Document
false--12-31Q320190001594012P2Y3931000003931000000.090.270.110.330.010.01100000000010000000003590708523590708522862731142747564215393100000155856400011587690002007000001933000000.010.011000000001000000000000000P3Y468760007198216875000002345919829460003689461782205000193153872797738843144316891729000144779652004717000 0001594012 2019-01-01 2019-09-30 0001594012 2019-11-08 0001594012 2019-09-30 0001594012 2018-12-31 0001594012 2019-07-01 2019-09-30 0001594012 2018-01-01 2018-09-30 0001594012 2018-07-01 2018-09-30 0001594012 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-09-30 0001594012 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001594012 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001594012 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001594012 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001594012 us-gaap:RetainedEarningsMember 2019-01-01 2019-09-30 0001594012 us-gaap:RetainedEarningsMember 2019-09-30 0001594012 us-gaap:TreasuryStockMember 2018-09-30 0001594012 us-gaap:TreasuryStockMember 2018-01-01 2018-09-30 0001594012 isbc:UnallocatedCommonStockHeldByEsopMember 2018-01-01 2018-09-30 0001594012 us-gaap:TreasuryStockMember 2019-01-01 2019-09-30 0001594012 us-gaap:RetainedEarningsMember 2017-12-31 0001594012 isbc:UnallocatedCommonStockHeldByEsopMember 2019-09-30 0001594012 isbc:UnallocatedCommonStockHeldByEsopMember 2018-09-30 0001594012 us-gaap:RetainedEarningsMember 2018-01-01 0001594012 us-gaap:TreasuryStockMember 2019-09-30 0001594012 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-09-30 0001594012 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001594012 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-09-30 0001594012 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001594012 us-gaap:CommonStockMember 2017-12-31 0001594012 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-09-30 0001594012 us-gaap:RetainedEarningsMember 2018-01-01 2018-09-30 0001594012 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001594012 us-gaap:RetainedEarningsMember 2018-09-30 0001594012 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 0001594012 us-gaap:CommonStockMember 2019-09-30 0001594012 isbc:UnallocatedCommonStockHeldByEsopMember 2018-12-31 0001594012 isbc:UnallocatedCommonStockHeldByEsopMember 2019-01-01 2019-09-30 0001594012 2018-09-30 0001594012 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001594012 us-gaap:CommonStockMember 2018-09-30 0001594012 us-gaap:TreasuryStockMember 2017-12-31 0001594012 2017-12-31 0001594012 us-gaap:CommonStockMember 2018-12-31 0001594012 us-gaap:RetainedEarningsMember 2018-12-31 0001594012 us-gaap:TreasuryStockMember 2018-12-31 0001594012 isbc:UnallocatedCommonStockHeldByEsopMember 2017-12-31 0001594012 2018-10-25 2018-10-25 0001594012 2018-10-25 0001594012 us-gaap:RestrictedStockMember 2019-01-01 2019-09-30 0001594012 isbc:GoldCoastBancorpInc.Member 2019-07-24 0001594012 isbc:GoldCoastBancorpInc.Member 2019-09-30 0001594012 isbc:EverbankPortfolioMember 2018-02-02 2018-02-02 0001594012 isbc:EverbankPortfolioMember 2018-02-02 0001594012 us-gaap:StockCompensationPlanMember 2018-07-01 2018-09-30 0001594012 us-gaap:StockCompensationPlanMember 2019-01-01 2019-09-30 0001594012 us-gaap:StockCompensationPlanMember 2019-07-01 2019-09-30 0001594012 us-gaap:StockCompensationPlanMember 2018-01-01 2018-09-30 0001594012 us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2019-09-30 0001594012 us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2019-09-30 0001594012 us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2019-09-30 0001594012 us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2018-12-31 0001594012 us-gaap:HeldtomaturitySecuritiesMember 2018-12-31 0001594012 us-gaap:DebtSecuritiesMember 2018-12-31 0001594012 us-gaap:MunicipalBondsMember 2018-12-31 0001594012 us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2018-12-31 0001594012 us-gaap:MortgageBackedSecuritiesMember 2018-12-31 0001594012 us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2018-12-31 0001594012 isbc:CorporateAndOtherDebtSecuritiesMember 2018-12-31 0001594012 us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2018-12-31 0001594012 us-gaap:DebtSecuritiesMember 2019-09-30 0001594012 us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2019-09-30 0001594012 us-gaap:HeldtomaturitySecuritiesMember 2019-09-30 0001594012 isbc:CorporateAndOtherDebtSecuritiesMember 2019-09-30 0001594012 us-gaap:MortgageBackedSecuritiesMember 2019-09-30 0001594012 us-gaap:MunicipalBondsMember 2019-09-30 0001594012 srt:RestatementAdjustmentMember isbc:AccountingStandardsUpdate201904Member 2019-06-30 0001594012 us-gaap:ExternalCreditRatingNonInvestmentGradeMember isbc:CorporateAndOtherDebtSecuritiesMember 2019-09-30 0001594012 2018-04-01 2018-06-30 0001594012 isbc:TruPSecurityMember isbc:CorporateAndOtherDebtSecuritiesMember 2019-09-30 0001594012 isbc:CorporateAndOtherDebtSecuritiesMember 2019-07-01 2019-09-30 0001594012 isbc:DebtSecuritiesOtherthanSecuritiesPledgedMember 2019-09-30 0001594012 2019-06-30 0001594012 2018-06-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-07-01 2018-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ResidentialAndConsumerMember 2018-07-01 2018-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-07-01 2018-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2019-07-01 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember 2019-07-01 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ResidentialAndConsumerMember 2019-07-01 2019-09-30 0001594012 srt:MinimumMember us-gaap:PerformingFinancingReceivableMember 2019-01-01 2019-09-30 0001594012 isbc:SubstandardResidentialMember 2019-01-01 2019-09-30 0001594012 isbc:PurchasedCreditImpairedLoansMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2019-09-30 0001594012 srt:MaximumMember 2018-01-01 2018-12-31 0001594012 isbc:CollateralDependentTdrsMember 2018-07-01 2018-09-30 0001594012 isbc:PurchasedCreditImpairedLoansMember 2019-09-30 0001594012 srt:MaximumMember 2019-01-01 2019-09-30 0001594012 srt:MaximumMember isbc:SpecialMentionResidentialMember 2019-01-01 2019-09-30 0001594012 srt:MinimumMember isbc:SpecialMentionResidentialMember 2019-01-01 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-01-01 2018-09-30 0001594012 isbc:CollateralDependentTdrsMember 2018-01-01 2018-09-30 0001594012 isbc:PurchasedCreditImpairedLoansMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2019-01-01 2019-09-30 0001594012 isbc:CollateralDependentTdrsMember 2019-01-01 2019-09-30 0001594012 isbc:FinancingReceivables30to89DaysPastDueMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember 2018-01-01 2018-09-30 0001594012 isbc:CommercialRealEstateConstructionAndMultiFamilyMember 2019-09-30 0001594012 us-gaap:ResidentialMortgageMember 2019-01-01 2019-09-30 0001594012 isbc:PurchasedCreditImpairedLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001594012 isbc:PurchasedCreditImpairedLoansMember isbc:FinancingReceivables30to89DaysPastDueMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember 2019-01-01 2019-09-30 0001594012 isbc:PurchasedCreditImpairedLoansMember us-gaap:ResidentialMortgageMember 2019-01-01 2019-09-30 0001594012 us-gaap:CommercialLoanMember 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-01-01 2018-09-30 0001594012 2018-01-01 2018-12-31 0001594012 isbc:PurchasedCreditImpairedLoansMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2018-12-31 0001594012 srt:MinimumMember 2019-01-01 2019-09-30 0001594012 isbc:CollateralDependentTdrsMember 2019-09-30 0001594012 srt:MaximumMember us-gaap:PerformingFinancingReceivableMember 2019-01-01 2019-09-30 0001594012 srt:MinimumMember 2018-01-01 2018-12-31 0001594012 isbc:PurchasedCreditImpairedLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001594012 isbc:CollateralDependentTdrsMember 2019-07-01 2019-09-30 0001594012 isbc:CollateralDependentTdrsMember 2018-12-31 0001594012 isbc:PurchasedCreditImpairedLoansMember isbc:FinancingReceivables30to89DaysPastDueMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember 2018-12-31 0001594012 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember 2018-12-31 0001594012 us-gaap:UnallocatedFinancingReceivablesMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-01-01 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2017-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-01-01 2018-12-31 0001594012 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-12-31 0001594012 us-gaap:UnallocatedFinancingReceivablesMember 2018-01-01 2018-12-31 0001594012 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember 2018-12-31 0001594012 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-12-31 0001594012 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:UnallocatedFinancingReceivablesMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-12-31 0001594012 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember 2018-01-01 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2017-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember 2017-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember 2018-01-01 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-01-01 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember 2017-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember 2018-01-01 2018-12-31 0001594012 us-gaap:UnallocatedFinancingReceivablesMember 2017-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember 2017-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember 2017-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2018-01-01 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2019-01-01 2019-09-30 0001594012 us-gaap:FinancingReceivables1To29DaysPastDueMember 2019-01-01 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2018-01-01 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2018-01-01 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2018-12-31 0001594012 us-gaap:FinancingReceivables1To29DaysPastDueMember 2018-01-01 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2019-01-01 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2019-01-01 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2018-01-01 2018-12-31 0001594012 us-gaap:FinancingReceivables1To29DaysPastDueMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2019-01-01 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables1To29DaysPastDueMember 2018-12-31 0001594012 us-gaap:FinancingReceivables1To29DaysPastDueMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ResidentialAndConsumerMember 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember 2019-09-30 0001594012 isbc:FinancingReceivables30to89DaysPastDueMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember isbc:FinancingReceivables30to89DaysPastDueMember 2019-01-01 2019-09-30 0001594012 isbc:FinancingReceivables30to89DaysPastDueMember 2019-01-01 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember isbc:FinancingReceivables30to89DaysPastDueMember 2018-01-01 2018-12-31 0001594012 isbc:FinancingReceivables30to89DaysPastDueMember 2018-01-01 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember isbc:FinancingReceivables30to89DaysPastDueMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember isbc:FinancingReceivables30to89DaysPastDueMember 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember 2018-01-01 2018-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember 2019-01-01 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ResidentialAndConsumerMember 2019-01-01 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ResidentialAndConsumerMember 2018-01-01 2018-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember 2019-01-01 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember 2019-01-01 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2019-01-01 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ResidentialAndConsumerMember 2018-01-01 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ResidentialAndConsumerMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember 2018-01-01 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember 2019-09-30 0001594012 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember 2019-09-30 0001594012 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember 2019-09-30 0001594012 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember 2019-09-30 0001594012 us-gaap:UnallocatedFinancingReceivablesMember 2019-09-30 0001594012 us-gaap:UnallocatedFinancingReceivablesMember 2019-01-01 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember 2019-09-30 0001594012 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember 2019-09-30 0001594012 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:UnallocatedFinancingReceivablesMember 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember 2019-01-01 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember 2019-09-30 0001594012 us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:SpecialMentionMember 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember 2019-09-30 0001594012 us-gaap:PassMember 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:PassMember 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:SubstandardMember 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:PassMember 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:PassMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:PerformingFinancingReceivableMember 2019-09-30 0001594012 us-gaap:SubstandardMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:DoubtfulMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:DoubtfulMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:SpecialMentionMember 2019-09-30 0001594012 us-gaap:PerformingFinancingReceivableMember 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:SubstandardMember 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:SpecialMentionMember 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2019-09-30 0001594012 us-gaap:SpecialMentionMember 2019-09-30 0001594012 us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:PerformingFinancingReceivableMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:DoubtfulMember 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2019-09-30 0001594012 us-gaap:DoubtfulMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:SubstandardMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:PerformingFinancingReceivableMember 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001594012 us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001594012 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001594012 us-gaap:FinancingReceivables60To89DaysPastDueMember 2019-09-30 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2019-09-30 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2018-12-31 0001594012 us-gaap:PassMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2018-12-31 0001594012 us-gaap:SubstandardMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:DoubtfulMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:PerformingFinancingReceivableMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:DoubtfulMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:SpecialMentionMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:SubstandardMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2018-12-31 0001594012 us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:UnlikelyToBeCollectedFinancingReceivableMember 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember 2018-12-31 0001594012 us-gaap:PerformingFinancingReceivableMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:PassMember 2018-12-31 0001594012 us-gaap:DoubtfulMember 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PerformingFinancingReceivableMember 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SubstandardMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:SubstandardMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:SpecialMentionMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:PerformingFinancingReceivableMember 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:PassMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:DoubtfulMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:SpecialMentionMember 2018-12-31 0001594012 us-gaap:SpecialMentionMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:PassMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:DoubtfulMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:PerformingFinancingReceivableMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:SubstandardMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:PassMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:SpecialMentionMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember us-gaap:ResidentialMortgageMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001594012 us-gaap:CommercialAndIndustrialSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001594012 srt:RetailSiteMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001594012 us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001594012 srt:MultifamilyMember us-gaap:RealEstateSectorMember us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001594012 us-gaap:ConsumerPortfolioSegmentMember isbc:ConsumerAndOtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:ConstructionLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001594012 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-12-31 0001594012 us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001594012 us-gaap:CommercialPortfolioSegmentMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-12-31 0001594012 isbc:PurchasedCreditImpairedLoansMember us-gaap:ResidentialMortgageMember 2018-01-01 2018-12-31 0001594012 us-gaap:OtherIntangibleAssetsMember 2018-12-31 0001594012 us-gaap:ServicingContractsMember 2019-09-30 0001594012 us-gaap:CoreDepositsMember 2018-12-31 0001594012 us-gaap:CoreDepositsMember 2019-09-30 0001594012 us-gaap:OtherIntangibleAssetsMember 2019-09-30 0001594012 us-gaap:ServicingContractsMember 2018-12-31 0001594012 us-gaap:CoreDepositsMember 2019-01-01 2019-09-30 0001594012 srt:MaximumMember 2019-09-30 0001594012 us-gaap:RestrictedStockMember 2018-12-31 0001594012 us-gaap:RestrictedStockMember 2019-09-30 0001594012 us-gaap:StockOptionMember isbc:TheReplacementAwardsMember 2019-07-22 0001594012 srt:MinimumMember isbc:TwentyFifteenEquityIncentivePlanMember 2015-06-09 2015-06-09 0001594012 us-gaap:StockOptionMember isbc:TwentyFifteenEquityIncentivePlanMember 2015-06-09 0001594012 us-gaap:RestrictedStockMember 2018-01-01 2018-12-31 0001594012 srt:MaximumMember isbc:TwentyFifteenEquityIncentivePlanMember 2015-06-09 2015-06-09 0001594012 us-gaap:StockOptionMember isbc:TwentyFifteenEquityIncentivePlanMember 2015-06-09 2015-06-09 0001594012 srt:ChiefExecutiveOfficerMember us-gaap:StockOptionMember isbc:TheReplacementAwardsMember 2019-05-20 0001594012 isbc:TwentyFifteenEquityIncentivePlanMember 2015-06-09 0001594012 us-gaap:StockOptionMember isbc:TheReplacementAwardsMember 2019-07-22 2019-07-22 0001594012 srt:ChiefExecutiveOfficerMember 2019-06-21 2019-06-21 0001594012 us-gaap:RestrictedStockMember isbc:TheReplacementAwardsMember 2019-07-22 2019-07-22 0001594012 srt:PresidentMember us-gaap:RestrictedStockMember 2019-06-21 2019-06-21 0001594012 srt:ChiefExecutiveOfficerMember us-gaap:RestrictedStockMember 2019-06-21 2019-06-21 0001594012 srt:ChiefExecutiveOfficerMember us-gaap:RestrictedStockMember isbc:TheReplacementAwardsMember 2019-05-20 0001594012 srt:PresidentMember us-gaap:StockOptionMember isbc:TheReplacementAwardsMember 2019-05-20 0001594012 srt:PresidentMember us-gaap:RestrictedStockMember isbc:TheReplacementAwardsMember 2019-05-20 0001594012 isbc:NonEmployeeDirectorsAndNonDirectorsMember us-gaap:RestrictedStockMember 2019-06-21 2019-06-21 0001594012 us-gaap:RestrictedStockMember 2018-01-01 2018-09-30 0001594012 us-gaap:RestrictedStockMember 2019-07-01 2019-09-30 0001594012 srt:PresidentMember 2019-06-21 2019-06-21 0001594012 us-gaap:RestrictedStockMember isbc:TwentyFifteenEquityIncentivePlanMember 2015-06-09 0001594012 us-gaap:InterestRateSwapMember 2019-09-30 0001594012 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-09-30 0001594012 us-gaap:OtherContractMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-01-01 2018-09-30 0001594012 us-gaap:OtherContractMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-07-01 2019-09-30 0001594012 us-gaap:OtherContractMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-07-01 2018-09-30 0001594012 us-gaap:OtherContractMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-01-01 2019-09-30 0001594012 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:InterestIncomeMember 2019-01-01 2019-09-30 0001594012 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember 2019-01-01 2019-09-30 0001594012 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-07-01 2018-09-30 0001594012 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2018-01-01 2018-09-30 0001594012 us-gaap:InterestRateContractMember 2019-01-01 2019-09-30 0001594012 us-gaap:InterestRateContractMember 2018-07-01 2018-09-30 0001594012 us-gaap:InterestRateContractMember 2019-07-01 2019-09-30 0001594012 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:InterestIncomeMember 2018-07-01 2018-09-30 0001594012 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:InterestIncomeMember 2019-07-01 2019-09-30 0001594012 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember 2018-01-01 2018-09-30 0001594012 us-gaap:InterestRateContractMember 2018-01-01 2018-09-30 0001594012 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember 2019-07-01 2019-09-30 0001594012 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2019-07-01 2019-09-30 0001594012 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2019-01-01 2019-09-30 0001594012 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2018-07-01 2018-09-30 0001594012 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:InterestIncomeMember 2018-01-01 2018-09-30 0001594012 us-gaap:OtherAssetsMember us-gaap:OtherContractMember us-gaap:NondesignatedMember 2018-12-31 0001594012 us-gaap:OtherLiabilitiesMember us-gaap:OtherContractMember us-gaap:NondesignatedMember 2018-12-31 0001594012 us-gaap:OtherLiabilitiesMember us-gaap:OtherContractMember us-gaap:NondesignatedMember 2019-09-30 0001594012 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001594012 us-gaap:OtherAssetsMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001594012 us-gaap:OtherLiabilitiesMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001594012 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001594012 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:NondesignatedMember 2018-12-31 0001594012 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:NondesignatedMember 2019-09-30 0001594012 us-gaap:OtherLiabilitiesMember us-gaap:NondesignatedMember 2018-12-31 0001594012 us-gaap:OtherAssetsMember us-gaap:NondesignatedMember 2018-12-31 0001594012 us-gaap:OtherAssetsMember us-gaap:OtherContractMember us-gaap:NondesignatedMember 2019-09-30 0001594012 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001594012 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001594012 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:NondesignatedMember 2019-09-30 0001594012 us-gaap:OtherAssetsMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-30 0001594012 us-gaap:OtherAssetsMember us-gaap:NondesignatedMember 2019-09-30 0001594012 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:NondesignatedMember 2018-12-31 0001594012 us-gaap:OtherLiabilitiesMember us-gaap:NondesignatedMember 2019-09-30 0001594012 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2019-01-01 2019-09-30 0001594012 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2018-07-01 2018-09-30 0001594012 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2018-01-01 2018-09-30 0001594012 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2019-07-01 2019-09-30 0001594012 us-gaap:InterestRateSwapMember 2018-12-31 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-07-01 2018-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-01-01 2019-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-01-01 2018-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-07-01 2018-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-07-01 2019-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-07-01 2018-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-07-01 2019-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-07-01 2019-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-09-30 0001594012 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-01-01 2018-09-30 0001594012 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-07-01 2019-09-30 0001594012 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-07-01 2019-09-30 0001594012 isbc:AccumulatedNetInvestmentGainLossBeforeReclassificationAttributabletoParentMember 2018-07-01 2018-09-30 0001594012 isbc:AccumulatedNetInvestmentGainLossBeforeReclassificationAttributabletoParentMember 2019-07-01 2019-09-30 0001594012 us-gaap:AccumulatedTranslationAdjustmentMember 2018-07-01 2018-09-30 0001594012 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-07-01 2018-09-30 0001594012 us-gaap:AccumulatedOtherThanTemporaryImpairmentMember 2019-07-01 2019-09-30 0001594012 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-07-01 2018-09-30 0001594012 us-gaap:AccumulatedOtherThanTemporaryImpairmentMember 2018-07-01 2018-09-30 0001594012 us-gaap:AccumulatedTranslationAdjustmentMember 2019-07-01 2019-09-30 0001594012 us-gaap:AccumulatedOtherThanTemporaryImpairmentMember 2018-09-30 0001594012 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-09-30 0001594012 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-09-30 0001594012 us-gaap:AccumulatedOtherThanTemporaryImpairmentMember 2019-09-30 0001594012 us-gaap:AccumulatedOtherThanTemporaryImpairmentMember 2019-01-01 2019-09-30 0001594012 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-12-31 0001594012 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-12-31 0001594012 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-09-30 0001594012 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-09-30 0001594012 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0001594012 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-09-30 0001594012 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-09-30 0001594012 us-gaap:AccumulatedOtherThanTemporaryImpairmentMember 2017-12-31 0001594012 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-09-30 0001594012 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-01-01 2018-09-30 0001594012 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-09-30 0001594012 us-gaap:AccumulatedOtherThanTemporaryImpairmentMember 2018-12-31 0001594012 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 2018-09-30 0001594012 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-09-30 0001594012 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-01-01 2019-09-30 0001594012 us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-31 0001594012 us-gaap:AccumulatedTranslationAdjustmentMember 2019-09-30 0001594012 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0001594012 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0001594012 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-01-01 2018-09-30 0001594012 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-09-30 0001594012 us-gaap:AccumulatedTranslationAdjustmentMember 2018-09-30 0001594012 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0001594012 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-31 0001594012 us-gaap:AccumulatedOtherThanTemporaryImpairmentMember 2018-01-01 2018-09-30 0001594012 isbc:AccumulatedNetInvestmentGainLossBeforeReclassificationAttributabletoParentMember 2018-01-01 2018-09-30 0001594012 isbc:ReclassificationAdjustmentForSecurityGainsIncludedinNetIncomeMember 2019-01-01 2019-09-30 0001594012 isbc:AccumulatedNetInvestmentGainLossBeforeReclassificationAttributabletoParentMember 2019-01-01 2019-09-30 0001594012 isbc:ReclassificationAdjustmentForSecurityGainsIncludedinNetIncomeMember 2018-01-01 2018-09-30 0001594012 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001594012 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001594012 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001594012 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001594012 us-gaap:TreasuryStockMember 2018-07-01 2018-09-30 0001594012 isbc:UnallocatedCommonStockHeldByEsopMember 2018-07-01 2018-09-30 0001594012 us-gaap:RetainedEarningsMember 2019-06-30 0001594012 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001594012 us-gaap:CommonStockMember 2019-06-30 0001594012 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001594012 us-gaap:TreasuryStockMember 2018-06-30 0001594012 us-gaap:TreasuryStockMember 2019-07-01 2019-09-30 0001594012 isbc:UnallocatedCommonStockHeldByEsopMember 2019-07-01 2019-09-30 0001594012 us-gaap:CommonStockMember 2018-06-30 0001594012 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-30 0001594012 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001594012 us-gaap:TreasuryStockMember 2019-06-30 0001594012 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001594012 isbc:UnallocatedCommonStockHeldByEsopMember 2019-06-30 0001594012 us-gaap:RetainedEarningsMember 2018-06-30 0001594012 isbc:UnallocatedCommonStockHeldByEsopMember 2018-06-30 0001594012 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001594012 us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001594012 us-gaap:FairValueMeasurementsRecurringMember us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2018-12-31 0001594012 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001594012 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001594012 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2018-12-31 0001594012 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001594012 us-gaap:OtherContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001594012 us-gaap:OtherContractMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2018-12-31 0001594012 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2018-12-31 0001594012 us-gaap:OtherContractMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001594012 us-gaap:OtherContractMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2018-12-31 0001594012 us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001594012 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001594012 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001594012 us-gaap:OtherContractMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2019-09-30 0001594012 us-gaap:FairValueMeasurementsRecurringMember us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2019-09-30 0001594012 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2019-09-30 0001594012 us-gaap:OtherContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001594012 us-gaap:OtherContractMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001594012 us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001594012 us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001594012 us-gaap:InterestRateSwapMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2019-09-30 0001594012 us-gaap:OtherContractMember us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001594012 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2019-09-30 0001594012 srt:MinimumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MeasurementInputDefaultRateMember isbc:ValuationMarketAndIncomeApproachMember 2018-12-31 0001594012 srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MeasurementInputDiscountForLackOfMarketabilityMember us-gaap:MarketApproachValuationTechniqueMember 2018-12-31 0001594012 srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MeasurementInputDefaultRateMember isbc:ValuationMarketAndIncomeApproachMember 2018-12-31 0001594012 srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MeasurementInputDiscountForLackOfMarketabilityMember us-gaap:MarketApproachValuationTechniqueMember 2018-12-31 0001594012 us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MarketApproachValuationTechniqueMember 2018-12-31 0001594012 us-gaap:FairValueMeasurementsNonrecurringMember 2018-12-31 0001594012 us-gaap:FairValueMeasurementsNonrecurringMember isbc:ValuationMarketAndIncomeApproachMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MarketApproachValuationTechniqueMember 2018-12-31 0001594012 srt:MinimumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MeasurementInputDiscountForLackOfMarketabilityMember us-gaap:MarketApproachValuationTechniqueMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember isbc:ValuationMarketAndIncomeApproachMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember isbc:ValuationMarketAndIncomeApproachMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MarketApproachValuationTechniqueMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember isbc:ValuationMarketAndIncomeApproachMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MarketApproachValuationTechniqueMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2018-12-31 0001594012 srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MeasurementInputDefaultRateMember isbc:ValuationMarketAndIncomeApproachMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001594012 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001594012 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001594012 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001594012 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001594012 us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MarketApproachValuationTechniqueMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MarketApproachValuationTechniqueMember 2019-09-30 0001594012 us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2019-09-30 0001594012 srt:MinimumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MeasurementInputDiscountForLackOfMarketabilityMember us-gaap:MarketApproachValuationTechniqueMember 2019-09-30 0001594012 srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MeasurementInputDiscountForLackOfMarketabilityMember us-gaap:MarketApproachValuationTechniqueMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MarketApproachValuationTechniqueMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2019-09-30 0001594012 srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MeasurementInputDiscountForLackOfMarketabilityMember us-gaap:MarketApproachValuationTechniqueMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MarketApproachValuationTechniqueMember 2019-09-30 0001594012 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsNonrecurringMember 2019-09-30 0001594012 srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MeasurementInputDefaultRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2019-09-30 0001594012 us-gaap:FairValueMeasurementsNonrecurringMember 2019-09-30 0001594012 srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MeasurementInputDefaultRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2019-09-30 0001594012 srt:MinimumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:MeasurementInputDefaultRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2019-09-30 0001594012 srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember 2019-09-30 0001594012 us-gaap:MeasurementInputDiscountRateMember 2018-12-31 0001594012 srt:MinimumMember us-gaap:MeasurementInputDiscountRateMember 2019-09-30 0001594012 srt:MinimumMember us-gaap:MeasurementInputPrepaymentRateMember 2019-09-30 0001594012 srt:MaximumMember us-gaap:MeasurementInputPrepaymentRateMember 2019-09-30 0001594012 srt:MinimumMember us-gaap:MeasurementInputPrepaymentRateMember 2018-12-31 0001594012 srt:MaximumMember us-gaap:MeasurementInputPrepaymentRateMember 2018-12-31 0001594012 us-gaap:MeasurementInputDiscountRateMember 2019-09-30 0001594012 us-gaap:OtherIncomeMember 2018-01-01 2018-09-30 0001594012 us-gaap:OtherIncomeMember 2019-01-01 2019-09-30 0001594012 isbc:FeeandServiceChargesMember 2018-01-01 2018-09-30 0001594012 us-gaap:OtherIncomeMember 2018-07-01 2018-09-30 0001594012 us-gaap:OtherIncomeMember 2019-07-01 2019-09-30 0001594012 isbc:FeeandServiceChargesMember 2019-07-01 2019-09-30 0001594012 isbc:FeeandServiceChargesMember 2019-01-01 2019-09-30 0001594012 isbc:FeeandServiceChargesMember 2018-07-01 2018-09-30 0001594012 isbc:AccountingStandardsUpdate201904Member us-gaap:AdjustmentsForNewAccountingPrincipleEarlyAdoptionMember 2019-06-13 0001594012 2019-01-01 0001594012 us-gaap:SubsequentEventMember 2019-10-23 2019-10-23 0001594012 srt:ScenarioForecastMember us-gaap:SubsequentEventMember 2019-11-25 2019-11-25 xbrli:pure isbc:employee iso4217:USD iso4217:USD xbrli:shares xbrli:shares isbc:loan isbc:interest_rate_swap
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 2019
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from: __________ to ___________
Commission file number: 001-36441 
Investors Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Delaware
 
46-4702118
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification Number)
 
 
 
 
101 JFK Parkway,
Short Hills,
New Jersey
 
07078
(Address of Principal Executive Offices)
 
Zip Code
(973) 924-5100
(Registrant’s telephone number)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common
 
ISBC
 
The NASDAQ Stock Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such requirements for the past 90 days.    Yes  ☑    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☑    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
 
☑
 
 
  
Accelerated filer
☐
 
Non-accelerated filer
 
☐
 
 
  
Smaller reporting company
☐
 
 
 
 
 
 
 
Emerging growth company
☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐ No  ☑
As of November 8, 2019, the registrant had 359,070,852 shares of common stock, par value $0.01 per share, issued and 274,753,702 outstanding. 

Table of Contents

INVESTORS BANCORP, INC.
FORM 10-Q

Index

Part I. Financial Information
 
 
Page
Item 1.
Financial Statements
 
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
Part II. Other Information
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 


Table of Contents


Part I Financial Information
ITEM 1.
FINANCIAL STATEMENTS

INVESTORS BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
September 30, 2019 (Unaudited) and December 31, 2018  
 
September 30,
2019
 
December 31,
2018
 
(In thousands)
ASSETS
 
 
 
Cash and cash equivalents
$
195,400

 
196,891

Equity securities
6,030

 
5,793

Debt securities available-for-sale, at estimated fair value
2,644,024

 
2,122,162

Debt securities held-to-maturity, net (estimated fair value of $1,158,769 and $1,558,564 at September 30, 2019 and December 31, 2018, respectively)
1,117,699

 
1,555,137

Loans receivable, net
21,516,234

 
21,378,136

Loans held-for-sale
31,373

 
4,074

Federal Home Loan Bank stock
273,996

 
260,234

Accrued interest receivable
83,951

 
77,501

Other real estate owned and other repossessed assets
12,675

 
6,911

Office properties and equipment, net
171,266

 
177,432

Operating lease right-of-use assets
179,632

 
—

Net deferred tax asset
108,634

 
104,411

Bank owned life insurance
216,925

 
211,914

Goodwill and intangible assets
97,566

 
99,063

Other assets
69,758

 
29,349

Total assets
$
26,725,163

 
26,229,008

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Liabilities:
 
 
 
Deposits
$
17,672,756

 
17,580,269

Borrowed funds
5,694,553

 
5,435,681

Advance payments by borrowers for taxes and insurance
147,359

 
129,891

Operating lease liabilities
189,927

 
—

Other liabilities
89,201

 
77,837

Total liabilities
23,793,796

 
23,223,678

Commitments and contingencies

 

Stockholders’ equity:
 
 
 
Preferred stock, $0.01 par value, 100,000,000 authorized shares; none issued
—

 
—

Common stock, $0.01 par value, 1,000,000,000 shares authorized; 359,070,852 issued at September 30, 2019 and December 31, 2018; 274,756,421 and 286,273,114 outstanding at September 30, 2019 and December 31, 2018, respectively
3,591

 
3,591

Additional paid-in capital
2,817,668

 
2,805,423

Retained earnings
1,227,294

 
1,173,897

Treasury stock, at cost; 84,314,431 and 72,797,738 shares at September 30, 2019 and December 31, 2018, respectively
(1,017,276
)
 
(884,750
)
Unallocated common stock held by the employee stock ownership plan
(79,015
)
 
(81,262
)
Accumulated other comprehensive loss
(20,895
)
 
(11,569
)
Total stockholders’ equity
2,931,367

 
3,005,330

Total liabilities and stockholders’ equity
$
26,725,163

 
26,229,008

See accompanying notes to consolidated financial statements.

1
Table of Contents

INVESTORS BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(Dollars in thousands, except per share data)
Interest and dividend income:
 
 
 
 
 
 
 
Loans receivable and loans held-for-sale
$
231,734

 
216,516

 
684,086

 
633,029

Securities:
 
 
 
 
 
 
 
Equity
36

 
32

 
108

 
100

Government-sponsored enterprise obligations
343

 
266

 
876

 
813

Mortgage-backed securities
23,978

 
19,624

 
71,491

 
59,279

Municipal bonds and other debt
3,186

 
2,615

 
8,442

 
7,305

Interest-bearing deposits
821

 
677

 
1,965

 
1,541

Federal Home Loan Bank stock
4,456

 
4,296

 
12,871

 
11,928

Total interest and dividend income
264,554

 
244,026

 
779,839

 
713,995

Interest expense:
 
 
 
 
 
 
 
Deposits
67,972

 
51,923

 
201,222

 
130,366

Borrowed funds
32,130

 
25,177

 
92,319

 
72,918

Total interest expense
100,102

 
77,100

 
293,541

 
203,284

Net interest income
164,452

 
166,926

 
486,298

 
510,711

Provision for loan losses
(2,500
)
 
2,000

 
(2,500
)
 
8,500

Net interest income after provision for loan losses
166,952

 
164,926

 
488,798

 
502,211

Non-interest income
 
 
 
 
 
 
 
Fees and service charges
5,796

 
5,506

 
16,785

 
16,194

Income on bank owned life insurance
1,832

 
1,596

 
4,949

 
4,425

Gain on loans, net
1,679

 
478

 
3,127

 
1,398

Gain (loss) on securities, net
30

 
97

 
(5,523
)
 
1,198

Gain on sale of other real estate owned, net
358

 
13

 
863

 
350

Other income
5,085

 
2,597

 
12,754

 
7,310

Total non-interest income
14,780

 
10,287

 
32,955

 
30,875

Non-interest expense
 
 
 
 
 
 
 
Compensation and fringe benefits
63,603

 
59,279

 
184,455

 
179,139

Advertising and promotional expense
2,994

 
3,229

 
10,888

 
9,123

Office occupancy and equipment expense
15,702

 
15,151

 
47,296

 
46,446

Federal deposit insurance premiums
3,300

 
4,935

 
9,900

 
13,960

General and administrative
487

 
509

 
1,663

 
1,702

Professional fees
6,010

 
3,578

 
12,411

 
11,781

Data processing and communication
8,348

 
7,090

 
23,989

 
20,319

Other operating expenses
8,274

 
8,017

 
25,329

 
22,987

Total non-interest expenses
108,718

 
101,788

 
315,931

 
305,457

Income before income tax expense
73,014

 
73,425

 
205,822

 
227,629

Income tax expense
21,042

 
19,201

 
59,068

 
58,383

Net income
$
51,972

 
54,224

 
146,754

 
169,246

Basic earnings per share
$
0.20

 
0.19

 
0.56

 
0.60

Diluted earnings per share
$
0.20

 
0.19

 
0.55

 
0.59

Weighted average shares outstanding

 
 
 
 
 
 
Basic
261,678,994

 
280,755,898

 
264,104,402

 
284,289,363

Diluted
261,812,970

 
281,172,921

 
264,422,265

 
285,376,003

See accompanying notes to consolidated financial statements.

2
Table of Contents

INVESTORS BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Comprehensive Income
(Unaudited)
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Net income
$
51,972

 
54,224

 
146,754

 
169,246

Other comprehensive loss, net of tax:
 
 
 
 
 
 
 
Change in funded status of retirement obligations
13

 
102

 
40

 
308

Unrealized gains (losses) on debt securities available-for-sale
6,798

 
(7,310
)
 
39,605

 
(36,330
)
Accretion of loss on debt securities reclassified to held to maturity
41

 
149

 
472

 
475

Reclassification adjustment for security losses included in net income
—

 
—

 
4,221

 
—

Other-than-temporary impairment accretion on debt securities
228

 
216

 
589

 
647

Net (losses) gains on derivatives
(9,564
)
 
5,266

 
(54,253
)
 
23,728

Total other comprehensive loss
(2,484
)
 
(1,577
)
 
(9,326
)
 
(11,172
)
Total comprehensive income
$
49,488

 
52,647

 
137,428

 
158,074



See accompanying notes to consolidated financial statements.

3
Table of Contents

INVESTORS BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Stockholders’ Equity
Nine Months Ended September 30, 2019 and 2018
(Unaudited)
 
Common
stock
 
Additional
paid-in
capital
 
Retained
earnings
 
Treasury
stock
 
Unallocated
common stock
held by ESOP
 
Accumulated
other
comprehensive
loss
 
Total
stockholders’
equity
 
(In thousands)
Balance at December 31, 2017
$
3,591

 
2,784,390

 
1,084,177

 
(633,110
)
 
(84,258
)
 
(29,339
)
 
3,125,451

Net income
—

 
—

 
169,246

 
—

 
—

 
—

 
169,246

Other comprehensive loss, net of tax
—

 
—

 
—

 
—

 
—

 
(11,172
)
 
(11,172
)
Reclassification due to the adoption of ASU No. 2016-01
—

 
—

 
606

 
—

 
—

 
(606
)
 
—

Purchase of treasury stock (14,477,965 shares)
—

 
—

 
—

 
(191,003
)
 
—

 
—

 
(191,003
)
Treasury stock allocated to restricted stock plan (71,982 shares)
—

 
(935
)
 
58

 
877

 
—

 
—

 
—

Compensation cost for stock options and restricted stock
—

 
13,798

 
—

 
—

 
—

 
—

 
13,798

Exercise of stock options
—

 
(4,023
)
 
—

 
9,347

 
—

 
—

 
5,324

Restricted stock forfeitures (368,946 shares)
—

 
4,626

 
(306
)
 
(4,320
)
 
—

 
—

 
—

Cash dividend paid ($0.27 per common share)
—

 
—

 
(81,166
)
 
—

 
—

 
—

 
(81,166
)
ESOP shares allocated or committed to be released
—

 
2,496

 
—

 
—

 
2,247

 
—

 
4,743

Balance at September 30, 2018
$
3,591

 
2,800,352

 
1,172,615

 
(818,209
)
 
(82,011
)
 
(41,117
)
 
3,035,221

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2018
$
3,591

 
2,805,423

 
1,173,897

 
(884,750
)
 
(81,262
)
 
(11,569
)
 
3,005,330

Net income
—

 
—

 
146,754

 
—

 
—

 
—

 
146,754

Other comprehensive loss, net of tax
—

 
—

 
—

 
—

 
—

 
(9,326
)
 
(9,326
)
Purchase of treasury stock (12,042,876 shares)
—

 
—

 
—

 
(140,241
)
 
—

 
—

 
(140,241
)
Treasury stock allocated to restricted stock plan (2,345,919 shares)
—

 
(29,140
)
 
33

 
29,107

 
—

 
—

 
—

Compensation cost for stock options and restricted stock
—

 
15,875

 
—

 
—

 
—

 
—

 
15,875

Exercise of stock options
—

 
(573
)
 
—

 
1,386

 
—

 
—

 
813

Restricted stock forfeitures (1,931,538 shares)
—

 
24,233

 
(1,455
)
 
(22,778
)
 
—

 
—

 
—

Cash dividend paid ($0.33 per common share)
—

 
—

 
(91,935
)
 
—

 
—

 
—

 
(91,935
)
ESOP shares allocated or committed to be released
—

 
1,850

 
—

 
—

 
2,247

 
—

 
4,097

Balance at September 30, 2019
$
3,591

 
2,817,668

 
1,227,294

 
(1,017,276
)
 
(79,015
)
 
(20,895
)
 
2,931,367

See accompanying notes to consolidated financial statements.


4
Table of Contents

INVESTORS BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
 
Nine Months Ended September 30,
 
2019
 
2018
 
(In thousands)
Cash flows from operating activities:
 
 
 
Net income
$
146,754

 
169,246

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
ESOP and stock-based compensation expense
19,972

 
18,541

Amortization of premiums and accretion of discounts on securities, net
7,262

 
8,712

Amortization of premiums and accretion of fees and costs on loans, net
(3,479
)
 
(5,297
)
Amortization of other intangible assets
1,220

 
1,514

Provision for loan losses
(2,500
)
 
8,500

Depreciation and amortization of office properties and equipment
14,175

 
13,613

Loss (gain) on securities, net
5,523

 
(1,198
)
Mortgage loans originated for sale
(160,297
)
 
(44,246
)
Proceeds from mortgage loan sales
164,249

 
46,112

Gain on sales of mortgage loans, net
(2,879
)
 
(951
)
Gain on sale of other real estate owned
(863
)
 
(350
)
Income on bank owned life insurance
(4,949
)
 
(4,425
)
Amortization of operating lease right-of-use assets
12,869

 
—

Increase in accrued interest receivable
(6,450
)
 
(5,428
)
Deferred tax expense (benefit)
2,521

 
(7,146
)
(Increase) decrease in other assets
(38,879
)
 
15,344

(Decrease) increase in other liabilities
(67,364
)
 
20,417

Total adjustments
(59,869
)
 
63,712

Net cash provided by operating activities
86,885

 
232,958

Cash flows from investing activities:
 
 
 
Purchases of loans receivable
(349,766
)
 
(363,339
)
Net payoffs (originations) of loans receivable
29,729

 
(190,805
)
Proceeds from disposition of loans receivable
148,505

 
447

Gain on disposition of loans receivable
(248
)
 
(447
)
Net proceeds from sale of other real estate owned
5,817

 
3,149

Proceeds from principal repayments/calls/maturities of debt securities available for sale
304,765

 
295,651

Proceeds from sales of debt securities available for sale
399,435

 
—

Proceeds from principal repayments/calls/maturities of debt securities held to maturity
210,115

 
233,202

Purchases of equity securities
(72
)
 
(67
)
Purchases of debt securities available for sale
(786,011
)
 
(353,821
)
Purchases of debt securities held to maturity
(166,338
)
 
(46,805
)
Proceeds from redemptions of Federal Home Loan Bank stock
244,632

 
194,201

Purchases of Federal Home Loan Bank stock
(258,394
)
 
(205,060
)
Purchases of office properties and equipment
(8,009
)
 
(8,769
)
Death benefit proceeds from bank owned life insurance, net
—

 
3,619

Purchases of bank owned life insurance
—

 
(125,000
)
Proceeds from surrender of bank owned life insurance contract
—

 
71,029

Cash paid for acquisition
—

 
(340,183
)
Net cash used in investing activities
(225,840
)
 
(832,998
)
Cash flows from financing activities:
 
 
 
Net increase in deposits
92,486

 
40,115

Funds borrowed under other repurchase agreements
197,758

 
120,000

Net increase in borrowed funds
61,115

 
272,241


5
Table of Contents

Net increase in advance payments by borrowers for taxes and insurance
17,468

 
26,730

Dividends paid
(91,935
)
 
(81,166
)
Exercise of stock options
813

 
5,324

Purchase of treasury stock
(140,241
)
 
(191,003
)
Net cash provided by financing activities
137,464

 
192,241

Net decrease in cash and cash equivalents
(1,491
)
 
(407,799
)
Cash and cash equivalents at beginning of period
196,891

 
618,394

Cash and cash equivalents at end of period
$
195,400

 
210,595

Supplemental cash flow information:
 
 
 
Non-cash investing activities:
 
 
 
Real estate acquired through foreclosure and other assets repossessed
$
11,289

 
4,938

Cash paid during the year for:
 
 
 
Interest
294,669

 
196,000

Income taxes
36,220

 
57,861

Significant non-cash transactions:
 
 
 
Debt securities transferred from held-to-maturity to available-for-sale
393,067

 
—

Loans transferred to held-for-sale portfolio
28,373

 
—

Right-of-use assets obtained in exchange for new lease liabilities
2,358

 
—

Acquisitions:
 
 
 
Non-cash assets acquired:
 
 
 
Loans
—

 
330,747

Goodwill and other intangible assets, net
—

 
4,975

Total non-cash assets acquired
—

 
335,722

See accompanying notes to consolidated financial statements.

6
Table of Contents

INVESTORS BANCORP, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
 
1.     Basis of Presentation
The consolidated financial statements are comprised of the accounts of Investors Bancorp, Inc. and its wholly owned subsidiary, Investors Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries (collectively, the “Company”). In the opinion of management, all the adjustments (consisting of normal and recurring adjustments) necessary for the fair presentation of the consolidated financial condition and the consolidated results of operations for the unaudited periods presented have been included. The results of operations and other data presented for the three and nine months ended September 30, 2019 are not necessarily indicative of the results of operations that may be expected for subsequent periods or the full year results.
Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for the preparation of the Form 10-Q. The consolidated financial statements presented should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s December 31, 2018 Annual Report on Form 10-K. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications.

2.     Stock Transactions
Stock Repurchase Program
On October 25, 2018, the Company announced its fourth share repurchase program, which authorized the purchase of 10% of its publicly-held outstanding shares of common stock, or 28,886,780 shares. The fourth program commenced immediately upon completion of the third program on December 10, 2018 and remains the Company’s current program as of September 30, 2019.
During the nine months ended September 30, 2019, the Company purchased 12,042,876 shares at a cost of $140.2 million, or approximately $11.65 per share. During the nine months ended September 30, 2019, shares repurchased included 383,836 shares withheld to cover income taxes related to restricted stock vesting under our 2015 Equity Incentive Plan. Shares withheld to pay income taxes are repurchased pursuant to the terms of the 2015 Equity Incentive Plan.

3.     Business Combinations
Gold Coast Bancorp    
On July 24, 2019, the Company and Gold Coast Bancorp, Inc. (“Gold Coast”) signed a definitive merger agreement under which the Company will acquire Gold Coast. Consideration will be paid to Gold Coast stockholders in a combination of stock and cash. Under the terms of the merger agreement, 50% of the common shares of Gold Coast will be converted into Investors Bancorp common stock and the remaining 50% will be exchanged for cash. For each share of Gold Coast Bancorp common stock, Gold Coast shareholders will have the option to receive either (i) 1.422 shares of Investors Bancorp common stock, $0.01 par value per share, (ii) a cash payment of $15.75, or (iii) a combination of Investors Bancorp common stock and cash. The foregoing is subject to proration to ensure that, in the aggregate, 50% of Gold Coast’s shares will be converted into Investors Bancorp common stock. As of September 30, 2019, Gold Coast had assets of $562.2 million, loans of $461.5 million and deposits of $463.5 million and operated six branches in Nassau and Suffolk counties in suburban Long Island and one branch in Brooklyn, NY. Required approvals to complete this transaction include Gold Coast shareholder approval, regulatory approvals, the effectiveness of the registration statement filed by Investors Bancorp with respect to the common stock to be issued in the transaction and other customary closing conditions. The merger is expected to be completed in the first quarter of 2020. As the merger has not been completed, the transaction is not reflected in the Consolidated Financial Statements.
Equipment Finance Portfolio    
On February 2, 2018, the Company completed the acquisition of a $345.8 million equipment finance portfolio. The acquisition included a seven-person team of financing professionals to lead the Company’s Equipment Finance Group, which is a part of the Company’s business lending group and is classified within our commercial and industrial loan portfolio. The purchase price of $340.2 million was paid using available cash.
The acquisition was accounted for under the acquisition method of accounting as prescribed by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 “Business Combinations”, as amended. Under this method of accounting, the purchase price has been allocated to the respective assets acquired based on their estimated fair values,

7
Table of Contents

net of applicable income tax effects. The excess cost over fair value of assets acquired, or $5.0 million, has been recorded as goodwill.
The acquired portfolio was fair valued on the date of acquisition based on guidance from ASC 820-10 which defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The valuation methods utilized took into consideration adjustments for interest rate risk, funding cost, servicing cost, residual risk, credit and liquidity risk.
The accounting for the acquisition of the equipment finance portfolio is complete and is reflected in our Consolidated Financial Statements.
    
4.     Earnings Per Share
The following is a summary of our earnings per share calculations and reconciliation of basic to diluted earnings per share.

 
For the Three Months Ended September 30,
 
2019
 
2018
 
(Dollars in thousands, except per share data)
Earnings for basic and diluted earnings per common share
 
 
 
Earnings applicable to common stockholders
$
51,972

 
$
54,224

 
 
 
 
Shares
 
 
 
Weighted-average common shares outstanding - basic
261,678,994

 
280,755,898

Effect of dilutive common stock equivalents (1)
133,976

 
417,023

Weighted-average common shares outstanding - diluted
261,812,970

 
281,172,921

 
 
 
 
Earnings per common share
 
 
 
Basic
$
0.20

 
$
0.19

Diluted
$
0.20

 
$
0.19


(1) For the three months ended September 30, 2019 and 2018, there were 8,142,370 and 10,059,247 equity awards, respectively, that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented.
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
(Dollars in thousands, except per share data)
Earnings for basic and diluted earnings per common share
 
 
 
Earnings applicable to common stockholders
$
146,754

 
$
169,246

 
 
 
 
Shares
 
 
 
Weighted-average common shares outstanding - basic
264,104,402

 
284,289,363

Effect of dilutive common stock equivalents (1)
317,863

 
1,086,640

Weighted-average common shares outstanding - diluted
264,422,265

 
285,376,003

 
 
 
 
Earnings per common share
 
 
 
Basic
$
0.56

 
$
0.60

Diluted
$
0.55

 
$
0.59


(1) For the nine months ended September 30, 2019 and 2018, there were 6,723,858 and 9,796,551 equity awards, respectively, that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented.


8
Table of Contents

5.     Securities
Equity Securities
Equity securities are reported at fair value on the Company’s Consolidated Balance Sheets. The Company’s portfolio of equity securities had an estimated fair value of $6.0 million and $5.8 million as of September 30, 2019 and December 31, 2018, respectively. Realized gains and losses from sales of equity securities as well as changes in fair value of equity securities still held at the reporting date are recognized in the Consolidated Statements of Income.
The following table presents the disaggregated net gains on equity securities reported in the Consolidated Statements of Income:
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Net gains recognized on equity securities
$
30

 
97

 
$
165

 
104

Less: Net gains recognized on equity securities sold
—

 
—

 
—

 
—

Unrealized gains recognized on equity securities
$
30

 
97

 
$
165

 
$
104


Debt Securities
The following tables present the carrying value, gross unrealized gains and losses and estimated fair value for available-for-sale debt securities and the amortized cost, net unrealized losses, carrying value, gross unrecognized gains and losses and estimated fair value for held-to-maturity debt securities as of the dates indicated. During the second quarter of 2019, the Company early adopted ASU 2019-04 and reclassified $393.1 million of debt securities held-to-maturity to debt securities available-for-sale. See Note 17, Recent Accounting Pronouncements, for further details regarding the adoption of ASU 2019-04.
 
At September 30, 2019
 
Carrying value
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Estimated
fair value
 
(In thousands)
Available-for-sale:
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
1,170,764

 
21,250

 
492

 
1,191,522

Federal National Mortgage Association
1,131,545

 
20,351

 
174

 
1,151,722

Government National Mortgage Association
295,831

 
4,949

 
—

 
300,780

Total debt securities available-for-sale
$
2,598,140

 
46,550

 
666

 
2,644,024


9
Table of Contents

 
At September 30, 2019
 
Amortized cost
 
Net unrealized losses (1)
 
Carrying value
 
Gross
unrecognized
gains (2)
 
Gross
unrecognized
losses (2)
 
Estimated
fair value
 
(In thousands)
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises
$
50,453

 
—

 
50,453

 
722

 
—

 
51,175

Municipal bonds
99,273

 
—

 
99,273

 
4,234

 
—

 
103,507

Corporate and other debt securities
77,062

 
15,035

 
62,027

 
23,130

 
199

 
84,958

Total debt securities held-to-maturity
226,788

 
15,035

 
211,753

 
28,086

 
199

 
239,640

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
273,488

 
154

 
273,334

 
4,670

 
201

 
277,803

Federal National Mortgage Association
559,607

 
436

 
559,171

 
7,930

 
359

 
566,742

Government National Mortgage Association
73,441

 
—

 
73,441

 
1,143

 
—

 
74,584

Total mortgage-backed securities held-to-maturity
906,536

 
590

 
905,946

 
13,743

 
560

 
919,129

Total debt securities held-to-maturity
$
1,133,324

 
15,625

 
1,117,699

 
41,829

 
759

 
1,158,769


(1) Net unrealized losses of held-to-maturity corporate and other debt securities represent the other than temporary charge related to other non-credit factors and is being amortized through accumulated other comprehensive income over the remaining life of the securities. For mortgage-backed securities, it represents the net loss on previously designated available-for sale debt securities transferred to held-to-maturity at fair value and is being amortized through accumulated other comprehensive income over the remaining life of the securities.
(2) Unrecognized gains and losses of held-to-maturity debt securities are not reflected in the financial statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as held-to-maturity; or (ii) the date that an other than temporary impairment charge is recognized on a held-to-maturity security, through the date of the balance sheet.
 
At December 31, 2018
 
Carrying value
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Estimated
fair value
 
(In thousands)
Available-for-sale:
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
988,348

 
6,492

 
8,190

 
986,650

Federal National Mortgage Association
980,546

 
3,560

 
15,550

 
968,556

Government National Mortgage Association
165,211

 
1,745

 
—

 
166,956

Total debt securities available-for-sale
$
2,134,105

 
11,797

 
23,740

 
2,122,162



10
Table of Contents

 
At December 31, 2018
 
Amortized cost
 
Net unrealized losses (1)
 
Carrying
value
 
Gross
unrecognized
gains (2)
 
Gross
unrecognized
losses (2)
 
Estimated
fair value
 
(In thousands)
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises
$
41,258

 
—

 
41,258

 
—

 
1,236

 
40,022

Municipal bonds
25,513

 
—

 
25,513

 
942

 
—

 
26,455

Corporate and other debt securities
66,295

 
15,854

 
50,441

 
36,592

 
—

 
87,033

Total debt securities held-to-maturity
133,066

 
15,854

 
117,212

 
37,534

 
1,236

 
153,510

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
402,231

 
595

 
401,636

 
112

 
9,413

 
392,335

Federal National Mortgage Association
955,237

 
689

 
954,548

 
535

 
22,687

 
932,396

Government National Mortgage Association
81,741

 
—

 
81,741

 
—

 
1,418

 
80,323

Total mortgage-backed securities held-to-maturity
1,439,209

 
1,284

 
1,437,925

 
647

 
33,518

 
1,405,054

Total debt securities held-to-maturity
$
1,572,275

 
17,138

 
1,555,137

 
38,181

 
34,754

 
1,558,564



(1) Net unrealized losses of held-to-maturity corporate and other debt securities represent the other than temporary charge related to other non-credit factors and is being amortized through accumulated other comprehensive income over the remaining life of the securities. For mortgage-backed securities, it represents the net loss on previously designated available-for sale debt securities transferred to held-to-maturity at fair value and is being amortized through accumulated other comprehensive income over the remaining life of the securities.
(2) Unrecognized gains and losses of held-to-maturity debt securities are not reflected in the financial statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as held-to-maturity; or (ii) the date that an other than temporary impairment charge is recognized on a held-to-maturity security, through the date of the balance sheet.
At September 30, 2019, corporate and other debt securities include a portfolio of collateralized debt obligations backed by pooled trust preferred securities (“TruPS”), principally issued by banks and to a lesser extent insurance companies and real estate investment trusts. At September 30, 2019, the TruPS had a carrying value and estimated fair value of $47.0 million and $69.7 million, respectively. While all were investment grade at purchase, securities classified as non-investment grade at September 30, 2019 had a carrying value and estimated fair value of $45.2 million and $65.3 million, respectively. Fair value is derived from considering specific assumptions, including terms of the TruPS structure, events of deferrals, defaults and liquidations, the projected cash flow for principal and interest payments, and discounted cash flow modeling.
Debt securities with a carrying value of $905.1 million and an estimated fair value of $921.2 million are pledged to secure borrowings and municipal deposits. The contractual maturities of the Bank’s mortgage-backed securities are generally less than 20 years with effective lives expected to be shorter due to prepayments. Expected maturities may differ from contractual maturities due to underlying loan prepayments or early call privileges of the issuer; therefore, mortgage-backed securities are not included in the following table. The amortized cost and estimated fair value of debt securities other than mortgage-backed securities at September 30, 2019, by contractual maturity, are shown below. 
 
September 30, 2019
 
Carrying
value
 
Estimated
fair value
 
(In thousands)
Due in one year or less
$
10,129

 
10,129

Due after one year through five years
—

 
—

Due after five years through ten years
45,460

 
47,148

Due after ten years
156,164

 
182,363

Total
$
211,753

 
239,640



Gross unrealized losses on debt securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2019 and December 31, 2018, were as follows:

11
Table of Contents

 
September 30, 2019
 
Less than 12 months
 
12 months or more
 
Total
 
Estimated
fair value
 
Unrealized
losses
 
Estimated
fair value
 
Unrealized
losses
 
Estimated
fair value
 
Unrealized
losses
 
(In thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 


Federal Home Loan Mortgage Corporation
$
117,655

 
332

 
10,060

 
160

 
127,715

 
492

Federal National Mortgage Association
29,282

 
102

 
37,257

 
72

 
66,539

 
174

Total mortgage-backed securities available-for-sale
146,937

 
434

 
47,317

 
232

 
194,254

 
666

Total debt securities available-for-sale
146,937

 
434

 
47,317

 
232

 
194,254

 
666

Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Corporate and other debt securities
2,766

 
199

 
—

 
—

 
2,766

 
199

Total debt securities held-to-maturity
2,766

 
199

 
—

 
—

 
2,766

 
199

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
9,098

 
28

 
31,254

 
173

 
40,352

 
201

Federal National Mortgage Association
3,132

 
12

 
51,680

 
347

 
54,812

 
359

Total mortgage-backed securities held-to-maturity
12,230

 
40

 
82,934

 
520

 
95,164

 
560

Total debt securities held-to-maturity
14,996

 
239

 
82,934

 
520

 
97,930

 
759

Total
$
161,933

 
673

 
130,251

 
752

 
292,184

 
1,425


 
December 31, 2018
 
Less than 12 months
 
12 months or more
 
Total
 
Estimated
fair value
 
Unrealized
losses
 
Estimated
fair value
 
Unrealized
losses
 
Estimated
fair value
 
Unrealized
losses
 
(In thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
97,137

 
994

 
288,916

 
7,196

 
386,053

 
8,190

Federal National Mortgage Association
125,389

 
2,098

 
489,337

 
13,452

 
614,726

 
15,550

Total mortgage-backed securities available-for-sale
222,526

 
3,092

 
778,253

 
20,648

 
1,000,779

 
23,740

Total debt securities available-for-sale
222,526

 
3,092

 
778,253

 
20,648

 
1,000,779

 
23,740

Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises
—

 
—

 
40,022

 
1,236

 
40,022

 
1,236

Total debt securities held-to-maturity
—

 
—

 
40,022

 
1,236

 
40,022

 
1,236

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
51,045

 
553

 
339,534

 
8,860

 
390,579

 
9,413

Federal National Mortgage Association
214,400

 
2,449

 
663,671

 
20,238

 
878,071

 
22,687

Government National Mortgage Association
35,499

 
492

 
44,824

 
926

 
80,323

 
1,418

Total mortgage-backed securities held-to-maturity
300,944

 
3,494

 
1,048,029

 
30,024

 
1,348,973

 
33,518

Total debt securities held-to-maturity
300,944

 
3,494

 
1,088,051

 
31,260

 
1,388,995

 
34,754

Total
$
523,470

 
6,586

 
1,866,304

 
51,908

 
2,389,774

 
58,494


At September 30, 2019, the majority of gross unrealized losses relate to our mortgage-backed-security portfolio which is comprised of debt securities issued by U.S. Government Sponsored Enterprises. The fair values of these securities have been positively impacted by changes in interest rates as compared to December 31, 2018.

