What changed in this filing

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Item 1. Financial Statements

2022-11-09 compared with 2022-08-09 · 230 added, 271 removed, 1099 unchanged (31% of the section changed)

3 unchanged sentences

Consolidated Statements of Financial Condition

June 30, 2022 (Unaudited) and December 31, 2021

September 30, 2022 (Unaudited) and December 31, 2021

(Dollars in Thousands)

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Cash and due from banks $ 183,929 $ 506,270

2 unchanged sentences

Available for sale debt securities, at fair value 1,829,309 2,057,851

Held to maturity debt securities, net (fair value of $ 399,140 at June 30, 2022 (unaudited) and $ 449,709 at December 31, 2021)

Held to maturity debt securities, net (fair value of $ 368,668 at September 30, 2022 (unaudited) and $ 449,709 at December 31, 2021)

393,069 436,150

24 unchanged sentences

Preferred stock, $ 0.01 par value, 50,000,000 shares authorized, none issued

Common stock, $ 0.01 par value, 200,000,000 shares authorized, 83,209,012 shares issued and 75,163,718 shares outstanding at June 30, 2022 and 76,969,999 outstanding at December 31, 2021

Common stock, $ 0.01 par value, 200,000,000 shares authorized, 83,209,012 shares issued and 75,162,357 shares outstanding at September 30, 2022 and 76,969,999 outstanding at December 31, 2021

Additional paid-in capital 978,363 969,815

3 unchanged sentences

Unallocated common stock held by the Employee Stock Ownership Plan ( 12,910 ) ( 15,344 )

Common stock acquired by the Directors' Deferred Fee Plan ("DDFP") ( 3,705 ) ( 3,984 )

Deferred Compensation - Directors' Deferred Fee Plan 3,705 3,984

Common stock acquired by deferred compensation plans ( 3,537 ) ( 3,984 )

Deferred compensation plans 3,537 3,984

Total stockholders’ equity 1,550,985 1,697,096

4 unchanged sentences

Consolidated Statements of Income

Three and six months ended June 30, 2022 and 2021 (Unaudited)

Three and nine months ended September 30, 2022 and 2021 (Unaudited)

(Dollars in Thousands, except per share data)

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2022 2021 2022 2021

20 unchanged sentences

Bank-owned life insurance 1,237 1,880 3,978 5,970

Net gains on securities transactions 141 34 157 231

Net (losses) gains on securities transactions ( 3 ) 27 154 257

Other income (1)

10,358 4,138 13,466 6,383

Total non-interest income 28,445 23,362 69,523 66,156

16 unchanged sentences

Weighted average diluted shares outstanding 74,393,380 76,685,206 74,896,493 76,673,563

(1) Included in other income, for the three and nine months ended September 30, 2022, is an $ 8.6 million gain realized on the sale of a foreclosed commercial office property.

See accompanying notes to unaudited consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Comprehensive Income

Three and six months ended June 30, 2022 and 2021 (Unaudited)

Three and nine months ended September 30, 2022 and 2021 (Unaudited)

(Dollars in Thousands)

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

2022 2021 2022 2021

2 unchanged sentences

Unrealized gains and losses on available for sale debt securities:

Net unrealized (losses) gains arising during the period ( 45,733 ) 2,440 ( 130,704 ) ( 6,579 )

Net unrealized losses arising during the period ( 67,293 ) ( 7,990 ) ( 197,997 ) ( 14,569 )

Reclassification adjustment for gains included in net income — — ( 42 ) ( 171 )

Total ( 67,293 ) ( 7,990 ) ( 198,039 ) ( 14,740 )

Unrealized gains (losses) on derivatives 2,158 ( 1,224 ) 12,596 3,397

Unrealized gains on derivatives 4,841 1,768 17,437 5,165

Amortization related to post-retirement obligations ( 236 ) ( 103 ) ( 748 ) ( 323 )

Total other comprehensive (loss) income ( 43,853 ) 1,105 ( 118,662 ) ( 3,573 )

Total other comprehensive loss ( 62,688 ) ( 6,325 ) ( 181,350 ) ( 9,898 )

Total comprehensive (loss) income $ ( 19,267 ) $ 30,943 $ ( 54,737 ) $ 120,720

3 unchanged sentences

Consolidated Statements of Changes in Stockholders’ Equity

For the three and six months ended June 30, 2021 (Unaudited)

For the three and nine months ended September 30, 2021 (Unaudited)

(Dollars in Thousands)

For the three months ended June 30, 2021

COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE INCOME TREASURYSTOCK UNALLOCATED ESOP SHARES COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS DEFERRED COMPENSATION PLANS TOTAL STOCKHOLDERS’ EQUITY

Balance at March 31, 2021 $ 832 $ 963,556 $ 748,574 $ 12,977 $ ( 59,261 ) $ ( 19,447 ) $ ( 4,381 ) $ 4,381 $ 1,647,231

For the three months ended September 30, 2021

COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) TREASURYSTOCK UNALLOCATED ESOP SHARES COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS DEFERRED COMPENSATION PLANS TOTAL STOCKHOLDERS’ EQUITY

Balance at June 30, 2021 $ 832 $ 965,470 $ 775,235 $ 14,082 $ ( 59,307 ) $ ( 18,678 ) $ ( 4,213 ) $ 4,213 $ 1,677,634

Net income — — 37,268 — — — — — 37,268

Other comprehensive income, net of tax — — — 1,105 — — — — 1,105

Other comprehensive loss, net of tax — — — ( 6,325 ) — — — — ( 6,325 )

Cash dividends paid — — ( 17,790 ) — — — — — ( 17,790 )

Distributions from DDFP — 41 — — — — 168 ( 168 ) 41

Distributions from deferred comp plans — 38 — — — — 89 ( 89 ) 38

Purchases of treasury stock — — — — ( 13,865 ) — — — ( 13,865 )

Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 46 ) — — — ( 46 )

Allocation of ESOP shares — 225 — — — 769 — — 994

1 unchanged sentence

Allocation of stock options — 49 — — — — — — 49

Balance at June 30, 2021 $ 832 $ 965,470 $ 775,235 $ 14,082 $ ( 59,307 ) $ ( 18,678 ) $ ( 4,213 ) $ 4,213 $ 1,677,634

For the six months ended June 30, 2021

Balance at September 30, 2021 $ 832 $ 967,203 $ 794,713 $ 7,757 $ ( 73,172 ) $ ( 17,909 ) $ ( 4,124 ) $ 4,124 $ 1,679,424

For the nine months ended September 30, 2021

COMMONSTOCK ADDITIONAL

6 unchanged sentences

Cash dividends paid — — ( 53,995 ) — — — — — ( 53,995 )

Distributions from DDFP — 69 — — — — 336 ( 336 ) 69

Distributions from deferred comp plans — 107 — — — — 425 ( 425 ) 107

Purchases of treasury stock — — — — ( 13,913 ) — — — ( 13,913 )

Purchase of employee restricted shares to fund statutory tax withholding — — — — ( 961 ) — — — ( 961 )

Shares issued dividend reinvestment plan — — — — — — — — —

Stock option exercises — ( 82 ) — — 720 — — — 638

2 unchanged sentences

Allocation of stock options — 151 — — — — — — 151

Balance at June 30, 2021 $ 832 $ 965,470 $ 775,235 $ 14,082 $ ( 59,307 ) $ ( 18,678 ) $ ( 4,213 ) $ 4,213 $ 1,677,634

Balance at September 30, 2021 $ 832 $ 967,203 $ 794,713 $ 7,757 $ ( 73,172 ) $ ( 17,909 ) $ ( 4,124 ) $ 4,124 $ 1,679,424

See accompanying notes to unaudited consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Changes in Stockholders’ Equity

For the three and six months ended June 30, 2022 (Unaudited)

For the three and nine months ended September 30, 2022 (Unaudited)

(Dollars in Thousands)

For the three months ended June 30, 2022

For the three months ended September 30, 2022

COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE (LOSS) TREASURY STOCK UNALLOCATED ESOP SHARES COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS DEFERRED COMPENSATION PLANS TOTAL STOCKHOLDERS’ EQUITY

Balance at March 31, 2022 832 972,552 839,807 ( 67,946 ) ( 109,581 ) ( 14,533 ) ( 3,844 ) 3,844 1,621,131

Balance at June 30, 2022 832 976,067 860,977 ( 111,799 ) ( 127,091 ) ( 13,721 ) ( 3,705 ) 3,705 1,585,265

Net income — — 43,421 — — — — — 43,421

1 unchanged sentence

Cash dividends paid — — ( 18,066 ) — — — — — ( 18,066 )

