

December 31, 2020

(dollars in thousands)

 

Fair Value

 

 

Valuation

Techniques

 

Unobservable

Input

 

Range (weighed average)

Impaired loans:

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

10,524

 

 

Market approach (100%)

 

Average transfer price as a price to unpaid principal balance

 

48-53 (49)

Commercial

 

$

227

 

 

Appraisals of collateral value

 

Adjustment for comparable sales

 

1% to +5% (+2%)

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate

 

$

1,393

 

 

Appraisals of collateral value

 

Adjustment for comparable sales

 

-25% to +20% (-8%)

- 104 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 20 – Fair Value Measurements and Fair Value of Financial Instruments – (continued)

Fair Value of Financial Instruments

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

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

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

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

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

Deposits. The carrying amounts of deposits with no stated maturities (i.e., 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.

- 105 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 20 – Fair Value Measurements and Fair Value of Financial Instruments – (continued)

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, 2021 and December 31, 2020:

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, 2021

Financial assets:

Cash and due from banks

$

265,536

$

265,536

$

265,536

$

-

$

-

Investment securities available-for-sale

534,507

534,507

195

525,747

8,565

Restricted investment in bank stocks

27,826

n/a

n/a

n/a

n/a

Equity securities

13,794

13,794

11,081

2,713

-

Net loans

6,749,849

6,800,287

-

-

6,800,287

Derivatives

3,347

3,347

-

3,347

-

Accrued interest receivable

34,152

34,152

-

1,554

32,598

 

Financial liabilities:

Noninterest-bearing deposits

1,617,049

1,617,049

1,617,049

-

-

Interest-bearing deposits

4,715,904

4,716,358

3,565,795

1,150,563

-

Borrowings

468,193

469,671

-

469,671

-

Subordinated debentures

152,951

163,995

-

163,995

-

Accrued interest payable

2,716

2,716

-

2,716

-

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

Cash and due from banks

$

303,756

$

303,756

$

303,756

$

-

$

-

Investment securities available-for-sale

487,955

487,955

157

478,954

8,844

Restricted investment in bank stocks

25,099

n/a

n/a

n/a

n/a

Equity securities

13,387

13,387

13,387

-

-

Net loans

6,157,081

6,244,037

-

-

6,244,037

Accrued interest receivable

35,317

35,317

-

1,764

33,553

 

Financial liabilities:

Noninterest-bearing deposits

1,339,108

1,339,108

1,339,108

-

-

Interest-bearing deposits

4,620,116

4,633,961

3,155,983

1,477,978

-

Borrowings

425,954

429,671

-

429,671

-

Subordinated debentures

202,648

214,113

-

214,113

-

Derivatives

2,119

2,119

-

2,119

-

Accrued interest payable

3,687

3,687

-

3,687

-

Cash and due from banks

$

303,756

$

303,756

$

303,756

$

-

$

-

- 106 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 20 – Fair Value Measurements and Fair Value of Financial Instruments – (continued)

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

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

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

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

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

v3.22.0.1
Parent Corporation Only Financial Statements
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Parent Corporation Only Financial Statements

Note 21 – Parent Corporation Only Financial Statements

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

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

Condensed Statements of Condition

As of December 31,

2021

2020

(dollars in thousands)

ASSETS

Cash and cash equivalents

$

133,648

$

34,388

Investment in subsidiaries

1,111,520

1,001,998

Investment securities

32,405

32,405

Equity securities

725

-

Other assets

 

699

 

51,288

Total assets

$

1,278,997

$

1,120,079

LIABILITIES AND STOCKHOLDERS’ EQUITY

Other liabilities

$

1,834

$

2,121

Subordinated debentures, net

152,951

202,648

Stockholders’ equity

 

1,124,212

 

915,310

Total liabilities and stockholders’ equity

$

1,278,997

$

1,120,079

- 107 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 21 – Parent Corporation Only Financial Statements – (continued)

Condensed Statements of Income

For Years Ended December 31,

2021

2020

2019

(dollars in thousands)

Income:

 

 

 

 

 

 

 

 

 

 

 

 

Dividend income from subsidiaries

$

24,071

$

15,200

$

30,050

Other income

 

1,627

 

1,683

 

1,652

Total Income

25,698

16,883

31,702

Expenses

 

(8,741

)

 

(9,263

)

 

(7,386

)

Income before equity in undistributed earnings of subsidiaries

16,957

7,620

24,316

Equity in undistributed earnings of subsidiaries

 

113,396

 

63,669

 

49,079

Net Income

130,353

71,289

73,395

Preferred dividends

1,717

-

-

Net income available to common stockholders

$

128,636

$

71,289

$

73,395

Condensed Statements of Cash Flows

 

 

For Years Ended December 31

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

(dollars in thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

130,353

 

 

$

71,289

 

 

$

73,395

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Equity in undistributed earnings of subsidiary

 

 

(113,396

)

 

 

(63,669

)

 

 

(49,079

)

Loss on equity securities, net

 

 

55

 

 

 

-

 

 

 

38

 

Amortization of subordinated debt issuance costs

 

 

303

 

 

 

323

 

 

 

329

 

Decrease (increase) in other assets

 

 

50,590

 

 

(50,001

)

 

 

-

 

(Decrease) increase in other liabilities

 

 

(287

)

 

 

(391

)

 

 

(1,509

)

Net cash provided by (used in) operating activities

 

 

67,618

 

 

(42,449

)

 

 

23,174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of available-for-sale securities

 

 

-

 

 

 

-

 

 

 

(2

)

Sales of available-for-sale securities

 

 

-

 

 

 

-

 

 

 

23

 

Purchase of equity securities

(780

)

-

-

Sale of equity securities

 

 

-

 

 

 

-

 

 

 

569

 

Repayment of short-term borrowing

 

 

-

 

 

(3,000

)

 

 

-

 

Capital infusion to subsidiary

 

 

-

 

 

 

-

 

 

 

-

 

Net cash (used in) provided by investing activities

 

 

(780

)

 

 

(3,000

)

 

 

590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

(Repayment of) proceeds from subordinated debt

 

 

(50,000

)

 

 

73,440

 

 

 

-

 

Cash dividends paid on preferred stock

(1,717

)

-

-

Cash dividends paid on common stock

 

 

(17,493

)

 

 

(14,317

)

 

 

(12,160

)

Purchase of treasury stock

 

 

(9,401

)

 

 

(911

)

 

 

(12,643

)

Proceeds from preferred stock offering

110,927

-

-

Proceeds from exercise of stock options

 

 

106

 

 

 

233

 

 

 

360

 

Net cash provided by (used in) financing activities

 

 

32,422

 

 

 

58,445

 

 

 

(24,443

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

 

99,260

 

 

 

12,996

 

 

 

(679

)

Cash and cash equivalents as of January 1,

 

 

34,388

 

 

 

21,392

 

 

 

22,071

 

Cash and cash equivalents as of December 31,

 

$

133,648

 

 

$

34,388

 

 

$

21,392

 

v3.22.0.1
Quarterly Financial Information of ConnectOne Bancorp, Inc. (Unaudited)
 12 Months Ended
Dec. 31, 2021
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information of ConnectOne Bancorp, Inc. (unaudited)

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

2021

4th Quarter

3rd Quarter

2nd Quarter

1st Quarter

(dollars in thousands, except per share data)

Total interest income

$

79,040

$

77,026

$

73,051

$

72,621

Total interest expense

 

8,579

 

8,781

 

10,042

 

11,458

Net interest income

70,461

68,245

63,009

61,163

Provision for credit losses

815

1,100

(1,649

)

(5,766

)

Total other income, net of securities gains

3,777

4,016

4,472

3,426

Other expenses

 

28,084

 

28,183

 

26,259

 

26,485

Income before income taxes

45,339

42,978

42,871

43,870

Income tax expense

 

12,301

 

10,881

 

10,652

 

10,871

Net income

33,038

32,097

32,219

32,999

Preferred dividends

1,717

-

-

-

Net income available to common stockholders

$

31,321

$

32,097

$

32,219

$

32,999

Earnings per share:

Basic

$

0.79

$

0.81

$

0.81

$

0.83

Diluted

0.79

0.80

0.81

0.82

2020

4th Quarter

3rd Quarter

2nd Quarter

1st Quarter

(dollars in thousands, except per share data)

Total interest income

$

75,588

$

77,221

$

78,677

$

76,714

Total interest expense

 

14,217

 

16,672

 

17,887

 

21,433

Net interest income

61,371

60,549

60,790

55,281

Provision for credit losses

5,000

5,000

15,000

16,000

Total other income, net of securities gains

3,442

3,483

4,621

2,854

Other expenses

 

26,402

 

26,478

 

33,063

 

35,058

Income before income taxes

33,411

32,554

17,348

7,077

Income tax expense

 

7,770

 

7,768

 

2,516

 

1,047

Net income

$

25,641

$

24,786

$

14,832

$

6,030

Earnings per share:

Basic

$

0.64

$

0.62

$

0.37

$

0.15

Diluted

0.64

0.62

0.37

0.15

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

v3.22.0.1
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Nature of Operations

Nature of Operations

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

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

Basis of Presentation and Principals of Consolidation

Basis of Presentation and Principals of Consolidation

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

Segments

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.

Risks and Uncertainties

Risks and Uncertainties

As previously disclosed, on March 11, 2020 the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which continues to impact the United States and the world. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. The COVID-19 pandemic has adversely affected, and continues to adversely affect economic activity globally, nationally and locally. Although economic activity has accelerated in 2021, and the United States continues to implement a COVID-19 vaccination program, COVID-19, it’s variants and actions taken to mitigate the spread of it have had and may in the future have an adverse impact on the economies and financial markets of many countries and parts of the United States, including the New Jersey/New York metropolitan area in which the Company primarily operates. Although the Company has been able to continue operations while taking steps to ensure the safety of employees and clients, COVID-19 could impact the Company’s operations in the future. Federal Reserve reductions in interest rates and other effects of the COVID-19 pandemic may adversely affect the Company's financial condition and results of operations in future periods. Although state and local governments have lifted many restrictions on conducting business, it is possible that restrictions could be reimposed.

- 57 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

It is therefore unknown how long COVID-19 may continue to impact the economy and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including the determination of the allowance for credit losses on loans, fair value of financial instruments, impairment of goodwill and other intangible assets and income taxes. Federal Reserve reductions in interest rates and other effects of the COVID-19 pandemic may adversely affect the Company's financial condition and results of operations in future periods. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including the determination of the allowance for credit losses, fair value of financial instruments, impairment of goodwill and other intangible assets and income taxes.

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

Investment Securities

Investment Securities

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

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

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

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

Prior to January 1, 2021, securities were evaluated on at least a quarterly basis, and more frequently when market conditions warrant such an evaluation, to determine whether a decline in their value is other-than-temporary. FASB ASC 320-10-65 clarifies the interaction of the factors that were considered when determining whether a debt security is other-than-temporarily impaired. For debt securities, management assessed whether (a) it has the intent to sell the security and (b) it is more likely than not that it will be required to sell the security prior to its anticipated recovery. These steps were done before assessing whether the entity will recover the cost basis of the investment. In instances when

- 58 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

a determination is made that an other-than-temporary impairment exists but the investor does not intend to sell the debt security and it is not more likely than not that it will be required to sell the debt security prior to its anticipated recovery, FASB ASC 320-10-65 changed the presentation and amount of the other-than-temporary impairment recognized in the Consolidated Statement of Income. The other-than-temporary impairment was separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss was recognized through earnings. The amount of the total other-than-temporary impairment related to all other factors was recognized through other comprehensive income.

Equity Securities

Equity Securities

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

Loans Held-for-Sale

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, purchase premium and discounts and an allowance for credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

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

Loans that are 90 days past due are placed on nonaccrual and previously accrued interest is reversed and charged against interest income unless the loans are both well-secured and in the process of collection. Past due status is based on the contractual terms of the loan. In 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 credit losses and loans individually evaluated for credit losses.

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

The policy of the Company is to generally grant commercial, residential and consumer loans to residents and businesses within 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 credit losses are provided for all known and inherent risks. Collateral and/or personal guarantees are required for a large majority of the Company’s loans.

Allowance for Credit Losses

Allowance for Credit Losses

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

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

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

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

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

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

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

- 60 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

Purchased Credit-Deteriorated Loans

Purchased Credit-Deteriorated Loans

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

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

Derivatives

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.

- 61 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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.

Leases

Leases

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

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

Other Real Estate Owned

Other Real Estate Owned

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. See Note 18 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 year ended December 31, 2021 and December 31, 2020, the Parent Corporation repurchased 330,541 and 54,693 shares, respectively, under a board-approved share repurchase program.

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 as of the years ended December 31, 2021, 2020 and 2019.

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 2020 and 2019 to conform to the classifications presented in 2021. Such reclassifications had no impact on net income or stockholders’ equity.

v3.22.0.1
Authoritative Accounting Guidance (Table)
 12 Months Ended
Dec. 31, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Schedule of Adoption of CECL Standard Resulted Adjustment in Financial Statements

The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. As discussed further below, purchased credit deteriorated assets were measured on a prospective basis in accordance with the CECL Standard and all purchased credit impaired loans as of December 31, 2020 were considered purchased credit deteriorated loans upon adoption. Results for reporting periods beginning after January 1, 2021 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2021 (dollars in thousands):

Change in Consolidated Statement of Condition

Tax Effect

Change to Retained Earnings from Adoption of CECL

Allowance for credit losses (“ACL”) (loans)

$

1,350

$

406

$

944

Adjustment related to purchased credit-impaired loan marks(1)

5,207

-

-

Total ACL – loans

6,557

406

944

ACL (unfunded credit commitments)

2,833

852

1,981

Total impact of CECL adoption

$

9,390

$

1,258

$

2,925

 

 

​(1) This amount represents a gross-up of the balance sheet related to nonaccretable credit marks of purchased credit-impaired loans resulting from adoption of CECL on January 1, 2021.

v3.22.0.1
Earnings per Common Share (Tables)
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Years Ended December 31,

2021

2020

2019

(in thousands, except per share amounts)

Net income available to common stockholders

$

128,636

$

71,289

$

73,395

Earnings allocated to participating securities

 

(313

)

 

(356

)

 

(295

)

Income attributable to common stock

$

128,323

$

70,933

$

73,100

Weighted average common shares outstanding, including participating securities

39,723

39,643

35,289

Weighted average participating securities

 

(97

)

 

(131

)

 

(84

)

Weighted average common shares outstanding

39,626

39,512

35,205

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

 

260

 

132

 

88

Weighted average common and equivalent shares outstanding

 

39,886

 

39,644

 

35,293

Earnings per common share:

Basic

$

3.24

$

1.80

$

2.08

Diluted

3.22

1.79

2.07

v3.22.0.1
Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2021
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 as of December 31, 2021 and 2020.

Amortized

Cost

Gross

Unrealized

Gains

Gross

Unrealized

Losses

Fair

Value

(dollars in thousands)

December 31, 2021

Investment securities available-for-sale

Federal agency obligations

$

50,336

$

649

$

(625

)

$

50,360

Residential mortgage pass-through securities

317,111

1,868

(2,884

)

316,095

Commercial mortgage pass-through securities

10,814

118

(463

)

10,469

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

145,045

1,562

(982

)

145,625

Corporate bonds and notes

8,968

81

-

9,049

Asset-backed securities

2,563

3

(2

)

2,564

Certificates of deposit

150

-

-

150

Other securities

 

195

 

-

 

-

 

195

Total securities available-for-sale

$

535,182

$

4,281

$

(4,956

)

$

534,507

Amortized

Cost

Gross

Unrealized

Gains

Gross

Unrealized

Losses

Fair

Value

(dollars in thousands)

December 31, 2020

Investment securities available-for-sale

Federal agency obligations

$

37,015

$

1,508

$

(65

)

$

38,458

Residential mortgage pass-through securities

266,114

4,811

(41

)

270,884

Commercial mortgage pass-through securities

6,906

203

(187

)

6,922

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

138,539

4,269

-

142,808

Corporate bonds and notes

24,925

222

(52

)

25,095

Asset-backed securities

3,521

-

(41

)

3,480

Certificates of deposit

149

2

-

151

Other securities

 

157

 

-

 

-

 

157

Total securities available-for-sale

$

477,326

$

11,015

$

(386

)

$

487,955

Investments Classified by Contractual Maturity Date [Table Text Block]

The following table presents information for investments in securities available-for-sale as of December 31, 2021, 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, 2021

Amortized

Cost

Fair

Value

(dollars in thousands)

Investment Securities Available-for-Sale:

Due in one year or less

$

3,045

$

3,051

Due after one year through five years

10,203

10,280

Due after five years through ten years

5,136

5,338

Due after ten years

188,678

189,079

Residential mortgage pass-through securities

317,111

316,095

Commercial mortgage pass-through securities

10,814

10,469

Other securities

 

195

 

195

Total securities available-for-sale

$

535,182

$

534,507

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

Gross gains and losses from the sales and redemptions of investment securities for the years ended December 31, 2021, 2020 and 2019 were as follows:

Years Ended December 31,

2021

2020

2019

(dollars in thousands)

Proceeds

$

5,185

$

19,624

$

183,728

Gross gains on sales/redemptions of investment securities

$

195

$

29

$

401

Gross losses on sales/redemptions of investment securities

 

-

 

-

 

(681

)

Net gains (losses) on sales/redemptions of investment securities​​

 

195

 

29

 

(280

)

Tax provision on net gains

 

(48

)

 

(6

)

 

79

Net gains (losses) on sales/redemptions of investment securities, after tax​​

$

147

$

23

$

(201

)

Schedule of Unrealized Loss on Investments [Table Text Block]

The following tables indicate gross unrealized losses for which an ACL has not been recorded, aggregated by investment category and by the length of continuous time individual securities have been in an unrealized loss position as of December 31, 2021 and December 31, 2020.