12
Table of Contents

Other-Than-Temporary Impairment (“OTTI”)
We conduct a quarterly review and evaluation of the securities portfolio to determine if the value of any security has declined below its cost or amortized cost, and whether such decline is other-than-temporary. If a determination is made that a debt security is other-than-temporarily impaired, the Company will estimate the amount of the unrealized loss that is attributable to credit and all other non-credit related factors. The credit related component will be recognized as an other-than-temporary impairment charge in non-interest income. The non-credit related component will be recorded as an adjustment to accumulated other comprehensive income (loss), net of tax.
With the assistance of a valuation specialist, we evaluate the credit and performance of each issuer underlying our pooled TruPS. Cash flows for each security are forecasted using assumptions for defaults, recoveries, pre-payments and amortization. At September 30, 2019 and 2018, management deemed that the present value of projected cash flows for each security was greater than the book value and did not recognize any additional OTTI charges for the three and nine months ended September 30, 2019 and 2018. At September 30, 2019, non-credit related OTTI recorded on the previously impaired TruPS was $15.0 million ($10.8 million after-tax). This amount is being accreted into income over the estimated remaining life of the securities.
The following table presents the changes in the credit loss component of the impairment loss of debt securities that the Company has written down for such loss as an other-than-temporary impairment recognized in earnings.

 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Balance of credit related OTTI, beginning of period
$
78,831

 
83,923

 
80,595

 
85,768

Additions:
 
 
 
 
 
 
 
Initial credit impairments
—

 
—

 
—

 
—

Subsequent credit impairments
—

 
—

 
—

 
—

Reductions:
 
 
 
 
 
 
 
Accretion of credit loss impairment due to an increase in expected cash flows
(883
)
 
(923
)
 
(2,647
)
 
(2,768
)
Reductions for securities sold or paid off during the period
—

 
—

 
—

 
—

Balance of credit related OTTI, end of period
$
77,948

 
83,000

 
77,948

 
83,000



The credit loss component of the impairment loss represents the difference between the present value of expected future cash flows and the amortized cost basis of the securities prior to considering credit losses. The beginning balance represents the credit loss component for debt securities for which OTTI occurred prior to the period presented. If OTTI is recognized in earnings for credit impaired debt securities, they would be presented as additions based upon whether the current period is the first time a debt security was credit impaired (initial credit impairment) or is not the first time a debt security was credit impaired (subsequent credit impairments). The credit loss component is reduced if the Company sells, intends to sell or believes it will be required to sell previously credit impaired debt securities. Additionally, the credit loss component is reduced if (i) the Company receives cash flows in excess of what it expected to receive over the remaining life of the credit impaired debt security, (ii) the security matures or (iii) the security is fully written down.
Realized Gains and Losses
Gains and losses on the sale of all securities are determined using the specific identification method. For the three months ended September 30, 2019, there were no sales of equity or debt securities. For the nine months ended September 30, 2019, the Company received proceeds of $399.4 million on securities sold from the debt securities available-for-sale portfolio resulting in a loss of $5.7 million recognized in non-interest income. Proceeds from the sale were reinvested in higher yielding debt securities. There were no sales of equity securities or debt securities held-to-maturity for the nine months ended September 30, 2019. The Company recognized unrealized gains on equity securities of $30,000 and $165,000, respectively, for the three and nine months ended September 30, 2019.
For the three and nine months ended September 30, 2018, there were no sales of equity or debt securities; however, in the second quarter of 2018, the Company received proceeds of $1.5 million from the payoff of a TruP security which resulted in a gain of $1.1 million. The Company recognized net unrealized gains on equity securities of $97,000 and $104,000, respectively, for the three and nine months ended September 30, 2018.


13
Table of Contents

6.    Loans Receivable, Net
The detail of the loan portfolio as of September 30, 2019 and December 31, 2018 was as follows:

 
September 30,
2019
 
December 31,
2018
 
(In thousands)
Multi-family loans
$
7,995,095

 
8,165,187

Commercial real estate loans
4,768,370

 
4,783,095

Commercial and industrial loans
2,681,577

 
2,389,756

Construction loans
289,857

 
227,015

Total commercial loans
15,734,899

 
15,565,053

Residential mortgage loans
5,306,912

 
5,350,504

Consumer and other loans
700,267

 
707,746

Total loans excluding PCI loans
21,742,078

 
21,623,303

PCI loans
4,132

 
4,461

Deferred fees, premiums and other, net (1)
(1,991
)
 
(13,811
)
Allowance for loan losses
(227,985
)
 
(235,817
)
Net loans
$
21,516,234

 
21,378,136


(1) Included in deferred fees and premiums are accretable purchase accounting adjustments in connection with loans acquired and an adjustment to the carrying amount of the residential loans hedged.

Allowance for Loan Losses
An analysis of the allowance for loan losses is summarized as follows:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Balance at beginning of the period
$
231,937

 
230,838

 
235,817

 
230,969

Loans charged off
(3,354
)
 
(6,014
)
 
(10,980
)
 
(20,157
)
Recoveries
1,902

 
3,994

 
5,648

 
11,506

Net charge-offs
(1,452
)
 
(2,020
)
 
(5,332
)
 
(8,651
)
Provision for loan losses
(2,500
)
 
2,000

 
(2,500
)
 
8,500

Balance at end of the period
$
227,985

 
230,818

 
227,985

 
230,818


The allowance for loan losses is the estimated amount considered necessary to cover credit losses inherent in the loan portfolio at the balance sheet date. The allowance is established through the provision for loan losses that is charged against income. In determining the allowance for loan losses, we make significant estimates and therefore, have identified the allowance as a critical accounting policy. The methodology for determining the allowance for loan 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 economic environment that could result in changes to the amount of the recorded allowance for loan losses.
The allowance for loan losses has been determined in accordance with U.S. GAAP, under which we are required to maintain an allowance for probable losses at the balance sheet date. We are responsible for the timely and periodic determination of the amount of the allowance required. We believe that our allowance for loan losses is adequate to cover specifically identifiable losses, as well as estimated losses inherent in our portfolio for which certain losses are probable but not specifically identifiable. Loans acquired are marked to fair value on the date of acquisition with no valuation allowance reflected in the allowance for loan losses. In conjunction with the quarterly evaluation of the adequacy of the allowance for loan losses, the Company performs an analysis on acquired loans to determine whether or not an allowance should be ascribed to those loans. Purchased Credit-Impaired (“PCI”) loans, are loans acquired at a discount that is due, in part, to credit quality. PCI loans are accounted for in accordance with ASC Subtopic 310-30 and are initially recorded at fair value as determined by the present value of expected future cash flows with no valuation allowance reflected

14
Table of Contents

in the allowance for loan losses. For the nine months ended September 30, 2019 and 2018, the Company recorded charge-offs of $7,000 and $343,000, respectively, related to PCI loans acquired.
Management performs a quarterly evaluation of the adequacy of the allowance for loan losses. The analysis of the allowance for loan losses has two components: collectively evaluated for impairment and individually evaluated for impairment. Specific allocations are made for loans determined to be impaired. A loan is deemed to be impaired if it is a commercial loan with an outstanding balance greater than $1.0 million and on non-accrual status, loans modified in a troubled debt restructuring (“TDR”), and other commercial loans greater than $1.0 million if management has specific information that it is probable they will not collect all amounts due under the contractual terms of the loan agreement. Impairment is measured by determining the present value of expected future cash flows or, for collateral-dependent loans, the fair value of the collateral adjusted for market conditions and selling expenses. The allowance for loans collectively evaluated for impairment is determined by applying quantitative loss factors to the loans collectively evaluated for impairment segregated by type of loan, risk rating (if applicable) and payment history. In addition, the Company’s residential portfolio is subdivided between fixed and adjustable rate loans as adjustable rate loans are deemed to be subject to more credit risk if interest rates rise. Quantitative loss factors for each loan segment are generally determined based on the Company’s historical loss experience over an appropriate look-back period. Additionally, management assesses the loss emergence period for the expected losses of each loan segment and adjusts each quantitative loss factor accordingly. The loss emergence period is the estimated time from the date of a loss event (such as a personal bankruptcy) to the actual recognition of the loss (typically via the first full or partial loan charge-off), and is determined based upon a study of the Company’s past loss experience by loan segment. The quantitative loss factors may also be adjusted to account for qualitative factors, both internal and external to the Company, that are likely to cause estimated credit losses inherent in the portfolio to differ from historical loss experience. This evaluation is based on among other things, loan and delinquency trends, general economic conditions, credit concentrations, industry trends and lending and credit management policies and procedures, but is inherently subjective as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be different than the allowance for loan losses we have established which could have a material negative effect on our financial results.
On a quarterly basis, management reviews the current status of various loan assets in order to evaluate the adequacy of the allowance for loan losses. In this evaluation process, specific loans are analyzed to determine their potential risk of loss. Loans determined to be impaired are evaluated for potential loss exposure. Any shortfall results in a recommendation of a specific allowance or charge-off if the likelihood of loss is evaluated as probable. To determine the adequacy of collateral on a particular loan, an estimate of the fair value of the collateral is based on the most current appraised value available for real property or a discounted cash flow analysis on a business. The appraised value for real property is then reduced to reflect estimated liquidation expenses.
The allowance contains reserves identified as unallocated. These reserves reflect management’s attempt to provide for the imprecision and the uncertainty that is inherent in estimates of probable credit losses.
Our lending emphasis has been the origination of multi-family loans, commercial real estate loans, commercial and industrial loans, one- to four-family residential mortgage loans secured by one- to four-family residential real estate, construction loans and consumer loans, the majority of which are home equity loans, home equity lines of credit and cash surrender value lending on life insurance contracts. These activities resulted in a concentration of loans secured by real estate property and businesses located in New Jersey and New York. Based on the composition of our loan portfolio, we believe the primary risks to our loan portfolio are increases in interest rates, a decline in the general economy, and declines in real estate market values in New Jersey, New York and surrounding states. Any one or combination of these events may adversely affect our loan portfolio resulting in increased delinquencies, loan losses and future levels of loan loss provisions. As a substantial amount of our loan portfolio is collateralized by real estate, appraisals of the underlying value of property securing loans are critical in determining the amount of the allowance required for specific loans. Assumptions for appraisal valuations are instrumental in determining the value of properties. Negative changes to appraisal assumptions could significantly impact the valuation of a property securing a loan and the related allowance determined. The assumptions supporting such appraisals are carefully reviewed to determine that the resulting values reasonably reflect amounts realizable on the related loans.
The Company obtains an appraisal for all commercial loans that are collateral dependent upon origination. Updated appraisals are generally obtained for substandard loans $1.0 million or greater and special mention loans $2.0 million or greater in the process of collection by the Company’s special assets department. This is done in order to determine the specific reserve or charge off needed. As part of the allowance for loan losses process, the Company reviews each collateral dependent commercial loan classified as non-accrual and/or impaired and assesses whether there has been an adverse change in the collateral value supporting the loan. The Company utilizes information from its commercial lending officers and its credit department and special assets department’s knowledge of changes in real estate conditions in our lending area to identify if possible deterioration of collateral value has occurred. Based on the severity of the changes in market conditions, management determines if an updated appraisal is warranted or if downward adjustments to the previous appraisal are warranted. If it is determined that the deterioration of the collateral value is significant enough to warrant ordering a new appraisal, an estimate of the downward adjustments to the existing appraised value is used in assessing if additional specific reserves are necessary until the updated appraisal is received.

15
Table of Contents

For homogeneous residential mortgage loans, the Company’s policy is to obtain an appraisal upon the origination of the loan and an updated appraisal in the event a loan becomes 90 days delinquent. Thereafter, the appraisal is updated every two years if the loan remains in non-performing status and the foreclosure process has not been completed. Management adjusts the appraised value of residential loans to reflect estimated selling costs and declines in the real estate market.
Management believes the potential risk for outdated appraisals for impaired and other non-performing loans has been mitigated due to the fact that the loans are individually assessed to determine that the loan’s carrying value is not in excess of the fair value of the collateral. Loans are generally charged off after an analysis is completed which indicates that collectability of the full principal balance is in doubt.
Although we believe we have established and maintained the allowance for loan losses at adequate levels, additions may be necessary based on the growth and composition of the loan portfolio, the level of loan delinquency and the economic conditions in our lending area. Management uses relevant information available; however, the level of the allowance for loan losses remains an estimate that is subject to significant judgment and short-term change. In addition, the Federal Deposit Insurance Corporation and the New Jersey Department of Banking and Insurance, as an integral part of their examination process, will periodically review our allowance for loan losses. Such agencies may require us to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination.


16
Table of Contents

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2019 and December 31, 2018:

 
September 30, 2019
 
Multi-
Family Loans
 
Commercial
Real Estate Loans
 
Commercial
and Industrial
Loans
 
Construction
Loans
 
Residential
Mortgage Loans
 
Consumer
and Other
Loans
 
Unallocated
 
Total
 
(Dollars in thousands)
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance-December 31, 2018
$
82,876

 
48,449

 
71,084

 
7,486

 
20,776

 
3,102

 
2,044

 
235,817

Charge-offs
(2,854
)
 
(121
)
 
(5,183
)
 
—

 
(1,905
)
 
(917
)
 
—

 
(10,980
)
Recoveries
1,244

 
2,137

 
1,002

 
—

 
1,186

 
79

 
—

 
5,648

Provision
(5,490
)
 
(2,323
)
 
4,542

 
1,476

 
(834
)
 
215

 
(86
)
 
(2,500
)
Ending balance-September 30, 2019
$
75,776

 
48,142

 
71,445

 
8,962

 
19,223

 
2,479

 
1,958

 
227,985

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
—

 
—

 
—

 
—

 
1,897

 
76

 
—

 
1,973

Collectively evaluated for impairment
75,776

 
48,142

 
71,445

 
8,962

 
17,326

 
2,403

 
1,958

 
226,012

Loans acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance at September 30, 2019
$
75,776

 
48,142

 
71,445

 
8,962

 
19,223

 
2,479

 
1,958

 
227,985

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
17,429

 
8,140

 
10,882

 
—

 
26,939

 
906

 
—

 
64,296

Collectively evaluated for impairment
7,977,666

 
4,760,230

 
2,670,695

 
289,857

 
5,279,973

 
699,361

 
—

 
21,677,782

Loans acquired with deteriorated credit quality
—

 
3,558

 
—

 
—

 
500

 
74

 
—

 
4,132

Balance at September 30, 2019
$
7,995,095

 
4,771,928

 
2,681,577

 
289,857

 
5,307,412

 
700,341

 
—

 
21,746,210


17
Table of Contents

 
December 31, 2018
 
Multi-
Family Loans
 
Commercial
Real Estate Loans
 
Commercial
and Industrial
Loans
 
Construction
Loans
 
Residential
Mortgage Loans
 
Consumer
and Other
Loans
 
Unallocated
 
Total
 
(Dollars in thousands)
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance-December 31, 2017
$
81,469

 
56,137

 
54,563

 
11,609

 
21,835

 
3,099

 
2,257

 
230,969

Charge-offs
(2,603
)
 
(7,200
)
 
(7,078
)
 
—

 
(5,246
)
 
(1,963
)
 
—

 
(24,090
)
Recoveries
17

 
5,213

 
9,478

 
—

 
2,193

 
37

 
—

 
16,938

Provision
3,993

 
(5,701
)
 
14,121

 
(4,123
)
 
1,994

 
1,929

 
(213
)
 
12,000

Ending balance-December 31, 2018
$
82,876

 
48,449

 
71,084

 
7,486

 
20,776


3,102

 
2,044

 
235,817

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
—

 
—

 
—

 
—

 
2,082

 
72

 
—

 
2,154

Collectively evaluated for impairment
82,876

 
48,449

 
71,084

 
7,486

 
18,694

 
3,030

 
2,044

 
233,663

Loans acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance at December 31, 2018
$
82,876

 
48,449

 
71,084

 
7,486

 
20,776


3,102

 
2,044

 
235,817

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
32,046

 
6,623

 
19,624

 
—

 
27,884

 
570

 
—

 
86,747

Collectively evaluated for impairment
8,133,141

 
4,776,472

 
2,370,132

 
227,015

 
5,322,620

 
707,176

 
—

 
21,536,556

Loans acquired with deteriorated credit quality
—

 
3,730

 
—

 
—

 
611

 
120

 
—

 
4,461

Balance at December 31, 2018
$
8,165,187

 
4,786,825

 
2,389,756

 
227,015

 
5,351,115


707,866

 
—

 
21,627,764


The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. For non-homogeneous loans, such as commercial and commercial real estate loans, the Company analyzes the loans individually by classifying the loans as to credit risk and assesses the probability of collection for each type of class. In assessing and classifying our commercial loan portfolio, the Company places significant emphasis on the borrower’s ability to service its debt. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:
Pass - “Pass” assets are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner.
Watch - A “Watch” asset has all the characteristics of a Pass asset but warrants more than the normal level of supervision. These loans may require more detailed reporting to management because some aspects of underwriting may not conform to policy or adverse events may have affected or could affect the cash flow or ability to continue operating profitably, provided, however, the events do not constitute an undue credit risk. Residential and consumer loans delinquent 30-59 days are considered watch if not already identified as impaired.
Special Mention - A “Special Mention” asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit

18
Table of Contents

position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Residential and consumer loans delinquent 60-89 days are considered special mention if not already identified as impaired.
Substandard - A “Substandard” asset is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Residential and consumer loans delinquent 90 days or greater as well as those identified as impaired are considered substandard.
Doubtful - An asset classified “Doubtful” has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values.
Loss - An asset or portion thereof, classified “Loss” is considered uncollectible and of such little value that its continuance on the institution’s books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. This classification does not necessarily mean that an asset has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery will occur. As such, it is not practical or desirable to defer the write-off.
The following tables present the risk category of loans as of September 30, 2019 and December 31, 2018 by class of loans, excluding PCI loans:

 
September 30, 2019
 
Pass
 
Watch
 
Special
Mention
 
Substandard
 
Doubtful
 
Loss
 
Total
 
(In thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
6,553,284

 
962,053

 
146,866

 
332,892

 
—

 
—

 
7,995,095

Commercial real estate
4,102,142

 
403,818

 
54,799

 
207,611

 
—

 
—

 
4,768,370

Commercial and industrial
1,851,024

 
638,736

 
48,164

 
143,653

 
—

 
—

 
2,681,577

Construction
190,412

 
80,735

 
399

 
18,311

 
—

 
—

 
289,857

Total commercial loans
12,696,862

 
2,085,342

 
250,228

 
702,467

 
—

 
—

 
15,734,899

Residential mortgage
5,232,790

 
12,437

 
10,192

 
51,493

 
—

 
—

 
5,306,912

Consumer and other
691,421

 
5,280

 
1,524

 
2,042

 
—

 
—

 
700,267

Total
$
18,621,073

 
2,103,059

 
261,944

 
756,002

 
—

 
—

 
21,742,078


 
December 31, 2018
 
Pass
 
Watch
 
Special
Mention
 
Substandard
 
Doubtful
 
Loss
 
Total
 
(In thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
6,462,056

 
1,061,168

 
313,498

 
328,465

 
—

 
—

 
8,165,187

Commercial real estate
3,910,282

 
552,080

 
162,488

 
158,245

 
—

 
—

 
4,783,095

Commercial and industrial
1,647,130

 
571,620

 
53,861

 
117,145

 
—

 
—

 
2,389,756

Construction
163,503

 
35,774

 
9,200

 
18,538

 
—

 
—

 
227,015

Total commercial loans
12,182,971

 
2,220,642

 
539,047

 
622,393

 
—

 
—

 
15,565,053

Residential mortgage
5,268,234

 
12,082

 
7,712

 
62,476

 
—

 
—

 
5,350,504

Consumer and other
694,432

 
8,443

 
1,650

 
3,221

 
—

 
—

 
707,746

Total
$
18,145,637

 
2,241,167

 
548,409

 
688,090

 
—

 
—

 
21,623,303


    

19
Table of Contents

The following tables present the payment status of the recorded investment in past due loans as of September 30, 2019 and December 31, 2018 by class of loans, excluding PCI loans:
 
 
September 30, 2019
 
30-59 Days
 
60-89 Days
 
Greater
than 90
Days
 
Total Past
Due
 
Current
 
Total
Loans
Receivable
 
(In thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
16,006

 
3,517

 
19,507

 
39,030

 
7,956,065

 
7,995,095

Commercial real estate
17,955

 
4,385

 
6,158

 
28,498

 
4,739,872

 
4,768,370

Commercial and industrial
5,927

 
4,694

 
5,350

 
15,971

 
2,665,606

 
2,681,577

Construction
—

 
—

 
—

 
—

 
289,857

 
289,857

Total commercial loans
39,888

 
12,596

 
31,015

 
83,499

 
15,651,400

 
15,734,899

Residential mortgage
14,029

 
10,644

 
28,746

 
53,419

 
5,253,493

 
5,306,912

Consumer and other
5,282

 
1,523

 
1,233

 
8,038

 
692,229

 
700,267

Total
$
59,199

 
24,763

 
60,994

 
144,956

 
21,597,122

 
21,742,078

 
 
December 31, 2018
 
30-59 Days
 
60-89 Days
 
Greater
than 90
Days
 
Total Past
Due
 
Current
 
Total
Loans
Receivable
 
(In thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
23,098

 
2,572

 
33,683

 
59,353

 
8,105,834

 
8,165,187

Commercial real estate
5,491

 
3,511

 
2,415

 
11,417

 
4,771,678

 
4,783,095

Commercial and industrial
2,988

 
867

 
4,560

 
8,415

 
2,381,341

 
2,389,756

Construction
9,200

 
—

 
227

 
9,427

 
217,588

 
227,015

Total commercial loans
40,777

 
6,950

 
40,885

 
88,612

 
15,476,441

 
15,565,053

Residential mortgage
13,811

 
7,712

 
39,255

 
60,778

 
5,289,726

 
5,350,504

Consumer and other
8,524

 
1,650

 
2,830

 
13,004

 
694,742

 
707,746

Total
$
63,112

 
16,312

 
82,970

 
162,394

 
21,460,909

 
21,623,303


The following table presents non-accrual loans, excluding PCI loans, at the dates indicated:
 
 
September 30, 2019
 
December 31, 2018
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
Non-accrual:
 
Multi-family
6

 
$
19,564

 
15

 
$
33,940

Commercial real estate
30

 
12,310

 
35

 
12,391

Commercial and industrial
16

 
12,024

 
14

 
19,394

Construction
—

 
—

 
1

 
227

Total commercial loans
52

 
43,898

 
65

 
65,952

Residential mortgage and consumer
261

 
48,171

 
320

 
58,961

Total non-accrual loans
313

 
$
92,069

 
385

 
$
124,913



20
Table of Contents

Included in the non-accrual table above are TDR loans whose payment status is current but the Company has classified as non-accrual as the loans have not maintained their current payment status for six consecutive months under the restructured terms and therefore do not meet the criteria for accrual status. As of September 30, 2019 and December 31, 2018, these loans are comprised of the following:
 
September 30, 2019
 
December 31, 2018
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
TDR with payment status current classified as non-accrual:
 
 
 
 
 
 
 
Commercial real estate
1

 
$
65

 
2

 
$
2,817

Commercial and industrial
—

 
—

 
2

 
9,762

Total commercial loans
1

 
65

 
4

 
12,579

Residential mortgage and consumer
31

 
5,059

 
26

 
4,006

Total TDR with payment status current classified as non-accrual
32

 
$
5,124

 
30

 
$
16,585

The following table presents TDR loans which were also 30-89 days delinquent and classified as non-accrual at the dates indicated. Not included in the table is a commercial and industrial TDR loan in the amount of $954,000 which was 30-89 days delinquent at September 30, 2019, classified as accruing while the Company underwrites an extension of the borrower’s credit facilities.
 
September 30, 2019
 
December 31, 2018
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
TDR 30-89 days delinquent classified as non-accrual:
 
 
 
 
 
 
 
Residential mortgage and consumer
12

 
$
2,045

 
11

 
$
1,810

Total TDR 30-89 days delinquent classified as non-accrual
12

 
$
2,045

 
11

 
$
1,810


The Company has no loans past due 90 days or more delinquent that are still accruing interest.
PCI loans are excluded from non-accrual loans, as they are recorded at fair value based on the present value of expected future cash flows. As of September 30, 2019, PCI loans with a carrying value of $4.1 million included $3.9 million of which were current, $31,000 of which were 30-89 days delinquent and $133,000 of which were 90 days or more delinquent. As of December 31, 2018, PCI loans with a carrying value of $4.5 million included $4.1 million of which were current, $229,000 of which were 30-89 days delinquent and $248,000 of which were 90 days or more delinquent.
At September 30, 2019 and December 31, 2018, loans meeting the Company’s definition of an impaired loan were primarily collateral dependent loans which totaled $64.3 million and $86.7 million, respectively, with allocations of the allowance for loan losses of $2.0 million and $2.2 million as of September 30, 2019 and December 31, 2018, respectively. During the nine months ended September 30, 2019 and 2018, interest income received and recognized on these loans totaled $831,000 and $513,000, respectively.


21
Table of Contents

The following tables present loans individually evaluated for impairment by portfolio segment as of September 30, 2019 and December 31, 2018:

 
September 30, 2019
 
Recorded
Investment
 
Unpaid Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
(In thousands)
With no related allowance:
 
 
 
 
 
 
 
 
 
Multi-family
$
17,429

 
18,801

 
—

 
18,860

 
21

Commercial real estate
8,140

 
11,170

 
—

 
8,323

 
240

Commercial and industrial
10,882

 
18,225

 
—

 
12,097

 
259

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
36,451

 
48,196

 
—

 
39,280

 
520

Residential mortgage and consumer
12,869

 
16,992

 
—

 
12,904

 
174

With an allowance recorded:
 
 
 
 
 
 
 
 
 
Multi-family
—

 
—

 
—

 
—

 
—

Commercial real estate
—

 
—

 
—

 
—

 
—

Commercial and industrial
—

 
—

 
—

 
—

 
—

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
—

 
—

 
—

 
—

 
—

Residential mortgage and consumer
14,976

 
15,684

 
1,973

 
14,989

 
137

Total:
 
 
 
 
 
 
 
 
 
Multi-family
17,429

 
18,801

 
—

 
18,860

 
21

Commercial real estate
8,140

 
11,170

 
—

 
8,323

 
240

Commercial and industrial
10,882

 
18,225

 
—

 
12,097

 
259

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
36,451

 
48,196

 
—

 
39,280

 
520

Residential mortgage and consumer
27,845

 
32,676

 
1,973

 
27,893

 
311

Total impaired loans
$
64,296

 
80,872

 
1,973

 
67,173

 
831


22
Table of Contents

 
December 31, 2018
 
Recorded
Investment
 
Unpaid Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
(In thousands)
With no related allowance:
 
 
 
 
 
 
 
 
 
Multi-family
$
32,046

 
34,199

 
—

 
33,656

 
146

Commercial real estate
6,623

 
11,896

 
—

 
6,611

 
79

Commercial and industrial
19,624

 
26,323

 
—

 
20,218

 
232

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
58,293

 
72,418

 
—

 
60,485

 
457

Residential mortgage and consumer
12,626

 
17,130

 
—

 
11,907

 
167

With an allowance recorded:
 
 
 
 
 
 
 
 
 
Multi-family
—

 
—

 
—

 
—

 
—

Commercial real estate
—

 
—

 
—

 
—

 
—

Commercial and industrial
—

 
—

 
—

 
—

 
—

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
—

 
—

 
—

 
—

 
—

Residential mortgage and consumer
15,828

 
16,498

 
2,154

 
15,627

 
280

Total:
 
 
 
 
 
 
 
 
 
Multi-family
32,046

 
34,199

 
—

 
33,656

 
146

Commercial real estate
6,623

 
11,896

 
—

 
6,611

 
79

Commercial and industrial
19,624

 
26,323

 
—

 
20,218

 
232

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
58,293

 
72,418

 
—

 
60,485

 
457

Residential mortgage and consumer
28,454

 
33,628

 
2,154

 
27,534

 
447

Total impaired loans
$
86,747

 
106,046

 
2,154

 
88,019

 
904


The average recorded investment is the annual average calculated based upon the ending quarterly balances. The interest income recognized is the year to date interest income recognized on a cash basis.
Troubled Debt Restructurings
On a case-by-case basis, the Company may agree to modify the contractual terms of a borrower’s loan to remain competitive and assist customers who may be experiencing financial difficulty, as well as preserve the Company’s position in the loan. If the borrower is experiencing financial difficulties and a concession has been made at the time of such modification, the loan is classified as a TDR.
Substantially all of our TDR loan modifications involve lowering the monthly payments on such loans through either a reduction in interest rate below a market rate, an extension of the term of the loan, or a combination of these two methods. These modifications rarely result in the forgiveness of principal or accrued interest. In addition, we frequently obtain additional collateral or guarantor support when modifying commercial loans. Restructured loans remain on non-accrual status until there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible.


23
Table of Contents

The following tables present the total TDR loans at September 30, 2019 and December 31, 2018. There were five residential loans that were previously designated as PCI classified as TDRs for the periods ended September 30, 2019 and December 31, 2018.
 
 
September 30, 2019
 
Accrual
 
Non-accrual
 
Total
 
# of loans
 
Amount
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
—

 
$
—

 
3

 
$
2,548

 
3

 
$
2,548

Commercial and industrial
3

 
1,669

 
2

 
5,194

 
5

 
6,863

Total commercial loans
3

 
1,669

 
5

 
7,742

 
8

 
9,411

Residential mortgage and consumer
55

 
10,769

 
81

 
17,078

 
136

 
27,847

Total
58

 
$
12,438

 
86

 
$
24,820

 
144

 
$
37,258



 
December 31, 2018
 
Accrual
 
Non-accrual
 
Total
 
# of loans
 
Amount
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
Multi-family
—

 
$
—

 
1

 
$
892

 
1

 
$
892

Commercial real estate
—

 
—

 
3

 
2,859

 
3

 
2,859

Commercial and industrial
2

 
2,070

 
4

 
13,479

 
6

 
15,549

Total commercial loans
2

 
2,070

 
8

 
17,230

 
10

 
19,300

Residential mortgage and consumer
52

 
11,550

 
79

 
16,908

 
131

 
28,458

Total
54

 
$
13,620

 
87

 
$
34,138

 
141

 
$
47,758



The following tables present information about TDRs that occurred during the three and nine months ended September 30, 2019 and 2018:

 
Three Months Ended September 30,
 
2019
 
2018
 
Number of
Loans
 
Pre-modification
Recorded
Investment
 
Post-
modification
Recorded
Investment
 
Number of
Loans
 
Pre-modification
Recorded
Investment
 
Post-
modification
Recorded
Investment
 
(Dollars in thousands)
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
$
96

 
$
96

 
—

 
$
—

 
$
—

Commercial and industrial
1

 
$
270

 
$
270

 
1

 
$
3,711

 
$
3,711

Residential mortgage and consumer
4

 
453

 
453

 
3

 
1,215

 
1,215



24
Table of Contents

    
 
Nine Months Ended September 30,
 
2019
 
2018
 
Number of
Loans
 
Pre-modification
Recorded
Investment
 
Post-
modification
Recorded
Investment
 
Number of
Loans
 
Pre-modification
Recorded
Investment
 
Post-
modification
Recorded
Investment
 
(Dollars in thousands)
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
$
96

 
$
96

 
2

 
$
788

 
$
616

Commercial and industrial
1

 
270

 
270

 
4

 
13,682

 
13,682

Residential mortgage and consumer
14

 
2,850

 
2,850

 
15

 
2,715

 
2,715


Post-modification recorded investment represents the net book balance immediately following modification.
All TDRs are impaired loans, which are individually evaluated for impairment, as discussed above. Collateral dependent impaired loans classified as TDRs were written down to the estimated fair value of the collateral. There were $156,000 and $729,000 in charge-offs for TDRs of unsecured commercial and industrial loans during the three and nine months ended September 30, 2019, respectively. There were no charge-offs for TDRs during the three months ended September 30, 2018 and $214,000 in charge-offs for collateral dependent TDRs during the nine months ended September 30, 2018. Of the amount charged off in the first nine months of 2018, one borrower subsequently repaid the full amount of outstanding loan principal which resulted in a recovery of $172,000. The allowance for loan losses associated with the TDRs presented in the above tables totaled $2.0 million and $2.2 million as of September 30, 2019 and December 31, 2018, respectively.
Loan modifications generally involve the reduction in loan interest rate and/or extension of loan maturity dates and also may include step up interest rates in their modified terms which will impact their weighted average yield in the future. All residential loans deemed to be TDRs were modified to reflect a reduction in interest rates to current market rates. The commercial loan modifications which qualified as TDRs in the nine months ended September 30, 2019 and 2018 had their maturity extended.
The following tables present information about pre and post modification interest yield for TDRs which occurred during the three and nine months ended September 30, 2019 and 2018:
 
Three Months Ended September 30,
 
2019
 
2018
 
Number of
Loans
 
Pre-modification
Interest Yield
 
Post-
modification
Interest Yield
 
Number of
Loans
 
Pre-modification
Interest Yield
 
Post-
modification
Interest Yield
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
5.75
%
 
5.75
%
 
—

 
—
%
 
—
%
Commercial and industrial
1

 
6.25
%
 
6.25
%
 
1

 
5.75
%
 
5.75
%
Residential mortgage and consumer
4

 
4.00
%
 
3.82
%
 
3

 
4.37
%
 
4.45
%

 
Nine Months Ended September 30,
 
2019
 
2018
 
Number of
Loans
 
Pre-modification
Interest Yield
 
Post-
modification
Interest Yield
 
Number of
Loans
 
Pre-modification
Interest Yield
 
Post-
modification
Interest Yield
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
5.75
%
 
5.75
%
 
2

 
4.68
%
 
4.68
%
Commercial and industrial
1

 
6.25
%
 
6.25
%
 
4

 
5.94
%
 
5.94
%
Residential mortgage and consumer
14

 
5.07
%
 
4.96
%
 
15

 
4.60
%
 
3.78
%

Payment defaults for loans modified as a TDR in the previous 12 months to September 30, 2019 consisted of 1 residential loan and 1 commercial real estate loan with a recorded investment of $132,000 and $2.5 million, respectively, at September 30, 2019. Payment defaults for loans modified as a TDR in the previous 12 months to September 30, 2018 consisted of 9 residential loans, 2 commercial real estate loan and 1 multi-family loan with a recorded investment of $651,000, $568,000 and $898,000, respectively, at September 30, 2018.


25
Table of Contents

7.     Deposits
Deposits are summarized as follows:

 
September 30, 2019
 
December 31, 2018
 
(In thousands)
Non-interest bearing:
 
 
 
Checking accounts
$
2,433,152

 
2,535,848

Interest bearing:
 
 
 
Checking accounts
5,103,007

 
4,783,563

Money market deposits
3,674,032

 
3,641,070

Savings
1,963,724

 
2,048,941

Certificates of deposit
4,498,841

 
4,570,847

Total deposits
$
17,672,756

 
17,580,269



8.    Goodwill and Other Intangible Assets
The following table summarizes goodwill and intangible assets at September 30, 2019 and December 31, 2018:
 
 
September 30, 2019
 
December 31, 2018
 
 
(In thousands)
Mortgage servicing rights
 
$
11,454

 
11,712

Core deposit premiums
 
2,876

 
4,050

Other
 
690

 
755

Total other intangible assets
 
15,020

 
16,517

Goodwill
 
82,546

 
82,546

Goodwill and intangible assets
 
$
97,566

 
99,063



The following table summarizes other intangible assets as of September 30, 2019 and December 31, 2018:
 
 
Gross Intangible Asset
 
Accumulated Amortization
 
Valuation Allowance
 
Net Intangible Assets
 
 
(In thousands)
September 30, 2019
 
 
 
 
 
 
 
 
Mortgage servicing rights
 
$
18,406

 
(6,729
)
 
(223
)
 
11,454

Core deposit premiums
 
20,561

 
(17,685
)
 
—

 
2,876

Other
 
1,150

 
(460
)
 
—

 
690

Total other intangible assets
 
$
40,117

 
(24,874
)
 
(223
)
 
15,020

 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
Mortgage servicing rights
 
$
19,808

 
(7,921
)
 
(175
)
 
11,712

Core deposit premiums
 
25,058

 
(21,008
)
 
—

 
4,050

Other
 
1,150

 
(395
)
 
—

 
755

Total other intangible assets
 
$
46,016

 
(29,324
)
 
(175
)
 
16,517


Mortgage servicing rights are accounted for using the amortization method. Under this method, the Company amortizes the loan servicing asset in proportion to, and over the period of, estimated net servicing revenues. The Company sells loans on a servicing-retained basis. Loans that were sold on this basis had an unpaid principal balance of $1.61 billion and $1.62 billion at September 30, 2019 and December 31, 2018, respectively, all of which relate to mortgage loans. At September 30, 2019 and December 31, 2018, the servicing asset, included in other intangible assets, had an estimated fair value of $13.3 million and $14.9 million, respectively. At September 30, 2019, fair value was based on expected future cash flows considering a weighted average

26
Table of Contents

discount rate of 12.05%, a weighted average constant prepayment rate on mortgages of 12.06% and a weighted average life of 6.0 years. See Note 15 for additional details.
Core deposit premiums are amortized using an accelerated method and having a weighted average amortization period of 10 years.

9.     Leases
The Company adopted ASU 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842 on January 1, 2019.  Topic 842 requires lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. We have operating leases for corporate offices, branch locations and certain equipment. Our leases have remaining lease terms of up to 17 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. Certain of our operating leases for branch locations contain variable lease payments related to consumer price index adjustments.
The following table presents the balance sheet information related to our leases:
 
September 30, 2019
 
(Dollars in thousands)
Operating lease right-of-use assets
$
179,632

Operating lease liabilities
189,927

Weighted average remaining lease term
9.9 years

Weighted average discount rate
2.74
%

In determining the present value of lease payments, the discount rate used for each individual lease is the rate implicit in the lease, unless that rate cannot be readily determined, in which case the Company is required to use its incremental borrowing rate based on the information available at commencement date. For leases that existed at adoption, the Company used the remaining lease term as of January 1, 2019. For its incremental borrowing rate, the Company uses the borrowing rates offered to the Company by the Federal Home Loan Bank, which reflects the rates a lender would charge the Company to obtain a collateralized loan.
The following table presents the components of total lease cost recognized in the Consolidated Statements of Income:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2019
 
(In thousands)
Included in office occupancy and equipment expense:
 
 
 
Operating lease cost
$
6,320

 
18,963

Short-term lease cost
74

 
229

Variable lease cost
—

 
(1
)
Included in other income:
 
 
 
Sublease income
67

 
201

The following table presents supplemental cash flow information related to leases:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2019
 
(In thousands)
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases
$
6,173

 
18,470

Operating lease liabilities arising from obtaining right-of-use assets (non-cash):
Operating leases
577

 
2,358



27
Table of Contents

Future minimum operating lease payments and reconciliation to operating lease liabilities at September 30, 2019:
 
September 30, 2019
 
(In thousands)
Remainder of 2019
$
6,026

2020
24,067

2021
23,817

2022
22,077

2023
21,032

Thereafter
121,539

Total lease payments
218,558

Less: Imputed interest
(28,631
)
Total operating lease liabilities
$
189,927



At December 31, 2018, the Company’s minimum operating lease payments for non-cancelable operating leases were $24.4 million, $23.8 million, $23.4 million, $21.7 million and $20.7 million for 2019 through 2023, respectively, and $119.9 million in the aggregate for all years thereafter.

10.     Equity Incentive Plan
At the annual meeting held on June 9, 2015, stockholders of the Company approved the Investors Bancorp, Inc. 2015 Equity Incentive Plan (“2015 Plan”) which provides for the issuance or delivery of up to 30,881,296 shares (13,234,841 restricted stock awards and 17,646,455 stock options) of Investors Bancorp, Inc. common stock.
Restricted shares granted under the 2015 Plan vest in equal installments, over the service period generally ranging from 5 to 7 years beginning one year from the date of grant. Additionally, certain restricted shares awarded are performance vesting awards, which may or may not vest depending upon the attainment of certain corporate financial targets. The vesting of restricted stock may accelerate in accordance with the terms of the 2015 Plan. The product of the number of shares granted and the grant date closing market price of the Company’s common stock determine the fair value of restricted shares under the 2015 Plan. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period. For the nine months ended September 30, 2019 and September 30, 2018, the Company granted 2,345,919 and 71,982 shares of restricted stock awards under the 2015 Plan, respectively.
Stock options granted under the 2015 Plan vest in equal installments, over the service period generally ranging from 5 to 7 years beginning one year from the date of grant. The vesting of stock options may accelerate in accordance with the terms of the 2015 Plan. Stock options were granted at an exercise price equal to the fair value of the Company’s common stock on the grant date based on the closing market price and have an expiration period of 10 years. For the nine months ended September 30, 2019 and September 30, 2018, the Company granted 995,216 and 50,000 stock options under the 2015 Plan, respectively.
The fair value of stock options granted as part of the 2015 Plan was estimated utilizing the Black-Scholes option pricing model using the following assumptions for the periods presented below:
 
Nine Months Ended September 30,
 
2019
 
2018
Weighted average expected life (in years)
4.83

 
6.50

Weighted average risk-free rate of return
1.86
%
 
2.80
%
Weighted average volatility
19.92
%
 
17.71
%
Dividend yield
3.96
%
 
2.78
%
Weighted average fair value of options granted
$
0.89

 
$
1.94

Total stock options granted
995,216

 
50,000


The weighted average expected life of the stock option represents the period of time that stock options are expected to be outstanding and is estimated using historical data of stock option exercises and forfeitures. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is based on the historical volatility of the Company’s stock. The Company recognizes compensation expense for the fair values of these awards, which have graded vesting, on a straight-line basis over the requisite service period of the awards. Upon exercise of vested options, management expects to draw on treasury stock as the source for shares.

28
Table of Contents

The following table presents the share based compensation expense for the three and nine months ended September 30, 2019 and 2018:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Stock option expense
$
2,285

 
1,326

 
4,937

 
4,226

Restricted stock expense
4,026

 
3,338

 
10,933

 
9,488

Total share based compensation expense
$
6,311

 
4,664

 
15,870

 
13,714



The following is a summary of the Company’s stock option activity and related information for the nine months ended September 30, 2019:
 
 
Number of
Stock
Options
 
Weighted Average
Exercise Price
 
Weighted Average
Remaining
Contractual
Life (in years)
 
Aggregate
Intrinsic Value
Outstanding at December 31, 2018
 
10,216,047

 
$
12.43

 
6.5
 
$
522

Granted(1)
 
995,216

 
12.53

 
5.9
 
 
Exercised
 
(111,802
)
 
7.28

 
3.3
 
 
Forfeited(1)
 
(5,169,858
)
 
12.53

 
 
 
 
Expired
 
(174,000
)
 
12.43

 
 
 
 
Outstanding at September 30, 2019
 
5,755,603

 
12.46

 
5.8
 
287

Exercisable at September 30, 2019
 
3,038,063

 
$
12.40

 
5.7
 
$
286


(1) Reflects the impact of the shareholder litigation settlement as noted below.    
Expected future expense relating to the non-vested options outstanding as of September 30, 2019 is $10.4 million over a weighted average period of 2.26 years.
The following is a summary of the status of the Company’s restricted shares as of September 30, 2019 and changes therein during the nine months ended:
 
 
Number of Shares Awarded
 
Weighted Average Grant Date Fair Value
Outstanding at December 31, 2018
 
3,477,747

 
$
12.69

Granted(1)
 
2,345,919

 
12.42

Vested
 
(1,011,670
)
 
12.67

Forfeited(1)(2)
 
(1,912,400
)
 
12.55

Outstanding and non vested at September 30, 2019
 
2,899,596

 
$
12.58


(1) Reflects the impact of the shareholder litigation settlement as noted below.    
(2) Excludes 19,138 shares forfeited in connection with the shareholder litigation settlement which had vested prior to December 31, 2018.
Expected future expense relating to the non-vested restricted shares outstanding as of September 30, 2019 is $30.7 million over a weighted average period of 3.04 years.

Shareholder Litigation Settlement
On March 6, 2019, a Stipulation and Agreement of Compromise, Settlement and Release was filed in the Court of Chancery of the State of Delaware (the “Court”) in relation to a lawsuit involving the Company and certain of its current and former directors entitled In re Investors Bancorp Inc. Stockholder Litigation, C.A. No. 12327-VCS (the “Settlement”). The Settlement resolves a lawsuit challenging the equity compensation granted on or about June 23, 2015 to persons who were then-directors of the Company.
    
    
    

29
Table of Contents

On June 21, 2019, the Court entered an order approving the Settlement. Following the expiration of a thirty-day appeal period, the Settlement became effective. Accordingly, pursuant to the Settlement (i) all of the stock options granted to non-employee directors (excluding Brendan J. Dugan who is deceased) and stock options granted to Paul Stathoulopoulos (who was not a director of the Company at the time of the equity grant on or about June 23, 2015), have been surrendered; (ii) a total of 95,694 shares of the restricted stock granted to the then non-employee directors of the Company (excluding Brendan J. Dugan) and to then non-director Paul Stathoulopoulos scheduled to vest in 2020 have been surrendered; and (iii) 925,000 shares of restricted stock and 1,333,333 stock options granted to the Company’s Chief Executive Officer and 740,000 shares of restricted stock and 1,066,667 stock options granted to the Company’s President have been surrendered. As a result of the Settlement, the Company recorded $2.0 million of accelerated stock compensation expense during the third quarter of 2019.
The Compensation and Benefits Committee, with the assistance of its independent legal advisor and compensation consultant, considered the issuance of equity grants to both the Company’s Chief Executive Officer and President to replace those being surrendered pursuant to the Settlement. On May 20, 2019, the Compensation and Benefits Committee authorized and approved, and recommended to the Board of Directors (the “Board”), the issuance of (i) 925,000 shares of restricted stock and 525,120 stock options to the Company’s Chief Executive Officer, and (ii) 740,000 shares of restricted stock and 420,096 stock options to the Company’s President (the “Replacement Awards”). The Board, excluding both the Company’s Chief Executive Officer and President, determined that it was advisable and in the best interests of the Company to approve and issue the Replacement Awards, subject to the surrender of awards pursuant to the Settlement.
The Replacement Awards were subsequently issued to both the Company’s Chief Executive Officer and President on July 22, 2019. The Replacement Awards were issued from the 2015 Equity Incentive Plan and were accounted for as a modification of the original awards, which resulted in no incremental expense as the compensation cost of the Replacement Awards was less than the compensation cost of the original awards. The stock options have an exercise price of $12.54 per share and vested 25% on July 22, 2019 with the remaining to vest ratably over a three-year period. Approximately 59% of the restricted shares vested on July 22, 2019 with the remainder to vest on the same vesting schedule as applicable to the June 23, 2015 award.

On September 26, 2019, a related shareholder derivative action was filed in the Delaware Chancery Court. The complaint claims breach of fiduciary duty on the part of the Company’s Board of Directors in the issuance of the replacement awards to both the Company’s Chief Executive Officer and President in connection with the settlement of the case referenced above.
    
11.     Net Periodic Benefit Plan Expense
The Company has an Executive Supplemental Retirement Wage Replacement Plan (“SERP II”) and the Supplemental ESOP and Retirement Plan (“SERP I”) (collectively, the “SERPs”). The SERP II is a nonqualified, defined benefit plan which provides benefits to certain executives as designated by the Compensation and Benefits Committee of the Board of Directors. More specifically, the SERP II was designed to provide participants with a normal retirement benefit equal to an annual benefit of 60% of the participant’s highest annual base salary and cash incentive (over a consecutive 36-month period within the participant’s credited service period) reduced by the sum of the benefits provided under the Pentegra Defined Benefit Plan for Financial Institutions (“Pentegra DB Plan”) and the SERP I.
Effective as of the close of business of December 31, 2016, the SERP II was amended to freeze future benefit accruals, and for certain participants, structure the benefits payable attributable solely to the participants’ 2016 year of service to vest over a two-year period such that the participants had a right to 50% of their accrued benefits attributable to their 2016 year of service as of December 31, 2016, which became 100% vested as of December 31, 2017.
The SERP I compensates certain executives (as designated by the Compensation and Benefits Committee of the Board of Directors) participating in the ESOP whose contributions are limited by the Internal Revenue Code. The Company also maintains the Amended and Restated Director Retirement Plan (“Directors’ Plan”) for certain directors, which is a nonqualified, defined benefit plan. The Directors’ Plan was frozen on November 21, 2006 such that no new benefits accrued under, and no new directors were eligible to participate in the plan. The SERPs and the Directors’ Plan are unfunded and the costs of the plans are recognized over the period that services are provided.

30
Table of Contents

The components of net periodic benefit cost for the Directors’ Plan and the SERP II are as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Interest cost
$
397

 
355

 
1,191

 
1,064

Amortization of:
 
 
 
 
 
 
 
Net loss
—

 
126

 
—

 
379

Total net periodic benefit cost
$
397

 
481

 
1,191

 
1,443


Due to the unfunded nature of the SERPs and the Directors’ Plan, no contributions have been made or were expected to be made during the nine months ended September 30, 2019.
The Company also maintains the Pentegra DB Plan. Since it is a multi-employer plan, costs of the pension plan are based on contributions required to be made to the pension plan. As of December 31, 2016, the annual benefit provided under the Pentegra DB plan was frozen by an amendment to the plan. Freezing the plan eliminated all future benefit accruals and each participant’s frozen accrued benefit was determined as of December 31, 2016 with no further benefits accrued subsequent to December 31, 2016. There was no contribution required during the nine months ended September 30, 2019. We anticipate contributing funds to the plan to meet any minimum funding requirements for the remainder of 2019.

12.    Derivatives and Hedging Activities
The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s floating rate borrowings and pools of fixed-rate assets.

Cash Flow Hedges of Interest Rate Risk
The Company’s objectives in using interest rate derivatives are primarily to reduce cost and add stability to interest expense in an effort to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of amounts subject to variability caused by changes in interest rates from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.  Changes in the fair value of derivatives designated and that qualify as cash flow hedges are initially recorded in other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Such derivatives were used to hedge the variability in cash flows associated with borrowings.
Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate borrowings. During the next twelve months, the Company estimates that an additional $9.1 million will be reclassified as an increase to interest expense.

Fair Value Hedges of Interest Rate Risk
The Company is exposed to changes in the fair value of certain of its fixed- and adjustable-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. Such derivatives were used to hedge the changes in fair value of certain of its pools of prepayable fixed- and adjustable-rate assets.
For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income.
The Company terminated three interest rate swaps with an aggregate notional amount of $1.00 billion during the quarter ended September 30, 2019. The terminated swaps were due to mature in February 2020.

31
Table of Contents

Derivatives Not Designated as Hedges
The Company has credit derivatives resulting from participations in interest rate swaps provided to external lenders as part of loan participation arrangements which are, therefore, not used to manage interest rate risk in the Company’s assets or liabilities. Additionally, the Company provides interest rate risk management services to commercial customers, primarily interest rate swaps. The Company’s market risk from unfavorable movements in interest rates related to these derivative contracts is economically hedged by concurrently entering into offsetting derivative contracts that have identical notional values, terms and indices.
Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain lenders which participate in loans and commercial customers.

Fair Values of Derivative Instruments on the Balance Sheet
 
 
Asset Derivatives
 
Liability Derivatives
 
September 30, 2019
 
December 31, 2018
 
September 30, 2019
 
December 31, 2018
 
Notional Amount
Balance
Sheet
Location
Fair Value
 
Notional Amount
Balance
Sheet
Location
Fair Value
 
Notional Amount
Balance
Sheet
Location
Fair Value
 
Notional Amount
Balance
Sheet
Location
Fair Value
 
(in millions)
 
(In thousands)
 
(in millions)
 
(In thousands)
 
(in millions)
 
(In thousands)
 
(in millions)
 
(In thousands)
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
$
2,475

Other assets
$
91

 
$
—

Other assets
$
—

 
$
—

Other liabilities
$
—

 
$
2,605

Other liabilities
$
432

Total derivatives designated as hedging instruments

 
$
91

 

 
$
—

 
 
 
$
—

 
 
 
$
432

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
$
306

Other assets
$
6,305

 
$
—

Other assets
$
—

 
$
—

Other liabilities
$
—

 
$
—

Other liabilities
$
—

Other Contracts
—

Other assets
—

 
—

Other assets
—

 
22

Other liabilities
178

 
18

Other liabilities
66

Total derivatives not designated as hedging instruments

 
$
6,305

 

 
$
—

 
 
 
$
178

 
 
 
$
66



The Chicago Mercantile Exchange (“CME”) legally characterizes the variation margin posted between counterparties as settlements of the outstanding derivative contracts instead of cash collateral.

Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Loss)
The following table presents the effect of the Company’s derivative financial instruments on Accumulated Other Comprehensive Income (Loss) for the three months ended September 30, 2019 and 2018.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Cash Flow Hedges - Interest rate swaps
 
 
 
 
 
 
 
Amount of (loss) gain recognized in other comprehensive income (loss)
$
(12,794
)
 
8,147

 
(71,139
)
 
34,065

Amount of gain reclassified from accumulated other comprehensive income (loss) to interest expense
509

 
822

 
4,327

 
1,059



32
Table of Contents

Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
The following table presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of September 30, 2019 and 2018.
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
The effects of fair value and cash flow hedging:
Income statement location
(In thousands)
Gain or (loss) on fair value hedging relationships in Subtopic 815-20
 
 
 
 
 
 
 
 
Interest contracts
 
 
 
 
 
 
 
 
Hedged items
Interest income on loans
$
1,179

 
(1,581
)
 
7,398

 
(1,581
)
Derivatives designated as hedging instruments [1]
Interest income on loans
(1,268
)
 
1,518

 
(7,550
)
 
1,518

Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
 
 
 
 
 
 
 
 
Interest contracts
 
 
 
 
 
 
 
 
Amount of gain reclassified from accumulated other comprehensive income (loss)
Interest expense on borrowings
509

 
822

 
4,327

 
1,059

Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) as a result that a forecasted transaction is no longer probable of occurring
Interest expense on borrowings
—

 
—

 
—

 
—

Total amounts of income and expense line items presented in the income statement in which the effects of fair value are recorded
 
$
420

 
759

 
4,175

 
996



[1] The amount includes gains on both active fair value hedging relationships and relationships which have been terminated

As of September 30, 2019 and December 31, 2018, the following amounts were recorded on the Consolidated Balance Sheets related to cumulative basis adjustment for fair value hedges:
Balance sheet location
Carrying Amount of the Hedged Assets/(Liabilities)
 
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
 
September 30, 2019
 
December 31, 2018
 
September 30, 2019
 
December 31, 2018
 
(In thousands)
Loans receivable, net (1)(2)
$
479,231

 
1,005,294

 
$
7,741

 
294

(1) At September 30, 2019, the amortized cost basis of the closed portfolios used in these hedging relationships was $1.50 billion; the cumulative basis adjustments associated with these hedging relationships was $7.7 million; and the amounts of the designated hedged items were $479.2 million.
(2) The balance of Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) as of September 30, 2019 includes $3.5 million of hedging adjustment on discontinued hedging relationships.

Location and Amount of Gain or (Loss) Recognized in Income on Derivatives Not Designated as Hedging Instruments
The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Income for the three and nine months ended September 30, 2019. There were no derivative financial instruments that are not designated as hedging instruments for the three and nine months ended September 30, 2018.
 
Consolidated Statements of Income location
Amount of Gain or (Loss) Recognized in Income on Derivative
 
Amount of Gain or (Loss) Recognized in Income on Derivative
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(In thousands)
Other Contracts
Other income / (expense)
$
(47
)
 
—

 
$
(57
)
 
—

Total
 
$
(47
)
 
—

 
$
(57
)
 
—



33
Table of Contents

Offsetting Derivatives
The following table presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives in the Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018. The net amounts of derivative assets and liabilities can be reconciled to the tabular disclosure of the fair value hierarchy, see Note 15, Fair Value Measurements. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Company’s Consolidated Balance Sheets.
 
 
 
 
 
 
 
Gross Amounts Not Offset
 
 
 
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Financial Instruments
 
Cash Collateral Posted
 
Net Amount
 
(In thousands)
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
$
106

 
—

 
106

 
—

 
—

 
106

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
178

 
—

 
178

 
—

 
—

 
178

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
$
498

 
—

 
498

 
—

 
—

 
498



13.    Comprehensive Income

 The components of comprehensive income, gross and net of tax, are as follows:
 
Three Months Ended September 30,
 
2019
 
2018
 
Gross
 
Tax
 
Net
 
Gross
 
Tax
 
Net
 
(Dollars in thousands)
Net income
$
73,014

 
(21,042
)
 
51,972

 
73,425

 
(19,201
)
 
54,224

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
 
 
Change in funded status of retirement obligations
19

 
(6
)
 
13

 
142

 
(40
)
 
102

Unrealized gains (losses) on debt securities available-for-sale
8,856

 
(2,058
)
 
6,798

 
(9,725
)
 
2,415

 
(7,310
)
Accretion of loss on debt securities reclassified to held-to-maturity from available-for-sale
94

 
(53
)
 
41

 
208

 
(59
)
 
149

Other-than-temporary impairment accretion on debt securities
317

 
(89
)
 
228

 
300

 
(84
)
 
216

Net (losses) gains on derivatives
(13,303
)
 
3,739

 
(9,564
)
 
7,325

 
(2,059
)
 
5,266

Total other comprehensive loss
(4,017
)
 
1,533

 
(2,484
)
 
(1,750
)
 
173

 
(1,577
)
Total comprehensive income
$
68,997

 
(19,509
)
 
49,488

 
71,675

 
(19,028
)
 
52,647



34
Table of Contents

 
Nine Months Ended September 30,
 
2019
 
2018
 
Gross
 
Tax
 
Net
 
Gross
 
Tax
 
Net
 
(Dollars in thousands)
Net income
$
205,822

 
(59,068
)
 
146,754

 
227,629

 
(58,383
)
 
169,246

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
 
 
Change in funded status of retirement obligations
56

 
(16
)
 
40

 
428

 
(120
)
 
308

Unrealized gains (losses) on debt securities available-for-sale
52,137

 
(12,532
)
 
39,605

 
(48,419
)
 
12,089

 
(36,330
)
Accretion of loss on securities reclassified to held-to-maturity from available-for-sale
694

 
(222
)
 
472

 
662

 
(187
)
 
475

Reclassification adjustment for security losses included in net income
5,690

 
(1,469
)
 
4,221

 
—

 
—

 
—

Other-than-temporary impairment accretion on debt securities
819

 
(230
)
 
589

 
900

 
(253
)
 
647

Net (losses) gains on derivatives
(75,466
)
 
21,213

 
(54,253
)
 
33,006

 
(9,278
)
 
23,728

Total other comprehensive loss
(16,070
)
 
6,744

 
(9,326
)
 
(13,423
)
 
2,251

 
(11,172
)
Total comprehensive income
$
189,752

 
(52,324
)
 
137,428

 
214,206

 
(56,132
)
 
158,074



The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the nine months ended September 30, 2019 and 2018:

 
Change in
funded status of
retirement
obligations
 
Accretion of loss on debt securities reclassified to held-to-maturity
 
Unrealized (losses) gains
on debt securities
available-for-sale and gains included in net income
 
Other-than-
temporary
impairment
accretion on  debt
securities
 
Unrealized gains (losses) on derivatives
 
Total
accumulated
other
comprehensive
loss
 
(Dollars in thousands)
Balance - December 31, 2018
$
(3,018
)
 
(921
)
 
(8,884
)
 
(11,397
)
 
12,651

 
(11,569
)
Net change
40

 
472

 
43,826

 
589

 
(54,253
)
 
(9,326
)
Balance - September 30, 2019
$
(2,978
)
 
(449
)
 
34,942

 
(10,808
)
 
(41,602
)
 
(20,895
)
 
 
 
 
 
 
 
 
 
 
 
 
Balance - December 31, 2017
$
(5,640
)
 
(1,520
)
 
(21,184
)
 
(14,482
)
 
13,487

 
(29,339
)
Net change
308

 
475

 
(36,330
)
 
647

 
23,728

 
(11,172
)
Reclassification due to the adoption of ASU No. 2016-01
—

 
—

 
(606
)
 
—

 
—

 
(606
)
Balance - September 30, 2018
$
(5,332
)
 
(1,045
)
 
(58,120
)
 
(13,835
)
 
37,215

 
(41,117
)


35
Table of Contents

The following table presents information about amounts reclassified from accumulated other comprehensive loss to the consolidated statements of income and the affected line item in the statement where net income is presented.