Distributions from DDFP — 41 — — — — 139 ( 139 ) 41

Distributions from deferred comp plans — 47 — — — — 168 ( 168 ) 47

Purchases of treasury stock — — — — — — — — —

4 unchanged sentences

Allocation of stock options — 49 — — — — — — 49

Balance at June 30, 2022 $ 832 $ 976,067 $ 860,977 $ ( 111,799 ) $ ( 127,091 ) $ ( 13,721 ) $ ( 3,705 ) $ 3,705 $ 1,585,265

For the six months ended June 30, 2022

Balance at September 30, 2022 $ 832 $ 978,363 $ 886,332 $ ( 174,487 ) $ ( 127,145 ) $ ( 12,910 ) $ ( 3,537 ) $ 3,537 $ 1,550,985

For the nine months ended September 30, 2022

COMMONSTOCK ADDITIONAL

8 unchanged sentences

Cash dividends paid — — ( 54,814 ) — — — — — ( 54,814 )

Distributions from DDFP — 86 — — — — 279 ( 279 ) 86

Distributions from deferred comp plans — 133 — — — — 447 ( 447 ) 133

Purchases of treasury stock — — — — ( 46,529 ) — — — ( 46,529 )

4 unchanged sentences

Allocation of stock options — 148 — — — — — — 148

Balance at June 30, 2022 $ 832 $ 976,067 $ 860,977 $ ( 111,799 ) $ ( 127,091 ) $ ( 13,721 ) $ ( 3,705 ) $ 3,705 $ 1,585,265

Balance at September 30, 2022 $ 832 $ 978,363 $ 886,332 $ ( 174,487 ) $ ( 127,145 ) $ ( 12,910 ) $ ( 3,537 ) $ 3,537 $ 1,550,985

See accompanying notes to unaudited consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Cash Flows

Six months ended June 30, 2022 and 2021 (Unaudited)

Nine months ended September 30, 2022 and 2021 (Unaudited)

(Dollars in Thousands)

Six months ended June 30,

Nine months ended September 30,

Cash flows from operating activities:

2 unchanged sentences

Depreciation and amortization of intangibles 9,845 9,531

Provision benefit for credit losses on loans and securities ( 3,409 ) ( 25,705 )

Provision charge (benefit) for credit losses on loans and securities 5,004 ( 24,736 )

Credit loss (benefit) charge for off-balance sheet credit exposure ( 1,788 ) 2,155

Deferred tax expense 3,393 6,211

Deferred tax (benefit) expense ( 222 ) 5,323

Amortization of operating lease right-of-use assets 8,006 7,559

5 unchanged sentences

Proceeds from sales of loans originated for sale 16,978 26,056

Proceeds from sales and paydowns of foreclosed assets 280 1,368

ESOP expense 3,312 2,993

5 unchanged sentences

Net gain on sale of foreclosed assets ( 8,590 ) ( 528 )

Increase in accrued interest receivable ( 868 ) ( 4,231 )

(Increase) decrease in accrued interest receivable ( 3,130 ) 5,584

(Increase) decrease in other assets ( 60,364 ) 10,596

2 unchanged sentences

Cash flows from investing activities:

Proceeds from sales and paydowns of foreclosed assets 16,188 1,368

Proceeds from maturities, calls and paydowns of held to maturity debt securities 62,597 44,054

14 unchanged sentences

Increase in mortgage escrow deposits 5,183 3,266

Six months ended June 30,

Nine months ended September 30,

Cash dividends paid to stockholders ( 54,814 ) ( 53,995 )

6 unchanged sentences

Net cash (used in) provided by financing activities ( 208,752 ) 375,230

Net (decrease) increase in cash and cash equivalents ( 434,931 ) 177,800

Net decrease in cash and cash equivalents ( 527,595 ) ( 27,064 )

Cash and cash equivalents at beginning of period 685,163 418,083

9 unchanged sentences

Transfer of loans receivable to foreclosed assets $ 1,120 $ 434

Acquisitions:

Non-cash assets acquired at fair value:

Goodwill and other intangible assets $ — $ 1,422

Other assets — ( 1,422 )

Total non-cash assets acquired at fair value $ — $ —

See accompanying notes to unaudited consolidated financial statements.

10 unchanged sentences

The interim unaudited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented.

The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results of operations that may be expected for all of 2022.

The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results of operations that may be expected for all of 2022.

Certain information and note disclosures normally included in financial statements prepared in accordance with U.S.

generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.

Additionally, certain comparative balances on the interim unaudited consolidated financial statements have been reclassified to conform to the current year’s presentation.

These unaudited consolidated financial statements should be read in conjunction with the December 31, 2021 Annual Report to Stockholders on Form 10-K.

Earnings Per Share

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and six months ended June 30, 2022 and 2021 (dollars in thousands, except per share amounts):

Three months ended June 30,

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three and nine months ended September 30, 2022 and 2021 (dollars in thousands, except per share amounts):

Three months ended September 30,

Income Weighted

8 unchanged sentences

Income available to common stockholders $ 43,421 74,393,380 $ 0.58 $ 37,268 76,685,206 $ 0.49

Six months ended June 30,

Nine months ended September 30,

Income Weighted

8 unchanged sentences

Income available to common stockholders $ 126,613 74,896,493 $ 1.69 $ 130,618 76,673,563 $ 1.70

Anti-dilutive stock options and awards at June 30, 2022 and 2021, totaling 1.0 million shares, respectively, were excluded from the earnings per share calculations.

Anti-dilutive stock options and awards at September 30, 2022 and 2021, totaling 921,834 shares and 830,628 shares, respectively, were excluded from the earnings per share calculations.

Loans Receivable and Allowance for Credit Losses

1 unchanged sentence

Material changes to these and other relevant factors may result in greater volatility to the allowance for credit losses, and therefore, greater volatility to the Company’s reported earnings.

The decrease in the period-over-period provision benefit for both the three and six months ended June 30, 2022 was largely a function of growth in the loan portfolio, the relative change in the economic outlook and the significant favorable impact of the post-pandemic recovery in the prior year period.

The increase in the provision expense for the three months ended September 30, 2022 was largely a function of the weakening economic forecast, combined with an increase in total loans outstanding.

The decrease in the period-over-period provision benefit for the nine months ended September 30, 2022 was largely a function of growth in the loan portfolio, the relative change in the economic outlook and the significant favorable impact of the post-pandemic recovery in the prior year period.

See Note 4 to the Consolidated Financial Statements for more information on the allowance for credit losses on loans.

5 unchanged sentences

The Company completed its annual goodwill impairment test as of July 1, 2022, and it is not more likely than not that the fair value of Provident Financial Services, Inc., the reporting unit, is below its carrying amount.

Business Combinations

Lakeland Bancorp, Inc.

- Merger Agreement

On September 26, 2022, the Company entered into a definitive merger agreement pursuant to which it will merge (the “merger”) with Lakeland Bancorp, Inc.

("Lakeland"), and Lakeland Bank, a wholly owned subsidiary of Lakeland, will merge with and into Provident Bank, a wholly owned subsidiary of the Company.

The merger agreement has been unanimously approved by the boards of directors of both companies.

The actual value of the Company’s common stock to be recorded as consideration in the merger will be based on the closing price of Company’s common stock at the time of the merger completion date.

Under the merger agreement, each share of Lakeland common stock will be exchanged for 0.8319 shares of the Company's common stock plus cash in lieu of fractional shares.

The merger is expected to close in the second quarter of 2023, subject to satisfaction of customary closing conditions, including receipt of required regulatory approvals and approval by the shareholders of both companies.

Investment Securities

At June 30, 2022, the Company had $ 1.95 billion and $ 410.7 million in available for sale debt securities and held to maturity debt securities, respectively.

At September 30, 2022, the Company had $ 1.83 billion and $ 393.1 million in available for sale debt securities and held to maturity debt securities, respectively.

Many factors, including lack of liquidity in the secondary market for certain securities, variations in pricing information, changes in interest rates, regulatory actions, changes in the business environment or any changes in the competitive marketplace could have an adverse effect on the Company’s investment portfolio.

The total number of available for sale and held to maturity debt securities in an unrealized loss position at June 30, 2022 totaled 751 , compared with 166 at December 31, 2021.

The increase in the number of securities in an unrealized loss position at June 30, 2022 was due to higher current market interest rates compared to rates at December 31, 2021.

The total number of available for sale and held to maturity debt securities in an unrealized loss position at September 30, 2022 totaled 1,053 , compared with 166 at December 31, 2021.

The increase in the number of securities in an unrealized loss position at September 30, 2022 was due to higher current market interest rates compared to rates at December 31, 2021.