December 31, 2021

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

$

28,974

$

(625

)

$

28,974

$

(625

)

$

-

$

-

Residential mortgage pass-through securities

246,396

(2,884

)

214,701

(2,111

)

31,695

(773

)

Commercial mortgage pass-through securities

8,370

(463

)

4,682

(75

)

3,688

(388

)

Obligations of U.S. states and political subdivisions

89,473

(982

)

89,473

(982

)

-

-

Asset-backed securities

 

802

 

(2

)

 

802

 

(2

)

 

-

 

-

Total Temporarily Impaired Securities

$

374,015

$

(4,956

)

$

338,632

$

(3,795

)

$

35,383

$

(1,161

)

December 31, 2020

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

$

8,978

$

(65

)

$

8,975

$

(65

)

$

3

$

-

Residential mortgage pass-through securities

20,895

(41

)

20,886

(41

)

9

-

Commercial mortgage pass-through securities

3,954

(187

)

3,954

(187

)

-

-

Corporate bonds and notes

3,928

(52

)

3,928

(52

)

-

-

Asset-backed securities

 

3,083

 

(41

)

 

622

 

-

 

2,461

 

(41

)

Total Temporarily Impaired Securities

$

40,838

$

(386

)

$

38,365

$

(345

)

$

2,473

$

(41

)

v3.22.0.1
Loans and the Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Loans Receivable: The following table sets forth the composition of the Company’s loan portfolio segments, including net deferred fees, as of December 31, 2021 and December 31, 2020:

2021

2020

(dollars in thousands)

Commercial (1)

$

1,299,428

$

1,521,967

Commercial real estate

4,741,590

3,783,550

Commercial construction

540,178

617,747

Residential real estate

255,269

322,564

Consumer

 

1,886

 

1,853

Gross loans

6,838,351

6,247,681

Net deferred fees

 

(9,729

)

 

(11,374

)

Loans receivable

$

6,828,622

$

6,236,307

 

(1)

Included in commercial loans as of December 31, 2021 and December 31, 2020 were Paycheck Protection Program (“PPP”) loans of $93.1 million and $397.5 million, respectively. These loans are 100% federally guaranteed and currently not subject to any allocation of allowance for credit losses.

Loans held for sale [Table Text Block]

Loans Held-For-Sale: The following table presents loans held-for-sale by loan segment as of December 31, 2021 and December 31, 2020:

2021

2020

(dollars in thousands)

Commercial

$

-

$

-

Commercial real estate

 

-

 

1,990

Residential mortgage

 

250

 

2,720

Total carrying amount

$

250

$

4,710

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

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

December 31, 2021

Nonaccrual loans with ACL

Nonaccrual loans without ACL

Total Nonaccrual loans

(dollars in thousands)

Commercial

$

28,746

$

1,316

$

30,062

Commercial real estate

15,362

10,031

25,393

Commercial construction

-

3,150

3,150

Residential real estate

1,239

1,856

3,095

Consumer

-

-

-

Total

$

45,347

$

16,353

$

61,700

The following tables present total nonaccrual loans included in loans receivable by loan class as of December 31, 2020 (dollars in thousands):

December 31, 2020

Commercial

$

33,019

Commercial real estate

10,111

Commercial construction

14,015

Residential real estate

4,551

Consumer

-

Total nonaccrual loans

$

61,696

Financing Receivable Origination and Risk Designation [Table Text Block]

We evaluate whether a modification, extension or renewal of a loan is a current period origination in accordance with GAAP. Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the table below. As of December 31, 2021, our loans based on year of origination and risk designation are as follows (dollars in thousands):

Term loans amortized cost basis by origination year

Revolving

Total

2021

2020

2019

2018

2017

Prior

Loans

Gross Loans

Commercial

Pass

$

403,203

 

 

$

58,534

 

 

$

54,485

$

60,409

$

95,727

$

86,556

$

471,588

$

1,230,502

Special mention

-

-

-

-

1

4,045

4,266

8,312

Substandard

170

-

1,842

13,298

9,740

21,024

14,540

60,614

Doubtful

-

-

-

-

-

-

-

-

Total Commercial

$

403,373

$

58,534

$

56,327

$

73,707

$

105,468

$

111,625

$

490,394

$

1,299,428

 

Commercial Real Estate

Pass

$

1,692,098

$

533,315

$

420,995

$

452,262

$

497,065

$

842,244

$

170,721

$

4,608,700

Special mention

-

-

-

-

5,142

50,438

6,601

62,181

Substandard

1,968

9,039

4,006

20,624

-

26,108

8,964

70,709

Doubtful

-

-

-

-

-

-

-

-

Total Commercial Real Estate

$

1,694,066

$

542,354

$

425,001

$

472,886

$

502,207

$

918,790

$

186,286

$

4,741,590

 

Commercial Construction

Pass

$

8,018

$

7,370

$

12,625

$

2,600

$

2,339

$

-

$

490,119

523,071

Special mention

-

-

-

-

350

-

1,443

1,793

Substandard

-

-

-

-

-

-

15,314

15,314

Doubtful

-

-

-

-

-

-

-

-

Total Commercial Construction

$

8,018

$

7,370

$

12,625

$

2,600

$

2,689

$

-

$

506,876

$

540,178

 

Residential Real Estate

Pass

$

27,081

$

29,539

$

23,611

$

25,070

$

28,701

$

66,249

$

44,221

$

244,472

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

7,262

3,535

10,797

Doubtful

-

-

-

-

-

-

-

-

Total Residential Real Estate

$

27,081

$

29,539

$

23,611

$

25,070

$

28,701

$

73,511

$

47,756

$

255,269

 

Consumer

Pass

$

1,594

$

85

$

39

$

21

$

28

$

(4

)

$

123

$

1,886

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

Total Consumer

$

1,594

$

85

$

39

$

21

$

28

$

(4

)

$

123

$

1,886

 

Total

Pass

$

2,131,994

$

628,843

$

511,755

$

540,362

$

623,860

$

995,045

$

1,176,772

$

6,608,631

Special mention

-

-

-

-

5,493

54,483

12,310

72,286

Substandard

2,138

9,039

5,848

33,922

9,740

54,394

42,353

157,434

Doubtful

-

-

-

-

-

-

-

-

Grand Total

$

2,134,132

$

637,882

$

517,603

$

574,284

$

639,093

$

1,103,922

$

1,231,435

$

6,838,351

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) as of December 31, 2020:

December 31, 2020

Pass

Special Mention

Substandard

Doubtful

Total

(dollars in thousands)

Commercial

$

1,447,097

 

 

$

30,725

 

 

$

43,930

$

215

$

1,521,967

Commercial real estate

3,700,498

49,143

33,909

-

3,783,550

Commercial construction

587,266

-

30,481

-

617,747

Residential real estate

311,174

-

11,390

-

322,564

Consumer

 

1,853

 

-

 

-

 

-

 

1,853

Gross loans

$

6,047,888

$

79,868

$

119,710

$

215

$

6,247,681

Schedule of Fair Value of Collateral [Table Text Block]

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

December 31, 2021

 

 

Real Estate

 

 

Other

 

 

Total

 

 

(dollars in thousands)

Commercial

 

$

6,385

 

 

$

26,182

 

 

$

32,567

 

Commercial real estate

 

 

55,244

 

 

 

-

 

 

 

55,244

 

Commercial construction

 

 

13,196

 

 

-

 

 

13,196

Residential real estate

 

8,856

 

 

-

 

 

8,856

Consumer

-

-

-

Total

$

83,681

$

26,182

$

109,863

Impaired Financing Receivables [Table Text Block]

The following table provides an analysis of the impaired loans by class as of the year ended December 31, 2020.

December 31, 2020

No Related Allowance Recorded

Recorded Investment

Unpaid Principal Balance

Related Allowance

Average Recorded Investment

Interest Income Recognized

(dollars in thousands)

Commercial

$

11,325

$

11,835

-

$

11,627

$

203

Commercial real estate

13,105

13,449

-

13,215

287

Commercial construction

24,284

24,907

-

21,279

377

Residential real estate

5,378

5,723

-

4,733

104

Consumer

 

-

 

-

 

-

 

-

 

-

Total

$

54,092

$

55,914

 

-

$

50,854

$

971

 

With An Allowance Recorded

Commercial

$

23,736

$

69,122

$

12,985

$

23,625

$

-

Commercial real estate

2,722

2,722

1,329

2,722

-

Total

$

26,458

$

71,844

$

14,314

$

26,347

$

-

 

Total

Commercial

$

35,061

$

80,957

$

12,985

$

35,252

$

203

Commercial real estate

15,827

16,171

1,329

15,937

287

Commercial construction

24,284

24,907

-

21,279

377

Residential real estate

5,378

5,723

-

4,733

104

Consumer

 

-

 

-

 

-

 

-

 

-

Total (including related

allowance)

$

80,550

$

127,758

$

14,314

$

77,201

$

971

Past Due Financing Receivables [Table Text Block]

Aging Analysis - The following table provides an analysis of the aging of the loans by class, excluding net deferred fees, that are past due as of December 31, 2021 and December 31, 2020 (dollars in thousands):

December 31, 2021

30-59 Days Past Due

60-89 Days Past Due

90 Days or Greater Past Due and Still Accruing

Nonaccrual

Total Past Due and Nonaccrual

Current

Gross Loans

Commercial

$

4,305

$

729

$

4,457

$

30,062

$

39,553

$

1,259,875

$

1,299,428

Commercial real Estate

1,622

1,009

5,935

25,393

33,959

4,707,631

4,741,590

Commercial construction

-

-

-

3,150

3,150

537,028

540,178

Residential real Estate

1,437

292

3,139

3,095

7,963

247,306

255,269

Consumer

 

-

-

-

-

-

 

1,886

 

1,886

Total

$

7,364

$

2,030

$

13,531

$

61,700

$

84,625

$

6,753,726

$

6,838,351

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

December 31, 2020

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

$

1,445

$

558

$

3,182

$

33,019

$

38,204

$

1,483,763

$

1,521,967

Commercial real estate

13,258

4,140

5,555

10,111

33,064

3,750,486

3,783,550

Commercial construction

2,472

-

-

14,015

16,487

601,260

617,747

Residential real estate

1,367

241

4,084

4,551

10,243

312,321

322,564

Consumer

 

2

 

-

 

-

 

-

 

2

 

1,851

 

1,853

Total

$

18,544

$

4,939

$

12,821

$

61,696

$

98,000

$

6,149,681

$

6,247,681

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 credit losses for loans that are allocated to each loan portfolio segment. “Prior to January 1, 2021, the allowance for loan losses is based on a calculation methodology disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.”

 

 

December 31, 2021

 

 

 

Commercial

 

 

Commercial real estate

 

 

Commercial construction

 

 

Residential real estate

 

 

Consumer

 

 

 

 

 

Total

 

 

 

(dollars in thousands)

 

Allowance for credit losses - loans

Individually evaluated

 

$

15,131

$

955

$

-

 

 

$

131

 

 

$

-

 

 

 

 

$

16,217

 

Collectively evaluated

 

 

8,561

 

 

 

42,713

 

 

 

3,580

 

 

 

3,497

 

 

 

7

 

 

 

 

 

 

58,358

 

Acquired with deteriorated credit quality individually analyzed​​

 

 

2,277

 

 

 

1,921

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

4,198

 

Total

 

$

25,969

 

 

$

45,589

 

 

$

3,580

 

 

$

3,628

 

 

$

7

 

 

 

 

$

78,773

 

Gross loans

Individually evaluated

 

$

33,726

 

 

$

49,310

 

 

$

13,196

 

 

$

5,717

 

 

$

-

 

$

101,949

 

Collectively evaluated

 

1,260,537

 

 

4,686,346

 

 

526,982

 

 

246,413

 

 

$

1,886

 

$

6,722,164

 

Acquired with deteriorated credit quality individually analyzed​​

 

 

5,165

 

 

 

5,934

 

 

 

-

 

 

 

3,139

 

 

 

-

 

 

14,238

 

Total

 

$

1,299,428

 

 

$

4,741,590

 

 

$

540,178

 

 

$

255,269

 

 

$

1,886

 

 

 

 

 

 

$

6,838,351

 

 

 

December 31, 2020

 

 

 

Commercial

 

 

Commercial real estate

 

 

Commercial construction

 

 

Residential real estate

 

 

Consumer

 

 

Unallocated

 

 

Total

 

 

 

(dollars in thousands)

 

Allowance for loan losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

12,985

 

 

$

1,329

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

14,314

 

Collectively evaluated for impairment

 

 

15,412

 

 

 

33,373

 

 

 

7,787

 

 

 

1,928

 

 

 

4

 

 

 

568

 

 

 

59,072

 

Acquired portfolio

 

 

46

 

 

 

4,628

 

 

 

407

 

 

 

759

 

 

 

-

 

 

 

-

 

 

 

5,840

 

Acquired with deteriorated credit quality

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$

28,443

 

 

$

39,330

 

 

$

8,194

 

 

$

2,687

 

 

$

4

 

 

$

568

 

 

$

79,226

 

 

 

Gross loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

35,061

 

 

$

15,827

 

 

$

24,284

 

 

$

5,378

 

 

$

-

 

 

 

 

 

 

$

80,550

 

Collectively evaluated for impairment

 

 

1,414,626

 

 

 

2,959,978

 

 

 

574,118

 

 

 

241,925

 

 

 

1,627

 

 

 

 

 

 

 

5,192,274

 

Acquired portfolio

 

 

68,402

 

 

 

802,190

 

 

 

19,345

 

 

 

71,177

 

 

 

226

 

 

 

 

 

 

 

961,340

 

Acquired with deteriorated credit quality

 

 

3,878

 

 

 

5,555

 

 

 

-

 

 

 

4,084

 

 

 

-

 

 

 

 

 

 

 

13,517

 

Total

 

$

1,521,967

 

 

$

3,783,550

 

 

$

617,747

 

 

$

322,564

 

 

$

1,853

 

 

 

 

 

 

$

6,247,681

 

Allowance for Credit Losses on Financing Receivables [Table Text Block]

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

Commercial

Commercial real estate

Commercial construction

Residential real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of January 1, 2021

$

28,443

$

39,330

$

8,194

$

2,687

$

4

$

568

$

79,226

Day 1 Adjustment CECL

(4,225

)

9,605

(961

)

2,697

9

(568

)

6,557

Balance as of January 1, 2021

24,218

48,935

7,233

5,384

13

-

85,783

Loan charge-offs

(382

)

(1,780

)

-

(235

)

-

-

(2,397

)

Recoveries

289

85

-

20

11

-

405

 

Provision for (reversal of) credit losses

 

1,844

 

(1,651

)

 

(3,653

)

 

(1,541

)

 

(17

)

 

-

 

(5,018

)

Balance as of December 31, 2021

$

25,969

$

45,589

$

3,580

$

3,628

$

7

$

-

$

78,773

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

Commercial

Commercial real estate

Commercial construction

Residential real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of January 1, 2020

$

8,349

$

20,853

$

7,304

$

1,685

$

3

$

99

$

38,293

Loan charge-offs

(552

)

-

-

(341

)

(7

)

-

(900

)

Recoveries

4

802

-

23

4

-

833

 

Provision for loan losses

 

20,642

 

17,675

 

890

 

1,320

 

4

 

469

 

41,000

Balance as of December 31, 2020

$

28,443

$

39,330

$

8,194

$

2,687

$

4

$

568

$

79,226

 

 

Commercial

 

 

Commercial real estate

 

 

Commercial construction

 

 

Residential real estate

 

 

Consumer

 

 

Unallocated

 

 

Total

 

 

 

(dollars in thousands)

 

Balance as of January 1, 2019

 

$

9,875

 

 

$

18,847

 

 

$

4,519

 

 

$

1,266

 

 

$

2

 

 

$

445

 

 

$

34,954

 

Loan charge-offs

 

 

(1,029

)

 

 

(3,470

)

 

 

-

 

 

 

(557

)

 

 

(20

)

 

 

-

 

 

 

(5,076

)

Recoveries

 

 

265

 

 

 

30

 

 

 

-

 

 

 

3

 

 

 

17

 

 

 

-

 

 

 

315

 

 

Provision for loan losses

 

 

(762)

 

 

 

5,446

 

 

 

2,785

 

 

 

973

 

 

 

4

 

 

 

(346

)

 

 

8,100

 

Balance as of December 31, 2019

 

$

8,349

 

 

$

20,853

 

 

$

7,304

 

 

$

1,685

 

 

$

3

 

 

$

99

 

 

$

38,293

 

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, 2021:

Number of

Loans

Pre-Modification

Outstanding

Recorded

Investment

Post-Modification

Outstanding

Recorded

Investment

(dollars in thousands)

Troubled debt restructurings:

Commercial

4

$

1,276

$

1,276

Commercial real estate

11

35,635

35,635

Commercial construction

1

1,641

1,641

Residential real estate

3

1,758

1,758

 

Total

 

19

$

40,310

$

40,310

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

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

Number of

Loans

Pre-Modification

Outstanding

Recorded

Investment

Post-Modification

Outstanding

Recorded

Investment

(dollars in thousands)

Troubled debt restructurings:

Commercial

1

$

188

$

188

Commercial real estate

1

93

93

Commercial construction

1

4,021

4,021

Residential real estate

2

2,184

2,184

 

Total

 

5

$

6,486

$

6,486

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

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2019:

Number of

Loans

Pre-Modification

Outstanding

Recorded

Investment

Post-Modification

Outstanding

Recorded

Investment

(dollars in thousands)

Troubled debt restructurings:

Commercial

11

$

14,558

$

14,558

Commercial real estate

3

5,863

5,863

Commercial construction

3

5,630

5,630

 

Total

 

17

$

26,051

$

26,051

Schedule of ACL for off-balance sheet credit exposure

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

Year Ended December 31, 2021

Balance as of beginning of period

$

-

Day 1 Effect of CECL

2,833

Provision for (reversal of) credit losses - unfunded commitments

(482

)

Balance as of end of period

$

2,351

Schedule of (Reversal of) provision for credit losses

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

Year Ended December 31, 2021

Provision for (reversal of) credit losses - loans

$

5,018

Provision for (reversal of) credit losses - unfunded commitments

(482

)

Provision for (reversal of) credit losses

$

(5,500

)

v3.22.0.1
Premises and Equipment (Tables)
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment [Table Text Block]