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Reclassification adjustment for losses included in net income
 
 
 
 
 
 
 
Loss on securities, net
$
—

 
—

 
5,690

 
—

Change in funded status of retirement obligations
 
 
 
 
 
 
 
Amortization of net (gain) loss
(2
)
 
129

 
(6
)
 
388

Interest expense
 
 
 
 
 
 
 
Reclassification adjustment for unrealized gains on derivatives
(509
)
 
(822
)
 
(4,327
)
 
(1,059
)
Total before tax
(511
)
 
(693
)
 
1,357

 
(671
)
Income tax benefit (expense)
147

 
181

 
(225
)
 
172

Net of tax
$
(364
)
 
(512
)
 
1,132

 
(499
)



36
Table of Contents

14.    Stockholders’ Equity

 The changes in the components of stockholders’ equity for the three months ended September 30, 2019 and 2018 are as follows:
 
Common
stock
 
Additional
paid-in
capital
 
Retained
earnings
 
Treasury
stock
 
Unallocated
common
stock held
by ESOP
 
Accumulated
other
comprehensive
loss
 
Total
stockholders’
equity
 
(In thousands)
Balance at June 30, 2018
$
3,591

 
2,794,507

 
1,145,129

 
(729,944
)
 
(82,760
)
 
(39,540
)
 
3,090,983

Net income
—

 
—

 
54,224

 
—

 
—

 
—

 
54,224

Other comprehensive loss, net of tax
—

 
—

 
—

 
—

 
—

 
(1,577
)
 
(1,577
)
Purchase of treasury stock (6,891,729 shares)
—

 
—

 
—

 
(87,983
)
 
—

 
—

 
(87,983
)
Treasury stock allocated to restricted stock plan (46,876 shares)
—

 
(594
)
 
22

 
572

 
—

 
—

 
—

Compensation cost for stock options and restricted stock
—

 
4,665

 
—

 
—

 
—

 
—

 
4,665

Exercise of stock options
—

 
(23
)
 
—

 
126

 
—

 
—

 
103

Restricted stock forfeitures (82,946 shares)
—

 
1,040

 
(60
)
 
(980
)
 
—

 
—

 
—

Cash dividend paid ($0.09 per common share)
—

 
—

 
(26,700
)
 
—

 
—

 
—

 
(26,700
)
ESOP shares allocated or committed to be released
—

 
757

 
—

 
—

 
749

 
—

 
1,506

Balance at September 30, 2018
$
3,591

 
2,800,352

 
1,172,615

 
(818,209
)
 
(82,011
)
 
(41,117
)
 
3,035,221

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2019
$
3,591

 
2,809,851

 
1,206,873

 
(995,265
)
 
(79,764
)
 
(18,411
)
 
2,926,875

Net income
—

 
—

 
51,972

 
—

 
—

 
—

 
51,972

Other comprehensive loss, net of tax
—

 
—

 
—

 
—

 
—

 
(2,484
)
 
(2,484
)
Purchase of treasury stock (2,004,717 shares)
—

 
—

 
—

 
(22,486
)
 
—

 
—

 
(22,486
)
Treasury stock allocated to restricted stock plan (1,687,500 shares)
—

 
(21,129
)
 
101

 
21,028

 
—

 
—

 
—

Compensation cost for stock options and restricted stock
—

 
6,309

 
—

 
—

 
—

 
—

 
6,309

Exercise of stock options
—

 
(287
)
 
—

 
441

 
—

 
—

 
154

Restricted stock forfeitures (1,782,205 shares)
—

 
22,348

 
(1,354
)
 
(20,994
)
 
—

 
—

 
—

Cash dividend paid ($0.11 per common share)
—

 
—

 
(30,298
)
 
—

 
—

 
—

 
(30,298
)
ESOP shares allocated or committed to be released
—

 
576

 
—

 
—

 
749

 
—

 
1,325

Balance at September 30, 2019
$
3,591

 
2,817,668

 
1,227,294

 
(1,017,276
)
 
(79,015
)
 
(20,895
)
 
2,931,367



15.    Fair Value Measurements
We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Our debt securities available-for-sale and derivatives are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record at fair value other assets or liabilities on a non-recurring basis, such as held-to-maturity debt securities, mortgage servicing rights (“MSR”), loans receivable and other real estate owned. These non-recurring fair value adjustments involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. Additionally, in connection with our mortgage banking activities we have commitments to fund loans held-for-sale and commitments to sell loans, which are considered free-standing derivative instruments, the fair values of which are not material to our financial condition or results of operations.

37
Table of Contents

In accordance with FASB ASC 820, “Fair Value Measurements and Disclosures”, we group our assets and liabilities at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:
•
Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets.
•
Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market.
•
Level 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability.
We base our fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
Assets Measured at Fair Value on a Recurring Basis
Equity securities
Our equity securities portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses recognized in the Consolidated Statements of Income. The fair values of equity securities are based on quoted market prices (Level 1).
Debt securities available-for-sale
Our debt securities available-for-sale portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income (loss) in stockholders’ equity. The fair values of debt securities available-for-sale are based upon quoted prices for similar instruments in active markets (Level 2). The pricing service may use quoted market prices of comparable instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, benchmark yields, credit spreads, default rates, prepayment speeds and non-binding broker quotes. As the Company is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in adjustment in the prices obtained from the pricing service.

38
Table of Contents

Derivatives
Derivatives are reported at fair value utilizing Level 2 inputs. The fair values of interest rate swap and risk participation agreements are based on a valuation model that uses primarily observable inputs, such as benchmark yield curves and interest rate spreads.
The following tables provide the level of valuation assumptions used to determine the carrying value of our assets and liabilities measured at fair value on a recurring basis at September 30, 2019 and December 31, 2018.
 
Carrying Value at September 30, 2019
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(In thousands)
Assets:
 
 
 
 
 
 
 
Equity securities
$
6,030

 
6,030

 
—

 
—

Debt securities available for sale:
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
1,191,522

 
—

 
1,191,522

 
—

Federal National Mortgage Association
1,151,722

 
—

 
1,151,722

 
—

Government National Mortgage Association
300,780

 
—

 
300,780

 
—

Total debt securities available-for-sale
$
2,644,024

 
—

 
2,644,024

 
—

Interest rate swaps
$
6,396

 
—

 
6,396

 
—

Liabilities:
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
Other contracts
$
178

 
—

 
178

 
—

 
Carrying Value at December 31, 2018
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(In thousands)
Assets:
 
 
 
 
 
 
 
Equity securities
$
5,793

 
5,793

 
—

 
—

Debt securities available for sale:
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
986,650

 
—

 
986,650

 
—

Federal National Mortgage Association
968,556

 
—

 
968,556

 
—

Government National Mortgage Association
166,956

 
—

 
166,956

 
—

Total debt securities available-for-sale
$
2,122,162

 
—

 
2,122,162

 
—

Liabilities:
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
Interest rate swaps
$
432

 
—

 
432

 
—

Other contracts
66

 
—

 
66

 
—

Total derivatives
$
498

 
—

 
498

 
—


There have been no changes in the methodologies used at September 30, 2019 from December 31, 2018, and there were no transfers between Level 1 and Level 2 during the nine months ended September 30, 2019.
There were no Level 3 assets measured at fair value on a recurring basis for the nine months ended September 30, 2019 and December 31, 2018.

39
Table of Contents

Assets Measured at Fair Value on a Non-Recurring Basis
Mortgage Servicing Rights, Net
Mortgage servicing rights are carried at the lower of cost or estimated fair value. The estimated fair value of MSR is obtained through independent third party valuations through an analysis of future cash flows, incorporating assumptions market participants would use in determining fair value including market discount rates, prepayment speeds, servicing income, servicing costs, default rates and other market driven data, including the market’s perception of future interest rate movements. The prepayment speed and the discount rate are considered two of the most significant inputs in the model.  At September 30, 2019, the fair value model used prepayment speeds ranging from 6.60% to 42.00% and a discount rate of 12.05% for the valuation of the mortgage servicing rights. At December 31, 2018, the fair value model used prepayment speeds ranging from 4.98% to 27.30% and a discount rate of 12.50% for the valuation of the mortgage servicing rights. A significant degree of judgment is involved in valuing the mortgage servicing rights using Level 3 inputs. The use of different assumptions could have a significant positive or negative effect on the fair value estimate.
Impaired Loans Receivable
Loans which meet certain criteria are evaluated individually for impairment. A loan is deemed to be impaired if it is a commercial loan with an outstanding balance greater than $1.0 million and on non-accrual status, loans modified in a troubled debt restructuring, and other commercial loans with $1.0 million in outstanding principal if management has specific information that it is probable they will not collect all amounts due under the contractual terms of the loan agreement. Our impaired loans are generally collateral dependent and, as such, are carried at the estimated fair value of the collateral less estimated selling costs. Estimated fair value is calculated using an independent third-party appraiser for collateral-dependent loans. In the event the most recent appraisal does not reflect the current market conditions due to the passage of time and other factors, management will obtain an updated appraisal or make downward adjustments to the existing appraised value based on their knowledge of the property, local real estate market conditions, recent real estate transactions, and for estimated selling costs, if applicable. Appraisals were generally discounted in a range of 0% to 25%. For non collateral-dependent loans, management estimates the fair value using discounted cash flows based on inputs that are largely unobservable and instead reflect management’s own estimates of the assumptions as a market participant would in pricing such loans.
Other Real Estate Owned and Repossessed Assets
Other Real Estate Owned and Repossessed Assets is recorded at estimated fair value, less estimated selling costs when acquired, thus establishing a new cost basis. Fair value is generally based on independent appraisals. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience, and are discounted an additional 0% to 25% for estimated costs to sell. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for loan losses. If further declines in the estimated fair value of the asset occur, a writedown is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in economic conditions. Operating costs after acquisition are generally expensed.
Loans Held For Sale
Residential mortgage loans held for sale are recorded at the lower of cost or fair value and are therefore measured at fair value on a non-recurring basis. When available, the Company uses observable secondary market data, including pricing on recent closed market transactions for loans with similar characteristics.

40
Table of Contents

The following tables provide the level of valuation assumptions used to determine the carrying value of our assets measured at fair value on a non-recurring basis at September 30, 2019 and December 31, 2018. For the three months ended September 30, 2019 and December 31, 2018 there was no change to the carrying value of MSR or loans held for sale.
 Security Type
Valuation Technique
Unobservable Input
Range
Weighted Average Input
 
Carrying Value at September 30, 2019
 
 
 
Minimum
Maximum
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
 
 
(In thousands)
Impaired loans
Estimated cash flow
Probability of default
1.0%
83.0%
8.10%
 
$
2,853

 
—

 
—

 
2,853

Other real estate owned
Market comparable
Lack of marketability
0.0%
25.0%
18.00%
 
49

 
—

 
—

 
49

 
 
 
 
 
 
 
$
2,902

 
—

 
—

 
2,902

 
 Security Type
Valuation Technique
Unobservable Input
Range
Weighted Average Input
 
Carrying Value at December 31, 2018
 
 
 
Minimum
Maximum
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
 
 
(In thousands)
Impaired loans
Market comparable and estimated cash flow
Lack of marketability and probability of default
1.0%
83.0%
11.20%
 
$
15,148

 
—

 
—

 
15,148

Other real estate owned
Market comparable
Lack of marketability
0.0%
25.0%
10.50%
 
241

 
—

 
—

 
241

 
 
 
 
 
 
 
$
15,389

 
—

 
—

 
15,389


Other Fair Value Disclosures
Fair value estimates, methods and assumptions for the Company’s financial instruments not recorded at fair value on a recurring or non-recurring basis are set forth below.
Cash and Cash Equivalents
For cash and due from banks, the carrying amount approximates fair value.
Debt Securities Held-to-Maturity
Our debt securities held-to-maturity portfolio, consisting primarily of mortgage-backed securities and other debt securities for which we have a positive intent and ability to hold to maturity, is carried at amortized cost. Management utilizes various inputs to determine the fair value of the portfolio. The Company obtains one price for each security primarily from a third-party pricing service, which generally uses quoted or other observable inputs for the determination of fair value. The pricing service normally derives the security prices through recently reported trades for identical or similar securities, making adjustments through the reporting date based upon available observable market information. For securities not actively traded, the pricing service may use quoted market prices of comparable instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, benchmark yields, credit spreads, default rates, prepayment speeds and non-binding broker quotes. In the absence of quoted prices and in an illiquid market, valuation techniques, which require inputs that are both significant to the fair value measurement and unobservable, are used to determine fair value of the investment. Valuation techniques are based on various assumptions, including, but not limited to forecasted cash flows, discount rates, rate of return, adjustments for nonperformance and liquidity, and liquidation values. As the Company is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in adjustment in the prices obtained from the pricing service.

41
Table of Contents

FHLB Stock
The fair value of the Federal Home Loan Bank of New York (“FHLB”) stock is its carrying value, since this is the amount for which it could be redeemed. There is no active market for this stock and the Bank is required to hold a minimum investment based upon the balance of mortgage related assets held by the member and or FHLB advances outstanding.
Loans
Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential mortgage and consumer. Each loan category is further segmented into fixed and adjustable rate interest terms and by performing and non-performing categories.
The fair value estimates are made at a specific point in time based on relevant market information. They do not reflect any premium or discount that could result from offering for sale a particular financial instrument. Fair value estimates are based on judgments regarding future expected loss experience, risk characteristics and economic conditions. These estimates are subjective, involve uncertainties, and cannot be determined with precision.
Deposit Liabilities
The fair value of deposits with no stated maturity, such as savings, checking accounts and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates which approximate currently offered for deposits of similar remaining maturities.
Borrowings
The fair value of borrowings are based on securities dealers’ estimated fair values, when available, or estimated using discounted contractual cash flows using rates which approximate the rates offered for borrowings of similar remaining maturities.

42
Table of Contents

Commitments to Extend Credit
The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For commitments to originate fixed rate loans, fair value also considers the difference between current levels of interest rates and the committed rates. Due to the short-term nature of our outstanding commitments, the fair values of these commitments are immaterial to our financial condition.
The carrying values and estimated fair values of the Company’s financial instruments are presented in the following table.
 
September 30, 2019
 
Carrying
 
Estimated Fair Value
 
value
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(In thousands)
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
195,400

 
195,400

 
195,400

 
—

 
—

Equities
6,030

 
6,030

 
6,030

 
—

 
—

Debt securities available-for-sale
2,644,024

 
2,644,024

 
—

 
2,644,024

 
—

Debt securities held-to-maturity
1,117,699

 
1,158,769

 
—

 
1,089,032

 
69,737

FHLB stock
273,996

 
273,996

 
273,996

 
—

 
—

Loans held for sale
31,373

 
31,373

 
—

 
31,373

 
—

Net loans
21,516,234

 
21,677,960

 
—

 
—

 
21,677,960

Derivative financial instruments
6,396

 
6,396

 
—

 
6,396

 
—

Financial liabilities:
 
 
 
 
 
 
 
 
 
Deposits, other than time deposits
$
13,173,915

 
13,173,915

 
13,173,915

 
—

 
—

Time deposits
4,498,841

 
4,498,964

 
—

 
4,498,964

 
—

Borrowed funds
5,694,553

 
5,702,437

 
—

 
5,702,437

 
—

Derivative financial instruments
178

 
178

 
—

 
178

 
—

 
December 31, 2018
 
Carrying
 
Estimated Fair Value
 
value
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(In thousands)
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
196,891

 
196,891

 
196,891

 
—

 
—

Equities
5,793

 
5,793

 
5,793

 
—

 
—

Debt securities available-for-sale
2,122,162

 
2,122,162

 
—

 
2,122,162

 
—

Debt securities held-to-maturity
1,555,137

 
1,558,564

 
—

 
1,476,565

 
81,999

FHLB stock
260,234

 
260,234

 
260,234

 
—

 
—

Loans held for sale
4,074

 
4,074

 
—

 
4,074

 
—

Net loans
21,378,136

 
21,085,185

 
—

 
—

 
21,085,185

Financial liabilities:
 
 
 
 
 
 
 
 
 
Deposits, other than time deposits
$
13,009,422

 
13,009,422

 
13,009,422

 
—

 
—

Time deposits
4,570,847

 
4,546,991

 
—

 
4,546,991

 
—

Borrowed funds
5,435,681

 
5,398,553

 
—

 
5,398,553

 
—

Derivative financial instruments
498

 
498

 
—

 
498

 
—


Limitations
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic

43
Table of Contents

conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
Fair value estimates are based on existing on- and off-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. Significant assets that are not considered financial assets include deferred tax assets, premises and equipment and bank owned life insurance. Liabilities for pension and other postretirement benefits are not considered financial liabilities. 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.

16.    Revenue Recognition
The Company’s contracts with customers in the scope of Topic 606, Revenue from Contracts with Customers, are contracts for deposit accounts and contracts for non-deposit investment accounts through a third party service provider.  Both types of contracts result in non-interest income being recognized.  The revenue resulting from deposit accounts, which includes fees such as insufficient funds fees, wire transfer fees and out-of-network ATM transaction fees, is included as a component of fees and service charges on the consolidated statements of income.  The revenue resulting from non-deposit investment accounts is included as a component of other income on the Consolidated Statements of Income. 
Revenue from contracts with customers included in fees and service charges and other income was as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(Dollars in thousands)
Revenue from contracts with customers included in:
 
 
 
 
 
 
 
Fees and service charges
$
4,337

 
3,408

 
11,350

 
9,860

Other income
2,230

 
1,925

 
6,961

 
6,131

Total revenue from contracts with customers
$
6,567

 
5,333

 
18,311

 
15,991


For our contracts with customers, we satisfy our performance obligations each day as services are rendered.  For our deposit account revenue, we receive payment on a daily basis as services are rendered and for our non-deposit investment account revenue, we receive payment on a monthly basis from our third party service provider as services are rendered.



























44
Table of Contents

17.    Recent Accounting Pronouncements
Standard
Description
Required date of adoption
Effect on Consolidated Financial Statements
Standards Adopted in 2019
Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments
This ASU makes clarifications and corrections to the application of the guidance contained in each of the amended topics. Regarding Topic 815, ASU 2019-04 amends guidance pertaining to partial-term fair value hedges of interest rate risk, disclosure of fair value hedge basis adjustments, and scope for not-for-profit entities. For Topic 825, the amendments provide scope clarifications for Subtopics 320-10, Investments-Debt and Equity Securities-Overall, and 321-10, Investments-Equity Securities-Overall, held-to-maturity debt securities fair value disclosures, and remeasurement of equity securities at historical exchange rates. Improvements to Topic 326 include, among others, conforming amendments to Subtopics 310-40, Receivables-Troubled Debt Restructurings by Creditors, and 323-10, Investments-Equity Method and Joint Ventures-Overall, clarification that reinsurance recoverables are within the scope of Subtopic 326-20, Financial Instruments-Credit Losses-Measured at Amortized Cost, and consideration of estimated costs to sell when foreclosure is probable.
January 1, 2020

Early adoption permitted
The Company early adopted ASU 2019-04 on June 13, 2019. Since the Company has already adopted ASUs 2016-01 and 2017-12, the related amendments are effective as of June 13, 2019. As part of the adoption, the Company reclassified $393.1 million of debt securities held-to-maturity to debt securities available-for-sale. The Company did not reclassify debt securities from held-to-maturity to available-for-sale upon adoption of the amendments in ASU 2017-12. Entities that did not reclassify debt securities from held-to-maturity to available-for-sale upon adoption of the amendments in ASU 2017-12 and elect to reclassify debt securities upon adoption of the amendments in this update are required to reflect the reclassification as of the date of adoption of this update. Entities that reclassified debt securities from held to-maturity to available-for-sale upon adoption of the amendments in ASU 2017-12 are not permitted to make any additional reclassifications.
Leases (Topic 842)
The amendment requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date for leases classified as operating leases as well as finance leases. ASU 2018-01 provides an optional practical expedient to not evaluate land easements which were existing or expired before the adoption of Topic 842 that were not accounted for as leases under Topic 840. ASU 2018-10 provides an optional transition method under which comparative periods presented in the financial statements will continue to be in accordance with current Topic 840, Leases, and a practical expedient to not separate non-lease components from the associated lease component. ASU 2018-20 provides an accounting policy election for lessors related to sales and other similar taxes collected from lessees and addresses lessor accounting for variable payments. ASU 2019-01 addresses three issues related to (i) determination of the fair value of the underlying assets by lessors, (ii) presentation of sales-type and direct financing leases in the statement of cash flows and (iii) transition disclosures related to accounting changes and error corrections.
January 1, 2019
Upon adoption, the Company recognized operating lease right-of-use assets and related operating lease liabilities totaling $193.3 million and $200.7 million, respectively. The Company adopted this amendment utilizing a modified retrospective approach and the optional transition method under which we use the effective date as the date of initial application of the amendments. The modified retrospective approach includes practical expedients such that we will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. See Note 9 for expanded disclosures.
Derivatives and Hedging (Topic 815)-Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes
 The amendment permits the use of the Overnight Index Swap (OIS) Rate based on the Secured Overnight Financing Rate (SOFR) as a U.S. benchmark interest rate for hedge accounting purposes.
January 1, 2019
The Company is applying the amendments in this update prospectively for qualifying new or redesignated hedging relationships entered into on or after the effective date.


45
Table of Contents

Standard
Description
Required date of adoption
Effect on Consolidated Financial Statements
Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting
The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees and to apply the guidance therein except for specific guidance on inputs to an option pricing model and the attribution of cost; i.e., the period of time over which share based payment awards vest and the pattern of cost recognition over that period. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide financing to the issuer or awards granted in conjunction with selling goods and services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. Upon adoption, an entity should remeasure liability-classified awards that have not been settled at date of adoption and equity-classified awards for which a measurement date has not been established through a cumulative-effect adjustment to retained earnings as of the first day of the fiscal year of adoption. Upon transition, an entity should measure these nonemployee awards at fair value as of the adoption date but must not remeasure assets that are completed.
January 1, 2019
The Company had applied the guidance of Topic 718 to its accounting for share-based payment awards to its Board of Directors prior to adoption of the amendments, and, therefore, this update did not have an impact on the Company’s Consolidated Financial Statements.
Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities
The amendments in this update require the premium on callable debt securities to be amortized to the earliest call date rather than the maturity date; however, securities held at a discount continue to be amortized to maturity. The amendments apply only to debt securities purchased at a premium that are callable at fixed prices and on preset dates. The amendments more closely align interest income recorded on debt securities held at a premium or discount with the economics of the underlying instrument.
January 1, 2019
The adoption of the amendments did not have an impact on the Company’s Consolidated Financial Statements.


46
Table of Contents

Standard
Description
Required date of adoption
Effect on Consolidated Financial Statements
Standards Not Yet Adopted
Measurement of Credit Losses on Financial Instruments
This ASU changes how entities will report credit losses for financial assets held at amortized cost and available-for-sale debt securities. The amendments replace today’s “incurred loss” approach with a methodology that incorporates macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios based on relevant information about past events, including historical loss experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. The amendments will apply to financial assets such as loans, leases and held-to-maturity investments; and certain off-balance sheet credit exposures. The amendments expand credit quality disclosure requirements. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”, which clarifies the scope of the guidance in the amendments in ASU 2016-13 with respect to operating lease receivables. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments”, which clarifies and corrects certain unintended applications of the guidance contained in each of the amended Topics. Among other amendments, ASU 2019-04 provides measurement alternatives for the allowance on the accrued interest component of amortized cost and clarifies the process to transfer loans or debt securities between measurement categories. The update also provides guidance on the inclusion of expected recoveries in the determination of the allowance, the disclosure of line of credit arrangements in the vintage disclosure table and the effect of extension or renewal options on expected credit losses. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments - Credit Losses (Topic 326): TargetedTransition Relief.” The amendments provide an option to irrevocable elect the fair value option for certain financial assets previously measured at amortized cost. The election does not apply to held-to-maturity securities.
January 1, 2020
The Company will adopt the standard’s provisions as a cumulative-effect adjustment to retained earnings as of January 1, 2020 on a modified retrospective basis. The Company has established a cross departmental working group including Accounting, Finance, Treasury, Credit Risk, Information Technology and Internal Audit. The implementation plan is comprised of multiple items focused on credit models, data management and treasury and accounting considerations. The Company is finalizing model validation as it runs its credit models in parallel and is finalizing its methodology and policy documentation as well as the required disclosures. While the Company is currently unable to reasonably estimate the impact of adopting ASU 2016-13, it is expected that the impact upon adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date.
Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)
This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Specifically, where a cloud computing arrangement includes a license to internal-use software, the software license is accounted for by the customer in accordance with Subtopic 350-40, “Intangibles- Goodwill and Other-Internal-Use Software”.
January 1, 2020

Early adoption permitted
The amendments in this Update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect ASU No. 2018-15 to have a material impact on the Company’s Consolidated Financial Statements.
Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans
The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that no longer are considered cost beneficial, clarifying the specific requirements of disclosures, and adding disclosure requirements identified as relevant.
January 1, 2021

Early adoption permitted
The update is to be applied on a retrospective basis. The Company will evaluate the effect of ASU 2018-14 on disclosures with regard to employee benefit plans but does not expect a material impact on the Company’s Consolidated Financial Statements.


47
Table of Contents

Standard
Description
Required date of adoption
Effect on Consolidated Financial Statements
Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement
The amendments remove the requirement to disclose the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of such transfers and the valuation processes for Level 3 fair value measurements. The ASU modifies the disclosure requirements for investments in certain entities that calculate net asset value and clarify the purpose of the measurement uncertainty disclosure. The ASU adds disclosure requirements about the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.
January 1, 2020

Early adoption permitted to any removed or modified disclosures and delay of adoption of additional disclosures until the effective date
Changes should be applied retrospectively to all periods presented upon the effective date with the exception of the following, which should be applied prospectively: disclosures relating to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the disclosures for uncertainty measurement. The adoption of ASU 2018-13 will not have a material impact on the Company’s Consolidated Financial Statements.
Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
This ASU simplifies subsequent measurement of goodwill by eliminating Step 2 of the impairment test while retaining the option to perform the qualitative assessment for a reporting unit to determine whether the quantitative impairment test is necessary. The ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units.
January 1, 2020

Early adoption permitted for interim or annual goodwill impairment testing dates beginning after January 1, 2017
The update is to be applied prospectively. The Company does not expect ASU No. 2017-04 to have a material impact on the Company’s Consolidated Financial Statements.


18.    Subsequent Events
As defined in FASB ASC 855, “Subsequent Events”, subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued or available to be issued. Financial statements are considered issued when they are widely distributed to stockholders and other financial statement users for general use and reliance in a form and format that complies with U.S. GAAP.
Dividend
On October 23, 2019, the Company declared a cash dividend of $0.11 per share. The $0.11 dividend per share will be paid to stockholders on November 25, 2019, with a record date of November 11, 2019.


48
Table of Contents


ITEM 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward Looking Statements
Certain statements contained herein are not based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which Investors Bancorp, Inc. (the “Company”) operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations or interpretations of regulations affecting financial institutions, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity. Reference is made to Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the additional risk factor included in Part II, Item 1A of this Quarterly Report on Form 10-Q.
The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions, which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events except as may be required by law.

Critical Accounting Policies
We consider accounting policies that require management to exercise significant judgment or discretion or to make significant assumptions that have, or could have, a material impact on the carrying value of certain assets or on income to be critical accounting policies. As of September 30, 2019, we consider the following to be our critical accounting policies.
Allowance for Loan Losses. The allowance for loan losses is the estimated amount considered necessary to cover credit losses inherent in the loan portfolio at the balance sheet date. The allowance is established through the provision for loan losses that is charged against income. The methodology for determining the allowance for loan 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 economic environment that could result in changes to the amount of the recorded allowance for loan losses.
The allowance for loan losses has been determined in accordance with U.S. generally accepted accounting principles, under which we are required to maintain an allowance for probable losses at the balance sheet date. We are responsible for the timely and periodic determination of the amount of the allowance required. We believe that our allowance for loan losses is adequate to cover specifically identifiable losses, as well as estimated losses inherent in our portfolio for which certain losses are probable but not specifically identifiable. Loans acquired are marked to fair value on the date of acquisition with no valuation allowance reflected in the allowance for loan losses. In conjunction with the quarterly evaluation of the adequacy of the allowance for loan losses, the Company performs an analysis on acquired loans to determine whether or not an allowance should be ascribed to those loans.
Management performs a quarterly evaluation of the adequacy of the allowance for loan losses. The analysis of the allowance for loan losses has two components: collectively evaluated for impairment and individually evaluated for impairment. Specific allocations are made for loans determined to be impaired. A loan is deemed to be impaired if it is a commercial loan with an outstanding balance greater than $1.0 million and on non-accrual status, loans modified in a troubled debt restructuring (“TDR”), and other commercial loans greater than $1.0 million if management has specific information that it is probable it will not collect all amounts due under the contractual terms of the loan agreement. Impairment is measured by determining the present value of expected future cash flows or, for collateral-dependent loans, the fair value of the collateral adjusted for market conditions and selling expenses. The allowance for loans collectively evaluated for impairment is determined by applying quantitative loss factors to the loans collectively evaluated for impairment segregated by type of loan, risk rating (if applicable) and payment history. In addition, the Company’s residential portfolio is subdivided between fixed and adjustable rate loans as adjustable rate loans are deemed to be subject to more credit risk if interest rates rise. Quantitative loss factors for each loan segment are generally determined

49
Table of Contents

based on the Company’s historical loss experience over an appropriate look-back period. Additionally, management assesses the loss emergence period for the expected losses of each loan segment and adjusts each quantitative loss factor accordingly. The loss emergence period is the estimated time from the date of a loss event (such as a personal bankruptcy) to the actual recognition of the loss (typically via the first full or partial loan charge-off), and is determined based upon a study of the Company’s past loss experience by loan segment. The quantitative loss factors may also be adjusted to account for qualitative factors, both internal and external to the Company, that are likely to cause estimated credit losses inherent in the portfolio to differ from historical loss experience. This evaluation is based on among other things, loan and delinquency trends, general economic conditions, credit concentrations, industry trends and lending and credit management policies and procedures, but is inherently subjective as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be different than the allowance for loan losses we have established which could have a material negative effect on our financial results.
Purchased Credit-Impaired (“PCI”) loans, are loans acquired at a discount due, in part, to credit quality. PCI loans are accounted for in accordance with Accounting Standards Codification (“ASC”) Subtopic 310-30 and are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance (i.e., the allowance for loan losses). The difference between the undiscounted cash flows expected at acquisition and the initial carrying amount (fair value) of the PCI loans, or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of the loans. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment, as a loss accrual or a valuation allowance. Reclassifications of the non-accretable difference to the accretable yield may occur subsequent to the loan acquisition dates due to increases in expected cash flows of the loans and would result in an increase in yield on a prospective basis. The Company analyzes the actual cash flow versus the forecasts and any adjustments to credit loss expectations are made based on actual loss recognized as well as changes in the probability of default. For a period in which cash flows aren’t reforecasted, prior period’s estimated cash flows are adjusted to reflect the actual cash received and credit events that occurred during the current reporting period.
On a quarterly basis, management reviews the current status of various loan assets in order to evaluate the adequacy of the allowance for loan losses. In this evaluation process, specific loans are analyzed to determine their potential risk of loss. Loans determined to be impaired are evaluated for potential loss exposure. Any shortfall results in a recommendation of a specific allowance or charge-off if the likelihood of loss is evaluated as probable. To determine the adequacy of collateral on a particular loan, an estimate of the fair value of the collateral is based on the most current appraised value available for real property or a discounted cash flow analysis on a business. The appraised value for real property is then reduced to reflect estimated liquidation expenses.
The allowance contains reserves identified as unallocated. These reserves reflect management’s attempt to provide for the imprecision and the uncertainty that is inherent in estimates of probable credit losses.
Our lending emphasis has been the origination of multi-family loans, commercial real estate loans, commercial and industrial loans, one- to four-family residential mortgage loans secured by one- to four-family residential real estate, construction loans, and consumer loans, the majority of which are home equity loans, home equity lines of credit and cash surrender value lending on life insurance contracts. These activities resulted in a concentration of loans secured by real estate property and businesses located in New Jersey and New York. Based on the composition of our loan portfolio, we believe the primary risks to our loan portfolio are increases in interest rates, a decline in the general economy, and declines in real estate market values in New Jersey, New York and surrounding states. Any one or combination of these events may adversely affect our loan portfolio resulting in increased delinquencies, loan losses and future levels of loan loss provisions. As a substantial amount of our loan portfolio is collateralized by real estate, appraisals of the underlying value of property securing loans are critical in determining the amount of the allowance required for specific loans. Assumptions for appraisal valuations are instrumental in determining the value of properties. Negative changes to appraisal assumptions could significantly impact the valuation of a property securing a loan and the related allowance determined. The assumptions supporting such appraisals are carefully reviewed to determine that the resulting values reasonably reflect amounts realizable on the related loans.
The Company obtains an appraisal for all commercial loans that are collateral dependent upon origination. Updated appraisals are generally obtained for substandard loans $1.0 million or greater and special mention loans $2.0 million or greater in the process of collection by the Company’s special assets department. This is done in order to determine the specific reserve or charge off needed. As part of the allowance for loan losses process, the Company reviews each collateral dependent commercial loan classified as non-accrual and/or impaired and assesses whether there has been an adverse change in the collateral value supporting the loan. The Company utilizes information from its commercial lending officers and its credit department and special assets department’s knowledge of changes in real estate conditions in our lending area to identify if possible deterioration of collateral value has occurred. Based on the severity of the changes in market conditions, management determines if an updated appraisal is warranted or if downward adjustments to the previous appraisal are warranted. If it is determined that the deterioration of the collateral value

50
Table of Contents

is significant enough to warrant ordering a new appraisal, an estimate of the downward adjustments to the existing appraised value is used in assessing if additional specific reserves are necessary until the updated appraisal is received.
For homogeneous residential mortgage loans, the Company’s policy is to obtain an appraisal upon the origination of the loan and an updated appraisal in the event a loan becomes 90 days delinquent. Thereafter, the appraisal is updated every two years if the loan remains in non-performing status and the foreclosure process has not been completed. Management adjusts the appraised value of residential loans to reflect estimated selling costs and declines in the real estate market.
Management believes the potential risk for outdated appraisals for impaired and other non-performing loans has been mitigated due to the fact that the loans are individually assessed to determine that the loan’s carrying value is not in excess of the fair value of the collateral. Loans are generally charged off after an analysis is completed which indicates that collectability of the full principal balance is in doubt.
Although we believe we have established and maintained the allowance for loan losses at adequate levels, additions may be necessary based on the growth and composition of the loan portfolio, the level of loan delinquency and the economic conditions in our lending area. Management uses relevant information available; however, the level of the allowance for loan losses remains an estimate that is subject to significant judgment and short-term change. In addition, the Federal Deposit Insurance Corporation and the New Jersey Department of Banking and Insurance, as an integral part of their examination process, will periodically review our allowance for loan losses. Such agencies may require us to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination.
Derivative Financial Instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value.  The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges.  Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge.  The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.  
Executive Summary
Since the Company’s initial public offering in 2005, we have transitioned from a wholesale thrift business to a retail commercial bank. This transition has been primarily accomplished by increasing the amount of our commercial loans and core deposits (savings, checking and money market accounts). Our transformation can be attributed to a number of factors, including organic growth, de novo branch openings, bank and branch acquisitions, as well as product expansion. We believe the attractive markets we operate in, namely, New Jersey and the greater New York metropolitan area, will continue to provide us with growth opportunities. Our primary focus is to build and develop profitable customer relationships across all lines of business, both consumer and commercial.
Our results of operations depend primarily on net interest income, which is directly impacted by the interest rate environment. Net interest income is the difference between the interest income we earn on our interest-earning assets, primarily loans and investment securities, and the interest we pay on our interest-bearing liabilities, primarily interest-bearing transaction accounts, time deposits, and borrowed funds. Net interest income is affected by the level and direction of interest rates, the shape of the market yield curve, the timing of the placement and the repricing of interest-earning assets and interest-bearing liabilities on our balance sheet, and the rate of prepayments on our mortgage-related assets.
The flat yield curve, combined with competitive pricing in both the loan and deposit markets, continues to create a challenging net interest margin environment.  We continue to manage our interest rate risk against a backdrop of interest rate uncertainty.  Should the yield curve steepen, we may experience an improvement in net interest income, particularly if short-term interest rates do not increase. If short-term interest rates and related deposit competition increase, we may be subject to net interest margin compression.  
Our results of operations are also significantly affected by general economic conditions.  While the domestic consumer continues to generally benefit from improved housing and employment metrics, the velocity of economic growth, domestically and internationally, is challenged by global trade discord and pockets of socioeconomic and political unrest. In addition, our tax rate was negatively impacted by the enacted State of New Jersey tax legislation.

51
Table of Contents

Total assets increased by $496.2 million, or 1.9%, to $26.73 billion at September 30, 2019 from $26.23 billion at December 31, 2018. Effective January 1, 2019, we adopted new accounting guidance that requires leases to be recognized on our Consolidated Balance Sheets as a right-of-use asset and a lease liability. Our operating lease right-of-use assets and operating lease liabilities were $179.6 million and $189.9 million, respectively, at September 30, 2019. Net loans increased by $138.1 million, or 0.6%, to $21.52 billion at September 30, 2019 from $21.38 billion at December 31, 2018. Our ongoing strategy is to continue to maintain a well-diversified loan portfolio and offer enhanced commercial products to continue to be competitive in our markets as we continue to focus on higher yielding commercial and industrial loans and deemphasis lower yielding real estate loans. We understand the heightened regulatory sensitivity around commercial real estate and multi-family concentrations, and continue to be diligent in our underwriting and credit risk monitoring of these portfolios.  The overall level of non-performing loans remains low compared to our national and regional peers; however, our commercial real estate concentration is above 300% of regulatory capital and therefore subjects us to heightened regulatory scrutiny.
On July 24, 2019, we announced the signing of a definitive merger agreement with Gold Coast Bancorp, Inc. (“Gold Coast”). As of September 30, 2019, Gold Coast had assets of $562.2 million, loans of $461.5 million and deposits of $463.5 million and operated six branches in Nassau and Suffolk counties in suburban Long Island as well as one branch in Brooklyn, NY. The transaction is subject to customary closing conditions. See Note 3, Business Combinations, for further details regarding the merger agreement.
Capital management is a key component of our business strategy. We continue to manage our capital through a combination of organic growth, acquisitions, stock repurchases and cash dividends. Effective capital management and prudent growth allows us to effectively leverage the Company’s capital, while being mindful of tangible book value for stockholders. Our capital to total assets ratio has decreased to 10.97% at September 30, 2019 from 11.46% at December 31, 2018. Since the commencement of our first stock repurchase plan in March 2015 through September 30, 2019, the Company has repurchased a total of 99.8 million shares at an average cost of $12.06 per share, totaling $1.20 billion. For the nine months ended September 30, 2019, stockholders’ equity was impacted by the repurchase of 12.0 million shares of common stock for $140.2 million and cash dividends paid of $0.33 per share totaling $91.9 million. These reductions to stockholders’ equity were partially offset by net income of $146.8 million and $20.8 million of share-based plan activity.
During 2019, we have made investments in our digital and technology platforms which will enhance sales practices and improve efficiencies in our business. We continue to enhance our employee training and development programs, as well as our risk management and operational infrastructure as our Company grows and our business evolves. We will continue to execute our business strategies with a focus on prudent and opportunistic growth while striving to produce financial results that will create value for our stockholders. We intend to continue to grow our business by successfully attracting deposits, identifying favorable loan and investment opportunities, acquiring other banks and non-bank entities, enhancing our market presence and product offerings as well as continuing to invest in our people.
Comparison of Financial Condition at September 30, 2019 and December 31, 2018
Total Assets. Total assets increased by $496.2 million, or 1.9%, to $26.73 billion at September 30, 2019 from $26.23 billion at December 31, 2018. Net loans increased by $138.1 million, or 0.6%, to $21.52 billion at September 30, 2019 from $21.38 billion at December 31, 2018. Total securities increased by $84.7 million, or 2.3%, to $3.77 billion at September 30, 2019 from December 31, 2018. Operating lease right-of-use assets were $179.6 million at September 30, 2019.

52
Table of Contents

Net Loans. Net loans increased by $138.1 million, or 0.6%, to $21.52 billion at September 30, 2019 from $21.38 billion at December 31, 2018. The detail of the loan portfolio (including PCI loans) is below:

 
September 30, 2019
 
December 31, 2018
 
(Dollars in thousands)
Commercial loans:
 
 
 
Multi-family loans
$
7,995,095

 
8,165,187

Commercial real estate loans
4,771,928

 
4,786,825

Commercial and industrial loans
2,681,577

 
2,389,756

Construction loans
289,857

 
227,015

Total commercial loans
15,738,457

 
15,568,783

Residential mortgage loans
5,307,412

 
5,351,115

Consumer and other
700,341

 
707,866

Total loans
21,746,210

 
21,627,764

Deferred fees, premiums and other, net
(1,991
)
 
(13,811
)
Allowance for loan losses
(227,985
)
 
(235,817
)
Net loans
$
21,516,234

 
21,378,136

During the nine months ended September 30, 2019, we originated $794.3 million in commercial and industrial loans, $634.1 million in multi-family loans, $461.3 million in commercial real estate loans, $355.2 million in residential loans, $61.0 million in consumer and other loans and $27.6 million in construction loans. The growth in the loan portfolio reflects our continued focus on growing and diversifying our loan portfolio. A significant portion of our commercial loan portfolio, including commercial and industrial loans, are secured by commercial real estate and are primarily on properties and businesses located in New Jersey and New York.
One of the Bank’s key operating objectives has been, and continues to be, maintaining a high level of asset quality. The Bank maintains sound credit standards for new loan originations and purchases. We do not originate or purchase sub-prime loans, negative amortization loans or option ARM loans. Our portfolio contains interest-only and no income verification residential mortgage loans. At September 30, 2019, interest-only residential and consumer loans totaled $33.4 million, which represented less than 1% of the residential and consumer portfolios. We no longer originate residential mortgage loans without verifying income. At September 30, 2019, these loans totaled $151.7 million. From time to time and for competitive purposes, we originate interest-only commercial real estate and multi-family loans. At September 30, 2019, these loans totaled $1.10 billion. As part of its underwriting, these loans are evaluated as fully amortizing for risk classification purposes, with the interest-only period ranging from one to ten years. In addition, the Company evaluates its policy limits on a regular basis. We believe these criteria adequately control the potential risks of such loans and that adequate provisions for loan losses are provided for all known and inherent risks.
We also purchase mortgage loans from correspondent entities including other banks and mortgage bankers. During the nine months ended September 30, 2019, we purchased loans totaling $258.0 million from these entities. In addition to the loans originated for our portfolio, we originated residential mortgage loans for sale to third parties totaling $160.3 million during the nine months ended September 30, 2019.

53
Table of Contents

    The following table sets forth non-accrual loans (excluding PCI loans and loans held-for-sale) on the dates indicated as well as certain asset quality ratios:

 
September 30, 2019
 
June 30, 2019
 
March 31, 2019
 
December 31, 2018
 
September 30, 2018
 
# of Loans
 
Amount
 
# of Loans
 
Amount
 
# of Loans
 
Amount
 
# of Loans
 
Amount
 
# of Loans
 
Amount
 
(dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Multi-family
6

 
$
19.6

 
14

 
$
34.1

 
14

 
$
34.1

 
15

 
$
33.9

 
3

 
$
2.6

Commercial real estate
30

 
12.3

 
27

 
8.1

 
32

 
9.8

 
35

 
12.4

 
39

 
15.5

Commercial and industrial
16

 
12.0

 
13

 
18.0

 
14

 
17.2

 
14

 
19.4

 
14

 
19.8

Construction
—

 
—

 
1

 
0.2

 
1

 
0.2

 
1

 
0.2

 
1

 
0.2

Total commercial loans
52

 
43.9

 
55

 
60.4

 
61

 
61.3

 
65

 
65.9

 
57

 
38.1

Residential and consumer
261

 
48.2

 
275

 
51.2

 
296

 
56.4

 
320

 
59.0

 
347

 
66.3

Total non-accrual loans
313

 
$
92.1

 
330

 
$
111.6

 
357

 
$
117.7

 
385

 
$
124.9

 
404

 
$
104.4

Accruing troubled debt restructured loans
58

 
$
12.5

 
56

 
$
12.2

 
54

 
$
13.6

 
54

 
$
13.6

 
59

 
$
13.2

Non-accrual loans to total loans
 
 
0.42
%
 
 
 
0.51
%
 
 
 
0.54
%
 
 
 
0.58
%
 
 
 
0.50
%
Allowance for loan losses as a percent of non-accrual loans
 
 
247.62
%
 
 
 
207.83
%
 
 
 
199.44
%
 
 
 
188.78
%
 
 
 
221.06
%
Allowance for loan losses as a percent of total loans
 
 
1.05
%
 
 
 
1.05
%
 
 
 
1.08
%
 
 
 
1.09
%
 
 
 
1.10
%
Total non-accrual loans were $92.1 million at September 30, 2019 compared to $111.6 million at June 30, 2019 and $124.9 million at December 31, 2018. Included in non-accrual loans at September 30, 2019 were $8.4 million of loans that were classified as non-accrual which were performing in accordance with their contractual terms. Classified (substandard) loans as a percent of total loans increased to 3.48% at September 30, 2019 from 3.18% at December 31, 2018. We continue to proactively and diligently work to resolve our troubled loans.
At September 30, 2019, there were $37.3 million of loans deemed as TDRs, of which $27.8 million were residential and consumer loans, $6.9 million were commercial and industrial loans and $2.6 million were commercial real estate loans. TDRs of $12.5 million were classified as accruing and $24.8 million were classified as non-accrual at September 30, 2019.
In addition to non-accrual loans, we continue to monitor our portfolio for potential problem loans. Potential problem loans are defined as loans about which we have concerns as to the ability of the borrower to comply with the current loan repayment terms and which may cause the loan to be placed on non-accrual status. As of September 30, 2019, the Company has deemed potential problem loans, excluding PCI loans, totaling $55.1 million, which is comprised of 10 commercial real estate loans totaling $21.0 million, 11 multi-family loans totaling $19.5 million and 16 commercial and industrial loans totaling $14.6 million. Management is actively monitoring all of these loans.
The ratio of non-accrual loans to total loans was 0.42% at September 30, 2019 compared to 0.58% at December 31, 2018. The allowance for loan losses as a percentage of non-accrual loans was 247.62% at September 30, 2019 compared to 188.78% at December 31, 2018. At September 30, 2019, our allowance for loan losses as a percentage of total loans was 1.05% compared to 1.09% at December 31, 2018.
At September 30, 2019, loans meeting the Company’s definition of an impaired loan were primarily collateral dependent loans totaling $64.3 million, of which $15.0 million had a specific allowance for credit losses of $2.0 million and $49.3 million had no specific allowance for credit losses. At December 31, 2018, loans meeting the Company’s definition of an impaired loan

54
Table of Contents

were primarily collateral dependent loans totaling $86.7 million, of which $15.8 million had a related allowance for credit losses of $2.2 million and $70.9 million had no related allowance for credit losses.
The allowance for loan losses decreased by $7.8 million to $228.0 million at September 30, 2019 from $235.8 million at December 31, 2018. Our allowance for loan losses at September 30, 2019 was positively impacted by improved credit quality, including the level of non-accrual loans and charge-offs/recoveries, and modest loan growth. Future increases in the allowance for loan losses may be necessary based on the growth and composition of the loan portfolio, the level of loan delinquency and the economic conditions in our lending area.
The following table sets forth the allowance for loan losses at September 30, 2019 and December 31, 2018 allocated by loan category and the percent of loans in each category to total loans at the dates indicated. The allowance for loan losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories.
 
 
September 30, 2019
 
December 31, 2018
 
Allowance for
Loan Losses
 
Percent of Loans
in Each Category
to Total Loans
 
Allowance for
Loan Losses
 
Percent of Loans
in Each Category
to Total Loans
 
(Dollars in thousands)
End of period allocated to:
 
 
 
 
 
 
 
Multi-family loans
$
75,776

 
36.8
%
 
$
82,876

 
37.7
%
Commercial real estate loans
48,142

 
22.0
%
 
48,449

 
22.1
%
Commercial and industrial loans
71,445

 
12.3
%
 
71,084

 
11.1
%
Construction loans
8,962

 
1.3
%
 
7,486

 
1.1
%
Residential mortgage loans
19,223

 
24.4
%
 
20,776

 
24.7
%
Consumer and other loans
2,479

 
3.2
%
 
3,102

 
3.3
%
Unallocated
1,958

 
—

 
2,044

 
—

Total allowance
$
227,985

 
100.0
%
 
$
235,817

 
100.0
%
Securities. Securities are held primarily for liquidity, interest rate risk management and yield enhancement. Our Investment Policy requires that investment transactions conform to Federal and New Jersey State investment regulations. Our investments purchased may include, but are not limited to, U.S. Treasury obligations, securities issued by various Federal Agencies, State and Municipal subdivisions, mortgage-backed securities, certain certificates of deposit of insured financial institutions, overnight and short-term loans to other banks, investment grade corporate debt instruments, and mutual funds. In addition, the Company may invest in equity securities subject to certain limitations. Purchase decisions are based upon a thorough analysis of each security to determine if it conforms to our overall asset/liability management objectives. The analysis must consider its effect on our risk-based capital measurement, prospects for yield and/or appreciation and other risk factors. Debt securities are classified as held-to-maturity or available-for-sale when purchased.
At September 30, 2019, our securities portfolio represented 14.1% of our total assets. Securities, in the aggregate, increased by $84.7 million, or 2.3%, to $3.77 billion at September 30, 2019 from December 31, 2018. This increase was primarily a result of purchases, partially offset by sales and paydowns.
Stock in the Federal Home Loan Bank, Bank Owned Life Insurance and Other Assets. The amount of stock we own in the FHLB increased by $13.8 million, or 5.3%, to $274.0 million at September 30, 2019 from $260.2 million at December 31, 2018. The amount of stock we own in the FHLB is primarily related to the balance of our outstanding borrowings from the FHLB. Bank owned life insurance was $216.9 million at September 30, 2019 and $211.9 million at December 31, 2018. Other assets were $69.8 million at September 30, 2019 and $29.3 million at December 31, 2018.
Deposits.  At September 30, 2019, deposits totaled $17.67 billion, representing 74.3% of our total liabilities. Our deposit strategy is focused on attracting core deposits (savings, checking and money market accounts), resulting in a deposit mix of lower cost core products. We remain committed to our plan of attracting more core deposits because core deposits represent a more stable source of low cost funds and may be less sensitive to changes in market interest rates.
We have a suite of commercial deposit products, designed to appeal to small and mid-sized businesses and non-profit organizations. Interest rates, maturity terms, service fees and withdrawal penalties are all reviewed on a periodic basis. Deposit rates and terms are based primarily on our current operating strategies, market rates, liquidity requirements, competitive forces and growth goals. We also rely on personalized customer service, long-standing relationships with customers and an active marketing program to attract and retain deposits.

55
Table of Contents

Deposits increased by $92.5 million, or 0.5%, from $17.58 billion at December 31, 2018 to $17.67 billion at September 30, 2019 primarily driven by increases in interest-bearing checking and money market accounts, partially offset by decreases in non-interest checking, savings and time deposit accounts. Checking accounts increased $216.7 million to $7.54 billion at September 30, 2019 from $7.32 billion at December 31, 2018. Core deposits represented approximately 75% of our total deposit portfolio at September 30, 2019 compared to 74% at December 31, 2018.
The following table sets forth the distribution of total deposit accounts, by account type, at the dates indicated:
 
September 30, 2019
 
December 31, 2018
 
Balance
 
Percent of Total Deposit
 
Balance
 
Percent of Total Deposit
 
(Dollars in thousands)
Non-interest bearing:
 
 
 
 
 
 
 
Checking accounts
$
2,433,152

 
13.8
%
 
$
2,535,848

 
14.4
%
Interest-bearing:
 
 
 
 
 
 
 
Checking accounts
5,103,007

 
28.9
%
 
4,783,563

 
27.2
%
Money market deposits
3,674,032

 
20.8
%
 
3,641,070

 
20.7
%
Savings
1,963,724

 
11.1
%
 
2,048,941

 
11.7
%
Certificates of deposit
4,498,841

 
25.4
%
 
4,570,847

 
26.0
%
Total Deposits
$
17,672,756

 
100.0
%
 
$
17,580,269

 
100.0
%
Borrowed Funds.  Borrowings are primarily with the FHLB and are collateralized by our residential and commercial mortgage portfolios. Borrowed funds increased by $258.9 million, or 4.8%, to $5.69 billion at September 30, 2019 from $5.44 billion at December 31, 2018 to help fund the growth of the loan portfolio.
Stockholders’ Equity. Stockholders’ equity decreased by $74.0 million to $2.93 billion at September 30, 2019 from $3.01 billion at December 31, 2018. The decrease was primarily attributed to the repurchase of 12.0 million shares of common stock for $140.2 million and cash dividends paid of $0.33 per share totaling $91.9 million during the nine months ended September 30, 2019. These reductions to stockholders’ equity were partially offset by net income of $146.8 million and share-based plan activity of $20.8 million for the nine months ended September 30, 2019.
Analysis of Net Interest Income
Net interest income represents the difference between income we earn on our interest-earning assets and the expense we pay on interest-bearing liabilities. Net interest income depends on the volume of interest-earning assets and interest-bearing liabilities and the interest rates earned on such assets and paid on such liabilities.
Average Balances and Yields. The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments were made, as the effect thereof was not material. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances, however interest receivable on these loans have been fully reserved for and not included in interest income. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.


56
Table of Contents

 
 
Three Months Ended September 30,
 
 
2019
 
2018
 
 
Average
Outstanding
Balance
 
Interest
Earned/
Paid
 
Average
Yield/
Rate
 
Average
Outstanding
Balance
 
Interest
Earned/
Paid
 
Average
Yield/
Rate
 
 
(Dollars in thousands)
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits
 
$
224,882

 
$
821

 
1.46
%
 
$
227,346

 
$
677

 
1.19
%
Equity securities
 
6,001

 
36

 
2.40
%
 
5,802

 
32

 
2.21
%
Debt securities available-for-sale
 
2,591,055

 
18,167

 
2.80
%
 
2,015,096

 
11,122

 
2.21
%
Debt securities held-to-maturity
 
1,131,194

 
9,340

 
3.30
%
 
1,638,722

 
11,383

 
2.78
%
Net loans
 
21,722,751

 
231,734

 
4.27
%
 
20,644,566

 
216,516

 
4.20
%
Stock in FHLB
 
279,356

 
4,456

 
6.38
%
 
246,037

 
4,296

 
6.98
%
Total interest-earning assets
 
25,955,239

 
264,554

 
4.08
%
 
24,777,569

 
244,026

 
3.94
%
Non-interest-earning assets
 
992,118

 
 
 
 
 
708,904

 
 
 
 
Total assets
 
$
26,947,357

 
 
 
 
 
$
25,486,473

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Savings deposits
 
$
1,958,748

 
$
4,377

 
0.89
%
 
$
2,142,642

 
$
3,462

 
0.65
%
Interest-bearing checking
 
4,894,643

 
21,094

 
1.72
%
 
4,449,767

 
15,736

 
1.41
%
Money market accounts
 
3,750,846

 
16,065

 
1.71
%
 
3,747,501

 
13,043

 
1.39
%
Certificates of deposit
 
4,756,086

 
26,436

 
2.22
%
 
4,562,549

 
19,682

 
1.73
%
Total interest-bearing deposits
 
15,360,323

 
67,972

 
1.77
%
 
14,902,459

 
51,923

 
1.39
%
Borrowed funds
 
5,756,197

 
32,130

 
2.23
%
 
4,897,119

 
25,177

 
2.06
%
Total interest-bearing liabilities
 
21,116,520

 
100,102

 
1.90
%
 
19,799,578

 
77,100

 
1.56
%
Non-interest-bearing liabilities
 
2,892,067

 
 
 
 
 
2,610,074

 
 
 
 
Total liabilities
 
24,008,587

 
 
 
 
 
22,409,652

 
 
 
 
Stockholders’ equity
 
2,938,770

 
 
 
 
 
3,076,821

 
 
 
 
Total liabilities and stockholders’ equity
 
$
26,947,357

 
 
 
 
 
$
25,486,473

 
 
 
 
Net interest income
 
 
 
$
164,452

 
 
 
 
 
$
166,926

 
 
Net interest rate spread(1)
 
 
 
 
 
2.18
%
 
 
 
 
 
2.38
%
Net interest-earning assets(2)
 
$
4,838,719

 
 
 
 
 
$
4,977,991

 
 
 
 
Net interest margin(3)
 
 
 
 
 
2.53
%
 
 
 
 
 
2.69
%
Ratio of interest-earning assets to total interest-bearing liabilities
 
1.23

 
 
 
 
 
1.25

 
 
 
 

(1)
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(2)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3)
Net interest margin represents net interest income divided by average total interest-earning assets.

57
Table of Contents

 
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
 
Average
Outstanding
Balance
 
Interest
Earned/
Paid
 
Average
Yield/
Rate
 
Average
Outstanding
Balance
 
Interest
Earned/
Paid
 
Average
Yield/
Rate
 
 
(Dollars in thousands)
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits
 
$
193,427

 
$
1,965

 
1.35
%
 
$
201,743

 
$
1,541

 
1.02
%
Equity securities
 
5,905

 
108

 
2.44
%
 
5,740

 
100

 
2.32
%
Debt securities available-for-sale
 
2,317,685

 
49,801

 
2.86
%
 
2,008,724

 
32,803

 
2.18
%
Debt securities held-to-maturity
 
1,379,982

 
31,008

 
3.00
%
 
1,696,718

 
34,594

 
2.72
%
Net loans
 
21,596,000

 
684,086

 
4.22
%
 
20,337,264

 
633,029

 
4.15
%
Stock in FHLB
 
273,885

 
12,871

 
6.27
%
 
246,858

 
11,928

 
6.44
%
Total interest-earning assets
 
25,766,884

 
779,839

 
4.04
%
 
24,497,047

 
713,995

 
3.89
%
Non-interest-earning assets
 
964,031

 
 
 
 
 
716,163

 
 
 
 
Total assets
 
$
26,730,915

 
 
 
 
 
$
25,213,210

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Savings deposits
 
$
1,966,427

 
$
12,556

 
0.85
%
 
$
2,206,307

 
$
9,705

 
0.59
%
Interest-bearing checking
 
4,912,085

 
65,295

 
1.77
%
 
4,581,974

 
43,372

 
1.26
%
Money market accounts
 
3,691,378

 
46,126

 
1.67
%
 
3,897,632

 
32,832

 
1.12
%
Certificates of deposit
 
4,757,446

 
77,245

 
2.16
%
 
3,997,059

 
44,457

 
1.48
%
Total interest-bearing deposits
 
15,327,336

 
201,222

 
1.75
%
 
14,682,972

 
130,366

 
1.18
%
Borrowed funds
 
5,566,273

 
92,319

 
2.21
%
 
4,875,857

 
72,918

 
1.99
%
Total interest-bearing liabilities
 
20,893,609

 
293,541

 
1.87
%
 
19,558,829

 
203,284

 
1.39
%
Non-interest-bearing liabilities
 
2,881,242

 
 
 
 
 
2,551,722

 
 
 
 
Total liabilities
 
23,774,851

 
 
 
 
 
22,110,551

 
 
 
 
Stockholders’ equity
 
2,956,064

 
 
 
 
 
3,102,659

 
 
 
 
Total liabilities and stockholders’ equity
 
$
26,730,915

 
 
 
 
 
$
25,213,210

 
 
 
 
Net interest income
 
 
 
$
486,298

 
 
 
 
 
$
510,711

 
 
Net interest rate spread(1)
 
 
 
 
 
2.17
%
 
 
 
 
 
2.50
%
Net interest-earning assets(2)
 
$
4,873,275

 
 
 
 
 
$
4,938,218

 
 
 
 
Net interest margin(3)
 
 
 
 
 
2.52
%
 
 
 
 
 
2.78
%
Ratio of interest-earning assets to total interest-bearing liabilities
 
1.23

 
 
 
 
 
1.25

 
 
 
 

(1)
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(2)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3)
Net interest margin represents net interest income divided by average total interest-earning assets.


