The Company and Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if imposed, could have a direct material impact on the Company’s Consolidated Financial Statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital to average assets (as defined). As of year-end 2022 and 2021, the Bank and the Company met the capital adequacy requirements. Regulators may set higher expected capital requirements in some cases based on their examinations.

At December 31, 2022, the capital levels of both the Company and the Bank exceeded all regulatory capital requirements and their regulatory capital ratios were above the minimum levels. The capital levels of both the Company and the Bank at December 31, 2022 also exceeded the minimum capital requirements including the currently applicable BASEL III capital conservation buffer of 1.875%.

As of year-end 2022 and 2021, the Bank met the conditions to be classified as “well capitalized” under the relevant regulatory framework. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following tables.


					Minimum Capital Requirement
	Actual
(Dollars in thousands)	Amount		Ratio		Amount		Ratio
December 31, 2022
Company (Consolidated)
Total capital to risk-weighted assets	$	1,336,029	14.60	%	$	732,070	8.00	%
Common Equity Tier 1 Capital to risk weighted assets	1,130,522		12.35		411,789		4.50
Tier 1 capital to risk-weighted assets	1,152,808		12.60		549,052		6.00
Tier 1 capital to average assets	1,152,808		10.18		366,035		4.00
Total risk-weighted assets	9,150,869		N/A		N/A		N/A

December 31, 2021
Company (Consolidated)
Total capital to risk-weighted assets	$	1,359,470	17.32	%	$	628,026	8.00	%
Common Equity Tier 1 Capital to risk weighted assets	1,178,497		15.01		353,265		4.50
Tier 1 capital to risk-weighted assets	1,200,732		15.30		471,020		6.00
Tier 1 capital to average assets	1,200,732		10.49		314,013		4.00
Total risk-weighted assets	7,850,331		N/A		N/A		N/A


					Minimum Capital Requirement				Minimum to be Well Capitalized Under Prompt Corrective Action Provisions
	Actual
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2022
Bank
Total capital to risk-weighted assets	$	1,239,722	13.56	%	$	731,259	8.00	%	$	914,074	10.00	%
Common Equity Tier 1 Capital to risk weighted assets	1,155,280		12.64		411,333		4.50		594,148		6.50
Tier 1 capital to risk-weighted assets	1,155,280		12.64		548,444		6.00		731,259		8.00
Tier 1 capital to average assets	1,155,280		10.20		365,629		4.00		457,037		5.00
Total risk-weighted assets	9,140,737		N/A		N/A		N/A		N/A		N/A

December 31, 2021
Bank
Total capital to risk-weighted assets	$	1,244,604	15.87	%	$	627,478	8.00	%	$	784,348	10.00	%
Common Equity Tier 1 Capital to risk weighted assets	1,160,458		14.80		352,956		4.50		509,826		6.50
Tier 1 capital to risk-weighted assets	1,160,458		14.80		470,609		6.00		627,478		8.00
Tier 1 capital to average assets	1,160,458		10.13		313,739		4.00		392,174		5.00
Total risk-weighted assets	7,843,477		N/A		N/A		N/A		N/A		N/A

The Bank is subject to dividend restrictions imposed by various regulators, including a limitation on the total of all dividends that the Bank may pay to the Company in any calendar year. The total of all dividends shall not exceed the Bank’s net income for the current year (as defined by statute), plus the Bank’s net income retained for the two previous years, without regulatory approval. Dividends from the Bank are an important source of funds to the Company to make dividend payments on its common and preferred stock, to make payments on its borrowings, and for its other cash needs. The ability of the Company and the Bank to pay dividends is dependent on regulatory policies and regulatory capital requirements. The ability to pay such dividends in the future may be adversely affected by new legislation or regulations, or by changes in regulatory policies relating to capital, safety and soundness, and other regulatory concerns.

The payment of dividends by the Company is subject to Delaware law, which generally limits dividends to an amount equal to an excess of the net assets of a company (the amount by which total assets exceed total liabilities) over statutory capital, or if there is no excess, to the Company’s net profits for the current and/or immediately preceding fiscal year.


(In thousands)	2022		2021
Other accumulated comprehensive (loss), before tax:
Net unrealized holding (loss) on AFS securities	$	(236,887)	$	(1,806)
Net (loss) on effective cash flow hedging derivatives	(6,667)		—

Net unrealized holding (loss) on pension plans	(844)		(2,518)

Income taxes related to items of accumulated other comprehensive (loss)/income:
Net unrealized holding loss on AFS securities	61,329		407
Net loss on effective cash flow hedging derivatives	1,789		—

Net unrealized holding loss on pension plans	228		674
Accumulated other comprehensive (loss)	$	(181,052)	$	(3,243)


(In thousands)	Before Tax		Tax Effect		Net of Tax
Year Ended December 31, 2022
Net unrealized holding (loss) on AFS securities:
Net unrealized (loss) arising during the period	$	(235,075)	$	60,920	$	(174,155)
Less: reclassification adjustment for (losses) realized in net income	6		(2)		4
Net unrealized holding (loss) on AFS securities	(235,081)		60,922		(174,159)

Net loss on cash flow hedging derivatives:
Net unrealized gain arising during the period	(6,667)		1,789		(4,878)
Less: reclassification adjustment for (losses) realized in net income	—		—		—
Net (loss) on cash flow hedging derivatives	(6,667)		1,789		(4,878)






Net unrealized holding (loss) on pension plans
Net unrealized gain arising during the period	1,674		(446)		1,228
Less: reclassification adjustment for (losses) realized in net income	—		—		—
Net unrealized holding (loss) on pension plans	1,674		(446)		1,228
Other comprehensive loss	$	(240,074)	$	62,265	$	(177,809)


(In thousands)	Before Tax		Tax Effect		Net of Tax
Year Ended December 31, 2021
Net unrealized holding (loss) on AFS securities:
Net unrealized (loss) arising during the period	$	(46,794)	$	11,937	$	(34,857)
Less: reclassification adjustment for gains realized in net income	—		—		—
Net unrealized holding (loss) on AFS securities	(46,794)		11,937		(34,857)

Net unrealized holding (loss) on pension plans
Net unrealized (loss) arising during the period	993		(250)		743
Less: reclassification adjustment for (losses) realized in net income	—		—		—
Net unrealized holding (loss) on pension plans	993		(250)		743










Other comprehensive (loss)	$	(45,801)	$	11,687	$	(34,114)


(In thousands)	Before Tax		Tax Effect		Net of Tax
Year Ended December 31, 2020
Net unrealized holding gain on AFS securities:
Net unrealized gain arising during the period	$	25,721	$	(6,470)	$	19,251
Less: reclassification adjustment for gains realized in net income	(5)		1		(4)
Net unrealized holding gain on AFS securities	25,726		(6,471)		19,255

Net unrealized holding (loss) on pension plans
Net unrealized (loss) arising during the period	(489)		112		(377)
Less: reclassification adjustment for (losses) realized in net income	—		—		—
Net unrealized holding loss on pension plans	(489)		112		(377)





Other comprehensive income	$	25,237	$	(6,359)	$	18,878


(in thousands)	Net unrealized holding gain (loss) on AFS Securities		Net loss on effective cash flow hedging derivatives		Net unrealized holding gain (loss) on pension plans		Total
Year Ended December 31, 2022
Balance at Beginning of Year	$	(1,398)	$	—	$	(1,845)	$	(3,243)
Other comprehensive (loss)/income before reclassifications	(174,155)		(4,878)		1,228		(177,805)
Amounts reclassified from accumulated other comprehensive income	4		—		—		4
Total other comprehensive (loss)/income	(174,159)		(4,878)		1,228		(177,809)
Balance at End of Period	$	(175,557)	$	(4,878)	$	(617)	$	(181,052)

Year Ended December 31, 2021
Balance at Beginning of Year	$	33,459	$	—	$	(2,588)	$	30,871
Other comprehensive income/(loss)/income before reclassifications	(34,857)		—		743		(34,114)
Amounts reclassified from accumulated other comprehensive income	—		—		—		—
Total other comprehensive (loss)/income	(34,857)		—		743		(34,114)
Balance at End of Period	$	(1,398)	$	—	$	(1,845)	$	(3,243)

Year Ended December 31, 2020
Balance at Beginning of Year	$	14,204	$	—	$	(2,211)	$	11,993
Other comprehensive income/(loss) before reclassifications	19,251		—		(377)		18,874
Amounts reclassified from accumulated other comprehensive income	(4)		—		—		(4)
Total other comprehensive income/(loss)	19,255		—		(377)		18,878

Balance at End of Period	$	33,459	$	—	$	(2,588)	$	30,871


							Affected Line Item in the Statement Where Net Income Is Presented
	Years Ended December 31,
(in thousands)	2022		2021		2020
Realized gains/(losses) on AFS securities:
	$	6	$	—	$	(5)	Non-interest income
	(2)		—		1		Tax expense
	4		—		(4)

Realized (losses) on cash flow hedging derivatives:
	—		—		—		Interest expense
	—		—		—		Non-interest income
	—		—		—		Non-interest expense
	—		—		—		Tax benefit
	—		—		—






Realized (losses) on pension plans:
	—		—		—		Non-interest expense
	—		—		—		Tax expense
	—		—		—
Total reclassifications for the period	$	4	$	—	$	(4)

Basic earnings/(loss) per common share (“EPS”) excludes dilution and is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method.


	Years Ended December 31,
(In thousands, except per share data)	2022		2021		2020
Net income/(loss) from continuing operations	$	92,533	$	118,664	$	(513,175)
Net (loss) from discontinued operations	—		—		(19,842)
Net income/(loss)	$	92,533	$	118,664	$	(533,017)

Average number of common shares issued	51,903		51,903		51,903
Less: average number of treasury shares	5,577		1,951		1,569
Less: average number of unvested stock award shares	762		712		505
Plus: average participating preferred shares	—		—		441
Average number of basic common shares outstanding	45,564		49,240		50,270
Plus: dilutive effect of unvested stock award shares	345		309		—
Plus: dilutive effect of stock options outstanding	5		5		—
Average number of diluted common shares outstanding	45,914		49,554		50,270

Basic earnings/(loss) per share:
Continuing Operations	$	2.03	$	2.41	$	(10.21)
Discontinued operations	—		—		(0.39)
Basic earnings/(loss) per common share	$	2.03	$	2.41	$	(10.60)

Diluted earnings/(loss) per share:
Continuing Operations	$	2.02	$	2.39	$	(10.21)
Discontinued operations	—		—		(0.39)
Diluted earnings/(loss) per common share	$	2.02	$	2.39	$	(10.60)