Premises and equipment are summarized as follows:

Estimated

Useful Life

(Years)

2021

2020

(dollars in thousands)

Land

-

$

7,232

$

7,232

Buildings

10-25

10,509

15,159

Furniture, fixtures and equipment

3-7

24,137

40,930

Leasehold improvements

10-20

 

27,343

 

28,860

Subtotal

69,221

92,181

Less: accumulated depreciation, amortization and fair value adjustments

 

40,189

 

62,073

Total premises and equipment, net

$

29,032

$

30,108

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

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

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Capital Lease

 

$

3,423

 

 

$

3,408

 

Less: accumulated amortization

 

 

2,224

 

 

 

2,038

 

 

 

$

1,199

 

 

$

1,370

 

Schedule of Future Minimum Lease Payments for Finance Leases [Table Text Block]

The following is a schedule by year of future minimum lease payments under the finance lease, together with the present value of net minimum lease payments as of December 31, 2021 (dollars in thousands):

2022

$

321

2023

323

2024

353

2025

353

2026

353

Thereafter

 

676

Total minimum lease payments

2,379

 

Less amount representing interest

 

444

Present value of net minimum lease payments

$

1,935

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

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

December 31,

2021

(dollars in thousands)

Lease payments due:

Less than 1 year

$

2,807

1 year through less than 2 years

2,586

2 years through less than 3 years

2,065

3 years through less than 4 years

1,773

4 years through 5 years

1,668

After 5 years

2,680

Total undiscounted cash flows

13,579

Impact of discounting

(1,162

)

Total lease liability

$

12,417

v3.22.0.1
Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill [Table Text Block]

The change in goodwill during the year is as follows:

2021

2020

(dollars in thousands)

Balance, January 1

$

208,372

$

162,574

Acquired goodwill

-

 

45,798

Impairment

 

-

 

-

Balance, December 31

$

208,372

$

208,372

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)

Core deposit intangibles

 

December 31, 2021

$

18,515

$

(9,518)

$

8,997

 

Core deposit intangibles

 

December 31, 2020

$

18,515

$

(7,538)

$

10,977

 

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Aggregate amortization expense was approximately $2.0 million, $2.6 million and $1.4 million for 2021, 2020 and 2019, respectively. Estimated amortization expense for each of the next five years (dollars in thousands):

2022

$

1,684

2023

1,438

2024

1,235

2025

1,116

2026

1,050

v3.22.0.1
Deposits (Tables)
 12 Months Ended
Dec. 31, 2021
Deposits:  
Schedule Of Time Deposits [Table Text Block]

As of December 31, 2021, and 2020, the Company's total time deposits were $1.2 billion and $1.5 billion, respectively. Included in time deposits were nonreciprocal brokered time deposits of $215.2 million and $217.5 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the contractual maturities of these time deposits were as follows (dollars in thousands):

2022

$

745,411

2023

176,351

2024

45,678

2025

 

51,216

2026

 

105,342

2027

25,995

Sub-Total

$

1,149,993

Fair value premium

116

Total

$

1,150,109

v3.22.0.1
FHLB Borrowings (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2021

December 31, 2020

Amount

Rate

Amount

Rate

(dollars in thousands)

By remaining period to maturity:

Less than 1 year

$

390,549

0.56

%

$

297,570

0.84

1 year through less than 2 years

50,000

1.84

%

75,644

1.42

2 years through less than 3 years

-

n/a

50,000

1.84

3 years through less than 4 years

25,000

1.00

-

n/a

4 years through 5 years

 

2,050

2.23

 

-

n/a

After 5 Years

 

714

2.91

%

 

2,824

2.42

FHLB borrowings - gross

468,313

0.73

%

426,038

1.07

%

Fair value (discount) premium

(120

)

(84

)

Total FHLB borrowings

$

468,193

$

425,954

v3.22.0.1
Subordinated Debentures (Tables)
 12 Months Ended
Dec. 31, 2021
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 as of December 31, 2021 and December 31, 2020.

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

v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
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 December 2021, 2020 and 2019 are as follows (dollars in thousands):

 

 

2021

 

 

2020

 

 

2019

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

32,364

 

 

$

19,590

 

 

$

15,509

 

State

 

 

12,325

 

 

 

7,006

 

 

 

5,018

 

Subtotal

 

 

44,689

 

 

 

26,596

 

 

 

20,527

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(110

)

 

 

(3,881

)

 

 

916

 

State

 

 

126

 

 

(3,614

)

 

 

(812

)

Subtotal

 

 

16

 

 

(7,495

)

 

 

104

 

Income tax expense

 

$

44,705

 

 

$

19,101

 

 

$

20,631

 

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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

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

 

 

2021

 

 

2020

 

 

2019

 

Income before income tax expense

 

$

175,058

 

 

$

90,390

 

 

$

94,026

 

Federal statutory rate

 

 

21

%

 

 

21

%

 

 

21

%

Computed “expected” Federal income tax expense

 

 

36,762

 

 

 

18,982

 

 

 

19,745

 

State tax, net of federal tax benefit

 

 

9,127

 

 

 

1,913

 

 

 

3,436

 

Bank owned life insurance

 

 

(1,001

)

 

 

(1,052

)

 

 

(732

)

Tax-exempt interest and dividends

 

 

(1,405

)

 

 

(1,491

)

 

 

(2,519

)

Tax benefits from stock-based compensation

 

 

(261

)

 

 

157

 

 

 

(27

)

Other, net

 

 

1,483

 

 

 

592

 

 

 

728

 

Income tax expense

 

$

44,705

 

 

$

19,101

 

 

$

20,631

 

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 as of December 31, 2021 and 2020 are presented in the following table:

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Deferred tax assets

 

 

 

 

 

 

 

 

Allowance for credit losses

 

$

23,955

 

 

$

23,399

 

Depreciation

 

 

205

 

 

 

-

 

Pension actuarial losses

 

 

1,301

 

 

 

1,385

 

New Jersey net operating loss

 

 

3,609

 

 

 

4,370

 

Deferred compensation

 

 

2,786

 

 

 

1,835

 

Unrealized loss on AFS

 

 

191

 

 

 

-

 

Deferred loan costs, net of fees

 

 

2,163

 

 

 

357

 

Capital lease

 

 

222

 

 

 

225

 

Nonaccrual interest

 

 

62

 

 

 

51

 

Other

 

 

3,703

 

 

 

4,519

 

Total deferred tax assets

 

$

38,197

 

 

$

36,141

 

Deferred tax liabilities

 

 

 

 

 

 

 

 

Employee benefit plans

 

$

(2,289

)

 

$

(2,161

)

Purchase accounting

 

 

(925

)

 

 

(1,821

)

Depreciation

 

 

-

 

 

(187

)

Prepaid expenses

 

 

(288

)

 

 

(201

)

Market discount accretion

 

 

(437

)

 

 

(428

)

Unrealized gains on securities and swaps

 

 

(941

)

 

 

(2,171

)

Other

 

 

(1,562

)

 

 

-

 

Total deferred tax liabilities

 

 

(6,442

)

 

 

(6,969

)

Net deferred tax assets

 

$

31,755

 

 

$

29,172

 

v3.22.0.1
Commitments, Contingencies and Concentrations of Credit Risk (Tables)
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Supply Commitment [Table Text Block]

The following table provides a summary of financial instruments with off-balance sheet risk as of December 31, 2021 and 2020:

2021

2020

(dollars in thousands)

Commitments under commercial loans and lines of credit

$

647,971

$

525,606

Home equity and other revolving lines of credit

53,180

65,690

Outstanding commercial mortgage loan commitments

514,473

327,745

Standby letters of credit

25,271

28,738

Overdraft protection lines

 

973

 

1,020

Total

$

1,241,868

$

948,799

v3.22.0.1
Transactions with Executive Officers, Directors and Principal Stockholders (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2021 and 2020 were as follows:

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Balance, January 1

 

$

21,534

 

 

$

57,409

 

New loans

 

 

5,250

 

 

 

1,500

 

Repayments

 

 

(9,168

)

 

 

(37,375

)

Balance, December 31

 

$

17,616

 

 

$

21,534

 

v3.22.0.1
Stockholders' Equity and Regulatory Requirements (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2021 and 2020, 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, 2021

Leverage (Tier 1) capital

$

891,730

11.43%

$

312,166

4.00%

$

390,207

5.00%

Risk-Based Capital:

CET 1

$

891,730

11.96%

$

335,641

4.50%

$

484,815

6.50%

Tier 1

891,730

11.96%

447,522

6.00%

596,696

8.00%

Total

1,002,753

13.44%

596,696

8.00%

745,869

10.00%

 

December 31, 2020

Leverage (Tier 1) capital

$

776,430

10.64%

$

291,958

4.00%

$

364,947

5.00%

Risk-Based Capital:

CET 1

$

776,430

12.24%

$

285,473

4.50%

$

412,349

6.50%

Tier 1

776,430

12.24%

380,630

6.00%

507,507

8.00%

Total

887,906

14.00%

507,507

8.00%

634,384

10.00%

Minimum Capital

Adequacy

For Classification

as Well Capitalized

 

Amount

Ratio

Amount

Ratio

Amount

Ratio

The Company

(dollars in thousands)

December 31, 2021

Leverage (Tier 1) capital

$

909,577

11.65%

$

312,194

4.00%

N/A

N/A

Risk-Based Capital:

CET 1

$

793,495

10.64%

$

335,648

4.50%

N/A

N/A

Tier 1

909,577

12.19%

447,531

6.00%

N/A

N/A

Total

1,138,350

15.26%

596,708

8.00%

N/A

N/A

 

December 31, 2020

Leverage (Tier 1) capital

$

694,895

9.51%

$

292,349

4.00%

N/A

N/A

Risk-Based Capital:

CET 1

$

689,740

10.79%

$

287,746

4.50%

N/A

N/A

Tier 1

694,895

10.87%

383,661

6.00%

N/A

N/A

Total

964,121

15.08%

511,548

8.00%

N/A

N/A

v3.22.0.1
Comprehensive Income (Tables)
 12 Months Ended
Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Comprehensive Income (Loss) [Table Text Block]

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

For the Year Ended

December 31,

(dollars in thousands)

2021

2020

2019

Sale of investment securities available-for-sale

$

195

$

29

$

(280

)

Net gains (losses) on sale of investment securities

 

(48

)

 

(6

)

 

79

Income tax expense

147

23

(201

)

Net interest (expense)/income on swaps

(1,873

)

(1,577

)

677

Interest expense

 

528

 

443

 

(190

)

Income tax expense

(1,345

)

(1,134

)

487

Amortization of pension plan net actuarial gains/(losses)

(299

)

(301

)

(358

)

Salaries and employee benefits

 

84

 

84

 

101

Income tax benefit

 

(215

)

 

(217

)

 

(257

)

Total reclassification

$

(1,413

)

$

(1,328

)

$

29

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Accumulated other comprehensive (loss)/income as of December 31, 2021 and 2020 consisted of the following:

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Investment securities available-for-sale, net of tax

 

$

(484

)

 

$

7,859

 

Cash flow hedge, net of tax

 

 

2,406

 

 

(1,520

)

Defined benefit pension and post-retirement plans, net of tax

 

 

(3,326

)

 

 

(3,542

)

Total

 

$

(1,404

)

 

$

2,797

 

v3.22.0.1
Pension and Other Benefits (Tables)
 12 Months Ended
Dec. 31, 2021
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 as of December 31, 2021 and 2020.

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Change in Benefit Obligation:

 

 

 

 

 

 

 

 

Projected benefit obligation as of January 1,

 

$

13,476

 

 

$

12,533

 

Interest cost

 

 

284

 

 

 

364

 

Actuarial loss

 

 

1,584

 

 

 

1,300

 

Benefits paid

 

 

(700

)

 

 

(721

)

Projected benefit obligation as of December 31,

 

$

14,644

 

 

$

13,476

 

Change in Plan Assets:

 

 

 

 

 

 

 

 

Fair value of plan assets as of January 1,

 

$

15,868

 

 

$

14,616

 

Actual return on plan assets

 

 

2,436

 

 

 

1,973

 

Employer contributions

 

 

-

 

 

 

-

 

Benefits paid

 

 

(700

)

 

 

(721

)

Fair value of plan assets as of December 31,

 

$

17,604

 

 

$

15,868

 

Funded status

 

$

2,960

 

 

$

2,392

 

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

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 $0.1 of the net actuarial loss reported in the following table as of December 31, 2021 as a component of net periodic pension expense during 2022.

2021

2020

(dollars in thousands)

Net actuarial loss recognized in accumulated other comprehensive income

 

$

4,627

 

 

$

4,926

 

Schedule of Net Benefit Costs [Table Text Block]

The net periodic pension expense and other comprehensive income (before tax) for 2021, 2020 and 2019 includes the following:

2021

2020

2019

(dollars in thousands)

Interest cost

 

$

284

 

 

$

364

 

 

$

453

 

Expected return on plan assets

(852

)

(784

)

(697

)

Net amortization

 

299

 

301

 

358

Total net periodic pension expense

$

(269

)

$

(119

)

$

114

 

Total gain recognized in other comprehensive income

 

(299

)

 

(190

)

 

(150

)

Total recognized in net periodic expense and other comprehensive income (before tax)

$

(568

)

$

(309

)

$

(36

)

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]

Note 16 – Pension and Other Benefits – (continued)

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

2021

2020

Discount rate

2.57

%

2.17

%

Rate of compensation increase

N/A

N/A

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

2022

2021

2020

Discount rate

2.57

%

2.17

%

2.99

%

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 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, 2021 and 2020, target allocation, and expected long-term rate of return by asset are as follows:

Target

Allocation

% of Plan

Assets –

Year Ended

2021

% of Plan

Assets –

Year Ended

2020

Weighted

Average

Expected

Long-Term

Rate of

Return

Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

45%

59%

55%

3.2%

International

15%

5%

6%

1.3%

Debt and/or fixed income securities

38%

34%

35%

0.9%

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

 

2%

 

2%

 

4%

 

0.1%

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 as of December 31, 2021 and 2020, by asset class, are as follows:

December 31,

2021

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

 

$

178

 

 

$

178

 

 

$

-

 

 

$

-

 

Equity securities:

U.S. companies

10,551

10,551

-

-

International companies

897

897

-

-

Debt and/or fixed income securities

5,804

5,804

-

-

Commodity funds

111

111

-

-

Real estate funds

 

63

 

63

 

-

 

-

Total

$

17,604

$

17,604

$

-

$

-

December 31,

2020

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

 

$

406

 

 

$

406

 

 

$

-

 

 

$

-

 

Equity securities:

U.S. companies

8,737

8,737

-

-

International companies

1,031

1,031

-

-

Debt and/or fixed income securities

5,522

5,522

-

-

Commodity funds

115

115

-

-

Real estate funds

 

57

 

57

 

-

 

-

Total

$

15,868

$

15,868

$

-

$

-

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):

2022

$

726

2023

708

2024

697

2025

697

2026

702

2027-2031

3,682

401(k) Plan

v3.22.0.1
Stock Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

Activity under the Company’s options for the year ended December 31, 2021 was as follows:

 

 

Number of

Stock

Options

 

 

Weighted-

Average

Exercise

Price

 

 

Weighted-

Average

Remaining

Contractual

Term

(in years)

 

 

Aggregate

Intrinsic Value

 

Outstanding as of December 31, 2020

 

 

38,013

 

 

$

9.03

 

 

 

 

 

 

Granted

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

Exercised

 

 

(14,247

)

 

 

7.51

 

 

 

 

 

 

 

 

 

Forfeited/cancelled/expired

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2021

 

 

23,766

 

 

 

9.94

 

 

 

0.6

 

 

$

541,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable as of December 31, 2021

 

 

23,766

 

 

$

9.94

 

 

 

0.6

 

 

$

541,000

 

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

Activity under the Company’s restricted shares for year ended December 31, 2021 was as follows:

 

 

Nonvested

Shares

 

 

Weighted-

Average

Grant Date

Fair Value

 

Nonvested as of December 31, 2020

 

 

113,114

 

 

$

18.17

 

Granted

 

 

49,971

 

 

 

25.33

 

Vested

 

 

(75,257

)

 

 

18.82

 

Forfeited/cancelled/expired

 

 

(5,135

)

 

 

20.22

 

Nonvested December 31, 2021

 

 

82,693

 

 

$

21.78

 

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 as of December 31, 2020

 

147,636

 

$

17.29

 

Awarded

37,543

25.24

Change in estimate

65,389

15.46

Vested shares

 

(29,421

)

31.35

Forfeited/cancelled/expired

 

(11,153

)

 

17.06

Unearned as of December 31, 2021

 

209,994

 

233,638

$

16.18

As of December 31, 2021, the specific number of shares related to performance units that were expected to vest was 216,575, determined by actual performance in consideration of the established range of the performance targets, which is consistent with the level of expense currently being recognized over the vesting period. Should this expectation change, additional compensation expense could be recorded in future periods or previously recognized expense could be reversed. As of December 31, 2021, the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 218,835. During the year ended December 31, 2021, 29,421 shares vested. A total of 14,710 shares were netted from the vested shares to satisfy employee tax obligations. The net shares issued from vesting of performance units during the year ended December 31, 2021 were 14,711 shares. As of December 31, 2021, compensation cost of approximately $1.2 million related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 1.6 years.