58
Table of Contents

Comparison of Operating Results for the Three and Nine Months Ended September 30, 2019 and 2018
Net Income. Net income for the three months ended September 30, 2019 was $52.0 million compared to net income of $54.2 million for the three months ended September 30, 2018. Net income for the nine months ended September 30, 2019 was $146.8 million compared to net income of $169.2 million for the nine months ended September 30, 2018.
Net Interest Income. Net interest income decreased by $2.5 million, or 1.5%, to $164.5 million for the three months ended September 30, 2019 from $166.9 million for the three months ended September 30, 2018. The net interest margin decreased 16 basis points to 2.53% for the three months ended September 30, 2019 from 2.69% for the three months ended September 30, 2018.
Net interest income decreased by $24.4 million, or 4.8%, to $486.3 million for the nine months ended September 30, 2019 from $510.7 million for the nine months ended September 30, 2018. The net interest margin decreased 26 basis points to 2.52% for the nine months ended September 30, 2019 from 2.78% for the nine months ended September 30, 2018.
Total interest and dividend income increased by $20.5 million, or 8.4%, to $264.6 million for the three months ended September 30, 2019. Interest income on loans increased by $15.2 million, or 7.0%, to $231.7 million for the three months ended September 30, 2019 as a result of a $1.08 billion increase in the average balance of net loans to $21.72 billion, primarily attributed to loan originations, partially offset by paydowns and payoffs. The weighted average yield on net loans increased 7 basis points to 4.27%. Prepayment penalties, which are included in interest income, totaled $5.2 million for the three months ended September 30, 2019 compared to $4.6 million for the three months ended September 30, 2018. Interest income on all other interest-earning assets, excluding loans, increased by $5.3 million, or 19.3%, to $32.8 million for the three months ended September 30, 2019 which is attributed to an increase in the weighted average yield on interest-earning assets, excluding loans, of 44 basis points to 3.10%. The average balance of all other interest-earning assets, excluding loans, increased $99.5 million to $4.23 billion for the three months ended September 30, 2019.
Total interest and dividend income increased by $65.8 million, or 9.2%, to $779.8 million for the nine months ended September 30, 2019. Interest income on loans increased by $51.1 million, or 8.1%, to $684.1 million for the nine months ended September 30, 2019 as a result of a $1.26 billion increase in the average balance of net loans to $21.60 billion, primarily attributed to loan originations, partially offset by paydowns and payoffs. The weighted average yield on net loans increased 7 basis points to 4.22%. Prepayment penalties, which are included in interest income, totaled $11.4 million for the nine months ended September 30, 2019 compared to $15.4 million for the nine months ended September 30, 2018. Interest income on all other interest-earning assets, excluding loans, increased by $14.8 million, or 18.3%, to $95.8 million for the nine months ended September 30, 2019 which is attributed to an increase in the weighted average yield on interest-earning assets, excluding loans, of 46 basis points to 3.06%. The average balance of all other interest-earning assets, excluding loans, increased $11.1 million to $4.17 billion for the nine months ended September 30, 2019.
Total interest expense increased by $23.0 million, or 29.8%, to $100.1 million for the three months ended September 30, 2019. Interest expense on interest-bearing deposits increased $16.0 million, or 30.9%, to $68.0 million for the three months ended September 30, 2019. The weighted average cost of interest-bearing deposits increased 38 basis points to 1.77% for the three months ended September 30, 2019. In addition, the average balance of total interest-bearing deposits increased $457.9 million, or 3.1%, to $15.36 billion for the three months ended September 30, 2019. Interest expense on borrowed funds increased by $7.0 million, or 27.6%, to $32.1 million for the three months ended September 30, 2019. The average balance of borrowed funds increased $859.1 million, or 17.5%, to $5.76 billion for the three months ended September 30, 2019. In addition, the weighted average cost of borrowings increased 17 basis points to 2.23% for the three months ended September 30, 2019.
Total interest expense increased by $90.3 million, or 44.4%, to $293.5 million for the nine months ended September 30, 2019. Interest expense on interest-bearing deposits increased $70.9 million, or 54.4%, to $201.2 million for the nine months ended September 30, 2019. The weighted average cost of interest-bearing deposits increased 57 basis points to 1.75% for the nine months ended September 30, 2019. In addition, the average balance of total interest-bearing deposits increased $644.4 million, or 4.4%, to $15.33 billion for the nine months ended September 30, 2019. Interest expense on borrowed funds increased by $19.4 million, or 26.6%, to $92.3 million for the nine months ended September 30, 2019. The average balance of borrowed funds increased $690.4 million, or 14.2%, to $5.57 billion for the nine months ended September 30, 2019. In addition, the weighted average cost of borrowings increased 22 basis points to 2.21% for the nine months ended September 30, 2019.
Provision for Loan Losses. Our provision for loan losses is primarily a result of the inherent credit risk in our overall portfolio, the growth and composition of the loan portfolio, and the level of non-accrual loans and charge-offs/recoveries. At September 30, 2019, our allowance for loan losses and related year-to-date provision were positively impacted by improved credit quality, including the level of non-accrual loans and charge-offs/recoveries, and modest loan growth. For the three months ended September 30, 2019, our provision for loan losses was a $2.5 million reduction to the allowance for loan losses, compared to an addition to the allowance for loan losses of $2.0 million for the three months ended September 30, 2018. For the three months

59
Table of Contents

ended September 30, 2019, net charge-offs were $1.5 million compared to $2.0 million for the three months ended September 30, 2018. Our provision for loan losses was a $2.5 million reduction to the allowance for loan losses for the nine months ended September 30, 2019 and an $8.5 million addition to the allowance for loan losses for the nine months ended September 30, 2018. For the nine months ended September 30, 2019, net charge-offs were $5.3 million compared to $8.7 million for the nine months ended September 30, 2018.
Non-Interest Income. Total non-interest income increased $4.5 million, or 43.7%, to $14.8 million for the three months ended September 30, 2019. This increase was primarily due to an increase of $2.5 million in other income primarily attributed to customer swap fee income and an increase of $1.2 million in gain on loans.
Total non-interest income increased $2.1 million, or 6.7%, to $33.0 million for the nine months ended September 30, 2019. The increase is primarily due to an increase of $5.4 million in other income primarily attributed to customer swap fee income, a sale-leaseback transaction and non-depository investment products. In addition, gain on loans, fees and service charges, income on bank owned life insurance and gain on the sale of other real estate owned increased $1.7 million, $591,000, $524,000 and $513,000, respectively. These increases were partially offset by a decrease of $6.7 million in non-interest income on securities primarily resulting from a $5.7 million loss on the sale of securities during the second quarter of 2019.
Non-Interest Expenses. Total non-interest expenses were $108.7 million for the three months ended September 30, 2019, an increase of $6.9 million, or 6.8%, compared to the three months ended September 30, 2018. The increase was due to an increase of $4.3 million in compensation and benefit expense, of which $2.0 million was accelerated stock compensation expense related to the settlement of our shareholder litigation and $1.3 million was employee severance expense related to a workforce reduction. In addition, professional fees increased $2.4 million due primarily to costs associated with implementing enhanced commercial treasury management and online banking products, as well as costs to improve risk management process efficiency.
Total non-interest expenses were $315.9 million for the nine months ended September 30, 2019, an increase of $10.5 million, or 3.4%, as compared to the nine months ended September 30, 2018. This increase is due to an increase of $5.3 million in compensation and fringe benefit expense, an increase of $3.7 million in data processing and communication expense, an increase of $2.6 million in other non-interest expense and an increase of $1.8 million in advertising and promotional expense. These increases were partially offset by a decrease of $4.1 million in federal insurance premiums.
Income Taxes. Income tax expense for the third quarter of 2019 was $21.0 million compared to $19.2 million for the third quarter 2018.  The effective tax rate was 28.8% for the three months ended September 30, 2019 and 26.2% for the three months ended September 30, 2018. Income tax expense for the nine months ended September 30, 2019 was $59.1 million compared to $58.4 million for the nine months ended September 30, 2018.  The effective tax rate was 28.7% for the nine months ended September 30, 2019 and 25.6% for the nine months ended September 30, 2018. The increase in the tax rate is primarily related to the change in New Jersey tax law. The effective tax rate is also affected by the level of income earned that is exempt from tax relative to the overall level of pre-tax income and the level of expenses not deductible for tax purposes relative to the overall level of pre-tax income. In addition, the effective tax rate is affected by the level of income allocated to the various state and local jurisdictions where the Company operates, because tax rates differ among such jurisdictions.
Liquidity and Capital Resources
The Company’s primary sources of funds are deposits, principal and interest payments on loans and mortgage-backed securities, FHLB and other borrowings and, to a lesser extent, proceeds from the sale of loans and investment maturities. While scheduled amortization of loans is a predictable source of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition. Our Asset Liability Committee is responsible for establishing and monitoring our liquidity targets and strategies to ensure that sufficient liquidity exists for meeting the needs of our customers as well as unanticipated contingencies. The Company has other sources of liquidity, including unsecured overnight lines of credit, brokered deposits and other borrowings from correspondent banks.
At September 30, 2019, the Company had $325.0 million of overnight borrowings outstanding. The Company had $686.0 million of overnight borrowings outstanding at December 31, 2018. The Company borrows directly from the FHLB and various financial institutions. The Company had total borrowings of $5.69 billion at September 30, 2019, an increase of $258.9 million from $5.44 billion at December 31, 2018.
In the normal course of business, the Company routinely enters into various commitments, primarily relating to the origination of loans. At September 30, 2019, outstanding commitments to originate loans totaled $588.8 million; outstanding unused lines of credit totaled $1.39 billion; standby letters of credit totaled $30.6 million and outstanding commitments to sell loans totaled $57.0 million. The Company expects to have sufficient funds available to meet current commitments in the normal course of business. Time deposits scheduled to mature in one year or less totaled $3.95 billion at September 30, 2019. Based upon historical experience, management estimates that a significant portion of such deposits will remain with the Company.

60
Table of Contents

Regulatory Matters. In July 2013, the Federal Deposit Insurance Corporation and the other federal bank regulatory agencies issued a final rule that revised their leverage and risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act. The Final Capital Rules also revised the quantity and quality of required minimum risk-based and leverage capital requirements, consistent with the Reform Act and the Third Basel Accord adopted by the Basel Committee on Banking Supervision, or Basel III capital standards. In doing so, the Final Capital Rules:
•
Established a new minimum Common equity tier 1 risk-based capital ratio (common equity tier 1 capital to total risk-weighted assets) of 4.5% and increased the minimum Tier 1 risk-based capital ratio from 4.0% to 6.0%, while maintaining the minimum Total risk-based capital ratio of 8.0% and the minimum Tier 1 leverage capital ratio of 4.0%.
•
Revised the rules for calculating risk-weighted assets to enhance their risk sensitivity.
•
Phased out trust preferred securities and cumulative perpetual preferred stock as Tier 1 capital.
•
Added a requirement to maintain a minimum Conservation Buffer, composed of Common equity tier 1 capital, of 2.5% of risk-weighted assets, to be applied to the new Common equity tier 1 risk-based capital ratio, the Tier 1 risk-based capital ratio and the Total risk-based capital ratio, which means that banking organizations must maintain a minimum Common equity tier 1 risk-based capital ratio of 7.0%, a minimum Tier 1 risk-based capital ratio of 8.5% and a minimum Total risk-based capital ratio of 10.5% or have restrictions imposed on capital distributions and discretionary cash bonus payments.
•
Changed the definitions of capital categories for insured depository institutions for purposes of the Federal Deposit Insurance Corporation Improvement Act of 1991 prompt corrective action provisions. Under these revised definitions, to be considered well-capitalized, an insured depository institution must have a Tier 1 leverage capital ratio of at least 5.0%, a Common equity tier 1 risk-based capital ratio of at least 6.5%, a Tier 1 risk-based capital ratio of at least 8.0% and a Total risk-based capital ratio of at least 10.0%.
The new minimum regulatory capital ratios and changes to the calculation of risk-weighted assets became effective for the Bank and Company on January 1, 2015. The required minimum Conservation Buffer commenced on January 1, 2016 at 0.625% and increased in annual increments to 2.5% on January 1, 2019. The rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the minimum Conservation Buffer is not met. As of September 30, 2019 the Company and the Bank met the currently applicable Conservation Buffer of 2.5%.
As of September 30, 2019, the Bank and the Company were considered “well capitalized” under applicable regulations and exceeded all regulatory capital requirements as follows:
 
As of September 30, 2019 (1)
 
Actual
 
Minimum Capital Requirement with Conservation Buffer
 
To be Well Capitalized under Prompt Corrective Action Provisions (2)
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
(Dollars in thousands)
Bank:
 
 
 
 
 
 
 
 
 
 
 
Tier 1 Leverage Ratio
$
2,582,445

 
9.68
%
 
$
1,066,626

 
4.00
%
 
$
1,333,283

 
5.00
%
Common Equity Tier 1 Risk-Based Capital
2,582,445

 
12.95
%
 
1,395,550

 
7.00
%
 
1,295,868

 
6.50
%
Tier 1 Risk Based Capital
2,582,445

 
12.95
%
 
1,694,596

 
8.50
%
 
1,594,914

 
8.00
%
Total Risk-Based Capital
2,811,279

 
14.10
%
 
2,093,325

 
10.50
%
 
1,993,643

 
10.00
%
 
 
 
 
 
 
 
 
 
 
 
 
Investors Bancorp, Inc.:
 
 
 
 
 
 
 
 
 
 
 
Tier 1 Leverage Ratio
$
2,864,284

 
10.65
%
 
$
1,076,080

 
4.00
%
 
n/a
 
n/a
Common Equity Tier 1 Risk-Based Capital
2,864,284

 
14.32
%
 
1,400,073

 
7.00
%
 
n/a
 
n/a
Tier 1 Risk Based Capital
2,864,284

 
14.32
%
 
1,700,089

 
8.50
%
 
n/a
 
n/a
Total Risk-Based Capital
3,093,118

 
15.46
%
 
2,100,110

 
10.50
%
 
n/a
 
n/a
(1) For purposes of calculating Tier 1 leverage ratio, assets are based on adjusted total average assets. In calculating Tier 1 risk-based capital and Total risk-based capital, assets are based on total risk-weighted assets.
(2) Prompt corrective action provisions do not apply to the bank holding company.

61
Table of Contents

Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
In the ordinary course of its operations, the Company engages in a variety of financial transactions that, in accordance with U.S. generally accepted accounting principles, are not recorded in the financial statements.
The following table shows the contractual obligations of the Company by expected payment period as of September 30, 2019:
Contractual Obligations
 
Total
 
Less than One Year
 
One-Two Years
 
Two-Three Years
 
More than Three Years
 
 
(In thousands)
Debt obligations (excluding capitalized leases)
 
$
5,694,553

 
1,500,000

 
550,000

 
1,273,952

 
2,370,601

Commitments to originate and purchase loans
 
$
588,807

 
588,807

 
—

 
—

 
—

Commitments to sell loans
 
$
56,950

 
56,950

 
—

 
—

 
—


Debt obligations include borrowings from the FHLB and other borrowings. The borrowings have defined terms and, under certain circumstances, $5.0 million of the borrowings are callable at the option of the lender. Additionally, at September 30, 2019, the Company’s commitments to fund unused lines of credit totaled $1.39 billion. Commitments to originate loans, commitments to fund unused lines of credit and standby letters of credit are agreements to lend additional funds to customers as long as there have been no violations of any of the conditions established in the agreements. Commitments generally have a fixed expiration or other termination clauses which may or may not require a payment of a fee. Since some of these loan commitments are expected to expire without being drawn upon, total commitments do not necessarily represent future cash requirements.
In addition to the contractual obligations previously discussed, we have other liabilities which includes $189.9 million of operating lease liabilities. While the contractual obligations as of September 30, 2019 have not changed significantly from December 31, 2018, the accounting for such obligations required changes effective January 1, 2019 in accordance with the Company’s adoption of Topic 842 which requires these liabilities to be recorded.
In the normal course of business the Company sells residential mortgage loans to third parties. These loan sales are subject to customary representations and warranties. In the event that we are found to be in breach of these representations and warranties, we may be obligated to repurchase certain of these loans.
The Company has entered into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings and loans. During the three and nine months ended September 30, 2019, such derivatives were used (i) to hedge the variability in cash flows associated with borrowings and (ii) to hedge changes in the fair value of certain pools of prepayable fixed- and adjustable-rate assets. These derivatives had an aggregate notional amount of $2.48 billion as of September 30, 2019. The fair value of derivatives designated as hedging activities as of September 30, 2019 was an asset of $91,000, inclusive of accrued interest and variation margin posted in accordance with the Chicago Mercantile Exchange.
The Company has credit derivatives resulting from participations in interest rate swaps provided to external lenders as part of loan participation arrangements which are, therefore, not used to manage interest rate risk in the Company’s assets or liabilities. Additionally, the Company provides interest rate risk management services to commercial customers, primarily interest rate swaps. The Company’s market risk from unfavorable movements in interest rates related to these derivative contracts is economically hedged by concurrently entering into offsetting derivative contracts that have identical notional values, terms and indices.
For further information regarding our off-balance sheet arrangements and contractual obligations, see Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our December 31, 2018 Annual Report on Form 10-K.
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Qualitative Analysis. One significant form of market risk is interest rate risk. Interest rate risk results from timing differences in the cash flow or re-pricing of our assets, liabilities and off-balance sheet contracts (i.e., loan commitments); the effect of loan prepayments, deposit activity; potential differences in the behavior of lending and funding rates arising from the use of different indices; and “yield curve risk” arising from changes in the term structure of interest rates. Changes in market interest rates can affect net interest income by influencing the amount and rate of new loan originations, the ability of borrowers to repay variable rate loans, the volume of loan prepayments and the mix and flow of deposits.

62
Table of Contents

The general objective of our interest rate risk management process is to determine the appropriate level of risk given our business model and then to manage that risk in a manner consistent with that risk appetite. Our Asset Liability Committee, which consists of senior management and executives, evaluates the interest rate risk inherent in our balance sheet, the operating environment and capital and liquidity requirements and may modify our lending, investing and deposit gathering strategies accordingly. On a quarterly basis, our Board of Directors reviews various Asset Liability Committee reports that estimate the sensitivity of the economic value of equity and net interest income under various interest rate scenarios.
Our tactics and strategies may include the use of various financial instruments, including derivatives, to manage our exposure to interest rate risk. Certain derivatives are designated as hedging instruments in a qualifying hedge accounting relationship (fair value or cash flow hedge). Hedged items can be either assets or liabilities. As of September 30, 2019 and December 31, 2018, the Company had cash flow and fair value hedges with aggregate notional amounts of $2.48 billion and $2.61 billion, respectively. Included in the fair value hedges are $475.0 million in asset swap transactions where fixed rate loan payments are exchanged for variable rate payments. These transactions were executed in an effort to reduce the Company’s exposure to rising rates. During the three months ended September 30, 2019, the Company terminated three interest rate swaps with an aggregate notional amount of $1.00 billion which had been included in asset swap transactions.
We actively evaluate interest rate risk in connection with our lending, investing and deposit activities and our off-balance sheet positions. At September 30, 2019, 24.4% of our total loan portfolio was comprised of residential mortgages, of which approximately 29.2% was in variable rate products, while 70.8% was in fixed rate products. Our variable rate and short term fixed rate mortgage related assets have helped to reduce our exposure to interest rate fluctuations. Long term fixed-rate products may adversely impact our net interest income in a rising rate environment. The origination of commercial real estate loans, particularly multi-family loans and commercial and industrial loans, which have outpaced the growth in the residential portfolio in recent years, generally help reduce our interest rate risk due to their shorter term compared to fixed rate residential mortgage loans. In addition, we primarily invest in securities which display relatively conservative interest rate risk characteristics.
We use an internally managed and implemented industry standard asset/liability model to complete our quarterly interest rate risk reports. The model projects net interest income based on various interest rate scenarios and horizons. We use a combination of analyses to monitor our exposure to changes in interest rates.
Our net interest income sensitivity analysis determines the relative balance between the repricing of assets, liabilities and off-balance sheet positions over various horizons. This asset and liability analysis includes expected cash flows from loans and securities, using forecasted prepayment rates, reinvestment rates, as well as contractual and forecasted liability cash flows. This analysis identifies mismatches in the timing of asset and liability cash flows but does not necessarily provide an accurate indicator of interest rate risk because the rate forecasts and assumptions used in the analysis may not reflect actual experience. The economic value of equity (“EVE”) analysis estimates the change in the net present value (“NPV”) of assets and liabilities and off-balance sheet contracts over a range of immediate rate shock interest rate scenarios. In calculating changes in EVE, for the various scenarios we forecast loan and securities prepayment rates, reinvestment rates and deposit decay rates.
In July 2017, the Financial Conduct Authority (the authority that regulates LIBOR) announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee (“ARRC”) has proposed that the Secured Overnight Financing Rate (“SOFR”) is the rate that represents best practice as the alternative to USD-LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR. The ARRC has proposed a paced market transition plan to SOFR from USD-LIBOR and organizations are currently working on industry wide and company specific transition plans as it relates to derivatives and cash markets exposed to USD-LIBOR. The Company has material contracts that are indexed to USD-LIBOR and is monitoring this activity and evaluating the related risks.
Quantitative Analysis. The table below sets forth, as of September 30, 2019, the estimated changes in our EVE and our net interest income that would result from the designated changes in interest rates. Such changes to interest rates are calculated as an immediate and permanent change for the purposes of computing EVE and a gradual change over a one-year period for the purposes of computing net interest income. Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied upon as indicative of actual results. The following table reflects management’s expectations of the changes in EVE and net interest income for an interest rate decrease of 100 basis points and increase of 200 basis points.

63
Table of Contents

 
 
EVE (1) (2)
 
Net Interest Income (3)
Change in
Interest Rates
(basis points)
 
Estimated
EVE
 
Estimated Increase (Decrease)
 
Estimated
Net
Interest
Income
 
Estimated Increase (Decrease)
Amount
 
Percent
 
Amount
 
Percent
 
 
(Dollars in thousands)
+ 200bp
 
$
3,615,871

 
(359,474
)
 
(9.0
)%
 
$
615,802

 
(41,014
)
 
(6.2
)%
0bp
 
$
3,975,345

 
—

 
—

 
$
656,816

 
—

 
—

-100bp
 
$
4,243,179

 
267,834

 
6.7
 %
 
$
680,391

 
23,575

 
3.6
 %
(1)
Assumes an instantaneous and parallel shift in interest rates at all maturities.
(2)
EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.
(3)
Assumes a gradual change in interest rates over a one year period at all maturities.
The table above indicates that at September 30, 2019, in the event of a 200 basis point increase in interest rates, we would be expected to experience an 9.0% decrease in EVE and a $41.0 million, or 6.2%, decrease in net interest income. In the event of a 100 basis point decrease in interest rates, we would be expected to experience a 6.7% increase in EVE and a $23.6 million, or 3.6%, increase in net interest income. This data does not reflect any future actions we may take in response to changes in interest rates, such as changing the mix in or growth of our assets and liabilities, which could change the results of the EVE and net interest income calculations.
As mentioned above, we use an internally developed asset liability model to compute our quarterly interest rate risk reports. Certain shortcomings are inherent in any methodology used in the above interest rate risk measurements. Modeling EVE and net interest income sensitivity requires certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. The EVE and net interest income table presented above assumes no balance sheet growth and that generally the composition of our interest-rate sensitive assets and liabilities existing at the beginning of the analysis remains constant over the period being measured and, accordingly, the data does not reflect any actions we may take in response to changes in interest rates. The table also assumes a particular change in interest rates is reflected uniformly across the yield curve. Accordingly, although the EVE and net interest income table provide an indication of our sensitivity to interest rate changes at a particular point in time, such measurement is not intended to and does not provide a precise forecast of the effects of changes in market interest rates on our EVE and net interest income.

ITEM 4.
CONTROLS AND PROCEDURES
Under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective.
There were no changes in our internal control over financial reporting that occurred during the quarter ended September 30, 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


64
Table of Contents

Part II Other Information

ITEM 1.
LEGAL PROCEEDINGS
The Company, the Bank and its subsidiaries are subject to various legal actions arising in the normal course of business. In the opinion of management, the resolution of these legal actions is not expected to have a material adverse effect on the Company’s financial condition or results of operations.

ITEM 1A.
RISK FACTORS
The following additional risk factor supplements the risk factors disclosed in Item 1A., Risk Factors, in our December 31, 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission.

The performance of our multi-family loan portfolio could be adversely impacted by regulation.
On June 14, 2019, the State of New York enacted legislation increasing restrictions on rent increases in a rent-regulated apartment building, including, among other provisions, (i) repealing the “vacancy bonus” and “longevity bonus”, which allowed a property owner to raise rents as much as 20% each time a rental unit became vacant, (ii) eliminating high rent vacancy deregulation and high-income deregulation, which allowed a rental unit to be removed from rent stabilization once it crossed a statutory high-rent threshold and became vacant, or the tenant’s income exceeded the statutory amount in the preceding two years, and (iii) eliminating an exception that allowed a property owner who offered preferential rents to tenants to raise the rent to the full legal rent upon renewal.  As a result of this new legislation as well as previously existing laws and regulations, which are outside the control of the borrower or the Bank, the value of the collateral for our multi-family loans or the future cash flow of such properties could be impaired. It is possible that rental income might not rise sufficiently over time to satisfy increases in the loan rate at repricing or increases in overhead expenses (e.g., utilities, taxes, etc.).  In addition, if the cash flow from a collateral property is reduced or constrained, the borrower’s ability to repay the loan and the value of the collateral for the loan may be impaired.  Approximately half of our multi-family loans are to borrowers with underlying property collateral based in the State of New York.

ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(a) Not applicable.
(b) Not applicable.
(c) The following table reports information regarding repurchases of our common stock during the quarter ended September 30, 2019 and the stock repurchase plans approved by our Board of Directors.
Period
Total Number of Shares Purchased (1)(2)
 
Average Price paid Per Share
 
As part of Publicly Announced Plans or Programs
 
Yet to be Purchased Under the Plans or Programs (1)
July 1, 2019 through July 31, 2019
128

 
$
11.13

 
—

 
16,607,794

August 1, 2019 through August 31, 2019
954,315

 
11.03

 
952,000

 
15,655,794

September 1, 2019 through September 30, 2019
1,050,274

 
11.39

 
1,048,000

 
14,607,794

Total
2,004,717

 
$
11.22

 
2,000,000

 
14,607,794

(1) On October 25, 2018, the Company announced its fourth share repurchase program, which authorized the purchase of 10% of its publicly-held outstanding shares of common stock, or approximately 28,886,780 shares. The plan commenced upon the completion of the third repurchase plan on December 10, 2018. This program has no expiration date and has 14,607,794 shares yet to be repurchased as of September 30, 2019.
(2) 4,717 shares were withheld to cover income taxes related to restricted stock vesting under our 2015 Equity Incentive Plan. Shares withheld to pay income taxes are repurchased pursuant to the terms of the 2015 Equity Incentive Plan and not under our share repurchase program.
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
Not applicable.


65
Table of Contents

ITEM 4.
MINE SAFETY DISCLOSURES
Not applicable.

ITEM 5.
OTHER INFORMATION
Not applicable.


66
Table of Contents


ITEM 6.
EXHIBITS
The following exhibits are either filed as part of this report or are incorporated herein by reference:
 

 
 
 
 

  
 
 
 

  
 
 
 

  
 
 
 

  
 
 
 

  
 
 
 
101.INS

  
The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document
101.SCH

 
Inline XBRL Taxonomy Extension Schema Document
101.CAL

 
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF

 
Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB

 
Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE

 
Inline XBRL Taxonomy Presentation Linkbase Document
104

 
Inline XBRL Cover Page Interactive Data File
 
(1)
Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K of Investors Bancorp, Inc. (Commission File no. 001-36441), originally filed with the Securities and Exchange Commission on July 30, 2019.
 
 
(2)
Incorporated by reference to the Registration Statement on Form S-1 of Investors Bancorp, Inc. (Commission File no. 333-192966), originally filed with the Securities and Exchange Commission on December 20, 2013.


67
Table of Contents

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
INVESTORS BANCORP, INC.
 
 
 
Date: November 12, 2019
 
By:
 
/s/  Kevin Cummings
 
 
 
 
Kevin Cummings
Chief Executive Officer
(Principal Executive Officer)
 
 
 
 
 
 
 
By:
 
/s/  Sean Burke
 
 
 
 
Sean Burke
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)



68
 Exhibit
Exhibit 31.1
Certification of Principal Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Kevin Cummings, certify that:
1.
I have reviewed this Quarterly Report on Form 10-Q of Investors Bancorp, Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
 
Dated:
November 12, 2019
/s/ Kevin Cummings
 
 
Kevin Cummings
 
 
Chief Executive Officer
 
 
(Principal Executive Officer)


Exhibit
Exhibit 31.2
Certification of Principal Financial and Accounting Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Sean Burke, certify that:
1.
I have reviewed this Quarterly Report on Form 10-Q of Investors Bancorp, Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
 
Dated:
November 12, 2019
/s/ Sean Burke
 
 
Sean Burke
 
 
Executive Vice President and Chief Financial Officer
 
 
(Principal Financial and Accounting Officer)


Exhibit
Exhibit 32.1

Certification of Principal Executive Officer and Principal Financial and Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Kevin Cummings, Principal Executive Officer of Investors Bancorp, Inc. (the “Company”) and Sean Burke, Executive Vice President and Principal Financial and Accounting Officer of the Company, each certify in his capacity as an officer of the Company that he has reviewed the quarterly report on Form 10-Q for the quarter ended September 30, 2019 (the “Report”) and that to the best of his knowledge:
1.
the Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Dated:
November 12, 2019
/s/ Kevin Cummings
 
 
Kevin Cummings
 
 
Chief Executive Officer
 
 
(Principal Executive Officer)
 
 
 
Dated:
November 12, 2019
/s/ Sean Burke
 
 
Sean Burke
 
 
Executive Vice President and Chief Financial Officer
 
 
(Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.



v3.19.3
Fair Value Measurements (Carrying Amounts and Estimated Fair Values) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Assets:    
Equities $ 6,030 $ 5,793
Debt securities available-for-sale 2,644,024 2,122,162
Debt securities held-to-maturity 1,158,769 1,558,564
Carrying value    
Assets:    
Cash and cash equivalents 195,400 196,891
Equities 6,030 5,793
Debt securities available-for-sale 2,644,024 2,122,162
Debt securities held-to-maturity 1,117,699 1,555,137
FHLB stock 273,996 260,234
Loans held for sale 31,373 4,074
Net loans 21,516,234 21,378,136
Interest rate swaps 6,396  
Financial liabilities:    
Deposits, other than time deposits 13,173,915 13,009,422
Time deposits 4,498,841 4,570,847
Borrowed funds 5,694,553 5,435,681
Derivative financial instruments 178 498
Estimated fair value    
Assets:    
Cash and cash equivalents 195,400 196,891
Equities 6,030 5,793
Debt securities available-for-sale 2,644,024 2,122,162
Debt securities held-to-maturity 1,158,769 1,558,564
FHLB stock 273,996 260,234
Loans held for sale 31,373 4,074
Net loans 21,677,960 21,085,185
Interest rate swaps 6,396  
Financial liabilities:    
Deposits, other than time deposits 13,173,915 13,009,422
Time deposits 4,498,964 4,546,991
Borrowed funds 5,702,437 5,398,553
Derivative financial instruments 178 498
Level 1 | Estimated fair value    
Assets:    
Cash and cash equivalents 195,400 196,891
Equities 6,030 5,793
Debt securities available-for-sale 0 0
Debt securities held-to-maturity 0 0
FHLB stock 273,996 260,234
Loans held for sale 0 0
Net loans 0 0
Interest rate swaps 0  
Financial liabilities:    
Deposits, other than time deposits 13,173,915 13,009,422
Time deposits 0 0
Borrowed funds 0 0
Derivative financial instruments 0 0
Level 2 | Estimated fair value    
Assets:    
Cash and cash equivalents 0 0
Equities 0 0
Debt securities available-for-sale 2,644,024 2,122,162
Debt securities held-to-maturity 1,089,032 1,476,565
FHLB stock 0 0
Loans held for sale 31,373 4,074
Net loans 0 0
Interest rate swaps 6,396  
Financial liabilities:    
Deposits, other than time deposits 0 0
Time deposits 4,498,964 4,546,991
Borrowed funds 5,702,437 5,398,553
Derivative financial instruments 178 498
Level 3 | Estimated fair value    
Assets:    
Cash and cash equivalents 0 0
Equities 0 0
Debt securities available-for-sale 0 0
Debt securities held-to-maturity 69,737 81,999
FHLB stock 0 0
Loans held for sale 0 0
Net loans 21,677,960 21,085,185
Interest rate swaps 0  
Financial liabilities:    
Deposits, other than time deposits 0 0
Time deposits 0 0
Borrowed funds 0 0
Derivative financial instruments $ 0 $ 0
v3.19.3
Derivatives and Hedging Activities - Location in the Income Statement (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20        
Amount of gain reclassified from accumulated other comprehensive income (loss) $ 164,452 $ 166,926 $ 486,298 $ 510,711
Derivative not designated as hedging instruments (47) 0 (57) 0
Interest contracts        
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20        
Total amounts of income and expense line items presented in the income statement in which the effects of fair value are recorded 420 759 4,175 996
Interest contracts | Fair Value Hedging | Interest income on loans        
Gain or (loss) on fair value hedging relationships in Subtopic 815-20        
Hedged items 1,179 (1,581) 7,398 (1,581)
Derivatives designated as hedging instruments [1] (1,268) 1,518 (7,550) 1,518
Interest contracts | Cash Flow Hedging | Cash flow hedge | Reclassification out of Accumulated Other Comprehensive Income        
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20        
Amount of gain reclassified from accumulated other comprehensive income (loss) 509   4,327  
Interest contracts | Cash Flow Hedging | Cash flow hedge | Reclassification out of Accumulated Other Comprehensive Income        
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20        
Amount of gain reclassified from accumulated other comprehensive income (loss)   822   1,059
Interest contracts | Cash Flow Hedging | Interest expense on borrowings        
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20        
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) as a result that a forecasted transaction is no longer probable of occurring 0 0 0 0
Other Contracts | Other income / (expense)        
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20        
Derivative not designated as hedging instruments $ (47) $ 0 $ (57) $ 0
v3.19.3
Net Periodic Benefit Plan Expense (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Retirement Benefits [Abstract]        
Maximum annual contributions per employee, percent     60.00%  
Annual benefit, period (in months)     36 months  
Vesting period (in years)     2 years  
Percentage of vesting, year 1     50.00%  
Percentage of vesting, year 2     100.00%  
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]        
Interest cost $ 397,000 $ 355,000 $ 1,191,000 $ 1,064,000
Net loss 0 126,000 0 379,000
Total net periodic benefit cost $ 397,000 $ 481,000 1,191,000 $ 1,443,000
Multi-employer contributions     $ 0  
v3.19.3
Stockholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Balance, beginning of period $ 2,926,875 $ 3,090,983 $ 3,005,330 $ 3,125,451
Net income 51,972 54,224 146,754 169,246
Other comprehensive loss, net of tax (2,484) (1,577) (9,326) (11,172)
Purchase of treasury stock (22,486) (87,983) (140,241) (191,003)
Treasury stock allocated to restricted stock plan 0 0 0 0
Compensation cost for stock options and restricted stock 6,309 4,665 15,875 13,798
Exercise of stock options 154 103 813 5,324
Restricted stock forfeitures 0 0 0 0
Cash dividend paid (30,298) (26,700) (91,935) (81,166)
ESOP shares allocated or committed to be released 1,325 1,506 4,097 4,743
Balance, end of period $ 2,931,367 $ 3,035,221 $ 2,931,367 $ 3,035,221
Purchase of treasury stock (shares) 2,004,717,000 6,891,729,000 12,042,876 14,477,965
Treasury stock allocated to restricted stock plan (shares) 1,687,500,000 46,876,000 2,345,919 71,982
Restricted stock forfeitures (shares) 1,782,205,000 82,946,000 1,931,538 368,946
Cash dividend paid (usd per share) $ 0.11 $ 0.09 $ 0.33 $ 0.27
Common stock        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Balance, beginning of period $ 3,591 $ 3,591 $ 3,591 $ 3,591
Balance, end of period 3,591 3,591 3,591 3,591
Additional paid-in capital        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Balance, beginning of period 2,809,851 2,794,507 2,805,423 2,784,390
Treasury stock allocated to restricted stock plan (21,129) (594) (29,140) (935)
Compensation cost for stock options and restricted stock 6,309 4,665 15,875 13,798
Exercise of stock options (287) (23) (573) (4,023)
Restricted stock forfeitures 22,348 1,040 24,233 4,626
ESOP shares allocated or committed to be released 576 757 1,850 2,496
Balance, end of period 2,817,668 2,800,352 2,817,668 2,800,352
Retained earnings        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Balance, beginning of period 1,206,873 1,145,129 1,173,897 1,084,177
Net income 51,972 54,224 146,754 169,246
Treasury stock allocated to restricted stock plan 101 22 33 58
Restricted stock forfeitures (1,354) (60) (1,455) (306)
Cash dividend paid (30,298) (26,700) (91,935) (81,166)
Balance, end of period 1,227,294 1,172,615 1,227,294 1,172,615
Treasury stock        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Balance, beginning of period (995,265) (729,944) (884,750) (633,110)
Purchase of treasury stock (22,486) (87,983) (140,241) (191,003)
Treasury stock allocated to restricted stock plan 21,028 572 29,107 877
Exercise of stock options 441 126 1,386 9,347
Restricted stock forfeitures (20,994) (980) (22,778) (4,320)
Balance, end of period (1,017,276) (818,209) (1,017,276) (818,209)
Unallocated common stock held by ESOP        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Balance, beginning of period (79,764) (82,760) (81,262) (84,258)
ESOP shares allocated or committed to be released 749 749 2,247 2,247
Balance, end of period (79,015) (82,011) (79,015) (82,011)
Accumulated other comprehensive loss        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Balance, beginning of period (18,411) (39,540) (11,569) (29,339)
Other comprehensive loss, net of tax (2,484) (1,577) (9,326) (11,172)
Balance, end of period $ (20,895) $ (41,117) $ (20,895) $ (41,117)
v3.19.3
Derivatives and Hedging Activities - Offsetting Derivatives (Details) - Derivative contracts - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Assets:    
Gross Amounts Recognized $ 106  
Gross Amounts Offset 0  
Net Amounts Presented 106  
Gross Amounts Not Offset, Financial Instruments 0  
Gross Amounts Not Offset, Cash Collateral Posted 0  
Net Amount 106  
Liabilities:    
Gross Amounts Recognized 178 $ 498
Gross Amounts Offset 0 0
Net Amounts Presented 178 498
Gross Amounts Not Offset, Financial Instruments 0 0
Gross Amounts Not Offset, Cash Collateral Posted 0 0
Net Amount $ 178 $ 498
v3.19.3
Equity Incentive Plan (Fair Value) (Details) - $ / shares
 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Share-based Payment Arrangement [Abstract]    
Weighted average expected life (in years) 4 years 9 months 29 days 6 years 6 months
Weighted average risk-free rate of return (in percentage) 1.86% 2.80%
Weighted average volatility (in percentage) 19.92% 17.71%
Dividend yield (in percentage) 3.96% 2.78%
Weighted average fair value of options granted (in usd per share) $ 0.89 $ 1.94
Total stock options granted (in shares) 995,216 50,000
v3.19.3
Loans Receivable, Net (Summary of Analysis of the Allowance for Loan Losses) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Allowance for Loan and Lease Losses [Roll Forward]        
Balance at beginning of the period $ 231,937 $ 230,838 $ 235,817 $ 230,969
Loans charged off (3,354) (6,014) (10,980) (20,157)
Recoveries 1,902 3,994 5,648 11,506
Net charge-offs (1,452) (2,020) (5,332) (8,651)
Provision for loan losses (2,500) 2,000 (2,500) 8,500
Balance at end of the period $ 227,985 $ 230,818 $ 227,985 $ 230,818
v3.19.3
Loans Receivable, Net (Non-Accrual Loans Status) (Details)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2019
USD ($)
loan
Dec. 31, 2018
USD ($)
loan
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 313 385
Non-accrual, Amount | $ $ 92,069 $ 124,913
Financing Receivables, 1 to 29 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 32 30
Non-accrual, Amount | $ $ 5,124 $ 16,585
Financing Receivables, 30 to 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 12 11
Non-accrual, Amount | $ $ 2,045 $ 1,810
Commercial Portfolio Segment    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 52 65
Non-accrual, Amount | $ $ 43,898 $ 65,952
Commercial Portfolio Segment | Construction Loans    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 0 1
Non-accrual, Amount | $ $ 0 $ 227
Commercial Portfolio Segment | Financing Receivables, 1 to 29 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 1 4
Non-accrual, Amount | $ $ 65 $ 12,579
Commercial Portfolio Segment | Commercial and Industrial Sector    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 16 14
Non-accrual, Amount | $ $ 12,024 $ 19,394
Commercial Portfolio Segment | Commercial and Industrial Sector | Financing Receivables, 1 to 29 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 0 2
Non-accrual, Amount | $ $ 0 $ 9,762
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Loans    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 6 15
Non-accrual, Amount | $ $ 19,564 $ 33,940
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Loans    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 30 35
Non-accrual, Amount | $ $ 12,310 $ 12,391
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Loans | Financing Receivables, 1 to 29 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 1 2
Non-accrual, Amount | $ $ 65 $ 2,817
Consumer Portfolio Segment | Residential Mortgage Loans    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 261 320
Non-accrual, Amount | $ $ 48,171 $ 58,961
Consumer Portfolio Segment | Financing Receivables, 1 to 29 Days Past Due | Residential Mortgage Loans    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 31 26
Non-accrual, Amount | $ $ 5,059 $ 4,006
Consumer Portfolio Segment | Financing Receivables, 30 to 89 Days Past Due | Residential Mortgage Loans    
Financing Receivable, Past Due [Line Items]    
Non-accrual: # of loans | loan 12 11
Non-accrual, Amount | $ $ 2,045 $ 1,810
v3.19.3
Derivatives and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of fair value of the Company’s derivative financial instruments
 
 
Asset Derivatives
 
Liability Derivatives
 
September 30, 2019
 
December 31, 2018
 
September 30, 2019
 
December 31, 2018
 
Notional Amount
Balance
Sheet
Location
Fair Value
 
Notional Amount
Balance
Sheet
Location
Fair Value
 
Notional Amount
Balance
Sheet
Location
Fair Value
 
Notional Amount
Balance
Sheet
Location
Fair Value
 
(in millions)
 
(In thousands)
 
(in millions)
 
(In thousands)
 
(in millions)
 
(In thousands)
 
(in millions)
 
(In thousands)
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
$
2,475

Other assets
$
91

 
$
—

Other assets
$
—

 
$
—

Other liabilities
$
—

 
$
2,605

Other liabilities
$
432

Total derivatives designated as hedging instruments

 
$
91

 

 
$
—

 
 
 
$
—

 
 
 
$
432

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
$
306

Other assets
$
6,305

 
$
—

Other assets
$
—

 
$
—

Other liabilities
$
—

 
$
—

Other liabilities
$
—

Other Contracts
—

Other assets
—

 
—

Other assets
—

 
22

Other liabilities
178

 
18

Other liabilities
66

Total derivatives not designated as hedging instruments

 
$
6,305

 

 
$
—

 
 
 
$
178

 
 
 
$
66
Effect of the Company’s derivative financial instruments on the Consolidated Statement of Income
The following table presents the effect of the Company’s derivative financial instruments on Accumulated Other Comprehensive Income (Loss) for the three months ended September 30, 2019 and 2018.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Cash Flow Hedges - Interest rate swaps
 
 
 
 
 
 
 
Amount of (loss) gain recognized in other comprehensive income (loss)
$
(12,794
)
 
8,147

 
(71,139
)
 
34,065

Amount of gain reclassified from accumulated other comprehensive income (loss) to interest expense
509

 
822

 
4,327

 
1,059


The following table presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of September 30, 2019 and 2018.
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
The effects of fair value and cash flow hedging:
Income statement location
(In thousands)
Gain or (loss) on fair value hedging relationships in Subtopic 815-20
 
 
 
 
 
 
 
 
Interest contracts
 
 
 
 
 
 
 
 
Hedged items
Interest income on loans
$
1,179

 
(1,581
)
 
7,398

 
(1,581
)
Derivatives designated as hedging instruments [1]
Interest income on loans
(1,268
)
 
1,518

 
(7,550
)
 
1,518

Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
 
 
 
 
 
 
 
 
Interest contracts
 
 
 
 
 
 
 
 
Amount of gain reclassified from accumulated other comprehensive income (loss)
Interest expense on borrowings
509

 
822

 
4,327

 
1,059

Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) as a result that a forecasted transaction is no longer probable of occurring
Interest expense on borrowings
—

 
—

 
—

 
—

Total amounts of income and expense line items presented in the income statement in which the effects of fair value are recorded
 
$
420

 
759

 
4,175

 
996



[1] The amount includes gains on both active fair value hedging relationships and relationships which have been terminated
Schedule of cumulative basis adjustment for fair value hedges
As of September 30, 2019 and December 31, 2018, the following amounts were recorded on the Consolidated Balance Sheets related to cumulative basis adjustment for fair value hedges:
Balance sheet location
Carrying Amount of the Hedged Assets/(Liabilities)
 
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
 
September 30, 2019
 
December 31, 2018
 
September 30, 2019
 
December 31, 2018
 
(In thousands)
Loans receivable, net (1)(2)
$
479,231

 
1,005,294

 
$
7,741

 
294

(1) At September 30, 2019, the amortized cost basis of the closed portfolios used in these hedging relationships was $1.50 billion; the cumulative basis adjustments associated with these hedging relationships was $7.7 million; and the amounts of the designated hedged items were $479.2 million.
Derivatives not designated as hedging instruments There were no derivative financial instruments that are not designated as hedging instruments for the three and nine months ended September 30, 2018.
 
Consolidated Statements of Income location
Amount of Gain or (Loss) Recognized in Income on Derivative
 
Amount of Gain or (Loss) Recognized in Income on Derivative
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(In thousands)
Other Contracts
Other income / (expense)
$
(47
)
 
—

 
$
(57
)
 
—

Total
 
$
(47
)
 
—

 
$
(57
)
 
—
Offsetting assets The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Company’s Consolidated Balance Sheets.
 
 
 
 
 
 
 
Gross Amounts Not Offset
 
 
 
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Financial Instruments
 
Cash Collateral Posted
 
Net Amount
 
(In thousands)
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
$
106

 
—

 
106

 
—

 
—

 
106

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
178

 
—

 
178

 
—

 
—

 
178

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
$
498

 
—

 
498

 
—

 
—

 
498
Offsetting liabilities The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Company’s Consolidated Balance Sheets.
 
 
 
 
 
 
 
Gross Amounts Not Offset
 
 
 
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Financial Instruments
 
Cash Collateral Posted
 
Net Amount
 
(In thousands)
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
$
106

 
—

 
106

 
—

 
—

 
106

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
178

 
—

 
178

 
—

 
—

 
178

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
$
498

 
—

 
498

 
—

 
—

 
498
v3.19.3
Goodwill and Other Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill and intangible assets
The following table summarizes goodwill and intangible assets at September 30, 2019 and December 31, 2018:
 
 
September 30, 2019
 
December 31, 2018
 
 
(In thousands)
Mortgage servicing rights
 
$
11,454

 
11,712

Core deposit premiums
 
2,876

 
4,050

Other
 
690

 
755

Total other intangible assets
 
15,020

 
16,517

Goodwill
 
82,546

 
82,546

Goodwill and intangible assets
 
$
97,566

 
99,063
Summary of intangible assets
The following table summarizes other intangible assets as of September 30, 2019 and December 31, 2018:
 
 
Gross Intangible Asset
 
Accumulated Amortization
 
Valuation Allowance
 
Net Intangible Assets
 
 
(In thousands)
September 30, 2019
 
 
 
 
 
 
 
 
Mortgage servicing rights
 
$
18,406

 
(6,729
)
 
(223
)
 
11,454

Core deposit premiums
 
20,561

 
(17,685
)
 
—

 
2,876

Other
 
1,150

 
(460
)
 
—

 
690

Total other intangible assets
 
$
40,117

 
(24,874
)
 
(223
)
 
15,020

 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
Mortgage servicing rights
 
$
19,808

 
(7,921
)
 
(175
)
 
11,712

Core deposit premiums
 
25,058

 
(21,008
)
 
—

 
4,050

Other
 
1,150

 
(395
)
 
—

 
755

Total other intangible assets
 
$
46,016

 
(29,324
)
 
(175
)
 
16,517
v3.19.3
Business Combinations
 9 Months Ended
Sep. 30, 2019
Business Combinations [Abstract]  
Business Combinations Business Combinations
Gold Coast Bancorp    
On July 24, 2019, the Company and Gold Coast Bancorp, Inc. (“Gold Coast”) signed a definitive merger agreement under which the Company will acquire Gold Coast. Consideration will be paid to Gold Coast stockholders in a combination of stock and cash. Under the terms of the merger agreement, 50% of the common shares of Gold Coast will be converted into Investors Bancorp common stock and the remaining 50% will be exchanged for cash. For each share of Gold Coast Bancorp common stock, Gold Coast shareholders will have the option to receive either (i) 1.422 shares of Investors Bancorp common stock, $0.01 par value per share, (ii) a cash payment of $15.75, or (iii) a combination of Investors Bancorp common stock and cash. The foregoing is subject to proration to ensure that, in the aggregate, 50% of Gold Coast’s shares will be converted into Investors Bancorp common stock. As of September 30, 2019, Gold Coast had assets of $562.2 million, loans of $461.5 million and deposits of $463.5 million and operated six branches in Nassau and Suffolk counties in suburban Long Island and one branch in Brooklyn, NY. Required approvals to complete this transaction include Gold Coast shareholder approval, regulatory approvals, the effectiveness of the registration statement filed by Investors Bancorp with respect to the common stock to be issued in the transaction and other customary closing conditions. The merger is expected to be completed in the first quarter of 2020. As the merger has not been completed, the transaction is not reflected in the Consolidated Financial Statements.
Equipment Finance Portfolio    
On February 2, 2018, the Company completed the acquisition of a $345.8 million equipment finance portfolio. The acquisition included a seven-person team of financing professionals to lead the Company’s Equipment Finance Group, which is a part of the Company’s business lending group and is classified within our commercial and industrial loan portfolio. The purchase price of $340.2 million was paid using available cash.
The acquisition was accounted for under the acquisition method of accounting as prescribed by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 “Business Combinations”, as amended. Under this method of accounting, the purchase price has been allocated to the respective assets acquired based on their estimated fair values,
net of applicable income tax effects. The excess cost over fair value of assets acquired, or $5.0 million, has been recorded as goodwill.
The acquired portfolio was fair valued on the date of acquisition based on guidance from ASC 820-10 which defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The valuation methods utilized took into consideration adjustments for interest rate risk, funding cost, servicing cost, residual risk, credit and liquidity risk.
The accounting for the acquisition of the equipment finance portfolio is complete and is reflected in our Consolidated Financial Statements.
v3.19.3
Deposits
 9 Months Ended
Sep. 30, 2019
Banking and Thrift [Abstract]  
Deposits Deposits
Deposits are summarized as follows:

 
September 30, 2019
 
December 31, 2018
 
(In thousands)
Non-interest bearing:
 
 
 
Checking accounts
$
2,433,152

 
2,535,848

Interest bearing:
 
 
 
Checking accounts
5,103,007

 
4,783,563

Money market deposits
3,674,032

 
3,641,070

Savings
1,963,724

 
2,048,941

Certificates of deposit
4,498,841

 
4,570,847

Total deposits
$
17,672,756

 
17,580,269
v3.19.3
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Debt securities held-to-maturity, estimated fair value $ 1,158,769 $ 1,558,564
Preferred stock, par value (usd per share) $ 0.01 $ 0.01
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, shares issued 0 0
Common stock, par value (usd per share) $ 0.01 $ 0.01
Common stock, shares authorized 1,000,000,000 1,000,000,000
Common stock, shares issued 359,070,852 359,070,852
Common stock, shares outstanding 274,756,421 286,273,114
Treasury stock, shares 84,314,431 72,797,738
v3.19.3
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Statement of Stockholders' Equity [Abstract]        
Purchase of treasury stock (shares) 2,004,717,000 6,891,729,000 12,042,876 14,477,965
Cash dividend paid (usd per share) $ 0.11 $ 0.09 $ 0.33 $ 0.27
Treasury stock allocated to restricted stock plan (shares) 1,687,500,000 46,876,000 2,345,919 71,982
Restricted stock forfeitures (shares) 1,782,205,000 82,946,000 1,931,538 368,946
v3.19.3
Net Periodic Benefit Plan Expense
 9 Months Ended
Sep. 30, 2019
Retirement Benefits [Abstract]  
Net Periodic Benefit Plan Expense Net Periodic Benefit Plan Expense
The Company has an Executive Supplemental Retirement Wage Replacement Plan (“SERP II”) and the Supplemental ESOP and Retirement Plan (“SERP I”) (collectively, the “SERPs”). The SERP II is a nonqualified, defined benefit plan which provides benefits to certain executives as designated by the Compensation and Benefits Committee of the Board of Directors. More specifically, the SERP II was designed to provide participants with a normal retirement benefit equal to an annual benefit of 60% of the participant’s highest annual base salary and cash incentive (over a consecutive 36-month period within the participant’s credited service period) reduced by the sum of the benefits provided under the Pentegra Defined Benefit Plan for Financial Institutions (“Pentegra DB Plan”) and the SERP I.
Effective as of the close of business of December 31, 2016, the SERP II was amended to freeze future benefit accruals, and for certain participants, structure the benefits payable attributable solely to the participants’ 2016 year of service to vest over a two-year period such that the participants had a right to 50% of their accrued benefits attributable to their 2016 year of service as of December 31, 2016, which became 100% vested as of December 31, 2017.
The SERP I compensates certain executives (as designated by the Compensation and Benefits Committee of the Board of Directors) participating in the ESOP whose contributions are limited by the Internal Revenue Code. The Company also maintains the Amended and Restated Director Retirement Plan (“Directors’ Plan”) for certain directors, which is a nonqualified, defined benefit plan. The Directors’ Plan was frozen on November 21, 2006 such that no new benefits accrued under, and no new directors were eligible to participate in the plan. The SERPs and the Directors’ Plan are unfunded and the costs of the plans are recognized over the period that services are provided.
The components of net periodic benefit cost for the Directors’ Plan and the SERP II are as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Interest cost
$
397

 
355

 
1,191

 
1,064

Amortization of:
 
 
 
 
 
 
 
Net loss
—

 
126

 
—

 
379

Total net periodic benefit cost
$
397

 
481

 
1,191

 
1,443


Due to the unfunded nature of the SERPs and the Directors’ Plan, no contributions have been made or were expected to be made during the nine months ended September 30, 2019.
The Company also maintains the Pentegra DB Plan. Since it is a multi-employer plan, costs of the pension plan are based on contributions required to be made to the pension plan. As of December 31, 2016, the annual benefit provided under the Pentegra DB plan was frozen by an amendment to the plan. Freezing the plan eliminated all future benefit accruals and each participant’s frozen accrued benefit was determined as of December 31, 2016 with no further benefits accrued subsequent to December 31, 2016. There was no contribution required during the nine months ended September 30, 2019. We anticipate contributing funds to the plan to meet any minimum funding requirements for the remainder of 2019.
v3.19.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Our debt securities available-for-sale and derivatives are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record at fair value other assets or liabilities on a non-recurring basis, such as held-to-maturity debt securities, mortgage servicing rights (“MSR”), loans receivable and other real estate owned. These non-recurring fair value adjustments involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. Additionally, in connection with our mortgage banking activities we have commitments to fund loans held-for-sale and commitments to sell loans, which are considered free-standing derivative instruments, the fair values of which are not material to our financial condition or results of operations.
In accordance with FASB ASC 820, “Fair Value Measurements and Disclosures”, we group our assets and liabilities at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:
•
Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets.
•
Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market.
•
Level 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability.
We base our fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
Assets Measured at Fair Value on a Recurring Basis
Equity securities
Our equity securities portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses recognized in the Consolidated Statements of Income. The fair values of equity securities are based on quoted market prices (Level 1).
Debt securities available-for-sale
Our debt securities available-for-sale portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income (loss) in stockholders’ equity. The fair values of debt securities available-for-sale are based upon quoted prices for similar instruments in active markets (Level 2). The pricing service may use quoted market prices of comparable instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, benchmark yields, credit spreads, default rates, prepayment speeds and non-binding broker quotes. As the Company is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in adjustment in the prices obtained from the pricing service.
Derivatives
Derivatives are reported at fair value utilizing Level 2 inputs. The fair values of interest rate swap and risk participation agreements are based on a valuation model that uses primarily observable inputs, such as benchmark yield curves and interest rate spreads.
The following tables provide the level of valuation assumptions used to determine the carrying value of our assets and liabilities measured at fair value on a recurring basis at September 30, 2019 and December 31, 2018.
 
