3 unchanged sentences
Consolidated Statements of Financial Condition
−Removed: June 30, 2023 (Unaudited) and December 31, 2022
+Added: September 30, 2023 (Unaudited) and December 31, 2022
(Dollars in Thousands)
−Removed: June 30, 2023 December 31, 2022
+Added: September 30, 2023 December 31, 2022
Cash and due from banks $ 188,573 $ 186,490
2 unchanged sentences
Available for sale debt securities, at fair value 1,656,305 1,803,548
−Removed: Held to maturity debt securities, net (fair value of $ 365,029 at June 30, 2023 (unaudited) and $ 373,468 at December 31, 2022)
+Added: Held to maturity debt securities, net (fair value of $ 343,082 at September 30, 2023 (unaudited) and $ 373,468 at December 31, 2022)
370,416 387,923
24 unchanged sentences
Preferred stock, $ 0.01 par value, 50,000,000 shares authorized, none issued
−Removed: Common stock, $ 0.01 par value, 200,000,000 shares authorized, 83,209,012 shares issued and 75,530,425 shares outstanding at June 30, 2023 and 75,169,196 outstanding at December 31, 2022
+Added: Common stock, $ 0.01 par value, 200,000,000 shares authorized, 83,209,012 shares issued and 75,531,884 shares outstanding at September 30, 2023 and 76,169,196 outstanding at December 31, 2022
Additional paid-in capital 988,001 981,138
11 unchanged sentences
Consolidated Statements of Income
−Removed: Three and six months ended June 30, 2023 and 2022 (Unaudited)
+Added: Three and nine months ended September 30, 2023 and 2022 (Unaudited)
(Dollars in Thousands, except per share data)
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
2023 2022 2023 2022
13 unchanged sentences
Net interest income 96,236 109,489 303,666 303,491
−Removed: Provision charge (benefit) for credit losses 10,397 2,996 16,398 ( 3,409 )
−Removed: Net interest income after provision charge (benefit) for credit losses 88,709 96,479 191,032 197,410
+Added: Provision charge for credit losses 11,009 8,413 27,407 5,004
+Added: Net interest income after provision charge for credit losses 85,227 101,076 276,259 298,487
Non-interest income:
13 unchanged sentences
Advertising and promotion expense 1,133 1,366 3,722 3,692
−Removed: Provision (benefit) charge for credit losses on off-balance sheet credit exposures ( 647 ) ( 973 ) 92 ( 3,363 )
+Added: Provision charge (benefit) for credit losses on off-balance sheet credit exposures 1,532 1,575 1,624 ( 1,788 )
Merger-related expenses 2,289 2,886 5,349 2,886
12 unchanged sentences
Consolidated Statements of Comprehensive Income
−Removed: Three and six months ended June 30, 2023 and 2022 (Unaudited)
+Added: Three and nine months ended September 30, 2023 and 2022 (Unaudited)
(Dollars in Thousands)
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
2023 2022 2023 2022
Net income $ 28,547 $ 43,421 $ 101,086 $ 126,613
−Removed: Other comprehensive income (loss), net of tax:
+Added: Other comprehensive (loss) income, net of tax:
Unrealized gains and losses on available for sale debt securities:
−Removed: Net unrealized (losses) gains arising during the period ( 14,726 ) ( 45,733 ) 6,138 ( 130,704 )
+Added: Net unrealized (losses) arising during the period ( 31,224 ) ( 67,293 ) ( 25,086 ) ( 197,997 )
Reclassification adjustment for gains included in net income — — — ( 42 )
2 unchanged sentences
Net unrealized gains arising during the period 2,352 5,998 5,385 18,225
−Removed: Reclassification adjustment for (gains) losses included in net income ( 3,010 ) ( 118 ) ( 6,089 ) 369
+Added: Reclassification adjustment for (gains) included in net income ( 3,430 ) ( 1,157 ) ( 9,519 ) ( 788 )
Total ( 1,078 ) 4,841 ( 4,134 ) 17,437
Amortization related to post-retirement obligations ( 261 ) ( 236 ) ( 791 ) ( 748 )
−Removed: Total other comprehensive (loss) income ( 14,347 ) ( 43,853 ) 2,552 ( 118,662 )
−Removed: Total comprehensive income (loss) $ 17,656 $ ( 4,625 ) $ 75,091 $ ( 35,471 )
+Added: Total other comprehensive (loss) ( 32,563 ) ( 62,688 ) ( 30,011 ) ( 181,350 )
+Added: Total comprehensive (loss) income $ ( 4,016 ) $ ( 19,267 ) $ 71,075 $ ( 54,737 )
See accompanying notes to unaudited consolidated financial statements.
2 unchanged sentences
Consolidated Statements of Changes in Stockholders’ Equity
−Removed: For the three and six months ended June 30, 2022 (Unaudited)
+Added: For the three and nine months ended September 30, 2022 (Unaudited)
(Dollars in Thousands)
−Removed: For the three months ended June 30, 2022
+Added: For the three months ended September 30, 2022
COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME TREASURYSTOCK UNALLOCATED ESOP SHARES COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS DEFERRED COMPENSATION PLANS TOTAL STOCKHOLDERS’ EQUITY
−Removed: Balance at March 31, 2022 $ 832 $ 972,552 $ 839,807 $ ( 67,946 ) $ ( 109,581 ) $ ( 14,533 ) $ ( 3,844 ) $ 3,844 $ 1,621,131
+Added: 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
7 unchanged sentences
Allocation of stock options — 49 — — — — — — 49
−Removed: Balance at June 30, 2022 $ 832 $ 976,067 $ 860,977 $ ( 111,799 ) $ ( 127,091 ) $ ( 13,721 ) $ ( 3,705 ) $ 3,705 $ 1,585,265
−Removed: For the six months ended June 30, 2022
+Added: Balance at September 30, 2022 $ 832 $ 978,363 $ 886,332 $ ( 174,487 ) $ ( 127,145 ) $ ( 12,910 ) $ ( 3,537 ) $ 3,537 $ 1,550,985
+Added: For the nine months ended September 30, 2022
COMMONSTOCK ADDITIONAL
13 unchanged sentences
Allocation of stock options — 148 — — — — — — 148
−Removed: Balance at June 30, 2022 $ 832 $ 976,067 $ 860,977 $ ( 111,799 ) $ ( 127,091 ) $ ( 13,721 ) $ ( 3,705 ) $ 3,705 $ 1,585,265
+Added: 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 Changes in Stockholders’ Equity
−Removed: For the three and six months ended June 30, 2023 (Unaudited)
+Added: For the three and nine months ended September 30, 2023 (Unaudited)
(Dollars in Thousands)
−Removed: For the three months ended June 30, 2023
+Added: For the three months ended September 30, 2023
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
−Removed: Balance at March 31, 2023 832 984,089 940,533 ( 148,146 ) ( 127,814 ) ( 9,414 ) ( 3,289 ) 3,289 1,640,080
+Added: Balance at June 30, 2023 832 986,150 954,403 ( 162,493 ) ( 127,818 ) ( 8,603 ) ( 3,150 ) 3,150 1,642,471
Net income — — 28,547 — — — — — 28,547
8 unchanged sentences
Allocation of stock options — 34 — — — — — — 34
−Removed: Balance at June 30, 2023 $ 832 $ 986,150 $ 954,403 $ ( 162,493 ) $ ( 127,818 ) $ ( 8,603 ) $ ( 3,150 ) $ 3,150 $ 1,642,471
−Removed: For the six months ended June 30, 2023
+Added: Balance at September 30, 2023 $ 832 $ 988,001 $ 964,802 $ ( 195,056 ) $ ( 127,818 ) $ ( 7,791 ) $ ( 3,013 ) $ 3,013 $ 1,622,970
+Added: For the nine months ended September 30, 2023
COMMONSTOCK ADDITIONAL
6 unchanged sentences
Net income — — 101,086 — — — — — 101,086
−Removed: Other comprehensive income, net of tax — — — 2,552 — — — — 2,552
+Added: Other comprehensive loss, net of tax — — — ( 30,011 ) — — — — ( 30,011 )
Cash dividends paid — — ( 54,875 ) — — — — — ( 54,875 )
7 unchanged sentences
Allocation of stock options — 111 — — — — — — 111
−Removed: Balance at June 30, 2023 $ 832 $ 986,150 $ 954,403 $ ( 162,493 ) $ ( 127,818 ) $ ( 8,603 ) $ ( 3,150 ) $ 3,150 $ 1,642,471
+Added: Balance at September 30, 2023 $ 832 $ 988,001 $ 964,802 $ ( 195,056 ) $ ( 127,818 ) $ ( 7,791 ) $ ( 3,013 ) $ 3,013 $ 1,622,970
See accompanying notes to unaudited consolidated financial statements.