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

 

 

Units

(expected)

 

 

Weighted

Average Grant

Date Fair

Value

 

Unearned as of December 31, 2020

169,313

$

14.07

Awarded

45,027

25.24

Vested shares

 

(68,916

)

16.29

Forfeited/cancelled/expired

(8,476

)

15.83

Unearned as of December 31, 2021

 

136,948

$

16.52

v3.22.0.1
Derivatives (Tables)
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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:

2021

(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

$

3,593

$

1,873

$

-

2020

(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

$

(3,423)

$

1,577

$

-

Schedule of Interest Rate Derivatives [Table Text Block]

The following table reflects the cash flow hedges included in the Consolidated Statements of Condition as of December 31, 2021 and December 31, 2020:

2021

2020

(dollars in thousands)

Notional

Amount

Fair Value

Notional

Amount

Fair Value

Included in other assets/(liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps related to FHLB Advances

$

475,000

$

3,347

$

175,000

$

(2,119)

v3.22.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2021
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 as of December 31, 2021 and December 31, 2020 are as follows:

December 31, 2021

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

$

50,360

$

-

$

50,360

$

-

Residential mortgage pass-through securities

316,095

-

316,095

-

Commercial mortgage pass-through securities

10,469

-

10,469

-

Obligations of U.S. states and political subdivision

145,625

-

137,060

8,565

Corporate bonds and notes

9,049

-

9,049

-

Asset-backed securities

2,564

-

2,564

-

Certificates of deposit

150

-

150

-

Other securities

 

195

 

195

 

-

 

-

Total available-for-sale

$

534,507

$

195

$

525,747

$

8,565

 

Equity securities

13,794

11,081

2,713

-

Derivatives

3,347

-

3,347

-

Total assets

$

551,648

$

11,276

$

531,807

$

8,565

There were no transfers between Level 1 and Level 2 during the years ended December 31, 2021 and 2020.

- 100 -

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 20 – Fair Value Measurements and Fair Value of Financial Instruments – (continued)

December 31, 2020

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

$

38,458

$

-

$

38,458

$

-

Residential mortgage pass-through securities

270,884

-

270,884

-

Commercial mortgage pass-through securities

6,922

-

6,922

-

Obligations of U.S. states and political subdivision

142,808

-

133,964

8,844

Corporate bonds and notes

25,095

-

25,095

-

Asset-backed securities

3,480

-

3,480

-

Certificates of deposit

151

-

151

-

Other securities

 

157

 

157

 

-

 

-

Total available-for-sale

$

487,955

$

157

$

478,954

$

8,844

 

Equity securities

13,387

13,387

-

-

Total assets

$

501,343

$

13,544

$

478,954

$

8,844

 

Liabilities

Derivatives

$

(2,119

)

$

-

$

(2,119

)

$

-

Total liabilities

$

(2,119

)

$

-

$

(2,119

)

$

-

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

For assets measured at fair value on a nonrecurring basis, the fair value measurements as of December 31, 2021 and December 31, 2020 are as follows:

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

Assets measured at fair value on a nonrecurring basis:

 

December 31,

2021

 

 

Quoted

Prices

in Active

Markets for

Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Collateral dependent loans:

 

(dollars in thousands)

 

Commercial

$

13,399

$

-

$

-

$

13,399

Commercial real estate

20,185

-

-

20,185

Residential real estate

2,794

-

-

2,794

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

Assets measured at fair value on a nonrecurring basis:

 

December 31,

2020

 

 

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

$

10,751

$

-

$

-

$

10,751

Commercial real estate

1,393

-

-

1,393

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, 2021 and December 31, 2020:

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, 2021

Financial assets:

Cash and due from banks

$

265,536

$

265,536

$

265,536

$

-

$

-

Investment securities available-for-sale

534,507

534,507

195

525,747

8,565

Restricted investment in bank stocks

27,826

n/a

n/a

n/a

n/a

Equity securities

13,794

13,794

11,081

2,713

-

Net loans

6,749,849

6,800,287

-

-

6,800,287

Derivatives

3,347

3,347

-

3,347

-

Accrued interest receivable

34,152

34,152

-

1,554

32,598

 

Financial liabilities:

Noninterest-bearing deposits

1,617,049

1,617,049

1,617,049

-

-

Interest-bearing deposits

4,715,904

4,716,358

3,565,795

1,150,563

-

Borrowings

468,193

469,671

-

469,671

-

Subordinated debentures

152,951

163,995

-

163,995

-

Accrued interest payable

2,716

2,716

-

2,716

-

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

Cash and due from banks

$

303,756

$

303,756

$

303,756

$

-

$

-

Investment securities available-for-sale

487,955

487,955

157

478,954

8,844

Restricted investment in bank stocks

25,099

n/a

n/a

n/a

n/a

Equity securities

13,387

13,387

13,387

-

-

Net loans

6,157,081

6,244,037

-

-

6,244,037

Accrued interest receivable

35,317

35,317

-

1,764

33,553

 

Financial liabilities:

Noninterest-bearing deposits

1,339,108

1,339,108

1,339,108

-

-

Interest-bearing deposits

4,620,116

4,633,961

3,155,983

1,477,978

-

Borrowings

425,954

429,671

-

429,671

-

Subordinated debentures

202,648

214,113

-

214,113

-

Derivatives

2,119

2,119

-

2,119

-

Accrued interest payable

3,687

3,687

-

3,687

-

Cash and due from banks

$

303,756

$

303,756

$

303,756

$

-

$

-

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 years ended December 31, 2021 and year ended December 31, 2020:

 

Municipal

Securities

 

 

(dollars in thousands)

 

Beginning balance, January 1, 2021

$

8,844

 

Principal paydowns

 

(279

)

Ending balance, December 31, 2021

$

8,565

 

Municipal

Securities

(dollars in thousands)

Beginning balance, January 1, 2020

$

9,114

 

Principal paydowns

 

(270

)

Ending balance, December 31, 2020

$

8,844

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 as of December 31, 2021 and December 31, 2020. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

December 31, 2021

Fair Value

Valuation

Techniques

Unobservable

Input

Range

Securities available-for-sale:

 

 

 

 

(dollars in thousands)

 

 

 

 

 

Municipal securities

$

8,565

Discounted cash flows

Discount rate

2.9%

December 31, 2020

Fair Value

Valuation

Techniques

Unobservable

Input

Range

 

Securities available-for-sale:

 

 

 

 

(dollars in thousands)

 

 

 

 

Municipal securities

8,844

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, 2021

(dollars in thousands)

 

Fair Value

 

 

Valuation

Techniques

 

Unobservable

Input

 

Range (weighed average)

Commercial

 

$

12,193

 

 

Market approach (100%)

 

Average transfer price as a price to unpaid principal balance

 

48% to 73% (49%)

Commercial

 

$

1,206

 

 

Appraisals of collateral value

 

Adjustment for comparable sales

 

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

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

20,185

 

 

Appraisals of collateral value

 

Adjustment for comparable sales

 

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

Residential real estate

$

2,794

Appraisals of collateral value

Adjustment for comparable sales

-15% to +39% (5%)

December 31, 2020

(dollars in thousands)

 

Fair Value

 

 

Valuation

Techniques

 

Unobservable

Input

 

Range (weighed average)

Impaired loans:

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

10,524

 

 

Market approach (100%)

 

Average transfer price as a price to unpaid principal balance

 

48-53 (49)

Commercial

 

$

227

 

 

Appraisals of collateral value

 

Adjustment for comparable sales

 

1% to +5% (+2%)

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate

 

$

1,393

 

 

Appraisals of collateral value

 

Adjustment for comparable sales

 

-25% to +20% (-8%)

v3.22.0.1
Parent Corporation Only Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Balance Sheet [Table Text Block]

Condensed Statements of Condition

As of December 31,

2021

2020

(dollars in thousands)

ASSETS

Cash and cash equivalents

$

133,648

$

34,388

Investment in subsidiaries

1,111,520

1,001,998

Investment securities

32,405

32,405

Equity securities

725

-

Other assets

 

699

 

51,288

Total assets

$

1,278,997

$

1,120,079

LIABILITIES AND STOCKHOLDERS’ EQUITY

Other liabilities

$

1,834

$

2,121

Subordinated debentures, net

152,951

202,648

Stockholders’ equity

 

1,124,212

 

915,310

Total liabilities and stockholders’ equity

$

1,278,997

$

1,120,079

Condensed Income Statement [Table Text Block]

Condensed Statements of Income

For Years Ended December 31,

2021

2020

2019

(dollars in thousands)

Income:

 

 

 

 

 

 

 

 

 

 

 

 

Dividend income from subsidiaries

$

24,071

$

15,200

$

30,050

Other income

 

1,627

 

1,683

 

1,652

Total Income

25,698

16,883

31,702

Expenses

 

(8,741

)

 

(9,263

)

 

(7,386

)

Income before equity in undistributed earnings of subsidiaries

16,957

7,620

24,316

Equity in undistributed earnings of subsidiaries

 

113,396

 

63,669

 

49,079

Net Income

130,353

71,289

73,395

Preferred dividends

1,717

-

-

Net income available to common stockholders

$

128,636

$

71,289

$

73,395

Condensed Cash Flow Statement [Table Text Block]

Condensed Statements of Cash Flows

 

 

For Years Ended December 31

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

(dollars in thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

130,353

 

 

$

71,289

 

 

$

73,395

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Equity in undistributed earnings of subsidiary

 

 

(113,396

)

 

 

(63,669

)

 

 

(49,079

)

Loss on equity securities, net

 

 

55

 

 

 

-

 

 

 

38

 

Amortization of subordinated debt issuance costs

 

 

303

 

 

 

323

 

 

 

329

 

Decrease (increase) in other assets

 

 

50,590

 

 

(50,001

)

 

 

-

 

(Decrease) increase in other liabilities

 

 

(287

)

 

 

(391

)

 

 

(1,509

)

Net cash provided by (used in) operating activities

 

 

67,618

 

 

(42,449

)

 

 

23,174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of available-for-sale securities

 

 

-

 

 

 

-

 

 

 

(2

)

Sales of available-for-sale securities

 

 

-

 

 

 

-

 

 

 

23

 

Purchase of equity securities

(780

)

-

-

Sale of equity securities

 

 

-

 

 

 

-

 

 

 

569

 

Repayment of short-term borrowing

 

 

-

 

 

(3,000

)

 

 

-

 

Capital infusion to subsidiary

 

 

-

 

 

 

-

 

 

 

-

 

Net cash (used in) provided by investing activities

 

 

(780

)

 

 

(3,000

)

 

 

590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

(Repayment of) proceeds from subordinated debt

 

 

(50,000

)

 

 

73,440

 

 

 

-

 

Cash dividends paid on preferred stock

(1,717

)

-

-

Cash dividends paid on common stock

 

 

(17,493

)

 

 

(14,317

)

 

 

(12,160

)

Purchase of treasury stock

 

 

(9,401

)

 

 

(911

)

 

 

(12,643

)

Proceeds from preferred stock offering

110,927

-

-

Proceeds from exercise of stock options

 

 

106

 

 

 

233

 

 

 

360

 

Net cash provided by (used in) financing activities

 

 

32,422

 

 

 

58,445

 

 

 

(24,443

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

 

99,260

 

 

 

12,996

 

 

 

(679

)

Cash and cash equivalents as of January 1,

 

 

34,388

 

 

 

21,392

 

 

 

22,071

 

Cash and cash equivalents as of December 31,

 

$

133,648

 

 

$

34,388

 

 

$

21,392

 

v3.22.0.1
Quarterly Financial Information of ConnectOne Bancorp, Inc. (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2021
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information [Table Text Block]

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

2021

4th Quarter

3rd Quarter

2nd Quarter

1st Quarter

(dollars in thousands, except per share data)

Total interest income

$

79,040

$

77,026

$

73,051

$

72,621

Total interest expense

 

8,579

 

8,781

 

10,042

 

11,458

Net interest income

70,461

68,245

63,009

61,163

Provision for credit losses

815

1,100

(1,649

)

(5,766

)

Total other income, net of securities gains

3,777

4,016

4,472

3,426

Other expenses

 

28,084

 

28,183

 

26,259

 

26,485

Income before income taxes

45,339

42,978

42,871

43,870

Income tax expense

 

12,301

 

10,881

 

10,652

 

10,871

Net income

33,038

32,097

32,219

32,999

Preferred dividends

1,717

-

-

-

Net income available to common stockholders

$

31,321

$

32,097

$

32,219

$

32,999

Earnings per share:

Basic

$

0.79

$

0.81

$

0.81

$

0.83

Diluted

0.79

0.80

0.81

0.82

2020

4th Quarter

3rd Quarter

2nd Quarter

1st Quarter

(dollars in thousands, except per share data)

Total interest income

$

75,588

$

77,221

$

78,677

$

76,714

Total interest expense

 

14,217

 

16,672

 

17,887

 

21,433

Net interest income

61,371

60,549

60,790

55,281

Provision for credit losses

5,000

5,000

15,000

16,000

Total other income, net of securities gains

3,442

3,483

4,621

2,854

Other expenses

 

26,402

 

26,478

 

33,063

 

35,058

Income before income taxes

33,411

32,554

17,348

7,077

Income tax expense

 

7,770

 

7,768

 

2,516

 

1,047

Net income

$

25,641

$

24,786

$

14,832

$

6,030

Earnings per share:

Basic

$

0.64

$

0.62

$

0.37

$

0.15

Diluted

0.64

0.62

0.37

0.15

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

v3.22.0.1
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Details)
 12 Months Ended
Dec. 31, 2021
USD ($)
Integer
shares
Dec. 31, 2020
USD ($)
shares
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]    
Number of Operating Segments | Integer 5  
Maximum Maturity of Cash and Cash Equivalents 90 days  
Non Accrual Contractual Due 90 days  
Non Accrual Payment Status 90 days  
Effective Income Tax Rate Reconciliation, Deduction, Medicare Prescription Drug Benefit, Percent 50.00%  
Repurchase of treasury stock, shares | shares 2,989,174 2,658,633
Individually evaluated loans $ 101,949,000 $ 80,550,000
Collectively evaluated loans $ 6,722,164,000 $ 5,192,274,000
Board of Directors [Member]    
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]    
Repurchase of treasury stock, shares | shares 330,541 54,693
Minimum [Member] | Nonaccrual Loans with an ACL [Member]    
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]    
Collectively evaluated loans $ 250,000  
Maximum [Member] | Financial Asset Acquired with Credit Deterioration [Member]    
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]    
Individually evaluated loans 250,000  
Maximum [Member] | Nonaccrual Loans with an ACL [Member]    
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]    
Individually evaluated loans $ 250,000  
Land, Buildings and Improvements [Member] | Minimum [Member]    
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]    
Property, Plant and Equipment, Useful Life 4 years  
Land, Buildings and Improvements [Member] | Maximum [Member]    
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]    
Property, Plant and Equipment, Useful Life 30 years  
Furniture Fixtures And Equipment [Member] | Minimum [Member]    
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]    
Property, Plant and Equipment, Useful Life 3 years  
Furniture Fixtures And Equipment [Member] | Maximum [Member]    
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]    
Property, Plant and Equipment, Useful Life 10 years  
v3.22.0.1
Authoritative Accounting Guidance (Schedule of Adoption of CECL Standard Resulted Adjustment in Financial Statements) (Details)
$ in Thousands
Jan. 02, 2021
USD ($)
Allowance for credit losses ("ACL") (loans) $ 944
Adjustment related to purchased credit-impaired loan marks [1]
Total ACL - loans 944
ACL (unfunded credit commitments) 1,981
Total impact of CECL adoption 2,925
Change in Consolidated Statement of Condition [Member]  
Allowance for credit losses ("ACL") (loans) 1,350
Adjustment related to purchased credit-impaired loan marks 5,207 [1]
Total ACL - loans 6,557
ACL (unfunded credit commitments) 2,833
Total impact of CECL adoption 9,390
Tax Effect [Member]  
Allowance for credit losses ("ACL") (loans) 406
Adjustment related to purchased credit-impaired loan marks [1]
Total ACL - loans 406
ACL (unfunded credit commitments) 852
Total impact of CECL adoption $ 1,258
[1] This amount represents a gross-up of the balance sheet related to nonaccretable credit marks of purchased credit-impaired loans resulting from adoption of CECL on January 1, 2021.
v3.22.0.1
Earnings per Common Share (Details) - Schedule of earnings per common share - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Earnings Per Share [Abstract]                      
Net income available to common stockholders                 $ 128,636 $ 71,289 $ 73,395
Earnings allocated to participating securities                 (313) (356) (295)
Income attributable to common stock                 $ 128,323 $ 70,933 $ 73,100
Weighted average common shares outstanding, including participating securities                 39,723 39,643 35,289
Weighted average participating securities                 (97) (131) (84)
Weighted average common shares outstanding                 39,626 39,512 35,205
Incremental shares from assumed conversions of options, restricted stock units, performance units and restricted stock                 260 132 88
Weighted average common and equivalent shares outstanding                 39,886 39,644 35,293
Earnings per common share:                      
Basic $ 0.79 $ 0.81 $ 0.81 $ 0.83 $ 0.64 $ 0.62 $ 0.37 $ 0.15 $ 3.24 $ 1.80 $ 2.08
Diluted $ 0.79 $ 0.80 $ 0.81 $ 0.82 $ 0.64 $ 0.62 $ 0.37 $ 0.15 $ 3.22 $ 1.79 $ 2.07
v3.22.0.1
Investment Securities (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]    
Available-for-sale Securities Pledged as Collateral $ 71.2 $ 107.6
Accrued interest receivable for investment securities available for sale $ 1.6 $ 1.7
Description of Holding Securities 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. 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.
v3.22.0.1
Investment Securities (Details) - Unrealized gains on investment securities - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost $ 535,182 $ 477,326
Investment Securities Available-for-Sale, Gross Unrealized Gains 4,281 11,015
Investment Securities Available-for-Sale, Gross Unrealized Losses (4,956) (386)
Investment Securities Available-for-Sale, Fair Value 534,507 487,955
Federal Agency Obligations [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 50,336 37,015
Investment Securities Available-for-Sale, Gross Unrealized Gains 649 1,508
Investment Securities Available-for-Sale, Gross Unrealized Losses (625) (65)
Investment Securities Available-for-Sale, Fair Value 50,360 38,458
Residential mortgage pass-through securities [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 317,111 266,114
Investment Securities Available-for-Sale, Gross Unrealized Gains 1,868 4,811
Investment Securities Available-for-Sale, Gross Unrealized Losses (2,884) (41)
Investment Securities Available-for-Sale, Fair Value 316,095 270,884
Commercial mortgage pass-through securities [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 10,814 6,906
Investment Securities Available-for-Sale, Gross Unrealized Gains 118 203
Investment Securities Available-for-Sale, Gross Unrealized Losses (463) (187)
Investment Securities Available-for-Sale, Fair Value 10,469 6,922
Obligations of U.S. states and political subdivisions [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 145,045 138,539
Investment Securities Available-for-Sale, Gross Unrealized Gains 1,562 4,269
Investment Securities Available-for-Sale, Gross Unrealized Losses (982)
Investment Securities Available-for-Sale, Fair Value 145,625 142,808
Corporate Bonds and Notes [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 8,968 24,925
Investment Securities Available-for-Sale, Gross Unrealized Gains 81 222
Investment Securities Available-for-Sale, Gross Unrealized Losses (52)
Investment Securities Available-for-Sale, Fair Value 9,049 25,095
Asset-backed Securities [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 2,563 3,521
Investment Securities Available-for-Sale, Gross Unrealized Gains 3
Investment Securities Available-for-Sale, Gross Unrealized Losses (2) (41)
Investment Securities Available-for-Sale, Fair Value 2,564 3,480
Certificates of Deposit [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 150 149
Investment Securities Available-for-Sale, Gross Unrealized Gains 2
Investment Securities Available-for-Sale, Gross Unrealized Losses
Investment Securities Available-for-Sale, Fair Value 150 151
Other Securities [Member]    
Investment securities available-for-sale    
Investment Securities Available-for-Sale, Amortized Cost 195 157
Investment Securities Available-for-Sale, Gross Unrealized Gains
Investment Securities Available-for-Sale, Gross Unrealized Losses
Investment Securities Available-for-Sale, Fair Value $ 195 $ 157
v3.22.0.1
Investment Securities (Details) - Investments classified by maturity date - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Investment securities available-for-sale:    
Due in one year or less, amortized cost $ 3,051  
Due in one year or less, fair value 3,045  
Due after one year through five years, amortized cost 10,280  
Due after one year through five years, fair value 10,203  
Due after five years through ten years, amortized cost 5,338  
Due after five years through ten years, fair value 5,136  
Due after ten years, amortized cost 189,079  
Due after ten years, fair value 188,678  
Total 535,182 $ 477,326
Total 534,507  
Residential mortgage pass-through securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Amortized Cost 317,111  
Investment Securities Available-for-Sale: Fair Value 316,095  
Total 317,111 266,114
Commercial mortgage pass-through securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Amortized Cost 10,814  
Investment Securities Available-for-Sale: Fair Value 10,469  
Total 10,814 6,906
Other Securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Amortized Cost 195  
Investment Securities Available-for-Sale: Fair Value 195  
Total $ 195 $ 157
v3.22.0.1
Investment Securities (Details) - Schedule of realized gains and losses - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]      
Proceeds $ 5,185 $ 19,624 $ 183,728
Gross gains on sales/redemptions of investment securities 195 29 401
Gross losses on sales/redemptions of investment securities (681)
Net gains (losses) on sales/redemptions of investment securities 195 29 (280)
Tax provision on net gains (48) (6) 79
Net gains (losses) on sales/redemptions of investment securities, after tax $ 147 $ 23 $ (201)
v3.22.0.1
Investment Securities (Details) - Schedule of unrealized losses not recognized in income - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value $ 374,015 $ 40,838
Investment Securities Available-for-Sale: Total, Unrealized Losses (4,956) (386)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 338,632 38,365
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (3,795) (345)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 35,383 2,473
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (1,161) (41)
Federal Agency Obligations [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value 28,974 8,978
Investment Securities Available-for-Sale: Total, Unrealized Losses (625) (65)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 28,974 8,975
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (625) (65)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 3
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses
Residential mortgage pass-through securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value 246,396 20,895
Investment Securities Available-for-Sale: Total, Unrealized Losses (2,884) (41)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 214,701 20,886
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (2,111) (41)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 31,695 9
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (773)
Commercial mortgage pass-through securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value 8,370 3,954
Investment Securities Available-for-Sale: Total, Unrealized Losses (463) (187)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 4,682 3,954
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (75) (187)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 3,688
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (388)
Obligations of U.S. states and political subdivisions [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value 89,473  
Investment Securities Available-for-Sale: Total, Unrealized Losses (982)  
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 89,473  
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (982)  
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value  
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses  
Asset-backed Securities [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value 802 3,083
Investment Securities Available-for-Sale: Total, Unrealized Losses (2) (41)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 802 622
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (2)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 2,461
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (41)
Corporate Bonds and Notes [Member]    
Investment securities available-for-sale:    
Investment Securities Available-for-Sale: Total, Fair Value   3,928
Investment Securities Available-for-Sale: Total, Unrealized Losses   (52)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value   3,928
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses   (52)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value  
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses  
v3.22.0.1
Loans and the Allowance for Credit Losses (Details)
$ in Thousands
 12 Months Ended
Jan. 02, 2021
USD ($)
Dec. 31, 2021
USD ($)
Loans
Dec. 31, 2020
USD ($)
Loans
Dec. 31, 2019
USD ($)
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items]        
PPP Loans   $ 93,100 $ 397,500  
Non Accrual Contractual Due   90 days    
Loans Pledged as Collateral   $ 2,500,000 2,700,000  
Provision for credit losses $ 6,600      
Loans performing under the restructured terms   43,600 23,700  
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans   35,900 25,700  
Troubled debt restructurings   79,500 49,400  
Specific allowance of TDR's   $ 10,400 $ 0  
Number of deferred loans | Loans   1 113  
Deferred loan   $ 500 $ 207,100  
Taxi medallion loans [Member]        
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items]        
Number of loans   one taxi medallion loan    
Value of taxi medallion loans Included in the commercial loan segment of the troubled debt restructurings       $ 300
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Composition of loan portfolio - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Impaired [Line Items]    
Gross loans $ 6,838,351 $ 6,247,681
Net deferred fees (9,729) (11,374)
Total loans receivable 6,828,622 6,236,307
Commercial Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans [1] 1,299,428 1,521,967
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 4,741,590 3,783,550
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 540,178 617,747
Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 255,269 322,564
Consumer Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans $ 1,886 $ 1,853
[1] Included in commercial loans as of December 31, 2021 and December 31, 2020 were Paycheck Protection Program (“PPP”) loans of $93.1 million and $397.5 million, respectively. These loans are 100% federally guaranteed and currently not subject to any allocation of allowance for credit losses.
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Loans held-for-sale - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Impaired [Line Items]    
Total carrying amount $ 250 $ 4,710
Commercial Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Total carrying amount
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Total carrying amount 1,990
Residential Mortgage Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Total carrying amount $ 250 $ 2,720
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Loans receivable on nonaccrual status - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status $ 61,700 $ 61,696
Nonaccrual Loans with an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 45,347  
Nonaccrual Loans without an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 16,353  
Commercial Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 30,062 33,019
Commercial Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 28,746  
Commercial Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 1,316  
Commercial Real Estate Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 25,393 10,111
Commercial Real Estate Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 15,362  
Commercial Real Estate Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 10,031  
Commercial Construction Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 3,150 14,015
Commercial Construction Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status  
Commercial Construction Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 3,150  
Residential Real Estate Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 3,095 4,551
Residential Real Estate Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 1,239  
Residential Real Estate Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 1,856  
Consumer Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status
Consumer Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status  
Consumer Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status  
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Origination and Risk Designation - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 $ 2,134,132  
2020 637,882  
2019 517,603  
2018 574,284  
2017 639,093  
Prior 1,103,922  
Revolving loans 1,231,435  
Total gross loans 6,838,351 $ 6,247,681
Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 403,373  
2020 58,534  
2019 56,327  
2018 73,707  
2017 105,468  
Prior 111,625  
Revolving loans 490,394  
Total gross loans 1,299,428 1,521,967
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,694,066  
2020 542,354  
2019 425,001  
2018 472,886  
2017 502,207  
Prior 918,790  
Revolving loans 186,286  
Total gross loans 4,741,590 3,783,550
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 8,018  
2020 7,370  
2019 12,625  
2018 2,600  
2017 2,689  
Prior  
Revolving loans 506,876  
Total gross loans 540,178 617,747
Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 27,081  
2020 29,539  
2019 23,611  
2018 25,070  
2017 28,701  
Prior 73,511  
Revolving loans 47,756  
Total gross loans 255,269 322,564
Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,594  
2020 85  
2019 39  
2018 21  
2017 28  
Prior (4)  
Revolving loans 123  
Total gross loans 1,886 1,853
Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 2,131,994  
2020 628,843  
2019 511,755  
2018 540,362  
2017 623,860  
Prior 995,045  
Revolving loans 1,176,772  
Total gross loans 6,608,631 6,047,888
Pass [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 403,203  
2020 58,534  
2019 54,485  
2018 60,409  
2017 95,727  
Prior 86,556  
Revolving loans 471,588  
Total gross loans 1,230,502 1,447,097
Pass [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,692,098  
2020 533,315  
2019 420,995  
2018 452,262  
2017 497,065  
Prior 842,244  
Revolving loans 170,721  
Total gross loans 4,608,700 3,700,498
Pass [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 8,018  
2020 7,370  
2019 12,625  
2018 2,600  
2017 2,339  
Prior  
Revolving loans 490,119  
Total gross loans 523,071 587,266
Pass [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 27,081  
2020 29,539  
2019 23,611  
2018 25,070  
2017 28,701  
Prior 66,249  
Revolving loans 44,221  
Total gross loans 244,472 311,174
Pass [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,594  
2020 85  
2019 39  
2018 21  
2017 28  
Prior (4)  
Revolving loans 123  
Total gross loans 1,886 1,853
Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017 5,493  
Prior 54,483  
Revolving loans 12,310  
Total gross loans 72,286 79,868
Special Mention [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017 1  
Prior 4,045  
Revolving loans 4,266  
Total gross loans 8,312 30,725
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017 5,142  
Prior 50,438  
Revolving loans 6,601  
Total gross loans 62,181 49,143
Special Mention [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017 350  
Prior  
Revolving loans 1,443  
Total gross loans 1,793
Special Mention [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Total gross loans
Special Mention [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Total gross loans
Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 2,138  
2020 9,039  
2019 5,848  
2018 33,922  
2017 9,740  
Prior 54,394  
Revolving loans 42,353  
Total gross loans 157,434 119,710
Substandard [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 170  
2020  
2019 1,842  
2018 13,298  
2017 9,740  
Prior 21,024  
Revolving loans 14,540  
Total gross loans 60,614 43,930
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,968  
2020 9,039  
2019 4,006  
2018 20,624  
2017  
Prior 26,108  
Revolving loans 8,964  
Total gross loans 70,709 33,909
Substandard [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans 15,314  
Total gross loans 15,314 30,481
Substandard [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior 7,262  
Revolving loans 3,535  
Total gross loans 10,797 11,390
Substandard [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Total gross loans
Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Total gross loans 215
Doubtful [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Total gross loans 215
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Total gross loans
Doubtful [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Total gross loans
Doubtful [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Total gross loans
Doubtful [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Total gross loans
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Credit quality indicators - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount $ 6,838,351 $ 6,247,681
Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 6,608,631 6,047,888
Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 72,286 79,868
Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 157,434 119,710
Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 215
Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,299,428 1,521,967
Commercial Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,230,502 1,447,097
Commercial Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 8,312 30,725
Commercial Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 60,614 43,930
Commercial Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 215
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 4,741,590 3,783,550
Commercial Real Estate Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 4,608,700 3,700,498
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 62,181 49,143
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 70,709 33,909
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 540,178 617,747
Commercial Construction Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 523,071 587,266
Commercial Construction Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,793
Commercial Construction Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 15,314 30,481
Commercial Construction Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 255,269 322,564
Residential Real Estate Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 244,472 311,174