Carrying Value at September 30, 2019
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(In thousands)
Assets:
 
 
 
 
 
 
 
Equity securities
$
6,030

 
6,030

 
—

 
—

Debt securities available for sale:
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
1,191,522

 
—

 
1,191,522

 
—

Federal National Mortgage Association
1,151,722

 
—

 
1,151,722

 
—

Government National Mortgage Association
300,780

 
—

 
300,780

 
—

Total debt securities available-for-sale
$
2,644,024

 
—

 
2,644,024

 
—

Interest rate swaps
$
6,396

 
—

 
6,396

 
—

Liabilities:
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
Other contracts
$
178

 
—

 
178

 
—

 
Carrying Value at December 31, 2018
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(In thousands)
Assets:
 
 
 
 
 
 
 
Equity securities
$
5,793

 
5,793

 
—

 
—

Debt securities available for sale:
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
986,650

 
—

 
986,650

 
—

Federal National Mortgage Association
968,556

 
—

 
968,556

 
—

Government National Mortgage Association
166,956

 
—

 
166,956

 
—

Total debt securities available-for-sale
$
2,122,162

 
—

 
2,122,162

 
—

Liabilities:
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
Interest rate swaps
$
432

 
—

 
432

 
—

Other contracts
66

 
—

 
66

 
—

Total derivatives
$
498

 
—

 
498

 
—


There have been no changes in the methodologies used at September 30, 2019 from December 31, 2018, and there were no transfers between Level 1 and Level 2 during the nine months ended September 30, 2019.
There were no Level 3 assets measured at fair value on a recurring basis for the nine months ended September 30, 2019 and December 31, 2018.
Assets Measured at Fair Value on a Non-Recurring Basis
Mortgage Servicing Rights, Net
Mortgage servicing rights are carried at the lower of cost or estimated fair value. The estimated fair value of MSR is obtained through independent third party valuations through an analysis of future cash flows, incorporating assumptions market participants would use in determining fair value including market discount rates, prepayment speeds, servicing income, servicing costs, default rates and other market driven data, including the market’s perception of future interest rate movements. The prepayment speed and the discount rate are considered two of the most significant inputs in the model.  At September 30, 2019, the fair value model used prepayment speeds ranging from 6.60% to 42.00% and a discount rate of 12.05% for the valuation of the mortgage servicing rights. At December 31, 2018, the fair value model used prepayment speeds ranging from 4.98% to 27.30% and a discount rate of 12.50% for the valuation of the mortgage servicing rights. A significant degree of judgment is involved in valuing the mortgage servicing rights using Level 3 inputs. The use of different assumptions could have a significant positive or negative effect on the fair value estimate.
Impaired Loans Receivable
Loans which meet certain criteria are evaluated individually for impairment. A loan is deemed to be impaired if it is a commercial loan with an outstanding balance greater than $1.0 million and on non-accrual status, loans modified in a troubled debt restructuring, and other commercial loans with $1.0 million in outstanding principal if management has specific information that it is probable they will not collect all amounts due under the contractual terms of the loan agreement. Our impaired loans are generally collateral dependent and, as such, are carried at the estimated fair value of the collateral less estimated selling costs. Estimated fair value is calculated using an independent third-party appraiser for collateral-dependent loans. In the event the most recent appraisal does not reflect the current market conditions due to the passage of time and other factors, management will obtain an updated appraisal or make downward adjustments to the existing appraised value based on their knowledge of the property, local real estate market conditions, recent real estate transactions, and for estimated selling costs, if applicable. Appraisals were generally discounted in a range of 0% to 25%. For non collateral-dependent loans, management estimates the fair value using discounted cash flows based on inputs that are largely unobservable and instead reflect management’s own estimates of the assumptions as a market participant would in pricing such loans.
Other Real Estate Owned and Repossessed Assets
Other Real Estate Owned and Repossessed Assets is recorded at estimated fair value, less estimated selling costs when acquired, thus establishing a new cost basis. Fair value is generally based on independent appraisals. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience, and are discounted an additional 0% to 25% for estimated costs to sell. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for loan losses. If further declines in the estimated fair value of the asset occur, a writedown is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in economic conditions. Operating costs after acquisition are generally expensed.
Loans Held For Sale
Residential mortgage loans held for sale are recorded at the lower of cost or fair value and are therefore measured at fair value on a non-recurring basis. When available, the Company uses observable secondary market data, including pricing on recent closed market transactions for loans with similar characteristics.
The following tables provide the level of valuation assumptions used to determine the carrying value of our assets measured at fair value on a non-recurring basis at September 30, 2019 and December 31, 2018. For the three months ended September 30, 2019 and December 31, 2018 there was no change to the carrying value of MSR or loans held for sale.
 Security Type
Valuation Technique
Unobservable Input
Range
Weighted Average Input
 
Carrying Value at September 30, 2019
 
 
 
Minimum
Maximum
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
 
 
(In thousands)
Impaired loans
Estimated cash flow
Probability of default
1.0%
83.0%
8.10%
 
$
2,853

 
—

 
—

 
2,853

Other real estate owned
Market comparable
Lack of marketability
0.0%
25.0%
18.00%
 
49

 
—

 
—

 
49

 
 
 
 
 
 
 
$
2,902

 
—

 
—

 
2,902

 
 Security Type
Valuation Technique
Unobservable Input
Range
Weighted Average Input
 
Carrying Value at December 31, 2018
 
 
 
Minimum
Maximum
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
 
 
(In thousands)
Impaired loans
Market comparable and estimated cash flow
Lack of marketability and probability of default
1.0%
83.0%
11.20%
 
$
15,148

 
—

 
—

 
15,148

Other real estate owned
Market comparable
Lack of marketability
0.0%
25.0%
10.50%
 
241

 
—

 
—

 
241

 
 
 
 
 
 
 
$
15,389

 
—

 
—

 
15,389


Other Fair Value Disclosures
Fair value estimates, methods and assumptions for the Company’s financial instruments not recorded at fair value on a recurring or non-recurring basis are set forth below.
Cash and Cash Equivalents
For cash and due from banks, the carrying amount approximates fair value.
Debt Securities Held-to-Maturity
Our debt securities held-to-maturity portfolio, consisting primarily of mortgage-backed securities and other debt securities for which we have a positive intent and ability to hold to maturity, is carried at amortized cost. Management utilizes various inputs to determine the fair value of the portfolio. The Company obtains one price for each security primarily from a third-party pricing service, which generally uses quoted or other observable inputs for the determination of fair value. The pricing service normally derives the security prices through recently reported trades for identical or similar securities, making adjustments through the reporting date based upon available observable market information. For securities not actively traded, the pricing service may use quoted market prices of comparable instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, benchmark yields, credit spreads, default rates, prepayment speeds and non-binding broker quotes. In the absence of quoted prices and in an illiquid market, valuation techniques, which require inputs that are both significant to the fair value measurement and unobservable, are used to determine fair value of the investment. Valuation techniques are based on various assumptions, including, but not limited to forecasted cash flows, discount rates, rate of return, adjustments for nonperformance and liquidity, and liquidation values. As the Company is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the prices received from the pricing service to a secondary pricing source. Additionally, the Company compares changes in the reported market values and returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification procedures and review of fair value methodology documentation provided by independent pricing services has not historically resulted in adjustment in the prices obtained from the pricing service.
FHLB Stock
The fair value of the Federal Home Loan Bank of New York (“FHLB”) stock is its carrying value, since this is the amount for which it could be redeemed. There is no active market for this stock and the Bank is required to hold a minimum investment based upon the balance of mortgage related assets held by the member and or FHLB advances outstanding.
Loans
Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential mortgage and consumer. Each loan category is further segmented into fixed and adjustable rate interest terms and by performing and non-performing categories.
The fair value estimates are made at a specific point in time based on relevant market information. They do not reflect any premium or discount that could result from offering for sale a particular financial instrument. Fair value estimates are based on judgments regarding future expected loss experience, risk characteristics and economic conditions. These estimates are subjective, involve uncertainties, and cannot be determined with precision.
Deposit Liabilities
The fair value of deposits with no stated maturity, such as savings, checking accounts and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates which approximate currently offered for deposits of similar remaining maturities.
Borrowings
The fair value of borrowings are based on securities dealers’ estimated fair values, when available, or estimated using discounted contractual cash flows using rates which approximate the rates offered for borrowings of similar remaining maturities.
Commitments to Extend Credit
The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For commitments to originate fixed rate loans, fair value also considers the difference between current levels of interest rates and the committed rates. Due to the short-term nature of our outstanding commitments, the fair values of these commitments are immaterial to our financial condition.
The carrying values and estimated fair values of the Company’s financial instruments are presented in the following table.
 
September 30, 2019
 
Carrying
 
Estimated Fair Value
 
value
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(In thousands)
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
195,400

 
195,400

 
195,400

 
—

 
—

Equities
6,030

 
6,030

 
6,030

 
—

 
—

Debt securities available-for-sale
2,644,024

 
2,644,024

 
—

 
2,644,024

 
—

Debt securities held-to-maturity
1,117,699

 
1,158,769

 
—

 
1,089,032

 
69,737

FHLB stock
273,996

 
273,996

 
273,996

 
—

 
—

Loans held for sale
31,373

 
31,373

 
—

 
31,373

 
—

Net loans
21,516,234

 
21,677,960

 
—

 
—

 
21,677,960

Derivative financial instruments
6,396

 
6,396

 
—

 
6,396

 
—

Financial liabilities:
 
 
 
 
 
 
 
 
 
Deposits, other than time deposits
$
13,173,915

 
13,173,915

 
13,173,915

 
—

 
—

Time deposits
4,498,841

 
4,498,964

 
—

 
4,498,964

 
—

Borrowed funds
5,694,553

 
5,702,437

 
—

 
5,702,437

 
—

Derivative financial instruments
178

 
178

 
—

 
178

 
—

 
December 31, 2018
 
Carrying
 
Estimated Fair Value
 
value
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(In thousands)
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
196,891

 
196,891

 
196,891

 
—

 
—

Equities
5,793

 
5,793

 
5,793

 
—

 
—

Debt securities available-for-sale
2,122,162

 
2,122,162

 
—

 
2,122,162

 
—

Debt securities held-to-maturity
1,555,137

 
1,558,564

 
—

 
1,476,565

 
81,999

FHLB stock
260,234

 
260,234

 
260,234

 
—

 
—

Loans held for sale
4,074

 
4,074

 
—

 
4,074

 
—

Net loans
21,378,136

 
21,085,185

 
—

 
—

 
21,085,185

Financial liabilities:
 
 
 
 
 
 
 
 
 
Deposits, other than time deposits
$
13,009,422

 
13,009,422

 
13,009,422

 
—

 
—

Time deposits
4,570,847

 
4,546,991

 
—

 
4,546,991

 
—

Borrowed funds
5,435,681

 
5,398,553

 
—

 
5,398,553

 
—

Derivative financial instruments
498

 
498

 
—

 
498

 
—


Limitations
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic
conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
Fair value estimates are based on existing on- and off-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. Significant assets that are not considered financial assets include deferred tax assets, premises and equipment and bank owned life insurance. Liabilities for pension and other postretirement benefits are not considered financial liabilities. 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.
v3.19.3
Recent Accounting Pronouncements (Policies)
 9 Months Ended
Sep. 30, 2019
Accounting Changes and Error Corrections [Abstract]  
Recent accounting pronouncements
Standard
Description
Required date of adoption
Effect on Consolidated Financial Statements
Standards Adopted in 2019
Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments
This ASU makes clarifications and corrections to the application of the guidance contained in each of the amended topics. Regarding Topic 815, ASU 2019-04 amends guidance pertaining to partial-term fair value hedges of interest rate risk, disclosure of fair value hedge basis adjustments, and scope for not-for-profit entities. For Topic 825, the amendments provide scope clarifications for Subtopics 320-10, Investments-Debt and Equity Securities-Overall, and 321-10, Investments-Equity Securities-Overall, held-to-maturity debt securities fair value disclosures, and remeasurement of equity securities at historical exchange rates. Improvements to Topic 326 include, among others, conforming amendments to Subtopics 310-40, Receivables-Troubled Debt Restructurings by Creditors, and 323-10, Investments-Equity Method and Joint Ventures-Overall, clarification that reinsurance recoverables are within the scope of Subtopic 326-20, Financial Instruments-Credit Losses-Measured at Amortized Cost, and consideration of estimated costs to sell when foreclosure is probable.
January 1, 2020

Early adoption permitted
The Company early adopted ASU 2019-04 on June 13, 2019. Since the Company has already adopted ASUs 2016-01 and 2017-12, the related amendments are effective as of June 13, 2019. As part of the adoption, the Company reclassified $393.1 million of debt securities held-to-maturity to debt securities available-for-sale. The Company did not reclassify debt securities from held-to-maturity to available-for-sale upon adoption of the amendments in ASU 2017-12. Entities that did not reclassify debt securities from held-to-maturity to available-for-sale upon adoption of the amendments in ASU 2017-12 and elect to reclassify debt securities upon adoption of the amendments in this update are required to reflect the reclassification as of the date of adoption of this update. Entities that reclassified debt securities from held to-maturity to available-for-sale upon adoption of the amendments in ASU 2017-12 are not permitted to make any additional reclassifications.
Leases (Topic 842)
The amendment requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date for leases classified as operating leases as well as finance leases. ASU 2018-01 provides an optional practical expedient to not evaluate land easements which were existing or expired before the adoption of Topic 842 that were not accounted for as leases under Topic 840. ASU 2018-10 provides an optional transition method under which comparative periods presented in the financial statements will continue to be in accordance with current Topic 840, Leases, and a practical expedient to not separate non-lease components from the associated lease component. ASU 2018-20 provides an accounting policy election for lessors related to sales and other similar taxes collected from lessees and addresses lessor accounting for variable payments. ASU 2019-01 addresses three issues related to (i) determination of the fair value of the underlying assets by lessors, (ii) presentation of sales-type and direct financing leases in the statement of cash flows and (iii) transition disclosures related to accounting changes and error corrections.
January 1, 2019
Upon adoption, the Company recognized operating lease right-of-use assets and related operating lease liabilities totaling $193.3 million and $200.7 million, respectively. The Company adopted this amendment utilizing a modified retrospective approach and the optional transition method under which we use the effective date as the date of initial application of the amendments. The modified retrospective approach includes practical expedients such that we will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. See Note 9 for expanded disclosures.
Derivatives and Hedging (Topic 815)-Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes
 The amendment permits the use of the Overnight Index Swap (OIS) Rate based on the Secured Overnight Financing Rate (SOFR) as a U.S. benchmark interest rate for hedge accounting purposes.
January 1, 2019
The Company is applying the amendments in this update prospectively for qualifying new or redesignated hedging relationships entered into on or after the effective date.

Standard
Description
Required date of adoption
Effect on Consolidated Financial Statements
Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting
The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees and to apply the guidance therein except for specific guidance on inputs to an option pricing model and the attribution of cost; i.e., the period of time over which share based payment awards vest and the pattern of cost recognition over that period. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide financing to the issuer or awards granted in conjunction with selling goods and services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. Upon adoption, an entity should remeasure liability-classified awards that have not been settled at date of adoption and equity-classified awards for which a measurement date has not been established through a cumulative-effect adjustment to retained earnings as of the first day of the fiscal year of adoption. Upon transition, an entity should measure these nonemployee awards at fair value as of the adoption date but must not remeasure assets that are completed.
January 1, 2019
The Company had applied the guidance of Topic 718 to its accounting for share-based payment awards to its Board of Directors prior to adoption of the amendments, and, therefore, this update did not have an impact on the Company’s Consolidated Financial Statements.
Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities
The amendments in this update require the premium on callable debt securities to be amortized to the earliest call date rather than the maturity date; however, securities held at a discount continue to be amortized to maturity. The amendments apply only to debt securities purchased at a premium that are callable at fixed prices and on preset dates. The amendments more closely align interest income recorded on debt securities held at a premium or discount with the economics of the underlying instrument.
January 1, 2019
The adoption of the amendments did not have an impact on the Company’s Consolidated Financial Statements.

Standard
Description
Required date of adoption
Effect on Consolidated Financial Statements
Standards Not Yet Adopted
Measurement of Credit Losses on Financial Instruments
This ASU changes how entities will report credit losses for financial assets held at amortized cost and available-for-sale debt securities. The amendments replace today’s “incurred loss” approach with a methodology that incorporates macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios based on relevant information about past events, including historical loss experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. The amendments will apply to financial assets such as loans, leases and held-to-maturity investments; and certain off-balance sheet credit exposures. The amendments expand credit quality disclosure requirements. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”, which clarifies the scope of the guidance in the amendments in ASU 2016-13 with respect to operating lease receivables. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments”, which clarifies and corrects certain unintended applications of the guidance contained in each of the amended Topics. Among other amendments, ASU 2019-04 provides measurement alternatives for the allowance on the accrued interest component of amortized cost and clarifies the process to transfer loans or debt securities between measurement categories. The update also provides guidance on the inclusion of expected recoveries in the determination of the allowance, the disclosure of line of credit arrangements in the vintage disclosure table and the effect of extension or renewal options on expected credit losses. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments - Credit Losses (Topic 326): TargetedTransition Relief.” The amendments provide an option to irrevocable elect the fair value option for certain financial assets previously measured at amortized cost. The election does not apply to held-to-maturity securities.
January 1, 2020
The Company will adopt the standard’s provisions as a cumulative-effect adjustment to retained earnings as of January 1, 2020 on a modified retrospective basis. The Company has established a cross departmental working group including Accounting, Finance, Treasury, Credit Risk, Information Technology and Internal Audit. The implementation plan is comprised of multiple items focused on credit models, data management and treasury and accounting considerations. The Company is finalizing model validation as it runs its credit models in parallel and is finalizing its methodology and policy documentation as well as the required disclosures. While the Company is currently unable to reasonably estimate the impact of adopting ASU 2016-13, it is expected that the impact upon adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date.
Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)
This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Specifically, where a cloud computing arrangement includes a license to internal-use software, the software license is accounted for by the customer in accordance with Subtopic 350-40, “Intangibles- Goodwill and Other-Internal-Use Software”.
January 1, 2020

Early adoption permitted
The amendments in this Update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect ASU No. 2018-15 to have a material impact on the Company’s Consolidated Financial Statements.
Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans
The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that no longer are considered cost beneficial, clarifying the specific requirements of disclosures, and adding disclosure requirements identified as relevant.
January 1, 2021

Early adoption permitted
The update is to be applied on a retrospective basis. The Company will evaluate the effect of ASU 2018-14 on disclosures with regard to employee benefit plans but does not expect a material impact on the Company’s Consolidated Financial Statements.

Standard
Description
Required date of adoption
Effect on Consolidated Financial Statements
Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement
The amendments remove the requirement to disclose the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of such transfers and the valuation processes for Level 3 fair value measurements. The ASU modifies the disclosure requirements for investments in certain entities that calculate net asset value and clarify the purpose of the measurement uncertainty disclosure. The ASU adds disclosure requirements about the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.
January 1, 2020

Early adoption permitted to any removed or modified disclosures and delay of adoption of additional disclosures until the effective date
Changes should be applied retrospectively to all periods presented upon the effective date with the exception of the following, which should be applied prospectively: disclosures relating to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the disclosures for uncertainty measurement. The adoption of ASU 2018-13 will not have a material impact on the Company’s Consolidated Financial Statements.
Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
This ASU simplifies subsequent measurement of goodwill by eliminating Step 2 of the impairment test while retaining the option to perform the qualitative assessment for a reporting unit to determine whether the quantitative impairment test is necessary. The ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units.
January 1, 2020

Early adoption permitted for interim or annual goodwill impairment testing dates beginning after January 1, 2017
The update is to be applied prospectively. The Company does not expect ASU No. 2017-04 to have a material impact on the Company’s Consolidated Financial Statements.
v3.19.3
Deposits (Summary of Deposits) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Non-interest bearing:    
Checking accounts $ 2,433,152 $ 2,535,848
Interest bearing:    
Checking accounts 5,103,007 4,783,563
Money market deposits 3,674,032 3,641,070
Savings 1,963,724 2,048,941
Certificates of deposit 4,498,841 4,570,847
Total deposits $ 17,672,756 $ 17,580,269
v3.19.3
Subsequent Event (Details) - $ / shares
 3 Months Ended 9 Months Ended
Nov. 25, 2019
Oct. 23, 2019
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Subsequent Event [Line Items]            
Dividends paid per share (usd per share)     $ 0.11 $ 0.09 $ 0.33 $ 0.27
Subsequent Event            
Subsequent Event [Line Items]            
Dividends declared per share (usd per share)   $ 0.11        
Scenario, Forecast | Subsequent Event            
Subsequent Event [Line Items]            
Dividends paid per share (usd per share) $ 0.11          
v3.19.3
Leases (Supplemental Balance Sheet Information) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Jan. 01, 2019
Leases [Abstract]    
Operating lease right-of-use assets $ 179,632 $ 193,300
Operating lease liabilities $ 189,927 $ 200,700
Weighted average remaining lease term 9 years 10 months 24 days  
Weighted average discount rate 2.74%  
v3.19.3
Equity Incentive Plan (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Jul. 22, 2019
Jun. 21, 2019
Jun. 09, 2015
Sep. 30, 2019
Sep. 30, 2019
Sep. 30, 2018
May 20, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Total stock options granted (in shares)         995,216 50,000    
Compensation not yet recognized       $ 10.4 $ 10.4      
Compensation cost not yet recognized, period for recognition         2 years 3 months 3 days      
Stock options surrendered (in shares)         5,169,858      
Exercise price (in usd per share)       $ 12.46 $ 12.46     $ 12.43
Restricted Stock                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Shares granted (shares)         2,345,919 71,982    
Compensation cost not yet recognized, period for recognition         3 years 14 days      
Compensation not yet recognized, restricted stock       $ 30.7 $ 30.7      
Restricted stock surrendered (in shares)         1,912,400      
Accelerated stock compensation expense       $ 2.0        
2015 Plan                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares authorized (shares)     30,881,296          
2015 Plan | Restricted Stock                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares authorized (shares)     13,234,841          
2015 Plan | Equity Option                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares authorized (shares)     17,646,455          
Expiration period (years)     10 years          
The Replacement Awards | Restricted Stock                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting percentage 59.00%              
The Replacement Awards | Equity Option                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period (years) 3 years              
Exercise price (in usd per share) $ 12.54              
Vesting percentage 25.00%              
Minimum | 2015 Plan                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period (years)     5 years          
Maximum | 2015 Plan                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period (years)     7 years          
Non-Employee Directors And Non-Directors | Restricted Stock                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Restricted stock surrendered (in shares)   95,694            
Chief Executive Officer                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock options surrendered (in shares)   1,333,333            
Chief Executive Officer | Restricted Stock                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Restricted stock surrendered (in shares)   925,000            
Chief Executive Officer | The Replacement Awards | Restricted Stock                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares authorized (shares)             925,000  
Chief Executive Officer | The Replacement Awards | Equity Option                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares authorized (shares)             525,120  
Company President                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock options surrendered (in shares)   1,066,667            
Company President | Restricted Stock                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Restricted stock surrendered (in shares)   740,000            
Company President | The Replacement Awards | Restricted Stock                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares authorized (shares)             740,000  
Company President | The Replacement Awards | Equity Option                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares authorized (shares)             420,096  
v3.19.3
Securities (Summary of Securities- AFS) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]    
Carrying value $ 2,598,140 $ 2,134,105
Gross unrealized gains 46,550 11,797
Gross unrealized losses 666 23,740
Debt securities available-for-sale, at estimated fair value 2,644,024 2,122,162
Federal Home Loan Mortgage Corporation    
Debt Securities, Available-for-sale [Line Items]    
Carrying value 1,170,764 988,348
Gross unrealized gains 21,250 6,492
Gross unrealized losses 492 8,190
Debt securities available-for-sale, at estimated fair value 1,191,522 986,650
Federal National Mortgage Association    
Debt Securities, Available-for-sale [Line Items]    
Carrying value 1,131,545 980,546
Gross unrealized gains 20,351 3,560
Gross unrealized losses 174 15,550
Debt securities available-for-sale, at estimated fair value 1,151,722 968,556
Government National Mortgage Association    
Debt Securities, Available-for-sale [Line Items]    
Carrying value 295,831 165,211
Gross unrealized gains 4,949 1,745
Gross unrealized losses 0 0
Debt securities available-for-sale, at estimated fair value $ 300,780 $ 166,956
v3.19.3
Business Combinations (Details)
$ / shares in Units, $ in Thousands
 9 Months Ended
Feb. 02, 2018
USD ($)
employee
Sep. 30, 2019
USD ($)
$ / shares
Sep. 30, 2018
USD ($)
Jul. 24, 2019
$ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
Business Acquisition [Line Items]          
Common stock, par value (usd per share) | $ / shares   $ 0.01     $ 0.01
Assets acquired   $ 26,725,163     $ 26,229,008
Loans of acquiree   21,516,234     21,378,136
Deposits of acquiree   17,672,756     17,580,269
Payments to acquire business   0 $ 340,183    
Goodwill   82,546     $ 82,546
Gold Coast Bancorp, Inc.          
Business Acquisition [Line Items]          
Percentage of common shares of acquiree converted into Investors Bancorp common stock       50.00%  
Percentage of acquiree shares exchanged for cash       50.00%  
Shares received in merger (in shares) | shares       1.422  
Common stock, par value (usd per share) | $ / shares       $ 0.01  
Cash per share received in merger (in usd per share) | $ / shares       $ 15.75  
Assets acquired   562,200      
Loans of acquiree   461,500      
Deposits of acquiree   $ 463,500      
Everbank Portfolio          
Business Acquisition [Line Items]          
Purchase price $ 345,800        
Number of employees in acquired entity | employee 7        
Payments to acquire business $ 340,200        
Goodwill $ 5,000        
v3.19.3
Stockholders' Equity
 9 Months Ended
Sep. 30, 2019
Stockholders' Equity Attributable to Parent [Abstract]  
Stockholders' Equity Stock Transactions
Stock Repurchase Program
On October 25, 2018, the Company announced its fourth share repurchase program, which authorized the purchase of 10% of its publicly-held outstanding shares of common stock, or 28,886,780 shares. The fourth program commenced immediately upon completion of the third program on December 10, 2018 and remains the Company’s current program as of September 30, 2019.
During the nine months ended September 30, 2019, the Company purchased 12,042,876 shares at a cost of $140.2 million, or approximately $11.65 per share. During the nine months ended September 30, 2019, shares repurchased included 383,836 shares withheld to cover income taxes related to restricted stock vesting under our 2015 Equity Incentive Plan. Shares withheld to pay income taxes are repurchased pursuant to the terms of the 2015 Equity Incentive Plan.
Stockholders’ Equity

 The changes in the components of stockholders’ equity for the three months ended September 30, 2019 and 2018 are as follows:
 
Common
stock
 
Additional
paid-in
capital
 
Retained
earnings
 
Treasury
stock
 
Unallocated
common
stock held
by ESOP
 
Accumulated
other
comprehensive
loss
 
Total
stockholders’
equity
 
(In thousands)
Balance at June 30, 2018
$
3,591

 
2,794,507

 
1,145,129

 
(729,944
)
 
(82,760
)
 
(39,540
)
 
3,090,983

Net income
—

 
—

 
54,224

 
—

 
—

 
—

 
54,224

Other comprehensive loss, net of tax
—

 
—

 
—

 
—

 
—

 
(1,577
)
 
(1,577
)
Purchase of treasury stock (6,891,729 shares)
—

 
—

 
—

 
(87,983
)
 
—

 
—

 
(87,983
)
Treasury stock allocated to restricted stock plan (46,876 shares)
—

 
(594
)
 
22

 
572

 
—

 
—

 
—

Compensation cost for stock options and restricted stock
—

 
4,665

 
—

 
—

 
—

 
—

 
4,665

Exercise of stock options
—

 
(23
)
 
—

 
126

 
—

 
—

 
103

Restricted stock forfeitures (82,946 shares)
—

 
1,040

 
(60
)
 
(980
)
 
—

 
—

 
—

Cash dividend paid ($0.09 per common share)
—

 
—

 
(26,700
)
 
—

 
—

 
—

 
(26,700
)
ESOP shares allocated or committed to be released
—

 
757

 
—

 
—

 
749

 
—

 
1,506

Balance at September 30, 2018
$
3,591

 
2,800,352

 
1,172,615

 
(818,209
)
 
(82,011
)
 
(41,117
)
 
3,035,221

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2019
$
3,591

 
2,809,851

 
1,206,873

 
(995,265
)
 
(79,764
)
 
(18,411
)
 
2,926,875

Net income
—

 
—

 
51,972

 
—

 
—

 
—

 
51,972

Other comprehensive loss, net of tax
—

 
—

 
—

 
—

 
—

 
(2,484
)
 
(2,484
)
Purchase of treasury stock (2,004,717 shares)
—

 
—

 
—

 
(22,486
)
 
—

 
—

 
(22,486
)
Treasury stock allocated to restricted stock plan (1,687,500 shares)
—

 
(21,129
)
 
101

 
21,028

 
—

 
—

 
—

Compensation cost for stock options and restricted stock
—

 
6,309

 
—

 
—

 
—

 
—

 
6,309

Exercise of stock options
—

 
(287
)
 
—

 
441

 
—

 
—

 
154

Restricted stock forfeitures (1,782,205 shares)
—

 
22,348

 
(1,354
)
 
(20,994
)
 
—

 
—

 
—

Cash dividend paid ($0.11 per common share)
—

 
—

 
(30,298
)
 
—

 
—

 
—

 
(30,298
)
ESOP shares allocated or committed to be released
—

 
576

 
—

 
—

 
749

 
—

 
1,325

Balance at September 30, 2019
$
3,591

 
2,817,668

 
1,227,294

 
(1,017,276
)
 
(79,015
)
 
(20,895
)
 
2,931,367
v3.19.3
Subsequent Events
 9 Months Ended
Sep. 30, 2019
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
As defined in FASB ASC 855, “Subsequent Events”, subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued or available to be issued. Financial statements are considered issued when they are widely distributed to stockholders and other financial statement users for general use and reliance in a form and format that complies with U.S. GAAP.
Dividend
On October 23, 2019, the Company declared a cash dividend of $0.11 per share. The $0.11 dividend per share will be paid to stockholders on November 25, 2019, with a record date of November 11, 2019.
v3.19.3
Leases (Maturity of Lease Liabilities) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Jan. 01, 2019
Leases [Abstract]    
Remainder of 2019 $ 6,026  
2020 24,067  
2021 23,817  
2022 22,077  
2023 21,032  
Thereafter 121,539  
Total lease payments 218,558  
Less: Imputed interest (28,631)  
Total operating lease liabilities $ 189,927 $ 200,700
v3.19.3
Loans Receivable, Net (Schedule of Troubled Debt Restructurings) (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
USD ($)
loan
Sep. 30, 2018
USD ($)
loan
Sep. 30, 2019
USD ($)
loan
Sep. 30, 2018
USD ($)
loan
Commercial Portfolio Segment | Commercial and Industrial Sector        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Number of Loans | loan 1 1 1 4
Pre-modification Recorded Investment | $ $ 270 $ 3,711 $ 270 $ 13,682
Post- modification Recorded Investment | $ $ 270 $ 3,711 $ 270 $ 13,682
Number of Loans | loan 1 1 1 4
Pre-modification Interest Yield 6.25% 5.75% 6.25% 5.94%
Post- modification Interest Yield 6.25% 5.75% 6.25% 5.94%
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Loans        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Number of Loans | loan 1 0 1 2
Pre-modification Recorded Investment | $ $ 96 $ 0 $ 96 $ 788
Post- modification Recorded Investment | $ $ 96 $ 0 $ 96 $ 616
Number of Loans | loan 1 0 1 2
Pre-modification Interest Yield 5.75% 0.00% 5.75% 4.68%
Post- modification Interest Yield 5.75% 0.00% 5.75% 4.68%
Consumer Portfolio Segment | Residential And Consumer        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Number of Loans | loan 4 3 14 15
Pre-modification Recorded Investment | $ $ 453 $ 1,215 $ 2,850 $ 2,715
Post- modification Recorded Investment | $ $ 453 $ 1,215 $ 2,850 $ 2,715
Number of Loans | loan 4 3 14 15
Pre-modification Interest Yield 4.00% 4.37% 5.07% 4.60%
Post- modification Interest Yield 3.82% 4.45% 4.96% 3.78%
v3.19.3
Recent Accounting Pronouncements (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Jun. 13, 2019
Jan. 01, 2019
Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Debt securities, available-for-sale $ 2,644,024     $ 2,122,162
Debt securities held-to-maturity, net (estimated fair value of $1,158,769 and $1,558,564 at September 30, 2019 and December 31, 2018, respectively) 1,117,699     $ 1,555,137
Operating lease right-of-use assets 179,632   $ 193,300  
Operating lease liabilities $ 189,927   $ 200,700  
Adjustments for New Accounting Principle, Early Adoption | Accounting Standards Update 2019-04        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Debt securities, available-for-sale   $ 393,100    
Debt securities held-to-maturity, net (estimated fair value of $1,158,769 and $1,558,564 at September 30, 2019 and December 31, 2018, respectively)   $ (393,100)    
v3.19.3
Leases (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Lessee, Lease, Description [Line Items]    
Option to terminate the lease (in years) 1 year  
Operating lease payments, 2019   $ 24.4
Operating lease payments, 2020   23.8
Operating lease payments, 2021   23.4
Operating lease payments, 2022   21.7
Operating lease payments, 2023   20.7
Operating lease payments, thereafter   $ 119.9
Maximum    
Lessee, Lease, Description [Line Items]    
Remaining lease term (in years) 17 years  
Renewal term (in years) 10 years  
v3.19.3
Securities (Summary of Securities- HTM) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Dec. 31, 2017
Schedule of Held-to-maturity Securities [Line Items]            
Net unrealized losses $ 77,948 $ 78,831 $ 80,595 $ 83,000 $ 83,923 $ 85,768
Carrying value 1,117,699   1,555,137      
Gross unrealized losses 759   34,754      
Estimated fair value 1,158,769   1,558,564      
Held-to-maturity:            
Schedule of Held-to-maturity Securities [Line Items]            
Amortized cost 1,133,324   1,572,275      
Net unrealized losses 15,625   17,138      
Carrying value 1,117,699   1,555,137      
Gross unrecognized gains 41,829   38,181      
Gross unrealized losses 759   34,754      
Estimated fair value 1,158,769   1,558,564      
Total debt securities held-to-maturity            
Schedule of Held-to-maturity Securities [Line Items]            
Amortized cost 226,788   133,066      
Net unrealized losses 15,035   15,854      
Carrying value 211,753   117,212      
Gross unrecognized gains 28,086   37,534      
Gross unrealized losses 199   1,236      
Estimated fair value 239,640   153,510      
Government-sponsored enterprises            
Schedule of Held-to-maturity Securities [Line Items]            
Amortized cost 50,453   41,258      
Net unrealized losses 0   0      
Carrying value 50,453   41,258      
Gross unrecognized gains 722   0      
Gross unrealized losses 0   1,236      
Estimated fair value 51,175   40,022      
Municipal bonds            
Schedule of Held-to-maturity Securities [Line Items]            
Amortized cost 99,273   25,513      
Net unrealized losses 0   0      
Carrying value 99,273   25,513      
Gross unrecognized gains 4,234   942      
Gross unrealized losses 0   0      
Estimated fair value 103,507   26,455      
Corporate and other debt securities            
Schedule of Held-to-maturity Securities [Line Items]            
Amortized cost 77,062   66,295      
Net unrealized losses 15,035   15,854      
Carrying value 62,027   50,441      
Gross unrecognized gains 23,130   36,592      
Gross unrealized losses 199   0      
Estimated fair value 84,958   87,033      
Mortgage-backed securities:            
Schedule of Held-to-maturity Securities [Line Items]            
Amortized cost 906,536   1,439,209      
Net unrealized losses 590   1,284      
Carrying value 905,946   1,437,925      
Gross unrecognized gains 13,743   647      
Gross unrealized losses 560   33,518      
Estimated fair value 919,129   1,405,054      
Federal Home Loan Mortgage Corporation            
Schedule of Held-to-maturity Securities [Line Items]            
Amortized cost 273,488   402,231      
Net unrealized losses 154   595      
Carrying value 273,334   401,636      
Gross unrecognized gains 4,670   112      
Gross unrealized losses 201   9,413      
Estimated fair value 277,803   392,335      
Federal National Mortgage Association            
Schedule of Held-to-maturity Securities [Line Items]            
Amortized cost 559,607   955,237      
Net unrealized losses 436   689      
Carrying value 559,171   954,548      
Gross unrecognized gains 7,930   535      
Gross unrealized losses 359   22,687      
Estimated fair value 566,742   932,396      
Government National Mortgage Association            
Schedule of Held-to-maturity Securities [Line Items]            
Amortized cost 73,441   81,741      
Net unrealized losses 0   0      
Carrying value 73,441   81,741      
Gross unrecognized gains 1,143   0      
Gross unrealized losses 0   1,418      
Estimated fair value $ 74,584   $ 80,323      
v3.19.3
Earnings Per Share (Summary of Calculations and Reconciliation of Basic to Diluted Earnings Per Share) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Earnings for basic and diluted earnings per common share        
Earnings applicable to common stockholders $ 51,972 $ 54,224 $ 146,754 $ 169,246
Shares        
Weighted-average common shares outstanding - basic (shares) 261,678,994 280,755,898 264,104,402 284,289,363
Effect of dilutive common stock equivalents (shares) 133,976 417,023 317,863 1,086,640
Weighted-average common shares outstanding - diluted (shares) 261,812,970 281,172,921 264,422,265 285,376,003
Earnings per common share        
Basic (usd per share) $ 0.20 $ 0.19 $ 0.56 $ 0.60
Diluted (usd per share) $ 0.20 $ 0.19 $ 0.55 $ 0.59
Equity awards        
Earnings per common share        
Securities excluded from computation of diluted earnings per share (shares) 8,142,370 10,059,247 6,723,858 9,796,551
v3.19.3
Derivatives and Hedging Activities (Narrative) (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
USD ($)
interest_rate_swap
Sep. 30, 2019
USD ($)
Derivative [Line Items]    
Interest rate swaps terminated | interest_rate_swap 3  
Derivative contracts    
Derivative [Line Items]    
Notional amounts of swaps terminated $ 1,000.0 $ 1,000.0
Derivatives designated as hedging instruments: | Derivative contracts    
Derivative [Line Items]    
Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense   $ 9.1
v3.19.3
Fair Value Measurements (Carrying Value of Our Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Assets:    
Equity securities $ 6,030 $ 5,793
Debt securities available-for-sale, at estimated fair value 2,644,024 2,122,162
Federal Home Loan Mortgage Corporation    
Assets:    
Debt securities available-for-sale, at estimated fair value 1,191,522 986,650
Federal National Mortgage Association    
Assets:    
Debt securities available-for-sale, at estimated fair value 1,151,722 968,556
Government National Mortgage Association    
Assets:    
Debt securities available-for-sale, at estimated fair value 300,780 166,956
Fair Value, Measurements, Recurring    
Assets:    
Equity securities 6,030 5,793
Debt securities available-for-sale, at estimated fair value 2,644,024 2,122,162
Liabilities:    
Derivative financial instruments   498
Fair Value, Measurements, Recurring | Federal Home Loan Mortgage Corporation    
Assets:    
Debt securities available-for-sale, at estimated fair value 1,191,522 986,650
Fair Value, Measurements, Recurring | Federal National Mortgage Association    
Assets:    
Debt securities available-for-sale, at estimated fair value 1,151,722 968,556
Fair Value, Measurements, Recurring | Government National Mortgage Association    
Assets:    
Debt securities available-for-sale, at estimated fair value 300,780 166,956
Level 1 | Fair Value, Measurements, Recurring    
Assets:    
Equity securities 6,030 5,793
Debt securities available-for-sale, at estimated fair value 0 0
Liabilities:    
Derivative financial instruments   0
Level 1 | Fair Value, Measurements, Recurring | Federal Home Loan Mortgage Corporation    
Assets:    
Debt securities available-for-sale, at estimated fair value 0 0
Level 1 | Fair Value, Measurements, Recurring | Federal National Mortgage Association    
Assets:    
Debt securities available-for-sale, at estimated fair value 0 0
Level 1 | Fair Value, Measurements, Recurring | Government National Mortgage Association    
Assets:    
Debt securities available-for-sale, at estimated fair value 0 0
Level 2 | Fair Value, Measurements, Recurring    
Assets:    
Equity securities 0 0
Debt securities available-for-sale, at estimated fair value 2,644,024 2,122,162
Liabilities:    
Derivative financial instruments   498
Level 2 | Fair Value, Measurements, Recurring | Federal Home Loan Mortgage Corporation    
Assets:    
Debt securities available-for-sale, at estimated fair value 1,191,522 986,650
Level 2 | Fair Value, Measurements, Recurring | Federal National Mortgage Association    
Assets:    
Debt securities available-for-sale, at estimated fair value 1,151,722 968,556
Level 2 | Fair Value, Measurements, Recurring | Government National Mortgage Association    
Assets:    
Debt securities available-for-sale, at estimated fair value 300,780 166,956
Level 3 | Fair Value, Measurements, Recurring    
Assets:    
Equity securities 0 0
Debt securities available-for-sale, at estimated fair value 0 0
Liabilities:    
Derivative financial instruments   0
Level 3 | Fair Value, Measurements, Recurring | Federal Home Loan Mortgage Corporation    
Assets:    
Debt securities available-for-sale, at estimated fair value 0 0
Level 3 | Fair Value, Measurements, Recurring | Federal National Mortgage Association    
Assets:    
Debt securities available-for-sale, at estimated fair value 0 0
Level 3 | Fair Value, Measurements, Recurring | Government National Mortgage Association    
Assets:    
Debt securities available-for-sale, at estimated fair value 0 0
Derivative contracts    
Assets:    
Interest rate swaps 106  
Liabilities:    
Derivative financial instruments 178 498
Derivative contracts | Fair Value, Measurements, Recurring    
Assets:    
Interest rate swaps 6,396  
Liabilities:    
Derivative financial instruments   432
Derivative contracts | Level 1 | Fair Value, Measurements, Recurring    
Assets:    
Interest rate swaps 0  
Liabilities:    
Derivative financial instruments   0
Derivative contracts | Level 2 | Fair Value, Measurements, Recurring    
Assets:    
Interest rate swaps 6,396  
Liabilities:    
Derivative financial instruments   432
Derivative contracts | Level 3 | Fair Value, Measurements, Recurring    
Assets:    
Interest rate swaps 0  
Liabilities:    
Derivative financial instruments   0
Other contracts | Fair Value, Measurements, Recurring    
Liabilities:    
Derivative financial instruments 178 66
Other contracts | Level 1 | Fair Value, Measurements, Recurring    
Liabilities:    
Derivative financial instruments 0 0
Other contracts | Level 2 | Fair Value, Measurements, Recurring    
Liabilities:    
Derivative financial instruments 178 66
Other contracts | Level 3 | Fair Value, Measurements, Recurring    
Liabilities:    
Derivative financial instruments $ 0 $ 0
v3.19.3
Comprehensive Income (Components of Comprehensive Income (Loss), Gross and Net Of Tax) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Net income, Gross $ 73,014 $ 73,425 $ 205,822 $ 227,629
Net income, Tax (21,042) (19,201) (59,068) (58,383)
Net income 51,972 54,224 146,754 169,246
Other comprehensive (loss) income, Gross (4,017) (1,750) (16,070) (13,423)
Other comprehensive (loss) income, Tax 1,533 173 6,744 2,251
Total other comprehensive loss (2,484) (1,577) (9,326) (11,172)
Comprehensive income, Gross 68,997 71,675 189,752 214,206
Comprehensive income, Tax (19,509) (19,028) (52,324) (56,132)
Total comprehensive income 49,488 52,647 137,428 158,074
Change in funded status of retirement obligations        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Other comprehensive (loss) income, Gross 19 142 56 428
Other comprehensive (loss) income, Tax (6) (40) (16) (120)
Total other comprehensive loss 13 102 40 308
Unrealized gains (losses) on debt securities available-for-sale        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Other comprehensive (loss) income, Gross 8,856 (9,725) 52,137 (48,419)
Other comprehensive (loss) income, Tax (2,058) 2,415 (12,532) 12,089
Total other comprehensive loss 6,798 (7,310) 39,605 (36,330)
Accretion of loss on debt securities reclassified to held-to-maturity from available-for-sale        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Other comprehensive (loss) income, Gross 94 208 694 662
Other comprehensive (loss) income, Tax (53) (59) (222) (187)
Total other comprehensive loss 41 149 472 475
Reclassification adjustment for security losses included in net income        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Other comprehensive (loss) income, Gross     5,690 0
Other comprehensive (loss) income, Tax     (1,469) 0
Total other comprehensive loss     4,221 0
Other-than-temporary impairment accretion on debt securities        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Other comprehensive (loss) income, Gross 317 300 819 900
Other comprehensive (loss) income, Tax (89) (84) (230) (253)
Total other comprehensive loss 228 216 589 647
Net (losses) gains on derivatives        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Other comprehensive (loss) income, Gross (13,303) 7,325 (75,466) 33,006
Other comprehensive (loss) income, Tax 3,739 (2,059) 21,213 (9,278)
Total other comprehensive loss $ (9,564) $ 5,266 $ (54,253) $ 23,728
v3.19.3
Equity Incentive Plan (Shares-based compensation expense) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Share-based Payment Arrangement [Abstract]        
Stock option expense $ 2,285 $ 1,326 $ 4,937 $ 4,226
Restricted stock expense 4,026 3,338 10,933 9,488
Total share based compensation expense $ 6,311 $ 4,664 $ 15,870 $ 13,714
v3.19.3
Revenue Recognition (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Disaggregation of Revenue [Line Items]        
Revenue $ 6,567 $ 5,333 $ 18,311 $ 15,991
Fees and service charges        
Disaggregation of Revenue [Line Items]        
Revenue 4,337 3,408 11,350 9,860
Other income        
Disaggregation of Revenue [Line Items]        
Revenue $ 2,230 $ 1,925 $ 6,961 $ 6,131
v3.19.3
Derivatives and Hedging Activities - Cumulative Basis Adjustment for Fair Value Hedges (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Carrying Amount of the Hedged Assets/(Liabilities) $ 479,231 $ 1,005,294
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) 7,741 $ 294
Amortized cost basis of the closed portfolios used in these hedging relationships 1,500,000  
Hedging adjustment on discontinued hedging relationships $ 3,500  
v3.19.3
Loans Receivable, Net (Summary of Loan Receivable) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans excluding PCI loans $ 21,742,078   $ 21,623,303      
PCI loans 4,132   4,461      
Deferred fees, premiums and other, net (1,991)   (13,811)      
Allowance for loan losses (227,985) $ (231,937) (235,817) $ (230,818) $ (230,838) $ (230,969)
Net loans 21,516,234   21,378,136      
Commercial Portfolio Segment            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans excluding PCI loans 15,734,899   15,565,053      
Commercial Portfolio Segment | Commercial and Industrial Sector            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans excluding PCI loans 2,681,577   2,389,756      
Commercial Portfolio Segment | Construction Loans            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans excluding PCI loans 289,857   227,015      
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Sector            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans excluding PCI loans 7,995,095   8,165,187      
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Sector            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans excluding PCI loans 4,768,370   4,783,095      
Consumer Portfolio Segment | Residential Mortgage Loans            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans excluding PCI loans 5,306,912   5,350,504      
Consumer Portfolio Segment | Consumer and Other Loans            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans excluding PCI loans $ 700,267   $ 707,746      
v3.19.3
Loans Receivable, Net (Payment Status of the Recorded Investment in Past Due Loans) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Financing Receivable, Past Due [Line Items]    
Total Past Due $ 144,956 $ 162,394
Current 21,597,122 21,460,909
Total Loans Receivable 21,742,078 21,623,303
30-59 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 59,199 63,112
60-89 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 24,763 16,312
Greater than 90 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 60,994 82,970
Commercial Portfolio Segment    
Financing Receivable, Past Due [Line Items]    
Total Past Due 83,499 88,612
Current 15,651,400 15,476,441
Total Loans Receivable 15,734,899 15,565,053
Commercial Portfolio Segment | Construction Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 9,427
Current 289,857 217,588
Total Loans Receivable 289,857 227,015
Commercial Portfolio Segment | 30-59 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 39,888 40,777
Commercial Portfolio Segment | 30-59 Days | Construction Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 9,200
Commercial Portfolio Segment | 60-89 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 12,596 6,950
Commercial Portfolio Segment | 60-89 Days | Construction Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Commercial Portfolio Segment | Greater than 90 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 31,015 40,885
Commercial Portfolio Segment | Greater than 90 Days | Construction Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 227
Commercial Portfolio Segment | Commercial and Industrial Sector    
Financing Receivable, Past Due [Line Items]    
Total Past Due 15,971 8,415
Current 2,665,606 2,381,341
Total Loans Receivable 2,681,577 2,389,756
Commercial Portfolio Segment | Commercial and Industrial Sector | 30-59 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 5,927 2,988
Commercial Portfolio Segment | Commercial and Industrial Sector | 60-89 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 4,694 867
Commercial Portfolio Segment | Commercial and Industrial Sector | Greater than 90 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 5,350 4,560
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 39,030 59,353
Current 7,956,065 8,105,834
Total Loans Receivable 7,995,095 8,165,187
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Loans | 30-59 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 16,006 23,098
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Loans | 60-89 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 3,517 2,572
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Loans | Greater than 90 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 19,507 33,683
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 28,498 11,417
Current 4,739,872 4,771,678
Total Loans Receivable 4,768,370 4,783,095
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Loans | 30-59 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 17,955 5,491
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Loans | 60-89 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 4,385 3,511
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Loans | Greater than 90 Days    
Financing Receivable, Past Due [Line Items]    
Total Past Due 6,158 2,415
Consumer Portfolio Segment | Residential Mortgage Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 53,419 60,778
Current 5,253,493 5,289,726
Total Loans Receivable 5,306,912 5,350,504
Consumer Portfolio Segment | Consumer and Other Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 8,038 13,004
Current 692,229 694,742
Total Loans Receivable 700,267 707,746
Consumer Portfolio Segment | 30-59 Days | Residential Mortgage Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 14,029 13,811
Consumer Portfolio Segment | 30-59 Days | Consumer and Other Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 5,282 8,524
Consumer Portfolio Segment | 60-89 Days | Residential Mortgage Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 10,644 7,712
Consumer Portfolio Segment | 60-89 Days | Consumer and Other Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,523 1,650
Consumer Portfolio Segment | Greater than 90 Days | Residential Mortgage Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due 28,746 39,255
Consumer Portfolio Segment | Greater than 90 Days | Consumer and Other Loans    
Financing Receivable, Past Due [Line Items]    
Total Past Due $ 1,233 $ 2,830
v3.19.3
Comprehensive Income (Tables)
 9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Components of comprehensive income

 The components of comprehensive income, gross and net of tax, are as follows:
 
Three Months Ended September 30,
 
2019
 
2018
 
Gross
 
Tax
 
Net
 
Gross
 
Tax
 
Net
 
(Dollars in thousands)
Net income
$
73,014

 
(21,042
)
 
51,972

 
73,425

 
(19,201
)
 
54,224

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
 
 
Change in funded status of retirement obligations
19

 
(6
)
 
13

 
142

 
(40
)
 
102

Unrealized gains (losses) on debt securities available-for-sale
8,856

 
(2,058
)
 
6,798

 
(9,725
)
 
2,415

 
(7,310
)
Accretion of loss on debt securities reclassified to held-to-maturity from available-for-sale
94

 
(53
)
 
41

 
208

 
(59
)
 
149

Other-than-temporary impairment accretion on debt securities
317

 
(89
)
 
228

 
300

 
(84
)
 
216

Net (losses) gains on derivatives
(13,303
)
 
3,739

 
(9,564
)
 
7,325

 
(2,059
)
 
5,266

Total other comprehensive loss
(4,017
)
 
1,533

 
(2,484
)
 
(1,750
)
 
173

 
(1,577
)
Total comprehensive income
$
68,997

 
(19,509
)
 
49,488

 
71,675

 
(19,028
)
 
52,647


 
Nine Months Ended September 30,
 
2019
 
2018
 
Gross
 
Tax
 
Net
 
Gross
 
Tax
 
Net
 
(Dollars in thousands)
Net income
$
205,822

 
(59,068
)
 
146,754

 
227,629

 
(58,383
)
 
169,246

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
 
 
Change in funded status of retirement obligations
56

 
(16
)
 
40

 
428

 
(120
)
 
308

Unrealized gains (losses) on debt securities available-for-sale
52,137

 
(12,532
)
 
39,605

 
(48,419
)
 
12,089

 
(36,330
)
Accretion of loss on securities reclassified to held-to-maturity from available-for-sale
694

 
(222
)
 
472

 
662

 
(187
)
 
475

Reclassification adjustment for security losses included in net income
5,690

 
(1,469
)
 
4,221

 
—

 
—

 
—

Other-than-temporary impairment accretion on debt securities
819

 
(230
)
 
589

 
900

 
(253
)
 
647

Net (losses) gains on derivatives
(75,466
)
 
21,213

 
(54,253
)
 
33,006

 
(9,278
)
 
23,728

Total other comprehensive loss
(16,070
)
 
6,744

 
(9,326
)
 
(13,423
)
 
2,251

 
(11,172
)
Total comprehensive income
$
189,752

 
(52,324
)
 
137,428

 
214,206

 
(56,132
)
 
158,074
Component of accumulated other comprehensive loss
The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the nine months ended September 30, 2019 and 2018:

 
Change in
funded status of
retirement
obligations
 
Accretion of loss on debt securities reclassified to held-to-maturity
 
Unrealized (losses) gains
on debt securities
available-for-sale and gains included in net income
 
Other-than-
temporary
impairment
accretion on  debt
securities
 
Unrealized gains (losses) on derivatives
 
Total
accumulated
other
comprehensive
loss
 
(Dollars in thousands)
Balance - December 31, 2018
$
(3,018
)
 
(921
)
 
(8,884
)
 
(11,397
)
 
12,651

 
(11,569
)
Net change
40

 
472

 
43,826

 
589

 
(54,253
)
 
(9,326
)
Balance - September 30, 2019
$
(2,978
)
 
(449
)
 
34,942

 
(10,808
)
 
(41,602
)
 
(20,895
)
 
 
 
 
 
 
 
 
 
 
 
 
Balance - December 31, 2017
$
(5,640
)
 
(1,520
)
 
(21,184
)
 
(14,482
)
 
13,487

 
(29,339
)
Net change
308

 
475

 
(36,330
)
 
647

 
23,728

 
(11,172
)
Reclassification due to the adoption of ASU No. 2016-01
—

 
—

 
(606
)
 
—

 
—

 
(606
)
Balance - September 30, 2018
$
(5,332
)
 
(1,045
)
 
(58,120
)
 
(13,835
)
 
37,215

 
(41,117
)

The following table presents information about amounts reclassified from accumulated other comprehensive loss to the consolidated statements of income and the affected line item in the statement where net income is presented.

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Reclassification adjustment for losses included in net income
 
 
 
 
 
 
 
Loss on securities, net
$
—

 
—

 
5,690

 
—

Change in funded status of retirement obligations
 
 
 
 
 
 
 
Amortization of net (gain) loss
(2
)
 
129

 
(6
)
 
388

Interest expense
 
 
 
 
 
 
 
Reclassification adjustment for unrealized gains on derivatives
(509
)
 
(822
)
 
(4,327
)
 
(1,059
)
Total before tax
(511
)
 
(693
)
 
1,357

 
(671
)
Income tax benefit (expense)
147

 
181

 
(225
)
 
172

Net of tax
$
(364
)
 
(512
)
 
1,132

 
(499
)
v3.19.3
Leases (Tables)
 9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Supplemental Balance Sheet Information
The following table presents the balance sheet information related to our leases:
 
September 30, 2019
 
(Dollars in thousands)
Operating lease right-of-use assets
$
179,632

Operating lease liabilities
189,927

Weighted average remaining lease term
9.9 years

Weighted average discount rate
2.74
%
Lease Cost
The following table presents the components of total lease cost recognized in the Consolidated Statements of Income:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2019
 
(In thousands)
Included in office occupancy and equipment expense:
 
 
 
Operating lease cost
$
6,320

 
18,963

Short-term lease cost
74

 
229

Variable lease cost
—

 
(1
)
Included in other income:
 
 
 
Sublease income
67

 
201

The following table presents supplemental cash flow information related to leases:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2019
 
(In thousands)
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases
$
6,173

 
18,470

Operating lease liabilities arising from obtaining right-of-use assets (non-cash):
Operating leases
577

 
2,358
Maturity of Operating Lease Liabilities
Future minimum operating lease payments and reconciliation to operating lease liabilities at September 30, 2019:
 
September 30, 2019
 
(In thousands)
Remainder of 2019
$
6,026

2020
24,067

2021
23,817

2022
22,077

2023
21,032

Thereafter
121,539

Total lease payments
218,558

Less: Imputed interest
(28,631
)
Total operating lease liabilities
$
189,927
v3.19.3
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
ASSETS    
Cash and cash equivalents $ 195,400 $ 196,891
Equity securities 6,030 5,793
Debt securities available-for-sale, at estimated fair value 2,644,024 2,122,162
Debt securities held-to-maturity, net (estimated fair value of $1,158,769 and $1,558,564 at September 30, 2019 and December 31, 2018, respectively) 1,117,699 1,555,137
Loans receivable, net 21,516,234 21,378,136
Loans held-for-sale 31,373 4,074
Federal Home Loan Bank stock 273,996 260,234
Accrued interest receivable 83,951 77,501
Other real estate owned and other repossessed assets 12,675 6,911
Office properties and equipment, net 171,266 177,432
Operating lease right-of-use assets 179,632  
Net deferred tax asset 108,634 104,411
Bank owned life insurance 216,925 211,914
Goodwill and intangible assets 97,566 99,063
Other assets 69,758 29,349
Total assets 26,725,163 26,229,008
Liabilities:    
Deposits 17,672,756 17,580,269
Borrowed funds 5,694,553 5,435,681
Advance payments by borrowers for taxes and insurance 147,359 129,891
Operating lease liabilities 189,927  
Other liabilities 89,201 77,837
Total liabilities 23,793,796 23,223,678
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.01 par value, 100,000,000 authorized shares; none issued 0 0
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 359,070,852 issued at September 30, 2019 and December 31, 2018; 274,756,421 and 286,273,114 outstanding at September 30, 2019 and December 31, 2018, respectively 3,591 3,591
Additional paid-in capital 2,817,668 2,805,423
Retained earnings 1,227,294 1,173,897
Treasury stock, at cost; 84,314,431 and 72,797,738 shares at September 30, 2019 and December 31, 2018, respectively (1,017,276) (884,750)
Unallocated common stock held by the employee stock ownership plan (79,015) (81,262)
Accumulated other comprehensive loss (20,895) (11,569)
Total stockholders’ equity 2,931,367 3,005,330
Total liabilities and stockholders’ equity $ 26,725,163 $ 26,229,008
v3.19.3
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common stock
Additional paid-in capital
Retained earnings
Treasury stock
Unallocated common stock held by ESOP
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Reclassification due to the adoption of ASU No. 2016-01 $ (606)            
Balance, beginning of period at Dec. 31, 2017 3,125,451 $ 3,591 $ 2,784,390 $ 1,084,177 $ (633,110) $ (84,258) $ (29,339)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 169,246     169,246      
Other comprehensive loss, net of tax (11,172)           (11,172)
Purchase of treasury stock (191,003)       (191,003)    
Treasury stock allocated to restricted stock plan 0   (935) 58 877    
Compensation cost for stock options and restricted stock 13,798   13,798        
Exercise of stock options 5,324   (4,023)   9,347    
Restricted stock forfeitures 0   4,626 (306) (4,320)    
Cash dividend paid (81,166)     (81,166)      
ESOP shares allocated or committed to be released 4,743   2,496     2,247  
Balance, end of period at Sep. 30, 2018 3,035,221 3,591 2,800,352 1,172,615 (818,209) (82,011) (41,117)
Balance, beginning of period at Jun. 30, 2018 3,090,983 3,591 2,794,507 1,145,129 (729,944) (82,760) (39,540)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 54,224     54,224      
Other comprehensive loss, net of tax (1,577)           (1,577)
Purchase of treasury stock (87,983)       (87,983)    
Treasury stock allocated to restricted stock plan 0   (594) 22 572    
Compensation cost for stock options and restricted stock 4,665   4,665        
Exercise of stock options 103   (23)   126    
Restricted stock forfeitures 0   1,040 (60) (980)    
Cash dividend paid (26,700)     (26,700)      
ESOP shares allocated or committed to be released 1,506   757     749  
Balance, end of period at Sep. 30, 2018 3,035,221 3,591 2,800,352 1,172,615 (818,209) (82,011) (41,117)
Balance, beginning of period at Dec. 31, 2018 3,005,330 3,591 2,805,423 1,173,897 (884,750) (81,262) (11,569)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 146,754     146,754      
Other comprehensive loss, net of tax (9,326)           (9,326)
Purchase of treasury stock (140,241)       (140,241)    
Treasury stock allocated to restricted stock plan 0   (29,140) 33 29,107    
Compensation cost for stock options and restricted stock 15,875   15,875        
Exercise of stock options 813   (573)   1,386    
Restricted stock forfeitures 0   24,233 (1,455) (22,778)    
Cash dividend paid (91,935)     (91,935)      
ESOP shares allocated or committed to be released 4,097   1,850     2,247  
Balance, end of period at Sep. 30, 2019 2,931,367 3,591 2,817,668 1,227,294 (1,017,276) (79,015) (20,895)
Balance, beginning of period at Jun. 30, 2019 2,926,875 3,591 2,809,851 1,206,873 (995,265) (79,764) (18,411)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 51,972     51,972      
Other comprehensive loss, net of tax (2,484)           (2,484)
Purchase of treasury stock (22,486)       (22,486)    
Treasury stock allocated to restricted stock plan 0   (21,129) 101 21,028    
Compensation cost for stock options and restricted stock 6,309   6,309        
Exercise of stock options 154   (287)   441    
Restricted stock forfeitures 0   22,348 (1,354) (20,994)    
Cash dividend paid (30,298)     (30,298)      
ESOP shares allocated or committed to be released 1,325   576     749  
Balance, end of period at Sep. 30, 2019 $ 2,931,367 $ 3,591 $ 2,817,668 $ 1,227,294 $ (1,017,276) $ (79,015) $ (20,895)
v3.19.3
Equity Incentive Plan
 9 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement [Abstract]  
Equity Incentive Plan Equity Incentive Plan
At the annual meeting held on June 9, 2015, stockholders of the Company approved the Investors Bancorp, Inc. 2015 Equity Incentive Plan (“2015 Plan”) which provides for the issuance or delivery of up to 30,881,296 shares (13,234,841 restricted stock awards and 17,646,455 stock options) of Investors Bancorp, Inc. common stock.
Restricted shares granted under the 2015 Plan vest in equal installments, over the service period generally ranging from 5 to 7 years beginning one year from the date of grant. Additionally, certain restricted shares awarded are performance vesting awards, which may or may not vest depending upon the attainment of certain corporate financial targets. The vesting of restricted stock may accelerate in accordance with the terms of the 2015 Plan. The product of the number of shares granted and the grant date closing market price of the Company’s common stock determine the fair value of restricted shares under the 2015 Plan. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period. For the nine months ended September 30, 2019 and September 30, 2018, the Company granted 2,345,919 and 71,982 shares of restricted stock awards under the 2015 Plan, respectively.
Stock options granted under the 2015 Plan vest in equal installments, over the service period generally ranging from 5 to 7 years beginning one year from the date of grant. The vesting of stock options may accelerate in accordance with the terms of the 2015 Plan. Stock options were granted at an exercise price equal to the fair value of the Company’s common stock on the grant date based on the closing market price and have an expiration period of 10 years. For the nine months ended September 30, 2019 and September 30, 2018, the Company granted 995,216 and 50,000 stock options under the 2015 Plan, respectively.
The fair value of stock options granted as part of the 2015 Plan was estimated utilizing the Black-Scholes option pricing model using the following assumptions for the periods presented below:
 
Nine Months Ended September 30,
 
2019
 
2018
Weighted average expected life (in years)
4.83

 
6.50

Weighted average risk-free rate of return
1.86
%
 
2.80
%
Weighted average volatility
19.92
%
 
17.71
%
Dividend yield
3.96
%
 
2.78
%
Weighted average fair value of options granted
$
0.89

 
$
1.94

Total stock options granted
995,216

 
50,000


The weighted average expected life of the stock option represents the period of time that stock options are expected to be outstanding and is estimated using historical data of stock option exercises and forfeitures. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is based on the historical volatility of the Company’s stock. The Company recognizes compensation expense for the fair values of these awards, which have graded vesting, on a straight-line basis over the requisite service period of the awards. Upon exercise of vested options, management expects to draw on treasury stock as the source for shares.
The following table presents the share based compensation expense for the three and nine months ended September 30, 2019 and 2018:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Stock option expense
$
2,285

 
1,326

 
4,937

 
4,226

Restricted stock expense
4,026

 
3,338

 
10,933

 
9,488

Total share based compensation expense
$
6,311

 
4,664

 
15,870

 
13,714



The following is a summary of the Company’s stock option activity and related information for the nine months ended September 30, 2019:
 
 
Number of
Stock
Options
 
Weighted Average
Exercise Price
 
Weighted Average
Remaining
Contractual
Life (in years)
 
Aggregate
Intrinsic Value
Outstanding at December 31, 2018
 
10,216,047

 
$
12.43

 
6.5
 
$
522

Granted(1)
 
995,216

 
12.53

 
5.9
 
 
Exercised
 
(111,802
)
 
7.28

 
3.3
 
 
Forfeited(1)
 
(5,169,858
)
 
12.53

 
 
 
 
Expired
 
(174,000
)
 
12.43

 
 
 
 
Outstanding at September 30, 2019
 
5,755,603

 
12.46

 
5.8
 
287

Exercisable at September 30, 2019
 
3,038,063

 
$
12.40

 
5.7
 
$
286


(1) Reflects the impact of the shareholder litigation settlement as noted below.    
Expected future expense relating to the non-vested options outstanding as of September 30, 2019 is $10.4 million over a weighted average period of 2.26 years.
The following is a summary of the status of the Company’s restricted shares as of September 30, 2019 and changes therein during the nine months ended:
 
 
Number of Shares Awarded
 
Weighted Average Grant Date Fair Value
Outstanding at December 31, 2018
 
3,477,747

 
$
12.69

Granted(1)
 
2,345,919

 
12.42

Vested
 
(1,011,670
)
 
12.67

Forfeited(1)(2)
 
(1,912,400
)
 
12.55

Outstanding and non vested at September 30, 2019
 
2,899,596

 
$
12.58


(1) Reflects the impact of the shareholder litigation settlement as noted below.    
(2) Excludes 19,138 shares forfeited in connection with the shareholder litigation settlement which had vested prior to December 31, 2018.
Expected future expense relating to the non-vested restricted shares outstanding as of September 30, 2019 is $30.7 million over a weighted average period of 3.04 years.