2 unchanged sentences
Consolidated Statements of Cash Flows
−Removed: Six months ended June 30, 2023 and 2022 (Unaudited)
+Added: Nine months ended September 30, 2023 and 2022 (Unaudited)
(Dollars in Thousands)
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
Cash flows from operating activities:
2 unchanged sentences
Depreciation and amortization of intangibles 8,835 9,845
−Removed: Provision charge (benefit) for credit losses on loans and securities 16,398 ( 3,409 )
+Added: Provision charge for credit losses on loans and securities 27,407 5,004
Provision charge (benefit) for credit losses on off-balance sheet credit exposures 1,624 ( 1,788 )
−Removed: Deferred tax (benefit) expense ( 2,332 ) 3,393
+Added: Deferred tax benefit ( 2,332 ) ( 222 )
Amortization of operating lease right-of-use assets 7,890 8,006
13 unchanged sentences
Increase in accrued interest receivable ( 3,838 ) ( 3,130 )
−Removed: Decrease (increase) in other assets 7,490 ( 12,691 )
−Removed: (Decrease) increase in other liabilities ( 17,719 ) 22,578
+Added: Increase in other assets ( 23,596 ) ( 60,364 )
+Added: Increase in other liabilities 9,101 74,992
Net cash provided by operating activities 127,079 157,870
17 unchanged sentences
Cash dividends paid to stockholders ( 54,875 ) ( 54,814 )
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
Purchase of treasury stock — ( 46,529 )
29 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.
−Removed: The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results of operations that may be expected for all of 2023.
+Added: The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results of operations that may be expected for all of 2023.
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.
+Added: 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, 2022 Annual Report to Stockholders on Form 10-K.
Earnings Per Share
−Removed: 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, 2023 and 2022 (dollars in thousands, except per share amounts):
−Removed: Three months ended June 30,
+Added: 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, 2023 and 2022 (dollars in thousands, except per share amounts):
+Added: Three months ended September 30,
Income Weighted
8 unchanged sentences
Income available to common stockholders $ 28,547 74,914,205 $ 0.38 $ 43,421 74,393,380 $ 0.58
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
Income Weighted
8 unchanged sentences
Income available to common stockholders $ 101,086 74,816,606 $ 1.35 $ 126,613 74,896,493 $ 1.69
−Removed: Anti-dilutive stock options and awards at June 30, 2023 and 2022, totaling 1.3 million shares and 1.0 million shares, respectively, were excluded from the earnings per share calculations.
+Added: Anti-dilutive stock options and awards at September 30, 2023 and 2022, totaling 1.2 million shares and 921,834 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.
−Removed: For the three and six months ended June 30, 2023, a worsened economic forecast and related deterioration in the projected commercial property price indices over the expected life of the loan portfolio within our CECL model led to increases to the provisions for credit losses and off-balance sheet credit exposures.
+Added: For the three and nine months ended September 30, 2023, a worsened economic forecast and related deterioration in the projected commercial property price indices over the expected life of the loan portfolio within our CECL model led to increases to the provisions for credit losses and off-balance sheet credit exposures.
See Notes 4 and 10 to the Consolidated Financial Statements for more information on the allowance for credit losses on loans and off-balance sheet credit exposures.
1 unchanged sentence
In accordance with GAAP, goodwill with an indefinite useful life is not amortized, but is evaluated for impairment on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment between annual measurement dates.
−Removed: Goodwill is analyzed for impairment once a year.
+Added: Goodwill is analyzed for impairment at least once a year.
As permitted by GAAP, the Company prepares a qualitative assessment in determining whether goodwill may be impaired.
1 unchanged sentence
The Company completed its most recent annual goodwill impairment test as of July 1, 2023.
−Removed: At June 30, 2023, the Company performed an interim goodwill impairment analysis and concluded that no triggering considerations were met and therefore a test for impairment between annual tests was not required.
+Added: At September 30, 2023, the Company performed an analysis and concluded that no triggering events were identified and therefore a test for impairment between annual tests was not required.
Business Combinations
6 unchanged sentences
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.
+Added: Upon completion of the transaction, which remains subject to regulatory approvals and other closing conditions, Provident shareholders will own approximately 58 % and Lakeland shareholders will own approximately 42 % of the combined company.
+Added: The combined company is expected to have more than $ 25 billion in total assets, $ 18 billion in total loans and $ 20 billion in total deposits.
Investment Securities
−Removed: At June 30, 2023, the Company had $ 1.75 billion and $ 378.9 million in available for sale debt securities and held to maturity debt securities, respectively.
−Removed: 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
−Removed: competitive marketplace could have an adverse effect on the Company’s investment portfolio.
−Removed: The total number of available for sale and held to maturity debt securities in an unrealized loss position at June 30, 2023 totaled 937 , compared with 914 at December 31, 2022.
−Removed: The increase in the number of securities in an unrealized loss position at June 30, 2023 was due to higher current market interest rates compared to rates at December 31, 2022.
+Added: At September 30, 2023, the Company had $ 1.66 billion and $ 370.4 million in available for sale debt securities and held to maturity debt securities, respectively.
+Added: 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.
+Added: The total number of available for sale and held to maturity debt securities in an unrealized loss position at September 30, 2023 totaled 1,065 , compared with 914 at December 31, 2022.
+Added: The increase in the number of securities in an unrealized loss position at September 30, 2023 was due to higher current market interest rates compared to rates at December 31, 2022.
Available for Sale Debt Securities
−Removed: 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, 2023 and December 31, 2022 (in thousands):
−Removed: June 30, 2023
+Added: 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, 2023 and December 31, 2022 (in thousands):
+Added: September 30, 2023
Treasury obligations $ 276,364 — ( 31,037 ) 245,327
12 unchanged sentences
$ 2,058,485 537 ( 255,474 ) 1,803,548
−Removed: The amortized cost and fair value of available for sale debt securities at June 30, 2023, by contractual maturity, are shown below (in thousands).
+Added: The amortized cost and fair value of available for sale debt securities at September 30, 2023, 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.
−Removed: June 30, 2023
+Added: September 30, 2023
Due in one year or less $ 243,150 217,543
4 unchanged sentences
Investments which pay principal on a periodic basis totaling $ 1.56 billion at amortized cost and $ 1.32 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.
−Removed: There were no sales of securities from the available for sale debt securities portfolio for the three and six months ended June 30, 2023 and 2022.
−Removed: For the three and six months ended June 30, 2023, there were no proceeds from calls on securities in the available for sale debt securities portfolio.
−Removed: 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.
−Removed: The number of available for sale debt securities in an unrealized loss position at June 30, 2023 totaled 464 , compared with 475 at December 31, 2022.
−Removed: The decline in the number of securities in an unrealized loss position at June 30, 2023 was due to maturities and calls of securities in the quarter.
−Removed: All securities in an unrealized loss position were investment grade at June 30, 2023.
+Added: There were no sales of securities from the available for sale debt securities portfolio for the three and nine months ended September 30, 2023 and 2022.