Management measures expected credit losses on held to maturity debt securities on a collective basis by security type.

8 unchanged sentences

government, are highly rated by major rating agencies and have a long history of no credit losses.

The majority of the state and municipal, and corporate obligations carry no lower than A ratings from the rating agencies at June 30, 2022 and the Company had one security rated BBB by Moody’s Investors Service.

The majority of the state and municipal and corporate obligations carry no lower than A ratings from the rating agencies at September 30, 2022 and the Company had one security rated BBB by Moody’s Investors Service.

The Company adopted CECL using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2020.

1 unchanged sentence

Available for Sale Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for available for sale debt securities at June 30, 2022 and December 31, 2021 (in thousands):

June 30, 2022

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for available for sale debt securities at September 30, 2022 and December 31, 2021 (in thousands):

September 30, 2022

Treasury obligations $ 275,372 — ( 31,983 ) 243,389

11 unchanged sentences

$ 2,058,135 17,619 ( 17,903 ) 2,057,851

The amortized cost and fair value of available for sale debt securities at June 30, 2022, by contractual maturity, are shown below (in thousands).

The amortized cost and fair value of available for sale debt securities at September 30, 2022, by contractual maturity, are shown below (in thousands).

Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

June 30, 2022

September 30, 2022

Due in one year or less $ 1,000 999

4 unchanged sentences

Investments which pay principal on a periodic basis totaling $ 1.72 billion at amortized cost and $ 1.49 billion at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

For the three and six months ended June 30, 2022 and 2021, no securities were sold from the available for sale debt securities portfolio.

For the three and six months ended June 30, 2022, proceeds from calls on securities in the available for sale debt securities portfolio totaled $ 5.4 million with gains of $ 58,000 and no losses recognized.

For the six months ended June 30,

2021, proceeds from calls on securities in the available for sale debt securities portfolio totaled $ 9.4 million, with gains of $ 230,000 and no losses recognized.

The following tables present the fair values and gross unrealized losses for available for sale debt securities in an unrealized loss position at June 30, 2022 and December 31, 2021 (in thousands):

June 30, 2022

Less than 12 months 12 months or longer Total

Agency obligations $ 253,915 ( 21,204 ) — — 253,915 ( 21,204 )

Mortgage-backed securities 1,394,962 ( 128,497 ) 144,609 ( 17,916 ) 1,539,571 ( 146,413 )

Asset-backed securities 17,638 ( 292 ) — — 17,638 ( 292 )

State and municipal obligations 55,505 ( 8,921 ) — — 55,505 ( 8,921 )

Corporate obligations 26,364 ( 1,518 ) 5,731 ( 1,037 ) 32,095 ( 2,555 )

$ 1,748,384 ( 160,432 ) 150,340 ( 18,953 ) 1,898,724 ( 179,385 )

December 31, 2021

Less than 12 months 12 months or longer Total

Treasury obligations $ 98,621 ( 866 ) — — 98,621 ( 866 )

Mortgage-backed securities 1,147,403 ( 15,176 ) 33,850 ( 1,387 ) 1,181,253 ( 16,563 )

Asset-backed securities 1,930 ( 5 ) — — 1,930 ( 5 )

State and municipal obligations 10,732 ( 122 ) — — 10,732 ( 122 )

Corporate obligations 18,474 ( 347 ) — — 18,474 ( 347 )

$ 1,277,160 ( 16,516 ) 33,850 ( 1,387 ) 1,311,010 ( 17,903 )

The number of available for sale debt securities in an unrealized loss position at June 30, 2022 totaled 408 , compared with 113 at December 31, 2021.

The increase in the number of securities in an unrealized loss position at June 30, 2022 was due to higher current market interest rates compared to rates at December 31, 2021.

At June 30, 2022, there were two private label mortgage-backed securities in an unrealized loss position, with an amortized cost of $ 1.2 million and an unrealized loss of $ 21,000 .

These private-label mortgage-backed securities were unrated at June 30, 2022.

There were no sales of securities from the available for sale debt securities portfolio for the three months ended September 30, 2022 and 2021.

For the nine months ended September 30, 2022, proceeds from calls on securities in the available for sale debt securities portfolio totaled $ 5.4 million with gains of $ 58,000 and no losses recognized.

For the nine months ended September 30, 2021, proceeds from sales of securities in the available for sale debt securities portfolio totaled $ 9.4 million, with gains of $ 230,000 and no losses recognized.

The number of available for sale debt securities in an unrealized loss position at September 30, 2022 totaled 468 , compared with 113 at December 31, 2021.

The increase in the number of securities in an unrealized loss position at September 30, 2022 was due to higher current market interest rates compared to rates at December 31, 2021.

At September 30, 2022, there were two unrated private label mortgage-backed securities in an unrealized loss position, with an amortized cost of $ 1.1 million and an unrealized loss of $ 38,000 .

Additionally, there were four private-label mortgage-backed securities in an unrealized loss position, with an amortized cost of $ 36.3 million and an unrealized loss of $ 2.4 million.

At September 30, 2022, these private-label securities were all rated AAA.

Held to Maturity Debt Securities

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities at June 30, 2022 and December 31, 2021 (in thousands):

June 30, 2022

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities at September 30, 2022 and December 31, 2021 (in thousands):

September 30, 2022

Agency obligations $ 9,997 — ( 1,092 ) 8,905

3 unchanged sentences

$ 393,112 101 ( 24,545 ) 368,668

At June 30, 2022, the allowance for credit losses on held to maturity debt securities totaled $ 30,000 .

At September 30, 2022, the allowance for credit losses on held to maturity debt securities totaled $ 43,000 .

December 31, 2021

6 unchanged sentences

The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair value may fluctuate during the investment period.

There were no sales of securities from the held to maturity debt securities portfolio for the three and six months ended June 30, 2022 and 2021.

For the three and six months ended June 30, 2022, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 10.3 million and $ 26.2 million, respectively.

As to these calls on securities for the three and six months ended June 30, 2022, gross gains totaled $ 83,000 and $ 99,000 , respectively, with no gross losses.

For the three and six months ended June 30, 2021, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 6.1 million and $ 12.9 million, respectively.

As to these calls of securities for the three months ended June 30, 2021, there were gross gains of $ 33,500 and no gross losses, and for the six months ended June 30, 2021, there were gross gains of $ 1,000 and no gross losses.

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio at June 30, 2022 by contractual maturity are shown below (in thousands).

There were no sales of securities from the held to maturity debt securities portfolio for the three and nine months ended September 30, 2022 and 2021.

For the three and nine months ended September 30, 2022, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 10.3 million and $ 36.4 million, respectively.

As to these calls on securities, for the three months ended September 30, 2022, there were no gross gains and gross losses totaled $ 3,000 , while for the nine months ended September 30, 2022, gross gains totaled $ 96,000 , with no gross losses.

For the three and nine months ended September 30, 2021, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 21.1 million and $ 34.0 million, respectively.

As to these calls on securities, for the three and nine months ended September 30, 2021, there were gross gains of $ 26,505 and no gross losses.

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio at September 30, 2022 by contractual maturity are shown below (in thousands).

Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

June 30, 2022

September 30, 2022

Due in one year or less $ 16,160 16,105

5 unchanged sentences

Additionally, the allowance for credit losses totaling $ 43,000 is excluded from the table above.

The following tables present the fair values and gross unrealized losses for held to maturity debt securities in an unrealized loss position at June 30, 2022 and December 31, 2021 (in thousands):

June 30, 2022 Unrealized Losses

Less than 12 months 12 months or longer Total

Agency obligations $ 9,251 ( 745 ) — — 9,251 ( 745 )

State and municipal obligations 180,810 ( 9,316 ) 8,139 ( 1,913 ) 188,949 ( 11,229 )

Corporate obligations 9,060 ( 612 ) — — 9,060 ( 612 )

$ 199,121 ( 10,673 ) 8,139 ( 1,913 ) 207,260 ( 12,586 )

December 31, 2021 Unrealized Losses

Less than 12 months 12 months or longer Total

Agency obligations $ 9,821 ( 175 ) — — 9,821 ( 175 )

State and municipal obligations 27,350 ( 471 ) 5,022 ( 164 ) 32,372 ( 635 )

Corporate obligations 7,649 ( 152 ) — — 7,649 ( 152 )

$ 44,820 ( 798 ) 5,022 ( 164 ) 49,842 ( 962 )

The number of held to maturity debt securities in an unrealized loss position at June 30, 2022 totaled 343 , compared with 53 at December 31, 2021.

The increase in the number of securities in an unrealized loss position at June 30, 2022, was due to higher current market interest rates compared to rates at December 31, 2021.