Residential Real Estate Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Residential Real Estate Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 10,797 11,390
Residential Real Estate Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,886 1,853
Consumer Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,886 1,853
Consumer Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Consumer Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
Consumer Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Fair value of collateral
$ in Thousands
Dec. 31, 2021
USD ($)
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral $ 109,863
Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 83,681
Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 26,182
Commercial Portfolio Segment [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 32,567
Commercial Portfolio Segment [Member] | Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 6,385
Commercial Portfolio Segment [Member] | Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 26,182
Commercial Real Estate Portfolio Segment [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 55,244
Commercial Real Estate Portfolio Segment [Member] | Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 55,244
Commercial Real Estate Portfolio Segment [Member] | Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral
Commercial Construction Portfolio Segment [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 13,196
Commercial Construction Portfolio Segment [Member] | Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 13,196
Commercial Construction Portfolio Segment [Member] | Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral
Residential Real Estate Portfolio Segment [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 8,856
Residential Real Estate Portfolio Segment [Member] | Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 8,856
Residential Real Estate Portfolio Segment [Member] | Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral
Consumer Portfolio Segment [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral
Consumer Portfolio Segment [Member] | Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral
Consumer Portfolio Segment [Member] | Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Schedule of analysis of impaired loans, by class
$ in Thousands
 12 Months Ended
Dec. 31, 2020
USD ($)
Financing Receivable, Impaired [Line Items]  
No related allowance recorded, Recorded Investment $ 54,092
No related allowance recorded, Unpaid Principal Balance 55,914
No related allowance recorded, Related Allowance
No Related Allowance Average Recorded Investment 50,854
No Related Allowance Interest Income Recognized 971
With an allowance recorded, Recorded Investment 26,458
With an allowance recorded, Unpaid Principal Balance 71,844
With an allowance recorded, Related Allowance 14,314
With An Allowance Recorded Average Recorded Investment 26,347
With An Allowance Recorded Interest Income Recognized
Total, Recorded Investment 80,550
Total, Unpaid Principal Balance 127,758
Total, Related Allowance 14,314
Total Impaired Average Recorded Investment 77,201
Total Impaired Interest Income Recognized 971
Commercial Portfolio Segment [Member]  
Financing Receivable, Impaired [Line Items]  
No related allowance recorded, Recorded Investment 11,325
No related allowance recorded, Unpaid Principal Balance 11,835
No related allowance recorded, Related Allowance
No Related Allowance Average Recorded Investment 11,627
No Related Allowance Interest Income Recognized 203
With an allowance recorded, Recorded Investment 23,736
With an allowance recorded, Unpaid Principal Balance 69,122
With an allowance recorded, Related Allowance 12,985
With An Allowance Recorded Average Recorded Investment 23,625
With An Allowance Recorded Interest Income Recognized
Total, Recorded Investment 35,061
Total, Unpaid Principal Balance 80,957
Total, Related Allowance 12,985
Total Impaired Average Recorded Investment 35,252
Total Impaired Interest Income Recognized 203
Commercial Real Estate Portfolio Segment [Member]  
Financing Receivable, Impaired [Line Items]  
No related allowance recorded, Recorded Investment 13,105
No related allowance recorded, Unpaid Principal Balance 13,449
No related allowance recorded, Related Allowance
No Related Allowance Average Recorded Investment 13,215
No Related Allowance Interest Income Recognized 287
With an allowance recorded, Recorded Investment 2,722
With an allowance recorded, Unpaid Principal Balance 2,722
With an allowance recorded, Related Allowance 1,329
With An Allowance Recorded Average Recorded Investment 2,722
With An Allowance Recorded Interest Income Recognized
Total, Recorded Investment 15,827
Total, Unpaid Principal Balance 16,171
Total, Related Allowance 1,329
Total Impaired Average Recorded Investment 15,937
Total Impaired Interest Income Recognized 287
Commercial Construction Portfolio Segment [Member]  
Financing Receivable, Impaired [Line Items]  
No related allowance recorded, Recorded Investment 24,284
No related allowance recorded, Unpaid Principal Balance 24,907
No related allowance recorded, Related Allowance
No Related Allowance Average Recorded Investment 21,279
No Related Allowance Interest Income Recognized 377
Total, Recorded Investment 24,284
Total, Unpaid Principal Balance 24,907
Total, Related Allowance
Total Impaired Average Recorded Investment 21,279
Total Impaired Interest Income Recognized 377
Residential Real Estate Portfolio Segment [Member]  
Financing Receivable, Impaired [Line Items]  
No related allowance recorded, Recorded Investment 5,378
No related allowance recorded, Unpaid Principal Balance 5,723
No related allowance recorded, Related Allowance
No Related Allowance Average Recorded Investment 4,733
No Related Allowance Interest Income Recognized 104
Total, Recorded Investment 5,378
Total, Unpaid Principal Balance 5,723
Total, Related Allowance
Total Impaired Average Recorded Investment 4,733
Total Impaired Interest Income Recognized 104
Consumer Portfolio Segment [Member]  
Financing Receivable, Impaired [Line Items]  
No related allowance recorded, Recorded Investment
No related allowance recorded, Unpaid Principal Balance
No related allowance recorded, Related Allowance
No Related Allowance Average Recorded Investment
No Related Allowance Interest Income Recognized
Total, Recorded Investment
Total, Unpaid Principal Balance
Total, Related Allowance
Total Impaired Average Recorded Investment
Total Impaired Interest Income Recognized
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Aging analysis - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Past Due [Line Items]    
Nonaccrual $ 61,700 $ 61,696
Total Past Due 84,625 98,000
Current 6,753,726 6,149,681
Loans 6,838,351 6,247,681
30 - 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 7,364 18,544
60 - 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 2,030 4,939
90 Days or Greater Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 13,531 12,821
Commercial Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 30,062 33,019
Total Past Due 39,553 38,204
Current 1,259,875 1,483,763
Loans [1] 1,299,428 1,521,967
Commercial Portfolio Segment [Member] | 30 - 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 4,305 1,445
Commercial Portfolio Segment [Member] | 60 - 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 729 558
Commercial Portfolio Segment [Member] | 90 Days or Greater Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 4,457 3,182
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 25,393 10,111
Total Past Due 33,959 33,064
Current 4,707,631 3,750,486
Loans 4,741,590 3,783,550
Commercial Real Estate Portfolio Segment [Member] | 30 - 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,622 13,258
Commercial Real Estate Portfolio Segment [Member] | 60 - 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,009 4,140
Commercial Real Estate Portfolio Segment [Member] | 90 Days or Greater Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 5,935 5,555
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 3,150 14,015
Total Past Due 3,150 16,487
Current 537,028 601,260
Loans 540,178 617,747
Commercial Construction Portfolio Segment [Member] | 30 - 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 2,472
Commercial Construction Portfolio Segment [Member] | 60 - 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due
Commercial Construction Portfolio Segment [Member] | 90 Days or Greater Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due
Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 3,095 4,551
Total Past Due 7,963 10,243
Current 247,306 312,321
Loans 255,269 322,564
Residential Real Estate Portfolio Segment [Member] | 30 - 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,437 1,367
Residential Real Estate Portfolio Segment [Member] | 60 - 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 292 241
Residential Real Estate Portfolio Segment [Member] | 90 Days or Greater Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 3,139 4,084
Consumer Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual
Total Past Due 2
Current 1,886 1,851
Loans 1,886 1,853
Consumer Portfolio Segment [Member] | 30 - 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due 2
Consumer Portfolio Segment [Member] | 60 - 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due
Consumer Portfolio Segment [Member] | 90 Days or Greater Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due
[1] Included in commercial loans as of December 31, 2021 and December 31, 2020 were Paycheck Protection Program (“PPP”) loans of $93.1 million and $397.5 million, respectively. These loans are 100% federally guaranteed and currently not subject to any allocation of allowance for credit losses.
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Allowance for loan losses - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Allowance for loan and lease losses        
Allowance for loan and lease losses, individually evaluated for impairment $ 16,217 $ 14,314    
Allowance for loan and lease losses, collectively evaluated for impairment 58,358 59,072    
Allowance for loan and lease losses, acquired portfolio   5,840    
Allowance for loan and lease losses, acquired with deteriorated credit quality individually analyzed 4,198    
Allowance for loan and lease losses, total 78,773 79,226 $ 38,293 $ 34,954
Gross loans        
Loans Receivable, individually evaluated for impairment 101,949 80,550    
Loans Receivable, collectively evaluated for impairment 6,722,164 5,192,274    
Loans Receivable, acquired portfolio   961,340    
Loans Receivables, acquired with deteriorated credit quality individually analyzed 14,238 13,517    
Loans Receivable, Total 6,838,351 6,247,681    
Commercial Portfolio Segment [Member]        
Allowance for loan and lease losses        
Allowance for loan and lease losses, individually evaluated for impairment 15,131 12,985    
Allowance for loan and lease losses, collectively evaluated for impairment 8,561 15,412    
Allowance for loan and lease losses, acquired portfolio   46    
Allowance for loan and lease losses, acquired with deteriorated credit quality individually analyzed 2,277    
Allowance for loan and lease losses, total 25,969 28,443 8,349 9,875
Gross loans        
Loans Receivable, individually evaluated for impairment 33,726 35,061    
Loans Receivable, collectively evaluated for impairment 1,260,537 1,414,626    
Loans Receivable, acquired portfolio   68,402    
Loans Receivables, acquired with deteriorated credit quality individually analyzed 5,165 3,878    
Loans Receivable, Total 1,299,428 1,521,967    
Commercial Real Estate Portfolio Segment [Member]        
Allowance for loan and lease losses        
Allowance for loan and lease losses, individually evaluated for impairment 955 1,329    
Allowance for loan and lease losses, collectively evaluated for impairment 42,713 33,373    
Allowance for loan and lease losses, acquired portfolio   4,628    
Allowance for loan and lease losses, acquired with deteriorated credit quality individually analyzed 1,921    
Allowance for loan and lease losses, total 45,589 39,330 20,853 18,847
Gross loans        
Loans Receivable, individually evaluated for impairment 49,310 15,827    
Loans Receivable, collectively evaluated for impairment 4,686,346 2,959,978    
Loans Receivable, acquired portfolio   802,190    
Loans Receivables, acquired with deteriorated credit quality individually analyzed 5,934 5,555    
Loans Receivable, Total 4,741,590 3,783,550    
Commercial Construction 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 3,580 7,787    
Allowance for loan and lease losses, acquired portfolio   407    
Allowance for loan and lease losses, acquired with deteriorated credit quality individually analyzed    
Allowance for loan and lease losses, total 3,580 8,194 7,304 4,519
Gross loans        
Loans Receivable, individually evaluated for impairment 13,196 24,284    
Loans Receivable, collectively evaluated for impairment 526,982 574,118    
Loans Receivable, acquired portfolio   19,345    
Loans Receivables, acquired with deteriorated credit quality individually analyzed    
Loans Receivable, Total 540,178 617,747    
Residential Real Estate Portfolio Segment [Member]        
Allowance for loan and lease losses        
Allowance for loan and lease losses, individually evaluated for impairment 131    
Allowance for loan and lease losses, collectively evaluated for impairment 3,497 1,928    
Allowance for loan and lease losses, acquired portfolio   759    
Allowance for loan and lease losses, acquired with deteriorated credit quality individually analyzed    
Allowance for loan and lease losses, total 3,628 2,687 1,685 1,266
Gross loans        
Loans Receivable, individually evaluated for impairment 5,717 5,378    
Loans Receivable, collectively evaluated for impairment 246,413 241,925    
Loans Receivable, acquired portfolio   71,177    
Loans Receivables, acquired with deteriorated credit quality individually analyzed 3,139 4,084    
Loans Receivable, Total 255,269 322,564    
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 7 4    
Allowance for loan and lease losses, acquired portfolio      
Allowance for loan and lease losses, acquired with deteriorated credit quality individually analyzed    
Allowance for loan and lease losses, total 7 4 3 2
Gross loans        
Loans Receivable, individually evaluated for impairment    
Loans Receivable, collectively evaluated for impairment 1,886 1,627    
Loans Receivable, acquired portfolio   226    
Loans Receivables, acquired with deteriorated credit quality individually analyzed    
Loans Receivable, Total 1,886 1,853    
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   568    
Allowance for loan and lease losses, acquired portfolio      
Allowance for loan and lease losses, acquired with deteriorated credit quality individually analyzed      
Allowance for loan and lease losses, total $ 568 $ 99 $ 445
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Schedule of allowance for loan losses - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]                      
Balance       $ 79,226       $ 38,293 $ 79,226 $ 38,293 $ 34,954
Day 1 Adjustment CECL                 6,557    
Balance as of January 1, 2021 as adjusted for changes in accounting principle       85,783         85,783    
Loan charge-offs                 (2,397) (900) (5,076)
Recoveries                 405 833 315
Provision for loan losses $ 815 $ 1,100 $ (1,649) (5,766) $ 5,000 $ 5,000 $ 15,000 16,000 (5,018) 41,000 8,100
Balance 78,773       79,226       78,773 79,226 38,293
Commercial Portfolio Segment [Member]                      
Financing Receivable, Allowance for Credit Loss [Line Items]                      
Balance       28,443       8,349 28,443 8,349 9,875
Day 1 Adjustment CECL                 (4,225)    
Balance as of January 1, 2021 as adjusted for changes in accounting principle       24,218         24,218    
Loan charge-offs                 (382) (552) (1,029)
Recoveries                 289 4 265
Provision for loan losses                 1,844 20,642 (762)
Balance 25,969       28,443       25,969 28,443 8,349
Commercial Real Estate Portfolio Segment [Member]                      
Financing Receivable, Allowance for Credit Loss [Line Items]                      
Balance       39,330       20,853 39,330 20,853 18,847
Day 1 Adjustment CECL                 9,605    
Balance as of January 1, 2021 as adjusted for changes in accounting principle       48,935         48,935    
Loan charge-offs                 (1,780) (3,470)
Recoveries                 85 802 30
Provision for loan losses                 (1,651) 17,675 5,446
Balance 45,589       39,330       45,589 39,330 20,853
Commercial Construction Portfolio Segment [Member]                      
Financing Receivable, Allowance for Credit Loss [Line Items]                      
Balance       8,194       7,304 8,194 7,304 4,519
Day 1 Adjustment CECL                 (961)    
Balance as of January 1, 2021 as adjusted for changes in accounting principle       7,233         7,233    
Loan charge-offs                
Recoveries                
Provision for loan losses                 (3,653) 890 2,785
Balance 3,580       8,194       3,580 8,194 7,304
Residential Real Estate Portfolio Segment [Member]                      
Financing Receivable, Allowance for Credit Loss [Line Items]                      
Balance       2,687       1,685 2,687 1,685 1,266
Day 1 Adjustment CECL                 2,697    
Balance as of January 1, 2021 as adjusted for changes in accounting principle       5,384         5,384    
Loan charge-offs                 (235) (341) (557)
Recoveries                 20 23 3
Provision for loan losses                 (1,541) 1,320 973
Balance 3,628       2,687       3,628 2,687 1,685
Consumer Portfolio Segment [Member]                      
Financing Receivable, Allowance for Credit Loss [Line Items]                      
Balance       4       3 4 3 2
Day 1 Adjustment CECL                 9    
Balance as of January 1, 2021 as adjusted for changes in accounting principle       13         13    
Loan charge-offs                 (7) (20)
Recoveries                 11 4 17
Provision for loan losses                 (17) 4 4
Balance 7       4       7 4 3
Unallocated Financing Receivables [Member]                      
Financing Receivable, Allowance for Credit Loss [Line Items]                      
Balance       568       $ 99 568 99 445
Day 1 Adjustment CECL                 (568)    
Balance as of January 1, 2021 as adjusted for changes in accounting principle                  
Loan charge-offs                
Recoveries                
Provision for loan losses                 469 (346)
Balance       $ 568       $ 568 $ 99
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Schedule of Troubled Debt Restructuring by Class
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
Integer
Dec. 31, 2020
USD ($)
Integer
Dec. 31, 2019
USD ($)
Integer
Troubled debt restructurings:      
Number of Loans | Integer 19 5 17
Pre-Modification Outstanding Recorded Investment $ 40,310 $ 6,486 $ 26,051
Post-Modification Outstanding Recorded Investment $ 40,310 $ 6,486 $ 26,051
Commercial Portfolio Segment [Member]      
Troubled debt restructurings:      
Number of Loans | Integer 4 1 11
Pre-Modification Outstanding Recorded Investment $ 1,276 $ 188 $ 14,558
Post-Modification Outstanding Recorded Investment $ 1,276 $ 188 $ 14,558
Commercial Real Estate Portfolio Segment [Member]      
Troubled debt restructurings:      
Number of Loans | Integer 11 1 3
Pre-Modification Outstanding Recorded Investment $ 35,635 $ 93 $ 5,863
Post-Modification Outstanding Recorded Investment $ 35,635 $ 93 $ 5,863
Commercial Construction Portfolio Segment [Member]      
Troubled debt restructurings:      
Number of Loans | Integer 1 1 3
Pre-Modification Outstanding Recorded Investment $ 1,641 $ 4,021 $ 5,630
Post-Modification Outstanding Recorded Investment $ 5,630 $ 4,021 $ 1,641
Residential Real Estate Portfolio Segment [Member]      
Troubled debt restructurings:      
Number of Loans | Integer 3 2  
Pre-Modification Outstanding Recorded Investment $ 1,758 $ 2,184  
Post-Modification Outstanding Recorded Investment $ 1,758 $ 2,184  
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Schedule of ACL for off-balance sheet credit exposure
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
Receivables [Abstract]  
Balance
Day 1 Effect of CECL 2,833
Provision for (reversal of) credit losses - unfunded commitments (482)
Balance $ 2,351
v3.22.0.1
Loans and the Allowance for Credit Losses (Details) - Schedule of (Reversal of) provision for credit losses
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
Receivables [Abstract]  
Provision for (reversal of) credit losses - loans $ (5,018)
Provision for (reversal of) credit losses - unfunded commitments (482)
Provision for (reversal of) credit losses $ (5,500)
v3.22.0.1
Premises and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Abstract]      
Depreciation and amortization expense $ 3,800 $ 4,200 $ 3,100
Right-of-use assets $ 11,017 $ 16,159  
Lease term for operating leases 5 years 9 months 18 days    
Weighted average discount rate 2.80%    
Lease costs $ 3,200    
v3.22.0.1
Premises and Equipment (Details) - Schedule of Premises and Equipment - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross $ 69,221 $ 92,181
Less: accumulated depreciation, amortization and fair value adjustments 40,189 62,073
Total premises and equipment, net 29,032 30,108
Land [Member]    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 7,232 7,232
Buildings [Member]    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross $ 10,509 15,159
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]    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross $ 24,137 40,930
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 $ 27,343 $ 28,860
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  
v3.22.0.1
Premises and Equipment (Details) - Schedule of Capital Lease in Premises and Equipment - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Abstract]    
Capital Lease $ 3,423 $ 3,408
Less: accumulated amortization 2,224 2,038
Lease in premises and equipment $ 1,199 $ 1,370
v3.22.0.1
Premises and Equipment (Details) - Schedule of Future Minimum Lease Payments for Finance leases
$ in Thousands
Dec. 31, 2021
USD ($)
2022 $ 321
2023 323
2024 353
2025 353
2026 353
Thereafter 676
Total minimum lease payments 2,379
Less amount representing interest 444
Other Liabilities [Member]  
Present value of net minimum lease payments $ 1,935
v3.22.0.1