+Added: For the three and nine months ended September 30, 2023, there were no proceeds from calls on
+Added: securities in the available for sale debt securities portfolio.
+Added: For the three and 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 $ 84,000 and $ 26,000 of losses recognized, respectively.
+Added: The number of available for sale debt securities in an unrealized loss position at September 30, 2023 totaled 474 , compared with 475 at December 31, 2022.
+Added: The decline in the number of securities in an unrealized loss position at September 30, 2023 was due to maturities and calls of securities in the quarter.
+Added: All securities in an unrealized loss position were investment grade at September 30, 2023.
Held to Maturity Debt Securities
−Removed: 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, 2023 and December 31, 2022 (in thousands):
−Removed: June 30, 2023
+Added: 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, 2023 and December 31, 2022 (in thousands):
+Added: September 30, 2023
+Added: Treasury Obligations $ 1,135 — — 1,135
Agency obligations 12,098 — ( 897 ) 11,201
8 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.
−Removed: There were no sales of securities from the held to maturity debt securities portfolio for the three and six months ended June 30, 2023 and 2022.
−Removed: For the three and six months ended June 30, 2023, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 3.5 million and $ 6.6 million, respectively.
−Removed: As to these calls on securities, for the three months ended June 30, 2023, there were gross gains of $ 28,000 and no gross losses, while for the six months ended June 30, 2023, gross gains totaled $ 24,000 , with no gross losses.
−Removed: 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.
−Removed: 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.
−Removed: The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio at June 30, 2023 by contractual maturity are shown below (in thousands).
+Added: There were no sales of securities from the held to maturity debt securities portfolio for the three and nine months ended September 30, 2023 and 2022.
+Added: For the three and nine months ended September 30, 2023, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $ 3.2 million and $ 9.8 million, respectively.
+Added: As to these calls on securities, for the three months ended September 30, 2023, there were gross gains of $ 16,000 and gross losses of $ 3,000 , while for the nine months ended September 30, 2023, gross gains totaled $ 45,000 , with gross losses of $ 8,000 .
+Added: 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.
+Added: As to these calls on securities, for the three months ended September 30, 2022, gross gains totaled $ 26,000 , with gross losses of $ 29,000 , while for the nine months ended September 30, 2022, gross gains totaled $ 129,000 , with $ 33,000 of gross losses.
+Added: The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio at September 30, 2023 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.
−Removed: June 30, 2023
+Added: September 30, 2023
Due in one year or less $ 30,561 30,363
3 unchanged sentences
$ 370,450 343,082
−Removed: The allowance for credit losses on held to maturity debt securities at June 30, 2023 and December 31, 2022 was $ 25,000 and $ 27,000 , respectively, and are excluded from amortized cost in the tables above.
−Removed: The number of held to maturity debt securities in an unrealized loss position at June 30, 2023 totaled 473 , compared with 439 at December 31, 2022.
−Removed: The increase in the number of securities in an unrealized loss position at June 30, 2023, was due to higher current market interest rates compared to rates at December 31, 2022.
+Added: The allowance for credit losses on held to maturity debt securities at September 30, 2023 and December 31, 2022 was $ 34,000 and $ 27,000 , respectively, and are excluded from amortized cost in the tables above.
+Added: The number of held to maturity debt securities in an unrealized loss position at September 30, 2023 totaled 591 , compared with 439 at December 31, 2022.
+Added: The increase in the number of securities in an unrealized loss position at September 30, 2023, was due to higher current market interest rates compared to rates at December 31, 2022.
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.
−Removed: The majority of the state and municipal and corporate obligations carry credit ratings from the rating agencies at June 30, 2023 no lower than A and the Company had no securities rated BBB or worse by Moody’s Investors Service.
+Added: The majority of the state and municipal and corporate obligations carry credit ratings from the rating agencies at September 30, 2023 no lower than A and the Company had no securities rated BBB or worse by Moody’s Investors Service.
Credit Quality Indicators.
−Removed: The following table provides the amortized cost of held to maturity debt securities by credit rating at June 30, 2023 and December 31, 2021 (in thousands):
−Removed: June 30, 2023
+Added: The following table provides the amortized cost of held to maturity debt securities by credit rating at September 30, 2023 and December 31, 2022 (in thousands):
+Added: September 30, 2023
Total Portfolio AAA AA A BBB Not Rated Total
+Added: Treasury obligations $ 1,135 — — — — 1,135
Agency obligations 12,098 — — — — 12,098
9 unchanged sentences
Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities.
−Removed: At June 30, 2023, the held to maturity debt securities portfolio was comprised of 16 % rated AAA, 45 % rated AA, 39 % rated A, and less than 1 % either below an A rating or not rated by Moody’s Investors Service or Standard and Poor’s.
+Added: At September 30, 2023, the held to maturity debt securities portfolio was comprised of 16 % rated AAA, 44 % rated AA, 39 % 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.
1 unchanged sentence
Loans Receivable and Allowance for Credit Losses
−Removed: Loans receivable at June 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
−Removed: June 30, 2023 December 31, 2022
+Added: Loans receivable at September 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
+Added: September 30, 2023 December 31, 2022
Mortgage loans:
11 unchanged sentences
The following tables summarize the aging of loans receivable by portfolio segment and class of loans (in thousands):
−Removed: June 30, 2023
+Added: September 30, 2023
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.
−Removed: The principal amounts of these non-accrual loans were $ 45.9 million and $ 58.5 million at June 30, 2023 and December 31, 2022, respectively.
−Removed: Included in non-accrual loans were $ 17.4 million and $ 42.9 million of loans which were less than 90 days past due at June 30, 2023 and December 31, 2022, respectively.
−Removed: There were no loans 90 days or greater past due and still accruing interest at June 30, 2023 and December 31, 2022.
−Removed: The activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2023 and 2022 was as follows (in thousands):
−Removed: Three months ended June 30, Mortgage loans Commercial loans Consumer loans Total
+Added: The principal amounts of these non-accrual loans were $ 39.5 million and $ 58.5 million at September 30, 2023 and December 31, 2022, respectively.
+Added: Included in non-accrual loans were $ 6.4 million and $ 42.9 million of loans which were less than 90 days past due at September 30, 2023 and December 31, 2022, respectively.
+Added: There were no loans 90 days or greater past due and still accruing interest at September 30, 2023 and December 31, 2022.
+Added: The activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2023 and 2022 was as follows (in thousands):
+Added: Three months ended September 30, Mortgage loans Commercial loans Consumer loans Total
Balance at beginning of period $ 69,940 29,707 2,426 102,073
4 unchanged sentences
Balance at beginning of period $ 55,064 21,387 2,566 79,017
−Removed: Provision charge (benefit) to operations 5,593 ( 2,710 ) 117 3,000
+Added: Provision charge to operations 4,991 3,381 28 8,400
Recoveries of loans previously charged-off 167 1,421 129 1,717
1 unchanged sentence
Balance at end of period $ 60,222 25,779 2,632 88,633
−Removed: Six months ended June 30, Mortgage loans Commercial loans Consumer loans Total
+Added: Nine months ended September 30, Mortgage loans Commercial loans Consumer loans Total
Balance at beginning of period $ 58,218 27,413 2,392 88,023
10 unchanged sentences
Balance at end of period $ 60,222 25,779 2,632 88,633
−Removed: For the three and six months ended June 30, 2023, the Company recorded a $ 10.4 million and a $ 16.4 million provision for credit losses on loans, respectively.
−Removed: The increase in provision was attributable to a worsened economic forecast and related deterioration in the projected commercial property price indices over the expected life of the loan portfolio within our CECL model.
−Removed: The following table summarizes the Company's gross charge-offs recorded during the three months ended June 30, 2023 by year of origination (in thousands):
+Added: For the three and nine months ended September 30, 2023, the Company recorded an $ 11.0 million and a $ 27.4 million provision for credit losses on loans, respectively.