The number of held to maturity debt securities in an unrealized loss position at September 30, 2022 totaled 585 , compared with 53 at December 31, 2021.

The increase in the number of securities in an unrealized loss position at September 30, 2022, was due to higher current market interest rates compared to rates at December 31, 2021.

Credit Quality Indicators.

The following table provides the amortized cost of held to maturity debt securities by credit rating as of June 30, 2022 (in thousands):

June 30, 2022

The following table provides the amortized cost of held to maturity debt securities by credit rating at September 30, 2022 and December 31, 2021 (in thousands):

September 30, 2022

Total Portfolio AAA AA A BBB Not Rated Total

12 unchanged sentences

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities.

At June 30, 2022, the held to maturity debt securities portfolio was comprised of 14 % rated AAA, 77 % rated AA, 9 % rated A, and less than 1 % either below an A rating or not rated by Moody’s Investors Service or Standard and Poor’s.

At September 30, 2022, the held to maturity debt securities portfolio was comprised of 15 % rated AAA, 47 % rated AA, 38 % rated A, and less than 1 % either below an A rating or not rated by Moody’s Investors Service or Standard and Poor’s.

Securities not explicitly rated, such as U.S.

Government mortgage-backed securities, were grouped where possible under the credit rating of the issuer of the security.

At June 30, 2022, the allowance for credit losses on held to maturity debt securities was $ 30,000 , a decrease from $ 39,000 at December 31, 2021.

The allowance for credit losses on held to maturity debt securities at September 30, 2022 and December 31, 2021 were $ 43,000 and $ 39,000 , respectively.

Loans Receivable and Allowance for Credit Losses

Loans receivable at June 30, 2022 and December 31, 2021 are summarized as follows (in thousands):

June 30, 2022 December 31, 2021

Loans receivable at September 30, 2022 and December 31, 2021 are summarized as follows (in thousands):

September 30, 2022 December 31, 2021

Mortgage loans:

11 unchanged sentences

The following tables summarize the aging of loans receivable by portfolio segment and class of loans (in thousands):

June 30, 2022

September 30, 2022

30-59 Days 60-89 Days Non-accrual Recorded

25 unchanged sentences

Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers.

The principal amounts of these non-accrual loans were $ 40.4 million and $ 48.0 million at June 30, 2022 and December 31, 2021, respectively.

Included in non-accrual loans were $ 16.3 million and $ 23.0 million of loans which were less than 90 days past due at June 30, 2022 and December 31, 2021, respectively.

There were no loans 90 days or greater past due and still accruing interest at June 30, 2022 and December 31, 2021.

The principal amounts of these non-accrual loans were $ 59.5 million and $ 48.0 million at September 30, 2022 and December 31, 2021, respectively.

Included in non-accrual loans were $ 39.3 million and $ 23.0 million

of loans which were less than 90 days past due at September 30, 2022 and December 31, 2021, respectively.

There were no loans 90 days or greater past due and still accruing interest at September 30, 2022 and December 31, 2021.

The Company defines an impaired loan as a non-homogeneous loan greater than $ 1.0 million, for which, based on current information, it is not expected to collect all amounts due under the contractual terms of the loan agreement.

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The Company believes there have been no significant time lapses resulting from this process.

At June 30, 2022, there were 133 impaired loans totaling $ 45.1 million, of which 125 totaling $ 27.7 million were TDRs.

Included in this total were 102 TDRs related to 99 borrowers totaling $ 17.8 million that were performing in accordance with their restructured terms and which continued to accrue interest at June 30, 2022.

At September 30, 2022, there were 131 impaired loans totaling $ 65.7 million, of which 123 totaling $ 26.8 million were TDRs.

Included in this total were 100 TDRs related to 97 borrowers totaling $ 17.2 million that were performing in accordance with their restructured terms and which continued to accrue interest at September 30, 2022.

At December 31, 2021, there were 155 impaired loans totaling $ 52.3 million, of which 132 loans totaling $ 30.6 million were TDRs.

Included in this total were 115 TDRs to 111 borrowers totaling $ 21.9 million that were performing in accordance with their restructured terms and which continued to accrue interest at December 31, 2021.

At June 30, 2022 and December 31, 2021, the Company had $ 15.2 million and $ 18.2 million related to the fair value of underlying collateral-dependent impaired loans, respectively.

These collateral-dependent impaired loans at June 30, 2022 consisted of $ 14.0 million in commercial loans, $ 1.2 million in residential real estate loans, and $ 64,000 in consumer loans.

Included in this total were 115 TDRs related to 111 borrowers totaling $ 21.9 million that were performing in accordance with their restructured terms and which continued to accrue interest at December 31, 2021.

At September 30, 2022 and December 31, 2021, the Company had $ 29.3 million and $ 18.2 million related to the fair value of underlying collateral-dependent impaired loans, respectively.

These collateral-dependent impaired loans at September 30, 2022 consisted of $ 28.3 million in commercial loans, $ 895,000 in residential real estate loans, and $ 63,000 in consumer loans.

The collateral for these impaired loans was primarily real estate.

The activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2022 and 2021 was as follows (in thousands):

Three months ended June 30, Mortgage loans Commercial loans Consumer loans Total

The activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2022 and 2021 was as follows (in thousands):

Three months ended September 30, Mortgage loans Commercial loans Consumer loans Total

Balance at beginning of period $ 55,064 21,387 2,566 79,017

8 unchanged sentences

Balance at end of period $ 54,056 22,298 3,679 80,033

Six months ended June 30, Mortgage loans Commercial loans Consumer loans Total

Nine months ended September 30, Mortgage loans Commercial loans Consumer loans Total

Balance at beginning of period $ 52,104 26,343 2,293 80,740

8 unchanged sentences

Balance at end of period $ 54,056 22,298 3,679 80,033

For the three and six months ended June 30, 2022, the Company recorded a $ 3.0 million provision for credit losses on loans and a $ 3.4 million negative provision for credit losses on loans, respectively.

The provision for credit losses for the quarter ended June 30, 2022 was largely a function of an increase in total loans outstanding and the relative change in the economic outlook, partially offset by an overall improvement in the Company's asset quality.

The decrease in the period-over-period provision benefit for the six months ended June 30, 2022 was largely a function of the significant favorable impact of the post-pandemic recovery resulting in a larger negative provision taken in the prior year period, partially offset by growth in the loan portfolio.

The following tables summarize loans receivable by portfolio segment and impairment method (in thousands):

June 30, 2022

loans Commercial

loans Consumer

loans Total Portfolio

Individually evaluated for impairment $ 35,492 8,387 1,173 45,052

Collectively evaluated for impairment 7,454,942 2,183,622 321,538 9,960,102

Total gross loans $ 7,490,434 2,192,009 322,711 10,005,154

December 31, 2021

loans Commercial

loans Consumer

loans Total Portfolio

Individually evaluated for impairment $ 34,610 16,420 1,224 52,254

Collectively evaluated for impairment 7,042,961 2,172,446 326,218 9,541,625

Total gross loans $ 7,077,571 2,188,866 327,442 9,593,879

The allowance for credit losses is summarized by portfolio segment and impairment classification as follows (in thousands):

June 30, 2022

loans Commercial loans Consumer loans Total

Individually evaluated for impairment $ 803 607 47 1,457

Collectively evaluated for impairment 54,261 20,780 2,518 77,559

Total gross loans $ 55,064 21,387 2,565 79,016

December 31, 2021

loans Commercial loans Consumer

Individually evaluated for impairment $ 875 3,358 51 4,284

Collectively evaluated for impairment 51,229 22,985 2,242 76,456

Total gross loans $ 52,104 $ 26,343 $ 2,293 $ 80,740

For the three and nine months ended September 30, 2022, the Company recorded an $ 8.4 million and a $ 5.0 million provision for credit losses on loans, respectively.

The increase in the provision was largely a function of the weakened economic forecast, combined with an increase in total loans outstanding.

The increase in the period-over-period provision for credit losses was largely a function of the significant favorable impact of the post-pandemic recovery resulting in a large negative provision taken in the prior year period, the current weakened economic forecast and an increase in total loans outstanding.

Loan modifications for borrowers experiencing financial difficulties that are considered TDRs primarily 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 without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these two methods.