Shareholder Litigation Settlement
On March 6, 2019, a Stipulation and Agreement of Compromise, Settlement and Release was filed in the Court of Chancery of the State of Delaware (the “Court”) in relation to a lawsuit involving the Company and certain of its current and former directors entitled In re Investors Bancorp Inc. Stockholder Litigation, C.A. No. 12327-VCS (the “Settlement”). The Settlement resolves a lawsuit challenging the equity compensation granted on or about June 23, 2015 to persons who were then-directors of the Company.
    
    
    
On June 21, 2019, the Court entered an order approving the Settlement. Following the expiration of a thirty-day appeal period, the Settlement became effective. Accordingly, pursuant to the Settlement (i) all of the stock options granted to non-employee directors (excluding Brendan J. Dugan who is deceased) and stock options granted to Paul Stathoulopoulos (who was not a director of the Company at the time of the equity grant on or about June 23, 2015), have been surrendered; (ii) a total of 95,694 shares of the restricted stock granted to the then non-employee directors of the Company (excluding Brendan J. Dugan) and to then non-director Paul Stathoulopoulos scheduled to vest in 2020 have been surrendered; and (iii) 925,000 shares of restricted stock and 1,333,333 stock options granted to the Company’s Chief Executive Officer and 740,000 shares of restricted stock and 1,066,667 stock options granted to the Company’s President have been surrendered. As a result of the Settlement, the Company recorded $2.0 million of accelerated stock compensation expense during the third quarter of 2019.
The Compensation and Benefits Committee, with the assistance of its independent legal advisor and compensation consultant, considered the issuance of equity grants to both the Company’s Chief Executive Officer and President to replace those being surrendered pursuant to the Settlement. On May 20, 2019, the Compensation and Benefits Committee authorized and approved, and recommended to the Board of Directors (the “Board”), the issuance of (i) 925,000 shares of restricted stock and 525,120 stock options to the Company’s Chief Executive Officer, and (ii) 740,000 shares of restricted stock and 420,096 stock options to the Company’s President (the “Replacement Awards”). The Board, excluding both the Company’s Chief Executive Officer and President, determined that it was advisable and in the best interests of the Company to approve and issue the Replacement Awards, subject to the surrender of awards pursuant to the Settlement.
The Replacement Awards were subsequently issued to both the Company’s Chief Executive Officer and President on July 22, 2019. The Replacement Awards were issued from the 2015 Equity Incentive Plan and were accounted for as a modification of the original awards, which resulted in no incremental expense as the compensation cost of the Replacement Awards was less than the compensation cost of the original awards. The stock options have an exercise price of $12.54 per share and vested 25% on July 22, 2019 with the remaining to vest ratably over a three-year period. Approximately 59% of the restricted shares vested on July 22, 2019 with the remainder to vest on the same vesting schedule as applicable to the June 23, 2015 award.

On September 26, 2019, a related shareholder derivative action was filed in the Delaware Chancery Court. The complaint claims breach of fiduciary duty on the part of the Company’s Board of Directors in the issuance of the replacement awards to both the Company’s Chief Executive Officer and President in connection with the settlement of the case referenced above.
v3.19.3
Stock Transactions
 9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Stock Transactions Stock Transactions
Stock Repurchase Program
On October 25, 2018, the Company announced its fourth share repurchase program, which authorized the purchase of 10% of its publicly-held outstanding shares of common stock, or 28,886,780 shares. The fourth program commenced immediately upon completion of the third program on December 10, 2018 and remains the Company’s current program as of September 30, 2019.
During the nine months ended September 30, 2019, the Company purchased 12,042,876 shares at a cost of $140.2 million, or approximately $11.65 per share. During the nine months ended September 30, 2019, shares repurchased included 383,836 shares withheld to cover income taxes related to restricted stock vesting under our 2015 Equity Incentive Plan. Shares withheld to pay income taxes are repurchased pursuant to the terms of the 2015 Equity Incentive Plan.
Stockholders’ Equity

 The changes in the components of stockholders’ equity for the three months ended September 30, 2019 and 2018 are as follows:
 
Common
stock
 
Additional
paid-in
capital
 
Retained
earnings
 
Treasury
stock
 
Unallocated
common
stock held
by ESOP
 
Accumulated
other
comprehensive
loss
 
Total
stockholders’
equity
 
(In thousands)
Balance at June 30, 2018
$
3,591

 
2,794,507

 
1,145,129

 
(729,944
)
 
(82,760
)
 
(39,540
)
 
3,090,983

Net income
—

 
—

 
54,224

 
—

 
—

 
—

 
54,224

Other comprehensive loss, net of tax
—

 
—

 
—

 
—

 
—

 
(1,577
)
 
(1,577
)
Purchase of treasury stock (6,891,729 shares)
—

 
—

 
—

 
(87,983
)
 
—

 
—

 
(87,983
)
Treasury stock allocated to restricted stock plan (46,876 shares)
—

 
(594
)
 
22

 
572

 
—

 
—

 
—

Compensation cost for stock options and restricted stock
—

 
4,665

 
—

 
—

 
—

 
—

 
4,665

Exercise of stock options
—

 
(23
)
 
—

 
126

 
—

 
—

 
103

Restricted stock forfeitures (82,946 shares)
—

 
1,040

 
(60
)
 
(980
)
 
—

 
—

 
—

Cash dividend paid ($0.09 per common share)
—

 
—

 
(26,700
)
 
—

 
—

 
—

 
(26,700
)
ESOP shares allocated or committed to be released
—

 
757

 
—

 
—

 
749

 
—

 
1,506

Balance at September 30, 2018
$
3,591

 
2,800,352

 
1,172,615

 
(818,209
)
 
(82,011
)
 
(41,117
)
 
3,035,221

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2019
$
3,591

 
2,809,851

 
1,206,873

 
(995,265
)
 
(79,764
)
 
(18,411
)
 
2,926,875

Net income
—

 
—

 
51,972

 
—

 
—

 
—

 
51,972

Other comprehensive loss, net of tax
—

 
—

 
—

 
—

 
—

 
(2,484
)
 
(2,484
)
Purchase of treasury stock (2,004,717 shares)
—

 
—

 
—

 
(22,486
)
 
—

 
—

 
(22,486
)
Treasury stock allocated to restricted stock plan (1,687,500 shares)
—

 
(21,129
)
 
101

 
21,028

 
—

 
—

 
—

Compensation cost for stock options and restricted stock
—

 
6,309

 
—

 
—

 
—

 
—

 
6,309

Exercise of stock options
—

 
(287
)
 
—

 
441

 
—

 
—

 
154

Restricted stock forfeitures (1,782,205 shares)
—

 
22,348

 
(1,354
)
 
(20,994
)
 
—

 
—

 
—

Cash dividend paid ($0.11 per common share)
—

 
—

 
(30,298
)
 
—

 
—

 
—

 
(30,298
)
ESOP shares allocated or committed to be released
—

 
576

 
—

 
—

 
749

 
—

 
1,325

Balance at September 30, 2019
$
3,591

 
2,817,668

 
1,227,294

 
(1,017,276
)
 
(79,015
)
 
(20,895
)
 
2,931,367
v3.19.3
Loans Receivable, Net
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Loans Receivable, Net Loans Receivable, Net
The detail of the loan portfolio as of September 30, 2019 and December 31, 2018 was as follows:

 
September 30,
2019
 
December 31,
2018
 
(In thousands)
Multi-family loans
$
7,995,095

 
8,165,187

Commercial real estate loans
4,768,370

 
4,783,095

Commercial and industrial loans
2,681,577

 
2,389,756

Construction loans
289,857

 
227,015

Total commercial loans
15,734,899

 
15,565,053

Residential mortgage loans
5,306,912

 
5,350,504

Consumer and other loans
700,267

 
707,746

Total loans excluding PCI loans
21,742,078

 
21,623,303

PCI loans
4,132

 
4,461

Deferred fees, premiums and other, net (1)
(1,991
)
 
(13,811
)
Allowance for loan losses
(227,985
)
 
(235,817
)
Net loans
$
21,516,234

 
21,378,136


(1) Included in deferred fees and premiums are accretable purchase accounting adjustments in connection with loans acquired and an adjustment to the carrying amount of the residential loans hedged.

Allowance for Loan Losses
An analysis of the allowance for loan losses is summarized as follows:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Balance at beginning of the period
$
231,937

 
230,838

 
235,817

 
230,969

Loans charged off
(3,354
)
 
(6,014
)
 
(10,980
)
 
(20,157
)
Recoveries
1,902

 
3,994

 
5,648

 
11,506

Net charge-offs
(1,452
)
 
(2,020
)
 
(5,332
)
 
(8,651
)
Provision for loan losses
(2,500
)
 
2,000

 
(2,500
)
 
8,500

Balance at end of the period
$
227,985

 
230,818

 
227,985

 
230,818


The allowance for loan losses is the estimated amount considered necessary to cover credit losses inherent in the loan portfolio at the balance sheet date. The allowance is established through the provision for loan losses that is charged against income. In determining the allowance for loan losses, we make significant estimates and therefore, have identified the allowance as a critical accounting policy. The methodology for determining the allowance for loan 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 economic environment that could result in changes to the amount of the recorded allowance for loan losses.
The allowance for loan losses has been determined in accordance with U.S. GAAP, under which we are required to maintain an allowance for probable losses at the balance sheet date. We are responsible for the timely and periodic determination of the amount of the allowance required. We believe that our allowance for loan losses is adequate to cover specifically identifiable losses, as well as estimated losses inherent in our portfolio for which certain losses are probable but not specifically identifiable. Loans acquired are marked to fair value on the date of acquisition with no valuation allowance reflected in the allowance for loan losses. In conjunction with the quarterly evaluation of the adequacy of the allowance for loan losses, the Company performs an analysis on acquired loans to determine whether or not an allowance should be ascribed to those loans. Purchased Credit-Impaired (“PCI”) loans, are loans acquired at a discount that is due, in part, to credit quality. PCI loans are accounted for in accordance with ASC Subtopic 310-30 and are initially recorded at fair value as determined by the present value of expected future cash flows with no valuation allowance reflected
in the allowance for loan losses. For the nine months ended September 30, 2019 and 2018, the Company recorded charge-offs of $7,000 and $343,000, respectively, related to PCI loans acquired.
Management performs a quarterly evaluation of the adequacy of the allowance for loan losses. The analysis of the allowance for loan losses has two components: collectively evaluated for impairment and individually evaluated for impairment. Specific allocations are made for loans determined to be impaired. A loan is deemed to be impaired if it is a commercial loan with an outstanding balance greater than $1.0 million and on non-accrual status, loans modified in a troubled debt restructuring (“TDR”), and other commercial loans greater than $1.0 million if management has specific information that it is probable they will not collect all amounts due under the contractual terms of the loan agreement. Impairment is measured by determining the present value of expected future cash flows or, for collateral-dependent loans, the fair value of the collateral adjusted for market conditions and selling expenses. The allowance for loans collectively evaluated for impairment is determined by applying quantitative loss factors to the loans collectively evaluated for impairment segregated by type of loan, risk rating (if applicable) and payment history. In addition, the Company’s residential portfolio is subdivided between fixed and adjustable rate loans as adjustable rate loans are deemed to be subject to more credit risk if interest rates rise. Quantitative loss factors for each loan segment are generally determined based on the Company’s historical loss experience over an appropriate look-back period. Additionally, management assesses the loss emergence period for the expected losses of each loan segment and adjusts each quantitative loss factor accordingly. The loss emergence period is the estimated time from the date of a loss event (such as a personal bankruptcy) to the actual recognition of the loss (typically via the first full or partial loan charge-off), and is determined based upon a study of the Company’s past loss experience by loan segment. The quantitative loss factors may also be adjusted to account for qualitative factors, both internal and external to the Company, that are likely to cause estimated credit losses inherent in the portfolio to differ from historical loss experience. This evaluation is based on among other things, loan and delinquency trends, general economic conditions, credit concentrations, industry trends and lending and credit management policies and procedures, but is inherently subjective as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be different than the allowance for loan losses we have established which could have a material negative effect on our financial results.
On a quarterly basis, management reviews the current status of various loan assets in order to evaluate the adequacy of the allowance for loan losses. In this evaluation process, specific loans are analyzed to determine their potential risk of loss. Loans determined to be impaired are evaluated for potential loss exposure. Any shortfall results in a recommendation of a specific allowance or charge-off if the likelihood of loss is evaluated as probable. To determine the adequacy of collateral on a particular loan, an estimate of the fair value of the collateral is based on the most current appraised value available for real property or a discounted cash flow analysis on a business. The appraised value for real property is then reduced to reflect estimated liquidation expenses.
The allowance contains reserves identified as unallocated. These reserves reflect management’s attempt to provide for the imprecision and the uncertainty that is inherent in estimates of probable credit losses.
Our lending emphasis has been the origination of multi-family loans, commercial real estate loans, commercial and industrial loans, one- to four-family residential mortgage loans secured by one- to four-family residential real estate, construction loans and consumer loans, the majority of which are home equity loans, home equity lines of credit and cash surrender value lending on life insurance contracts. These activities resulted in a concentration of loans secured by real estate property and businesses located in New Jersey and New York. Based on the composition of our loan portfolio, we believe the primary risks to our loan portfolio are increases in interest rates, a decline in the general economy, and declines in real estate market values in New Jersey, New York and surrounding states. Any one or combination of these events may adversely affect our loan portfolio resulting in increased delinquencies, loan losses and future levels of loan loss provisions. As a substantial amount of our loan portfolio is collateralized by real estate, appraisals of the underlying value of property securing loans are critical in determining the amount of the allowance required for specific loans. Assumptions for appraisal valuations are instrumental in determining the value of properties. Negative changes to appraisal assumptions could significantly impact the valuation of a property securing a loan and the related allowance determined. The assumptions supporting such appraisals are carefully reviewed to determine that the resulting values reasonably reflect amounts realizable on the related loans.
The Company obtains an appraisal for all commercial loans that are collateral dependent upon origination. Updated appraisals are generally obtained for substandard loans $1.0 million or greater and special mention loans $2.0 million or greater in the process of collection by the Company’s special assets department. This is done in order to determine the specific reserve or charge off needed. As part of the allowance for loan losses process, the Company reviews each collateral dependent commercial loan classified as non-accrual and/or impaired and assesses whether there has been an adverse change in the collateral value supporting the loan. The Company utilizes information from its commercial lending officers and its credit department and special assets department’s knowledge of changes in real estate conditions in our lending area to identify if possible deterioration of collateral value has occurred. Based on the severity of the changes in market conditions, management determines if an updated appraisal is warranted or if downward adjustments to the previous appraisal are warranted. If it is determined that the deterioration of the collateral value is significant enough to warrant ordering a new appraisal, an estimate of the downward adjustments to the existing appraised value is used in assessing if additional specific reserves are necessary until the updated appraisal is received.
For homogeneous residential mortgage loans, the Company’s policy is to obtain an appraisal upon the origination of the loan and an updated appraisal in the event a loan becomes 90 days delinquent. Thereafter, the appraisal is updated every two years if the loan remains in non-performing status and the foreclosure process has not been completed. Management adjusts the appraised value of residential loans to reflect estimated selling costs and declines in the real estate market.
Management believes the potential risk for outdated appraisals for impaired and other non-performing loans has been mitigated due to the fact that the loans are individually assessed to determine that the loan’s carrying value is not in excess of the fair value of the collateral. Loans are generally charged off after an analysis is completed which indicates that collectability of the full principal balance is in doubt.
Although we believe we have established and maintained the allowance for loan losses at adequate levels, additions may be necessary based on the growth and composition of the loan portfolio, the level of loan delinquency and the economic conditions in our lending area. Management uses relevant information available; however, the level of the allowance for loan losses remains an estimate that is subject to significant judgment and short-term change. In addition, the Federal Deposit Insurance Corporation and the New Jersey Department of Banking and Insurance, as an integral part of their examination process, will periodically review our allowance for loan losses. Such agencies may require us to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination.

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2019 and December 31, 2018:

 
September 30, 2019
 
Multi-
Family Loans
 
Commercial
Real Estate Loans
 
Commercial
and Industrial
Loans
 
Construction
Loans
 
Residential
Mortgage Loans
 
Consumer
and Other
Loans
 
Unallocated
 
Total
 
(Dollars in thousands)
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance-December 31, 2018
$
82,876

 
48,449

 
71,084

 
7,486

 
20,776

 
3,102

 
2,044

 
235,817

Charge-offs
(2,854
)
 
(121
)
 
(5,183
)
 
—

 
(1,905
)
 
(917
)
 
—

 
(10,980
)
Recoveries
1,244

 
2,137

 
1,002

 
—

 
1,186

 
79

 
—

 
5,648

Provision
(5,490
)
 
(2,323
)
 
4,542

 
1,476

 
(834
)
 
215

 
(86
)
 
(2,500
)
Ending balance-September 30, 2019
$
75,776

 
48,142

 
71,445

 
8,962

 
19,223

 
2,479

 
1,958

 
227,985

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
—

 
—

 
—

 
—

 
1,897

 
76

 
—

 
1,973

Collectively evaluated for impairment
75,776

 
48,142

 
71,445

 
8,962

 
17,326

 
2,403

 
1,958

 
226,012

Loans acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance at September 30, 2019
$
75,776

 
48,142

 
71,445

 
8,962

 
19,223

 
2,479

 
1,958

 
227,985

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
17,429

 
8,140

 
10,882

 
—

 
26,939

 
906

 
—

 
64,296

Collectively evaluated for impairment
7,977,666

 
4,760,230

 
2,670,695

 
289,857

 
5,279,973

 
699,361

 
—

 
21,677,782

Loans acquired with deteriorated credit quality
—

 
3,558

 
—

 
—

 
500

 
74

 
—

 
4,132

Balance at September 30, 2019
$
7,995,095

 
4,771,928

 
2,681,577

 
289,857

 
5,307,412

 
700,341

 
—

 
21,746,210

 
December 31, 2018
 
Multi-
Family Loans
 
Commercial
Real Estate Loans
 
Commercial
and Industrial
Loans
 
Construction
Loans
 
Residential
Mortgage Loans
 
Consumer
and Other
Loans
 
Unallocated
 
Total
 
(Dollars in thousands)
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance-December 31, 2017
$
81,469

 
56,137

 
54,563

 
11,609

 
21,835

 
3,099

 
2,257

 
230,969

Charge-offs
(2,603
)
 
(7,200
)
 
(7,078
)
 
—

 
(5,246
)
 
(1,963
)
 
—

 
(24,090
)
Recoveries
17

 
5,213

 
9,478

 
—

 
2,193

 
37

 
—

 
16,938

Provision
3,993

 
(5,701
)
 
14,121

 
(4,123
)
 
1,994

 
1,929

 
(213
)
 
12,000

Ending balance-December 31, 2018
$
82,876

 
48,449

 
71,084

 
7,486

 
20,776


3,102

 
2,044

 
235,817

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
—

 
—

 
—

 
—

 
2,082

 
72

 
—

 
2,154

Collectively evaluated for impairment
82,876

 
48,449

 
71,084

 
7,486

 
18,694

 
3,030

 
2,044

 
233,663

Loans acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance at December 31, 2018
$
82,876

 
48,449

 
71,084

 
7,486

 
20,776


3,102

 
2,044

 
235,817

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
32,046

 
6,623

 
19,624

 
—

 
27,884

 
570

 
—

 
86,747

Collectively evaluated for impairment
8,133,141

 
4,776,472

 
2,370,132

 
227,015

 
5,322,620

 
707,176

 
—

 
21,536,556

Loans acquired with deteriorated credit quality
—

 
3,730

 
—

 
—

 
611

 
120

 
—

 
4,461

Balance at December 31, 2018
$
8,165,187

 
4,786,825

 
2,389,756

 
227,015

 
5,351,115


707,866

 
—

 
21,627,764


The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. For non-homogeneous loans, such as commercial and commercial real estate loans, the Company analyzes the loans individually by classifying the loans as to credit risk and assesses the probability of collection for each type of class. In assessing and classifying our commercial loan portfolio, the Company places significant emphasis on the borrower’s ability to service its debt. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:
Pass - “Pass” assets are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner.
Watch - A “Watch” asset has all the characteristics of a Pass asset but warrants more than the normal level of supervision. These loans may require more detailed reporting to management because some aspects of underwriting may not conform to policy or adverse events may have affected or could affect the cash flow or ability to continue operating profitably, provided, however, the events do not constitute an undue credit risk. Residential and consumer loans delinquent 30-59 days are considered watch if not already identified as impaired.
Special Mention - A “Special Mention” asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit
position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Residential and consumer loans delinquent 60-89 days are considered special mention if not already identified as impaired.
Substandard - A “Substandard” asset is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Residential and consumer loans delinquent 90 days or greater as well as those identified as impaired are considered substandard.
Doubtful - An asset classified “Doubtful” has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values.
Loss - An asset or portion thereof, classified “Loss” is considered uncollectible and of such little value that its continuance on the institution’s books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. This classification does not necessarily mean that an asset has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery will occur. As such, it is not practical or desirable to defer the write-off.
The following tables present the risk category of loans as of September 30, 2019 and December 31, 2018 by class of loans, excluding PCI loans:

 
September 30, 2019
 
Pass
 
Watch
 
Special
Mention
 
Substandard
 
Doubtful
 
Loss
 
Total
 
(In thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
6,553,284

 
962,053

 
146,866

 
332,892

 
—

 
—

 
7,995,095

Commercial real estate
4,102,142

 
403,818

 
54,799

 
207,611

 
—

 
—

 
4,768,370

Commercial and industrial
1,851,024

 
638,736

 
48,164

 
143,653

 
—

 
—

 
2,681,577

Construction
190,412

 
80,735

 
399

 
18,311

 
—

 
—

 
289,857

Total commercial loans
12,696,862

 
2,085,342

 
250,228

 
702,467

 
—

 
—

 
15,734,899

Residential mortgage
5,232,790

 
12,437

 
10,192

 
51,493

 
—

 
—

 
5,306,912

Consumer and other
691,421

 
5,280

 
1,524

 
2,042

 
—

 
—

 
700,267

Total
$
18,621,073

 
2,103,059

 
261,944

 
756,002

 
—

 
—

 
21,742,078


 
December 31, 2018
 
Pass
 
Watch
 
Special
Mention
 
Substandard
 
Doubtful
 
Loss
 
Total
 
(In thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
6,462,056

 
1,061,168

 
313,498

 
328,465

 
—

 
—

 
8,165,187

Commercial real estate
3,910,282

 
552,080

 
162,488

 
158,245

 
—

 
—

 
4,783,095

Commercial and industrial
1,647,130

 
571,620

 
53,861

 
117,145

 
—

 
—

 
2,389,756

Construction
163,503

 
35,774

 
9,200

 
18,538

 
—

 
—

 
227,015

Total commercial loans
12,182,971

 
2,220,642

 
539,047

 
622,393

 
—

 
—

 
15,565,053

Residential mortgage
5,268,234

 
12,082

 
7,712

 
62,476

 
—

 
—

 
5,350,504

Consumer and other
694,432

 
8,443

 
1,650

 
3,221

 
—

 
—

 
707,746

Total
$
18,145,637

 
2,241,167

 
548,409

 
688,090

 
—

 
—

 
21,623,303


    
The following tables present the payment status of the recorded investment in past due loans as of September 30, 2019 and December 31, 2018 by class of loans, excluding PCI loans:
 
 
September 30, 2019
 
30-59 Days
 
60-89 Days
 
Greater
than 90
Days
 
Total Past
Due
 
Current
 
Total
Loans
Receivable
 
(In thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
16,006

 
3,517

 
19,507

 
39,030

 
7,956,065

 
7,995,095

Commercial real estate
17,955

 
4,385

 
6,158

 
28,498

 
4,739,872

 
4,768,370

Commercial and industrial
5,927

 
4,694

 
5,350

 
15,971

 
2,665,606

 
2,681,577

Construction
—

 
—

 
—

 
—

 
289,857

 
289,857

Total commercial loans
39,888

 
12,596

 
31,015

 
83,499

 
15,651,400

 
15,734,899

Residential mortgage
14,029

 
10,644

 
28,746

 
53,419

 
5,253,493

 
5,306,912

Consumer and other
5,282

 
1,523

 
1,233

 
8,038

 
692,229

 
700,267

Total
$
59,199

 
24,763

 
60,994

 
144,956

 
21,597,122

 
21,742,078

 
 
December 31, 2018
 
30-59 Days
 
60-89 Days
 
Greater
than 90
Days
 
Total Past
Due
 
Current
 
Total
Loans
Receivable
 
(In thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
23,098

 
2,572

 
33,683

 
59,353

 
8,105,834

 
8,165,187

Commercial real estate
5,491

 
3,511

 
2,415

 
11,417

 
4,771,678

 
4,783,095

Commercial and industrial
2,988

 
867

 
4,560

 
8,415

 
2,381,341

 
2,389,756

Construction
9,200

 
—

 
227

 
9,427

 
217,588

 
227,015

Total commercial loans
40,777

 
6,950

 
40,885

 
88,612

 
15,476,441

 
15,565,053

Residential mortgage
13,811

 
7,712

 
39,255

 
60,778

 
5,289,726

 
5,350,504

Consumer and other
8,524

 
1,650

 
2,830

 
13,004

 
694,742

 
707,746

Total
$
63,112

 
16,312

 
82,970

 
162,394

 
21,460,909

 
21,623,303


The following table presents non-accrual loans, excluding PCI loans, at the dates indicated:
 
 
September 30, 2019
 
December 31, 2018
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
Non-accrual:
 
Multi-family
6

 
$
19,564

 
15

 
$
33,940

Commercial real estate
30

 
12,310

 
35

 
12,391

Commercial and industrial
16

 
12,024

 
14

 
19,394

Construction
—

 
—

 
1

 
227

Total commercial loans
52

 
43,898

 
65

 
65,952

Residential mortgage and consumer
261

 
48,171

 
320

 
58,961

Total non-accrual loans
313

 
$
92,069

 
385

 
$
124,913


Included in the non-accrual table above are TDR loans whose payment status is current but the Company has classified as non-accrual as the loans have not maintained their current payment status for six consecutive months under the restructured terms and therefore do not meet the criteria for accrual status. As of September 30, 2019 and December 31, 2018, these loans are comprised of the following:
 
September 30, 2019
 
December 31, 2018
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
TDR with payment status current classified as non-accrual:
 
 
 
 
 
 
 
Commercial real estate
1

 
$
65

 
2

 
$
2,817

Commercial and industrial
—

 
—

 
2

 
9,762

Total commercial loans
1

 
65

 
4

 
12,579

Residential mortgage and consumer
31

 
5,059

 
26

 
4,006

Total TDR with payment status current classified as non-accrual
32

 
$
5,124

 
30

 
$
16,585

The following table presents TDR loans which were also 30-89 days delinquent and classified as non-accrual at the dates indicated. Not included in the table is a commercial and industrial TDR loan in the amount of $954,000 which was 30-89 days delinquent at September 30, 2019, classified as accruing while the Company underwrites an extension of the borrower’s credit facilities.
 
September 30, 2019
 
December 31, 2018
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
TDR 30-89 days delinquent classified as non-accrual:
 
 
 
 
 
 
 
Residential mortgage and consumer
12

 
$
2,045

 
11

 
$
1,810

Total TDR 30-89 days delinquent classified as non-accrual
12

 
$
2,045

 
11

 
$
1,810


The Company has no loans past due 90 days or more delinquent that are still accruing interest.
PCI loans are excluded from non-accrual loans, as they are recorded at fair value based on the present value of expected future cash flows. As of September 30, 2019, PCI loans with a carrying value of $4.1 million included $3.9 million of which were current, $31,000 of which were 30-89 days delinquent and $133,000 of which were 90 days or more delinquent. As of December 31, 2018, PCI loans with a carrying value of $4.5 million included $4.1 million of which were current, $229,000 of which were 30-89 days delinquent and $248,000 of which were 90 days or more delinquent.
At September 30, 2019 and December 31, 2018, loans meeting the Company’s definition of an impaired loan were primarily collateral dependent loans which totaled $64.3 million and $86.7 million, respectively, with allocations of the allowance for loan losses of $2.0 million and $2.2 million as of September 30, 2019 and December 31, 2018, respectively. During the nine months ended September 30, 2019 and 2018, interest income received and recognized on these loans totaled $831,000 and $513,000, respectively.

The following tables present loans individually evaluated for impairment by portfolio segment as of September 30, 2019 and December 31, 2018:

 
September 30, 2019
 
Recorded
Investment
 
Unpaid Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
(In thousands)
With no related allowance:
 
 
 
 
 
 
 
 
 
Multi-family
$
17,429

 
18,801

 
—

 
18,860

 
21

Commercial real estate
8,140

 
11,170

 
—

 
8,323

 
240

Commercial and industrial
10,882

 
18,225

 
—

 
12,097

 
259

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
36,451

 
48,196

 
—

 
39,280

 
520

Residential mortgage and consumer
12,869

 
16,992

 
—

 
12,904

 
174

With an allowance recorded:
 
 
 
 
 
 
 
 
 
Multi-family
—

 
—

 
—

 
—

 
—

Commercial real estate
—

 
—

 
—

 
—

 
—

Commercial and industrial
—

 
—

 
—

 
—

 
—

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
—

 
—

 
—

 
—

 
—

Residential mortgage and consumer
14,976

 
15,684

 
1,973

 
14,989

 
137

Total:
 
 
 
 
 
 
 
 
 
Multi-family
17,429

 
18,801

 
—

 
18,860

 
21

Commercial real estate
8,140

 
11,170

 
—

 
8,323

 
240

Commercial and industrial
10,882

 
18,225

 
—

 
12,097

 
259

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
36,451

 
48,196

 
—

 
39,280

 
520

Residential mortgage and consumer
27,845

 
32,676

 
1,973

 
27,893

 
311

Total impaired loans
$
64,296

 
80,872

 
1,973

 
67,173

 
831

 
December 31, 2018
 
Recorded
Investment
 
Unpaid Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
(In thousands)
With no related allowance:
 
 
 
 
 
 
 
 
 
Multi-family
$
32,046

 
34,199

 
—

 
33,656

 
146

Commercial real estate
6,623

 
11,896

 
—

 
6,611

 
79

Commercial and industrial
19,624

 
26,323

 
—

 
20,218

 
232

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
58,293

 
72,418

 
—

 
60,485

 
457

Residential mortgage and consumer
12,626

 
17,130

 
—

 
11,907

 
167

With an allowance recorded:
 
 
 
 
 
 
 
 
 
Multi-family
—

 
—

 
—

 
—

 
—

Commercial real estate
—

 
—

 
—

 
—

 
—

Commercial and industrial
—

 
—

 
—

 
—

 
—

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
—

 
—

 
—

 
—

 
—

Residential mortgage and consumer
15,828

 
16,498

 
2,154

 
15,627

 
280

Total:
 
 
 
 
 
 
 
 
 
Multi-family
32,046

 
34,199

 
—

 
33,656

 
146

Commercial real estate
6,623

 
11,896

 
—

 
6,611

 
79

Commercial and industrial
19,624

 
26,323

 
—

 
20,218

 
232

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
58,293

 
72,418

 
—

 
60,485

 
457

Residential mortgage and consumer
28,454

 
33,628

 
2,154

 
27,534

 
447

Total impaired loans
$
86,747

 
106,046

 
2,154

 
88,019

 
904


The average recorded investment is the annual average calculated based upon the ending quarterly balances. The interest income recognized is the year to date interest income recognized on a cash basis.
Troubled Debt Restructurings
On a case-by-case basis, the Company may agree to modify the contractual terms of a borrower’s loan to remain competitive and assist customers who may be experiencing financial difficulty, as well as preserve the Company’s position in the loan. If the borrower is experiencing financial difficulties and a concession has been made at the time of such modification, the loan is classified as a TDR.
Substantially all of our TDR loan modifications involve lowering the monthly payments on such loans through either a reduction in interest rate below a market rate, an extension of the term of the loan, or a combination of these two methods. These modifications rarely result in the forgiveness of principal or accrued interest. In addition, we frequently obtain additional collateral or guarantor support when modifying commercial loans. Restructured loans remain on non-accrual status until there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible.

The following tables present the total TDR loans at September 30, 2019 and December 31, 2018. There were five residential loans that were previously designated as PCI classified as TDRs for the periods ended September 30, 2019 and December 31, 2018.
 
 
September 30, 2019
 
Accrual
 
Non-accrual
 
Total
 
# of loans
 
Amount
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
—

 
$
—

 
3

 
$
2,548

 
3

 
$
2,548

Commercial and industrial
3

 
1,669

 
2

 
5,194

 
5

 
6,863

Total commercial loans
3

 
1,669

 
5

 
7,742

 
8

 
9,411

Residential mortgage and consumer
55

 
10,769

 
81

 
17,078

 
136

 
27,847

Total
58

 
$
12,438

 
86

 
$
24,820

 
144

 
$
37,258



 
December 31, 2018
 
Accrual
 
Non-accrual
 
Total
 
# of loans
 
Amount
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
Multi-family
—

 
$
—

 
1

 
$
892

 
1

 
$
892

Commercial real estate
—

 
—

 
3

 
2,859

 
3

 
2,859

Commercial and industrial
2

 
2,070

 
4

 
13,479

 
6

 
15,549

Total commercial loans
2

 
2,070

 
8

 
17,230

 
10

 
19,300

Residential mortgage and consumer
52

 
11,550

 
79

 
16,908

 
131

 
28,458

Total
54

 
$
13,620

 
87

 
$
34,138

 
141

 
$
47,758



The following tables present information about TDRs that occurred during the three and nine months ended September 30, 2019 and 2018:

 
Three Months Ended September 30,
 
2019
 
2018
 
Number of
Loans
 
Pre-modification
Recorded
Investment
 
Post-
modification
Recorded
Investment
 
Number of
Loans
 
Pre-modification
Recorded
Investment
 
Post-
modification
Recorded
Investment
 
(Dollars in thousands)
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
$
96

 
$
96

 
—

 
$
—

 
$
—

Commercial and industrial
1

 
$
270

 
$
270

 
1

 
$
3,711

 
$
3,711

Residential mortgage and consumer
4

 
453

 
453

 
3

 
1,215

 
1,215


    
 
Nine Months Ended September 30,
 
2019
 
2018
 
Number of
Loans
 
Pre-modification
Recorded
Investment
 
Post-
modification
Recorded
Investment
 
Number of
Loans
 
Pre-modification
Recorded
Investment
 
Post-
modification
Recorded
Investment
 
(Dollars in thousands)
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
$
96

 
$
96

 
2

 
$
788

 
$
616

Commercial and industrial
1

 
270

 
270

 
4

 
13,682

 
13,682

Residential mortgage and consumer
14

 
2,850

 
2,850

 
15

 
2,715

 
2,715


Post-modification recorded investment represents the net book balance immediately following modification.
All TDRs are impaired loans, which are individually evaluated for impairment, as discussed above. Collateral dependent impaired loans classified as TDRs were written down to the estimated fair value of the collateral. There were $156,000 and $729,000 in charge-offs for TDRs of unsecured commercial and industrial loans during the three and nine months ended September 30, 2019, respectively. There were no charge-offs for TDRs during the three months ended September 30, 2018 and $214,000 in charge-offs for collateral dependent TDRs during the nine months ended September 30, 2018. Of the amount charged off in the first nine months of 2018, one borrower subsequently repaid the full amount of outstanding loan principal which resulted in a recovery of $172,000. The allowance for loan losses associated with the TDRs presented in the above tables totaled $2.0 million and $2.2 million as of September 30, 2019 and December 31, 2018, respectively.
Loan modifications generally involve the reduction in loan interest rate and/or extension of loan maturity dates and also may include step up interest rates in their modified terms which will impact their weighted average yield in the future. All residential loans deemed to be TDRs were modified to reflect a reduction in interest rates to current market rates. The commercial loan modifications which qualified as TDRs in the nine months ended September 30, 2019 and 2018 had their maturity extended.
The following tables present information about pre and post modification interest yield for TDRs which occurred during the three and nine months ended September 30, 2019 and 2018:
 
Three Months Ended September 30,
 
2019
 
2018
 
Number of
Loans
 
Pre-modification
Interest Yield
 
Post-
modification
Interest Yield
 
Number of
Loans
 
Pre-modification
Interest Yield
 
Post-
modification
Interest Yield
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
5.75
%
 
5.75
%
 
—

 
—
%
 
—
%
Commercial and industrial
1

 
6.25
%
 
6.25
%
 
1

 
5.75
%
 
5.75
%
Residential mortgage and consumer
4

 
4.00
%
 
3.82
%
 
3

 
4.37
%
 
4.45
%

 
Nine Months Ended September 30,
 
2019
 
2018
 
Number of
Loans
 
Pre-modification
Interest Yield
 
Post-
modification
Interest Yield
 
Number of
Loans
 
Pre-modification
Interest Yield
 
Post-
modification
Interest Yield
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
5.75
%
 
5.75
%
 
2

 
4.68
%
 
4.68
%
Commercial and industrial
1

 
6.25
%
 
6.25
%
 
4

 
5.94
%
 
5.94
%
Residential mortgage and consumer
14

 
5.07
%
 
4.96
%
 
15

 
4.60
%
 
3.78
%

Payment defaults for loans modified as a TDR in the previous 12 months to September 30, 2019 consisted of 1 residential loan and 1 commercial real estate loan with a recorded investment of $132,000 and $2.5 million, respectively, at September 30, 2019. Payment defaults for loans modified as a TDR in the previous 12 months to September 30, 2018 consisted of 9 residential loans, 2 commercial real estate loan and 1 multi-family loan with a recorded investment of $651,000, $568,000 and $898,000, respectively, at September 30, 2018.
v3.19.3
Derivatives and Hedging Activities
 9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Activities Derivatives and Hedging Activities
The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s floating rate borrowings and pools of fixed-rate assets.

Cash Flow Hedges of Interest Rate Risk
The Company’s objectives in using interest rate derivatives are primarily to reduce cost and add stability to interest expense in an effort to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of amounts subject to variability caused by changes in interest rates from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.  Changes in the fair value of derivatives designated and that qualify as cash flow hedges are initially recorded in other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Such derivatives were used to hedge the variability in cash flows associated with borrowings.
Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate borrowings. During the next twelve months, the Company estimates that an additional $9.1 million will be reclassified as an increase to interest expense.

Fair Value Hedges of Interest Rate Risk
The Company is exposed to changes in the fair value of certain of its fixed- and adjustable-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. Such derivatives were used to hedge the changes in fair value of certain of its pools of prepayable fixed- and adjustable-rate assets.
For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income.
The Company terminated three interest rate swaps with an aggregate notional amount of $1.00 billion during the quarter ended September 30, 2019. The terminated swaps were due to mature in February 2020.
Derivatives Not Designated as Hedges
The Company has credit derivatives resulting from participations in interest rate swaps provided to external lenders as part of loan participation arrangements which are, therefore, not used to manage interest rate risk in the Company’s assets or liabilities. Additionally, the Company provides interest rate risk management services to commercial customers, primarily interest rate swaps. The Company’s market risk from unfavorable movements in interest rates related to these derivative contracts is economically hedged by concurrently entering into offsetting derivative contracts that have identical notional values, terms and indices.
Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain lenders which participate in loans and commercial customers.

Fair Values of Derivative Instruments on the Balance Sheet
 
 
Asset Derivatives
 
Liability Derivatives
 
September 30, 2019
 
December 31, 2018
 
September 30, 2019
 
December 31, 2018
 
Notional Amount
Balance
Sheet
Location
Fair Value
 
Notional Amount
Balance
Sheet
Location
Fair Value
 
Notional Amount
Balance
Sheet
Location
Fair Value
 
Notional Amount
Balance
Sheet
Location
Fair Value
 
(in millions)
 
(In thousands)
 
(in millions)
 
(In thousands)
 
(in millions)
 
(In thousands)
 
(in millions)
 
(In thousands)
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
$
2,475

Other assets
$
91

 
$
—

Other assets
$
—

 
$
—

Other liabilities
$
—

 
$
2,605

Other liabilities
$
432

Total derivatives designated as hedging instruments

 
$
91

 

 
$
—

 
 
 
$
—

 
 
 
$
432

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
$
306

Other assets
$
6,305

 
$
—

Other assets
$
—

 
$
—

Other liabilities
$
—

 
$
—

Other liabilities
$
—

Other Contracts
—

Other assets
—

 
—

Other assets
—

 
22

Other liabilities
178

 
18

Other liabilities
66

Total derivatives not designated as hedging instruments

 
$
6,305

 

 
$
—

 
 
 
$
178

 
 
 
$
66



The Chicago Mercantile Exchange (“CME”) legally characterizes the variation margin posted between counterparties as settlements of the outstanding derivative contracts instead of cash collateral.

Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Loss)
The following table presents the effect of the Company’s derivative financial instruments on Accumulated Other Comprehensive Income (Loss) for the three months ended September 30, 2019 and 2018.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Cash Flow Hedges - Interest rate swaps
 
 
 
 
 
 
 
Amount of (loss) gain recognized in other comprehensive income (loss)
$
(12,794
)
 
8,147

 
(71,139
)
 
34,065

Amount of gain reclassified from accumulated other comprehensive income (loss) to interest expense
509

 
822

 
4,327

 
1,059


Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
The following table presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of September 30, 2019 and 2018.
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
The effects of fair value and cash flow hedging:
Income statement location
(In thousands)
Gain or (loss) on fair value hedging relationships in Subtopic 815-20
 
 
 
 
 
 
 
 
Interest contracts
 
 
 
 
 
 
 
 
Hedged items
Interest income on loans
$
1,179

 
(1,581
)
 
7,398

 
(1,581
)
Derivatives designated as hedging instruments [1]
Interest income on loans
(1,268
)
 
1,518

 
(7,550
)
 
1,518

Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
 
 
 
 
 
 
 
 
Interest contracts
 
 
 
 
 
 
 
 
Amount of gain reclassified from accumulated other comprehensive income (loss)
Interest expense on borrowings
509

 
822

 
4,327

 
1,059

Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) as a result that a forecasted transaction is no longer probable of occurring
Interest expense on borrowings
—

 
—

 
—

 
—

Total amounts of income and expense line items presented in the income statement in which the effects of fair value are recorded
 
$
420

 
759

 
4,175

 
996



[1] The amount includes gains on both active fair value hedging relationships and relationships which have been terminated

As of September 30, 2019 and December 31, 2018, the following amounts were recorded on the Consolidated Balance Sheets related to cumulative basis adjustment for fair value hedges:
Balance sheet location
Carrying Amount of the Hedged Assets/(Liabilities)
 
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
 
September 30, 2019
 
December 31, 2018
 
September 30, 2019
 
December 31, 2018
 
(In thousands)
Loans receivable, net (1)(2)
$
479,231

 
1,005,294

 
$
7,741

 
294

(1) At September 30, 2019, the amortized cost basis of the closed portfolios used in these hedging relationships was $1.50 billion; the cumulative basis adjustments associated with these hedging relationships was $7.7 million; and the amounts of the designated hedged items were $479.2 million.
(2) The balance of Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) as of September 30, 2019 includes $3.5 million of hedging adjustment on discontinued hedging relationships.

Location and Amount of Gain or (Loss) Recognized in Income on Derivatives Not Designated as Hedging Instruments
The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Income for the three and nine months ended September 30, 2019. There were no derivative financial instruments that are not designated as hedging instruments for the three and nine months ended September 30, 2018.
 
Consolidated Statements of Income location
Amount of Gain or (Loss) Recognized in Income on Derivative
 
Amount of Gain or (Loss) Recognized in Income on Derivative
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(In thousands)
Other Contracts
Other income / (expense)
$
(47
)
 
—

 
$
(57
)
 
—

Total
 
$
(47
)
 
—

 
$
(57
)
 
—


Offsetting Derivatives
The following table presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives in the Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018. The net amounts of derivative assets and liabilities can be reconciled to the tabular disclosure of the fair value hierarchy, see Note 15, Fair Value Measurements. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Company’s Consolidated Balance Sheets.
 
 
 
 
 
 
 
Gross Amounts Not Offset
 
 
 
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Financial Instruments
 
Cash Collateral Posted
 
Net Amount
 
(In thousands)
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
$
106

 
—

 
106

 
—

 
—

 
106

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
178

 
—

 
178

 
—

 
—

 
178

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
$
498

 
—

 
498

 
—

 
—

 
498
v3.19.3
Revenue Recognition
 9 Months Ended
Sep. 30, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company’s contracts with customers in the scope of Topic 606, Revenue from Contracts with Customers, are contracts for deposit accounts and contracts for non-deposit investment accounts through a third party service provider.  Both types of contracts result in non-interest income being recognized.  The revenue resulting from deposit accounts, which includes fees such as insufficient funds fees, wire transfer fees and out-of-network ATM transaction fees, is included as a component of fees and service charges on the consolidated statements of income.  The revenue resulting from non-deposit investment accounts is included as a component of other income on the Consolidated Statements of Income. 
Revenue from contracts with customers included in fees and service charges and other income was as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(Dollars in thousands)
Revenue from contracts with customers included in:
 
 
 
 
 
 
 
Fees and service charges
$
4,337

 
3,408

 
11,350

 
9,860

Other income
2,230

 
1,925

 
6,961

 
6,131

Total revenue from contracts with customers
$
6,567

 
5,333

 
18,311

 
15,991


For our contracts with customers, we satisfy our performance obligations each day as services are rendered.  For our deposit account revenue, we receive payment on a daily basis as services are rendered and for our non-deposit investment account revenue, we receive payment on a monthly basis from our third party service provider as services are rendered.
v3.19.3
Earnings Per Share (Tables)
 9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Summary of our earnings per share calculations and reconciliation of basic to diluted earnings per share
The following is a summary of our earnings per share calculations and reconciliation of basic to diluted earnings per share.