+Added: The increase in provision was attributable to a worsened economic forecast and related deterioration in the projected commercial property price indices used in our CECL model.
+Added: For the three months ended September 30, 2023, net charge-offs totaled $ 5.5 million, which was primarily attributable to one commercial loan.
+Added: For the nine months ended September 30, 2023, net charge-offs totaled $ 7.3 million, which was primarily attributable to two commercial loans.
+Added: The following table summarizes the Company's gross charge-offs recorded during the three months ended September 30, 2023 by year of origination (in thousands):
2023 2022 2021 2020 2019 Prior to 2019 Total Loans
+Added: Mortgage loans:
+Added: Residential $ — — — — — 3 3
+Added: Total mortgage loans — — — — — 3 3
Commercial loans $ — — — 5,000 — 1,019 6,019
2 unchanged sentences
Total gross loans $ 7 — — 5,000 — 1,022 6,029
−Removed: (1) During the three months ended June 30, 2023, charge-offs on consumer overdraft accounts totaled $ 75,000 , which is not included in the table above.
−Removed: The following table summarizes the Company's gross charge-offs recorded during the six months ended June 30, 2023 by year of origination (in thousands):
+Added: (1) During the three months ended September 30, 2023, charge-offs on consumer overdraft accounts totaled $ 75,000 , which are not included in the table above.
+Added: The following table summarizes the Company's gross charge-offs recorded during the nine months ended September 30, 2023 by year of origination (in thousands):
2023 2022 2021 2020 2019 Prior to 2019 Total Loans
7 unchanged sentences
Total gross loans $ 16 — — 5,000 — 3,189 8,205
−Removed: (1) During the six months ended June 30, 2023, charge-offs on consumer overdraft accounts totaled $ 146,000 , which is not included in the table above.
+Added: (1) During the nine months ended September 30, 2023, charge-offs on consumer overdraft accounts totaled $ 221,000 , which are not included in the table above.
The Company defines a loan individually evaluated for impairment 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.
−Removed: At June 30, 2023, there were 17 loans totaling $ 37.1 million, compared to 10 loans totaling $ 42.8 million at December 31, 2022, that were individually evaluated for impairment.
+Added: At September 30, 2023, there were 18 loans totaling $ 30.4 million, compared to 10 loans totaling $ 42.8 million at December 31, 2022, that were individually evaluated for impairment.
A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral.
7 unchanged sentences
The Company believes there have been no significant time lapses resulting from this process.
−Removed: At June 30, 2023 and December 31, 2022, the Company had $ 14.6 million and $ 24.0 million related to the fair value of collateral-dependent loans individually evaluated for impairment, respectively.
−Removed: These loans at June 30, 2023 consisted of $ 14.6 million in commercial loans.
+Added: At September 30, 2023, the Company had collateral-dependent loans with a fair value of $ 5.0 million secured by business assets and $ 2.0 million secured by commercial real estate.
+Added: At December 31, 2022, the Company had collateral-dependent loans with a fair value of $ 21.3 million secured by commercial real estate, $ 1.9 million secured by business assets and $ 800,000 secured by residential real estate.
Loan modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearance, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral.
In addition, management attempts to obtain additional collateral or guarantor support when modifying such loans.
−Removed: If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue
+Added: If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest.
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.
15 unchanged sentences
As a result, The Company recorded a $ 594,000 reduction to the allowance for credit losses, which resulted in a $ 433,000 cumulative effect adjustment increase, net of tax to retained earnings.
−Removed: There were no loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2023.
−Removed: The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 (in thousands):
+Added: The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023 (in thousands):
+Added: For the three months ended September 30, 2023
Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans and Leases
+Added: Mortgage loans:
+Added: Multi-family $ — — 1,508 0.08 %
+Added: Total mortgage loans — — 1,508 0.02 %
+Added: Total gross loans $ — — 1,508 0.01 %
+Added: For the nine months ended September 30, 2023
+Added: Term Extension Interest Rate Reduction Interest Rate Reduction and Term Extension % of Total Class of Loans and Leases
+Added: Mortgage loans:
+Added: Multi-family $ — — 1,508 0.08 %
+Added: Total mortgage loans — — 1,508 0.02 %
Commercial loans 3,771 — 1,250 0.21 %
Total gross loans $ 3,771 — 2,758 0.06 %
−Removed: The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 (in thousands):
−Removed: Weighted-Average Months of Term Extension Weight-Average Rate Change
+Added: The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended September 30, 2023 (in thousands):
+Added: Weighted-Average Months of Term Extension Weighted-Average Rate Increase
+Added: Mortgage loans:
+Added: Multi-family 2 2.23 %
+Added: Total mortgage loans 2 2.23 %
+Added: Total gross loans 2 2.23 %
+Added: The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the nine months ended September 30, 2023 (in thousands):
+Added: Weighted-Average Months of Term Extension Weighted-Average Rate Increase
+Added: Mortgage loans:
+Added: Multi-family 2 2.23 %
+Added: Total mortgage loans 2 2.23 %
Commercial loans 10 0.20 %
Total gross loans 9 0.61 %
−Removed: There were no loan modifications made to borrowers experiencing financial difficulty during the three or six months ended June 30, 2023, that subsequently defaulted.
−Removed: The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 (in thousands):
+Added: There were no loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023, that subsequently defaulted.
+Added: The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the three months ended September 30, 2023 (in thousands):
Current 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due Non- Accrual Total
+Added: Mortgage loans:
+Added: Multi-family $ 1,508 — — — — 1,508
+Added: Total mortgage loans 1,508 — — — — 1,508
+Added: Total gross loans $ 1,508 — — — — 1,508
+Added: The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the nine months ended September 30, 2023 (in thousands):
+Added: Current 30-59 Days Past Due 60-89 Days Past Due 90 days or more Past Due Non- Accrual Total
+Added: Mortgage loans:
+Added: Multi-family $ 1,508 — — — — 1,508
+Added: Total mortgage loans 1,508 — — — — 1,508
Commercial loans 5,021 — — — — 5,021
3 unchanged sentences
Effective January 1, 2023, we adopted ASU 2022-02, which eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023.
−Removed: The following table presents the number of loans modified as TDRs during the three and six months ended June 30, 2022, along with their balances immediately prior to the modification date and post-modification as of June 30, 2022 (in thousands):
−Removed: For the three and six months ended
−Removed: June 30, 2022
+Added: The following tables present the number of loans modified as TDRs during the three and nine months ended September 30, 2022, along with their balances immediately prior to the modification date and post-modification as of September 30, 2022 (in thousands):
+Added: For the three months ended
+Added: September 30, 2022
Troubled Debt Restructurings Number of
2 unchanged sentences
Recorded Investment
+Added: Consumer loans 1 108 88
+Added: Total restructured loans 1 $ 108 88
+Added: For the nine months ended
+Added: September 30, 2022
+Added: Troubled Debt Restructurings Number of
+Added: Loans Pre-Modification
+Added: Investment Post-Modification
+Added: Recorded Investment
Mortgage loans:
3 unchanged sentences
Commercial loans 2 378 273
+Added: Consumer loans 1 108 88
Total restructured loans 6 $ 2,369 $ 2,148
−Removed: Durin g the three and six months ended June 30, 2022, $ 921,000 of charge-offs were recorded on collateral-dependent impaired loans.
−Removed: There was one loan totaling $ 209,000 which had a payment default (90 days or more past due) for a loan modified as a TDR within the 12 month period ending June 30, 2023.
+Added: Durin g the nine months ended September 30, 2022, $ 921,000 of charge-offs were recorded on collateral-dependent impaired loans.
+Added: There was one loan totaling $ 209,000 which had a payment default (90 days or more past due) for a loan modified as a TDR within the 12 month period ending September 30, 2023.
For TDRs that subsequently defaulted, the Company determined 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.
−Removed: At June 30, 2023, the balance of PCD loans totaled $ 173.3 million with a related allowance for credit losses of $ 1.6 million.