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Non-accruing restructured loans may be returned to accrual status when 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 number of loans modified as TDRs during the three and six months ended June 30, 2022 and 2021, along with their balances immediately prior to the modification date and post-modification as of June 30, 2022 and 2021 (in thousands):

The following tables present the number of loans modified as TDRs during the three and nine months ended September 30, 2022 and 2021, along with their balances immediately prior to the modification date and post-modification as of September 30, 2022 and 2021 (in thousands):

For the three months ended

June 30, 2022 June 30, 2021

September 30, 2022 September 30, 2021

Troubled Debt Restructurings Number of

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Residential — $ — $ — 2 $ 375 $ 369

Multi Family 1 1,618 1,601 — — —

Total mortgage loans — — — 2 375 369

Commercial loans 2 378 274 1 1,580 1,089

Consumer loans 1 108 88 — —

Total restructured loans 1 $ 108 $ 88 2 $ 375 $ 369

For the six months ended

June 30, 2022 June 30, 2021

For the nine months ended

September 30, 2022 September 30, 2021

Troubled Debt Restructurings Number of

10 unchanged sentences

Commercial loans 2 378 273 4 2,940 2,318

Consumer loans 1 108 88 — — —

Total restructured loans 6 $ 2,369 $ 2,148 7 $ 3,486 $ 2,856

All TDRs are impaired loans, which are individually evaluated for impairment.

During the three and six months ended June 30, 2022, $ 921,000 of charge-offs were recorded on collateral-dependent impaired loans.

During the three months ended June 30, 2021, no charge-offs were recorded on collateral-dependent impaired loans, while $ 1.5 million of charge-offs were recorded on collateral-dependent impaired loans for the six months ended June 30, 2021.

For both the three and six months ended June 30, 2022, the TDRs presented in the preceding tables had a weighted average modified interest rate of 4.26 %, compared to a weighted average rate of 4.30 % prior to modification.

There was one loan totaling $ 209,000 which had a payment default (90 days or more past due) for loans modified as TDRs within the 12 month periods ending June 30, 2022.

During the nine months ended September 30, 2022, $ 921,000 of charge-offs were recorded on collateral-dependent impaired loans.

During the three and nine months ended September 30, 2021, $ 2.1 million and $ 3.5 million of charge-offs were recorded on collateral-dependent impaired loans.

For the three and nine months ended September 30, 2022, the TDRs presented in the preceding tables had a weighted average modified interest rate of 8.25 % and 4.42 %, respectively, compared to a weighted average rate of 6.75 % and 4.41 %, respectively, prior to modification.

There was one loan totaling $ 209,000 which had a payment default (90 days or more past due) which was modified as a TDR within the 12 month period ending September 30, 2022.

For TDRs that subsequently default, the Company determines the amount of the allowance for the respective loans in accordance with the accounting policy for the allowance for credit losses on loans individually evaluated for impairment.

As allowed by CECL, loans acquired by the Company that experience more-than-insignificant deterioration in credit quality after origination, are classified as Purchased Credit Deteriorated ("PCD") loans.

At June 30, 2022, the balance of PCD loans totaled $ 227.1 million with a related allowance for credit losses of $ 2.6 million.

At September 30, 2022, the balance of PCD loans totaled $ 207.4 million with a related allowance for credit losses of $ 2.4 million.

The balance of PCD loans at December 31, 2021 was $ 246.9 million with a related allowance for credit losses of $ 2.8 million.

The following table presents loans individually evaluated for impairment by class and loan category (in thousands):

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized

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Total impaired loans $ 71,999 65,660 4,198 68,755 725 59,280 52,254 4,284 53,352 1,265

Specific allocations of the allowance for credit losses attributable to impaired loans totaled $ 1.5 million at June 30, 2022 and $ 4.3 million at December 31, 2021.

At June 30, 2022 and December 31, 2021, impaired loans for which there was no related allowance for credit losses totaled $ 33.4 million and $ 34.2 million, respectively.

The average balance of impaired loans for the six months ended June 30, 2022 and the twelve months ended December 31, 2021 was $ 50.1 million and $ 53.4 million, respectively.

Specific allocations of the allowance for credit losses attributable to impaired loans totaled $ 4.2 million at September 30, 2022 and $ 4.3 million at December 31, 2021.

At September 30, 2022 and December 31, 2021, impaired loans for which there was no related allowance for credit losses totaled $ 33.9 million and $ 34.2 million, respectively.

The average balance of impaired loans for the nine months ended September 30, 2022 and the twelve months ended December 31, 2021 was $ 68.8 million and $ 53.4 million, respectively.

Management utilizes an internal nine-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics.

Loans deemed to be “acceptable quality” are rated 1 through 4, with a rating of 1 established for loans with

minimal risk.

Loans deemed to be “acceptable quality” are rated 1 through 4, with a rating of 1 established for loans with minimal risk.

Loans that are deemed to be of “questionable quality” are rated 5 (watch) or 6 (special mention).

2 unchanged sentences

These risk ratings are then reviewed by the department manager and/or the Chief Lending Officer and by the Credit Department.

The risk ratings are also reviewed periodically through loan review examinations which are currently performed by an independent third-party.

The risk ratings are also reviewed periodically through loan review examinations which are currently performed

by an independent third-party.

Reports by the independent third-party are presented to the Audit Committee of the Board of Directors.

3 unchanged sentences

For both the initial round and second round of PPP, the Company had secured 2,067 PPP loans for its customers totaling $ 682.0 million.

As of June 30, 2022, 2,039 PPP loans totaling $ 665.3 million were forgiven.

At June 30, 2022, PPP loans totaled $ 16.7 million, and are included in the commercial loan portfolio.

The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades as of June 30, 2022 and December 31, 2021 (in thousands):

As of September 30, 2022, 2,052 PPP loans totaling $ 676.4 million were forgiven.

At September 30, 2022, PPP loans totaled $ 5.6 million, and are included in the commercial loan portfolio.

The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades as of September 30, 2022 and December 31, 2021 (in thousands):

Gross Loans Held by Investment by Year of Origination

at June 30, 2022

at September 30, 2022

2022 2021 2020 2019 2018 Prior to 2018 Revolving Loans Revolving loans to term loans Total Loans

21 unchanged sentences

Pass/Watch 125,035 150,711 283,823 201,311 188,765 522,717 854 1,151 1,474,367

Gross Loans Held by Investment by Year of Origination

at June 30, 2022

2022 2021 2020 2019 2018 Prior to 2018 Revolving Loans Revolving loans to term loans Total Loans

Total multi-family $ 125,035 150,711 283,823 201,311 188,765 526,752 854 1,151 1,478,402

3 unchanged sentences

Loss — — — — — — — — —

Gross Loans Held by Investment by Year of Origination

at September 30, 2022

2022 2021 2020 2019 2018 Prior to 2018 Revolving Loans Revolving loans to term loans Total Loans

Total criticized and classified — — — 2,197 20,243 905 — — 23,345

25 unchanged sentences

Substandard — — 10,877 6,619 31,939 42,261 10,366 364 102,426

Gross Loans Held by Investment by Year of Origination

at June 30, 2022

2022 2021 2020 2019 2018 Prior to 2018 Revolving Loans Revolving loans to term loans Total Loans

Doubtful — — — — — — — — —

2 unchanged sentences

Pass/Watch 1,430,772 1,684,216 1,354,564 1,125,153 629,804 2,820,512 693,014 71,780 9,809,815

Gross Loans Held by Investment by Year of Origination

at September 30, 2022

2022 2021 2020 2019 2018 Prior to 2018 Revolving Loans Revolving loans to term loans Total Loans

Total gross loans $ 1,430,772 1,691,913 1,366,642 1,160,396 742,346 2,886,018 708,705 72,383 10,059,175

26 unchanged sentences

Total multi-family $ 154,419 295,155 166,558 173,583 120,707 449,926 2,880 1,169 1,364,397

Gross Loans Held by Investment by Year of Origination

at December 31, 2021

2021 2020 2019 2018 2017 Prior to 2017 Revolving Loans Revolving loans to term loans Total Loans

Special mention $ — 1,125 — — — — — — 1,125

2 unchanged sentences

Loss — — — — — — — — —

Gross Loans Held by Investment by Year of Origination

at December 31, 2021

2021 2020 2019 2018 2017 Prior to 2017 Revolving Loans Revolving loans to term loans Total Loans

Total criticized and classified — 1,125 — 2,365 — — — — 3,490

27 unchanged sentences

Loss — — — — — — — — —

Total criticized and classified 1,232 7,586 37,057 68,440 51,092 178,234 23,935 4,070 371,646

Pass/Watch 1,653,537 1,533,512 1,292,138 809,590 799,482 2,460,548 578,942 94,484 9,222,233

Gross Loans Held by Investment by Year of Origination

1 unchanged sentence

2021 2020 2019 2018 2017 Prior to 2017 Revolving Loans Revolving loans to term loans Total Loans

Total criticized and classified 1,232 7,586 37,057 68,440 51,092 178,234 23,935 4,070 371,646

Pass/Watch 1,653,537 1,533,512 1,292,138 809,590 799,482 2,460,548 578,942 94,484 9,222,233

Total gross loans $ 1,654,769 1,541,098 1,329,195 878,030 850,574 2,638,782 602,877 98,554 9,593,879

(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.