 
For the Three Months Ended September 30,
 
2019
 
2018
 
(Dollars in thousands, except per share data)
Earnings for basic and diluted earnings per common share
 
 
 
Earnings applicable to common stockholders
$
51,972

 
$
54,224

 
 
 
 
Shares
 
 
 
Weighted-average common shares outstanding - basic
261,678,994

 
280,755,898

Effect of dilutive common stock equivalents (1)
133,976

 
417,023

Weighted-average common shares outstanding - diluted
261,812,970

 
281,172,921

 
 
 
 
Earnings per common share
 
 
 
Basic
$
0.20

 
$
0.19

Diluted
$
0.20

 
$
0.19


(1) For the three months ended September 30, 2019 and 2018, there were 8,142,370 and 10,059,247 equity awards, respectively, that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented.
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
(Dollars in thousands, except per share data)
Earnings for basic and diluted earnings per common share
 
 
 
Earnings applicable to common stockholders
$
146,754

 
$
169,246

 
 
 
 
Shares
 
 
 
Weighted-average common shares outstanding - basic
264,104,402

 
284,289,363

Effect of dilutive common stock equivalents (1)
317,863

 
1,086,640

Weighted-average common shares outstanding - diluted
264,422,265

 
285,376,003

 
 
 
 
Earnings per common share
 
 
 
Basic
$
0.56

 
$
0.60

Diluted
$
0.55

 
$
0.59


(1) For the nine months ended September 30, 2019 and 2018, there were 6,723,858 and 9,796,551 equity awards, respectively, that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented.
v3.19.3
Securities (Investment Securities, Continuous Unrealized Loss Position And Fair Value) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Open Option Contracts Written [Line Items]    
Less than 12 months $ 146,937 $ 222,526
12 months or more 47,317 778,253
Total 194,254 1,000,779
Available-for-sale, Unrealized Losses    
Less than 12 months 434 3,092
12 months or more 232 20,648
Total 666 23,740
Held-to-maturity Securities, Estimated Fair Value    
Less than 12 months 14,996 300,944
12 months or more 82,934 1,088,051
Total 97,930 1,388,995
Held-to-maturity Securities, Unrealized Losses    
Less than 12 months 239 3,494
12 months or more 520 31,260
Total 759 34,754
Estimated fair value, Less than 12 months, Total 161,933 523,470
Unrealized losses, Less than 12 months, Total 673 6,586
Estimated fair value, 12 months or more, Total 130,251 1,866,304
Unrealized losses, 12 months or more, Total 752 51,908
Estimated fair value, Total 292,184 2,389,774
Unrealized losses, Total 1,425 58,494
Mortgage-backed securities:    
Open Option Contracts Written [Line Items]    
Less than 12 months 146,937 222,526
12 months or more 47,317 778,253
Total 194,254 1,000,779
Available-for-sale, Unrealized Losses    
Less than 12 months 434 3,092
12 months or more 232 20,648
Total 666 23,740
Held-to-maturity Securities, Estimated Fair Value    
Less than 12 months 12,230 300,944
12 months or more 82,934 1,048,029
Total 95,164 1,348,973
Held-to-maturity Securities, Unrealized Losses    
Less than 12 months 40 3,494
12 months or more 520 30,024
Total 560 33,518
Federal Home Loan Mortgage Corporation    
Open Option Contracts Written [Line Items]    
Less than 12 months 117,655 97,137
12 months or more 10,060 288,916
Total 127,715 386,053
Available-for-sale, Unrealized Losses    
Less than 12 months 332 994
12 months or more 160 7,196
Total 492 8,190
Held-to-maturity Securities, Estimated Fair Value    
Less than 12 months 9,098 51,045
12 months or more 31,254 339,534
Total 40,352 390,579
Held-to-maturity Securities, Unrealized Losses    
Less than 12 months 28 553
12 months or more 173 8,860
Total 201 9,413
Federal National Mortgage Association    
Open Option Contracts Written [Line Items]    
Less than 12 months 29,282 125,389
12 months or more 37,257 489,337
Total 66,539 614,726
Available-for-sale, Unrealized Losses    
Less than 12 months 102 2,098
12 months or more 72 13,452
Total 174 15,550
Held-to-maturity Securities, Estimated Fair Value    
Less than 12 months 3,132 214,400
12 months or more 51,680 663,671
Total 54,812 878,071
Held-to-maturity Securities, Unrealized Losses    
Less than 12 months 12 2,449
12 months or more 347 20,238
Total 359 22,687
Government National Mortgage Association    
Held-to-maturity Securities, Estimated Fair Value    
Less than 12 months   35,499
12 months or more   44,824
Total   80,323
Held-to-maturity Securities, Unrealized Losses    
Less than 12 months   492
12 months or more   926
Total 0 1,418
Total debt securities held-to-maturity    
Held-to-maturity Securities, Estimated Fair Value    
Less than 12 months 2,766 0
12 months or more 0 40,022
Total 2,766 40,022
Held-to-maturity Securities, Unrealized Losses    
Less than 12 months 199 0
12 months or more 0 1,236
Total 199 1,236
Corporate and other debt securities    
Held-to-maturity Securities, Estimated Fair Value    
Less than 12 months 2,766  
12 months or more 0  
Total 2,766  
Held-to-maturity Securities, Unrealized Losses    
Less than 12 months 199  
12 months or more 0  
Total 199 0
Government-sponsored enterprises    
Held-to-maturity Securities, Estimated Fair Value    
Less than 12 months   0
12 months or more   40,022
Total   40,022
Held-to-maturity Securities, Unrealized Losses    
Less than 12 months   0
12 months or more   1,236
Total $ 0 $ 1,236
v3.19.3
Securities (Equity Securities) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]        
Net gains recognized on equity securities $ 30 $ 97 $ 165 $ 104
Less: Net gains recognized on equity securities sold 0 0 0 0
Unrealized gains recognized on equity securities $ 30 $ 97 $ 165 $ 104
v3.19.3
Stock Transactions (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Oct. 25, 2018
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Stock Transactions [Line Items]          
Percentage of shares to be repurchased (percentage) 10.00%        
Number of shares authorized to be repurchased (shares) 28,886,780        
Purchase of treasury stock (shares)   2,004,717,000 6,891,729,000 12,042,876 14,477,965
Stock repurchased during period, value   $ 22,486 $ 87,983 $ 140,241 $ 191,003
Stock repurchase cost, per share (usd per share)       $ 11.65  
Restricted Stock          
Stock Transactions [Line Items]          
Purchase of treasury stock (shares)       383,836  
v3.19.3
Goodwill and Other Intangible Assets (Summary of Intangible Assets) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]    
Gross Intangible Asset $ 40,117 $ 46,016
Accumulated Amortization (24,874) (29,324)
Valuation Allowance (223) (175)
Net Intangible Assets 15,020 16,517
Goodwill 82,546 82,546
Goodwill and intangible assets 97,566 99,063
Mortgage servicing rights    
Finite-Lived Intangible Assets [Line Items]    
Gross Intangible Asset 18,406 19,808
Accumulated Amortization (6,729) (7,921)
Valuation Allowance (223) (175)
Net Intangible Assets 11,454 11,712
Core deposit premiums    
Finite-Lived Intangible Assets [Line Items]    
Gross Intangible Asset 20,561 25,058
Accumulated Amortization (17,685) (21,008)
Valuation Allowance 0 0
Net Intangible Assets 2,876 4,050
Other    
Finite-Lived Intangible Assets [Line Items]    
Gross Intangible Asset 1,150 1,150
Accumulated Amortization (460) (395)
Valuation Allowance 0 0
Net Intangible Assets $ 690 $ 755
v3.19.3
Leases (Supplemental Income and Expense Information) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Included in office occupancy and equipment expense:    
Operating lease cost $ 6,320 $ 18,963
Short-term lease cost 74 229
Variable lease cost 0 (1)
Included in other income:    
Sublease income $ 67 $ 201
v3.19.3
Securities (Changes in Credit Loss Component of the Impairment Loss of Debt Securities for Other-than-Temporary Impairment Recognized in Earnings) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]        
Balance of credit related OTTI, beginning of period $ 78,831 $ 83,923 $ 80,595 $ 85,768
Initial credit impairments 0 0 0 0
Subsequent credit impairments 0 0 0 0
Accretion of credit loss impairment due to an increase in expected cash flows (883) (923) (2,647) (2,768)
Reductions for securities sold or paid off during the period 0 0 0 0
Balance of credit related OTTI, end of period $ 77,948 $ 83,000 $ 77,948 $ 83,000
v3.19.3
Loans Receivable, Net (Summary of Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment And Based On Impairment Method) (Details)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2019
USD ($)
Dec. 31, 2018
USD ($)
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance $ 235,817 $ 230,969
Allowance for loan losses, Charge-offs (10,980) (24,090)
Allowance for loan losses, Recoveries 5,648 16,938
Allowance for loan losses, Provision (2,500) 12,000
Allowance for loan losses, Ending balance 227,985 235,817
Allowance for loan losses, individually evaluated for impairment 1,973 2,154
Allowance for loan losses, collectively evaluated for impairment 226,012 233,663
Loans, Individually evaluated for impairment 64,296 86,747
Loans, Collectively evaluated for impairment 21,677,782 21,536,556
Loan, Loans acquired with deteriorated credit quality 21,742,078 21,623,303
Ending Balance 21,746,210 21,627,764
Unallocated    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 2,044 2,257
Allowance for loan losses, Charge-offs 0 0
Allowance for loan losses, Recoveries 0 0
Allowance for loan losses, Provision (86) (213)
Allowance for loan losses, Ending balance 1,958 2,044
Allowance for loan losses, individually evaluated for impairment 0 0
Allowance for loan losses, collectively evaluated for impairment 1,958 2,044
Loans, Individually evaluated for impairment 0 0
Loans, Collectively evaluated for impairment 0 0
Ending Balance 0 0
Receivables Acquired with Deteriorated Credit Quality    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 0  
Allowance for loan losses, Ending balance 0 0
Loan, Loans acquired with deteriorated credit quality 4,132 4,461
Receivables Acquired with Deteriorated Credit Quality | Unallocated    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 0  
Allowance for loan losses, Ending balance 0 0
Loan, Loans acquired with deteriorated credit quality 0 0
Commercial Portfolio Segment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Loan, Loans acquired with deteriorated credit quality 15,734,899 15,565,053
Commercial Portfolio Segment | Construction Loans    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 7,486 11,609
Allowance for loan losses, Charge-offs 0 0
Allowance for loan losses, Recoveries 0 0
Allowance for loan losses, Provision 1,476 (4,123)
Allowance for loan losses, Ending balance 8,962 7,486
Allowance for loan losses, individually evaluated for impairment 0 0
Allowance for loan losses, collectively evaluated for impairment 8,962 7,486
Loans, Individually evaluated for impairment 0 0
Loans, Collectively evaluated for impairment 289,857 227,015
Loan, Loans acquired with deteriorated credit quality 289,857 227,015
Ending Balance 289,857 227,015
Commercial Portfolio Segment | Receivables Acquired with Deteriorated Credit Quality | Construction Loans    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 0  
Allowance for loan losses, Ending balance 0 0
Loan, Loans acquired with deteriorated credit quality 0 0
Commercial Portfolio Segment | Commercial and Industrial Sector    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 71,084 54,563
Allowance for loan losses, Charge-offs (5,183) (7,078)
Allowance for loan losses, Recoveries 1,002 9,478
Allowance for loan losses, Provision 4,542 14,121
Allowance for loan losses, Ending balance 71,445 71,084
Allowance for loan losses, individually evaluated for impairment 0 0
Allowance for loan losses, collectively evaluated for impairment 71,445 71,084
Loans, Individually evaluated for impairment 10,882 19,624
Loans, Collectively evaluated for impairment 2,670,695 2,370,132
Loan, Loans acquired with deteriorated credit quality 2,681,577 2,389,756
Ending Balance 2,681,577 2,389,756
Commercial Portfolio Segment | Commercial and Industrial Sector | Receivables Acquired with Deteriorated Credit Quality    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 0  
Allowance for loan losses, Ending balance 0 0
Loan, Loans acquired with deteriorated credit quality 0 0
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Sector    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 82,876 81,469
Allowance for loan losses, Charge-offs (2,854) (2,603)
Allowance for loan losses, Recoveries 1,244 17
Allowance for loan losses, Provision (5,490) 3,993
Allowance for loan losses, Ending balance 75,776 82,876
Allowance for loan losses, individually evaluated for impairment 0 0
Allowance for loan losses, collectively evaluated for impairment 75,776 82,876
Loans, Individually evaluated for impairment 17,429 32,046
Loans, Collectively evaluated for impairment 7,977,666 8,133,141
Loan, Loans acquired with deteriorated credit quality 7,995,095 8,165,187
Ending Balance 7,995,095 8,165,187
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Sector | Receivables Acquired with Deteriorated Credit Quality    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 0  
Allowance for loan losses, Ending balance 0 0
Loan, Loans acquired with deteriorated credit quality 0 0
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Sector    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 48,449 56,137
Allowance for loan losses, Charge-offs (121) (7,200)
Allowance for loan losses, Recoveries 2,137 5,213
Allowance for loan losses, Provision (2,323) (5,701)
Allowance for loan losses, Ending balance 48,142 48,449
Allowance for loan losses, individually evaluated for impairment 0 0
Allowance for loan losses, collectively evaluated for impairment 48,142 48,449
Loans, Individually evaluated for impairment 8,140 6,623
Loans, Collectively evaluated for impairment 4,760,230 4,776,472
Loan, Loans acquired with deteriorated credit quality 4,768,370 4,783,095
Ending Balance 4,771,928 4,786,825
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Sector | Receivables Acquired with Deteriorated Credit Quality    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 0  
Allowance for loan losses, Ending balance 0 0
Loan, Loans acquired with deteriorated credit quality 3,558 3,730
Consumer Portfolio Segment | Residential Mortgage Loans    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 20,776 21,835
Allowance for loan losses, Charge-offs (1,905) (5,246)
Allowance for loan losses, Recoveries 1,186 2,193
Allowance for loan losses, Provision (834) 1,994
Allowance for loan losses, Ending balance 19,223 20,776
Allowance for loan losses, individually evaluated for impairment 1,897 2,082
Allowance for loan losses, collectively evaluated for impairment 17,326 18,694
Loans, Individually evaluated for impairment 26,939 27,884
Loans, Collectively evaluated for impairment 5,279,973 5,322,620
Loan, Loans acquired with deteriorated credit quality 5,306,912 5,350,504
Ending Balance 5,307,412 5,351,115
Consumer Portfolio Segment | Consumer and Other Loans    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 3,102 3,099
Allowance for loan losses, Charge-offs (917) (1,963)
Allowance for loan losses, Recoveries 79 37
Allowance for loan losses, Provision 215 1,929
Allowance for loan losses, Ending balance 2,479 3,102
Allowance for loan losses, individually evaluated for impairment 76 72
Allowance for loan losses, collectively evaluated for impairment 2,403 3,030
Loans, Individually evaluated for impairment 906 570
Loans, Collectively evaluated for impairment 699,361 707,176
Loan, Loans acquired with deteriorated credit quality 700,267 707,746
Ending Balance 700,341 707,866
Consumer Portfolio Segment | Receivables Acquired with Deteriorated Credit Quality | Residential Mortgage Loans    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 0  
Allowance for loan losses, Ending balance 0 0
Loan, Loans acquired with deteriorated credit quality 500 611
Consumer Portfolio Segment | Receivables Acquired with Deteriorated Credit Quality | Consumer and Other Loans    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for loan losses, Beginning balance 0  
Allowance for loan losses, Ending balance 0 0
Loan, Loans acquired with deteriorated credit quality $ 74 $ 120
v3.19.3
Loans Receivable, Net (Loans Individually Evaluated for Impairment by Class of Loans) (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Recorded Investment    
Total: $ 64,296 $ 86,747
Unpaid Principal Balance    
Total: 80,872 106,046
Related Allowance 1,973 2,154
Average Recorded Investment    
Total: 67,173 88,019
Interest Income Recognized    
Total: 831 904
Commercial Portfolio Segment    
Recorded Investment    
With no related allowance: 36,451 58,293
With an allowance recorded: 0 0
Total: 36,451 58,293
Unpaid Principal Balance    
With no related allowance: 48,196 72,418
With an allowance recorded: 0 0
Total: 48,196 72,418
Related Allowance 0 0
Average Recorded Investment    
With no related allowance: 39,280 60,485
With an allowance recorded: 0 0
Total: 39,280 60,485
Interest Income Recognized    
With no related allowance: 520 457
With an allowance recorded: 0 0
Total: 520 457
Commercial Portfolio Segment | Construction Loans    
Recorded Investment    
With no related allowance: 0 0
With an allowance recorded: 0 0
Total: 0 0
Unpaid Principal Balance    
With no related allowance: 0 0
With an allowance recorded: 0 0
Total: 0 0
Related Allowance 0 0
Average Recorded Investment    
With no related allowance: 0 0
With an allowance recorded: 0 0
Total: 0 0
Interest Income Recognized    
With no related allowance: 0 0
With an allowance recorded: 0 0
Total: 0 0
Commercial Portfolio Segment | Commercial and Industrial Sector    
Recorded Investment    
With no related allowance: 10,882 19,624
With an allowance recorded: 0 0
Total: 10,882 19,624
Unpaid Principal Balance    
With no related allowance: 18,225 26,323
With an allowance recorded: 0 0
Total: 18,225 26,323
Related Allowance 0 0
Average Recorded Investment    
With no related allowance: 12,097 20,218
With an allowance recorded: 0 0
Total: 12,097 20,218
Interest Income Recognized    
With no related allowance: 259 232
With an allowance recorded: 0 0
Total: 259 232
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Loans    
Recorded Investment    
With no related allowance: 17,429 32,046
With an allowance recorded: 0 0
Total: 17,429 32,046
Unpaid Principal Balance    
With no related allowance: 18,801 34,199
With an allowance recorded: 0 0
Total: 18,801 34,199
Related Allowance 0 0
Average Recorded Investment    
With no related allowance: 18,860 33,656
With an allowance recorded: 0 0
Total: 18,860 33,656
Interest Income Recognized    
With no related allowance: 21 146
With an allowance recorded: 0 0
Total: 21 146
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Loans    
Recorded Investment    
With no related allowance: 8,140 6,623
With an allowance recorded: 0 0
Total: 8,140 6,623
Unpaid Principal Balance    
With no related allowance: 11,170 11,896
With an allowance recorded: 0 0
Total: 11,170 11,896
Related Allowance 0 0
Average Recorded Investment    
With no related allowance: 8,323 6,611
With an allowance recorded: 0 0
Total: 8,323 6,611
Interest Income Recognized    
With no related allowance: 240 79
With an allowance recorded: 0 0
Total: 240 79
Consumer Portfolio Segment | Residential And Consumer    
Recorded Investment    
With no related allowance: 12,869 12,626
With an allowance recorded: 14,976 15,828
Total: 27,845 28,454
Unpaid Principal Balance    
With no related allowance: 16,992 17,130
With an allowance recorded: 15,684 16,498
Total: 32,676 33,628
Related Allowance 1,973 2,154
Average Recorded Investment    
With no related allowance: 12,904 11,907
With an allowance recorded: 14,989 15,627
Total: 27,893 27,534
Interest Income Recognized    
With no related allowance: 174 167
With an allowance recorded: 137 280
Total: $ 311 $ 447
v3.19.3
Derivatives and Hedging Activities - Effective Derivative Instrument (Details) - Derivative contracts - Cash Flow Hedging - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Cash Flow Hedges - Interest rate swaps        
Amount of (loss) gain recognized in other comprehensive income (loss) $ (12,794) $ 8,147 $ (71,139) $ 34,065
Amount of gain reclassified from accumulated other comprehensive income (loss) to interest expense $ 509 $ 822 $ 4,327 $ 1,059
v3.19.3
Fair Value Measurements (Carrying Value of Our Assets Measured at Fair Value on a Non-Recurring Basis) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans $ 64,296 $ 86,747
Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset, fair value 2,902 15,389
Fair Value, Measurements, Nonrecurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset, fair value 0 0
Fair Value, Measurements, Nonrecurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset, fair value 0 0
Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset, fair value 2,902 15,389
Estimated cash flow | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans 2,853  
Estimated cash flow | Fair Value, Measurements, Nonrecurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans 0  
Estimated cash flow | Fair Value, Measurements, Nonrecurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans 0  
Estimated cash flow | Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans 2,853  
Market comparable and estimated cash flow | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans   15,148
Market comparable and estimated cash flow | Fair Value, Measurements, Nonrecurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans   0
Market comparable and estimated cash flow | Fair Value, Measurements, Nonrecurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans   0
Market comparable and estimated cash flow | Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans   15,148
Market comparable | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Other real estate owned 49 241
Market comparable | Fair Value, Measurements, Nonrecurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Other real estate owned 0 0
Market comparable | Fair Value, Measurements, Nonrecurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Other real estate owned 0 0
Market comparable | Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Other real estate owned $ 49 $ 241
Lack of marketability and probability of default | Estimated cash flow | Minimum | Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans, measurement input (percentage) 1.00%  
Lack of marketability and probability of default | Estimated cash flow | Maximum | Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans, measurement input (percentage) 83.00%  
Lack of marketability and probability of default | Estimated cash flow | Weighted Average | Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans, measurement input (percentage) 8.10%  
Lack of marketability and probability of default | Market comparable and estimated cash flow | Minimum | Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans, measurement input (percentage)   1.00%
Lack of marketability and probability of default | Market comparable and estimated cash flow | Maximum | Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans, measurement input (percentage)   83.00%
Lack of marketability and probability of default | Market comparable and estimated cash flow | Weighted Average | Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans, measurement input (percentage)   11.20%
Lack of marketability | Market comparable | Minimum | Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Other real estate owned, measurement input (percentage) 0.000 0.000
Lack of marketability | Market comparable | Maximum | Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Other real estate owned, measurement input (percentage) 0.250 0.250
Lack of marketability | Market comparable | Weighted Average | Fair Value, Measurements, Nonrecurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Other real estate owned, measurement input (percentage) 0.1800 0.1050
v3.19.3
Comprehensive Income (Reclassification Adjustment) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Loss (gain) on securities, net $ (30) $ (97) $ 5,523 $ (1,198)
Amortization of net (gain) loss (63,603) (59,279) (184,455) (179,139)
Reclassification adjustment for unrealized gains on derivatives (100,102) (77,100) (293,541) (203,284)
Total before tax 73,014 73,425 205,822 227,629
Income tax benefit (expense) (21,042) (19,201) (59,068) (58,383)
Net income 51,972 54,224 146,754 169,246
Reclassification out of Accumulated Other Comprehensive Income        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Total before tax (511) (693) 1,357 (671)
Income tax benefit (expense) 147 181 (225) 172
Net income (364) (512) 1,132 (499)
Reclassification adjustment for losses included in net income | Reclassification out of Accumulated Other Comprehensive Income        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Loss (gain) on securities, net 0 0 5,690 0
Change in funded status of retirement obligations | Reclassification out of Accumulated Other Comprehensive Income        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Amortization of net (gain) loss (2) 129 (6) 388
Interest expense | Reclassification out of Accumulated Other Comprehensive Income        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Reclassification adjustment for unrealized gains on derivatives $ (509) $ (822) $ (4,327) $ (1,059)
v3.19.3
Equity Incentive Plan (Restricted Stock) (Details) - Restricted Stock - $ / shares
 9 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Number of Shares Awarded      
Beginning balance (shares) 3,477,747    
Granted (shares) 2,345,919 71,982  
Vested (shares) (1,011,670)   (19,138)
Forfeited (shares) (1,912,400)    
Ending balance (shares) 2,899,596   3,477,747
Weighted Average Grant Date Fair Value      
Beginning balance (usd per share) $ 12.69    
Granted (usd per share) 12.42    
Vested (usd per share) 12.67    
Forfeited (usd per share) 12.55    
Ending balance (usd per share) $ 12.58   $ 12.69
v3.19.3
Consolidated Statements of Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Interest and dividend income:        
Loans receivable and loans held-for-sale $ 231,734 $ 216,516 $ 684,086 $ 633,029
Securities:        
Equity 36 32 108 100
Government-sponsored enterprise obligations 343 266 876 813
Mortgage-backed securities 23,978 19,624 71,491 59,279
Municipal bonds and other debt 3,186 2,615 8,442 7,305
Interest-bearing deposits 821 677 1,965 1,541
Federal Home Loan Bank stock 4,456 4,296 12,871 11,928
Total interest and dividend income 264,554 244,026 779,839 713,995
Interest expense:        
Deposits 67,972 51,923 201,222 130,366
Borrowed funds 32,130 25,177 92,319 72,918
Total interest expense 100,102 77,100 293,541 203,284
Net interest income 164,452 166,926 486,298 510,711
Provision for loan losses (2,500) 2,000 (2,500) 8,500
Net interest income after provision for loan losses 166,952 164,926 488,798 502,211
Non-interest income        
Fees and service charges 5,796 5,506 16,785 16,194
Income on bank owned life insurance 1,832 1,596 4,949 4,425
Gain on loans, net 1,679 478 3,127 1,398
Gain (loss) on securities, net 30 97 (5,523) 1,198
Gain on sale of other real estate owned, net 358 13 863 350
Other income 5,085 2,597 12,754 7,310
Total non-interest income 14,780 10,287 32,955 30,875
Non-interest expense        
Compensation and fringe benefits 63,603 59,279 184,455 179,139
Advertising and promotional expense 2,994 3,229 10,888 9,123
Office occupancy and equipment expense 15,702 15,151 47,296 46,446
Federal deposit insurance premiums 3,300 4,935 9,900 13,960
General and administrative 487 509 1,663 1,702
Professional fees 6,010 3,578 12,411 11,781
Data processing and communication 8,348 7,090 23,989 20,319
Other operating expenses 8,274 8,017 25,329 22,987
Total non-interest expenses 108,718 101,788 315,931 305,457
Total before tax 73,014 73,425 205,822 227,629
Income tax expense 21,042 19,201 59,068 58,383
Net income $ 51,972 $ 54,224 $ 146,754 $ 169,246
Basic earnings per share (usd per share) $ 0.20 $ 0.19 $ 0.56 $ 0.60
Diluted earnings per share (usd per share) $ 0.20 $ 0.19 $ 0.55 $ 0.59
Weighted average shares outstanding        
Basic (shares) 261,678,994 280,755,898 264,104,402 284,289,363
Diluted (shares) 261,812,970 281,172,921 264,422,265 285,376,003
v3.19.3
Earnings Per Share
 9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The following is a summary of our earnings per share calculations and reconciliation of basic to diluted earnings per share.

 
For the Three Months Ended September 30,
 
2019
 
2018
 
(Dollars in thousands, except per share data)
Earnings for basic and diluted earnings per common share
 
 
 
Earnings applicable to common stockholders
$
51,972

 
$
54,224

 
 
 
 
Shares
 
 
 
Weighted-average common shares outstanding - basic
261,678,994

 
280,755,898

Effect of dilutive common stock equivalents (1)
133,976

 
417,023

Weighted-average common shares outstanding - diluted
261,812,970

 
281,172,921

 
 
 
 
Earnings per common share
 
 
 
Basic
$
0.20

 
$
0.19

Diluted
$
0.20

 
$
0.19


(1) For the three months ended September 30, 2019 and 2018, there were 8,142,370 and 10,059,247 equity awards, respectively, that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented.
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
(Dollars in thousands, except per share data)
Earnings for basic and diluted earnings per common share
 
 
 
Earnings applicable to common stockholders
$
146,754

 
$
169,246

 
 
 
 
Shares
 
 
 
Weighted-average common shares outstanding - basic
264,104,402

 
284,289,363

Effect of dilutive common stock equivalents (1)
317,863

 
1,086,640

Weighted-average common shares outstanding - diluted
264,422,265

 
285,376,003

 
 
 
 
Earnings per common share
 
 
 
Basic
$
0.56

 
$
0.60

Diluted
$
0.55

 
$
0.59


(1) For the nine months ended September 30, 2019 and 2018, there were 6,723,858 and 9,796,551 equity awards, respectively, that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented.
v3.19.3
Goodwill and Other Intangible Assets
 9 Months Ended
Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
The following table summarizes goodwill and intangible assets at September 30, 2019 and December 31, 2018:
 
 
September 30, 2019
 
December 31, 2018
 
 
(In thousands)
Mortgage servicing rights
 
$
11,454

 
11,712

Core deposit premiums
 
2,876

 
4,050

Other
 
690

 
755

Total other intangible assets
 
15,020

 
16,517

Goodwill
 
82,546

 
82,546

Goodwill and intangible assets
 
$
97,566

 
99,063



The following table summarizes other intangible assets as of September 30, 2019 and December 31, 2018:
 
 
Gross Intangible Asset
 
Accumulated Amortization
 
Valuation Allowance
 
Net Intangible Assets
 
 
(In thousands)
September 30, 2019
 
 
 
 
 
 
 
 
Mortgage servicing rights
 
$
18,406

 
(6,729
)
 
(223
)
 
11,454

Core deposit premiums
 
20,561

 
(17,685
)
 
—

 
2,876

Other
 
1,150

 
(460
)
 
—

 
690

Total other intangible assets
 
$
40,117

 
(24,874
)
 
(223
)
 
15,020

 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
Mortgage servicing rights
 
$
19,808

 
(7,921
)
 
(175
)
 
11,712

Core deposit premiums
 
25,058

 
(21,008
)
 
—

 
4,050

Other
 
1,150

 
(395
)
 
—

 
755

Total other intangible assets
 
$
46,016

 
(29,324
)
 
(175
)
 
16,517


Mortgage servicing rights are accounted for using the amortization method. Under this method, the Company amortizes the loan servicing asset in proportion to, and over the period of, estimated net servicing revenues. The Company sells loans on a servicing-retained basis. Loans that were sold on this basis had an unpaid principal balance of $1.61 billion and $1.62 billion at September 30, 2019 and December 31, 2018, respectively, all of which relate to mortgage loans. At September 30, 2019 and December 31, 2018, the servicing asset, included in other intangible assets, had an estimated fair value of $13.3 million and $14.9 million, respectively. At September 30, 2019, fair value was based on expected future cash flows considering a weighted average
discount rate of 12.05%, a weighted average constant prepayment rate on mortgages of 12.06% and a weighted average life of 6.0 years. See Note 15 for additional details.
Core deposit premiums are amortized using an accelerated method and having a weighted average amortization period of 10 years.
v3.19.3
Consolidated Statements of Cash Flows - USD ($)
 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash flows from operating activities:    
Net income $ 146,754,000 $ 169,246,000
Adjustments to reconcile net income to net cash provided by operating activities:    
ESOP and stock-based compensation expense 19,972,000 18,541,000
Amortization of premiums and accretion of discounts on securities, net 7,262,000 8,712,000
Amortization of premiums and accretion of fees and costs on loans, net (3,479,000) (5,297,000)
Amortization of other intangible assets 1,220,000 1,514,000
Provision for loan losses (2,500,000) 8,500,000
Depreciation and amortization of office properties and equipment 14,175,000 13,613,000
Loss (gain) on securities, net 5,523,000 (1,198,000)
Mortgage loans originated for sale (160,297,000) (44,246,000)
Proceeds from mortgage loan sales 164,249,000 46,112,000
Gain on sales of mortgage loans, net (2,879,000) (951,000)
Gain on sale of other real estate owned (863,000) (350,000)
Income on bank owned life insurance 4,949,000 4,425,000
Amortization of operating lease right-of-use assets 12,869,000  
Increase in accrued interest receivable (6,450,000) (5,428,000)
Deferred tax expense (benefit) 2,521,000 (7,146,000)
(Increase) decrease in other assets (38,879,000) 15,344,000
(Decrease) increase in other liabilities (67,364,000) 20,417,000
Total adjustments (59,869,000) 63,712,000
Net cash provided by operating activities 86,885,000 232,958,000
Cash flows from investing activities:    
Purchases of loans receivable (349,766,000) (363,339,000)
Net payoffs (originations) of loans receivable 29,729,000 (190,805,000)
Proceeds from disposition of loans receivable 148,505,000 447,000
Gain on disposition of loans receivable (248,000) (447,000)
Net proceeds from sale of other real estate owned 5,817,000 3,149,000
Proceeds from principal repayments/calls/maturities of debt securities available for sale 304,765,000 295,651,000
Proceeds from sales of debt securities available for sale 399,435,000 0
Proceeds from principal repayments/calls/maturities of debt securities held to maturity 210,115,000 233,202,000
Purchases of equity securities (72,000) (67,000)
Purchases of debt securities available for sale (786,011,000) (353,821,000)
Purchases of debt securities held-to-maturity (166,338,000) (46,805,000)
Proceeds from redemptions of Federal Home Loan Bank stock 244,632,000 194,201,000
Purchases of Federal Home Loan Bank stock (258,394,000) (205,060,000)
Purchases of office properties and equipment (8,009,000) (8,769,000)
Death benefit proceeds from bank owned life insurance, net 0 3,619,000
Purchases of bank owned life insurance 0 (125,000,000)
Proceeds from surrender of bank owned life insurance contract 0 71,029,000
Cash paid for acquisition 0 (340,183,000)
Net cash used in investing activities (225,840,000) (832,998,000)
Cash flows from financing activities:    
Net increase in deposits 92,486,000 40,115,000
Funds borrowed under other repurchase agreements 197,758,000 120,000,000
Net increase in borrowed funds 61,115,000 272,241,000
Net increase in advance payments by borrowers for taxes and insurance 17,468,000 26,730,000
Dividends paid (91,935,000) (81,166,000)
Exercise of stock options 813,000 5,324,000
Purchase of treasury stock (140,241,000) (191,003,000)
Net cash provided by financing activities 137,464,000 192,241,000
Net decrease in cash and cash equivalents (1,491,000) (407,799,000)
Cash and cash equivalents at beginning of period 196,891,000 618,394,000
Cash and cash equivalents at end of period 195,400,000 210,595,000
Non-cash investing activities:    
Real estate acquired through foreclosure and other assets repossessed 11,289,000 4,938,000
Cash paid during the year for:    
Interest 294,669,000 196,000,000
Income taxes 36,220,000 57,861,000
Significant non-cash transactions:    
Debt securities transferred from held-to-maturity to available-for-sale 393,067,000 0
Loans transferred to held-for-sale portfolio 28,373,000 0
Right-of-use assets obtained in exchange for new lease liabilities 2,358,000  
Non-cash assets acquired:    
Loans 0 330,747,000
Goodwill and other intangible assets, net 0 4,975,000
Total non-cash assets acquired $ 0 $ 335,722,000
v3.19.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair value, assets measured on recurring basis
The following tables provide the level of valuation assumptions used to determine the carrying value of our assets and liabilities measured at fair value on a recurring basis at September 30, 2019 and December 31, 2018.
 
Carrying Value at September 30, 2019
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(In thousands)
Assets:
 
 
 
 
 
 
 
Equity securities
$
6,030

 
6,030

 
—

 
—

Debt securities available for sale:
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
1,191,522

 
—

 
1,191,522

 
—

Federal National Mortgage Association
1,151,722

 
—

 
1,151,722

 
—

Government National Mortgage Association
300,780

 
—

 
300,780

 
—

Total debt securities available-for-sale
$
2,644,024

 
—

 
2,644,024

 
—

Interest rate swaps
$
6,396

 
—

 
6,396

 
—

Liabilities:
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
Other contracts
$
178

 
—

 
178

 
—

 
Carrying Value at December 31, 2018
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(In thousands)
Assets:
 
 
 
 
 
 
 
Equity securities
$
5,793

 
5,793

 
—

 
—

Debt securities available for sale:
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
986,650

 
—

 
986,650

 
—

Federal National Mortgage Association
968,556

 
—

 
968,556

 
—

Government National Mortgage Association
166,956

 
—

 
166,956

 
—

Total debt securities available-for-sale
$
2,122,162

 
—

 
2,122,162

 
—

Liabilities:
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
Interest rate swaps
$
432

 
—

 
432

 
—

Other contracts
66

 
—

 
66

 
—

Total derivatives
$
498

 
—

 
498

 
—
Carrying value of our assets measured at fair value on a non-recurring basis
The following tables provide the level of valuation assumptions used to determine the carrying value of our assets measured at fair value on a non-recurring basis at September 30, 2019 and December 31, 2018. For the three months ended September 30, 2019 and December 31, 2018 there was no change to the carrying value of MSR or loans held for sale.
 Security Type
Valuation Technique
Unobservable Input
Range
Weighted Average Input
 
Carrying Value at September 30, 2019
 
 
 
Minimum
Maximum
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
 
 
(In thousands)
Impaired loans
Estimated cash flow
Probability of default
1.0%
83.0%
8.10%
 
$
2,853

 
—

 
—

 
2,853

Other real estate owned
Market comparable
Lack of marketability
0.0%
25.0%
18.00%
 
49

 
—

 
—

 
49

 
 
 
 
 
 
 
$
2,902

 
—

 
—

 
2,902

 
 Security Type
Valuation Technique
Unobservable Input
Range
Weighted Average Input
 
Carrying Value at December 31, 2018
 
 
 
Minimum
Maximum
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
 
 
(In thousands)
Impaired loans
Market comparable and estimated cash flow
Lack of marketability and probability of default
1.0%
83.0%
11.20%
 
$
15,148

 
—

 
—

 
15,148

Other real estate owned
Market comparable
Lack of marketability
0.0%
25.0%
10.50%
 
241

 
—

 
—

 
241

 
 
 
 
 
 
 
$
15,389

 
—

 
—

 
15,389
Carrying amounts and estimated fair values
The carrying values and estimated fair values of the Company’s financial instruments are presented in the following table.
 
September 30, 2019
 
Carrying
 
Estimated Fair Value
 
value
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(In thousands)
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
195,400

 
195,400

 
195,400

 
—

 
—

Equities
6,030

 
6,030

 
6,030

 
—

 
—

Debt securities available-for-sale
2,644,024

 
2,644,024

 
—

 
2,644,024

 
—

Debt securities held-to-maturity
1,117,699

 
1,158,769

 
—

 
1,089,032

 
69,737

FHLB stock
273,996

 
273,996

 
273,996

 
—

 
—

Loans held for sale
31,373

 
31,373

 
—

 
31,373

 
—

Net loans
21,516,234

 
21,677,960

 
—

 
—

 
21,677,960

Derivative financial instruments
6,396

 
6,396

 
—

 
6,396

 
—

Financial liabilities:
 
 
 
 
 
 
 
 
 
Deposits, other than time deposits
$
13,173,915

 
13,173,915

 
13,173,915

 
—

 
—

Time deposits
4,498,841

 
4,498,964

 
—

 
4,498,964

 
—

Borrowed funds
5,694,553

 
5,702,437

 
—

 
5,702,437

 
—

Derivative financial instruments
178

 
178

 
—

 
178

 
—

 
December 31, 2018
 
Carrying
 
Estimated Fair Value
 
value
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(In thousands)
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
196,891

 
196,891

 
196,891

 
—

 
—

Equities
5,793

 
5,793

 
5,793

 
—

 
—

Debt securities available-for-sale
2,122,162

 
2,122,162

 
—

 
2,122,162

 
—

Debt securities held-to-maturity
1,555,137

 
1,558,564

 
—

 
1,476,565

 
81,999

FHLB stock
260,234

 
260,234

 
260,234

 
—

 
—

Loans held for sale
4,074

 
4,074

 
—

 
4,074

 
—

Net loans
21,378,136

 
21,085,185

 
—

 
—

 
21,085,185

Financial liabilities:
 
 
 
 
 
 
 
 
 
Deposits, other than time deposits
$
13,009,422

 
13,009,422

 
13,009,422

 
—

 
—

Time deposits
4,570,847

 
4,546,991

 
—

 
4,546,991

 
—

Borrowed funds
5,435,681

 
5,398,553

 
—

 
5,398,553

 
—

Derivative financial instruments
498

 
498

 
—

 
498

 
—
v3.19.3
Net Periodic Benefit Plan Expense (Tables)
 9 Months Ended
Sep. 30, 2019
Retirement Benefits [Abstract]  
Components of of net periodic benefit cost for the Directors’ Plan and the Wage Replacement Plan
The components of net periodic benefit cost for the Directors’ Plan and the SERP II are as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Interest cost
$
397

 
355

 
1,191

 
1,064

Amortization of:
 
 
 
 
 
 
 
Net loss
—

 
126

 
—

 
379

Total net periodic benefit cost
$
397

 
481

 
1,191

 
1,443
v3.19.3
Deposits (Tables)
 9 Months Ended
Sep. 30, 2019
Banking and Thrift [Abstract]  
Summary of deposits
Deposits are summarized as follows:

 
September 30, 2019
 
December 31, 2018
 
(In thousands)
Non-interest bearing:
 
 
 
Checking accounts
$
2,433,152

 
2,535,848

Interest bearing:
 
 
 
Checking accounts
5,103,007

 
4,783,563

Money market deposits
3,674,032

 
3,641,070

Savings
1,963,724

 
2,048,941

Certificates of deposit
4,498,841

 
4,570,847

Total deposits
$
17,672,756

 
17,580,269
v3.19.3
Loans Receivable, Net (Troubled Debt Restructured Loans) (Details)
$ in Thousands
Sep. 30, 2019
USD ($)
loan
Dec. 31, 2018
USD ($)
loan
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Accrual, number of loans | loan 58 54
Accrual, amount | $ $ 12,438 $ 13,620
Non-accrual, number of loans | loan 86 87
Non-accrual, amount | $ $ 24,820 $ 34,138
Number of loans | loan 144 141
Troubled debt restructuring, Amount | $ $ 37,258 $ 47,758
Commercial Portfolio Segment    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Accrual, number of loans | loan 3 2
Accrual, amount | $ $ 1,669 $ 2,070
Non-accrual, number of loans | loan 5 8
Non-accrual, amount | $ $ 7,742 $ 17,230
Number of loans | loan 8 10
Troubled debt restructuring, Amount | $ $ 9,411 $ 19,300
Commercial Portfolio Segment | Commercial and Industrial Sector    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Accrual, number of loans | loan 3 2
Accrual, amount | $ $ 1,669 $ 2,070
Non-accrual, number of loans | loan 2 4
Non-accrual, amount | $ $ 5,194 $ 13,479
Number of loans | loan 5 6
Troubled debt restructuring, Amount | $ $ 6,863 $ 15,549
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Sector    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Accrual, number of loans | loan   0
Accrual, amount | $   $ 0
Non-accrual, number of loans | loan   1
Non-accrual, amount | $   $ 892
Number of loans | loan   1
Troubled debt restructuring, Amount | $   $ 892
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Sector    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Accrual, number of loans | loan 0 0
Accrual, amount | $ $ 0 $ 0
Non-accrual, number of loans | loan 3 3
Non-accrual, amount | $ $ 2,548 $ 2,859
Number of loans | loan 3 3
Troubled debt restructuring, Amount | $ $ 2,548 $ 2,859
Consumer Portfolio Segment | Residential And Consumer    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Accrual, number of loans | loan 55 52
Accrual, amount | $ $ 10,769 $ 11,550
Non-accrual, number of loans | loan 81 79
Non-accrual, amount | $ $ 17,078 $ 16,908
Number of loans | loan 136 131
Troubled debt restructuring, Amount | $ $ 27,847 $ 28,458
v3.19.3
Loans Receivable, Net (Narrative) (Details)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
USD ($)
loan
Sep. 30, 2018
USD ($)
loan
Sep. 30, 2019
USD ($)
loan
Sep. 30, 2018
USD ($)
loan
Dec. 31, 2018
USD ($)
loan
Accounts, Notes, Loans and Financing Receivable [Line Items]          
PCI loans acquired     $ 7,000 $ 343,000  
Outstanding minimum balance of loans to be evaluated for impairment individually, greater than $ 1,000,000.0   1,000,000.0    
Outstanding minimum balance of loans that are evaluated for impairment individually 1,000,000.0   $ 1,000,000.0    
Delinquency period in days     90 days   90 days
Residential mortgage loans, appraisal update period, years     2 years    
Loans that are 90 days past due and still accruing 0   $ 0    
PCI loans 4,132,000   4,132,000   $ 4,461,000
Loans, Individually evaluated for impairment 64,296,000   64,296,000   86,747,000
Related allowance 1,973,000   1,973,000   2,154,000
Interest income received and recognized on loans     831,000 $ 513,000  
Allowance for loan losses, charge-offs     10,980,000   24,090,000
Allowance for loan losses, recoveries     5,648,000   16,938,000
Allowance for loan losses, individually evaluated for impairment 1,973,000   $ 1,973,000   $ 2,154,000
Minimum          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Delinquency period in days     30 days   30 days
Maximum          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Delinquency period in days     89 days   89 days
Commercial Loan          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Outstanding minimum balance of loans to be evaluated for impairment individually, greater than 1,000,000.0   $ 1,000,000.0    
Outstanding minimum balance of loans that are evaluated for impairment individually 1,000,000.0   1,000,000.0    
Commercial Real Estate Construction And Multi Family          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Outstanding minimum balance of loans to be evaluated for impairment individually, greater than 1,000,000.0   1,000,000.0    
Outstanding minimum balance of loans that are evaluated for impairment individually 2,000,000.0   2,000,000.0    
Financing Receivables, 30 to 89 Days Past Due          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
TDR delinquent but classified as accruing 954,000   $ 954,000    
Watch | Minimum          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Delinquency period in days     30 days    
Watch | Maximum          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Delinquency period in days     59 days    
Commercial Portfolio Segment          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Related allowance 0   $ 0   $ 0
Commercial Portfolio Segment | Construction Loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Loans, Individually evaluated for impairment 0   0   0
Related allowance 0   0   0
Allowance for loan losses, charge-offs     0   0
Allowance for loan losses, recoveries     0   0
Allowance for loan losses, individually evaluated for impairment 0   0   0
Commercial Portfolio Segment | Commercial Real Estate Sector | Retail Site          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Loans, Individually evaluated for impairment 8,140,000   8,140,000   6,623,000
Related allowance $ 0   $ 0   0
Number of Loans | loan 1 0 1 2  
Allowance for loan losses, charge-offs     $ 121,000   7,200,000
Allowance for loan losses, recoveries     2,137,000   5,213,000
Allowance for loan losses, individually evaluated for impairment $ 0   $ 0   0
Number loans modified as TDR in the last 12 months for which there was a default payment | loan     1 2  
Recorded investment     $ 2,500,000 $ 568,000  
Commercial Portfolio Segment | Commercial Real Estate Sector | Multifamily          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Loans, Individually evaluated for impairment 17,429,000   17,429,000   32,046,000
Related allowance 0   0   0
Allowance for loan losses, charge-offs     2,854,000   2,603,000
Allowance for loan losses, recoveries     1,244,000   17,000
Allowance for loan losses, individually evaluated for impairment 0   0   0
Number loans modified as TDR in the last 12 months for which there was a default payment | loan       1  
Recorded investment       $ 898,000  
Consumer Portfolio Segment | Residential Mortgage          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Loans, Individually evaluated for impairment 26,939,000   26,939,000   27,884,000
Allowance for loan losses, charge-offs     1,905,000   5,246,000
Allowance for loan losses, recoveries     1,186,000   2,193,000
Allowance for loan losses, individually evaluated for impairment 1,897,000   $ 1,897,000   2,082,000
Number loans modified as TDR in the last 12 months for which there was a default payment | loan     1 9  
Recorded investment     $ 132,000 $ 651,000  
Residential Mortgage          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Delinquency period in days     90 days    
Special Mention Residential | Minimum          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Delinquency period in days     60 days    
Special Mention Residential | Maximum          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Delinquency period in days     89 days    
Substandard Residential          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Delinquency period in days     90 days    
PCI Loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
PCI loans 4,100,000   $ 4,100,000   $ 4,500,000
PCI Loans | Residential Mortgage          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Number of Loans | loan     5   5
PCI Loans | Financing Receivables, 1 to 29 Days Past Due          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
PCI loans 3,900,000   $ 3,900,000   $ 4,100,000
PCI Loans | Financing Receivables, 30 to 89 Days Past Due          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
PCI loans 31,000   31,000   229,000
PCI Loans | Greater than 90 Days          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
PCI loans 133,000   133,000   248,000
Collateral Dependent Tdrs          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Allowance for loan losses, charge-offs 156,000 $ 0 729,000 214,000  
Allowance for loan losses, recoveries       $ 172,000  
Allowance for loan losses, individually evaluated for impairment $ 2,000,000.0   $ 2,000,000.0   $ 2,200,000
v3.19.3
Loans Receivable, Net (Schedule of Risk Category of Loans by Class of Loans) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net $ 21,742,078 $ 21,623,303
Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 18,621,073 18,145,637
Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 2,103,059 2,241,167
Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 261,944 548,409
Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 756,002 688,090
Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Loss    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Commercial Portfolio Segment    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 15,734,899 15,565,053
Commercial Portfolio Segment | Construction Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 289,857 227,015
Commercial Portfolio Segment | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 12,696,862 12,182,971
Commercial Portfolio Segment | Pass | Construction Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 190,412 163,503
Commercial Portfolio Segment | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 2,085,342 2,220,642
Commercial Portfolio Segment | Watch | Construction Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 80,735 35,774
Commercial Portfolio Segment | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 250,228 539,047
Commercial Portfolio Segment | Special Mention | Construction Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 399 9,200
Commercial Portfolio Segment | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 702,467 622,393
Commercial Portfolio Segment | Substandard | Construction Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 18,311 18,538
Commercial Portfolio Segment | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Commercial Portfolio Segment | Doubtful | Construction Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Commercial Portfolio Segment | Loss    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Commercial Portfolio Segment | Loss | Construction Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Commercial Portfolio Segment | Commercial and Industrial Sector    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 2,681,577 2,389,756
Commercial Portfolio Segment | Commercial and Industrial Sector | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 1,851,024 1,647,130
Commercial Portfolio Segment | Commercial and Industrial Sector | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 638,736 571,620
Commercial Portfolio Segment | Commercial and Industrial Sector | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 48,164 53,861
Commercial Portfolio Segment | Commercial and Industrial Sector | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 143,653 117,145
Commercial Portfolio Segment | Commercial and Industrial Sector | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Commercial Portfolio Segment | Commercial and Industrial Sector | Loss    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Sector    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 7,995,095 8,165,187
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Sector | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 6,553,284 6,462,056
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Sector | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 962,053 1,061,168
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Sector | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 146,866 313,498
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Sector | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 332,892 328,465
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Sector | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Commercial Portfolio Segment | Multifamily | Commercial Real Estate Sector | Loss    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Sector    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 4,768,370 4,783,095
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Sector | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 4,102,142 3,910,282
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Sector | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 403,818 552,080
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Sector | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 54,799 162,488
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Sector | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 207,611 158,245
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Sector | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Commercial Portfolio Segment | Retail Site | Commercial Real Estate Sector | Loss    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Consumer Portfolio Segment | Residential Mortgage Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 5,306,912 5,350,504
Consumer Portfolio Segment | Consumer and Other Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 700,267 707,746
Consumer Portfolio Segment | Pass | Residential Mortgage Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 5,232,790 5,268,234
Consumer Portfolio Segment | Pass | Consumer and Other Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 691,421 694,432
Consumer Portfolio Segment | Watch | Residential Mortgage Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 12,437 12,082
Consumer Portfolio Segment | Watch | Consumer and Other Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 5,280 8,443
Consumer Portfolio Segment | Special Mention | Residential Mortgage Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 10,192 7,712
Consumer Portfolio Segment | Special Mention | Consumer and Other Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 1,524 1,650
Consumer Portfolio Segment | Substandard | Residential Mortgage Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 51,493 62,476
Consumer Portfolio Segment | Substandard | Consumer and Other Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 2,042 3,221
Consumer Portfolio Segment | Doubtful | Residential Mortgage Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Consumer Portfolio Segment | Doubtful | Consumer and Other Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Consumer Portfolio Segment | Loss | Residential Mortgage Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net 0 0
Consumer Portfolio Segment | Loss | Consumer and Other Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans, net $ 0 $ 0
v3.19.3
Derivatives and Hedging Activities - Fair Value of Derivative Instruments on the Balance Sheet (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Derivatives designated as hedging instruments: | Other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives $ 91 $ 0
Derivatives designated as hedging instruments: | Other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives 0  
Derivatives not designated as hedging instruments: | Other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives 6,305 0
Derivatives not designated as hedging instruments: | Other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives 178 66
Interest Rate Swaps    
Derivatives, Fair Value [Line Items]    
Asset derivatives 106  
Liability derivatives 178 498
Interest Rate Swaps | Derivatives designated as hedging instruments: | Other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives, notional amount 2,475,000 0
Asset derivatives 91 0
Interest Rate Swaps | Derivatives designated as hedging instruments: | Other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives, notional amount 0 2,605,000
Liability derivatives 0 432
Interest Rate Swaps | Derivatives not designated as hedging instruments: | Other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives, notional amount 306,000 0
Asset derivatives 6,305 0
Interest Rate Swaps | Derivatives not designated as hedging instruments: | Other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives, notional amount 0 0
Liability derivatives 0 0
Other Contracts | Derivatives not designated as hedging instruments: | Other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives, notional amount 0 0
Asset derivatives 0 0
Other Contracts | Derivatives not designated as hedging instruments: | Other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives, notional amount 22,000 18,000
Liability derivatives $ 178 $ 66
v3.19.3
Fair Value Measurements (Narrative) (Details)
Sep. 30, 2019
USD ($)
Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Outstanding minimum balance of loans to be evaluated for impairment individually $ 1,000,000.0  
Outstanding minimum balance of loans that are evaluated for impairment individually $ 1,000,000.0  
Prepayment speeds | Minimum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
MSR, net input (percentage) 0.0660 0.0498
Prepayment speeds | Maximum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
MSR, net input (percentage) 0.4200 0.2730
Discount Rate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
MSR, net input (percentage) 0.1205 0.1250
Discount Rate | Minimum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans, measurement input (percentage) 0.00%  
Other real estate owned, measurement input (percentage) 0  
Discount Rate | Maximum    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impaired loans, measurement input (percentage) 25.00%  
Other real estate owned, measurement input (percentage) 0.25  
v3.19.3
Comprehensive Income (Component of Accumulated Other Comprehensive Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Balance, beginning of period $ 2,926,875 $ 3,090,983 $ 3,005,330 $ 3,125,451    
Net change (2,484) (1,577) (9,326) (11,172)    
Reclassification due to the adoption of ASU No. 2016-01           $ (606)
Balance, end of period 2,931,367 3,035,221 2,931,367 3,035,221    
Total accumulated other comprehensive loss            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Balance, beginning of period (18,411) (39,540) (11,569) (29,339)    
Net change (2,484) (1,577) (9,326) (11,172)    
Reclassification due to the adoption of ASU No. 2016-01         $ (606)  
Balance, end of period (20,895) (41,117) (20,895) (41,117)    
Change in funded status of retirement obligations            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Balance, beginning of period     (3,018) (5,640)    
Net change 13 102 40 308    
Reclassification due to the adoption of ASU No. 2016-01           0
Balance, end of period (2,978) (5,332) (2,978) (5,332)    
Accretion of loss on debt securities reclassified to held-to-maturity from available-for-sale            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Balance, beginning of period     (921) (1,520)    
Net change 41 149 472 475    
Reclassification due to the adoption of ASU No. 2016-01           0
Balance, end of period (449) (1,045) (449) (1,045)    
Unrealized (losses) gains on debt securities available-for-sale and gains included in net income            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Balance, beginning of period     (8,884) (21,184)    
Net change     43,826 (36,330)    
Reclassification due to the adoption of ASU No. 2016-01           (606)
Balance, end of period 34,942 (58,120) 34,942 (58,120)    
Other-than-temporary impairment accretion on debt securities            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Balance, beginning of period     (11,397) (14,482)    
Net change 228 216 589 647    
Reclassification due to the adoption of ASU No. 2016-01           0
Balance, end of period (10,808) (13,835) (10,808) (13,835)    
Net (losses) gains on derivatives            
AOCI Attributable to Parent, Net of Tax [Roll Forward]            
Balance, beginning of period     12,651 13,487    
Net change (9,564) 5,266 (54,253) 23,728    
Reclassification due to the adoption of ASU No. 2016-01           $ 0
Balance, end of period $ (41,602) $ 37,215 $ (41,602) $ 37,215    
v3.19.3
Equity Incentive Plan (Summary of Stock Option Activity and Related Information) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Number of Stock Options      
Beginning balance (shares) 10,216,047    
Granted (shares) 995,216 50,000  
Exercised (shares) (111,802)    
Forfeited (shares) (5,169,858)    
Expired (shares) (174,000)    
Ending balance (shares) 5,755,603   10,216,047
Exercisable at period end (shares) 3,038,063    
Weighted Average Exercise Price      
Beginning balance (usd per share) $ 12.43    
Granted (usd per share) 12.53    
Exercised (usd per share) 7.28    
Forfeited (usd per share) 12.53    
Expired (usd per share) 12.43    
Ending balance (usd per share) 12.46   $ 12.43
Exercisable end of the year (usd per share) $ 12.40    
Outstanding, Weighted Average Remaining Contractual Life 5 years 9 months 18 days   6 years 6 months
Granted, Weighted Average Remaining Contractual Life 5 years 10 months 24 days    
Exercised, Weighted Average Remaining Contractual Life 3 years 3 months 18 days    
Weighted Average Remaining Contractual Life, Exercisable Ending Balance 5 years 8 months 12 days    
Aggregate Intrinsic Value, Outstanding $ 287   $ 522
Aggregate Intrinsic Value, Exercisable $ 286    
v3.19.3
Securities
 9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
Equity Securities
Equity securities are reported at fair value on the Company’s Consolidated Balance Sheets. The Company’s portfolio of equity securities had an estimated fair value of $6.0 million and $5.8 million as of September 30, 2019 and December 31, 2018, respectively. Realized gains and losses from sales of equity securities as well as changes in fair value of equity securities still held at the reporting date are recognized in the Consolidated Statements of Income.
The following table presents the disaggregated net gains on equity securities reported in the Consolidated Statements of Income:
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Net gains recognized on equity securities
$
30

 
97

 
$
165

 
104

Less: Net gains recognized on equity securities sold
—

 
—

 
—

 
—

Unrealized gains recognized on equity securities
$
30

 
97

 
$
165

 
$
104


Debt Securities
The following tables present the carrying value, gross unrealized gains and losses and estimated fair value for available-for-sale debt securities and the amortized cost, net unrealized losses, carrying value, gross unrecognized gains and losses and estimated fair value for held-to-maturity debt securities as of the dates indicated. During the second quarter of 2019, the Company early adopted ASU 2019-04 and reclassified $393.1 million of debt securities held-to-maturity to debt securities available-for-sale. See Note 17, Recent Accounting Pronouncements, for further details regarding the adoption of ASU 2019-04.
 
At September 30, 2019
 
Carrying value
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Estimated
fair value
 
(In thousands)
Available-for-sale:
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
1,170,764

 
21,250

 
492

 
1,191,522

Federal National Mortgage Association
1,131,545

 
20,351

 
174

 
1,151,722

Government National Mortgage Association
295,831

 
4,949

 
—

 
300,780

Total debt securities available-for-sale
$
2,598,140

 
46,550

 
666

 
2,644,024

 
At September 30, 2019
 
Amortized cost
 
Net unrealized losses (1)
 
Carrying value
 
Gross
unrecognized
gains (2)
 
Gross
unrecognized
losses (2)
 
Estimated
fair value
 
(In thousands)
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises
$
50,453

 
—

 
50,453

 
722

 
—

 
51,175

Municipal bonds
99,273

 
—

 
99,273

 
4,234

 
—

 
103,507

Corporate and other debt securities
77,062

 
15,035

 
62,027

 
23,130

 
199

 
84,958

Total debt securities held-to-maturity
226,788

 
15,035

 
211,753

 
28,086

 
199

 
239,640

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
273,488

 
154

 
273,334

 
4,670

 
201

 
277,803

Federal National Mortgage Association
559,607

 
436

 
559,171

 
7,930

 
359

 
566,742

Government National Mortgage Association
73,441

 
—

 
73,441

 
1,143

 
—

 
74,584

Total mortgage-backed securities held-to-maturity
906,536

 
590

 
905,946

 
13,743

 
560

 
919,129

Total debt securities held-to-maturity
$
1,133,324

 
15,625

 
1,117,699

 
41,829

 
759

 
1,158,769


(1) Net unrealized losses of held-to-maturity corporate and other debt securities represent the other than temporary charge related to other non-credit factors and is being amortized through accumulated other comprehensive income over the remaining life of the securities. For mortgage-backed securities, it represents the net loss on previously designated available-for sale debt securities transferred to held-to-maturity at fair value and is being amortized through accumulated other comprehensive income over the remaining life of the securities.
(2) Unrecognized gains and losses of held-to-maturity debt securities are not reflected in the financial statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as held-to-maturity; or (ii) the date that an other than temporary impairment charge is recognized on a held-to-maturity security, through the date of the balance sheet.
 
At December 31, 2018
 
Carrying value
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Estimated
fair value
 
(In thousands)
Available-for-sale:
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
988,348

 
6,492

 
8,190

 
986,650

Federal National Mortgage Association
980,546

 
3,560

 
15,550

 
968,556

Government National Mortgage Association
165,211

 
1,745

 
—

 
166,956

Total debt securities available-for-sale
$
2,134,105

 
11,797

 
23,740

 
2,122,162


 
At December 31, 2018
 
Amortized cost
 
Net unrealized losses (1)
 
Carrying
value
 
Gross
unrecognized
gains (2)
 
Gross
unrecognized
losses (2)
 
Estimated
fair value
 
(In thousands)
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises
$
41,258

 
—

 
41,258

 
—

 
1,236

 
40,022

Municipal bonds
25,513

 
—

 
25,513

 
942

 
—

 
26,455

Corporate and other debt securities
66,295

 
15,854

 
50,441

 
36,592

 
—

 
87,033

Total debt securities held-to-maturity
133,066

 
15,854

 
117,212

 
37,534

 
1,236

 
153,510

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
402,231

 
595

 
401,636

 
112

 
9,413

 
392,335

Federal National Mortgage Association
955,237

 
689

 
954,548

 
535

 
22,687

 
932,396

Government National Mortgage Association
81,741

 
—

 
81,741

 
—

 
1,418

 
80,323

Total mortgage-backed securities held-to-maturity
1,439,209

 
1,284

 
1,437,925

 
647

 
33,518

 
1,405,054

Total debt securities held-to-maturity
$
1,572,275

 
17,138

 
1,555,137

 
38,181

 
34,754

 
1,558,564



(1) Net unrealized losses of held-to-maturity corporate and other debt securities represent the other than temporary charge related to other non-credit factors and is being amortized through accumulated other comprehensive income over the remaining life of the securities. For mortgage-backed securities, it represents the net loss on previously designated available-for sale debt securities transferred to held-to-maturity at fair value and is being amortized through accumulated other comprehensive income over the remaining life of the securities.
(2) Unrecognized gains and losses of held-to-maturity debt securities are not reflected in the financial statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as held-to-maturity; or (ii) the date that an other than temporary impairment charge is recognized on a held-to-maturity security, through the date of the balance sheet.
At September 30, 2019, corporate and other debt securities include a portfolio of collateralized debt obligations backed by pooled trust preferred securities (“TruPS”), principally issued by banks and to a lesser extent insurance companies and real estate investment trusts. At September 30, 2019, the TruPS had a carrying value and estimated fair value of $47.0 million and $69.7 million, respectively. While all were investment grade at purchase, securities classified as non-investment grade at September 30, 2019 had a carrying value and estimated fair value of $45.2 million and $65.3 million, respectively. Fair value is derived from considering specific assumptions, including terms of the TruPS structure, events of deferrals, defaults and liquidations, the projected cash flow for principal and interest payments, and discounted cash flow modeling.
Debt securities with a carrying value of $905.1 million and an estimated fair value of $921.2 million are pledged to secure borrowings and municipal deposits. The contractual maturities of the Bank’s mortgage-backed securities are generally less than 20 years with effective lives expected to be shorter due to prepayments. Expected maturities may differ from contractual maturities due to underlying loan prepayments or early call privileges of the issuer; therefore, mortgage-backed securities are not included in the following table. The amortized cost and estimated fair value of debt securities other than mortgage-backed securities at September 30, 2019, by contractual maturity, are shown below. 
 
September 30, 2019
 
Carrying
value
 
Estimated
fair value
 
(In thousands)
Due in one year or less
$
10,129

 
10,129

Due after one year through five years
—

 
—

Due after five years through ten years
45,460

 
47,148

Due after ten years
156,164

 
182,363

Total
$
211,753

 
239,640



Gross unrealized losses on debt securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2019 and December 31, 2018, were as follows:
 
September 30, 2019
 
Less than 12 months
 
12 months or more
 
Total
 
Estimated
fair value
 
Unrealized
losses
 
Estimated
fair value
 
Unrealized
losses
 
Estimated
fair value
 
Unrealized
losses
 
(In thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 


Federal Home Loan Mortgage Corporation
$
117,655

 
332

 
10,060

 
160

 
127,715

 
492

Federal National Mortgage Association
29,282

 
102

 
37,257

 
72

 
66,539

 
174

Total mortgage-backed securities available-for-sale
146,937

 
434

 
47,317

 
232

 
194,254

 
666

Total debt securities available-for-sale
146,937

 
434

 
47,317

 
232

 
194,254

 
666

Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Corporate and other debt securities
2,766

 
199

 
—

 
—

 
2,766

 
199

Total debt securities held-to-maturity
2,766

 
199

 
—

 
—

 
2,766

 
199

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
9,098

 
28

 
31,254

 
173

 
40,352

 
201

Federal National Mortgage Association
3,132

 
12

 
51,680

 
347

 
54,812

 
359

Total mortgage-backed securities held-to-maturity
12,230

 
40

 
82,934

 
520

 
95,164

 
560

Total debt securities held-to-maturity
14,996

 
239

 
82,934

 
520

 
97,930

 
759

Total
$
161,933

 
673

 
130,251

 
752

 
292,184

 
1,425


 
December 31, 2018
 
Less than 12 months
 
12 months or more
 
Total
 
Estimated
fair value
 
Unrealized
losses
 
Estimated
fair value
 
Unrealized
losses
 
Estimated
fair value
 
Unrealized
losses
 
(In thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
97,137

 
994

 
288,916

 
7,196

 
386,053

 
8,190

Federal National Mortgage Association
125,389

 
2,098

 
489,337

 
13,452

 
614,726

 
15,550

Total mortgage-backed securities available-for-sale
222,526

 
3,092

 
778,253

 
20,648

 
1,000,779

 
23,740

Total debt securities available-for-sale
222,526

 
3,092

 
778,253

 
20,648

 
1,000,779

 
23,740

Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises
—

 
—

 
40,022

 
1,236

 
40,022

 
1,236

Total debt securities held-to-maturity
—

 
—

 
40,022

 
1,236

 
40,022

 
1,236

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
51,045

 
553

 
339,534

 
8,860

 
390,579

 
9,413

Federal National Mortgage Association
214,400

 
2,449

 
663,671

 
20,238

 
878,071

 
22,687

Government National Mortgage Association
35,499

 
492

 
44,824

 
926

 
80,323

 
1,418

Total mortgage-backed securities held-to-maturity
300,944

 
3,494

 
1,048,029

 
30,024

 
1,348,973

 
33,518

Total debt securities held-to-maturity
300,944

 
3,494

 
1,088,051

 
31,260

 
1,388,995

 
34,754

Total
$
523,470

 
6,586

 
1,866,304

 
51,908

 
2,389,774

 
58,494


At September 30, 2019, the majority of gross unrealized losses relate to our mortgage-backed-security portfolio which is comprised of debt securities issued by U.S. Government Sponsored Enterprises. The fair values of these securities have been positively impacted by changes in interest rates as compared to December 31, 2018.
Other-Than-Temporary Impairment (“OTTI”)
We conduct a quarterly review and evaluation of the securities portfolio to determine if the value of any security has declined below its cost or amortized cost, and whether such decline is other-than-temporary. If a determination is made that a debt security is other-than-temporarily impaired, the Company will estimate the amount of the unrealized loss that is attributable to credit and all other non-credit related factors. The credit related component will be recognized as an other-than-temporary impairment charge in non-interest income. The non-credit related component will be recorded as an adjustment to accumulated other comprehensive income (loss), net of tax.
With the assistance of a valuation specialist, we evaluate the credit and performance of each issuer underlying our pooled TruPS. Cash flows for each security are forecasted using assumptions for defaults, recoveries, pre-payments and amortization. At September 30, 2019 and 2018, management deemed that the present value of projected cash flows for each security was greater than the book value and did not recognize any additional OTTI charges for the three and nine months ended September 30, 2019 and 2018. At September 30, 2019, non-credit related OTTI recorded on the previously impaired TruPS was $15.0 million ($10.8 million after-tax). This amount is being accreted into income over the estimated remaining life of the securities.
The following table presents the changes in the credit loss component of the impairment loss of debt securities that the Company has written down for such loss as an other-than-temporary impairment recognized in earnings.