+Added: At September 30, 2023, the balance of PCD loans totaled $ 166.9 million with a related allowance for credit losses of $ 1.5 million.
The balance of PCD loans at December 31, 2022 was $ 193.0 million with a related allowance for credit losses of $ 1.7 million.
8 unchanged sentences
The Company participated in the Paycheck Protection Program (“PPP”) through the United States Department of the Treasury and Small Business Administration.
−Removed: PPP loans were fully guaranteed by the SBA and were eligible for forgiveness by the SBA to the extent that the proceeds were used to cover eligible payroll costs, interest costs, rent, and utility costs over a period of up
−Removed: to 24 weeks after the loan was made as long as certain conditions were met regarding employee retention and compensation levels.
+Added: PPP loans were fully guaranteed by the SBA and were eligible for forgiveness by the SBA to the extent that the proceeds were used to cover eligible payroll costs, interest costs, rent, and utility costs over a period of up to 24 weeks after the loan was made as long as certain conditions were met regarding employee retention and compensation levels.
PPP loans deemed eligible for forgiveness by the SBA are to be repaid by the SBA to the Company.
2 unchanged sentences
Under the PPP, the Company secured 2,067 PPP loans for its customers totaling $ 682.0 million.
−Removed: As of June 30, 2023, 2,054 PPP loans totaling $ 679.4 million were forgiven and repaid by the SBA.
−Removed: The balance of PPP loans at June 30, 2023 was $ 2.6 million.
−Removed: 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, 2023 and December 31, 2022 (in thousands):
+Added: As of September 30, 2023, 2,054 PPP loans totaling $ 679.4 million were forgiven and repaid by the SBA.
+Added: The balance of PPP loans at September 30, 2023 was $ 2.6 million.
+Added: 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, 2023 and December 31, 2022 (in thousands):
Gross Loans Held for Investment by Year of Origination
−Removed: at June 30, 2023
+Added: at September 30, 2023
2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Revolving loans to term loans Total Loans
17 unchanged sentences
Doubtful — — — — — — — — —
+Added: Gross Loans Held for Investment by Year of Origination
+Added: at September 30, 2023
+Added: 2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Revolving loans to term loans Total Loans
Loss — — — — — — — — —
10 unchanged sentences
Total residential $ 74,488 143,683 203,069 200,617 90,630 455,083 — — 1,167,570
−Removed: Gross Loans Held for Investment by Year of Origination
−Removed: at June 30, 2023
−Removed: 2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Revolving loans to term loans Total Loans
Total Mortgage
23 unchanged sentences
Doubtful — — — 1,903 — — — — 1,903
+Added: Gross Loans Held for Investment by Year of Origination
+Added: at September 30, 2023
+Added: 2023 2022 2021 2020 2019 Prior to 2019 Revolving Loans Revolving loans to term loans Total Loans
Loss — — — — — — — — —
8 unchanged sentences
Special mention $ — — 3,071 26,809 52,509 14,740 — — 97,129
−Removed: Gross Loans Held for Investment by Year of Origination
−Removed: at December 31, 2022
−Removed: 2022 2021 2020 2019 2018 Prior to 2018 Revolving Loans Revolving loans to term loans Total Loans
Substandard — — — — 18,020 11,774 434 — 30,228
20 unchanged sentences
Special mention $ — — — — — 1,114 — — 1,114
+Added: Gross Loans Held for Investment by Year of Origination
+Added: at December 31, 2022
+Added: 2022 2021 2020 2019 2018 Prior to 2018 Revolving Loans Revolving loans to term loans Total Loans
Substandard — — — — 264 4,417 — — 4,681
10 unchanged sentences
Total criticized and classified — — 3,071 29,006 91,298 45,036 434 — 168,845
−Removed: Gross Loans Held for Investment by Year of Origination
−Removed: at December 31, 2022
−Removed: 2022 2021 2020 2019 2018 Prior to 2018 Revolving Loans Revolving loans to term loans Total Loans
Pass/Watch 1,413,668 1,356,116 1,164,188 915,938 481,262 2,109,679 95,603 17,896 7,554,350
20 unchanged sentences
Pass/Watch 1,821,462 1,697,121 1,329,272 1,093,770 584,814 2,720,650 704,097 62,248 10,013,434
+Added: Gross Loans Held for Investment by Year of Origination
+Added: at December 31, 2022
+Added: 2022 2021 2020 2019 2018 Prior to 2018 Revolving Loans Revolving loans to term loans Total Loans
Total gross loans $ 1,821,537 1,705,874 1,343,025 1,127,368 689,938 2,784,277 726,874 62,752 10,261,645
(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.
−Removed: Deposits at June 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
−Removed: June 30, 2023 December 31, 2022
+Added: Deposits at September 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
+Added: September 30, 2023 December 31, 2022
Savings $ 1,200,377 1,438,583
5 unchanged sentences
Borrowed Funds
−Removed: Borrowed funds at June 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
−Removed: June 30, 2023 December 31, 2022
+Added: Borrowed funds at September 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
+Added: September 30, 2023 December 31, 2022
Securities sold under repurchase agreements $ 79,967 98,000
2 unchanged sentences
Total borrowed funds $ 2,022,249 1,337,370
−Removed: At June 30, 2023, FHLB advances were at fixed rates and mature between July 2023 and September 2026, and at December 31, 2022, FHLB advances were at fixed rates with maturities between January 2023 and July 2025.
+Added: At September 30, 2023, FHLB advances were at fixed rates and mature between October 2023 and September 2027, and at December 31, 2022, FHLB advances were at fixed rates with maturities between January 2023 and July 2025.
These advances are secured by loans receivable under a blanket collateral agreement.
−Removed: Scheduled maturities of FHLB advances and overnight borrowings at June 30, 2023 are as follows (in thousands):
+Added: Scheduled maturities of FHLB advances and overnight borrowings at September 30, 2023 are as follows (in thousands):
Due in one year or less $ 1,133,477
3 unchanged sentences
Total FHLB advances and overnight borrowings $ 1,942,282
−Removed: Scheduled maturities of securities sold under repurchase agreements at June 30, 2023 are as follows (in thousands):
+Added: Scheduled maturities of securities sold under repurchase agreements at September 30, 2023 are as follows (in thousands):
Due in one year or less $ 79,967
Total securities sold under repurchase agreements $ 79,967
−Removed: The following tables set forth certain information as to borrowed funds for the periods ended June 30, 2023 and December 31, 2022 (in thousands):
+Added: The following tables set forth certain information as to borrowed funds for the periods ended September 30, 2023 and December 31, 2022 (in thousands):
Weighted average
interest rate
−Removed: June 30, 2023
+Added: September 30, 2023
Securities sold under repurchase agreements $ 99,669 89,437 1.60 %
7 unchanged sentences
The Bank uses available for sale debt securities to pledge as collateral for the repurchase agreements.
−Removed: At June 30, 2023 and December 31, 2022, available for sale debt securities pledged as collateral for repurchase agreements totaled $ 95.5 million and $ 116.5 million, respectively.
−Removed: Interest expense on borrowings for the three and six months ended June 30, 2023 amounted to $ 14.1 million and $ 21.6 million, respectively.
−Removed: Interest expense on borrowings for the three and six months ended June 30, 2022 amounted to $ 1.1 million and $ 2.3 million, respectively.
+Added: At September 30, 2023 and December 31, 2022, available for sale debt securities pledged as collateral for repurchase agreements totaled $ 89.5 million and $ 116.5 million, respectively.
+Added: Interest expense on borrowings for the three and nine months ended September 30, 2023 amounted to $ 16.8 million and $ 38.3 million, respectively.
+Added: Interest expense on borrowings for the three and nine months ended September 30, 2022 amounted to $ 2.5 million and $ 4.8 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.
−Removed: Net periodic (benefit) increase cost for pension benefits and other post-retirement benefits for the three and six months ended June 30, 2023 and 2022 includes the following components (in thousands):
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Net periodic (benefit) increase cost for pension benefits and other post-retirement benefits for the three and nine months ended September 30, 2023 and 2022 includes the following components (in thousands):
+Added: 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, 2022, the Company previously disclosed that it does not expect to contribute to the pension plan in 2023.
−Removed: As of June 30, 2023, no contributions have been made to the pension plan.
−Removed: The changes in net periodic benefit cost for pension benefits and other post-retirement benefits for the three and six months ended June 30, 2023 were calculated using the January 1, 2023 pension and other post-retirement benefits actuarial valuations.
+Added: As of September 30, 2023, no contributions have been made to the pension plan.
+Added: The changes in net periodic benefit cost for pension benefits and other post-retirement benefits for the three and nine months ended September 30, 2023 were calculated using the January 1, 2023 pension and other post-retirement benefits actuarial valuations.
Impact of Recent Accounting Pronouncements
15 unchanged sentences
The Company adopted this standard on January 1, 2023 on a prospective basis, with no impact to the consolidated financial statements.
−Removed: Accounting Pronouncements Not Yet Adopted
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.
3 unchanged sentences
ASU 2020-04 also provides numerous optional expedients for derivative accounting.
−Removed: ASU 2020-04 is effective March 12, 2020 through December 31, 2022.
−Removed: An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued.
−Removed: Once elected for a Topic or an Industry Subtopic within the Codification, the amendments in this ASU must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic.
−Removed: The Company anticipates this ASU will simplify any modifications we execute between the selected start date (yet to be determined) and December 31, 2022 that are directly related to LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than the extinguishment of the old contract resulting in writing off unamortized fees/costs.
In addition, in January 2021, the FASB issued ASU No.
2021-01 “Reference Rate Reform — Scope,” which clarified the scope of ASC 848 relating to contract modifications.
−Removed: In the fourth quarter of 2019, the Company formed a cross-functional team to develop transition plans for the LIBOR cessation to address potential revisions to documentation, as well as customer management and communication, internal training, financial, operational and risk management implications, and legal and contract management.
−Removed: The working group is comprised of individuals from various functional areas including lending, risk management, finance and credit, among others.
−Removed: In addition, the Company has engaged with its regulators and with industry working groups and trade associations to develop strategies for transitioning away from LIBOR.
−Removed: 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.
−Removed: The Company has determined that the LIBOR transition and this guidance will not have a material effect on the Company's business operations and consolidated financial statements.
+Added: The Company has reviewed all of its LIBOR-based products and all products have been adjusted to another index or are scheduled to be adjusted at their next repricing, as LIBOR ceased to be published after June 30,
+Added: The Company adjusted its processes and procedures related to the amendments and it did not have a material impact to the Company’s financial position and results and operations.
+Added: Contingencies
+Added: The Company is involved in various litigation and claims arising in the normal course of business.
+Added: Liabilities for loss contingencies arising from such litigation and claims are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated.
+Added: On May 2, 2022, a purported class action complaint was filed against Provident Bank in the Superior Court of New Jersey, which alleges that Provident wrongfully assessed overdraft fees related to debit card transactions.
+Added: The complaint asserts claims for breach of contract and breach of the covenant of good faith and fair dealing as well as an alleged violation of the New Jersey Consumer Fraud Act.
+Added: Plaintiff seeks to represent a proposed class of all Provident Bank checking account customers who were charged overdraft fees on transactions that were authorized into a positive available balance.
+Added: Plaintiff seeks unspecified damages, costs, attorneys’ fees, pre-judgment interest, an injunction, and other relief as the Court deems proper for the plaintiff and the proposed class.
+Added: Provident Bank denies the allegations and is vigorously defending the matter.
+Added: The parties had an initial mediation meeting on October 20, 2023, and the matter remains pending.
+Added: Although we are vigorously defending the litigation, the ultimate outcome of this litigation described in this section, such as whether the likelihood of loss is remote, reasonably possible, or probable, or if and when the reasonably possible range of loss is estimable, is inherently uncertain.
+Added: Therefore, if this matter was resolved against us, our results of operations and financial condition, including in a particular reporting period in which any such outcome becomes probable and estimable, could be adversely affected.
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 that may default includes an estimated drawdown of unused credit based on historical credit utilization factors and current loss factors.
−Removed: For the three and six months ended June 30, 2023, the Company recorded a $ 647,000 negative provision and a $ 92,000 provision for credit losses for off-balance sheet credit exposures, respectively.
−Removed: For the three and six months ended June 30, 2022, the Company recorded a $ 973,000 and a $ 3.4 million negative provision for credit losses for off-balance sheet credit exposures, respectively.
−Removed: The $ 326,000 increase in the provision for the three months ended June 30, 2023, compared to the same period in 2022, was primarily the result of the period-over-period relative change in line of credit utilization.
−Removed: The $ 3.5 million increase in the provision for the six months ended June 30, 2023, compared to the six months ended June 30, 2022, was primarily the result of the period-over-period relative change in line of credit utilization and an increase in projected loss factors as a result of a worsened economic forecast.
−Removed: The allowance for credit losses for off-balance sheet credit exposures was $ 3.2 million at June 30, 2023 and December 31, 2022, and are included in other liabilities on the Consolidated Statements of Financial Condition.
+Added: For the three and nine months ended September 30, 2023, the Company recorded a $ 1.5 million and a $ 1.6 million provision for credit losses for off-balance sheet credit exposures, respectively.
+Added: For the three and nine months ended September 30, 2022, the Company recorded a $ 1.6 million provision for credit losses for off-balance sheet credit exposures and a $ 1.8 million provision benefit for credit losses for off-balance sheet credit exposures, respectively.
+Added: The $ 43,000 decrease in the provision for the three months ended September 30, 2023, compared to the same period in 2022, was primarily the result of the period-over-period relative change in line of credit utilization.
+Added: The $ 3.4 million increase in the provision for the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022, was primarily the result of the period-over-period relative change in line of credit utilization and an increase in loans approved and awaiting closing.
+Added: The allowance for credit losses for off-balance sheet credit exposures was $ 4.8 million at September 30, 2023 and $ 3.2 million at December 31, 2022, and are included in other liabilities on the Consolidated Statements of Financial Condition.
Fair Value Measurements
14 unchanged sentences
Assets and Liabilities Measured at Fair Value on a Recurring Basis
−Removed: 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, 2023 and December 31, 2022.
+Added: 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, 2023 and December 31, 2022.
Available for Sale Debt Securities, at Fair Value
18 unchanged sentences
These derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings and brokered demand deposits.
−Removed: The change in the fair value of these derivatives is recorded in accumulated other
−Removed: comprehensive income (loss), and is subsequently reclassified into earnings in the period that the forecasted transactions affect earnings.
+Added: The change in the fair value of these derivatives is recorded in accumulated other comprehensive income (loss), and is subsequently reclassified into earnings in the period that the forecasted transactions affect earnings.
The fair value of the Company's derivatives is determined using discounted cash flow analysis using observable market-based inputs, which are considered Level 2 inputs.
Assets Measured at Fair Value on a Non-Recurring Basis
−Removed: The valuation techniques described below were used to estimate fair value of financial instruments measured on a non-recurring basis as of June 30, 2023 and December 31, 2022.
+Added: The valuation techniques described below were used to estimate fair value of financial instruments measured on a non-recurring basis as of September 30, 2023 and December 31, 2022.
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.
−Removed: There were no changes to the valuation techniques for fair value measurements as of June 30, 2023 or December 31, 2022.
−Removed: The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair values as of June 30, 2023 and December 31, 2022, by level within the fair value hierarchy (in thousands):
+Added: There were no changes to the valuation techniques for fair value measurements as of September 30, 2023 or December 31, 2022.