Deposits at June 30, 2022 and December 31, 2021 are summarized as follows (in thousands):

June 30, 2022 December 31, 2021

Deposits at September 30, 2022 and December 31, 2021 are summarized as follows (in thousands):

September 30, 2022 December 31, 2021

Savings $ 1,501,857 1,460,541

5 unchanged sentences

Borrowed Funds

Borrowed funds at June 30, 2022 and December 31, 2021 are summarized as follows (in thousands):

June 30, 2022 December 31, 2021

Borrowed funds at September 30, 2022 and December 31, 2021 are summarized as follows (in thousands):

September 30, 2022 December 31, 2021

Securities sold under repurchase agreements $ 106,296 116,760

2 unchanged sentences

Total borrowed funds $ 1,063,602 626,774

At June 30, 2022, FHLB advances were at fixed rates and mature between July 2022 and July 2025, and at December 31, 2021, FHLB advances were at fixed rates with maturities between January 2022 and July 2025.

At September 30, 2022, FHLB advances were at fixed rates and mature between October 2022 and July 2025, and at December 31, 2021, FHLB advances were at fixed rates with maturities between January 2022 and July 2025.

These advances are secured by loans receivable under a blanket collateral agreement.

Scheduled maturities of FHLB advances and overnight borrowings at June 30, 2022 are as follows (in thousands):

Scheduled maturities of FHLB advances and overnight borrowings at September 30, 2022 are as follows (in thousands):

Due in one year or less $ 544,508

3 unchanged sentences

Total FHLB advances and overnight borrowings $ 957,306

Scheduled maturities of securities sold under repurchase agreements at June 30, 2022 are as follows (in thousands):

Scheduled maturities of securities sold under repurchase agreements at September 30, 2022 are as follows (in thousands):

Due in one year or less $ 106,296

Total securities sold under repurchase agreements $ 106,296

The following tables set forth certain information as to borrowed funds for the periods ended June 30, 2022 and December 31, 2021 (in thousands):

The following tables set forth certain information as to borrowed funds for the periods ended September 30, 2022 and December 31, 2021 (in thousands):

Weighted average

interest rate

June 30, 2022

September 30, 2022

Securities sold under repurchase agreements $ 120,833 114,295 0.34 %

7 unchanged sentences

The Bank uses available for sale debt securities to pledge as collateral for the repurchase agreements.

At June 30, 2022 and December 31, 2021, available for sale debt securities pledged as collateral for repurchase agreements totaled $ 134.4 million and $ 136.0 million, respectively.

Interest expense on borrowings for the three and six months ended June 30, 2022 amounted to $ 1.1 million and $ 2.3 million, respectively.

Interest expense on borrowings for the three and six months ended June 30, 2021 amounted to $ 2.6 million and $ 5.4 million, respectively.

At September 30, 2022 and December 31, 2021, available for sale debt securities pledged as collateral for repurchase agreements totaled $ 120.0 million and $ 136.0 million, respectively.

Interest expense on borrowings for the three and nine months ended September 30, 2022 amounted to $ 2.5 million and $ 4.8 million, respectively.

Interest expense on borrowings for the three and nine months ended September 30, 2021 amounted to $ 1.8 million and $ 7.1 million, respectively.

Components of Net Periodic Benefit Cost

7 unchanged sentences

Effective January 1, 2007, eligibility for retiree life insurance benefits was frozen as to new entrants and retiree life insurance benefits were eliminated for employees with less than ten years of service as of December 31, 2006.

Net periodic (decrease) increase in benefit cost for pension benefits and other post-retirement benefits for the three and six months ended June 30, 2022 and 2021 includes the following components (in thousands):

Three months ended June 30, Six months ended June 30,

Net periodic (decrease) increase in benefit cost for pension benefits and other post-retirement benefits for the three and nine months ended September 30, 2022 and 2021 includes the following components (in thousands):

Three months ended September 30, Nine months ended September 30,

Pension benefits Other post-retirement benefits Pension benefits Other post-retirement benefits

7 unchanged sentences

In its consolidated financial statements for the year ended December 31, 2021, the Company previously disclosed that it does not expect to contribute to the pension plan in 2022.

As of June 30, 2022, no contributions have been made to the pension plan.

The changes in net periodic benefit cost for pension benefits and other post-retirement benefits for the three and six months ended June 30, 2022 were calculated using the January 1, 2022 pension and other post-retirement benefits actuarial valuations.

As of September 30, 2022, no contributions have been made to the pension plan.

The changes in net periodic benefit cost for pension benefits and other post-retirement benefits for the three and nine months ended September 30, 2022 were calculated using the January 1, 2022 pension and other post-retirement benefits actuarial valuations.

Impact of Recent Accounting Pronouncements

12 unchanged sentences

Under current guidance, the last-of-layer method enables an entity to apply fair value hedging to a stated amount of a closed portfolio of prepayable financial assets (or one or more beneficial interests secured by a portfolio of prepayable financial instruments) without having to consider prepayment risk or credit risk when measuring those assets.

ASU 2022-01 expands the scope of this guidance to allow entities to apply the portfolio layer method to portfolios of all financial assets, including both prepayable and nonprepayable financial assets.

This scope expansion is consistent with the FASB’s efforts to simplify hedge accounting and allows entities to apply the same method to similar hedging strategies.

2 unchanged sentences

ASU 2022-01 also addresses questions about the types of derivatives that could be used as the hedging instrument in potential multiple-layer hedges.

ASU 2022-01, an entity has the flexibility to use any type of derivative or combination of derivatives (e.g., spot-starting constant-notional swaps with different term lengths, a combination of spot-starting and forward-starting constant-notional swaps, amortizing-notional swaps) by applying the multiple-layer model that aligns with its risk management strategy.

Under ASU 2022-01, an entity has the flexibility to use any type of derivative or combination of derivatives (e.g., spot-starting constant-notional swaps with different term lengths, a combination of spot-starting and forward-starting constant-notional swaps, amortizing-notional swaps) by applying the multiple-layer model that aligns with its risk management strategy.

ASU 2022-01 expands and clarifies the current guidance on accounting for fair value hedge basis adjustments under the portfolio layer method for both single-layer and multiple-layer hedges.

For public business entities, ASU 2022-01 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.

For public business entities, ASU 2022-01 is effective for fiscal years beginning after December 15, 2022, including interim periods within

those fiscal years.

Early adoption is permitted if an entity has adopted ASU 2017-12.

The Company does not expect the adoption of this guidance to have a significant impact on the Company’s consolidated financial statements.

This standard is not expected to have a material impact on the Company's consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)," which provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks.

11 unchanged sentences

The Company is currently in the process of transitioning from LIBOR and plans to move to the Secured Overnight Financing Rate ("SOFR") and no longer offers LIBOR as an option to customers.

The Company continues to assess the impacts of this guidance, however does not expect the adoption of this guidance to have a significant impact on the Company’s consolidated financial statements.

This standard is not expected to have a material impact on the Company's consolidated financial statements.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

1 unchanged sentence

For purposes of estimating the allowance for credit losses for off-balance sheet credit exposures, the exposure at default includes an estimated drawdown of unused credit based on historical credit utilization factors and current loss factors, resulting in a proportionate amount of expected credit losses.

For the three and six months ended June 30, 2022, the Company recorded a $ 973,000 and $ 3.4 million negative provision for credit losses for off-balance sheet credit exposures, respectively.

For the three and six months ended June 30, 2021, the Company recorded a $ 2.1 million and $ 1.2 million provision for credit losses for off-balance sheet credit exposures, respectively.

The decrease for both periods was primarily the result of a decrease in the pipeline of loans approved and awaiting closing, combined with an increase in line of credit utilization, partially offset by an increase in loss factors.

The allowance for credit losses for off-balance sheet credit exposures was $ 3.2 million and $ 6.5 million at June 30, 2022 and December 31, 2021, respectively, and are included in other liabilities on the Consolidated Statements of Financial Condition.

For the three and nine months ended September 30, 2022, the Company recorded a $ 1.6 million provision and a $ 1.8 million negative provision for credit losses for off-balance sheet credit exposures, respectively.

For the three and nine months ended September 30, 2021, the Company recorded a $ 980,000 and $ 2.2 million provision for credit losses for off-balance sheet credit exposures, respectively.

The $ 595,000 increase in the provision for the three months ended September 30, 2022, compared to the same period in 2021, was primarily the result of the period-over-period relative change in projected loss factors.