 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Balance of credit related OTTI, beginning of period
$
78,831

 
83,923

 
80,595

 
85,768

Additions:
 
 
 
 
 
 
 
Initial credit impairments
—

 
—

 
—

 
—

Subsequent credit impairments
—

 
—

 
—

 
—

Reductions:
 
 
 
 
 
 
 
Accretion of credit loss impairment due to an increase in expected cash flows
(883
)
 
(923
)
 
(2,647
)
 
(2,768
)
Reductions for securities sold or paid off during the period
—

 
—

 
—

 
—

Balance of credit related OTTI, end of period
$
77,948

 
83,000

 
77,948

 
83,000



The credit loss component of the impairment loss represents the difference between the present value of expected future cash flows and the amortized cost basis of the securities prior to considering credit losses. The beginning balance represents the credit loss component for debt securities for which OTTI occurred prior to the period presented. If OTTI is recognized in earnings for credit impaired debt securities, they would be presented as additions based upon whether the current period is the first time a debt security was credit impaired (initial credit impairment) or is not the first time a debt security was credit impaired (subsequent credit impairments). The credit loss component is reduced if the Company sells, intends to sell or believes it will be required to sell previously credit impaired debt securities. Additionally, the credit loss component is reduced if (i) the Company receives cash flows in excess of what it expected to receive over the remaining life of the credit impaired debt security, (ii) the security matures or (iii) the security is fully written down.
Realized Gains and Losses
Gains and losses on the sale of all securities are determined using the specific identification method. For the three months ended September 30, 2019, there were no sales of equity or debt securities. For the nine months ended September 30, 2019, the Company received proceeds of $399.4 million on securities sold from the debt securities available-for-sale portfolio resulting in a loss of $5.7 million recognized in non-interest income. Proceeds from the sale were reinvested in higher yielding debt securities. There were no sales of equity securities or debt securities held-to-maturity for the nine months ended September 30, 2019. The Company recognized unrealized gains on equity securities of $30,000 and $165,000, respectively, for the three and nine months ended September 30, 2019.
For the three and nine months ended September 30, 2018, there were no sales of equity or debt securities; however, in the second quarter of 2018, the Company received proceeds of $1.5 million from the payoff of a TruP security which resulted in a gain of $1.1 million. The Company recognized net unrealized gains on equity securities of $97,000 and $104,000, respectively, for the three and nine months ended September 30, 2018.
v3.19.3
Leases
 9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Leases Leases
The Company adopted ASU 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842 on January 1, 2019.  Topic 842 requires lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. We have operating leases for corporate offices, branch locations and certain equipment. Our leases have remaining lease terms of up to 17 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. Certain of our operating leases for branch locations contain variable lease payments related to consumer price index adjustments.
The following table presents the balance sheet information related to our leases:
 
September 30, 2019
 
(Dollars in thousands)
Operating lease right-of-use assets
$
179,632

Operating lease liabilities
189,927

Weighted average remaining lease term
9.9 years

Weighted average discount rate
2.74
%

In determining the present value of lease payments, the discount rate used for each individual lease is the rate implicit in the lease, unless that rate cannot be readily determined, in which case the Company is required to use its incremental borrowing rate based on the information available at commencement date. For leases that existed at adoption, the Company used the remaining lease term as of January 1, 2019. For its incremental borrowing rate, the Company uses the borrowing rates offered to the Company by the Federal Home Loan Bank, which reflects the rates a lender would charge the Company to obtain a collateralized loan.
The following table presents the components of total lease cost recognized in the Consolidated Statements of Income:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2019
 
(In thousands)
Included in office occupancy and equipment expense:
 
 
 
Operating lease cost
$
6,320

 
18,963

Short-term lease cost
74

 
229

Variable lease cost
—

 
(1
)
Included in other income:
 
 
 
Sublease income
67

 
201

The following table presents supplemental cash flow information related to leases:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2019
 
(In thousands)
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases
$
6,173

 
18,470

Operating lease liabilities arising from obtaining right-of-use assets (non-cash):
Operating leases
577

 
2,358


Future minimum operating lease payments and reconciliation to operating lease liabilities at September 30, 2019:
 
September 30, 2019
 
(In thousands)
Remainder of 2019
$
6,026

2020
24,067

2021
23,817

2022
22,077

2023
21,032

Thereafter
121,539

Total lease payments
218,558

Less: Imputed interest
(28,631
)
Total operating lease liabilities
$
189,927



At December 31, 2018, the Company’s minimum operating lease payments for non-cancelable operating leases were $24.4 million, $23.8 million, $23.4 million, $21.7 million and $20.7 million for 2019 through 2023, respectively, and $119.9 million in the aggregate for all years thereafter.
v3.19.3
Basis of Presentation
 9 Months Ended
Sep. 30, 2019
Accounting Policies [Abstract]  
Basis of Presentation Basis of Presentation
The consolidated financial statements are comprised of the accounts of Investors Bancorp, Inc. and its wholly owned subsidiary, Investors Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries (collectively, the “Company”). In the opinion of management, all the adjustments (consisting of normal and recurring adjustments) necessary for the fair presentation of the consolidated financial condition and the consolidated results of operations for the unaudited periods presented have been included. The results of operations and other data presented for the three and nine months ended September 30, 2019 are not necessarily indicative of the results of operations that may be expected for subsequent periods or the full year results.
Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for the preparation of the Form 10-Q. The consolidated financial statements presented should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s December 31, 2018 Annual Report on Form 10-K. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications.
v3.19.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2019
Nov. 08, 2019
Cover page.    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2019  
Document Transition Report false  
Entity File Number 001-36441  
Entity Registrant Name Investors Bancorp, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 46-4702118  
Entity Address, Address Line One 101 JFK Parkway,  
Entity Address, City or Town Short Hills,  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07078  
City Area Code 973  
Local Phone Number 924-5100  
Title of 12(b) Security Common  
Trading Symbol ISBC  
Security Exchange Name NASDAQ  
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  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   274,753,702
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Entity Central Index Key 0001594012  
v3.19.3
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Statement of Comprehensive Income [Abstract]        
Net income $ 51,972 $ 54,224 $ 146,754 $ 169,246
Other comprehensive loss, net of tax:        
Change in funded status of retirement obligations 13 102 40 308
Unrealized gains (losses) on debt securities available-for-sale 6,798 (7,310) 39,605 (36,330)
Accretion of loss on debt securities reclassified to held to maturity 41 149 472 475
Reclassification adjustment for security losses included in net income 0 0 4,221 0
Other-than-temporary impairment accretion on debt securities 228 216 589 647
Net (losses) gains on derivatives (9,564) 5,266 (54,253) 23,728
Total other comprehensive loss (2,484) (1,577) (9,326) (11,172)
Total comprehensive income $ 49,488 $ 52,647 $ 137,428 $ 158,074
v3.19.3
Equity Incentive Plan (Tables)
 9 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement [Abstract]  
Schedule of share-based payment award, stock options, valuation assumptions
The fair value of stock options granted as part of the 2015 Plan was estimated utilizing the Black-Scholes option pricing model using the following assumptions for the periods presented below:
 
Nine Months Ended September 30,
 
2019
 
2018
Weighted average expected life (in years)
4.83

 
6.50

Weighted average risk-free rate of return
1.86
%
 
2.80
%
Weighted average volatility
19.92
%
 
17.71
%
Dividend yield
3.96
%
 
2.78
%
Weighted average fair value of options granted
$
0.89

 
$
1.94

Total stock options granted
995,216

 
50,000
Schedule of share based compensation expense
The following table presents the share based compensation expense for the three and nine months ended September 30, 2019 and 2018:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Stock option expense
$
2,285

 
1,326

 
4,937

 
4,226

Restricted stock expense
4,026

 
3,338

 
10,933

 
9,488

Total share based compensation expense
$
6,311

 
4,664

 
15,870

 
13,714
Schedule of Company’s stock option activity and related information
The following is a summary of the Company’s stock option activity and related information for the nine months ended September 30, 2019:
 
 
Number of
Stock
Options
 
Weighted Average
Exercise Price
 
Weighted Average
Remaining
Contractual
Life (in years)
 
Aggregate
Intrinsic Value
Outstanding at December 31, 2018
 
10,216,047

 
$
12.43

 
6.5
 
$
522

Granted(1)
 
995,216

 
12.53

 
5.9
 
 
Exercised
 
(111,802
)
 
7.28

 
3.3
 
 
Forfeited(1)
 
(5,169,858
)
 
12.53

 
 
 
 
Expired
 
(174,000
)
 
12.43

 
 
 
 
Outstanding at September 30, 2019
 
5,755,603

 
12.46

 
5.8
 
287

Exercisable at September 30, 2019
 
3,038,063

 
$
12.40

 
5.7
 
$
286


(1) Reflects the impact of the shareholder litigation settlement as noted below.    
Schedule of status of the Company’s restricted shares
The following is a summary of the status of the Company’s restricted shares as of September 30, 2019 and changes therein during the nine months ended:
 
 
Number of Shares Awarded
 
Weighted Average Grant Date Fair Value
Outstanding at December 31, 2018
 
3,477,747

 
$
12.69

Granted(1)
 
2,345,919

 
12.42

Vested
 
(1,011,670
)
 
12.67

Forfeited(1)(2)
 
(1,912,400
)
 
12.55

Outstanding and non vested at September 30, 2019
 
2,899,596

 
$
12.58


(1) Reflects the impact of the shareholder litigation settlement as noted below.    
(2) Excludes 19,138 shares forfeited in connection with the shareholder litigation settlement which had vested prior to December 31, 2018.
v3.19.3
Loans Receivable, Net (Tables)
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Schedule of loan portfolio
The detail of the loan portfolio as of September 30, 2019 and December 31, 2018 was as follows:

 
September 30,
2019
 
December 31,
2018
 
(In thousands)
Multi-family loans
$
7,995,095

 
8,165,187

Commercial real estate loans
4,768,370

 
4,783,095

Commercial and industrial loans
2,681,577

 
2,389,756

Construction loans
289,857

 
227,015

Total commercial loans
15,734,899

 
15,565,053

Residential mortgage loans
5,306,912

 
5,350,504

Consumer and other loans
700,267

 
707,746

Total loans excluding PCI loans
21,742,078

 
21,623,303

PCI loans
4,132

 
4,461

Deferred fees, premiums and other, net (1)
(1,991
)
 
(13,811
)
Allowance for loan losses
(227,985
)
 
(235,817
)
Net loans
$
21,516,234

 
21,378,136


(1) Included in deferred fees and premiums are accretable purchase accounting adjustments in connection with loans acquired and an adjustment to the carrying amount of the residential loans hedged.
Summary of analysis of the allowance for loan losses
An analysis of the allowance for loan losses is summarized as follows:

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Balance at beginning of the period
$
231,937

 
230,838

 
235,817

 
230,969

Loans charged off
(3,354
)
 
(6,014
)
 
(10,980
)
 
(20,157
)
Recoveries
1,902

 
3,994

 
5,648

 
11,506

Net charge-offs
(1,452
)
 
(2,020
)
 
(5,332
)
 
(8,651
)
Provision for loan losses
(2,500
)
 
2,000

 
(2,500
)
 
8,500

Balance at end of the period
$
227,985

 
230,818

 
227,985

 
230,818
Summary of allowance for loan losses and the recorded investment in loans by portfolio segment
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2019 and December 31, 2018:

 
September 30, 2019
 
Multi-
Family Loans
 
Commercial
Real Estate Loans
 
Commercial
and Industrial
Loans
 
Construction
Loans
 
Residential
Mortgage Loans
 
Consumer
and Other
Loans
 
Unallocated
 
Total
 
(Dollars in thousands)
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance-December 31, 2018
$
82,876

 
48,449

 
71,084

 
7,486

 
20,776

 
3,102

 
2,044

 
235,817

Charge-offs
(2,854
)
 
(121
)
 
(5,183
)
 
—

 
(1,905
)
 
(917
)
 
—

 
(10,980
)
Recoveries
1,244

 
2,137

 
1,002

 
—

 
1,186

 
79

 
—

 
5,648

Provision
(5,490
)
 
(2,323
)
 
4,542

 
1,476

 
(834
)
 
215

 
(86
)
 
(2,500
)
Ending balance-September 30, 2019
$
75,776

 
48,142

 
71,445

 
8,962

 
19,223

 
2,479

 
1,958

 
227,985

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
—

 
—

 
—

 
—

 
1,897

 
76

 
—

 
1,973

Collectively evaluated for impairment
75,776

 
48,142

 
71,445

 
8,962

 
17,326

 
2,403

 
1,958

 
226,012

Loans acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance at September 30, 2019
$
75,776

 
48,142

 
71,445

 
8,962

 
19,223

 
2,479

 
1,958

 
227,985

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
17,429

 
8,140

 
10,882

 
—

 
26,939

 
906

 
—

 
64,296

Collectively evaluated for impairment
7,977,666

 
4,760,230

 
2,670,695

 
289,857

 
5,279,973

 
699,361

 
—

 
21,677,782

Loans acquired with deteriorated credit quality
—

 
3,558

 
—

 
—

 
500

 
74

 
—

 
4,132

Balance at September 30, 2019
$
7,995,095

 
4,771,928

 
2,681,577

 
289,857

 
5,307,412

 
700,341

 
—

 
21,746,210

 
December 31, 2018
 
Multi-
Family Loans
 
Commercial
Real Estate Loans
 
Commercial
and Industrial
Loans
 
Construction
Loans
 
Residential
Mortgage Loans
 
Consumer
and Other
Loans
 
Unallocated
 
Total
 
(Dollars in thousands)
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance-December 31, 2017
$
81,469

 
56,137

 
54,563

 
11,609

 
21,835

 
3,099

 
2,257

 
230,969

Charge-offs
(2,603
)
 
(7,200
)
 
(7,078
)
 
—

 
(5,246
)
 
(1,963
)
 
—

 
(24,090
)
Recoveries
17

 
5,213

 
9,478

 
—

 
2,193

 
37

 
—

 
16,938

Provision
3,993

 
(5,701
)
 
14,121

 
(4,123
)
 
1,994

 
1,929

 
(213
)
 
12,000

Ending balance-December 31, 2018
$
82,876

 
48,449

 
71,084

 
7,486

 
20,776


3,102

 
2,044

 
235,817

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
—

 
—

 
—

 
—

 
2,082

 
72

 
—

 
2,154

Collectively evaluated for impairment
82,876

 
48,449

 
71,084

 
7,486

 
18,694

 
3,030

 
2,044

 
233,663

Loans acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Balance at December 31, 2018
$
82,876

 
48,449

 
71,084

 
7,486

 
20,776


3,102

 
2,044

 
235,817

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
32,046

 
6,623

 
19,624

 
—

 
27,884

 
570

 
—

 
86,747

Collectively evaluated for impairment
8,133,141

 
4,776,472

 
2,370,132

 
227,015

 
5,322,620

 
707,176

 
—

 
21,536,556

Loans acquired with deteriorated credit quality
—

 
3,730

 
—

 
—

 
611

 
120

 
—

 
4,461

Balance at December 31, 2018
$
8,165,187

 
4,786,825

 
2,389,756

 
227,015

 
5,351,115


707,866

 
—

 
21,627,764
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment
The following tables present the risk category of loans as of September 30, 2019 and December 31, 2018 by class of loans, excluding PCI loans:

 
September 30, 2019
 
Pass
 
Watch
 
Special
Mention
 
Substandard
 
Doubtful
 
Loss
 
Total
 
(In thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
6,553,284

 
962,053

 
146,866

 
332,892

 
—

 
—

 
7,995,095

Commercial real estate
4,102,142

 
403,818

 
54,799

 
207,611

 
—

 
—

 
4,768,370

Commercial and industrial
1,851,024

 
638,736

 
48,164

 
143,653

 
—

 
—

 
2,681,577

Construction
190,412

 
80,735

 
399

 
18,311

 
—

 
—

 
289,857

Total commercial loans
12,696,862

 
2,085,342

 
250,228

 
702,467

 
—

 
—

 
15,734,899

Residential mortgage
5,232,790

 
12,437

 
10,192

 
51,493

 
—

 
—

 
5,306,912

Consumer and other
691,421

 
5,280

 
1,524

 
2,042

 
—

 
—

 
700,267

Total
$
18,621,073

 
2,103,059

 
261,944

 
756,002

 
—

 
—

 
21,742,078


 
December 31, 2018
 
Pass
 
Watch
 
Special
Mention
 
Substandard
 
Doubtful
 
Loss
 
Total
 
(In thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
6,462,056

 
1,061,168

 
313,498

 
328,465

 
—

 
—

 
8,165,187

Commercial real estate
3,910,282

 
552,080

 
162,488

 
158,245

 
—

 
—

 
4,783,095

Commercial and industrial
1,647,130

 
571,620

 
53,861

 
117,145

 
—

 
—

 
2,389,756

Construction
163,503

 
35,774

 
9,200

 
18,538

 
—

 
—

 
227,015

Total commercial loans
12,182,971

 
2,220,642

 
539,047

 
622,393

 
—

 
—

 
15,565,053

Residential mortgage
5,268,234

 
12,082

 
7,712

 
62,476

 
—

 
—

 
5,350,504

Consumer and other
694,432

 
8,443

 
1,650

 
3,221

 
—

 
—

 
707,746

Total
$
18,145,637

 
2,241,167

 
548,409

 
688,090

 
—

 
—

 
21,623,303
Payment status of the recorded investment in past due loans
The following tables present the payment status of the recorded investment in past due loans as of September 30, 2019 and December 31, 2018 by class of loans, excluding PCI loans:
 
 
September 30, 2019
 
30-59 Days
 
60-89 Days
 
Greater
than 90
Days
 
Total Past
Due
 
Current
 
Total
Loans
Receivable
 
(In thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
16,006

 
3,517

 
19,507

 
39,030

 
7,956,065

 
7,995,095

Commercial real estate
17,955

 
4,385

 
6,158

 
28,498

 
4,739,872

 
4,768,370

Commercial and industrial
5,927

 
4,694

 
5,350

 
15,971

 
2,665,606

 
2,681,577

Construction
—

 
—

 
—

 
—

 
289,857

 
289,857

Total commercial loans
39,888

 
12,596

 
31,015

 
83,499

 
15,651,400

 
15,734,899

Residential mortgage
14,029

 
10,644

 
28,746

 
53,419

 
5,253,493

 
5,306,912

Consumer and other
5,282

 
1,523

 
1,233

 
8,038

 
692,229

 
700,267

Total
$
59,199

 
24,763

 
60,994

 
144,956

 
21,597,122

 
21,742,078

 
 
December 31, 2018
 
30-59 Days
 
60-89 Days
 
Greater
than 90
Days
 
Total Past
Due
 
Current
 
Total
Loans
Receivable
 
(In thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
23,098

 
2,572

 
33,683

 
59,353

 
8,105,834

 
8,165,187

Commercial real estate
5,491

 
3,511

 
2,415

 
11,417

 
4,771,678

 
4,783,095

Commercial and industrial
2,988

 
867

 
4,560

 
8,415

 
2,381,341

 
2,389,756

Construction
9,200

 
—

 
227

 
9,427

 
217,588

 
227,015

Total commercial loans
40,777

 
6,950

 
40,885

 
88,612

 
15,476,441

 
15,565,053

Residential mortgage
13,811

 
7,712

 
39,255

 
60,778

 
5,289,726

 
5,350,504

Consumer and other
8,524

 
1,650

 
2,830

 
13,004

 
694,742

 
707,746

Total
$
63,112

 
16,312

 
82,970

 
162,394

 
21,460,909

 
21,623,303
Non-accrual loans status
The following table presents non-accrual loans, excluding PCI loans, at the dates indicated:
 
 
September 30, 2019
 
December 31, 2018
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
Non-accrual:
 
Multi-family
6

 
$
19,564

 
15

 
$
33,940

Commercial real estate
30

 
12,310

 
35

 
12,391

Commercial and industrial
16

 
12,024

 
14

 
19,394

Construction
—

 
—

 
1

 
227

Total commercial loans
52

 
43,898

 
65

 
65,952

Residential mortgage and consumer
261

 
48,171

 
320

 
58,961

Total non-accrual loans
313

 
$
92,069

 
385

 
$
124,913


Included in the non-accrual table above are TDR loans whose payment status is current but the Company has classified as non-accrual as the loans have not maintained their current payment status for six consecutive months under the restructured terms and therefore do not meet the criteria for accrual status. As of September 30, 2019 and December 31, 2018, these loans are comprised of the following:
 
September 30, 2019
 
December 31, 2018
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
TDR with payment status current classified as non-accrual:
 
 
 
 
 
 
 
Commercial real estate
1

 
$
65

 
2

 
$
2,817

Commercial and industrial
—

 
—

 
2

 
9,762

Total commercial loans
1

 
65

 
4

 
12,579

Residential mortgage and consumer
31

 
5,059

 
26

 
4,006

Total TDR with payment status current classified as non-accrual
32

 
$
5,124

 
30

 
$
16,585

The following table presents TDR loans which were also 30-89 days delinquent and classified as non-accrual at the dates indicated. Not included in the table is a commercial and industrial TDR loan in the amount of $954,000 which was 30-89 days delinquent at September 30, 2019, classified as accruing while the Company underwrites an extension of the borrower’s credit facilities.
 
September 30, 2019
 
December 31, 2018
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
TDR 30-89 days delinquent classified as non-accrual:
 
 
 
 
 
 
 
Residential mortgage and consumer
12

 
$
2,045

 
11

 
$
1,810

Total TDR 30-89 days delinquent classified as non-accrual
12

 
$
2,045

 
11

 
$
1,810
Table present loans individually evaluated for impairment by portfolio segment
The following tables present loans individually evaluated for impairment by portfolio segment as of September 30, 2019 and December 31, 2018:

 
September 30, 2019
 
Recorded
Investment
 
Unpaid Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
(In thousands)
With no related allowance:
 
 
 
 
 
 
 
 
 
Multi-family
$
17,429

 
18,801

 
—

 
18,860

 
21

Commercial real estate
8,140

 
11,170

 
—

 
8,323

 
240

Commercial and industrial
10,882

 
18,225

 
—

 
12,097

 
259

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
36,451

 
48,196

 
—

 
39,280

 
520

Residential mortgage and consumer
12,869

 
16,992

 
—

 
12,904

 
174

With an allowance recorded:
 
 
 
 
 
 
 
 
 
Multi-family
—

 
—

 
—

 
—

 
—

Commercial real estate
—

 
—

 
—

 
—

 
—

Commercial and industrial
—

 
—

 
—

 
—

 
—

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
—

 
—

 
—

 
—

 
—

Residential mortgage and consumer
14,976

 
15,684

 
1,973

 
14,989

 
137

Total:
 
 
 
 
 
 
 
 
 
Multi-family
17,429

 
18,801

 
—

 
18,860

 
21

Commercial real estate
8,140

 
11,170

 
—

 
8,323

 
240

Commercial and industrial
10,882

 
18,225

 
—

 
12,097

 
259

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
36,451

 
48,196

 
—

 
39,280

 
520

Residential mortgage and consumer
27,845

 
32,676

 
1,973

 
27,893

 
311

Total impaired loans
$
64,296

 
80,872

 
1,973

 
67,173

 
831

 
December 31, 2018
 
Recorded
Investment
 
Unpaid Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
(In thousands)
With no related allowance:
 
 
 
 
 
 
 
 
 
Multi-family
$
32,046

 
34,199

 
—

 
33,656

 
146

Commercial real estate
6,623

 
11,896

 
—

 
6,611

 
79

Commercial and industrial
19,624

 
26,323

 
—

 
20,218

 
232

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
58,293

 
72,418

 
—

 
60,485

 
457

Residential mortgage and consumer
12,626

 
17,130

 
—

 
11,907

 
167

With an allowance recorded:
 
 
 
 
 
 
 
 
 
Multi-family
—

 
—

 
—

 
—

 
—

Commercial real estate
—

 
—

 
—

 
—

 
—

Commercial and industrial
—

 
—

 
—

 
—

 
—

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
—

 
—

 
—

 
—

 
—

Residential mortgage and consumer
15,828

 
16,498

 
2,154

 
15,627

 
280

Total:
 
 
 
 
 
 
 
 
 
Multi-family
32,046

 
34,199

 
—

 
33,656

 
146

Commercial real estate
6,623

 
11,896

 
—

 
6,611

 
79

Commercial and industrial
19,624

 
26,323

 
—

 
20,218

 
232

Construction
—

 
—

 
—

 
—

 
—

Total commercial loans
58,293

 
72,418

 
—

 
60,485

 
457

Residential mortgage and consumer
28,454

 
33,628

 
2,154

 
27,534

 
447

Total impaired loans
$
86,747

 
106,046

 
2,154

 
88,019

 
904
Troubled debt restructured loans
The following tables present the total TDR loans at September 30, 2019 and December 31, 2018. There were five residential loans that were previously designated as PCI classified as TDRs for the periods ended September 30, 2019 and December 31, 2018.
 
 
September 30, 2019
 
Accrual
 
Non-accrual
 
Total
 
# of loans
 
Amount
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
—

 
$
—

 
3

 
$
2,548

 
3

 
$
2,548

Commercial and industrial
3

 
1,669

 
2

 
5,194

 
5

 
6,863

Total commercial loans
3

 
1,669

 
5

 
7,742

 
8

 
9,411

Residential mortgage and consumer
55

 
10,769

 
81

 
17,078

 
136

 
27,847

Total
58

 
$
12,438

 
86

 
$
24,820

 
144

 
$
37,258



 
December 31, 2018
 
Accrual
 
Non-accrual
 
Total
 
# of loans
 
Amount
 
# of loans
 
Amount
 
# of loans
 
Amount
 
(Dollars in thousands)
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
Multi-family
—

 
$
—

 
1

 
$
892

 
1

 
$
892

Commercial real estate
—

 
—

 
3

 
2,859

 
3

 
2,859

Commercial and industrial
2

 
2,070

 
4

 
13,479

 
6

 
15,549

Total commercial loans
2

 
2,070

 
8

 
17,230

 
10

 
19,300

Residential mortgage and consumer
52

 
11,550

 
79

 
16,908

 
131

 
28,458

Total
54

 
$
13,620

 
87

 
$
34,138

 
141

 
$
47,758
Schedule of troubled debt restructuring
The following tables present information about TDRs that occurred during the three and nine months ended September 30, 2019 and 2018:

 
Three Months Ended September 30,
 
2019
 
2018
 
Number of
Loans
 
Pre-modification
Recorded
Investment
 
Post-
modification
Recorded
Investment
 
Number of
Loans
 
Pre-modification
Recorded
Investment
 
Post-
modification
Recorded
Investment
 
(Dollars in thousands)
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
$
96

 
$
96

 
—

 
$
—

 
$
—

Commercial and industrial
1

 
$
270

 
$
270

 
1

 
$
3,711

 
$
3,711

Residential mortgage and consumer
4

 
453

 
453

 
3

 
1,215

 
1,215


    
 
Nine Months Ended September 30,
 
2019
 
2018
 
Number of
Loans
 
Pre-modification
Recorded
Investment
 
Post-
modification
Recorded
Investment
 
Number of
Loans
 
Pre-modification
Recorded
Investment
 
Post-
modification
Recorded
Investment
 
(Dollars in thousands)
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
$
96

 
$
96

 
2

 
$
788

 
$
616

Commercial and industrial
1

 
270

 
270

 
4

 
13,682

 
13,682

Residential mortgage and consumer
14

 
2,850

 
2,850

 
15

 
2,715

 
2,715
Schedule of troubled debt restructuring, interest yield
The following tables present information about pre and post modification interest yield for TDRs which occurred during the three and nine months ended September 30, 2019 and 2018:
 
Three Months Ended September 30,
 
2019
 
2018
 
Number of
Loans
 
Pre-modification
Interest Yield
 
Post-
modification
Interest Yield
 
Number of
Loans
 
Pre-modification
Interest Yield
 
Post-
modification
Interest Yield
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
5.75
%
 
5.75
%
 
—

 
—
%
 
—
%
Commercial and industrial
1

 
6.25
%
 
6.25
%
 
1

 
5.75
%
 
5.75
%
Residential mortgage and consumer
4

 
4.00
%
 
3.82
%
 
3

 
4.37
%
 
4.45
%

 
Nine Months Ended September 30,
 
2019
 
2018
 
Number of
Loans
 
Pre-modification
Interest Yield
 
Post-
modification
Interest Yield
 
Number of
Loans
 
Pre-modification
Interest Yield
 
Post-
modification
Interest Yield
Troubled Debt Restructurings:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
5.75
%
 
5.75
%
 
2

 
4.68
%
 
4.68
%
Commercial and industrial
1

 
6.25
%
 
6.25
%
 
4

 
5.94
%
 
5.94
%
Residential mortgage and consumer
14

 
5.07
%
 
4.96
%
 
15

 
4.60
%
 
3.78
%
v3.19.3
Stockholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2019
Stockholders' Equity Attributable to Parent [Abstract]  
Schedule of Stockholders Equity

 The changes in the components of stockholders’ equity for the three months ended September 30, 2019 and 2018 are as follows:
 
Common
stock
 
Additional
paid-in
capital
 
Retained
earnings
 
Treasury
stock
 
Unallocated
common
stock held
by ESOP
 
Accumulated
other
comprehensive
loss
 
Total
stockholders’
equity
 
(In thousands)
Balance at June 30, 2018
$
3,591

 
2,794,507

 
1,145,129

 
(729,944
)
 
(82,760
)
 
(39,540
)
 
3,090,983

Net income
—

 
—

 
54,224

 
—

 
—

 
—

 
54,224

Other comprehensive loss, net of tax
—

 
—

 
—

 
—

 
—

 
(1,577
)
 
(1,577
)
Purchase of treasury stock (6,891,729 shares)
—

 
—

 
—

 
(87,983
)
 
—

 
—

 
(87,983
)
Treasury stock allocated to restricted stock plan (46,876 shares)
—

 
(594
)
 
22

 
572

 
—

 
—

 
—

Compensation cost for stock options and restricted stock
—

 
4,665

 
—

 
—

 
—

 
—

 
4,665

Exercise of stock options
—

 
(23
)
 
—

 
126

 
—

 
—

 
103

Restricted stock forfeitures (82,946 shares)
—

 
1,040

 
(60
)
 
(980
)
 
—

 
—

 
—

Cash dividend paid ($0.09 per common share)
—

 
—

 
(26,700
)
 
—

 
—

 
—

 
(26,700
)
ESOP shares allocated or committed to be released
—

 
757

 
—

 
—

 
749

 
—

 
1,506

Balance at September 30, 2018
$
3,591

 
2,800,352

 
1,172,615

 
(818,209
)
 
(82,011
)
 
(41,117
)
 
3,035,221

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2019
$
3,591

 
2,809,851

 
1,206,873

 
(995,265
)
 
(79,764
)
 
(18,411
)
 
2,926,875

Net income
—

 
—

 
51,972

 
—

 
—

 
—

 
51,972

Other comprehensive loss, net of tax
—

 
—

 
—

 
—

 
—

 
(2,484
)
 
(2,484
)
Purchase of treasury stock (2,004,717 shares)
—

 
—

 
—

 
(22,486
)
 
—

 
—

 
(22,486
)
Treasury stock allocated to restricted stock plan (1,687,500 shares)
—

 
(21,129
)
 
101

 
21,028

 
—

 
—

 
—

Compensation cost for stock options and restricted stock
—

 
6,309

 
—

 
—

 
—

 
—

 
6,309

Exercise of stock options
—

 
(287
)
 
—

 
441

 
—

 
—

 
154

Restricted stock forfeitures (1,782,205 shares)
—

 
22,348

 
(1,354
)
 
(20,994
)
 
—

 
—

 
—

Cash dividend paid ($0.11 per common share)
—

 
—

 
(30,298
)
 
—

 
—

 
—

 
(30,298
)
ESOP shares allocated or committed to be released
—

 
576

 
—

 
—

 
749

 
—

 
1,325

Balance at September 30, 2019
$
3,591

 
2,817,668

 
1,227,294

 
(1,017,276
)
 
(79,015
)
 
(20,895
)
 
2,931,367
v3.19.3
Securities (Tables)
 9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Schedule of disaggregated net gains and losses on equity securities
The following table presents the disaggregated net gains on equity securities reported in the Consolidated Statements of Income:
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Net gains recognized on equity securities
$
30

 
97

 
$
165

 
104

Less: Net gains recognized on equity securities sold
—

 
—

 
—

 
—

Unrealized gains recognized on equity securities
$
30

 
97

 
$
165

 
$
104
Summary of securities
The following tables present the carrying value, gross unrealized gains and losses and estimated fair value for available-for-sale debt securities and the amortized cost, net unrealized losses, carrying value, gross unrecognized gains and losses and estimated fair value for held-to-maturity debt securities as of the dates indicated. During the second quarter of 2019, the Company early adopted ASU 2019-04 and reclassified $393.1 million of debt securities held-to-maturity to debt securities available-for-sale. See Note 17, Recent Accounting Pronouncements, for further details regarding the adoption of ASU 2019-04.
 
At September 30, 2019
 
Carrying value
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Estimated
fair value
 
(In thousands)
Available-for-sale:
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
1,170,764

 
21,250

 
492

 
1,191,522

Federal National Mortgage Association
1,131,545

 
20,351

 
174

 
1,151,722

Government National Mortgage Association
295,831

 
4,949

 
—

 
300,780

Total debt securities available-for-sale
$
2,598,140

 
46,550

 
666

 
2,644,024

 
At September 30, 2019
 
Amortized cost
 
Net unrealized losses (1)
 
Carrying value
 
Gross
unrecognized
gains (2)
 
Gross
unrecognized
losses (2)
 
Estimated
fair value
 
(In thousands)
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises
$
50,453

 
—

 
50,453

 
722

 
—

 
51,175

Municipal bonds
99,273

 
—

 
99,273

 
4,234

 
—

 
103,507

Corporate and other debt securities
77,062

 
15,035

 
62,027

 
23,130

 
199

 
84,958

Total debt securities held-to-maturity
226,788

 
15,035

 
211,753

 
28,086

 
199

 
239,640

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
273,488

 
154

 
273,334

 
4,670

 
201

 
277,803

Federal National Mortgage Association
559,607

 
436

 
559,171

 
7,930

 
359

 
566,742

Government National Mortgage Association
73,441

 
—

 
73,441

 
1,143

 
—

 
74,584

Total mortgage-backed securities held-to-maturity
906,536

 
590

 
905,946

 
13,743

 
560

 
919,129

Total debt securities held-to-maturity
$
1,133,324

 
15,625

 
1,117,699

 
41,829

 
759

 
1,158,769


(1) Net unrealized losses of held-to-maturity corporate and other debt securities represent the other than temporary charge related to other non-credit factors and is being amortized through accumulated other comprehensive income over the remaining life of the securities. For mortgage-backed securities, it represents the net loss on previously designated available-for sale debt securities transferred to held-to-maturity at fair value and is being amortized through accumulated other comprehensive income over the remaining life of the securities.
(2) Unrecognized gains and losses of held-to-maturity debt securities are not reflected in the financial statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as held-to-maturity; or (ii) the date that an other than temporary impairment charge is recognized on a held-to-maturity security, through the date of the balance sheet.
 
At December 31, 2018
 
Carrying value
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Estimated
fair value
 
(In thousands)
Available-for-sale:
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
988,348

 
6,492

 
8,190

 
986,650

Federal National Mortgage Association
980,546

 
3,560

 
15,550

 
968,556

Government National Mortgage Association
165,211

 
1,745

 
—

 
166,956

Total debt securities available-for-sale
$
2,134,105

 
11,797

 
23,740

 
2,122,162


 
At December 31, 2018
 
Amortized cost
 
Net unrealized losses (1)
 
Carrying
value
 
Gross
unrecognized
gains (2)
 
Gross
unrecognized
losses (2)
 
Estimated
fair value
 
(In thousands)
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises
$
41,258

 
—

 
41,258

 
—

 
1,236

 
40,022

Municipal bonds
25,513

 
—

 
25,513

 
942

 
—

 
26,455

Corporate and other debt securities
66,295

 
15,854

 
50,441

 
36,592

 
—

 
87,033

Total debt securities held-to-maturity
133,066

 
15,854

 
117,212

 
37,534

 
1,236

 
153,510

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
402,231

 
595

 
401,636

 
112

 
9,413

 
392,335

Federal National Mortgage Association
955,237

 
689

 
954,548

 
535

 
22,687

 
932,396

Government National Mortgage Association
81,741

 
—

 
81,741

 
—

 
1,418

 
80,323

Total mortgage-backed securities held-to-maturity
1,439,209

 
1,284

 
1,437,925

 
647

 
33,518

 
1,405,054

Total debt securities held-to-maturity
$
1,572,275

 
17,138

 
1,555,137

 
38,181

 
34,754

 
1,558,564



(1) Net unrealized losses of held-to-maturity corporate and other debt securities represent the other than temporary charge related to other non-credit factors and is being amortized through accumulated other comprehensive income over the remaining life of the securities. For mortgage-backed securities, it represents the net loss on previously designated available-for sale debt securities transferred to held-to-maturity at fair value and is being amortized through accumulated other comprehensive income over the remaining life of the securities.
(2) Unrecognized gains and losses of held-to-maturity debt securities are not reflected in the financial statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as held-to-maturity; or (ii) the date that an other than temporary impairment charge is recognized on a held-to-maturity security, through the date of the balance sheet.
The amortized cost and estimated fair value of debt securities by contract maturity The amortized cost and estimated fair value of debt securities other than mortgage-backed securities at September 30, 2019, by contractual maturity, are shown below. 
 
September 30, 2019
 
Carrying
value
 
Estimated
fair value
 
(In thousands)
Due in one year or less
$
10,129

 
10,129

Due after one year through five years
—

 
—

Due after five years through ten years
45,460

 
47,148

Due after ten years
156,164

 
182,363

Total
$
211,753

 
239,640
Gross unrealized losses on debt securities and the estimated fair value of the related securities, aggregated by investment category
Gross unrealized losses on debt securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2019 and December 31, 2018, were as follows:
 
September 30, 2019
 
Less than 12 months
 
12 months or more
 
Total
 
Estimated
fair value
 
Unrealized
losses
 
Estimated
fair value
 
Unrealized
losses
 
Estimated
fair value
 
Unrealized
losses
 
(In thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 


Federal Home Loan Mortgage Corporation
$
117,655

 
332

 
10,060

 
160

 
127,715

 
492

Federal National Mortgage Association
29,282

 
102

 
37,257

 
72

 
66,539

 
174

Total mortgage-backed securities available-for-sale
146,937

 
434

 
47,317

 
232

 
194,254

 
666

Total debt securities available-for-sale
146,937

 
434

 
47,317

 
232

 
194,254

 
666

Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Corporate and other debt securities
2,766

 
199

 
—

 
—

 
2,766

 
199

Total debt securities held-to-maturity
2,766

 
199

 
—

 
—

 
2,766

 
199

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
9,098

 
28

 
31,254

 
173

 
40,352

 
201

Federal National Mortgage Association
3,132

 
12

 
51,680

 
347

 
54,812

 
359

Total mortgage-backed securities held-to-maturity
12,230

 
40

 
82,934

 
520

 
95,164

 
560

Total debt securities held-to-maturity
14,996

 
239

 
82,934

 
520

 
97,930

 
759

Total
$
161,933

 
673

 
130,251

 
752

 
292,184

 
1,425


 
December 31, 2018
 
Less than 12 months
 
12 months or more
 
Total
 
Estimated
fair value
 
Unrealized
losses
 
Estimated
fair value
 
Unrealized
losses
 
Estimated
fair value
 
Unrealized
losses
 
(In thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
$
97,137

 
994

 
288,916

 
7,196

 
386,053

 
8,190

Federal National Mortgage Association
125,389

 
2,098

 
489,337

 
13,452

 
614,726

 
15,550

Total mortgage-backed securities available-for-sale
222,526

 
3,092

 
778,253

 
20,648

 
1,000,779

 
23,740

Total debt securities available-for-sale
222,526

 
3,092

 
778,253

 
20,648

 
1,000,779

 
23,740

Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Government-sponsored enterprises
—

 
—

 
40,022

 
1,236

 
40,022

 
1,236

Total debt securities held-to-maturity
—

 
—

 
40,022

 
1,236

 
40,022

 
1,236

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Mortgage Corporation
51,045

 
553

 
339,534

 
8,860

 
390,579

 
9,413

Federal National Mortgage Association
214,400

 
2,449

 
663,671

 
20,238

 
878,071

 
22,687

Government National Mortgage Association
35,499

 
492

 
44,824

 
926

 
80,323

 
1,418

Total mortgage-backed securities held-to-maturity
300,944

 
3,494

 
1,048,029

 
30,024

 
1,348,973

 
33,518

Total debt securities held-to-maturity
300,944

 
3,494

 
1,088,051

 
31,260

 
1,388,995

 
34,754

Total
$
523,470

 
6,586

 
1,866,304

 
51,908

 
2,389,774

 
58,494
Changes in the credit loss component of the impairment loss of debt securities
The following table presents the changes in the credit loss component of the impairment loss of debt securities that the Company has written down for such loss as an other-than-temporary impairment recognized in earnings.

 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Balance of credit related OTTI, beginning of period
$
78,831

 
83,923

 
80,595

 
85,768

Additions:
 
 
 
 
 
 
 
Initial credit impairments
—

 
—

 
—

 
—

Subsequent credit impairments
—

 
—

 
—

 
—

Reductions:
 
 
 
 
 
 
 
Accretion of credit loss impairment due to an increase in expected cash flows
(883
)
 
(923
)
 
(2,647
)
 
(2,768
)
Reductions for securities sold or paid off during the period
—

 
—

 
—

 
—

Balance of credit related OTTI, end of period
$
77,948

 
83,000

 
77,948

 
83,000
v3.19.3
Comprehensive Income
 9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Comprehensive Income Comprehensive Income

 The components of comprehensive income, gross and net of tax, are as follows:
 
Three Months Ended September 30,
 
2019
 
2018
 
Gross
 
Tax
 
Net
 
Gross
 
Tax
 
Net
 
(Dollars in thousands)
Net income
$
73,014

 
(21,042
)
 
51,972

 
73,425

 
(19,201
)
 
54,224

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
 
 
Change in funded status of retirement obligations
19

 
(6
)
 
13

 
142

 
(40
)
 
102

Unrealized gains (losses) on debt securities available-for-sale
8,856

 
(2,058
)
 
6,798

 
(9,725
)
 
2,415

 
(7,310
)
Accretion of loss on debt securities reclassified to held-to-maturity from available-for-sale
94

 
(53
)
 
41

 
208

 
(59
)
 
149

Other-than-temporary impairment accretion on debt securities
317

 
(89
)
 
228

 
300

 
(84
)
 
216

Net (losses) gains on derivatives
(13,303
)
 
3,739

 
(9,564
)
 
7,325

 
(2,059
)
 
5,266

Total other comprehensive loss
(4,017
)
 
1,533

 
(2,484
)
 
(1,750
)
 
173

 
(1,577
)
Total comprehensive income
$
68,997

 
(19,509
)
 
49,488

 
71,675

 
(19,028
)
 
52,647


 
Nine Months Ended September 30,
 
2019
 
2018
 
Gross
 
Tax
 
Net
 
Gross
 
Tax
 
Net
 
(Dollars in thousands)
Net income
$
205,822

 
(59,068
)
 
146,754

 
227,629

 
(58,383
)
 
169,246

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
 
 
Change in funded status of retirement obligations
56

 
(16
)
 
40

 
428

 
(120
)
 
308

Unrealized gains (losses) on debt securities available-for-sale
52,137

 
(12,532
)
 
39,605

 
(48,419
)
 
12,089

 
(36,330
)
Accretion of loss on securities reclassified to held-to-maturity from available-for-sale
694

 
(222
)
 
472

 
662

 
(187
)
 
475

Reclassification adjustment for security losses included in net income
5,690

 
(1,469
)
 
4,221

 
—

 
—

 
—

Other-than-temporary impairment accretion on debt securities
819

 
(230
)
 
589

 
900

 
(253
)
 
647

Net (losses) gains on derivatives
(75,466
)
 
21,213

 
(54,253
)
 
33,006

 
(9,278
)
 
23,728

Total other comprehensive loss
(16,070
)
 
6,744

 
(9,326
)
 
(13,423
)
 
2,251

 
(11,172
)
Total comprehensive income
$
189,752

 
(52,324
)
 
137,428

 
214,206

 
(56,132
)
 
158,074



The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the nine months ended September 30, 2019 and 2018:

 
Change in
funded status of
retirement
obligations
 
Accretion of loss on debt securities reclassified to held-to-maturity
 
Unrealized (losses) gains
on debt securities
available-for-sale and gains included in net income
 
Other-than-
temporary
impairment
accretion on  debt
securities
 
Unrealized gains (losses) on derivatives
 
Total
accumulated
other
comprehensive
loss
 
(Dollars in thousands)
Balance - December 31, 2018
$
(3,018
)
 
(921
)
 
(8,884
)
 
(11,397
)
 
12,651

 
(11,569
)
Net change
40

 
472

 
43,826

 
589

 
(54,253
)
 
(9,326
)
Balance - September 30, 2019
$
(2,978
)
 
(449
)
 
34,942

 
(10,808
)
 
(41,602
)
 
(20,895
)
 
 
 
 
 
 
 
 
 
 
 
 
Balance - December 31, 2017
$
(5,640
)
 
(1,520
)
 
(21,184
)
 
(14,482
)
 
13,487

 
(29,339
)
Net change
308

 
475

 
(36,330
)
 
647

 
23,728

 
(11,172
)
Reclassification due to the adoption of ASU No. 2016-01
—

 
—

 
(606
)
 
—

 
—

 
(606
)
Balance - September 30, 2018
$
(5,332
)
 
(1,045
)
 
(58,120
)
 
(13,835
)
 
37,215

 
(41,117
)

The following table presents information about amounts reclassified from accumulated other comprehensive loss to the consolidated statements of income and the affected line item in the statement where net income is presented.

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Reclassification adjustment for losses included in net income
 
 
 
 
 
 
 
Loss on securities, net
$
—

 
—

 
5,690

 
—

Change in funded status of retirement obligations
 
 
 
 
 
 
 
Amortization of net (gain) loss
(2
)
 
129

 
(6
)
 
388

Interest expense
 
 
 
 
 
 
 
Reclassification adjustment for unrealized gains on derivatives
(509
)
 
(822
)
 
(4,327
)
 
(1,059
)
Total before tax
(511
)
 
(693
)
 
1,357

 
(671
)
Income tax benefit (expense)
147

 
181

 
(225
)
 
172

Net of tax
$
(364
)
 
(512
)
 
1,132

 
(499
)
v3.19.3
Recent Accounting Pronouncements
 9 Months Ended
Sep. 30, 2019
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements Recent Accounting Pronouncements
Standard
Description
Required date of adoption
Effect on Consolidated Financial Statements
Standards Adopted in 2019
Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments
This ASU makes clarifications and corrections to the application of the guidance contained in each of the amended topics. Regarding Topic 815, ASU 2019-04 amends guidance pertaining to partial-term fair value hedges of interest rate risk, disclosure of fair value hedge basis adjustments, and scope for not-for-profit entities. For Topic 825, the amendments provide scope clarifications for Subtopics 320-10, Investments-Debt and Equity Securities-Overall, and 321-10, Investments-Equity Securities-Overall, held-to-maturity debt securities fair value disclosures, and remeasurement of equity securities at historical exchange rates. Improvements to Topic 326 include, among others, conforming amendments to Subtopics 310-40, Receivables-Troubled Debt Restructurings by Creditors, and 323-10, Investments-Equity Method and Joint Ventures-Overall, clarification that reinsurance recoverables are within the scope of Subtopic 326-20, Financial Instruments-Credit Losses-Measured at Amortized Cost, and consideration of estimated costs to sell when foreclosure is probable.
January 1, 2020

Early adoption permitted
The Company early adopted ASU 2019-04 on June 13, 2019. Since the Company has already adopted ASUs 2016-01 and 2017-12, the related amendments are effective as of June 13, 2019. As part of the adoption, the Company reclassified $393.1 million of debt securities held-to-maturity to debt securities available-for-sale. The Company did not reclassify debt securities from held-to-maturity to available-for-sale upon adoption of the amendments in ASU 2017-12. Entities that did not reclassify debt securities from held-to-maturity to available-for-sale upon adoption of the amendments in ASU 2017-12 and elect to reclassify debt securities upon adoption of the amendments in this update are required to reflect the reclassification as of the date of adoption of this update. Entities that reclassified debt securities from held to-maturity to available-for-sale upon adoption of the amendments in ASU 2017-12 are not permitted to make any additional reclassifications.
Leases (Topic 842)
The amendment requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date for leases classified as operating leases as well as finance leases. ASU 2018-01 provides an optional practical expedient to not evaluate land easements which were existing or expired before the adoption of Topic 842 that were not accounted for as leases under Topic 840. ASU 2018-10 provides an optional transition method under which comparative periods presented in the financial statements will continue to be in accordance with current Topic 840, Leases, and a practical expedient to not separate non-lease components from the associated lease component. ASU 2018-20 provides an accounting policy election for lessors related to sales and other similar taxes collected from lessees and addresses lessor accounting for variable payments. ASU 2019-01 addresses three issues related to (i) determination of the fair value of the underlying assets by lessors, (ii) presentation of sales-type and direct financing leases in the statement of cash flows and (iii) transition disclosures related to accounting changes and error corrections.
January 1, 2019
Upon adoption, the Company recognized operating lease right-of-use assets and related operating lease liabilities totaling $193.3 million and $200.7 million, respectively. The Company adopted this amendment utilizing a modified retrospective approach and the optional transition method under which we use the effective date as the date of initial application of the amendments. The modified retrospective approach includes practical expedients such that we will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. See Note 9 for expanded disclosures.
Derivatives and Hedging (Topic 815)-Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes
 The amendment permits the use of the Overnight Index Swap (OIS) Rate based on the Secured Overnight Financing Rate (SOFR) as a U.S. benchmark interest rate for hedge accounting purposes.
January 1, 2019
The Company is applying the amendments in this update prospectively for qualifying new or redesignated hedging relationships entered into on or after the effective date.

Standard
Description
Required date of adoption
Effect on Consolidated Financial Statements
Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting
The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees and to apply the guidance therein except for specific guidance on inputs to an option pricing model and the attribution of cost; i.e., the period of time over which share based payment awards vest and the pattern of cost recognition over that period. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide financing to the issuer or awards granted in conjunction with selling goods and services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. Upon adoption, an entity should remeasure liability-classified awards that have not been settled at date of adoption and equity-classified awards for which a measurement date has not been established through a cumulative-effect adjustment to retained earnings as of the first day of the fiscal year of adoption. Upon transition, an entity should measure these nonemployee awards at fair value as of the adoption date but must not remeasure assets that are completed.
January 1, 2019
The Company had applied the guidance of Topic 718 to its accounting for share-based payment awards to its Board of Directors prior to adoption of the amendments, and, therefore, this update did not have an impact on the Company’s Consolidated Financial Statements.
Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities
The amendments in this update require the premium on callable debt securities to be amortized to the earliest call date rather than the maturity date; however, securities held at a discount continue to be amortized to maturity. The amendments apply only to debt securities purchased at a premium that are callable at fixed prices and on preset dates. The amendments more closely align interest income recorded on debt securities held at a premium or discount with the economics of the underlying instrument.
January 1, 2019
The adoption of the amendments did not have an impact on the Company’s Consolidated Financial Statements.

Standard
Description
Required date of adoption
Effect on Consolidated Financial Statements
Standards Not Yet Adopted
Measurement of Credit Losses on Financial Instruments
This ASU changes how entities will report credit losses for financial assets held at amortized cost and available-for-sale debt securities. The amendments replace today’s “incurred loss” approach with a methodology that incorporates macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios based on relevant information about past events, including historical loss experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. The amendments will apply to financial assets such as loans, leases and held-to-maturity investments; and certain off-balance sheet credit exposures. The amendments expand credit quality disclosure requirements. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”, which clarifies the scope of the guidance in the amendments in ASU 2016-13 with respect to operating lease receivables. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments”, which clarifies and corrects certain unintended applications of the guidance contained in each of the amended Topics. Among other amendments, ASU 2019-04 provides measurement alternatives for the allowance on the accrued interest component of amortized cost and clarifies the process to transfer loans or debt securities between measurement categories. The update also provides guidance on the inclusion of expected recoveries in the determination of the allowance, the disclosure of line of credit arrangements in the vintage disclosure table and the effect of extension or renewal options on expected credit losses. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments - Credit Losses (Topic 326): TargetedTransition Relief.” The amendments provide an option to irrevocable elect the fair value option for certain financial assets previously measured at amortized cost. The election does not apply to held-to-maturity securities.
January 1, 2020
The Company will adopt the standard’s provisions as a cumulative-effect adjustment to retained earnings as of January 1, 2020 on a modified retrospective basis. The Company has established a cross departmental working group including Accounting, Finance, Treasury, Credit Risk, Information Technology and Internal Audit. The implementation plan is comprised of multiple items focused on credit models, data management and treasury and accounting considerations. The Company is finalizing model validation as it runs its credit models in parallel and is finalizing its methodology and policy documentation as well as the required disclosures. While the Company is currently unable to reasonably estimate the impact of adopting ASU 2016-13, it is expected that the impact upon adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date.
Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)
This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Specifically, where a cloud computing arrangement includes a license to internal-use software, the software license is accounted for by the customer in accordance with Subtopic 350-40, “Intangibles- Goodwill and Other-Internal-Use Software”.
January 1, 2020

Early adoption permitted
The amendments in this Update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect ASU No. 2018-15 to have a material impact on the Company’s Consolidated Financial Statements.
Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans
The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that no longer are considered cost beneficial, clarifying the specific requirements of disclosures, and adding disclosure requirements identified as relevant.
January 1, 2021

Early adoption permitted
The update is to be applied on a retrospective basis. The Company will evaluate the effect of ASU 2018-14 on disclosures with regard to employee benefit plans but does not expect a material impact on the Company’s Consolidated Financial Statements.

Standard
Description
Required date of adoption
Effect on Consolidated Financial Statements
Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement
The amendments remove the requirement to disclose the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of such transfers and the valuation processes for Level 3 fair value measurements. The ASU modifies the disclosure requirements for investments in certain entities that calculate net asset value and clarify the purpose of the measurement uncertainty disclosure. The ASU adds disclosure requirements about the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.
January 1, 2020

Early adoption permitted to any removed or modified disclosures and delay of adoption of additional disclosures until the effective date
Changes should be applied retrospectively to all periods presented upon the effective date with the exception of the following, which should be applied prospectively: disclosures relating to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the disclosures for uncertainty measurement. The adoption of ASU 2018-13 will not have a material impact on the Company’s Consolidated Financial Statements.
Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
This ASU simplifies subsequent measurement of goodwill by eliminating Step 2 of the impairment test while retaining the option to perform the qualitative assessment for a reporting unit to determine whether the quantitative impairment test is necessary. The ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units.
January 1, 2020

Early adoption permitted for interim or annual goodwill impairment testing dates beginning after January 1, 2017
The update is to be applied prospectively. The Company does not expect ASU No. 2017-04 to have a material impact on the Company’s Consolidated Financial Statements.
v3.19.3
Securities (Narrative) (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Jun. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Jun. 30, 2019
Dec. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Investment [Line Items]                  
Equity securities $ 6,030,000     $ 6,030,000     $ 5,793,000    
Debt securities, available-for-sale 2,644,024,000     2,644,024,000     2,122,162,000    
Reclassification due to the adoption of ASU No. 2016-01                 $ (606,000)
Carrying value of held to maturity security 1,117,699,000     1,117,699,000     1,555,137,000    
Estimated fair value 1,158,769,000     1,158,769,000     1,558,564,000    
Held-to-maturity securities pledged as collateral 905,100,000     905,100,000          
Held-to-maturity securities pledged as collateral, fair value 921,200,000     921,200,000          
Accumulated non credit-related OTTI 15,000,000.0     15,000,000.0          
Accumulated non credit-related OTTI, after-tax 10,800,000     10,800,000          
Proceeds from sale of equity securities 0 $ 0   0 $ 0        
Proceeds from sales of debt securities available for sale       399,435,000 0        
Loss on sale of securities       5,700,000          
Proceeds from sale of held to maturity securities 0 0 $ 1,500,000 0          
Unrealized gains (losses) recognized during the period on equity securities 30,000 97,000   165,000 $ 104,000        
Gain on sale of securities sold   $ 1,100,000              
Corporate and other debt securities                  
Investment [Line Items]                  
Carrying value of held to maturity security 62,027,000     62,027,000     50,441,000    
Estimated fair value $ 84,958,000     84,958,000     87,033,000    
Debt maturities, term (years) 20 years                
Corporate and other debt securities | TruP Security                  
Investment [Line Items]                  
Carrying value of held to maturity security $ 47,000,000.0     47,000,000.0          
Estimated fair value 69,700,000     69,700,000          
Corporate and other debt securities | Non Investment Grade                  
Investment [Line Items]                  
Carrying value of held to maturity security 45,200,000     45,200,000          
Estimated fair value 65,300,000     65,300,000          
Mortgage-backed securities                  
Investment [Line Items]                  
Carrying value of held to maturity security 905,946,000     905,946,000     1,437,925,000    
Estimated fair value $ 919,129,000     $ 919,129,000     $ 1,405,054,000    
Retained earnings                  
Investment [Line Items]                  
Reclassification due to the adoption of ASU No. 2016-01               $ 606,000  
Restatement Adjustment | Accounting Standards Update 2019-04                  
Investment [Line Items]                  
Debt securities, available-for-sale           $ 393,100,000      
Carrying value of held to maturity security           $ (393,100,000)      
v3.19.3
Revenue Recognition (Tables)
 9 Months Ended
Sep. 30, 2019
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Revenue from contracts with customers included in fees and service charges and other income was as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(Dollars in thousands)
Revenue from contracts with customers included in:
 
 
 
 
 
 
 
Fees and service charges
$
4,337

 
3,408

 
11,350

 
9,860

Other income
2,230

 
1,925

 
6,961

 
6,131

Total revenue from contracts with customers
$
6,567

 
5,333

 
18,311

 
15,991
v3.19.3
Securities (Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity) (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Carrying value    
Carrying value $ 1,117,699 $ 1,555,137
Estimated fair value    
Total 1,158,769 $ 1,558,564
Debt Securities Other than Securities Pledged    
Carrying value    
Due in one year or less 10,129  
Due after one year through five years 0  
Due after five years through ten years 45,460  
Due after ten years 156,164  
Carrying value 211,753  
Estimated fair value    
Due in one year or less 10,129  
Due after one year through five years 0  
Due after five years through ten years 47,148  
Due after ten years 182,363  
Total $ 239,640  
v3.19.3
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]    
Loans sold $ 1,610.0 $ 1,620.0
Estimated fair value of servicing asset in intangible assets $ 13.3 $ 14.9
Weighted average discount rate of servicing assets (percentage) 12.05%  
Weighted average constant prepayment rate on mortgages (percentage) 12.06%  
Weighted average life of servicing assets, years 6 years  
Core deposit premiums    
Finite-Lived Intangible Assets [Line Items]    
Useful life, years 10 years  
v3.19.3
Leases (Supplemental Cash Flow Information) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities:    
Operating cash flows from operating leases $ 6,173 $ 18,470
Operating lease liabilities arising from obtaining right-of-use assets (non-cash):    
Operating leases $ 577 $ 2,358