Premises and Equipment (Details) - Schedule of Operating Lease Liabilities and Reconciliation - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Lease payments due:    
Less than 1 year $ 2,807  
1 year through less than 2 years 2,586  
2 years through less than 3 years 2,065  
3 years through less than 4 years 1,773  
4 years through 5 years 1,668  
After 5 years 2,680  
Total undiscounted cash flows 13,579  
Impact of discounting (1,162)  
Total lease liability $ 12,417 $ 18,026
v3.22.0.1
Goodwill and Other Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization of Intangible Assets $ 1,980 $ 2,559 $ 1,408
v3.22.0.1
Goodwill and Other Intangible Assets (Details) - Schedule of change in goodwill - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]    
Beginning of year $ 208,372 $ 162,574
Acquired goodwill 45,798
Impairment
End of year $ 208,372 $ 208,372
v3.22.0.1
Goodwill and Other Intangible Assets (Details) - Intangible Assets Disclosure - Core Deposits [Member] - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Gross Carrying Amount $ 18,515 $ 18,515
Accumulated Amortization (9,518) (7,538)
Net Carrying Amount $ 8,997 $ 10,977
v3.22.0.1
Goodwill and Other Intangible Assets (Details) - Estimated amortization expense
$ in Thousands
Dec. 31, 2021
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2022 $ 1,684
2023 1,438
2024 1,235
2025 1,116
2026 $ 1,050
v3.22.0.1
Deposits (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Deposits:    
Time Deposits Maturities, after Next Twelve Months $ 1,200.0 $ 1,500.0
Brokered Time Deposits 215.2 217.5
Time Deposits 250000 or More $ 250.5 $ 368.3
v3.22.0.1
Deposits (Details) - Schedule of Time Deposits
$ in Thousands
Dec. 31, 2021
USD ($)
Deposits:  
2022 $ 745,411
2023 176,351
2024 45,678
2025 51,216
2026 105,342
2027 25,995
Sub-Total 1,149,993
Fair value premium 116
Total $ 1,150,109
v3.22.0.1
FHLB Borrowings (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Debt Disclosure [Abstract]  
Long-term Line of Credit $ 1,900.0
Line of Credit Facility, Remaining Borrowing Capacity $ 867.3
v3.22.0.1
FHLB Borrowings (Details) - Schedule of components of FHLB borrowings and weighted average interest rates - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
By remaining period to maturity:    
Less than 1 year (in Dollars) $ 390,549 $ 297,570
Less than 1 year 0.56% 0.84%
1 year through less than 2 years (in Dollars) $ 50,000 $ 75,644
1 year through less than 2 years 1.84% 1.42%
2 years through less than 3 years (in Dollars) $ 50,000
2 years through less than 3 years 1.84%
3 years through less than 4 years (in Dollars) $ 25,000
3 years through less than 4 years 1.00%
4 years through 5 years (in Dollars) $ 2,050
4 years through 5 years 2.23%
After 5 years (in Dollars) $ 714 $ 2,824
After 5 years 2.91% 2.42%
FHLB borrowings - gross $ 468,313 $ 426,038
Weighted average interest rates 0.73% 1.07%
Fair value (discount) premium $ (120) $ (84)
FHLB borrowings, net $ 468,193 $ 425,954
v3.22.0.1
Subordinated Debentures (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Jan. 11, 2018
Jun. 10, 2015
Jun. 30, 2015
Dec. 31, 2021
Subordinated Debt from Trust [Member]        
Subordinated Debentures (Details) [Line Items]        
Value of subordinated debentures received by Trust       $ 5.0
Percentage Rate Added to Libor       2.85%
Floating interest rate on subordinated debentures       2.98%
Proceeds from Issuance of Debt       $ 5.2
Debt Instrument, Maturity Date       Jan. 23, 2034
Fixed-to-floating Rate Subordinated Notes [Member]        
Subordinated Debentures (Details) [Line Items]        
Percentage Rate Added to Libor 2.84%      
Proceeds from Issuance of Debt $ 75.0 $ 75.0 $ 50.0  
Debt Instrument, Maturity Date Feb. 01, 2023 Jun. 15, 2025   Jul. 01, 2025
Debt Instrument, Interest Rate, Stated Percentage 5.20% 5.75%   4.16%
Debt Instrument, Description of Variable Rate Basis three-month LIBOR rate plus 284 basis points Three-Month Term SOFR (as defined in the Second Supplemental Indenture), plus 560.5 basis points   three-month LIBOR rate plus 393 basis points
v3.22.0.1
Subordinated Debentures (Details) - Schedule of Subordinated Borrowing - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Subordinated Borrowings [Abstract]    
Issuance Date Dec. 19, 2003 Dec. 19, 2003
Securities Issued $ 5,000,000 $ 5,000,000
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
v3.22.0.1
Income Taxes (Narrative) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2021
USD ($)
Temporary surtax on allocated income $ 1
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%
v3.22.0.1
Income Taxes (Details) - Schedule of Components of Income Tax Expense (Benefit) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current:                      
Federal                 $ 32,364 $ 19,590 $ 15,509
State                 12,325 7,006 5,018
Subtotal                 44,689 26,596 20,527
Deferred:                      
Federal                 (110) (3,881) 916
State                 126 (3,614) (812)
Subtotal                 16 (7,495) 104
Income tax expense $ 12,301 $ 10,881 $ 10,652 $ 10,871 $ 7,770 $ 7,768 $ 2,516 $ 1,047 $ 44,705 $ 19,101 $ 20,631
v3.22.0.1
Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]                      
Income before income tax expense $ 45,339 $ 42,978 $ 42,871 $ 43,870 $ 33,411 $ 32,554 $ 17,348 $ 7,077 $ 175,058 $ 90,390 $ 94,026
Federal statutory rate                 21.00% 21.00% 21.00%
Computed "expected" Federal income tax expense                 $ 36,762 $ 18,982 $ 19,745
State tax, net of federal tax benefit                 9,127 1,913 3,436
Bank owned life insurance                 (1,001) (1,052) (732)
Tax-exempt interest and dividends                 (1,405) (1,491) (2,519)
Tax benefits from stock-based compensation                 (261) 157 (27)
Other, net                 1,483 592 728
Income tax expense $ 12,301 $ 10,881 $ 10,652 $ 10,871 $ 7,770 $ 7,768 $ 2,516 $ 1,047 $ 44,705 $ 19,101 $ 20,631
v3.22.0.1
Income Taxes (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets    
Allowance for credit losses $ 23,955 $ 23,399
Depreciation 205
Pension actuarial losses 1,301 1,385
New Jersey net operating loss 3,609 4,370
Deferred compensation 2,786 1,835
Unrealized loss on AFS 191
Deferred loan costs, net of fees 2,163 357
Capital lease 222 225
Nonaccrual interest 62 51
Other 3,703 4,519
Total deferred tax assets 38,197 36,141
Deferred tax liabilities    
Employee benefit plans (2,289) (2,161)
Purchase accounting (925) (1,821)
Depreciation (187)
Prepaid expenses (288) (201)
Market discount accretion (437) (428)
Unrealized gains on securities and swaps (941) (2,171)
Other (1,562)
Total deferred tax liabilities (6,442) (6,969)
Net deferred tax assets $ 31,755 $ 29,172
v3.22.0.1
Preferred Stock (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Aug. 19, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Subsidiary, Sale of Stock [Line Items]        
Preferred shares issued   115,000 0  
Preferred stock liquidation preference, per share   $ 1,000 $ 1,000  
Proceeds from issuance of preferred stock $ 110,900 $ 110,927
Series A Preferred Stock [Member]        
Subsidiary, Sale of Stock [Line Items]        
Preferred stock liquidation preference, per share $ 1,000      
Percentage of fixed-rate non-cumulative perpetual preferred stock 5.25%      
Underwritten Public Offering [Member]        
Subsidiary, Sale of Stock [Line Items]        
Preferred shares issued 115,000      
Preferred stock liquidation preference $ 11,500      
v3.22.0.1
Commitments, Contingencies and Concentrations of Credit Risk (Details) - Summary of Financial Instruments - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Supply Commitment [Line Items]    
Off-balance sheet commitements $ 1,241,868 $ 948,799
Commercial Portfolio Segment [Member] | Supply Commitment [Member]    
Supply Commitment [Line Items]    
Off-balance sheet commitements 514,473 525,606
Home Equity Line of Credit [Member]    
Supply Commitment [Line Items]    
Off-balance sheet commitements 53,180 65,690
Commercial Real Estate Portfolio Segment [Member] | Supply Commitment [Member]    
Supply Commitment [Line Items]    
Off-balance sheet commitements 647,971 327,745
Standby Letters of Credit [Member]    
Supply Commitment [Line Items]    
Off-balance sheet commitements 25,271 28,738
Overdraft Protection Lines [Member]    
Supply Commitment [Line Items]    
Off-balance sheet commitements $ 973 $ 1,020
v3.22.0.1
Transactions with Executive Officers, Directors and Principal Stockholders (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Related Party Transactions [Abstract]    
Proceeds from Other Deposits $ 59.5 $ 55.4
v3.22.0.1
Transactions with Executive Officers, Directors and Principal Stockholders (Loans) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Related Party Transactions [Abstract]    
Beginning balance $ 21,534 $ 57,409
New loans 5,250 1,500
Repayments (9,168) (37,375)
Ending balance $ 17,616 $ 21,534
v3.22.0.1
Stockholders' Equity and Regulatory Requirements (Details)
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets 3.64%
Total Risk Based Capital Ratio 2.94%
v3.22.0.1
Stockholders' Equity and Regulatory Requirements (Details) - Schedule of Compliance with Regulatory Capital Requirements - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets 3.64%  
Parent Company [Member]    
Tier One Leverage Capital $ 909,577 $ 694,895
Tier One Leverage Capital to Average Assets 11.65% 9.51%
Tier One Leverage Capital Required for Capital Adequacy $ 312,194 $ 292,349
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 $ 793,495 $ 689,740
CET One Risk Based Capital to Risk Weighted Assets 10.64% 10.79%
CET One Risk Based Capital Required for Capital Adequacy $ 335,648 $ 287,746
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 $ 909,577 $ 694,895
Tier One Risk Based Capital to Risk Weighted Assets 12.19% 10.87%
Tier One Risk Based Capital Required for Capital Adequacy $ 447,531 $ 383,661
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 $ 1,138,350 $ 964,121
Capital to Risk Weighted Assets 15.26% 15.08%
Capital Required for Capital Adequacy $ 596,708 $ 511,548
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 $ 891,730 $ 776,430
Tier One Leverage Capital to Average Assets 11.43% 10.64%
Tier One Leverage Capital Required for Capital Adequacy $ 312,166 $ 291,958
Tier One Leverage Capital Required for Capital Adequacy to Average Assets 4.00% 4.00%
Tier One Leverage Capital Required to be Well Capitalized $ 390,207 $ 364,947
Tier One Leverage Capital Required to be Well Capitalized to Average Assets 5.00% 5.00%
CET One Risk Based Capital $ 891,730 $ 776,430
CET One Risk Based Capital to Risk Weighted Assets 11.96% 12.24%
CET One Risk Based Capital Required for Capital Adequacy $ 335,641 $ 285,473
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 $ 484,815 $ 412,349
CET One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets 6.50% 6.50%
Tier One Risk Based Capital $ 891,730 $ 776,430
Tier One Risk Based Capital to Risk Weighted Assets 11.96% 12.24%
Tier One Risk Based Capital Required for Capital Adequacy $ 447,522 $ 380,630
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 $ 596,696 $ 507,507
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets 8.00% 8.00%
Capital $ 1,002,753 $ 887,906
Capital to Risk Weighted Assets 13.44% 14.00%
Capital Required for Capital Adequacy $ 596,696 $ 507,507
Capital Required for Capital Adequacy to Risk Weighted Assets 8.00% 8.00%
Capital Required to be Well Capitalized $ 745,869 $ 634,384
Capital Required to be Well Capitalized to Risk Weighted Assets 10.00% 10.00%
v3.22.0.1
Comprehensive Income (Details) - Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Sale of investment securities available-for-sale Net gains (losses) on sale of investment securities $ (11,109) $ 7,005 $ 11,286
Sale of investment securities available-for-sale Income tax expense (2,914) 1,847 2,923
Net interest (expense)/income on swaps - Interest expense 1,900 1,600 700
Net interest (expense)/income on swaps Income tax expense 528 443 (190)
Net interest (expense) income on swaps 1,345 1,134 (487)
Total reclassification (4,201) 3,944 7,642
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 (losses) on sale of investment securities 195 29 (280)
Sale of investment securities available-for-sale Income tax expense (48) (6) 79
Sale of investment securities available-for-sale 147 23 (201)
Net interest (expense)/income on swaps - Interest expense (1,873) (1,577) 677
Net interest (expense)/income on swaps Income tax expense 528 443 (190)
Net interest (expense) income on swaps (1,345) (1,134) 487
Amortization of pension plan net actuarial gains/(losses) - Salaries and employee benefits (299) (301) (358)
Amortization of pension plan net actuarial gains/(losses) Income tax benefit 84 84 101
Amortization of pension plan net actuarial losses (215) (217) (257)
Total reclassification $ (1,413) $ (1,328) $ 29
v3.22.0.1
Comprehensive Income (Details) - Schedule of Accumulated Other Comprehensive Income (Loss) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]    
Investment securities available-for-sale, net of tax $ (484) $ 7,859
Cash flow hedge, net of tax 2,406 (1,520)
Defined benefit pension and post-retirement plans, net of tax (3,326) (3,542)
Total accumulated other comprehensive loss $ (1,404) $ 2,797
v3.22.0.1
Pension and Other Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
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 with Legacy ConnectOne. The benefits are based on years of service and the employee’s compensation over the prior five-year period. The plan’s benefits are payable in the form of a ten-year certain and life annuity. The plan is intended to be a tax-qualified defined benefit plan under Section 401(a) of the Internal Revenue Code. Payments may be made under the Pension Plan once attaining the normal retirement age of 65 and are generally equal to 44% of a participant’s highest average compensation over a 5-year period.    
Defined Benefit Plan, Effect of Settlements and Curtailments on Accumulated Benefit Obligation $ 14.6 $ 13.5  
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax 0.1    
Defined Benefit Plan, Contributions by Employer $ 1.6 1.6 $ 1.3
Defined Benefit Plan, Description of Plan Amendment 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%    
SERP compensation expense $ 1.0 $ 0.4  
v3.22.0.1
Pension and Other Benefits (Details) - Schedule of Changes in Projected Benefit Obligations - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Change in Benefit Obligation:      
Projected benefit obligation at beginning of year $ 13,476 $ 12,533  
Interest cost 284 364 $ 453
Actuarial loss 1,584 1,300  
Benefits paid (700) (721)  
Projected benefit obligation at end of year 14,644 13,476 12,533
Change in Plan Assets:      
Fair value of plan assets at beginning year 15,868 14,616  
Actual return on plan assets 2,436 1,973  
Employer contributions  
Benefits paid (700) (721)  
Fair value of plan assets at end of year 17,604 15,868 $ 14,616
Funded status $ 2,960 $ 2,392  
v3.22.0.1
Pension and Other Benefits (Details) - Component of Accumulated Other Comprehensive Loss have not been Recognized - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Retirement Benefits [Abstract]    
Net actuarial loss recognized in accumulated other comprehensive income $ 4,627 $ 4,926
v3.22.0.1
Pension and Other Benefits (Details) - Schedule of Net Periodic Pension Expense - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Retirement Benefits [Abstract]      
Interest cost $ 284 $ 364 $ 453
Expected return on plan assets (852) (784) (697)
Net amortization 299 301 358
Total net periodic pension expense (269) (119) 114
Total gain recognized in other comprehensive income (299) (190) (150)
Total recognized in net periodic expense and other comprehensive income (before tax) $ (568) $ (309) $ (36)
v3.22.0.1
Pension and Other Benefits (Details) - Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Retirement Benefits [Abstract]      
Discount rate 2.57% 2.17%  
Discount rate 2.57% 2.17% 2.99%
Expected long-term return on plan assets 5.50% 5.50% 5.50%
Rate of compensation increase
v3.22.0.1
Pension and Other Benefits (Details) - Schedule of Allocation of Plan Assets
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
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 45.00% 45.00%
% of Plan Assets 59.00% 55.00%
Weighted Average Expected Long-Term Rate of Return 3.20% 3.20%
International Equity Securities [Member]    
Equity Securities    
Target Allocation 15.00% 15.00%
% of Plan Assets 5.00% 6.00%
Weighted Average Expected Long-Term Rate of Return 1.30% 1.30%
Debt And Fixed Income Securities [Member]    
Equity Securities    
Target Allocation 38.00% 38.00%
% of Plan Assets 34.00% 35.00%
Weighted Average Expected Long-Term Rate of Return 0.90% 0.90%
Cash And Other Alternative Investments [Member]    
Equity Securities    
Target Allocation 2.00% 2.00%
% of Plan Assets 2.00% 4.00%
Weighted Average Expected Long-Term Rate of Return 0.10% 0.10%
v3.22.0.1
Pension and Other Benefits (Details) - Schedule of Changes in Fair Value of Plan Assets - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets $ 17,604 $ 15,868 $ 14,616
Fair Value, Inputs, Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 17,604 15,868  
Fair Value, Inputs, Level 2 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets  
Fair Value, Inputs, Level 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets  
Cash [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 178 406  
Cash [Member] | Fair Value, Inputs, Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 178 406  
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 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets  
Us Companies [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 10,551 8,737  
Us Companies [Member] | Fair Value, Inputs, Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 10,551 8,737  
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 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets  
International Companies [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 897 1,031  
International Companies [Member] | Fair Value, Inputs, Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 897 1,031  
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 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets  
Debt And Fixed Income Securities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 5,804 5,522  
Debt And Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 5,804 5,522  
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 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets  
Commodity funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 111 115  
Commodity funds [Member] | Fair Value, Inputs, Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 111 115  
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 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets  
Real Estate Fund [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 63 57  
Real Estate Fund [Member] | Fair Value, Inputs, Level 1 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets 63 57  
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 3 [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Pension Plan Assets  
v3.22.0.1
Pension and Other Benefits (Details) - Estimated Future Benefit Payments
$ in Thousands
Dec. 31, 2021
USD ($)
Retirement Benefits [Abstract]  
2022 $ 726
2023 708
2024 697
2025 697
2026 702
2027-2031 $ 3,682
v3.22.0.1
Stock Based Compensation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2017
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)      
Stock-based compensation expense $ 4.5 $ 2.9 $ 2.7  
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) 320,613      
Restricted Stock [Member]        
Unrecognized compensation cost related to nonvested shares $ 1.0      
Weighted average period related to compesation cost 1 year 1 month 6 days      
Performance unit shares to satisfy tax obligation created from vesting, net 34,458      
Shares issued as a result of net performance share issued to satisfy tax obligation 34,458      
Performance Shares [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) 14,711      
Unrecognized compensation cost related to nonvested shares $ 1.2      
Weighted average period related to compesation cost 1 year 7 months 6 days      
Performance unit shares to satisfy tax obligation created from vesting, net 14,710      
Non-vested restricted stock units [Member]        
Unrecognized compensation cost related to nonvested shares $ 1.1      
Weighted-average period 1 year 3 months 18 days      
v3.22.0.1
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, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]      
Outstanding Beginning Balance 38,013    
Granted    
Exercised (14,247) (35,413) (38,937)
Forfeited/cancelled/expired    
Outstanding Ending Balance 23,766 38,013  
Exercisable Ending Balance 23,766    
Outstanding Beginning Balance, Weighted-Average Exercise Price $ 9.03    
Granted, Weighted-Average Exercise Price    
Exercised, Weighted-Average Exercise Price 7.51    
Forfeited/cancelled/expired, Weighted-Average Exercise Price    
Outstanding Ending Balance, Weighted-Average Exercise Price 9.94 $ 9.03  
Exercisable Ending Balance, Weighted-Average Exercise Price $ 9.94    
Outstanding Ending Balance - Weighted average remaining contractual term (years) 7 months 6 days    
Exercisable Ending Balance - Weighted average remaining contractual term (years) 7 months 6 days    
Outstanding Ending Balance - Aggregate intrinsic value $ 541,000    
Exercisable Ending Balance - Aggregate intrinsic value $ 541,000    
v3.22.0.1
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Nonvested Shares
 12 Months Ended
Dec. 31, 2021
$ / shares
shares
Granted
Nonvested [Member]  
Nonvested at December 31, 2020 113,114
Granted 49,971
Vested (75,257)
Forfeited/cancelled/expired (5,135)
Nonvested at December 31, 2021 82,693
Outstanding, beginning balance | $ / shares $ 18.17
Granted | $ / shares 25.33
Vested | $ / shares 18.82
Forfeited/cancelled/expired | $ / shares 20.22
Outstanding, ending balance | $ / shares $ 21.78
v3.22.0.1
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Unearned Shares
 12 Months Ended
Dec. 31, 2021
$ / shares
shares
Outstanding Beginning Balance 38,013
Granted
Outstanding Ending Balance 23,766
Performance Unit Awards [Member]  
Outstanding Beginning Balance 147,636
Granted 37,543
Change in Estimate 65,389
Vested (29,421)
Forfeited/cancelled/expired (11,153)
Outstanding Ending Balance 209,994
Outstanding, beginning balance | $ / shares $ 17.29
Granted | $ / shares 25.24
Change in Estimate | $ / shares 15.46
Vested | $ / shares 31.35
Forfeited/cancelled/expired | $ / shares 17.06
Outstanding, ending balance | $ / shares $ 16.18
Performance Unit Awards [Member] | Maximum [Member]  
Outstanding Ending Balance 233,638
Unearned Restricted Stock Units [Member]  
Outstanding Beginning Balance 169,313
Granted 45,027
Vested (68,916)
Forfeited/cancelled/expired (8,476)
Outstanding Ending Balance 136,948
Outstanding, beginning balance | $ / shares $ 14.07
Granted | $ / shares 25.24
Vested | $ / shares 16.29
Forfeited/cancelled/expired | $ / shares 15.83
Outstanding, ending balance | $ / shares $ 16.52
v3.22.0.1
Dividends and Other Restrictions (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract]  
Available for payment of dividends $ 256.9
v3.22.0.1
Derivatives (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Mar. 03, 2020
Jan. 02, 2020
Apr. 13, 2017
Debt Instrument [Line Items]            
Notional Amount of Interest Rate Cash Flow Hedge Derivatives $ 400,000     $ 25,000 $ 25,000 $ 25,000
Interest expense on derivatives $ (1,900) $ (1,600) $ (700)      
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]            
Debt Instrument [Line Items]            
Federal Home Loan Bank advance Fixed-rates of interest 0.88%          
Expiration dates Jan. 31, 2022          
Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]            
Debt Instrument [Line Items]            
Federal Home Loan Bank advance Fixed-rates of interest 0.631%          
Expiration dates Dec. 31, 2025          
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]            
Debt Instrument [Line Items]            
Federal Home Loan Bank advance Fixed-rates of interest 1.93%          
Expiration dates Apr. 30, 2022          
Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]            
Debt Instrument [Line Items]            
Federal Home Loan Bank advance Fixed-rates of interest 1.23%          
Expiration dates Mar. 31, 2028          
v3.22.0.1
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, 2021
Dec. 31, 2020
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) $ 3,593 $ (3,423)
Amount of (gain) loss reclassified from OCI to interest expense 1,873 1,577
Amount of gain (loss) recognized in other Noninterest income (Ineffective Portion)
v3.22.0.1
Derivatives (Details) - Summary of interest rate swap designated as a cash flow hedges - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Notional amount $ 475,000 $ 175,000
Fair value $ 3,347 $ (2,119)
v3.22.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Impaired Financing Receivable, with Related Allowance, Recorded Investment   $ 26,458
Impaired Financing Receivable, Related Allowance $ 16,217 14,314
Impaired Loans [Member]    
Impaired Financing Receivable, with Related Allowance, Recorded Investment 54,100 26,500
Impaired Financing Receivable, Related Allowance $ 17,800 $ 14,300
v3.22.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a recurring basis - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Available-for-sale:    
Securities available-for-sale $ 534,507 $ 487,955
Derivatives 3,347  
Liabilities    
Derivatives   2,119
Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale 195 157
Liabilities    
Derivatives  
Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 525,747 478,954
Liabilities    
Derivatives   2,119
Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale 8,565 8,844
Liabilities    
Derivatives  
Federal agency obligations [Member]    
Available-for-sale:    
Securities available-for-sale 50,360 38,458
Residential mortgage pass-through securities [Member]    
Available-for-sale:    
Securities available-for-sale 316,095 270,884
Commercial mortgage pass-through securities [Member]    
Available-for-sale:    
Securities available-for-sale 10,469 6,922
Obligations of U.S. states and political subdivisions [Member]    
Available-for-sale:    
Securities available-for-sale 145,625 142,808
Corporate Bonds and Notes [Member]    
Available-for-sale:    
Securities available-for-sale 9,049 25,095
Asset-backed securities [Member]    
Available-for-sale:    
Securities available-for-sale 2,564 3,480
Certificates of deposit [Member]    
Available-for-sale:    
Securities available-for-sale 150 151
Other securities [Member]    
Available-for-sale:    
Securities available-for-sale 195 157
Recurring [Member]    
Available-for-sale:    
Securities available-for-sale 534,507 487,955
Equity securities 13,794 13,387
Derivatives 3,347  
Total assets 551,648 501,343
Liabilities    
Derivatives   (2,119)
Total liabilities   (2,119)
Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale 195 157
Equity securities 11,081 13,387
Derivatives  
Total assets 11,276 13,544
Liabilities    
Derivatives  
Total liabilities  
Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 525,747 478,954
Equity securities 2,713
Derivatives 3,347  
Total assets 531,807 478,954
Liabilities    
Derivatives   (2,119)
Total liabilities   (2,119)
Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale 8,565 8,844
Equity securities
Derivatives  
Total assets 8,565 8,844
Liabilities    
Derivatives  
Total liabilities  
Recurring [Member] | Federal agency obligations [Member]    
Available-for-sale:    
Securities available-for-sale 50,360 38,458
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 50,360 38,458
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Residential mortgage pass-through securities [Member]    
Available-for-sale:    
Securities available-for-sale 316,095 270,884
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 316,095 270,884
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Commercial mortgage pass-through securities [Member]    
Available-for-sale:    
Securities available-for-sale 10,469 6,922
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 10,469 6,922
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member]    
Available-for-sale:    
Securities available-for-sale 145,625 142,808
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 137,060 133,964
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale 8,565 8,844
Recurring [Member] | Corporate Bonds and Notes [Member]    
Available-for-sale:    
Securities available-for-sale 9,049 25,095
Recurring [Member] | Corporate Bonds and Notes [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Corporate Bonds and Notes [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 9,049 25,095
Recurring [Member] | Corporate Bonds and Notes [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Asset-backed securities [Member]    
Available-for-sale:    
Securities available-for-sale 2,564 3,480
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 2,564 3,480
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Certificates of deposit [Member]    
Available-for-sale:    
Securities available-for-sale 150 151
Recurring [Member] | Other securities [Member]    
Available-for-sale:    
Securities available-for-sale 195 157
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale 195 157
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 150 151
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
v3.22.0.1
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, 2021
Dec. 31, 2020
Commercial Portfolio Segment [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value $ 12,193 $ 10,524
Commercial Real Estate [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 20,185 1,393
Residential [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 2,794  
Fair Value, Nonrecurring [Member] | Commercial Portfolio Segment [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 13,399 10,751
Fair Value, Nonrecurring [Member] | Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value
Fair Value, Nonrecurring [Member] | Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value
Fair Value, Nonrecurring [Member] | Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 13,399 10,751
Fair Value, Nonrecurring [Member] | Commercial Real Estate [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 20,185 1,393
Fair Value, Nonrecurring [Member] | Commercial Real Estate [Member] | Fair Value, Inputs, Level 1 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value
Fair Value, Nonrecurring [Member] | Commercial Real Estate [Member] | Fair Value, Inputs, Level 2 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value
Fair Value, Nonrecurring [Member] | Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 20,185 $ 1,393
Fair Value, Nonrecurring [Member] | Residential [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 2,794  
Fair Value, Nonrecurring [Member] | Residential [Member] | Fair Value, Inputs, Level 1 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value  
Fair Value, Nonrecurring [Member] | Residential [Member] | Fair Value, Inputs, Level 2 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value  
Fair Value, Nonrecurring [Member] | Residential [Member] | Fair Value, Inputs, Level 3 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value $ 2,794  
v3.22.0.1
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, 2021
Dec. 31, 2020
Balance of recurring Level 3 assets at January 1 $ 8,844 $ 9,114
Principal paydowns (279) (270)
Balance of recurring Level 3 assets At December 31 $ 8,565 $ 8,844
v3.22.0.1
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, 2021
Dec. 31, 2020
Fair value $ 8,565 $ 8,844
Valuation Techniques Discounted cash flows Discounted cash flows
Unobservable Input Discount rate Discount rate
Range 2.90% 2.90%
v3.22.0.1
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, 2021
Dec. 31, 2020
Commercial Portfolio Segment [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 $ 12,193 $ 10,524
Valuation Technique Market approach (100%) Market approach (100%)
Unobservable Inputs Average transfer price as a price to unpaid principal balance Average transfer price as a price to unpaid principal balance
Commercial Portfolio Segment [Member] | Market approach [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 (49.00%) (49.00%)
Commercial Portfolio Segment [Member] | Market approach [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 48.00% 48.00%
Commercial Portfolio Segment [Member] | Market approach [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 73.00% 53.00%
Commercial Portfolio Segment1 [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 $ 1,206 $ 227
Valuation Technique Appraisals of collateral value Appraisals of collateral value
Unobservable Inputs Adjustment for comparable sales Adjustment for comparable sales
Commercial Portfolio Segment1 [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 6.00% 2.00%
Commercial Portfolio Segment1 [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 (10.00%) 1.00%
Commercial Portfolio Segment1 [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 35.00% 5.00%
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 $ 20,185 $ 1,393
Valuation Technique Appraisals of collateral value Appraisals of collateral value
Unobservable Inputs Adjustment for comparable sales Adjustment for 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 (6.00%) (8.00%)
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 (20.00%) (25.00%)
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 15.00% 20.00%
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 $ 2,794  
Valuation Technique Appraisals of collateral value  
Unobservable Inputs Adjustment for 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 (15.00%)  
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 39.00%  
v3.22.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value hierarchy - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Financial assets        
Cash and due from banks, Carrying Amount $ 265,536 $ 303,756 $ 201,483 $ 172,366
Cash and due from banks, Fair Value 265,536 303,756    
Investment securities available-for-sale, Carrying Amount 534,507 487,955    
Investment Securities Available-for-Sale, Fair Value 534,507 487,955    
Restricted investment in bank stocks, Carrying Amount 27,826 25,099    
Restricted investment in bank stocks, Fair Value    
Equity securities, Carrying Amount 13,794 13,387    
Equity securities, Fair Value 13,794 13,387    
Net loans, Carrying Amount 6,749,849 6,157,081    
Net loans, Fair Value 6,800,287 6,244,037    
Derivatives, Carrying Amount 3,347      
Derivatives, Fair Value 3,347      
Accrued interest receivable, Carrying Amount 34,152 35,317    
Accrued interest receivable, Fair Value 34,152 35,317    
Financial liabilities        
Noninterest-bearing deposits, Carrying Amount 1,617,049 1,339,108    
Noninterest-bearing deposits, Fair Value 1,617,049 1,339,108    
Interest-bearing deposits, Carrying Amount 4,715,904 4,620,116    
Interest-bearing deposits, Fair Value 4,716,358 4,633,961    
Borrowings, Carrying Amount 468,193 425,954    
Borrowings, Fair Value 469,671 429,671    
Subordinated debentures, Carrying Amount 152,951 202,648    
Subordinated debentures, Fair Value 163,995 214,113    
Derivatives, Carrying Amount   2,119    
Derivatives, Fair Value   2,119    
Accrued interest payable, Carrying Amount 2,716 3,687    
Accrued interest payable, Fair Value 2,716 3,687    
Fair Value, Inputs, Level 1 [Member]        
Financial assets        
Cash and due from banks, Fair Value 265,536 303,756    
Investment Securities Available-for-Sale, Fair Value 195 157    
Restricted investment in bank stocks, Fair Value    
Equity securities, Fair Value 11,081 13,387    
Net loans, Fair Value    
Derivatives, Fair Value      
Accrued interest receivable, Fair Value    
Financial liabilities        
Noninterest-bearing deposits, Fair Value 1,617,049 1,339,108    
Interest-bearing deposits, Fair Value 3,565,795 3,155,983    
Borrowings, Fair Value    
Subordinated debentures, Fair Value    
Derivatives, 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 525,747 478,954    
Restricted investment in bank stocks, Fair Value    
Equity securities, Fair Value 2,713    
Net loans, Fair Value    
Derivatives, Fair Value 3,347      
Accrued interest receivable, Fair Value 1,554 1,764    
Financial liabilities        
Noninterest-bearing deposits, Fair Value    
Interest-bearing deposits, Fair Value 1,150,563 1,477,978    
Borrowings, Fair Value 469,671 429,671    
Subordinated debentures, Fair Value 163,995 214,113    
Derivatives, Fair Value   2,119    
Accrued interest payable, Fair Value 2,716 3,687    
Fair Value, Inputs, Level 3 [Member]        
Financial assets        
Cash and due from banks, Fair Value    
Investment Securities Available-for-Sale, Fair Value 8,565 8,844    
Restricted investment in bank stocks, Fair Value    
Equity securities, Fair Value    
Net loans, Fair Value 6,800,287 6,244,037    
Derivatives, Fair Value      
Accrued interest receivable, Fair Value 32,598 33,553    
Financial liabilities        
Noninterest-bearing deposits, Fair Value    
Interest-bearing deposits, Fair Value    
Borrowings, Fair Value    
Subordinated debentures, Fair Value    
Derivatives, Fair Value      
Accrued interest payable, Fair Value    
v3.22.0.1
Parent Corporation Only Financial Statements (Details) - Condensed Statements of Condition - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
ASSETS    
Cash and cash equivalents $ 54,352 $ 63,637
Investment securities 534,507 487,955
Equity securities 13,794 13,387
Other assets 50,417 88,458
Total assets 8,129,480 7,547,339
LIABILITIES AND STOCKHOLDERS' EQUITY    
Other liabilities 38,754 26,177
Subordinated debentures, net 152,951 202,648
Stockholders' equity 1,124,212 915,310
Total liabilities and stockholders' equity 8,129,480 7,547,339
Parent Company [Member]    
ASSETS    
Cash and cash equivalents 133,648 34,388
Investment in subsidiaries 1,111,520 1,001,998
Investment securities 32,405 32,405
Equity securities 725
Other assets 699 51,288
Total assets 1,278,997 1,120,079
LIABILITIES AND STOCKHOLDERS' EQUITY    
Other liabilities 1,834 2,121
Subordinated debentures, net 152,951 202,648
Stockholders' equity 1,124,212 915,310
Total liabilities and stockholders' equity $ 1,278,997 $ 1,120,079
v3.22.0.1
Parent Corporation Only Financial Statements (Details) - Condensed Statements of Income - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income:                      
Dividend income from subsidiaries                 $ 971 $ 1,642 $ 1,778
Net Income $ 33,038 $ 32,097 $ 32,219 $ 32,999 $ 25,641 $ 24,786 $ 14,832 $ 6,030 130,353 71,289 73,395
Preferred dividends 1,717         1,717
Net income available to common stockholders $ 31,321 $ 32,097 $ 32,219 $ 32,999         128,636 71,289 73,395
Parent Company [Member]                      
Income:                      
Dividend income from subsidiaries                 24,071 15,200 30,050
Other income                 1,627 1,683 1,652
Total Income                 25,698 16,883 31,702
Expenses                 (8,741) (9,263) (7,386)
Income before equity in undistributed earnings of subsidiaries                 16,957 7,620 24,316
Equity in undistributed earnings of subsidiaries                 113,396 63,669 49,079
Net Income                 130,353 71,289 73,395
Preferred dividends                 1,717
Net income available to common stockholders                 $ 128,636 $ 71,289 $ 73,395
v3.22.0.1
Parent Corporation Only Financial Statements (Details) - Condensed Statements of Cash Flows - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
Aug. 19, 2021
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities:                        
Net income   $ 33,038 $ 32,097 $ 32,219 $ 32,999 $ 25,641 $ 24,786 $ 14,832 $ 6,030 $ 130,353 $ 71,289 $ 73,395
Adjustments to reconcile net income to net cash provided by operating activities:                        
Loss on equity securities, net                   373 (202) (294)
Amortization of subordinated debt issuance costs                   303 323 329
Decrease (increase) in other assets                   46,086 (22,498) (22,619)
(Decrease) increase in other liabilities                   10,526 (4,174) (2,785)
Net cash provided by operating activities                   202,273 81,125 60,688
Cash flows from investing activities:                        
Sales of available-for-sale securities                   19,624 183,728
Purchase of equity securities                   780 2,000
Sale of equity securities                   569
Net cash used in investing activities                   (689,860) (323,365) (102,467)
Cash flows from financing activities:                        
Cash dividends paid on preferred stock                   1,717
Cash dividends paid on common stock                   (17,493) (14,317) (12,160)
Purchase of treasury stock                   (9,401) (911) (12,643)
Proceeds from preferred stock offering $ 110,900                 110,927
Proceeds from exercise of stock options                   106 233 360
Net cash provided by financing activities                   449,367 344,513 70,896
Cash and cash equivalents at beginning of period         303,756       201,483 303,756 201,483 172,366
Cash and cash equivalents at end of period   265,536       303,756       265,536 303,756 201,483
Parent Company [Member]                        
Cash flows from operating activities:                        
Net income                   130,353 71,289 73,395
Adjustments to reconcile net income to net cash provided by operating activities:                        
Equity in undistributed earnings of subsidiary                   (113,396) (63,669) (49,079)
Loss on equity securities, net                   55 38
Amortization of subordinated debt issuance costs                   303 323 329
Decrease (increase) in other assets                   50,590 (50,001)
(Decrease) increase in other liabilities                   (287) (391) (1,509)
Net cash provided by operating activities                   67,618 (42,449) 23,174
Cash flows from investing activities:                        
Purchase of available-for-sale securities                   (2)
Sales of available-for-sale securities                   23
Purchase of equity securities                   (780)
Sale of equity securities                   569
Repayment of short-term borrowing                   (3,000)
Capital infusion to subsidiary                  
Net cash used in investing activities                   (780) (3,000) 590
Cash flows from financing activities:                        
(Repayment of) proceeds from subordinated debt                   (50,000) 73,440
Cash dividends paid on preferred stock                   (1,717)
Cash dividends paid on common stock                   (17,493) (14,317) (12,160)
Purchase of treasury stock                   (9,401) (911) (12,643)
Proceeds from preferred stock offering                   110,927
Proceeds from exercise of stock options                   106 233 360
Net cash provided by financing activities                   32,422 58,445 (24,443)
Increase (decrease) in cash and cash equivalents                   99,260 12,996 (679)
Cash and cash equivalents at beginning of period         $ 34,388       $ 21,392 34,388 21,392 22,071
Cash and cash equivalents at end of period   $ 133,648       $ 34,388       $ 133,648 $ 34,388 $ 21,392
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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, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]                      
Total interest income $ 79,040 $ 77,026 $ 73,051 $ 72,621 $ 75,588 $ 77,221 $ 78,677 $ 76,714 $ 301,738 $ 308,200 $ 271,484
Total interest expense 8,579 8,781 10,042 11,458 14,217 16,672 17,887 21,433 38,860 70,209 85,165
Net interest income 70,461 68,245 63,009 61,163 61,371 60,549 60,790 55,281 262,878 237,991 186,319
Provision for credit losses 815 1,100 (1,649) (5,766) 5,000 5,000 15,000 16,000 (5,018) 41,000 8,100
Total other income, net of securities gains 3,777 4,016 4,472 3,426 3,442 3,483 4,621 2,854      
Other expenses 28,084 28,183 26,259 26,485 26,402 26,478 33,063 35,058      
Income before income taxes 45,339 42,978 42,871 43,870 33,411 32,554 17,348 7,077 175,058 90,390 94,026
Income tax expense 12,301 10,881 10,652 10,871 7,770 7,768 2,516 1,047 44,705 19,101 20,631
Net income 33,038 32,097 32,219 32,999 $ 25,641 $ 24,786 $ 14,832 $ 6,030 130,353 71,289 73,395
Preferred dividends 1,717         1,717
Net income available to common stockholders $ 31,321 $ 32,097 $ 32,219 $ 32,999         $ 128,636 $ 71,289 $ 73,395
Earnings per share:                      
Basic (in Dollars per share) $ 0.79 $ 0.81 $ 0.81 $ 0.83 $ 0.64 $ 0.62 $ 0.37 $ 0.15 $ 3.24 $ 1.80 $ 2.08
Diluted (in Dollars per share) $ 0.79 $ 0.80 $ 0.81 $ 0.82 $ 0.64 $ 0.62 $ 0.37 $ 0.15 $ 3.22 $ 1.79 $ 2.07