The $ 3.9 million decrease in the provision for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021, was mainly due to a decrease in the pipeline of loans approved and awaiting closing and an increase in line of credit utilization, partially offset by an increase in projected loss factors.

The allowance for credit losses for off-balance sheet credit exposures was $ 4.7 million and $ 6.5 million at September 30, 2022 and December 31, 2021, respectively, and are included in other liabilities on the Consolidated Statements of Financial Condition.

Fair Value Measurements

5 unchanged sentences

GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1

measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy are as follows:

6 unchanged sentences

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The valuation techniques described below were used to measure fair value of financial instruments in the table below on a recurring basis as of June 30, 2022 and December 31, 2021.

The valuation techniques described below were used to measure fair value of financial instruments in the table below on a recurring basis as of September 30, 2022 and December 31, 2021.

Available for Sale Debt Securities, at Fair Value

16 unchanged sentences

The Company also uses interest rate swaps as part of its interest rate risk management strategy.

Interest rate swaps designated as cash flow hedges, and which satisfy hedge accounting requirements, involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount.

Interest rate swaps designated as cash flow hedges, and which satisfy hedge accounting requirements, involve the receipt of variable amounts from a

counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount.

These derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings and brokered demand deposits.

2 unchanged sentences

Assets Measured at Fair Value on a Non-Recurring Basis

The valuation techniques described below were used to estimate fair value of financial instruments measured on a non-recurring basis as of June 30, 2022 and December 31, 2021.

The valuation techniques described below were used to estimate fair value of financial instruments measured on a non-recurring basis as of September 30, 2022 and December 31, 2021.

Collateral-Dependent Impaired Loans

11 unchanged sentences

Operating results from real estate owned, including rental income, operating expenses, and gains and losses realized from the sales of real estate owned, are recorded as incurred.

There were no changes to the valuation techniques for fair value measurements as of June 30, 2022 or December 31, 2021.

The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair values as of June 30, 2022 and December 31, 2021, by level within the fair value hierarchy (in thousands):

There were no changes to the valuation techniques for fair value measurements as of September 30, 2022 or December 31, 2021.

The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair values as of September 30, 2022 and December 31, 2021, by level within the fair value hierarchy (in thousands):

Fair Value Measurements at Reporting Date Using:

June 30, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)

September 30, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)

Measured on a recurring basis:

32 unchanged sentences

$ 26,968 — — 26,968

There were no transfers between Level 1, Level 2 and Level 3 during the three and six months ended June 30, 2022.

There were no transfers between Level 1, Level 2 and Level 3 during the three and nine months ended September 30, 2022.

Other Fair Value Disclosures

3 unchanged sentences

For cash and due from banks, federal funds sold and short-term investments, the carrying amount approximates fair value.

Included in cash and cash equivalents at June 30, 2022 and December 31, 2021 was $ 70,000 and $ 27.3 million, respectively, representing cash collateral pledged to secure loan level swaps, risk participation agreements and reserves required by banking regulations.

Included in cash and cash equivalents at September 30, 2022 and December 31, 2021 was $ 1.8 million and $ 27.3 million, respectively, representing cash collateral pledged to secure loan level swaps, risk participation agreements and reserves required by banking regulations.

Held to Maturity Debt Securities

30 unchanged sentences

Borrowed Funds

The fair value of borrowed funds was estimated by

discounting future cash flows using rates available for debt with similar terms and maturities and is classified by the Company as Level 2 within the fair value hierarchy.

The fair value of borrowed funds was estimated by discounting future cash flows using rates available for debt with similar terms and maturities and is classified by the Company as Level 2 within the fair value hierarchy.

Commitments to Extend Credit and Letters of Credit

10 unchanged sentences

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.

The following tables present the Company’s financial instruments at their carrying and fair values as of June 30, 2022 and December 31, 2021.

The following tables present the Company’s financial instruments at their carrying and fair values as of September 30, 2022 and December 31, 2021.

Fair values are presented by level within the fair value hierarchy.

Fair Value Measurements at June 30, 2022 Using:

Fair Value Measurements at September 30, 2022 Using:

(Dollars in thousands) Carrying value Fair value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)

3 unchanged sentences

Treasury obligations 243,389 243,389 243,389 — —

Agency obligations — — — — —

Mortgage-backed securities 1,453,308 1,453,308 — 1,453,308 —

50 unchanged sentences

Other Comprehensive Income

The following table presents the components of other comprehensive income, both gross and net of tax, for the three and six months ended June 30, 2022 and 2021 (in thousands):

Three months ended June 30,

The following table presents the components of other comprehensive income, both gross and net of tax, for the three and nine months ended September 30, 2022 and 2021 (in thousands):

Three months ended September 30,

Components of Other Comprehensive Income:

5 unchanged sentences

Amortization related to post-retirement obligations ( 326 ) 90 ( 236 ) ( 138 ) 35 ( 103 )

Total other comprehensive (loss) income $ ( 59,909 ) 16,056 ( 43,853 ) 1,489 ( 384 ) 1,105

Six months ended June 30,

Total other comprehensive loss $ ( 85,642 ) 22,954 ( 62,688 ) ( 8,521 ) 2,196 ( 6,325 )

Nine months ended September 30,

Components of Other Comprehensive Income:

6 unchanged sentences

Total other comprehensive loss $ ( 247,703 ) 66,353 ( 181,350 ) ( 13,336 ) 3,438 ( 9,898 )

The following tables present the changes in the components of accumulated other comprehensive income, net of tax, for the three and six months ended June 30, 2022 and 2021 (in thousands):

The following tables present the changes in the components of accumulated other comprehensive income, net of tax, for the three and nine months ended September 30, 2022 and 2021 (in thousands):

Changes in Accumulated Other Comprehensive (Loss) Income by Component, net of tax

for the three months ended June 30,

for the three months ended September 30,

Available for Sale Debt Securities Post- Retirement

5 unchanged sentences

Comprehensive Income

March 31, $ ( 85,182 ) 2,705 14,531 ( 67,946 ) 14,500 ( 1,190 ) ( 333 ) 12,977

June 30, $ ( 130,957 ) 2,469 16,689 ( 111,799 ) 16,940 ( 1,301 ) ( 1,557 ) 14,082

Current - period other comprehensive (loss) income ( 67,293 ) ( 236 ) 4,841 ( 62,688 ) ( 7,990 ) ( 103 ) 1,768 ( 6,325 )

Balance at June 30, $ ( 130,957 ) 2,469 16,689 ( 111,799 ) 16,940 ( 1,301 ) ( 1,557 ) 14,082

Balance at September 30, $ ( 198,250 ) 2,233 21,530 ( 174,487 ) 8,950 ( 1,404 ) 211 7,757

Changes in Accumulated Other Comprehensive Income (Loss) by Component, net of tax

for the six months ended June 30,

for the nine months ended September 30,

Available for Sale Debt Securities Post- Retirement

6 unchanged sentences

Balance at December 31, $ ( 211 ) 2,981 4,093 6,863 23,690 ( 1,081 ) ( 4,954 ) 17,655

Current - period other comprehensive (loss) ( 130,746 ) ( 512 ) 12,596 ( 118,662 ) ( 6,750 ) ( 220 ) 3,397 ( 3,573 )

Balance at June 30, $ ( 130,957 ) 2,469 16,689 ( 111,799 ) 16,940 ( 1,301 ) ( 1,557 ) 14,082

The following tables summarize the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of income for the three and six months ended June 30, 2022 and 2021 (in thousands):

Current - period other comprehensive (loss) income ( 198,039 ) ( 748 ) 17,437 ( 181,350 ) ( 14,740 ) ( 323 ) 5,165 ( 9,898 )

Balance at September 30, $ ( 198,250 ) 2,233 21,530 ( 174,487 ) 8,950 ( 1,404 ) 211 7,757

The following tables summarize the reclassifications from accumulated other comprehensive income (loss) to the consolidated statements of income for the three and nine months ended September 30, 2022 and 2021 (in thousands):

Reclassifications From Accumulated Other Comprehensive

Income ("AOCI")

Amount reclassified from AOCI for the three months ended June 30, Affected line item in the Consolidated

Amount reclassified from AOCI for the three months ended September 30, Affected line item in the Consolidated

Statement of Income

Details of AOCI:

Available for sale debt securities:

Realized net gains on the sale of securities available for sale $ ( 58 ) — Net gain on securities transactions

16 — Income tax expense

( 42 ) — Net of tax

Cash flow hedges:

1 unchanged sentence

424 ( 265 ) Income tax expense

( 1,157 ) 765

Post-retirement obligations:

5 unchanged sentences

Income ("AOCI")

Amount reclassified from AOCI for the six months ended June 30, Affected line item in the Consolidated

Amount reclassified from AOCI for the nine months ended September 30, Affected line item in the Consolidated

Statement of Income

7 unchanged sentences

289 ( 736 ) Income tax expense

( 788 ) 2,120

Post-retirement obligations:

15 unchanged sentences

As the Company has not elected to apply hedge accounting and these interest rate swaps do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings.