+Added: The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair values as of September 30, 2023 and December 31, 2022, by level within the fair value hierarchy (in thousands):
Fair Value Measurements at Reporting Date Using:
−Removed: June 30, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
+Added: September 30, 2023 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:
33 unchanged sentences
$ 26,112 — — 26,112
−Removed: There were no transfers between Level 1, Level 2 and Level 3 during the three and six months ended June 30, 2023.
+Added: There were no transfers into or out of Level 3 during the three and nine months ended September 30, 2023.
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.
−Removed: At June 30, 2023 and December 31, 2022, $ 70,000 was included in cash and cash equivalents, representing cash collateral pledged to secure loan level swaps, risk participation agreements and reserves required by banking regulations.
+Added: At September 30, 2023 and December 31, 2022, $ 70,000 was included in cash and cash equivalents, representing cash collateral pledged to secure loan level swaps, risk participation agreements and reserves required by banking regulations.
Held to Maturity Debt Securities
43 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.
−Removed: The following tables present the Company’s financial instruments at their carrying and fair values as of June 30, 2023 and December 31, 2022.
+Added: The following tables present the Company’s financial instruments at their carrying and fair values as of September 30, 2023 and December 31, 2022.
Fair values are presented by level within the fair value hierarchy.
−Removed: Fair Value Measurements at June 30, 2023 Using:
+Added: Fair Value Measurements at September 30, 2023 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)
10 unchanged sentences
Held to maturity debt securities, net of allowance for credit losses:
+Added: Treasury obligations 1,135 1,135 1,135 — —
Agency obligations 12,098 11,201 11,201 — —
41 unchanged sentences
Other Comprehensive (Loss) Income
−Removed: The following table presents the components of other comprehensive (loss) income, both gross and net of tax, for the three and six months ended June 30, 2023 and 2022 (in thousands):
−Removed: Three months ended June 30,
+Added: The following table presents the components of other comprehensive (loss), both gross and net of tax, for the three and nine months ended September 30, 2023 and 2022 (in thousands):
+Added: Three months ended September 30,
Components of Other Comprehensive Income:
Unrealized gains and losses on available for sale debt securities:
−Removed: Net unrealized (losses) gains arising during the period $ ( 20,178 ) 5,452 ( 14,726 ) ( 62,477 ) 16,744 ( 45,733 )
+Added: Net unrealized (losses) arising during the period $ ( 42,784 ) 11,560 ( 31,224 ) ( 91,930 ) 24,637 ( 67,293 )
Reclassification adjustment for gains included in net income — — — — — —
1 unchanged sentence
Unrealized gains and losses on derivatives (cash flow hedges):
−Removed: Net unrealized gains (losses) arising during the period 5,002 ( 1,352 ) 3,650 3,110 ( 834 ) 2,276
+Added: Net unrealized gains arising during the period 3,223 ( 871 ) 2,352 8,194 ( 2,196 ) 5,998
Reclassification adjustment for (gains) included in net income ( 4,700 ) 1,270 ( 3,430 ) ( 1,580 ) 423 ( 1,157 )
1 unchanged sentence
Amortization related to post-retirement obligations ( 355 ) 94 ( 261 ) ( 326 ) 90 ( 236 )
−Removed: Total other comprehensive (loss) income $ ( 19,658 ) 5,311 ( 14,347 ) ( 59,909 ) 16,056 ( 43,853 )
−Removed: Six months ended June 30,
+Added: Total other comprehensive (loss) $ ( 44,616 ) 12,053 ( 32,563 ) ( 85,642 ) 22,954 ( 62,688 )
+Added: Nine months ended September 30,
Components of Other Comprehensive Income:
Unrealized gains and losses on available for sale debt securities:
−Removed: Net unrealized gains (losses) arising during the period $ 7,641 ( 1,503 ) 6,138 ( 178,558 ) 47,854 ( 130,704 )
+Added: Net unrealized (losses) arising during the period $ ( 34,271 ) 9,185 ( 25,086 ) ( 270,488 ) 72,491 ( 197,997 )
Reclassification adjustment for gains included in net income — — — ( 58 ) 16 ( 42 )
1 unchanged sentence
Unrealized gains and losses on derivatives (cash flow hedges):
−Removed: Net unrealized gains (losses) arising during the period 4,219 ( 1,186 ) 3,033 16,703 ( 4,476 ) 12,227
−Removed: Reclassification adjustment for (gains) losses included in net income ( 8,343 ) 2,254 ( 6,089 ) 504 ( 135 ) 369
+Added: Net unrealized gains arising during the period 7,380 ( 1,995 ) 5,385 24,898 ( 6,673 ) 18,225
+Added: Reclassification adjustment for (gains) included in net income ( 13,043 ) 3,524 ( 9,519 ) ( 1,077 ) 289 ( 788 )
Total ( 5,663 ) 1,529 ( 4,134 ) 23,821 ( 6,384 ) 17,437
Amortization related to post-retirement obligations ( 1,067 ) 276 ( 791 ) ( 978 ) 230 ( 748 )
−Removed: Total other comprehensive income (loss) $ 2,790 ( 238 ) 2,552 ( 162,109 ) 43,447 ( 118,662 )
−Removed: The following tables present the changes in the components of accumulated other comprehensive (loss), net of tax, for the three and six months ended June 30, 2023 and 2022 (in thousands):
+Added: Total other comprehensive (loss) $ ( 41,001 ) 10,990 ( 30,011 ) ( 247,703 ) 66,353 ( 181,350 )
+Added: The following tables present the changes in the components of accumulated other comprehensive (loss), net of tax, for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Changes in Accumulated Other Comprehensive (Loss) by Component, net of tax
−Removed: for the three months ended June 30,
+Added: for the three months ended September 30,
Available for Sale Debt Securities Post- Retirement
1 unchanged sentence
Comprehensive
−Removed: Loss Unrealized Gains on
+Added: (Loss) Unrealized Losses on
Available for Sale Debt Securities Post- Retirement
−Removed: Obligations Unrealized Losses on Derivatives (cash flow hedges) Accumulated
+Added: Obligations Unrealized Gains on Derivatives (cash flow hedges) Accumulated
Comprehensive (Loss)
−Removed: March 31, $ ( 165,750 ) 1,303 16,301 ( 148,146 ) ( 85,182 ) 2,705 14,531 ( 67,946 )
+Added: June 30, $ ( 180,476 ) 1,042 16,941 ( 162,493 ) ( 130,957 ) 2,469 16,689 ( 111,799 )
Current - period other comprehensive (loss) ( 31,224 ) ( 261 ) ( 1,078 ) ( 32,563 ) ( 67,293 ) ( 236 ) 4,841 ( 62,688 )
−Removed: Balance at June 30, $ ( 180,476 ) 1,042 16,941 ( 162,493 ) ( 130,957 ) 2,469 16,689 ( 111,799 )
+Added: Balance at September 30, $ ( 211,700 ) 781 15,863 ( 195,056 ) ( 198,250 ) 2,233 21,530 ( 174,487 )
Changes in Accumulated Other Comprehensive (Loss) by Component, net of tax
−Removed: for the six months ended June 30,
+Added: for the nine months ended September 30,
Available for Sale Debt Securities Post- Retirement
1 unchanged sentence
Comprehensive
−Removed: Income (Loss) Unrealized Gains (Losses) on
+Added: Income (Loss) Unrealized Losses on
Available for Sale Debt Securities Post- Retirement
−Removed: Obligations Unrealized Gains (Losses) on Derivatives (cash flow hedges) Accumulated
+Added: Obligations Unrealized Gains on Derivatives (cash flow hedges) Accumulated
Comprehensive Income (Loss)
1 unchanged sentence
Current - period other comprehensive income (loss) ( 25,086 ) ( 791 ) ( 4,134 ) ( 30,011 ) ( 198,039 ) ( 748 ) 17,437 ( 181,350 )
−Removed: Balance at June 30, $ ( 180,476 ) 1,042 16,941 ( 162,493 ) ( 130,957 ) 2,469 16,689 ( 111,799 )
−Removed: The following tables summarize the reclassifications from accumulated other comprehensive (loss) to the consolidated statements of income for the three and six months ended June 30, 2023 and 2022 (in thousands):
+Added: Balance at September 30, $ ( 211,700 ) 781 15,863 ( 195,056 ) ( 198,250 ) 2,233 21,530 ( 174,487 )
+Added: The following tables summarize the reclassifications from accumulated other comprehensive (loss) to the consolidated statements of income for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Reclassifications From Accumulated Other Comprehensive
Income ("AOCI")
−Removed: Amount reclassified from AOCI for the three months ended June 30, Affected line item in the Consolidated
+Added: Amount reclassified from AOCI for the three months ended September 30, Affected line item in the Consolidated
Statement of Income
15 unchanged sentences
Income ("AOCI")
−Removed: Amount reclassified from AOCI for the six months ended June 30, Affected line item in the Consolidated
+Added: Amount reclassified from AOCI for the nine months ended September 30, Affected line item in the Consolidated
Statement of Income
5 unchanged sentences
Cash flow hedges:
−Removed: Realized net (gains) losses on derivatives $ ( 8,343 ) 504 Interest expense
+Added: Realized net gains on derivatives $ ( 13,043 ) ( 1,077 ) Interest expense
3,524 289 Income tax expense
17 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.
−Removed: At June 30, 2023 and December 31, 2022, the Company had 152 loan related interest rate swaps with aggregate notional amounts of $ 2.23 billion and $ 2.40 billion, respectively.
+Added: At September 30, 2023 and December 31, 2022, the Company had 152 loan related interest rate swaps with aggregate notional amounts of $ 2.22 billion and $ 2.40 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.
−Removed: For June 30, 2023 and December 31, 2022, the Company had 12 and 14 credit derivatives, respectively, with aggregate notional amounts of $ 143.5 million and $ 157.9 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements.
−Removed: At June 30, 2023, the asset and liability positions of these fair value credit derivatives totaled $ 47,000 and $ 11,000 , respectively, compared to $ 26,000 and $ 12,000 , respectively, at December 31, 2022.
+Added: For September 30, 2023 and December 31, 2022, the Company had 12 and 14 credit derivatives, respectively, with aggregate notional amounts of $ 143.3 million and $ 157.9 million, respectively, from participations in interest rate swaps as part of these loan participation arrangements.
+Added: At September 30, 2023, the asset and liability positions of these fair value credit derivatives totaled $ 9,000 and $ 4,000 , respectively, compared to $ 26,000 and $ 12,000 , respectively, at December 31, 2022.
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 (loss) income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.
−Removed: During the three and six months ended June 30, 2023 and 2022, such derivatives were used to hedge the variable cash outflows associated with FHLBNY borrowings and brokered demand deposits.
+Added: During the three and nine months ended September 30, 2023 and 2022, 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 $ 15.5 million will be reclassified as a reduction to interest expense.
−Removed: At June 30, 2023, the Company had nine outstanding interest rate derivatives with an aggregate notional amount of $ 405.0 million that were each designated as a cash flow hedge of interest rate risk.
+Added: At September 30, 2023, the Company had 9 outstanding interest rate derivatives with an aggregate notional amount of $ 455.0 million that were each designated as a cash flow hedge of interest rate risk, compared to 11 outstanding interest rate derivatives with an aggregate notional amount of $ 460.0 million, at December 31, 2022.
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.
−Removed: 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, 2023 and December 31, 2022 (in thousands).
−Removed: Fair Values of Derivative Instruments as of June 30, 2023
+Added: 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, 2023 and December 31, 2022 (in thousands).
+Added: Fair Values of Derivative Instruments as of September 30, 2023
Asset Derivatives Liability Derivatives
34 unchanged sentences
Therefore, excess cash collateral, if any, is not reflected above.
−Removed: (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, 2023 and December 31, 2022.
−Removed: 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, 2023 and 2022 (in thousands).
+Added: (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 September 30, 2023 and December 31, 2022.
+Added: 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, 2023 and 2022 (in thousands).
Gain (loss) recognized in income on derivatives for the three months ended
−Removed: Consolidated Statements of Income June 30, 2023 June 30, 2022
+Added: Consolidated Statements of Income September 30, 2023 September 30, 2022
Derivatives not designated as a hedging instrument:
3 unchanged sentences
Derivatives designated as a hedging instrument:
−Removed: Interest rate products Interest (income) expense $ ( 4,124 ) ( 162 )
+Added: Interest rate products Interest (benefit) expense $ ( 4,670 ) ( 1,581 )
Total $ ( 4,670 ) ( 1,581 )
−Removed: Gain (loss) recognized in income on derivatives for the six months ended
−Removed: Consolidated Statements of Income June 30, 2023 June 30, 2022
+Added: Gain (loss) recognized in income on derivatives for the nine months ended
+Added: Consolidated Statements of Income September 30, 2023 September 30, 2022
Derivatives not designated as a hedging instrument:
3 unchanged sentences
Derivatives designated as a hedging instrument:
−Removed: Interest rate products Interest (income) expense $ ( 8,343 ) 504
+Added: Interest rate products Interest (benefit) expense $ ( 13,043 ) ( 1,077 )
Total $ ( 13,043 ) ( 1,077 )
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.
−Removed: At June 30, 2023, the Company had four dealer counterparties.
+Added: At September 30, 2023, 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.
−Removed: For both the three and six months ended June 30, 2023, the out-of-scope revenue related to financial instruments was 88.5 % and 87.6 % of the Company's total revenue, compared to 83.5 % for the three and six months ended June 30, 2022, respectively.
+Added: For both the three and nine months ended September 30, 2023, the out-of-scope revenue related to financial instruments was 89.1 % and 88.1 % of the Company's total revenue, compared to 81.1 % and 82.56 % for the three and nine months ended September 30, 2022, 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.
−Removed: 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, 2023 and 2022 (in thousands):
−Removed: Three months ended June 30, Six months ended June 30,
+Added: 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, 2023 and 2022 (in thousands):
+Added: Three months ended September 30, Nine months ended September 30,
2023 2022 2023 2022
22 unchanged sentences
Profit-sharing contingent commissions are recognized when determinable, which is generally when such commissions are received from insurance companies, or when the Company receives formal notification of the amount of such payments.
−Removed: Service charges on deposit accounts include overdraft service fees, account analysis fees and other deposit related fees.
+Added: Service charges on deposit accounts include account analysis fees and other deposit-related fees.
These fees are generally transaction-based, or time-based services.
8 unchanged sentences
None of these revenue streams are subject to the requirements of Topic 606.
−Removed: 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, 2023 and December 31, 2021 (in thousands):
−Removed: Classification June 30, 2023 December 31, 2022
+Added: 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, 2023 and December 31, 2022 (in thousands):
+Added: Classification September 30, 2023 December 31, 2022
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.
−Removed: At June 30, 2023, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 8.3 years and 2.71 %, respectively.
+Added: At September 30, 2023, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 8.1 years and 2.72 %, 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):
−Removed: Three months ended June 30, 2023 Three months ended June 30, 2022
+Added: Three months ended September 30, 2023 Three months ended September 30, 2022
Operating lease cost $ 2,633 2,613
1 unchanged sentence
Total lease cost $ 3,411 3,280
−Removed: Six months ended June 30, 2023 Six months ended June 30, 2022
+Added: Nine months ended September 30, 2023 Nine months ended September 30, 2022
Operating lease cost $ 7,890 8,006
2 unchanged sentences
Cash paid for amounts included in the measurement of lease liabilities:
−Removed: Six months ended June 30, 2023 Six months ended June 30, 2022
+Added: Nine months ended September 30, 2023 Nine months ended September 30, 2022
Operating cash flows from operating leases $ 7,346 6,328
−Removed: Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2023, were as follows (in thousands):
+Added: Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2023, 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.