At June 30, 2022 and December 31, 2021, the Company had 166 and 164 loan related interest rate swaps, respectively, with aggregate notional amounts of $ 2.48 billion and $ 2.38 billion, respectively.

At September 30, 2022 and December 31, 2021, the Company had 164 loan related interest rate swaps with aggregate notional amounts of $ 2.45 billion and $ 2.38 billion, respectively.

The Company periodically enters into risk participation agreements ("RPAs"), with the Company functioning as either the lead institution, or as a participant when another company is the lead institution on a commercial loan.

2 unchanged sentences

The Company has minimum collateral posting thresholds with certain of its risk participation counterparties, and has posted collateral of $ 70,000 against the potential risk of default by the borrower under these agreements.

At June 30, 2022 and December 31, 2021, the Company had 13 credit derivatives, with aggregate notional amounts of $ 149.6 million and $ 144.8 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements.

At June 30, 2022, the asset and liability positions of these fair value credit derivatives totaled $ 47,000 and $ 19,000 , respectively, compared to $ 109,000 and $ 46,000 , respectively, at December 31, 2021.

For September 30, 2022 and December 31, 2021, the Company had 12 and 13 credit derivatives, respectively, with aggregate notional amounts of $ 131.0 million and $ 144.8 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements.

At September 30, 2022, the asset and liability positions of these fair value credit derivatives totaled $ 29,000 and $ 12,000 , respectively, compared to $ 109,000 and $ 46,000 , respectively, at December 31, 2021.

Cash Flow Hedges of Interest Rate Risk.

3 unchanged sentences

Changes in the fair value of derivatives designated and that qualify as cash flow hedges of interest rate risk are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.

During the three and six months ended June 30, 2022 and 2021, such derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings and brokered demand deposits.

During the three and nine months ended September 30, 2022 and 2021, such derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings and brokered demand deposits.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s borrowings or demand deposits.

During the next twelve months, the Company estimates that $ 14.2 million will be reclassified as a reduction to interest expense.

At June 30, 2022, the Company had 11 outstanding interest rate derivatives with an aggregate notional amount of $ 460.0 million that were each designated as a cash flow hedge of interest rate risk.

At September 30, 2022, the Company had 11 outstanding interest rate derivatives with an aggregate notional amount of $ 460.0 million that were each designated as a cash flow hedge of interest rate risk.

Assets and liabilities relating to certain financial instruments, including derivatives, may be eligible for offset in the Consolidated Statements of Financial Condition and/or subject to enforceable master netting arrangements or similar agreements.

The Company does not offset asset and liabilities under such arrangements in the Consolidated Statements of Financial Condition.

The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments that are eligible for offset in the Consolidated Statements of Condition at June 30, 2022 and December 31, 2021 (in thousands).

Fair Values of Derivative Instruments as of June 30, 2022

The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments that are eligible for offset in the Consolidated Statements of Condition at September 30, 2022 and December 31, 2021 (in thousands).

Fair Values of Derivative Instruments as of September 30, 2022

Asset Derivatives Liability Derivatives

15 unchanged sentences

Fair Values of Derivative Instruments as of December 31, 2021

Liability Derivatives

Asset Derivatives Liability Derivatives

Notional Amount Consolidated Statements of Financial Condition Fair

16 unchanged sentences

Therefore, excess cash collateral, if any, is not reflected above.

(2) The fair values related to interest rate products in the above net derivative tables show the total value of assets and liabilities, which include accrued interest receivable and accrued interest payable for the periods ended June 30, 2022 and December 31, 2021.

The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income during the three and six months ended June 30, 2022 and 2021 (in thousands).

The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income during the three and nine months ended September 30, 2022 and 2021 (in thousands).

Gain (loss) recognized in income on derivatives for the three months ended

Consolidated Statements of Income June 30, 2022 June 30, 2021

Consolidated Statements of Income September 30, 2022 September 30, 2021

Derivatives not designated as a hedging instrument:

3 unchanged sentences

Derivatives designated as a hedging instrument:

Interest rate products Interest expense $ ( 162 ) 947

Interest rate products Interest (income) expense $ ( 1,581 ) 1,030

Total $ ( 1,581 ) 1,030

Gain (loss) recognized in income on derivatives for the six months ended

Consolidated Statements of Income June 30, 2022 June 30, 2021

Gain (loss) recognized in income on derivatives for the nine months ended

Consolidated Statements of Income September 30, 2022 September 30, 2021

Derivatives not designated as a hedging instrument:

3 unchanged sentences

Derivatives designated as a hedging instrument:

Interest rate products Interest expense $ 504 1,826

Interest rate products Interest (income) expense $ ( 1,077 ) 2,856

Total $ ( 1,077 ) 2,856

1 unchanged sentence

In addition, the Company has agreements with certain of its dealer counterparties which contain a provision that if the Company fails to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements.

At June 30, 2022, the Company had four dealer counterparties.

At September 30, 2022, the Company had four dealer counterparties.

The Company had a net asset position with respect to all of its counterparties.

2 unchanged sentences

The guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) does not apply to revenue associated with financial instruments, including interest income on loans and investments, which comprise the majority of the Company's revenue.

For both the three and six months ended June 30, 2022, the out-of-scope revenue related to financial instruments was 83.5 % of the Company's total revenue, compared to 82.6 % and 82.5 % for the three and six months ended June 30, 2021, respectively.

For both the three and nine months ended September 30, 2022, the out-of-scope revenue related to financial instruments was 81.1 % and 82.6 % of the Company's total revenue, compared to 81.0 % and 82.0 % for the three and nine months ended September 30, 2021, respectively.

Revenue-generating activities that are within the scope of Topic 606, are components of non-interest income.

1 unchanged sentence

wealth management revenue, insurance agency income and banking service charges and other fees.

The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2022 and 2021 (in thousands):

Three months ended June 30, Six months ended June 30,

The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine months ended September 30, 2022 and 2021 (in thousands):

Three months ended September 30, Nine months ended September 30,

2022 2021 2022 2021

33 unchanged sentences

None of these revenue streams are subject to the requirements of Topic 606.

The following table represents the consolidated statements of financial condition classification of the Company’s right-of use-assets and lease liabilities at June 30, 2022 and December 31, 2021 (in thousands):

Classification June 30, 2022 December 31, 2021

The following table represents the consolidated statements of financial condition classification of the Company’s right-of use-assets and lease liabilities at September 30, 2022 and December 31, 2021 (in thousands):

Classification September 30, 2022 December 31, 2021

Lease Right-of-Use Assets:

9 unchanged sentences

All of the leases in which the Company is the lessee are classified as operating leases and are primarily comprised of real estate properties for branches and administrative offices with terms extending through 2040.

At June 30, 2022, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 9.0 years and 2.43 %, respectively.

At September 30, 2022, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 8.8 years and 2.57 %, respectively.

The following tables represent lease costs and other lease information for the Company's operating leases.

The variable lease cost primarily represents variable payments such as common area maintenance and utilities (in thousands):

Three months ended June 30, 2022 Three months ended June 30, 2021

Three months ended September 30, 2022 Three months ended September 30, 2021

Operating lease cost $ 2,613 $ 2,417

1 unchanged sentence

Total lease cost $ 3,280 $ 3,145

Six months ended June 30, 2022 Six months ended June 30, 2021

Nine months ended September 30, 2022 Nine months ended September 30, 2021

Operating lease cost $ 8,006 $ 7,559

2 unchanged sentences

Cash paid for amounts included in the measurement of lease liabilities:

Six months ended June 30, 2022 Six months ended June 30, 2021

Nine months ended September 30, 2022 Nine months ended September 30, 2021

Operating cash flows from operating leases $ 6,328 $ 6,861

During the six months ended June 30, 2022, the Company added one new lease obligation related to the Company's new administrative office location in Iselin, New Jersey.

During the nine months ended September 30, 2022, the Company added one new lease obligation related to the Company's new administrative office location in Iselin, New Jersey.

The Company recorded a right-of-use asset and lease liability of $ 16.0 million for this lease obligation.

Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2022, were as follows (in thousands):

Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2022, were as follows (in thousands):

Operating leases

6 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements