Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 01, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | PEAPACK GLADSTONE FINANCIAL CORP | |
Entity Central Index Key | 0001050743 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 19,456,312 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Trading Symbol | PGC | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-16197 | |
Entity Tax Identification Number | 223537895 | |
Entity Address, Address Line One | 500 Hills Drive | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Bedminster | |
Entity Address, State or Province | New Jersey | |
Entity Address, Postal Zip Code | 07921-0700 | |
City Area Code | 908 | |
Local Phone Number | 234-0700 |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and due from banks | $ 5,351 | $ 5,914 | |
Federal funds sold | 101 | 101 | |
Interest-earning deposits | 298,575 | 154,758 | |
Total cash and cash equivalents | 304,027 | 160,773 | |
Securities available for sale | 378,839 | 377,936 | |
Equity security, at fair value | 4,847 | 4,719 | |
FHLB and FRB stock, at cost | 18,338 | 18,533 | |
Loans held for sale, at fair value | 2,343 | 1,576 | |
Loans held for sale, at lower of cost or fair value | 926 | 3,542 | |
Loans | 4,029,339 | 3,927,931 | |
Less: Allowance for loan and lease losses | 39,791 | 38,504 | |
Net loans | 3,989,548 | 3,889,427 | |
Premises and equipment | 20,987 | 27,408 | |
Accrued interest receivable | 11,594 | 10,814 | |
Bank owned life insurance | 45,744 | 45,353 | |
Goodwill | 24,417 | 24,417 | |
Other intangible assets | 7,524 | 7,982 | |
Finance lease right-of-use assets | 5,452 | ||
Operating lease right-of-use assets | 11,017 | ||
Other assets | 45,631 | 45,378 | |
TOTAL ASSETS | 4,871,234 | 4,617,858 | |
Deposits: | |||
Noninterest-bearing demand deposits | 544,431 | 463,926 | |
Interest-bearing deposits: | |||
Checking | [1] | 1,388,821 | 1,247,305 |
Savings | 112,438 | 114,674 | |
Money market accounts | 1,207,358 | 1,243,369 | |
Certificates of deposit - retail | 570,384 | 510,724 | |
Certificates of deposit - listing service | 58,541 | 79,195 | |
Subtotal deposits | 3,881,973 | 3,659,193 | |
Interest-bearing demand - brokered | 180,000 | 180,000 | |
Certificates of deposit - brokered | 33,682 | 56,147 | |
Total deposits | 4,095,655 | 3,895,340 | |
Federal Home Loan Bank advances | 105,000 | 108,000 | |
Finance lease liabilities | 7,985 | 8,362 | |
Operating lease liabilities | 11,269 | ||
Subordinated debt, net | 83,305 | 83,193 | |
Deferred tax liabilities, net | 15,464 | 16,029 | |
Accrued expenses and other liabilities | 58,668 | 37,921 | |
TOTAL LIABILITIES | 4,377,346 | 4,148,845 | |
SHAREHOLDERS’ EQUITY | |||
Preferred stock (no par value; authorized 500,000 shares; liquidation preference of $1,000 per share) | |||
Common stock (no par value; stated value $0.83 per share; authorized 42,000,000 shares; issued shares, 19,864,490 at June 30, 2019 and 19,745,840 at December 31, 2018; outstanding shares, 19,456,312 at June 30, 2019 and 19,337,662 at December 31, 2018 | 16,557 | 16,459 | |
Surplus | 311,428 | 309,088 | |
Treasury stock at cost, 408,178 shares at both June 30, 2019 and December 31, 2018 | (8,988) | (8,988) | |
Retained earnings | 176,495 | 154,799 | |
Accumulated other comprehensive loss, net of income tax | (1,604) | (2,345) | |
TOTAL SHAREHOLDERS’ EQUITY | 493,888 | 469,013 | |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | $ 4,871,234 | $ 4,617,858 | |
[1] | Interest-bearing checking includes $453.1 million at June 30, 2019 and $434.5 million at December 31, 2018 of reciprocal balances in the Reich & Tang or Promontory Demand Deposit Marketplace program. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 |
Common stock, stated value | $ 0.83 | $ 0.83 |
Common stock, shares authorized | 42,000,000 | 42,000,000 |
Common stock, shares issued | 19,864,490 | 19,745,840 |
Common stock, shares outstanding | 19,456,312 | 19,337,662 |
Treasury stock, shares | 408,178 | 408,178 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 40,595 | $ 37,102 | $ 81,107 | $ 71,769 |
Interest on investments: | ||||
Taxable | 2,639 | 2,072 | 5,323 | 3,997 |
Tax-exempt | 91 | 99 | 184 | 208 |
Interest on loans held for sale | 13 | 6 | 17 | 16 |
Interest on interest-earning deposits | 1,265 | 395 | 2,535 | 752 |
Total interest income | 44,603 | 39,674 | 89,166 | 76,742 |
INTEREST EXPENSE | ||||
Interest on savings and interest-bearing deposit accounts | 8,554 | 4,416 | 16,615 | 8,135 |
Interest on certificates of deposit | 3,461 | 2,330 | 6,695 | 4,479 |
Interest on borrowed funds | 838 | 1,155 | 1,672 | 1,525 |
Interest on finance lease liability | 97 | 106 | 196 | 213 |
Interest on subordinated debt | 1,223 | 1,221 | 2,447 | 2,442 |
Subtotal - interest expense | 14,173 | 9,228 | 27,625 | 16,794 |
Interest on interest-bearing demand - brokered | 836 | 804 | 1,575 | 1,484 |
Interest on certificates of deposits - brokered | 326 | 399 | 691 | 828 |
Total interest expense | 15,335 | 10,431 | 29,891 | 19,106 |
NET INTEREST INCOME BEFORE PROVISION FOR LOAN AND LEASE LOSSES | 29,268 | 29,243 | 59,275 | 57,636 |
Provision for loan and lease losses | 1,150 | 300 | 1,250 | 1,550 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 28,118 | 28,943 | 58,025 | 56,086 |
OTHER INCOME | ||||
Wealth management fee income | 9,568 | 8,126 | 18,742 | 16,493 |
Service charges and fees | 897 | 873 | 1,713 | 1,704 |
Bank owned life insurance | 326 | 345 | 664 | 681 |
Gains on loans held for sale at fair value (mortgage banking) | 132 | 79 | 179 | 173 |
Fee income related to loan level, back-to-back swaps | 721 | 900 | 991 | 1,152 |
Gain on sale of SBA loans | 573 | 814 | 992 | 845 |
Other income | 740 | 639 | 1,346 | 1,021 |
Securities gains/(losses), net | 69 | (36) | 128 | (114) |
Total other income | 13,026 | 11,740 | 24,755 | 21,955 |
OPERATING EXPENSES | ||||
Compensation and employee benefits | 17,543 | 15,826 | 34,699 | 30,405 |
Premises and equipment | 3,600 | 3,406 | 6,988 | 6,676 |
FDIC insurance expense | 277 | 625 | 554 | 1,205 |
Other operating expense | 4,753 | 5,084 | 9,647 | 9,992 |
Total operating expenses | 26,173 | 24,941 | 51,888 | 48,278 |
INCOME BEFORE INCOME TAX EXPENSE | 14,971 | 15,742 | 30,892 | 29,763 |
Income tax expense | 3,421 | 3,832 | 7,917 | 7,046 |
NET INCOME | $ 11,550 | $ 11,910 | $ 22,975 | $ 22,717 |
EARNINGS PER SHARE | ||||
Basic | $ 0.59 | $ 0.63 | $ 1.18 | $ 1.21 |
Diluted | $ 0.59 | $ 0.62 | $ 1.18 | $ 1.20 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||||
Basic | 19,447,155 | 18,930,893 | 19,399,071 | 18,770,492 |
Diluted | 19,568,371 | 19,098,838 | 19,528,537 | 18,996,979 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 11,550 | $ 11,910 | $ 22,975 | $ 22,717 |
Unrealized gains/(losses) on available for sale securities: | ||||
Unrealized holding gains/(losses) arising during the period | 2,871 | (653) | 5,159 | (3,587) |
Tax effect | (695) | 159 | (1,255) | 835 |
Net of tax | 2,176 | (494) | 3,904 | (2,752) |
Unrealized gains on cash flow hedges: | ||||
Unrealized holding gains/(losses) arising during the period | (2,909) | 828 | (4,456) | 1,569 |
Reclassification adjustment for amounts included in net income | (31) | (31) | (62) | (62) |
Before tax | (2,940) | 797 | (4,518) | 1,507 |
Tax effect | 889 | (215) | 1,355 | (424) |
Net of tax | (2,051) | 582 | (3,163) | 1,083 |
Total other comprehensive income/(loss) | 125 | 88 | 741 | (1,669) |
Total comprehensive income | $ 11,675 | $ 11,998 | $ 23,716 | $ 21,048 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Surplus [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2017 | $ 403,678 | $ 15,858 | $ 283,552 | $ (8,988) | $ 114,468 | $ (1,212) |
Net income | 22,717 | 22,717 | ||||
Other comprehensive income (loss) | (1,669) | (1,669) | ||||
Cumulative adjustment for equity security(ASU 2016-01) | (127) | 127 | ||||
Restricted stock units issued | 71 | (71) | ||||
Restricted stock awards forfeitures | (78) | 78 | ||||
Restricted stock units/awards repurchased on vesting to pay taxes | (1,403) | (33) | (1,370) | |||
Amortization of restricted stock awards/units | 2,130 | 2,130 | ||||
Cash dividends declared on common stock | (1,798) | (1,798) | ||||
Common stock options exercised | 102 | 9 | 93 | |||
Sales of shares (Dividend Reinvestment Program) | 12,733 | 326 | 12,407 | |||
Issuance of shares for Employee Stock Purchase Plan | 529 | 13 | 516 | |||
Issuance of common stock for acquisition | 17 | (17) | ||||
Balance at Jun. 30, 2018 | 437,019 | 16,183 | 297,318 | (8,988) | 135,260 | (2,754) |
Balance at Mar. 31, 2018 | 422,406 | 16,111 | 293,830 | (8,988) | 124,295 | (2,842) |
Net income | 11,910 | 11,910 | ||||
Other comprehensive income (loss) | 88 | 88 | ||||
Restricted stock units issued | 1 | (1) | ||||
Restricted stock awards forfeitures | (1) | 1 | ||||
Restricted stock units/awards repurchased on vesting to pay taxes | (66) | (1) | (65) | |||
Amortization of restricted stock awards/units | 1,154 | 1,154 | ||||
Cash dividends declared on common stock | (945) | (945) | ||||
Common stock options exercised | 50 | 4 | 46 | |||
Sales of shares (Dividend Reinvestment Program) | 2,114 | 62 | 2,052 | |||
Issuance of shares for Employee Stock Purchase Plan | 308 | 7 | 301 | |||
Balance at Jun. 30, 2018 | 437,019 | 16,183 | 297,318 | (8,988) | 135,260 | (2,754) |
Balance at Dec. 31, 2018 | 469,013 | 16,459 | 309,088 | (8,988) | 154,799 | (2,345) |
Net income | 22,975 | 22,975 | ||||
Other comprehensive income (loss) | 741 | 741 | ||||
Cumulative adjustment for leases (ASC 842) | 661 | 661 | ||||
Restricted stock units issued | 109 | (109) | ||||
Restricted stock units/awards repurchased on vesting to pay taxes | (981) | (30) | (951) | |||
Amortization of restricted stock awards/units | 2,865 | 2,865 | ||||
Cash dividends declared on common stock | (1,940) | (1,940) | ||||
Common stock options exercised | 22 | 1 | 21 | |||
Exercise of warrants | 2 | (2) | ||||
Issuance of shares for Employee Stock Purchase Plan | 532 | 15 | 517 | |||
Issuance of common stock for acquisition | 1 | (1) | ||||
Balance at Jun. 30, 2019 | 493,888 | 16,557 | 311,428 | (8,988) | 176,495 | (1,604) |
Balance at Mar. 31, 2019 | 481,472 | 16,549 | 309,722 | (8,988) | 165,918 | (1,729) |
Net income | 11,550 | 11,550 | ||||
Other comprehensive income (loss) | 125 | 125 | ||||
Restricted stock units issued | 1 | (1) | ||||
Restricted stock units/awards repurchased on vesting to pay taxes | (17) | (17) | ||||
Amortization of restricted stock awards/units | 1,475 | 1,475 | ||||
Cash dividends declared on common stock | (973) | (973) | ||||
Common stock options exercised | 18 | 18 | ||||
Issuance of shares for Employee Stock Purchase Plan | 238 | 7 | 231 | |||
Balance at Jun. 30, 2019 | $ 493,888 | $ 16,557 | $ 311,428 | $ (8,988) | $ 176,495 | $ (1,604) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Shares outstanding | 19,337,662 | |||
Common stock options exercised, shares | 1,520 | |||
Issuance of shares for Employee Stock Purchase Plan, shares | 8,564 | 9,127 | 18,740 | 15,490 |
Shares outstanding | 19,456,312 | 19,456,312 | ||
Common Stock [Member] | ||||
Shares outstanding | 19,445,363 | 18,921,114 | 19,337,662 | 18,619,634 |
Restricted stock units issued, shares | 1,779 | 1,583 | 131,141 | 85,242 |
Restricted stock awards forfeitures, shares | (1,267) | (94,034) | ||
Restricted stock units/awards repurchased on vesting to pay taxes, shares | (614) | (1,945) | (35,949) | (40,457) |
Cash dividends declared on common stock, per share | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 |
Common stock options exercised, shares | 1,220 | 4,533 | 1,520 | 10,683 |
Common stock options exercised, used to exercise, shares | 833 | 2,374 | ||
Common stock options exercised, net of shares used to exercise, shares | 3,700 | 8,309 | ||
Exercise of warrants, shares | 7,109 | |||
Exercise of warrants, used to exercise, shares | 4,218 | |||
Exercise of warrants, net of shares used to exercise, shares | 2,891 | |||
Sales of shares (Dividend Reinvestment Program), shares | 75,000 | 392,302 | ||
Issuance of shares for Employee Stock Purchase Plan, shares | 8,564 | 9,127 | 18,740 | 15,490 |
Issuance of common stock for acquisition, shares | 307 | 20,826 | ||
Shares outstanding | 19,456,312 | 19,007,312 | 19,456,312 | 19,007,312 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
OPERATING ACTIVITIES: | |||
Net income | $ 22,975 | $ 22,717 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 1,523 | 1,560 | |
Amortization of premium and accretion of discount on securities, net | 613 | 741 | |
Amortization of restricted stock | 2,865 | 2,130 | |
Amortization of intangible assets | 458 | 359 | |
Amortization of subordinated debt costs | 112 | 109 | |
Provision for loan and lease losses | 1,250 | 1,550 | |
Provision for OREO losses | 0 | 204 | |
Deferred tax (benefit)/expense | (620) | 1,429 | |
Stock-based compensation and employee stock purchase plan expense | 75 | 112 | |
Fair value adjustment for equity security | (128) | 114 | |
Loans originated for sale | [1] | (22,531) | (25,418) |
Proceeds from sales of loans held for sale | [1] | 23,166 | 23,609 |
Gain on loans held for sale | [1] | (1,171) | (1,018) |
Gain on OREO sold | 0 | (26) | |
Increase in cash surrender value of life insurance, net | (391) | (394) | |
(Increase)/decrease in accrued interest receivable | (780) | 2,250 | |
Decrease in other assets | 8,548 | 4,496 | |
Increase/(decrease) in accrued expenses and other liabilities | 8,044 | (3,167) | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 44,008 | 31,357 | |
INVESTING ACTIVITIES: | |||
Principal repayments, maturities and calls of securities available for sale | 96,230 | 40,189 | |
Redemptions of FHLB & FRB stock | 279 | 49,068 | |
Purchase of securities available for sale | (92,587) | (68,547) | |
Purchase of FHLB & FRB stock | (84) | (57,223) | |
Net increase in loans, net of participations sold | (98,986) | (18,389) | |
Sale of other real estate owned | 0 | 304 | |
Purchase of premises and equipment | (554) | (488) | |
NET CASH USED IN INVESTING ACTIVITIES | (95,702) | (55,086) | |
FINANCING ACTIVITIES: | |||
Net increase/(decrease) in deposits | 200,315 | (175,441) | |
Net increase in overnight borrowings | 0 | 127,350 | |
Proceeds from Federal Home Loan Bank advances | 0 | 30,000 | |
Repayments of Federal Home Loan Bank advances | (3,000) | (15,000) | |
Dividends paid on common stock | (1,940) | (1,798) | |
Exercise of Stock Options, net of stock swaps | 22 | 102 | |
Restricted stock repurchased on vesting to pay taxes | (981) | (1,403) | |
Sales of common shares (Dividend Reinvestment Program) | 0 | 12,733 | |
Issuance of shares for employee stock purchase plan | 532 | 529 | |
NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | 194,948 | (22,928) | |
Net increase/(decrease) in cash and cash equivalents | 143,254 | (46,657) | |
Cash and cash equivalents at beginning of period | 160,773 | 113,447 | |
Cash and cash equivalents at end of period | 304,027 | 66,790 | |
Cash paid during the year for: | |||
Interest | 29,954 | 18,086 | |
Income tax, net | $ 843 | $ 964 | |
[1] | Includes mortgage loans originated with the intent to sell which are carried at fair value. In addition, this includes the guaranteed portion of SBA loans which are carried at the lower of cost or fair value. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Certain information and footnote disclosures normally included in the audited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2018 for Peapack-Gladstone Financial Corporation (the “Corporation” or the “Company”). In the opinion of the management of the Corporation, the accompanying unaudited Consolidated Interim Financial Statements contain all adjustments (consisting solely of normal recurring accruals) necessary to present fairly the financial position as of June 30, 2019, the results of operations comprehensive income and shareholders’ equity for the three and six months ended June 30, 2019 and 2018, shareholders’ equity and cash flow statements for the six months ended June 30, 2019 and 2018. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for any future period. Principles of Consolidation and Organization: The consolidated financial statements of the Company are prepared on the accrual basis and include the accounts of the Company and its wholly-owned subsidiary, Peapack-Gladstone Bank (the “Bank”). The consolidated financial statements also include the Bank’s wholly-owned subsidiaries, PGB Trust & Investments of Delaware, Peapack Capital Corporation (“PCC”) (formed in the second quarter of 2017), Murphy Capital Management (“MCM”) (acquired in the third quarter of 2017), Quadrant Capital Management (“Quadrant”) (acquired in the fourth quarter of 2017), Lassus Wherley & Associates (“Lassus Wherley”) (acquired in the third quarter of 2018), Peapack-Gladstone Mortgage Group, Inc. and Peapack-Gladstone Mortgage Group’s wholly-owned subsidiary, PG Investment Company of Delaware, Inc. and its wholly-owned subsidiary, Peapack-Gladstone Realty, Inc., a New Jersey real estate investment company. While the following footnotes include the collective results of the Company and the Bank and their subsidiaries, these footnotes primarily reflect the Bank’s and its subsidiaries’ activities. All significant intercompany balances and transactions have been eliminated from the accompanying consolidated financial statements. Basis of Financial Statement Presentation : The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles. In preparing the financial statements, Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the statement of condition and revenues and expenses for that period. Actual results could differ from those estimates. Segment Information : The Company’s business is conducted through two business segments: its banking subsidiary, which involves the delivery of loan and deposit products to customers, and the Private Wealth Management Division, which includes asset management services provided for individuals and institutions. Management uses certain methodologies to allocate income and expense to the business segments. The Banking segment includes commercial (includes C&I and equipment financing), commercial real estate, multifamily, residential and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support services. Peapack-Gladstone Bank’s Private Wealth Management Division includes: investment management services for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian; and other financial planning, tax preparation and advisory services. This segment also includes the activity from the Delaware subsidiary, PGB Trust and Investments of Delaware, MCM, Quadrant and Lassus Wherley. Wealth management fees are primarily earned based upon AUM and are generally assessed on a monthly or quarterly basis on a tiered fee schedule based on the market value of AUM at the end of the period. Cash and Cash Equivalents: For purposes of the statements of cash flows, cash and cash equivalents include cash and due from banks, interest-earning deposits and federal funds sold. Generally, federal funds are sold for one-day periods. Cash equivalents are of original maturities of 90 days or less. Net cash flows are reported for customer loan and deposit transactions and overnight borrowings. Interest-Earning Deposits in Other Financial Institutions : Interest-earning deposits in other financial institutions mature within one year and are carried at cost. Securities : All debt securities are classified as available for sale and are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income/(loss), net of tax, with the exception of the Company’s investment in a CRA investment fund, which is classified as an equity security. In accordance with ASU 2016-01, “Financial Instruments” (adopted January 1, 2018), unrealized holding gains and losses on equity securities are marked to market through the income statement. Interest income includes amortization of purchase premiums and discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated and premiums on callable debt securities which are amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, Management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) other-than-temporary impairment related to credit loss, which is recognized in the income statement and 2) other-than-temporary impairment related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock: The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock, based on the level of borrowings and other factors. FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank is also a member of the Federal Reserve Bank System and required to own a certain amount of FRB stock. FRB stock is carried at cost and classified as a restricted security. Both cash and stock dividends are reported as income. Loans Held for Sale: Mortgage loans originated with the intent to sell in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released; therefore, no servicing rights are recorded. Gains and losses on sales of mortgage loans, shown as gain on sale of loans on the income statement, are based on the difference between the selling price and the carrying value of the related loan sold. U.S. Small Business Administration (SBA) loans originated with the intent to sell in the secondary market are carried at the lower of cost or fair value. SBA loans are generally sold with the servicing rights retained. Total SBA loans serviced totaled $43.8 million and $35.1 million as of June 30, 2019 and December 31, 2018, respectively. SBA loans held for sale totaled $926 thousand and $1.2 million at June 30, 2019 and December 31, 2018, respectively. Loans originated with the intent to hold and subsequently transferred to loans held for sale are carried at the lower of cost or fair value. These are loans that the Company no longer has the intent to hold for the foreseeable future. Loans: Loans that Management has the intent and ability to hold for the foreseeable future or until maturity are stated at the principal amount outstanding. Interest on loans is recognized based upon the principal amount outstanding. Loans are stated at face value, less purchased premium and discounts and net deferred fees. Loan origination fees and certain direct loan origination costs are deferred and recognized on a level-yield method, over the life of the loan as an adjustment to the loan’s yield. The definition of recorded investment in loans includes accrued interest receivable and deferred fees/cost, however, for the Company’s loan disclosures, accrued interest and deferred fees/cost were excluded as the impact was not material. Loans are considered past due when they are not paid within 30 days in accordance with contractual terms. The accrual of income on loans, including impaired loans, is discontinued if, in the opinion of Management, principal or interest is not likely to be paid in accordance with the terms of the loan agreement, or when principal or interest is past due 90 days unless the asset is both well secured and in the process of collection. All interest accrued but not received for loans placed on nonaccrual are reversed against interest income. Payments received on nonaccrual loans are recorded as principal payments. A nonaccrual loan is returned to accrual status only when interest and principal payments are brought current and future payments are reasonably assured, generally when the Bank receives contractual payments for a minimum of six consecutive months. Commercial loans are generally charged off after an analysis is completed which indicates that collectability of the full principal balance is in doubt. Consumer loans are generally charged off after they become 120 days past due. Subsequent payments are credited to income only if collection of principal is not in doubt. If principal and interest payments are brought contractually current and future collectability is reasonably assured, loans may be returned to accrual status. Nonaccrual mortgage loans are generally charged off to the extent that the value of the underlying collateral does not cover the outstanding principal balance. The majority of the Company’s loans are secured by real estate in New Jersey and New York. Allowance for Loan and Lease Losses: The allowance for loan and lease losses is a valuation allowance for credit losses that is Management’s estimate of probable losses in the loan portfolio. The process to determine reserves utilizes analytic tools and Management judgment and is reviewed on a quarterly basis. When Management is reasonably certain that a loan balance is not fully collectable, an impairment analysis is completed whereby a specific reserve may be established or a full or partial charge off is recorded against the allowance. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the size and composition of the portfolio, information about specific borrower situations, estimated collateral values, economic conditions and other factors. Allocations of the allowance may be made for specific loans via a specific reserve, but the entire allowance is available for any loan that, in Management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component of the allowance relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by Management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans are individually evaluated for impairment when they are classified as substandard by Management. If a loan is considered impaired, a portion of the allowance may be allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or if repayment is expected solely from the underlying collateral, the loan principal balance is compared to the fair value of collateral less estimated disposition costs to determine the need, if any, for a charge off. A troubled debt restructuring (“TDR”) is a modified loan with concessions made by the lender to a borrower who is experiencing financial difficulty. TDRs are impaired and are generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral, less estimated disposition costs. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan and lease losses. The general component of the allowance covers non-impaired loans and is based primarily on the Company’s historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experience by the Company on a weighted average basis over the previous three years. This actual loss experience is adjusted by other qualitative factors based on the risks present for each portfolio segment. These qualitative factors include consideration of the following: levels of and trends in delinquencies and impaired loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staffing and experience; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. For loans that are graded as non-impaired, the Company allocates a higher general reserve percentage than pass-rated loans using a multiple that is calculated annually through a migration analysis. At both June 30, 2019 and December 31, 2018, the multiple was 2.25 times for non-impaired special mention loans and 3.5 times for non-impaired substandard loans. In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on Federal call report codes, which are based on collateral or purpose. The following portfolio classes have been identified: Primary Residential Mortgages Home Equity Lines of Credit Junior Lien Loan on Residence Multifamily and Commercial Real Estate Loans Commercial and Industrial Loans Leasing and Equipment Finance Asset risk in PCC’s portfolio is generally recognized through changes to loan income, or though changes to lease related income streams due to fluctuations in lease rates. Changes to lease income can occur when the existing lease contract expires, the asset comes off lease or the business seeks to enter a new lease agreement. Asset risk may also change depreciation, resulting from changes in the residual value of the operating lease asset or through impairment of the asset carrying value, which can occur at any time during the life of the asset. Credit risk in PCC’s portfolio generally results from the potential default of borrowers or lessees, which may be driven by customer specific or broader industry related conditions. Credit losses can impact multiple parts of the income statement including loss of interest/lease/rental income and/or via higher costs and expenses related to the repossession, refurbishment, re-marketing and or re-leasing of assets. Consumer and Other Leases: At inception, contracts are evaluated to determine whether the contract constitutes a lease agreement. For contracts that are determined to be an operating lease, a corresponding right-of-use (“ROU”) asset and operating lease liability are recorded in separate line items on the statement of condition. A ROU asset represents the Company’s right to use an underlying asset during the lease term and a lease liability represents the Company’s commitment to make contractually obligated lease payments. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease and are based on the present value of lease payments over the lease term. The measurement of the operating lease ROU asset includes any lease payments made. As the rate implicit in the lease is not readily determinable, the incremental collateralized borrowing rate is used to determine the present value of lease payments. This rate gives consideration to the applicable FHLB collateralized borrowing rates and is based on the information available at the commencement date. The Company has elected to apply the short-term lease measurement and recognition exemption to leases with an initial term of 12 months or less; therefore, these leases are not recorded on the Company’s statement of condition, but rather, lease expense is recognized over the lease term on a straight-line basis. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. The Company maintains certain property and equipment under direct financing and operating leases. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches and office space and are classified as operating leases. The Company has two existing finance leases (previously classified as a capital lease and included in premises and equipment on our statement of condition at December 31, 2018) for the Company’s administration building and one branch location. Topic 842 did not materially impact the accounting for these capital leases. The ROU asset is measured at the amount of the lease liability adjusted for lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the ROU asset. Operating lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the lease liability, and any impairment of the right-of-use-asset. There are no terms or conditions related to residual value guarantees and no restrictions or covenants that would impact the Company’s ability to pay dividends or to incur additional financial obligations. Derivatives: At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation. For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For cash flow hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. When hedge accounting is discontinued on a fair value hedge that no longer qualifies as an effective hedge, the derivative continues to be reported at fair value in the statement of condition, but the carrying amount of the hedged item is no longer adjusted for future changes in fair value. The adjustment to the carrying amount of the hedged item that existed at the date hedge accounting is discontinued is amortized over the remaining life of the hedged item into earnings. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminated, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. Stock-Based Compensation: The Company’s 2006 Long-Term Stock Incentive Plan and 2012 Long-Term Stock Incentive Plan allow the granting of shares of the Company’s common stock as incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units and stock appreciation rights to directors, officers and employees of the Company and its subsidiaries. The options granted under these plans are, in general, exercisable not earlier than one year after the date of grant, at a price equal to the fair value of common stock on the date of grant and expire not more than ten years after the date of grant. Stock options may vest during a period of up to five years after the date of grant. Some options granted to officers at or above the senior vice president level were immediately exercisable at the date of grant. The Company has a policy of using authorized but unissued shares to satisfy option exercises. Upon adoption of ASU 2016-09, “Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting,” the Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. For the Company’s stock option plans, changes in options outstanding during the six months ended June 30, 2019 were as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Term (In thousands) Balance, January 1, 2019 91,310 $ 13.63 Exercised during 2019 (1,520 ) 14.28 Expired during 2019 (630 ) 22.57 Forfeited during 2019 (20,000 ) 13.07 Balance, June 30, 2019 69,160 $ 13.69 2.33 years $ 998 Vested and expected to vest 69,160 $ 13.69 2.33 years $ 998 Exercisable at June 30, 2019 69,160 $ 13.69 2.33 years $ 998 The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the second quarter of 2019 and the exercise price, multiplied by the number of in-the-money options). The Company’s closing stock price on June 30, 2019 was $28.12. There were no stock options granted during the three or six months ended June 30, 2019. The Company has previously granted performance-based and service-based restricted stock awards/units. Service-based awards/units vest ratably over a three or five-year period. There were 729 service-based restricted stock units granted in the second quarter of 2019 with a three-year vesting period and there were 27,925 service-based restricted stock units granted in the second quarter of 2019 with a five-year vesting period. The performance-based awards are dependent upon the Company meeting certain performance criteria and, to the extent the performance criteria are met, will cliff vest at the end of the performance period which is generally three years. There were no performance-based restricted stock units granted in the second quarter of 2019. Changes in non-vested shares dependent on performance criteria for the six months ended June 30, 2019 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2019 42,998 $ 35.33 Granted during 2019 47,770 26.34 Balance, June 30, 2019 90,768 $ 30.60 Changes in service-based restricted stock awards/units for the six months ended June 30, 2019 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2019 366,541 $ 30.64 Granted during 2019 223,396 26.51 Vested during 2019 (140,178 ) 27.44 Forfeited during 2019 (3,214 ) 31.35 Balance, June 30, 2019 446,545 $ 29.98 As of June 30, 2019, there was $46 thousand of total unrecognized compensation cost related to service-based awards. That cost is expected to be recognized over a weighted average period of 0.34 years. As of June 30, 2019, there was $12.8 million of total unrecognized compensation cost related to service-based and performance-based units. That cost is expected to be recognized over a weighted average period of 1.31 years. Stock compensation expense recorded for the second quarters of 2019 and 2018 totaled $1.5 million and $1.3 million, respectively. Stock compensation expense recorded for the six months ended June 30, 2019 and 2018 totaled $2.9 million and $2.4 million, respectively. Employee Stock Purchase Plan (“ESPP”): In 2014, the shareholders of the Company approved the ESPP. The ESPP provides for the granting of rights to purchase up to 150,000 shares of Corporation common stock. Subject to certain eligibility requirements and restrictions, the ESPP allows employees to purchase shares during four three-month offering periods (“Offering Period”). An amendment to the ESPP plan has changed the offering period to one twelve-month period to commence in the third quarter of 2019. Each participant in the Offering Period is granted an option to purchase a number of shares and may contribute between 1% and 15% of their compensation. At the end of the Offering Period on the purchase date, the number of shares to be purchased by the employee is determined by dividing the employee’s contributions accumulated during the Offering Period by the applicable purchase price. The purchase price is an amount equal to 85% of the closing market price of a share of Company common stock on the purchase date. Participation in the ESPP is entirely voluntary and employees can cancel their purchases at any time during the Offering Period without penalty. The fair value of each purchase right is determined using the Black-Scholes option pricing model. The Company recorded $30 thousand and $59 thousand of expense in salaries and employee benefits expense for the three months ended June 30, 2019 and 2018, respectively, related to the ESPP. Total shares issued under the ESPP during the second quarters of 2019 and 2018 were 8,564 and 9,127, respectively. The Company recorded $75 thousand and $112 thousand of expense in salaries and employee benefits expense for the six months ended June 30, 2019 and 2018, respectively related to the ESPP. Total shares issued under the ESPP for the six months ended June 30, 2019 and 2018 were 18,740 and 15,490, respectively. Management believes the Company to be well capitalized and has more than enough capital for current and future operational needs. Accordingly, Management has considered various capital management techniques to utilize the capital. Therefore, the Company has chosen to move share purchases for the ESPP from a quarterly basis to an annual basis, with the next purchase occurring in May 2020. Earnings per share – Basic and Diluted: The following is a reconciliation of the calculation of basic and diluted earnings per share. Basic net income per share is calculated by dividing net income available to shareholders by the weighted average shares outstanding during the reporting period. Diluted net income per share is computed similarly to that of basic net income per share, except that the denominator is increased to include the number of additional shares that would have been outstanding utilizing the Treasury Stock Method if all shares underlying potentially dilutive stock options were issued and all restricted stock, stock warrants or restricted stock units were to vest during the reporting period. Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income available to common shareholders $ 11,550 $ 11,910 $ 22,975 $ 22,717 Basic weighted-average shares outstanding 19,447,155 18,930,893 19,399,071 18,770,492 Plus: common stock equivalents 121,216 167,945 129,466 226,487 Diluted weighted-average shares outstanding 19,568,371 19,098,838 19,528,537 18,996,979 Net income per share Basic $ 0.59 $ 0.63 $ 1.18 $ 1.21 Diluted 0.59 0.62 1.18 1.20 For the three and six months ended June 30, 2019, stock options and restricted stock units totaling 128,634 and 297,828 were not included in the computation of diluted earnings per share because they were antidilutive. For the three and six months ended June 30, 2018, all stock options and warrants were included in the computation of diluted earnings per share because they were all dilutive, meaning that the exercise price of the stock option was greater than the average market price for the period. Income Taxes: The Company files a consolidated Federal income tax return. Separate state income tax returns are filed for each subsidiary based on current laws and regulations. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its financial statements or tax returns. The measurement of deferred tax assets and liabilities is based on the enacted tax rates. Such tax assets and liabilities are adjusted for the effect of a change in tax rates in the period of enactment. The Company recognizes a tax position as a benefit only if it is “more likely than |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE FOR SALE | 6 Months Ended |
Jun. 30, 2019 | |
Investment Securities Available For Sale [Abstract] | |
INVESTMENT SECURITIES AVAILABLE FOR SALE | 2. INVESTMENT SECURITIES AVAILABLE FOR SALE A summary of amortized cost and approximate fair value of investment securities available for sale included in the consolidated statements of condition as of June 30, 2019 and December 31, 2018 follows: June 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. government-sponsored agencies $ 71,719 $ 104 $ (32 ) $ 71,791 Mortgage-backed securities –residential 282,924 1,972 (959 ) 283,937 SBA pool securities 3,596 — (9 ) 3,587 State and political subdivisions 16,415 48 (20 ) 16,443 Corporate bond 3,000 81 — 3,081 Total $ 377,654 $ 2,205 $ (1,020 ) $ 378,839 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. government-sponsored agencies $ 102,915 $ 82 $ (984 ) $ 102,013 Mortgage-backed securities – residential 254,383 418 (3,439 ) 251,362 SBA pool securities 3,883 — (44 ) 3,839 State and political subdivisions 17,729 27 (146 ) 17,610 Corporate bond 3,000 112 — 3,112 Total $ 381,910 $ 639 $ (4,613 ) $ 377,936 The following tables present the Company’s available for sale securities in a continuous unrealized loss position and the approximate fair value of these investments as of June 30, 2019 and December 31, 2018. June 30, 2019 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses U.S. government-sponsored agencies $ 4,496 $ (4 ) $ 11,969 $ (28 ) $ 16,465 $ (32 ) Mortgage-backed securities-residential 15,433 (23 ) 103,844 (936 ) 119,277 (959 ) SBA pool securities — — 3,587 (9 ) 3,587 (9 ) State and political subdivisions — — 4,111 (20 ) 4,111 (20 ) Total $ 19,929 $ (27 ) $ 123,511 $ (993 ) $ 143,440 $ (1,020 ) December 31, 2018 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses U.S. government-sponsored agencies $ 18,840 $ (103 ) $ 33,600 $ (881 ) $ 52,440 $ (984 ) Mortgage-backed securities-residential 51,697 (303 ) 136,130 (3,136 ) 187,827 (3,439 ) SBA pool securities — — 3,839 (44 ) 3,839 (44 ) State and political subdivisions 421 (1 ) 7,274 (145 ) 7,695 (146 ) Total $ 70,958 $ (407 ) $ 180,843 $ (4,206 ) $ 251,801 $ (4,613 ) Management believes that the unrealized losses on investment securities available for sale are temporary and are due to interest rate fluctuations and/or volatile market conditions rather than the credit worthiness of the issuers. As of June 30, 2019, the Company does not intend to sell these securities nor is it likely that it will be required to sell the securities before their anticipated recovery; therefore, none of the securities in an unrealized loss position were determined to be other-than-temporarily impaired. During the first quarter of 2018, the Company adopted ASU 2016-01 “Financial Instruments” which resulted in the reclassification of the Company’s investment in the CRA investment fund from available for sale to an equity security. This security had a gain of $69 thousand and $128 thousand for the three and six months ended June 30, 2019. This amount is included in securities gains/(losses) on the Consolidated Statements of Income. |
LOANS AND LEASES
LOANS AND LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
LOANS AND LEASES | 3. LOANS AND LEASES Loans outstanding, excluding those held for sale, by general ledger classification, as of June 30, 2019 and December 31, 2018, consisted of the following: % of % of June 30, Totals December 31, Total (Dollars in thousands) 2019 Loans 2018 Loans Residential mortgage $ 570,583 14.16 % $ 571,570 14.55 % Multifamily mortgage 1,129,476 28.03 1,135,805 28.92 Commercial mortgage 694,674 17.24 702,165 17.88 Commercial loans (including equipment financing) 1,517,665 37.67 1,397,057 35.57 Home equity lines of credit 62,522 1.55 62,191 1.58 Consumer loans, including fixed rate home equity loans 53,995 1.34 58,678 1.49 Other loans 424 0.01 465 0.01 Total loans $ 4,029,339 100.00 % $ 3,927,931 100.00 % In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on federal Call Report codes. The following portfolio classes have been identified as of June 30, 2019 and December 31, 2018: % of % of June 30, Totals December 31, Total (Dollars in thousands) 2019 Loans 2018 Loans Primary residential mortgage $ 599,450 14.89 % $ 600,891 15.31 % Home equity lines of credit 62,522 1.55 62,191 1.58 Junior lien loan on residence 7,397 0.18 7,418 0.19 Multifamily property 1,129,476 28.06 1,135,805 28.94 Owner-occupied commercial real estate 249,421 6.20 261,193 6.65 Investment commercial real estate 1,017,505 25.28 1,001,918 25.53 Commercial and industrial 717,851 17.83 616,838 15.72 Lease financing 184,182 4.58 172,643 4.40 Farmland/agricultural production 143 — 149 0.01 Commercial construction loans 125 — 86 0.01 Consumer and other loans 57,415 1.43 65,180 1.66 Total loans $ 4,025,487 100.00 % $ 3,924,312 100.00 % Net deferred costs 3,852 3,619 Total loans including net deferred costs $ 4,029,339 $ 3,927,931 The following tables present the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance for loan and lease losses (ALLL) as of June 30, 2019 and December 31, 2018: June 30, 2019 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALLL Primary residential mortgage $ 8,791 $ 248 $ 590,659 $ 2,809 $ 599,450 $ 3,057 Home equity lines of credit 22 — 62,500 155 62,522 155 Junior lien loan on residence 29 — 7,368 15 7,397 15 Multifamily property — — 1,129,476 5,744 1,129,476 5,744 Owner-occupied commercial real estate 1,451 — 247,970 2,497 249,421 2,497 Investment commercial real estate 18,091 — 999,414 14,650 1,017,505 14,650 Commercial and industrial 6,557 1,000 711,294 10,463 717,851 11,463 Lease financing — — 184,182 1,888 184,182 1,888 Farmland/agricultural production — — 143 2 143 2 Commercial construction loans — — 125 1 125 1 Consumer and other loans — — 57,415 319 57,415 319 Total ALLL $ 34,941 $ 1,248 $ 3,990,546 $ 38,543 $ 4,025,487 $ 39,791 December 31, 2018 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALLL Primary residential mortgage $ 9,518 $ 262 $ 591,373 $ 3,244 $ 600,891 $ 3,506 Home equity lines of credit 255 — 61,936 164 62,191 164 Junior lien loan on residence 36 — 7,382 15 7,418 15 Multifamily property 1,262 — 1,134,543 5,959 1,135,805 5,959 Owner-occupied commercial real estate 1,574 — 259,619 2,614 261,193 2,614 Investment commercial real estate 18,655 — 983,263 14,248 1,001,918 14,248 Commercial and industrial — — 616,838 9,839 616,838 9,839 Lease financing — — 172,643 1,772 172,643 1,772 Farmland/agricultural production — — 149 2 149 2 Commercial construction loans — — 86 1 86 1 Consumer and other loans — — 65,180 384 65,180 384 Total ALLL $ 31,300 $ 262 $ 3,893,012 $ 38,242 $ 3,924,312 $ 38,504 Impaired loans include nonaccrual loans of $31.2 million at June 30, 2019 and $25.7 million at December 31, 2018. Impaired loans also include performing TDR loans of $3.8 million at June 30, 2019 and $4.3 million at December 31, 2018. At June 30, 2019, the allowance allocated to TDR loans totaled $248 thousand, of which $156 thousand was allocated to nonaccrual loans. At December 31, 2018, the allowance allocated to TDR loans totaled $262 thousand of which $161 thousand was allocated to nonaccrual loans. All accruing TDR loans were paying in accordance with restructured terms as of June 30, 2019. The Company has not committed to lend additional amounts as of June 30, 2019 to customers with outstanding loans that are classified as TDR loans. The following tables present loans individually evaluated for impairment by class of loans as of June 30, 2019 and December 31, 2018 (The average impaired loans on the following tables represent year to date impaired loans.): June 30, 2019 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 9,111 $ 7,797 $ — $ 8,002 Owner-occupied commercial real estate 2,684 1,451 — 1,593 Investment commercial real estate 20,041 18,091 — 16,829 Home equity lines of credit 25 22 — 151 Junior lien loan on residence 98 29 — 34 Total loans with no related allowance $ 31,959 $ 27,390 $ — $ 26,609 With related allowance recorded: Primary residential mortgage $ 994 $ 994 $ 248 $ 1,047 Commercial and industrial 6,557 6,557 1,000 1,093 Total loans with related allowance $ 7,551 $ 7,551 $ 1,248 $ 2,140 Total loans individually evaluated for Impairment $ 39,510 $ 34,941 $ 1,248 $ 28,749 December 31, 2018 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 9,789 $ 8,502 $ — $ 8,042 Owner-occupied commercial real estate 2,741 1,574 — 2,025 Investment commercial real estate 20,179 18,655 — 13,999 Home equity lines of credit 257 255 — 123 Junior lien loan on residence 102 36 — 45 Multifamily property 1,262 1,262 — 105 Total loans with no related allowance $ 34,330 $ 30,284 $ — $ 24,339 With related allowance recorded: Primary residential mortgage $ 1,016 $ 1,016 $ 262 $ 1,144 Total loans with related allowance $ 1,016 $ 1,016 $ 262 $ 1,144 Total loans individually evaluated for impairment $ 35,346 $ 31,300 $ 262 $ 25,483 Interest income recognized on impaired loans for the quarters ended June 30, 2019 and 2018 was not material. The Company did not recognize any income on nonaccruing impaired loans for the three and six months ended June 30, 2019 and 2018. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2019 and December 31, 2018: June 30, 2019 Loans Past Due Over 90 Days And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 5,019 $ — Home equity lines of credit 3 — Junior lien loan on residence 29 — Owner-occupied commercial real estate 1,451 — Investment commercial real estate 18,091 — Commercial and industrial 6,557 — Total $ 31,150 $ — December 31, 2018 Loans Past Due Over 90 Days And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 5,215 $ — Home equity lines of credit 235 — Junior lien loan on residence 36 — Owner-occupied commercial real estate 1,574 — Investment commercial real estate 18,655 — Total $ 25,715 $ — The following tables present the aging of the recorded investment in past due loans as of June 30, 2019 and December 31, 2018 by class of loans, excluding nonaccrual loans: June 30, 2019 30-59 60-89 Greater Than Days Days 90 Days Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ — $ 105 $ — $ 105 Owner-occupied commercial real estate — 242 — 242 Commercial construction loans 85 — — 85 Total $ 85 $ 347 $ — $ 432 December 31, 2018 30-59 60-89 Greater Than Days Days 90 Days Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 606 $ 491 $ — $ 1,097 Consumer and other loans 2 — — 2 Total $ 608 $ 491 $ — $ 1,099 Credit Quality Indicators: The Company places all commercial loans into various credit risk rating categories based on an assessment of the expected ability of the borrowers to properly service their debt. The assessment considers numerous factors including, but not limited to, current financial information on the borrower, historical payment experience, strength of any guarantor, nature of and value of any collateral, acceptability of the loan structure and documentation, relevant public information and current economic trends. This credit risk rating analysis is performed when the loan is initially underwritten and then annually based on set criteria in the loan policy. In addition, the Bank has engaged an independent loan review firm to validate risk ratings and to ensure compliance with our policies and procedures. This review of the following types of loans is performed quarterly: • A majority of relationships or new lending to existing relationships greater than $1,000,000; • All criticized and classified rated borrowers with relationship exposure of more than $500,000; • A random sample of borrowers with relationships less than $1,000,000; • All leveraged loans of $1,000,000 or greater; • At least two borrowing relationships managed by each commercial banker; • Any new Regulation “O” loan commitments over $1,000,000; • No borrower with commitments of less than $250,000; • Any other credits requested by Bank senior management or a member of the Board of Directors and any borrower for which the reviewer determines a review is warranted based upon knowledge of the portfolio, local events, industry stresses, etc. The Company uses the following regulatory definitions for criticized and classified risk ratings: Special Mention: These loans have a potential weakness that deserves Management’s close attention. If left uncorrected, the potential weaknesses may result in deterioration of the repayment prospects for the loans or of the institution’s credit position at some future date. Substandard: These loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: These loans have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, based on currently existing facts, conditions and values. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. Loans that are considered to be impaired are individually evaluated for potential loss and allowance adequacy. Loans not deemed impaired are collectively evaluated for potential loss and allowance adequacy. As of June 30, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 589,731 $ 870 $ 8,849 $ — Home equity lines of credit 62,500 — 22 — Junior lien loan on residence 7,368 — 29 — Multifamily property 1,127,545 1,586 345 — Owner-occupied commercial real estate 242,929 - 6,492 — Investment commercial real estate 966,813 18,024 32,668 — Commercial and industrial 701,916 8,205 7,730 — Lease financing 184,182 — — — Farmland/agricultural production 143 — — — Commercial construction loans 39 86 — — Consumer and other loans 57,415 — — — Total $ 3,940,581 $ 28,771 $ 56,135 $ — As of December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 590,372 $ 943 $ 9,576 $ — Home equity lines of credit 61,936 — 255 — Junior lien loan on residence 7,382 — 36 — Multifamily property 1,130,926 3,263 1,616 — Owner-occupied commercial real estate 255,417 249 5,527 — Investment commercial real estate 948,300 20,756 32,862 — Commercial and industrial 608,262 417 8,159 — Lease financing 172,643 — — — Farmland/agricultural production 149 — — — Commercial construction loans — 86 — — Consumer and other loans 64,946 — 234 — Total $ 3,840,333 $ 25,714 $ 58,265 $ — At June 30, 2019, $34.9 million of substandard loans were also considered impaired, compared to December 31, 2018, when $31.2 million of substandard loans were also impaired. The activity in the allowance for loan and lease losses for the three months ended June 30, 2019 is summarized below: April 1, June 30, 2019 2019 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 3,477 $ (80 ) $ 9 $ (349 ) $ 3,057 Home equity lines of credit 152 — 3 — 155 Junior lien loan on residence 15 — — — 15 Multifamily property 5,768 — — (24 ) 5,744 Owner-occupied commercial real estate 2,534 — 64 (101 ) 2,497 Investment commercial real estate 14,410 — — 240 14,650 Commercial and industrial 10,185 — 5 1,273 11,463 Lease financing 1,803 — — 85 1,888 Farmland/agricultural production 2 — — — 2 Commercial construction loans 1 — — — 1 Consumer and other loans 306 (14 ) 1 26 319 Total ALLL $ 38,653 $ (94 ) $ 82 $ 1,150 $ 39,791 The activity in the allowance for loan and lease losses for the three months ended June 30, 2018 is summarized below: April 1, June 30, 2018 2018 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 4,403 $ — $ 139 $ (160 ) $ 4,382 Home equity lines of credit 192 — 2 (4 ) 190 Junior lien loan on residence 16 — 46 (45 ) 17 Multifamily property 9,140 — — (881 ) 8,259 Owner-occupied commercial real estate 2,364 (64 ) — 225 2,525 Investment commercial real estate 12,367 — — 1,292 13,659 Commercial and industrial 7,753 (46 ) 6 (357 ) 7,356 Lease financing 1,036 — — 275 1,311 Farmland/agricultural production 2 — — — 2 Commercial construction loans 1 — — — 1 Consumer and other loans 422 (14 ) 1 (45 ) 364 Total ALLL $ 37,696 $ (124 ) $ 194 $ 300 $ 38,066 The activity in the allowance for loan and lease losses for the six months ended June 30, 2019 is summarized below: January 1, June 30, 2019 2019 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 3,506 $ (80 ) $ 51 $ (420 ) $ 3,057 Home equity lines of credit 164 — 5 (14 ) 155 Junior lien loan on residence 15 — 11 (11 ) 15 Multifamily property 5,959 — — (215 ) 5,744 Owner-occupied commercial real estate 2,614 — 64 (181 ) 2,497 Investment commercial real estate 14,248 — — 402 14,650 Commercial and industrial 9,839 — 9 1,615 11,463 Lease financing 1,772 — — 116 1,888 Farmland/agricultural production 2 — — — 2 Commercial construction loans 1 — — — 1 Consumer and other loans 384 (25 ) 2 (42 ) 319 Total ALLL $ 38,504 $ (105 ) $ 142 $ 1,250 $ 39,791 The activity in the allowance for loan and lease losses for the six months ended June 30, 2018 is summarized below: January 1, June 30, 2018 2018 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 4,085 $ (77 ) $ 139 $ 235 $ 4,382 Home equity lines of credit 221 — 4 (35 ) 190 Junior lien loan on residence 12 — 55 (50 ) 17 Multifamily property 10,007 — — (1,748 ) 8,259 Owner-occupied commercial real estate 2,385 (64 ) 66 138 2,525 Investment commercial real estate 11,933 — — 1,726 13,659 Commercial and industrial 6,563 (46 ) 22 817 7,356 Lease financing 884 — — 427 1,311 Farmland/agricultural production — — — 2 2 Commercial construction loans 1 — — — 1 Consumer and other loans 349 (25 ) 2 38 364 Total ALLL $ 36,440 $ (212 ) $ 288 $ 1,550 $ 38,066 Troubled Debt Restructurings: The Company has allocated $248 thousand and $262 thousand of specific reserves on TDRs to customers whose loan terms have been modified in TDRs as of June 30, 2019 and December 31, 2018, respectively. There were no unfunded commitments to lend additional amounts to customers with outstanding loans that are classified as TDRs. The terms of certain loans were modified as TDRs when one or a combination of the following occurred: a reduction of the stated interest rate of the loan; the maturity date was extended; or some other modification or extension occurred which would not be readily available in the market. There were no loans modified as TDRs during the three months and six months ended June 30, 2019. The following table presents loans by class modified as TDRs during the three-month period ended June 30, 2018: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Contracts Investment Investment Investment commercial real estate 1 $ 15,351 $ 15,351 Total 1 $ 15,351 $ 15,351 The following table presents loans by class modified as TDRs during the six-month period ended June 30, 2018: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Contracts Investment Investment Investment commercial real estate 1 $ 15,351 $ 15,351 Total 1 $ 15,351 $ 15,351 The identification of the TDRs did not have a significant impact on the allowance for loan and lease losses. There were no loans that were modified as TDRs for which there was a payment default within twelve months of modification, during the three and six months ended June 30, 2019. The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at June 30, 2018: Number of Recorded (Dollars in thousands) Contracts Investment Primary residential mortgage 1 $ 336 Total 1 $ 336 In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. The modification of the terms of such loans may include one or more of the following: (1) a reduction of the stated interest rate of the loan to a rate that is lower than the current market rate for new debt with similar risk; (2) an extension of an interest only period for a predetermined period of time; (3) an extension of the maturity date; or (4) an extension of the amortization period over which future payments will be computed. At the time a loan is restructured, the Bank performs a full re-underwriting analysis, which includes, at a minimum, obtaining current financial statements and tax returns, copies of all leases, and an updated independent appraisal of the property. A loan will continue to accrue interest if it can be reasonably determined that the borrower should be able to perform under the modified terms, that the loan has not been chronically delinquent (both to debt service and real estate taxes) or in nonaccrual status since its inception, and that there have been no charge-offs on the loan. Restructured loans with previous charge-offs would not accrue interest at the time of the TDR. At a minimum, six consecutive months of contractual payments would need to be made on a restructured loan before returning it to accrual status. Once a loan is classified as a TDR, the loan is reported as a TDR until the loan is paid in full, sold or charged-off. In rare circumstances, a loan may be removed from TDR status if it meets the requirements of ASC 310-40-50-2. |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
DEPOSITS | 4. DEPOSITS Certificates of deposit, excluding brokered certificates of deposit over $250,000, totaled $172.5 million and $160.3 million at June 30, 2019 and December 31, 2018, respectively. The following table sets forth the details of total deposits as of June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 (Dollars in thousands) Noninterest-bearing demand deposits $ 544,431 13.29 % $ 463,926 11.91 % Interest-bearing checking (1) 1,388,821 33.91 1,247,305 32.02 Savings 112,438 2.75 114,674 2.94 Money market 1,207,358 29.48 1,243,369 31.92 Certificates of deposit - retail 570,384 13.93 510,724 13.12 Certificates of deposit - listing service 58,541 1.43 79,195 2.03 Subtotal deposits 3,881,973 94.79 3,659,193 93.94 Interest-bearing demand - Brokered 180,000 4.39 180,000 4.62 Certificates of deposit - Brokered 33,682 0.82 56,147 1.44 Total deposits $ 4,095,655 100.00 % $ 3,895,340 100.00 % (1) Interest-bearing checking includes $453.1 million at June 30, 2019 and $434.5 million at December 31, 2018 of reciprocal balances in the Reich & Tang or Promontory Demand Deposit Marketplace program. The scheduled maturities of certificates of deposit, including brokered certificates of deposit, as of June 30, 2019 are as follows: (In thousands) 2019 $ 228,856 2020 270,032 2021 65,373 2022 36,185 2023 11,600 Over 5 Years 50,561 Total $ 662,607 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS | 5. FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS Advances from the FHLB totaled $105.0 million with a weighted average interest rate of 3.20 percent and $108.0 million with a weighted average interest rate of 3.17 percent at June 30, 2019 and December 31, 2018, respectively. At June 30, 2019, advances totaling $105.0 million with a weighted average interest rate of 3.20 percent had fixed maturity dates. The fixed maturity date advances at December 31, 2018 totaled $108.0 million with a weighted average interest rate of 3.17 percent. The fixed rate advances are secured by blanket pledges of certain 1-4 family residential mortgages totaling $350.5 million, multifamily mortgages totaling $649.9 million and securities totaling $44.0 million at June 30, 2019, while at December 31, 2018, the fixed rate advances are secured by blanket pledges of certain 1-4 family residential mortgages totaling $496.1 million, multifamily mortgages totaling $1.0 billion and securities totaling $58.5 million. The final maturity dates of the FHLB advances are scheduled as follows: (In thousands) 2021 $ 60,000 2022 20,000 2023 25,000 Total $ 105,000 There were no overnight borrowings with the FHLB as of June 30, 2019 and December 31, 2018. At June 30, 2019, unused short-term overnight borrowing commitments totaled $1.4 billion from FHLB, $22.0 million from correspondent banks and $1.4 billion at the Federal Reserve Bank of New York. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | 6. BUSINESS SEGMENTS The Corporation assesses its results among two operating segments, Banking and Peapack-Gladstone Bank’s Private Wealth Management Division. Management uses certain methodologies to allocate income and expense to the business segments. A funds transfer pricing methodology is used to assign interest income and interest expense. Certain indirect expenses are allocated to segments. These include support unit expenses such as technology and operations and other support functions. Taxes are allocated to each segment based on the effective rate for the period shown. Banking The Banking segment includes commercial (includes C&I and equipment finance), commercial real estate, multifamily, residential and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support and sales. Private Wealth Management Division Peapack-Gladstone Bank’s Private Wealth Management Division, including PGB Trust & Investments of Delaware, MCM, Quadrant and Lassus Wherley, includes investment management services provided for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian, and other financial planning, tax preparation and advisory services. The following tables present the statements of income and total assets for the Corporation’s reportable segments for the three and six months ended June 30, 2019 and 2018. Three Months Ended June 30, 2019 Wealth Management (In thousands) Banking Division Total Net interest income $ 27,934 $ 1,334 $ 29,268 Noninterest income 3,151 9,875 13,026 Total income 31,085 11,209 42,294 Provision for loan and lease losses 1,150 — 1,150 Compensation and benefits 12,685 4,858 17,543 Premises and equipment expense 3,046 554 3,600 FDIC expense 277 — 277 Other noninterest expense 2,553 2,200 4,753 Total noninterest expense 19,711 7,612 27,323 Income before income tax expense 11,374 3,597 14,971 Income tax expense 2,581 840 3,421 Net income $ 8,793 $ 2,757 $ 11,550 Three Months Ended June 30, 2018 Wealth Management (In thousands) Banking Division Total Net interest income $ 27,953 $ 1,290 $ 29,243 Noninterest income 3,353 8,387 11,740 Total income 31,306 9,677 40,983 Provision for loan and lease losses 300 — 300 Compensation and benefits 11,932 3,894 15,826 Premises and equipment expense 2,982 424 3,406 FDIC Expense 625 — 625 Other noninterest expense 3,145 1,939 5,084 Total noninterest expense 18,984 6,257 25,241 Income before income tax expense 12,322 3,420 15,742 Income tax expense 2,997 835 3,832 Net income $ 9,325 $ 2,585 $ 11,910 Six Months Ended June 30, 2019 Wealth Management (In thousands) Banking Division Total Net interest income $ 56,500 $ 2,775 $ 59,275 Noninterest income 5,430 19,325 24,755 Total income 61,930 22,100 84,030 Provision for loan and lease losses 1,250 — 1,250 Compensation and benefits 24,682 10,017 34,699 Premises and equipment expense 5,971 1,017 6,988 FDIC expense 554 — 554 Other noninterest expense 5,311 4,336 9,647 Total noninterest expense 37,768 15,370 53,138 Income before income tax expense 24,162 6,730 30,892 Income tax expense 6,192 1,725 7,917 Net income $ 17,970 $ 5,005 $ 22,975 Total assets at period end $ 4,791,902 $ 79,332 $ 4,871,234 Six Months Ended June 30, 2018 Wealth Management (In thousands) Banking Division Total Net interest income $ 54,801 $ 2,835 $ 57,636 Noninterest income 4,980 16,975 21,955 Total income 59,781 19,810 79,591 Provision for loan and lease losses 1,550 — 1,550 Compensation and benefits 22,263 8,142 30,405 Premises and equipment expense 5,821 855 6,676 FDIC Expense 1,205 — 1,205 Other noninterest expense 5,952 4,040 9,992 Total noninterest expense 36,791 13,037 49,828 Income before income tax expense 22,990 6,773 29,763 Income tax expense 5,442 1,604 7,046 Net income $ 17,548 $ 5,169 $ 22,717 Total assets at period end $ 4,208,731 $ 56,443 $ 4,265,174 |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 7. FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value: Investment Securities: Loans Held for Sale, at Fair Value: Derivatives Impaired Loans: Other Real Estate Owned: Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by Management. Once received, a third party conducts a review of the appraisal for compliance with the Uniform Standards of Professional Appraisal Practice and appropriate analysis methods for the type of property. Subsequently, a member of the Credit Department reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Appraisals on collateral dependent impaired loans and other real estate owned (consistent for all loan types) are obtained on an annual basis, unless a significant change in the market or other factors warrants a more frequent appraisal. On an annual basis, Management compares the actual selling price of any collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value for other properties. The most recent analysis performed indicated that a discount up to 15 percent should be applied to appraisals on properties. The discount is determined based on the nature of the underlying properties, aging of appraisals and other factors. For each collateral-dependent impaired loan, we consider other factors, such as certain indices or other market information, as well as property specific circumstances to determine if an adjustment to the appraised value is needed. In situations where there is evidence of change in value, the Bank will determine if there is a need for an adjustment to the specific reserve on the collateral dependent impaired loans. When the Bank applies an interim adjustment, it generally shows the adjustment as an incremental specific reserve against the loan until it has received the full updated appraisal. All collateral-dependent impaired loans and other real estate owned valuations were supported by an appraisal less than 12 months old or in the process of obtaining an appraisal as of June 30, 2019. The following table summarizes, for the periods indicated, assets measured at fair value on a recurring basis, including financial assets for which the Corporation has elected the fair value option: Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs (In thousands) 2019 (Level 1) (Level 2) (Level 3) Assets: Available for sale: U.S. government-sponsored agencies $ 71,791 $ — $ 71,791 $ — Mortgage-backed securities-residential 283,937 — 283,937 — SBA pool securities 3,587 — 3,587 — State and political subdivisions 16,443 — 16,443 — Corporate bond 3,081 — 3,081 — CRA investment fund 4,847 4,847 — — Loans held for sale, at fair value 2,343 — 2,343 — Derivatives: Cash flow hedges 175 — 175 — Loan level swaps 30,569 — 30,569 — Total $ 416,773 $ 4,847 $ 411,926 $ — Liabilities: Derivatives: Cash flow hedges $ (4,074 ) $ — $ (4,074 ) $ — Loan level swaps (30,569 ) — (30,569 ) — Total $ (34,643 ) $ — $ (34,643 ) $ — Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs (In thousands) 2018 (Level 1) (Level 2) (Level 3) Assets: Securities available for sale: U.S. government-sponsored agencies $ 102,013 $ — $ 102,013 $ — Mortgage-backed securities-residential 251,362 — 251,362 — SBA pool securities 3,839 — 3,839 — State and political subdivisions 17,610 — 17,610 — Corporate bond 3,112 — 3,112 — CRA investment fund 4,719 4,719 — — Loans held for sale, at fair value 1,576 — 1,576 — Derivatives: Cash flow hedges 1,657 — 1,657 — Loan level swaps 9,689 — 9,689 — Total $ 395,577 $ 4,719 $ 390,858 $ — Liabilities: Derivatives: Cash flow hedges $ (849 ) $ — $ (849 ) $ — Loan level swaps (9,689 ) — (9,689 ) — Total $ (10,538 ) $ — $ (10,538 ) $ — The Company has elected the fair value option for certain loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment. None of these loans are 90 days or more past due nor on nonaccrual as of June 30, 2019 and December 31, 2018. The following tables present residential loans held for sale, at fair value for the periods indicated: (In thousands) June 30, 2019 December 31, 2018 Residential loans contractual balance $ 2,306 $ 1,552 Fair value adjustment 37 24 Total fair value of residential loans held for sale $ 2,343 $ 1,576 There were no transfers between Level 1 and Level 2 during the three and six months ended June 30, 2019. There were no loans measured for impairment using the fair value of collateral as of June 30, 2019 and December 31, 2018. The carrying amounts and estimated fair values of financial instruments at June 30, 2019 are as follows: Fair Value Measurements at June 30, 2019 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 304,027 $ 304,027 $ — $ — $ 304,027 Securities available for sale 378,839 — 378,839 — 378,839 CRA investment fund 4,847 4,847 — — 4,847 FHLB and FRB stock 18,338 — — — N/A Loans held for sale, at fair value 2,343 — 2,343 — 2,343 Loans held for sale, at lower of cost or fair value 926 — 1,000 — 1,000 Loans, net of allowance for loan and lease losses 3,989,548 — — 3,946,808 3,946,808 Accrued interest receivable 11,594 — 1,708 9,886 11,594 Cash flow hedges 175 — 175 — 175 Loan level swaps 30,569 — 30,569 — 30,569 Financial liabilities Deposits $ 4,095,655 $ 3,433,048 $ 665,573 $ — $ 4,098,621 Federal home loan bank advances 105,000 — 108,401 — 108,401 Subordinated debt 83,305 — — 84,400 84,400 Accrued interest payable 2,494 430 2,009 55 2,494 Cash flow hedges 4,074 — 4,074 — 4,074 Loan level swap 30,569 — 30,569 — 30,569 The carrying amounts and estimated fair values of financial instruments at December 31, 2018 are as follows: Fair Value Measurements at December 31, 2018 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 160,773 $ 160,773 $ — $ — $ 160,773 Securities available for sale 377,936 — 377,936 — 377,936 CRA investment fund 4,719 4,719 — — 4,719 FHLB and FRB stock 18,533 — — — N/A Loans held for sale, at fair value 1,576 — 1,576 — 1,576 Loans held for sale, at lower of cost or fair value 3,542 — 3,654 — 3,654 Loans, net of allowance for loan and lease losses 3,889,427 — — 3,852,004 3,852,004 Accrued interest receivable 10,814 — 1,875 8,939 10,814 Cash flow Hedges 1,657 — 1,657 — 1,657 Loan level swaps 9,689 — 9,689 — 9,689 Financial liabilities Deposits $ 3,895,340 $ 3,249,274 $ 640,997 $ — $ 3,890,271 Federal home loan bank advances 108,000 — 108,950 — 108,950 Subordinated debt 83,193 — — 82,207 82,207 Accrued interest payable 2,868 331 2,482 55 2,868 Cash flow hedges 849 — 849 — 849 Loan level swaps 9,689 — 9,689 — 9,689 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 8. REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized as noninterest income. The following table presents the sources of noninterest income for the periods indicated: For the Three Months Ended June 30, (In thousands) 2019 2018 Service charges on deposits Overdraft fees $ 164 $ 183 Interchange income 322 326 Other 411 364 Wealth management fees (a) 9,568 8,126 Other (b) 2,561 2,741 Total noninterest other income $ 13,026 $ 11,740 For the Six Months Ended June 30, (In thousands) 2019 2018 Service charges on deposits Overdraft fees $ 324 $ 364 Interchange income 586 616 Other 803 724 Wealth management fees (a) 18,742 16,493 Other (a) 4,300 3,758 Total noninterest other income $ 24,755 $ 21,955 (a) Includes investment brokerage fees. (b) All of the other category is outside the scope of ASC 606. The following table presents the sources of noninterest income by operating segment for the periods indicated: For the Three Months Ended June 30, For the Three Months Ended June 30, 2019 2018 (In thousands) Wealth Wealth Revenue by Operating Segment Banking Management Total Banking Management Total Service charges on deposits Overdraft fees $ 164 $ — $ 164 $ 183 $ — $ 183 Interchange income 322 — 322 326 — 326 Other 411 — 411 364 — 364 Wealth management fees (a) — 9,568 9,568 — 8,126 8,126 Other (b) 2,254 307 2,561 2,480 261 2,741 Total noninterest income $ 3,151 $ 9,875 $ 13,026 $ 3,353 $ 8,387 $ 11,740 For the Six Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2019 2018 Revenue by Operating Wealth Wealth Segment Banking Management Total Banking Management Total Service charges on deposits Overdraft fees $ 324 $ — $ 324 $ 364 $ — $ 364 Interchange income 586 — 586 616 — 616 Other 803 — 803 724 — 724 Wealth management fees (a) — 18,742 18,742 — 16,493 16,493 Other (a) 3,717 583 4,300 3,276 482 3,758 Total noninterest income $ 5,430 $ 19,325 $ 24,755 $ 4,980 $ 16,975 $ 21,955 (a) Includes investment brokerage fees. (b) All of the other category is outside the scope of ASC 606. A description of the Company’s revenue streams accounted for under ASC 606 follows: Service charges on deposit accounts Interchange income Wealth management fees (gross) Investment brokerage fees (net) th Gains/(losses) on sales of OREO Other |
OTHER OPERATING EXPENSES
OTHER OPERATING EXPENSES | 6 Months Ended |
Jun. 30, 2019 | |
Other Income And Expenses [Abstract] | |
OTHER OPERATING EXPENSES | 9. OTHER OPERATING EXPENSES The following table presents the major components of other operating expenses for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2019 2018 2019 2018 Professional and legal fees 968 1,178 2,092 2,292 Telephone 377 271 657 555 Advertising 409 414 768 725 Amortization of intangible assets 229 180 458 359 Provision for ORE — 204 — 204 Other operating expenses 2,770 2,837 5,672 5,857 Total other operating expenses $ 4,753 $ 5,084 $ 9,647 $ 9,992 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders Equity Note [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME | 10. ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME The following is a summary of the accumulated other comprehensive income/(loss) balances, net of tax, for the three months ended June 30, 2019 and 2018: Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at April 1, Before Comprehensive June 30, June 30, (In thousands) 2019 Reclassifications Income/(Loss) 2019 2019 Net unrealized holding loss on securities available for sale, net of tax $ (1,278 ) $ 2,176 — $ 2,176 $ 898 Gain/(loss) on cash flow hedges (451 ) (2,029 ) (22 ) (2,051 ) (2,502 ) Accumulated other comprehensive loss, net of tax $ (1,729 ) $ 147 $ (22 ) $ 125 $ (1,604 ) Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at April 1, Before Comprehensive June 30, June 30, (In thousands) 2018 Reclassifications Income/(Loss) 2018 2018 Net unrealized holding loss on securities available for sale, net of tax $ (4,345 ) $ (494 ) $ — $ (494 ) $ (4,839 ) Gain on cash flow hedges 1,503 605 (23 ) 582 2,085 Accumulated other comprehensive loss, net of tax $ (2,842 ) $ 111 $ (23 ) $ 88 $ (2,754 ) The following represents the reclassifications out of accumulated other comprehensive income for the three months ended June 30, 2019 and 2018: Three Months Ended June 30, (In thousands) 2019 2018 Affected Line Item in Income Statement Unrealized gains on cash flow hedge derivatives: Reclassification adjustment for amounts included in net income $ (31 ) $ (31 ) Interest expense Income tax expense 9 8 Income tax expense Total reclassifications, net of tax $ (22 ) $ (23 ) The following is a summary of the accumulated other comprehensive (loss)/income balances, net of tax, for the six months ended June 30, 2019 and 2018: Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Six Months Balance at Income/(Loss) Other Ended Balance at January 1, Before Comprehensive June 30, June 30, (In thousands) 2019 Reclassifications Income/(Loss) 2019 2019 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ (3,006 ) $ 3,904 $ — $ 3,904 $ 898 Gain/(loss) on cash flow hedges 661 (3,120 ) (43 ) (3,163 ) (2,502 ) Accumulated other comprehensive loss, net of tax $ (2,345 ) $ 784 $ (43 ) $ 741 $ (1,604 ) Amount Other Reclassified Comprehensive Cumulative Other From Income/(Loss) Adjustment Comprehensive Accumulated Six Months Balance at For Equity Income/(Loss) Other Ended Balance at January 1, Security Before Comprehensive June 30, June 30, (In thousands) 2018 (ASU 2016-1) Reclassifications Income/(Loss) 2018 2018 Net unrealized holding loss on securities available for sale, net of tax $ (2,214 ) $ 127 $ (2,752 ) $ — $ (2,752 ) $ (4,839 ) Gain/(loss) on cash flow hedges 1,002 — 1,128 (45 ) 1,083 2,085 Accumulated other comprehensive loss, net of tax $ (1,212 ) $ 127 $ (1,624 ) $ (45 ) $ (1,669 ) $ (2,754 ) The following represents the reclassifications out of accumulated other comprehensive income for the six months ended June 30, 2019 and 2018: Six Months Ended June 30, (In thousands) 2019 2018 Affected Line Item in Income Unrealized gains on cash flow hedge derivatives: Reclassification adjustment for amounts included in net income $ (62 ) $ (62 ) Interest expense Income tax expense 19 17 Income tax expense Total reclassifications, net of tax $ (43 ) $ (45 ) |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 11. DERIVATIVES The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest Rate Swaps Designated as Cash Flow Hedges: The following table presents information about the interest rate swaps designated as cash flow hedges as of June 30, 2019 and December 31, 2018: (Dollars in thousands) June 30, 2019 December 31, 2018 Notional amount $ 230,000 $ 230,000 Weighted average pay rate 2.04 % 2.04 % Weighted average receive rate 2.48 % 2.33 % Weighted average maturity 2.88 years 2.65 years Unrealized (loss)/gain, net $ (3,899 ) $ 808 Number of contracts 11 11 Net interest income recorded on these swap transactions totaled $290 thousand and $625 thousand for the three and six months ended June 30, 2019, respectively, and is reported as a component of interest expense. Net interest income recorded on these swap transactions totaled $33 thousand and $13 thousand for the three and six months ended June 30, 2018, respectively, and is reported as a component of interest expense. Cash Flow Hedges The following table presents the net gain recorded in accumulated other comprehensive (loss)/income and the consolidated financial statements relating to the cash flow derivative instruments for the three and six months ended June 30, 2019 and June 30, 2018: For the Three Months Ended June 30, (In thousands) 2019 2018 Interest rate contracts Amount of gain/(loss) recognized in OCI $ (2,051 ) $ 582 Amount of gain/(loss) reclassified from OCI to interest expense 22 23 For the Six Months Ended June 30, (In thousands) 2019 2018 Interest rate contracts Amount of gain/(loss) recognized in OCI (effective portion) $ (3,163 ) $ 1,083 Amount of gain/(loss) reclassified from OCI to interest expense 43 45 During the first quarter of 2018, t June 30, 2019 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing deposits $ 230,000 $ (3,899 ) Total included in other assets 55,000 175 Total included in other liabilities 175,000 (4,074 ) December 31, 2018 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing deposits $ 230,000 $ 808 Total included in other assets 130,000 1,657 Total included in other liabilities 100,000 (849 ) Derivatives Not Designated as Accounting Hedges: Information about these swaps is as follows: (Dollars in thousands) June 30, 2019 December 31, 2018 Notional amount $ 539,092 $ 558,690 Fair value $ 30,569 $ 9,689 Weighted average pay rates 4.41 % 4.44 % Weighted average receive rates 4.21 % 4.24 % Weighted average maturity 7.4 years 7.1 years Number of contracts 64 67 |
SUBORDINATED DEBT
SUBORDINATED DEBT | 6 Months Ended |
Jun. 30, 2019 | |
Subordinated Longterm Debt Current And Noncurrent [Abstract] | |
SUBORDINATED DEBT | 12. SUBORDINATED DEBT During June 2016, the Company issued $50.0 million in aggregate principal amount of fixed-to-floating subordinated notes (the “2016 Notes”) to certain institutional investors. The 2016 Notes are non-callable for five years, have a stated maturity of June 30, 2026, and bear interest at a fixed rate of 6.0% per year until June 30, 2021. From June 30, 2021 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month LIBOR rate plus 485 basis points, payable quarterly in arrears. Debt issuance costs incurred totaled $1.3 million and are being amortized to maturity. Approximately $40.0 million of the net proceeds from the sale of the 2016 Notes were contributed by the Company to the Bank in the second quarter of 2016. The remaining funds (approximately $10 million) were retained by the Company for operational purposes. During December 2017, the Company issued $35.0 million in aggregate principal amount of fixed-to-floating subordinated notes (the “2017 Notes”) to certain institutional investors. The 2017 Notes are non-callable for five years, have a stated maturity of December 15, 2027, and bear interest at a fixed rate of 4.75% per year until December 15, 2022. From December 16, 2022 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month LIBOR rate plus 254 basis points, payable quarterly in arrears. Debt issuance costs incurred totaled $875 thousand and are being amortized to maturity. Approximately $29.1 million of the net proceeds from the sale of the 2017 Notes were contributed by the Company to the Bank in the fourth quarter of 2017. The remaining funds of approximately $5 million, representing three years of interest payments, were retained by the Company for operational purposes. Subordinated debt is presented net of issuance costs on the Consolidated Statements of Condition. The subordinated debt issuances are included in the Company’s regulatory total capital amount and ratio. In connection with the issuance of the 2017 Notes, the Company obtained ratings from Kroll Bond Rating Agency (“KBRA”). KBRA an assigned investment grade rating of BBB- for the Company’s subordinated debt. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | 13. LEASES Leases (Topic 842) Targeted Improvements Leases The Company maintains certain property and equipment under direct financing and operating leases. Upon adoption of the new lease guidance, on January 1, 2019, the Company recorded a ROU asset and corresponding lease liability of $7.9 million and $8.2 million, respectively, on the consolidated statement of condition. As of June 30, 2019, the Company's operating lease ROU asset and operating lease liability totaled $11.0 million and $11.3 million, respectively. A weighted average discount rate of 3.35% was used in the measurement of the ROU asset and lease liability as of June 30, 2019. The Company's leases have remaining lease terms between one to 18 years, with a weighted average lease term of 6.06 years at June 30, 2019. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. Total operating lease costs were $757 thousand and $1.4 million for the three and six months ended June 30, 2019, respectively. The variable lease costs were $82 thousand and $155 thousand for the three and six months ended June 30, 2019, respectively. The following is a schedule of the Company's operating lease liabilities by contractual maturity as of June 30, 2019: (In thousands) 2019 $ 2,666 2020 2,506 2021 1,715 2022 1,459 2023 999 Thereafter 2,112 Total lease payments 11,457 Less: imputed interest 188 Total present value of lease payments 11,269 The following table shows the supplemental cash flow information related to the Company’s direct finance and operating leases for the six months ended June 30, 2019: (In thousands) Right-of-use asset obtained in exchange for lease obligation $ 7,862 Operating cash flows from operating leases 1,140 Operating cash flows from direct finance leases 196 Financing cash flows from direct finance leases 374 |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | 14. ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. The standard requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. For lessees, virtually all leases will be required to be recognized on the balance sheet by recording a right-of-use asset and lease liability. Subsequent accounting for leases varies depending on whether the lease is an operating lease or a finance lease. The ASU requires additional qualitative and quantitative disclosures with the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU 2018-11 “Leases (Topic 842) Targeted Improvements” which allows entities adopting ASU No. 2016-02 to choose an additional transition method, under which an entity to initially applies the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendment in this update becomes effective for annual periods and interim periods within those annual periods beginning after December 15, 2018. The Company has elected the transition method permitted by ASU No. 2018-11 under which an entity shall recognize and measure leases that exist at the application date and prior comparative periods are not adjusted. Upon adoption of the new lease guidance on January 1, 2019, the Company recorded a lease liability of approximately $8.2 million, a right-of-use-asset of approximately $7.9 million and a cumulative effect adjustment to retained earnings of $661 thousand. On June 16, 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This ASU replaces the incurred loss model with an expected loss model, referred to as “current expected credit loss” (CECL) model. It will significantly change estimates for credit losses related to financial assets measured at amortized cost, including loans receivable, held-to-maturity (HTM) debt securities and certain other contracts. The largest impact will be on lenders and the allowance for loan and lease losses (ALLL). ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. The Company has reviewed the potential impact to our securities portfolio, which primarily consists of U.S. government sponsored entities, mortgage-backed securities and municipal securities which have no history of credit loss and have strong credit ratings. The Company does not expect the standard to have a material impact on its financial statements as it relates to the Company’s securities portfolio. The Company is also currently evaluating the impact the CECL model will have on our accounting and allowance for loan and lease losses. The Company has evaluated and selected a third-party firm to assist in the development of a CECL program and in the calculation of the allowance for loan and lease losses in preparation for the change to the expected loss model. The Company continues to work towards implementing the accounting, reporting and governance processes required under the new standard and expect to complete the model implementation and validation by the end of the third quarter of 2019. The Company expects to recognize a one-time cumulative-effect adjustment to our allowance for loan and lease losses through retained earnings as of the beginning of the first reporting period in which the new standard is effective. The Company cannot yet determine the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on our consolidated financial condition or results of operations. In May 2017, the FASB issued ASU 2017-09: “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting”. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: 1.) The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. 2.) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. 3.) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this update. The amendments in this update are effective for public business entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods. The amendments in this ASU did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement |
PENDING ACQUISITION
PENDING ACQUISITION | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
PENDING ACQUISITION | 15. PENDING ACQUISITION On July 3, 2019, the Company announced that it had entered into a definitive agreement to acquire Summit, NJ-based Point View Wealth Management, Inc. (“Point View”) with AUM/AUA over $325 million. The transaction is expected to close in the third quarter of 2019 and will be a combination of cash and equity, subject to the receipt of regulatory approval and other customary closing conditions. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Organization | Principles of Consolidation and Organization: The consolidated financial statements of the Company are prepared on the accrual basis and include the accounts of the Company and its wholly-owned subsidiary, Peapack-Gladstone Bank (the “Bank”). The consolidated financial statements also include the Bank’s wholly-owned subsidiaries, PGB Trust & Investments of Delaware, Peapack Capital Corporation (“PCC”) (formed in the second quarter of 2017), Murphy Capital Management (“MCM”) (acquired in the third quarter of 2017), Quadrant Capital Management (“Quadrant”) (acquired in the fourth quarter of 2017), Lassus Wherley & Associates (“Lassus Wherley”) (acquired in the third quarter of 2018), Peapack-Gladstone Mortgage Group, Inc. and Peapack-Gladstone Mortgage Group’s wholly-owned subsidiary, PG Investment Company of Delaware, Inc. and its wholly-owned subsidiary, Peapack-Gladstone Realty, Inc., a New Jersey real estate investment company. While the following footnotes include the collective results of the Company and the Bank and their subsidiaries, these footnotes primarily reflect the Bank’s and its subsidiaries’ activities. All significant intercompany balances and transactions have been eliminated from the accompanying consolidated financial statements. |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation : The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles. In preparing the financial statements, Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the statement of condition and revenues and expenses for that period. Actual results could differ from those estimates. |
Segment Information | Segment Information : The Company’s business is conducted through two business segments: its banking subsidiary, which involves the delivery of loan and deposit products to customers, and the Private Wealth Management Division, which includes asset management services provided for individuals and institutions. Management uses certain methodologies to allocate income and expense to the business segments. The Banking segment includes commercial (includes C&I and equipment financing), commercial real estate, multifamily, residential and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support services. Peapack-Gladstone Bank’s Private Wealth Management Division includes: investment management services for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian; and other financial planning, tax preparation and advisory services. This segment also includes the activity from the Delaware subsidiary, PGB Trust and Investments of Delaware, MCM, Quadrant and Lassus Wherley. Wealth management fees are primarily earned based upon AUM and are generally assessed on a monthly or quarterly basis on a tiered fee schedule based on the market value of AUM at the end of the period. |
Cash and Cash Equivalents | Cash and Cash Equivalents: For purposes of the statements of cash flows, cash and cash equivalents include cash and due from banks, interest-earning deposits and federal funds sold. Generally, federal funds are sold for one-day periods. Cash equivalents are of original maturities of 90 days or less. Net cash flows are reported for customer loan and deposit transactions and overnight borrowings. |
Interest-Earning Deposits in Other Financial Institutions | Interest-Earning Deposits in Other Financial Institutions : Interest-earning deposits in other financial institutions mature within one year and are carried at cost. |
Securities | Securities : All debt securities are classified as available for sale and are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income/(loss), net of tax, with the exception of the Company’s investment in a CRA investment fund, which is classified as an equity security. In accordance with ASU 2016-01, “Financial Instruments” (adopted January 1, 2018), unrealized holding gains and losses on equity securities are marked to market through the income statement. Interest income includes amortization of purchase premiums and discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated and premiums on callable debt securities which are amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, Management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) other-than-temporary impairment related to credit loss, which is recognized in the income statement and 2) other-than-temporary impairment related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. |
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock | Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock: The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock, based on the level of borrowings and other factors. FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank is also a member of the Federal Reserve Bank System and required to own a certain amount of FRB stock. FRB stock is carried at cost and classified as a restricted security. Both cash and stock dividends are reported as income. |
Loans Held for Sale | Loans Held for Sale: Mortgage loans originated with the intent to sell in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released; therefore, no servicing rights are recorded. Gains and losses on sales of mortgage loans, shown as gain on sale of loans on the income statement, are based on the difference between the selling price and the carrying value of the related loan sold. U.S. Small Business Administration (SBA) loans originated with the intent to sell in the secondary market are carried at the lower of cost or fair value. SBA loans are generally sold with the servicing rights retained. Total SBA loans serviced totaled $43.8 million and $35.1 million as of June 30, 2019 and December 31, 2018, respectively. SBA loans held for sale totaled $926 thousand and $1.2 million at June 30, 2019 and December 31, 2018, respectively. Loans originated with the intent to hold and subsequently transferred to loans held for sale are carried at the lower of cost or fair value. These are loans that the Company no longer has the intent to hold for the foreseeable future. |
Loans | Loans: Loans that Management has the intent and ability to hold for the foreseeable future or until maturity are stated at the principal amount outstanding. Interest on loans is recognized based upon the principal amount outstanding. Loans are stated at face value, less purchased premium and discounts and net deferred fees. Loan origination fees and certain direct loan origination costs are deferred and recognized on a level-yield method, over the life of the loan as an adjustment to the loan’s yield. The definition of recorded investment in loans includes accrued interest receivable and deferred fees/cost, however, for the Company’s loan disclosures, accrued interest and deferred fees/cost were excluded as the impact was not material. Loans are considered past due when they are not paid within 30 days in accordance with contractual terms. The accrual of income on loans, including impaired loans, is discontinued if, in the opinion of Management, principal or interest is not likely to be paid in accordance with the terms of the loan agreement, or when principal or interest is past due 90 days unless the asset is both well secured and in the process of collection. All interest accrued but not received for loans placed on nonaccrual are reversed against interest income. Payments received on nonaccrual loans are recorded as principal payments. A nonaccrual loan is returned to accrual status only when interest and principal payments are brought current and future payments are reasonably assured, generally when the Bank receives contractual payments for a minimum of six consecutive months. Commercial loans are generally charged off after an analysis is completed which indicates that collectability of the full principal balance is in doubt. Consumer loans are generally charged off after they become 120 days past due. Subsequent payments are credited to income only if collection of principal is not in doubt. If principal and interest payments are brought contractually current and future collectability is reasonably assured, loans may be returned to accrual status. Nonaccrual mortgage loans are generally charged off to the extent that the value of the underlying collateral does not cover the outstanding principal balance. The majority of the Company’s loans are secured by real estate in New Jersey and New York. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses: The allowance for loan and lease losses is a valuation allowance for credit losses that is Management’s estimate of probable losses in the loan portfolio. The process to determine reserves utilizes analytic tools and Management judgment and is reviewed on a quarterly basis. When Management is reasonably certain that a loan balance is not fully collectable, an impairment analysis is completed whereby a specific reserve may be established or a full or partial charge off is recorded against the allowance. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the size and composition of the portfolio, information about specific borrower situations, estimated collateral values, economic conditions and other factors. Allocations of the allowance may be made for specific loans via a specific reserve, but the entire allowance is available for any loan that, in Management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component of the allowance relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by Management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans are individually evaluated for impairment when they are classified as substandard by Management. If a loan is considered impaired, a portion of the allowance may be allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or if repayment is expected solely from the underlying collateral, the loan principal balance is compared to the fair value of collateral less estimated disposition costs to determine the need, if any, for a charge off. A troubled debt restructuring (“TDR”) is a modified loan with concessions made by the lender to a borrower who is experiencing financial difficulty. TDRs are impaired and are generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral, less estimated disposition costs. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan and lease losses. The general component of the allowance covers non-impaired loans and is based primarily on the Company’s historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experience by the Company on a weighted average basis over the previous three years. This actual loss experience is adjusted by other qualitative factors based on the risks present for each portfolio segment. These qualitative factors include consideration of the following: levels of and trends in delinquencies and impaired loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staffing and experience; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. For loans that are graded as non-impaired, the Company allocates a higher general reserve percentage than pass-rated loans using a multiple that is calculated annually through a migration analysis. At both June 30, 2019 and December 31, 2018, the multiple was 2.25 times for non-impaired special mention loans and 3.5 times for non-impaired substandard loans. In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on Federal call report codes, which are based on collateral or purpose. The following portfolio classes have been identified: Primary Residential Mortgages Home Equity Lines of Credit Junior Lien Loan on Residence Multifamily and Commercial Real Estate Loans Commercial and Industrial Loans Leasing and Equipment Finance Asset risk in PCC’s portfolio is generally recognized through changes to loan income, or though changes to lease related income streams due to fluctuations in lease rates. Changes to lease income can occur when the existing lease contract expires, the asset comes off lease or the business seeks to enter a new lease agreement. Asset risk may also change depreciation, resulting from changes in the residual value of the operating lease asset or through impairment of the asset carrying value, which can occur at any time during the life of the asset. Credit risk in PCC’s portfolio generally results from the potential default of borrowers or lessees, which may be driven by customer specific or broader industry related conditions. Credit losses can impact multiple parts of the income statement including loss of interest/lease/rental income and/or via higher costs and expenses related to the repossession, refurbishment, re-marketing and or re-leasing of assets. Consumer and Other |
Leases | Leases: At inception, contracts are evaluated to determine whether the contract constitutes a lease agreement. For contracts that are determined to be an operating lease, a corresponding right-of-use (“ROU”) asset and operating lease liability are recorded in separate line items on the statement of condition. A ROU asset represents the Company’s right to use an underlying asset during the lease term and a lease liability represents the Company’s commitment to make contractually obligated lease payments. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease and are based on the present value of lease payments over the lease term. The measurement of the operating lease ROU asset includes any lease payments made. As the rate implicit in the lease is not readily determinable, the incremental collateralized borrowing rate is used to determine the present value of lease payments. This rate gives consideration to the applicable FHLB collateralized borrowing rates and is based on the information available at the commencement date. The Company has elected to apply the short-term lease measurement and recognition exemption to leases with an initial term of 12 months or less; therefore, these leases are not recorded on the Company’s statement of condition, but rather, lease expense is recognized over the lease term on a straight-line basis. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. The Company maintains certain property and equipment under direct financing and operating leases. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches and office space and are classified as operating leases. The Company has two existing finance leases (previously classified as a capital lease and included in premises and equipment on our statement of condition at December 31, 2018) for the Company’s administration building and one branch location. Topic 842 did not materially impact the accounting for these capital leases. The ROU asset is measured at the amount of the lease liability adjusted for lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the ROU asset. Operating lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the lease liability, and any impairment of the right-of-use-asset. There are no terms or conditions related to residual value guarantees and no restrictions or covenants that would impact the Company’s ability to pay dividends or to incur additional financial obligations. |
Derivatives | Derivatives: At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation. For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For cash flow hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. When hedge accounting is discontinued on a fair value hedge that no longer qualifies as an effective hedge, the derivative continues to be reported at fair value in the statement of condition, but the carrying amount of the hedged item is no longer adjusted for future changes in fair value. The adjustment to the carrying amount of the hedged item that existed at the date hedge accounting is discontinued is amortized over the remaining life of the hedged item into earnings. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminated, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. |
Stock-Based Compensation | Stock-Based Compensation: The Company’s 2006 Long-Term Stock Incentive Plan and 2012 Long-Term Stock Incentive Plan allow the granting of shares of the Company’s common stock as incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units and stock appreciation rights to directors, officers and employees of the Company and its subsidiaries. The options granted under these plans are, in general, exercisable not earlier than one year after the date of grant, at a price equal to the fair value of common stock on the date of grant and expire not more than ten years after the date of grant. Stock options may vest during a period of up to five years after the date of grant. Some options granted to officers at or above the senior vice president level were immediately exercisable at the date of grant. The Company has a policy of using authorized but unissued shares to satisfy option exercises. Upon adoption of ASU 2016-09, “Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting,” the Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. For the Company’s stock option plans, changes in options outstanding during the six months ended June 30, 2019 were as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Term (In thousands) Balance, January 1, 2019 91,310 $ 13.63 Exercised during 2019 (1,520 ) 14.28 Expired during 2019 (630 ) 22.57 Forfeited during 2019 (20,000 ) 13.07 Balance, June 30, 2019 69,160 $ 13.69 2.33 years $ 998 Vested and expected to vest 69,160 $ 13.69 2.33 years $ 998 Exercisable at June 30, 2019 69,160 $ 13.69 2.33 years $ 998 The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the second quarter of 2019 and the exercise price, multiplied by the number of in-the-money options). The Company’s closing stock price on June 30, 2019 was $28.12. There were no stock options granted during the three or six months ended June 30, 2019. The Company has previously granted performance-based and service-based restricted stock awards/units. Service-based awards/units vest ratably over a three or five-year period. There were 729 service-based restricted stock units granted in the second quarter of 2019 with a three-year vesting period and there were 27,925 service-based restricted stock units granted in the second quarter of 2019 with a five-year vesting period. The performance-based awards are dependent upon the Company meeting certain performance criteria and, to the extent the performance criteria are met, will cliff vest at the end of the performance period which is generally three years. There were no performance-based restricted stock units granted in the second quarter of 2019. Changes in non-vested shares dependent on performance criteria for the six months ended June 30, 2019 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2019 42,998 $ 35.33 Granted during 2019 47,770 26.34 Balance, June 30, 2019 90,768 $ 30.60 Changes in service-based restricted stock awards/units for the six months ended June 30, 2019 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2019 366,541 $ 30.64 Granted during 2019 223,396 26.51 Vested during 2019 (140,178 ) 27.44 Forfeited during 2019 (3,214 ) 31.35 Balance, June 30, 2019 446,545 $ 29.98 As of June 30, 2019, there was $46 thousand of total unrecognized compensation cost related to service-based awards. That cost is expected to be recognized over a weighted average period of 0.34 years. As of June 30, 2019, there was $12.8 million of total unrecognized compensation cost related to service-based and performance-based units. That cost is expected to be recognized over a weighted average period of 1.31 years. Stock compensation expense recorded for the second quarters of 2019 and 2018 totaled $1.5 million and $1.3 million, respectively. Stock compensation expense recorded for the six months ended June 30, 2019 and 2018 totaled $2.9 million and $2.4 million, respectively. |
Employee Stock Purchase Plan | Employee Stock Purchase Plan (“ESPP”): In 2014, the shareholders of the Company approved the ESPP. The ESPP provides for the granting of rights to purchase up to 150,000 shares of Corporation common stock. Subject to certain eligibility requirements and restrictions, the ESPP allows employees to purchase shares during four three-month offering periods (“Offering Period”). An amendment to the ESPP plan has changed the offering period to one twelve-month period to commence in the third quarter of 2019. Each participant in the Offering Period is granted an option to purchase a number of shares and may contribute between 1% and 15% of their compensation. At the end of the Offering Period on the purchase date, the number of shares to be purchased by the employee is determined by dividing the employee’s contributions accumulated during the Offering Period by the applicable purchase price. The purchase price is an amount equal to 85% of the closing market price of a share of Company common stock on the purchase date. Participation in the ESPP is entirely voluntary and employees can cancel their purchases at any time during the Offering Period without penalty. The fair value of each purchase right is determined using the Black-Scholes option pricing model. The Company recorded $30 thousand and $59 thousand of expense in salaries and employee benefits expense for the three months ended June 30, 2019 and 2018, respectively, related to the ESPP. Total shares issued under the ESPP during the second quarters of 2019 and 2018 were 8,564 and 9,127, respectively. The Company recorded $75 thousand and $112 thousand of expense in salaries and employee benefits expense for the six months ended June 30, 2019 and 2018, respectively related to the ESPP. Total shares issued under the ESPP for the six months ended June 30, 2019 and 2018 were 18,740 and 15,490, respectively. Management believes the Company to be well capitalized and has more than enough capital for current and future operational needs. Accordingly, Management has considered various capital management techniques to utilize the capital. Therefore, the Company has chosen to move share purchases for the ESPP from a quarterly basis to an annual basis, with the next purchase occurring in May 2020. |
Earnings per share - Basic and Diluted | Earnings per share – Basic and Diluted: The following is a reconciliation of the calculation of basic and diluted earnings per share. Basic net income per share is calculated by dividing net income available to shareholders by the weighted average shares outstanding during the reporting period. Diluted net income per share is computed similarly to that of basic net income per share, except that the denominator is increased to include the number of additional shares that would have been outstanding utilizing the Treasury Stock Method if all shares underlying potentially dilutive stock options were issued and all restricted stock, stock warrants or restricted stock units were to vest during the reporting period. Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income available to common shareholders $ 11,550 $ 11,910 $ 22,975 $ 22,717 Basic weighted-average shares outstanding 19,447,155 18,930,893 19,399,071 18,770,492 Plus: common stock equivalents 121,216 167,945 129,466 226,487 Diluted weighted-average shares outstanding 19,568,371 19,098,838 19,528,537 18,996,979 Net income per share Basic $ 0.59 $ 0.63 $ 1.18 $ 1.21 Diluted 0.59 0.62 1.18 1.20 For the three and six months ended June 30, 2019, stock options and restricted stock units totaling 128,634 and 297,828 were not included in the computation of diluted earnings per share because they were antidilutive. For the three and six months ended June 30, 2018, all stock options and warrants were included in the computation of diluted earnings per share because they were all dilutive, meaning that the exercise price of the stock option was greater than the average market price for the period. |
Income Taxes | Income Taxes: The Company files a consolidated Federal income tax return. Separate state income tax returns are filed for each subsidiary based on current laws and regulations. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its financial statements or tax returns. The measurement of deferred tax assets and liabilities is based on the enacted tax rates. Such tax assets and liabilities are adjusted for the effect of a change in tax rates in the period of enactment. The Company recognizes a tax position as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company is no longer subject to examination by the U.S. Federal tax authorities for years prior to 2015 or by New Jersey tax authorities for years prior to 2014. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Loss Contingencies | Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the financial statements. |
Restrictions on Cash | Restrictions on Cash: A large portion of cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. |
Comprehensive Income | Comprehensive Income: Comprehensive income consists of net income and the change during the period in the Company’s net unrealized gains or losses on securities available for sale and unrealized gains and losses on cash flow hedge, net of tax, less adjustments for realized gains and losses. |
Transfers of Financial Assets | Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree (if any), over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized but tested for impairment at least annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. The Company has selected September 30 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill and assembled workforce are the intangible assets with an indefinite life on our balance sheet. Other intangible assets, which primarily consist of customer relationship intangible assets arising from acquisition, are amortized on an accelerated basis over their estimated useful lives, which range from 5 to 15 years. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of stock option plans, changes in options outstanding | For the Company’s stock option plans, changes in options outstanding during the six months ended June 30, 2019 were as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Term (In thousands) Balance, January 1, 2019 91,310 $ 13.63 Exercised during 2019 (1,520 ) 14.28 Expired during 2019 (630 ) 22.57 Forfeited during 2019 (20,000 ) 13.07 Balance, June 30, 2019 69,160 $ 13.69 2.33 years $ 998 Vested and expected to vest 69,160 $ 13.69 2.33 years $ 998 Exercisable at June 30, 2019 69,160 $ 13.69 2.33 years $ 998 |
Schedule of changes in nonvested performance-based shares | Changes in non-vested shares dependent on performance criteria for the six months ended June 30, 2019 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2019 42,998 $ 35.33 Granted during 2019 47,770 26.34 Balance, June 30, 2019 90,768 $ 30.60 |
Schedule of changes in nonvested shares | Changes in service-based restricted stock awards/units for the six months ended June 30, 2019 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2019 366,541 $ 30.64 Granted during 2019 223,396 26.51 Vested during 2019 (140,178 ) 27.44 Forfeited during 2019 (3,214 ) 31.35 Balance, June 30, 2019 446,545 $ 29.98 |
Schedule of calculation of basic and diluted earnings per share | The following is a reconciliation of the calculation of basic and diluted earnings per share. Basic net income per share is calculated by dividing net income available to shareholders by the weighted average shares outstanding during the reporting period. Diluted net income per share is computed similarly to that of basic net income per share, except that the denominator is increased to include the number of additional shares that would have been outstanding utilizing the Treasury Stock Method if all shares underlying potentially dilutive stock options were issued and all restricted stock, stock warrants or restricted stock units were to vest during the reporting period. Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income available to common shareholders $ 11,550 $ 11,910 $ 22,975 $ 22,717 Basic weighted-average shares outstanding 19,447,155 18,930,893 19,399,071 18,770,492 Plus: common stock equivalents 121,216 167,945 129,466 226,487 Diluted weighted-average shares outstanding 19,568,371 19,098,838 19,528,537 18,996,979 Net income per share Basic $ 0.59 $ 0.63 $ 1.18 $ 1.21 Diluted 0.59 0.62 1.18 1.20 |
INVESTMENT SECURITIES AVAILAB_2
INVESTMENT SECURITIES AVAILABLE FOR SALE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investment Securities Available For Sale [Abstract] | |
Schedule of Amortized Cost and Approximate Fair Value of Securities Available for Sale | A summary of amortized cost and approximate fair value of investment securities available for sale included in the consolidated statements of condition as of June 30, 2019 and December 31, 2018 follows: June 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. government-sponsored agencies $ 71,719 $ 104 $ (32 ) $ 71,791 Mortgage-backed securities –residential 282,924 1,972 (959 ) 283,937 SBA pool securities 3,596 — (9 ) 3,587 State and political subdivisions 16,415 48 (20 ) 16,443 Corporate bond 3,000 81 — 3,081 Total $ 377,654 $ 2,205 $ (1,020 ) $ 378,839 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. government-sponsored agencies $ 102,915 $ 82 $ (984 ) $ 102,013 Mortgage-backed securities – residential 254,383 418 (3,439 ) 251,362 SBA pool securities 3,883 — (44 ) 3,839 State and political subdivisions 17,729 27 (146 ) 17,610 Corporate bond 3,000 112 — 3,112 Total $ 381,910 $ 639 $ (4,613 ) $ 377,936 |
Schedule of Continuous Unrealized Loss Position and the Approximate Fair Value of these Investments | The following tables present the Company’s available for sale securities in a continuous unrealized loss position and the approximate fair value of these investments as of June 30, 2019 and December 31, 2018. June 30, 2019 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses U.S. government-sponsored agencies $ 4,496 $ (4 ) $ 11,969 $ (28 ) $ 16,465 $ (32 ) Mortgage-backed securities-residential 15,433 (23 ) 103,844 (936 ) 119,277 (959 ) SBA pool securities — — 3,587 (9 ) 3,587 (9 ) State and political subdivisions — — 4,111 (20 ) 4,111 (20 ) Total $ 19,929 $ (27 ) $ 123,511 $ (993 ) $ 143,440 $ (1,020 ) December 31, 2018 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses U.S. government-sponsored agencies $ 18,840 $ (103 ) $ 33,600 $ (881 ) $ 52,440 $ (984 ) Mortgage-backed securities-residential 51,697 (303 ) 136,130 (3,136 ) 187,827 (3,439 ) SBA pool securities — — 3,839 (44 ) 3,839 (44 ) State and political subdivisions 421 (1 ) 7,274 (145 ) 7,695 (146 ) Total $ 70,958 $ (407 ) $ 180,843 $ (4,206 ) $ 251,801 $ (4,613 ) |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of composition of loans categorized by the type of loan | Loans outstanding, excluding those held for sale, by general ledger classification, as of June 30, 2019 and December 31, 2018, consisted of the following: % of % of June 30, Totals December 31, Total (Dollars in thousands) 2019 Loans 2018 Loans Residential mortgage $ 570,583 14.16 % $ 571,570 14.55 % Multifamily mortgage 1,129,476 28.03 1,135,805 28.92 Commercial mortgage 694,674 17.24 702,165 17.88 Commercial loans (including equipment financing) 1,517,665 37.67 1,397,057 35.57 Home equity lines of credit 62,522 1.55 62,191 1.58 Consumer loans, including fixed rate home equity loans 53,995 1.34 58,678 1.49 Other loans 424 0.01 465 0.01 Total loans $ 4,029,339 100.00 % $ 3,927,931 100.00 % In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on federal Call Report codes. The following portfolio classes have been identified as of June 30, 2019 and December 31, 2018: % of % of June 30, Totals December 31, Total (Dollars in thousands) 2019 Loans 2018 Loans Primary residential mortgage $ 599,450 14.89 % $ 600,891 15.31 % Home equity lines of credit 62,522 1.55 62,191 1.58 Junior lien loan on residence 7,397 0.18 7,418 0.19 Multifamily property 1,129,476 28.06 1,135,805 28.94 Owner-occupied commercial real estate 249,421 6.20 261,193 6.65 Investment commercial real estate 1,017,505 25.28 1,001,918 25.53 Commercial and industrial 717,851 17.83 616,838 15.72 Lease financing 184,182 4.58 172,643 4.40 Farmland/agricultural production 143 — 149 0.01 Commercial construction loans 125 — 86 0.01 Consumer and other loans 57,415 1.43 65,180 1.66 Total loans $ 4,025,487 100.00 % $ 3,924,312 100.00 % Net deferred costs 3,852 3,619 Total loans including net deferred costs $ 4,029,339 $ 3,927,931 |
Schedule of loan balances by portfolio segment, based on impairment method, and the corresponding balances in the allowance for loan losses | The following tables present the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance for loan and lease losses (ALLL) as of June 30, 2019 and December 31, 2018: June 30, 2019 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALLL Primary residential mortgage $ 8,791 $ 248 $ 590,659 $ 2,809 $ 599,450 $ 3,057 Home equity lines of credit 22 — 62,500 155 62,522 155 Junior lien loan on residence 29 — 7,368 15 7,397 15 Multifamily property — — 1,129,476 5,744 1,129,476 5,744 Owner-occupied commercial real estate 1,451 — 247,970 2,497 249,421 2,497 Investment commercial real estate 18,091 — 999,414 14,650 1,017,505 14,650 Commercial and industrial 6,557 1,000 711,294 10,463 717,851 11,463 Lease financing — — 184,182 1,888 184,182 1,888 Farmland/agricultural production — — 143 2 143 2 Commercial construction loans — — 125 1 125 1 Consumer and other loans — — 57,415 319 57,415 319 Total ALLL $ 34,941 $ 1,248 $ 3,990,546 $ 38,543 $ 4,025,487 $ 39,791 December 31, 2018 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALLL Primary residential mortgage $ 9,518 $ 262 $ 591,373 $ 3,244 $ 600,891 $ 3,506 Home equity lines of credit 255 — 61,936 164 62,191 164 Junior lien loan on residence 36 — 7,382 15 7,418 15 Multifamily property 1,262 — 1,134,543 5,959 1,135,805 5,959 Owner-occupied commercial real estate 1,574 — 259,619 2,614 261,193 2,614 Investment commercial real estate 18,655 — 983,263 14,248 1,001,918 14,248 Commercial and industrial — — 616,838 9,839 616,838 9,839 Lease financing — — 172,643 1,772 172,643 1,772 Farmland/agricultural production — — 149 2 149 2 Commercial construction loans — — 86 1 86 1 Consumer and other loans — — 65,180 384 65,180 384 Total ALLL $ 31,300 $ 262 $ 3,893,012 $ 38,242 $ 3,924,312 $ 38,504 |
Schedule of loans individually evaluated for impairment | The following tables present loans individually evaluated for impairment by class of loans as of June 30, 2019 and December 31, 2018 (The average impaired loans on the following tables represent year to date impaired loans.): June 30, 2019 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 9,111 $ 7,797 $ — $ 8,002 Owner-occupied commercial real estate 2,684 1,451 — 1,593 Investment commercial real estate 20,041 18,091 — 16,829 Home equity lines of credit 25 22 — 151 Junior lien loan on residence 98 29 — 34 Total loans with no related allowance $ 31,959 $ 27,390 $ — $ 26,609 With related allowance recorded: Primary residential mortgage $ 994 $ 994 $ 248 $ 1,047 Commercial and industrial 6,557 6,557 1,000 1,093 Total loans with related allowance $ 7,551 $ 7,551 $ 1,248 $ 2,140 Total loans individually evaluated for Impairment $ 39,510 $ 34,941 $ 1,248 $ 28,749 December 31, 2018 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 9,789 $ 8,502 $ — $ 8,042 Owner-occupied commercial real estate 2,741 1,574 — 2,025 Investment commercial real estate 20,179 18,655 — 13,999 Home equity lines of credit 257 255 — 123 Junior lien loan on residence 102 36 — 45 Multifamily property 1,262 1,262 — 105 Total loans with no related allowance $ 34,330 $ 30,284 $ — $ 24,339 With related allowance recorded: Primary residential mortgage $ 1,016 $ 1,016 $ 262 $ 1,144 Total loans with related allowance $ 1,016 $ 1,016 $ 262 $ 1,144 Total loans individually evaluated for impairment $ 35,346 $ 31,300 $ 262 $ 25,483 |
Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual | The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2019 and December 31, 2018: June 30, 2019 Loans Past Due Over 90 Days And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 5,019 $ — Home equity lines of credit 3 — Junior lien loan on residence 29 — Owner-occupied commercial real estate 1,451 — Investment commercial real estate 18,091 — Commercial and industrial 6,557 — Total $ 31,150 $ — December 31, 2018 Loans Past Due Over 90 Days And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 5,215 $ — Home equity lines of credit 235 — Junior lien loan on residence 36 — Owner-occupied commercial real estate 1,574 — Investment commercial real estate 18,655 — Total $ 25,715 $ — |
Schedule of aging of past due loans | The following tables present the aging of the recorded investment in past due loans as of June 30, 2019 and December 31, 2018 by class of loans, excluding nonaccrual loans: June 30, 2019 30-59 60-89 Greater Than Days Days 90 Days Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ — $ 105 $ — $ 105 Owner-occupied commercial real estate — 242 — 242 Commercial construction loans 85 — — 85 Total $ 85 $ 347 $ — $ 432 December 31, 2018 30-59 60-89 Greater Than Days Days 90 Days Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 606 $ 491 $ — $ 1,097 Consumer and other loans 2 — — 2 Total $ 608 $ 491 $ — $ 1,099 |
Schedule of the risk category of loans by class of loans | As of June 30, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 589,731 $ 870 $ 8,849 $ — Home equity lines of credit 62,500 — 22 — Junior lien loan on residence 7,368 — 29 — Multifamily property 1,127,545 1,586 345 — Owner-occupied commercial real estate 242,929 - 6,492 — Investment commercial real estate 966,813 18,024 32,668 — Commercial and industrial 701,916 8,205 7,730 — Lease financing 184,182 — — — Farmland/agricultural production 143 — — — Commercial construction loans 39 86 — — Consumer and other loans 57,415 — — — Total $ 3,940,581 $ 28,771 $ 56,135 $ — As of December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 590,372 $ 943 $ 9,576 $ — Home equity lines of credit 61,936 — 255 — Junior lien loan on residence 7,382 — 36 — Multifamily property 1,130,926 3,263 1,616 — Owner-occupied commercial real estate 255,417 249 5,527 — Investment commercial real estate 948,300 20,756 32,862 — Commercial and industrial 608,262 417 8,159 — Lease financing 172,643 — — — Farmland/agricultural production 149 — — — Commercial construction loans — 86 — — Consumer and other loans 64,946 — 234 — Total $ 3,840,333 $ 25,714 $ 58,265 $ — |
Schedule of Activity in Allowance for Loan and Lease Losses | The activity in the allowance for loan and lease losses for the three months ended June 30, 2019 is summarized below: April 1, June 30, 2019 2019 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 3,477 $ (80 ) $ 9 $ (349 ) $ 3,057 Home equity lines of credit 152 — 3 — 155 Junior lien loan on residence 15 — — — 15 Multifamily property 5,768 — — (24 ) 5,744 Owner-occupied commercial real estate 2,534 — 64 (101 ) 2,497 Investment commercial real estate 14,410 — — 240 14,650 Commercial and industrial 10,185 — 5 1,273 11,463 Lease financing 1,803 — — 85 1,888 Farmland/agricultural production 2 — — — 2 Commercial construction loans 1 — — — 1 Consumer and other loans 306 (14 ) 1 26 319 Total ALLL $ 38,653 $ (94 ) $ 82 $ 1,150 $ 39,791 The activity in the allowance for loan and lease losses for the three months ended June 30, 2018 is summarized below: April 1, June 30, 2018 2018 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 4,403 $ — $ 139 $ (160 ) $ 4,382 Home equity lines of credit 192 — 2 (4 ) 190 Junior lien loan on residence 16 — 46 (45 ) 17 Multifamily property 9,140 — — (881 ) 8,259 Owner-occupied commercial real estate 2,364 (64 ) — 225 2,525 Investment commercial real estate 12,367 — — 1,292 13,659 Commercial and industrial 7,753 (46 ) 6 (357 ) 7,356 Lease financing 1,036 — — 275 1,311 Farmland/agricultural production 2 — — — 2 Commercial construction loans 1 — — — 1 Consumer and other loans 422 (14 ) 1 (45 ) 364 Total ALLL $ 37,696 $ (124 ) $ 194 $ 300 $ 38,066 The activity in the allowance for loan and lease losses for the six months ended June 30, 2019 is summarized below: January 1, June 30, 2019 2019 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 3,506 $ (80 ) $ 51 $ (420 ) $ 3,057 Home equity lines of credit 164 — 5 (14 ) 155 Junior lien loan on residence 15 — 11 (11 ) 15 Multifamily property 5,959 — — (215 ) 5,744 Owner-occupied commercial real estate 2,614 — 64 (181 ) 2,497 Investment commercial real estate 14,248 — — 402 14,650 Commercial and industrial 9,839 — 9 1,615 11,463 Lease financing 1,772 — — 116 1,888 Farmland/agricultural production 2 — — — 2 Commercial construction loans 1 — — — 1 Consumer and other loans 384 (25 ) 2 (42 ) 319 Total ALLL $ 38,504 $ (105 ) $ 142 $ 1,250 $ 39,791 The activity in the allowance for loan and lease losses for the six months ended June 30, 2018 is summarized below: January 1, June 30, 2018 2018 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 4,085 $ (77 ) $ 139 $ 235 $ 4,382 Home equity lines of credit 221 — 4 (35 ) 190 Junior lien loan on residence 12 — 55 (50 ) 17 Multifamily property 10,007 — — (1,748 ) 8,259 Owner-occupied commercial real estate 2,385 (64 ) 66 138 2,525 Investment commercial real estate 11,933 — — 1,726 13,659 Commercial and industrial 6,563 (46 ) 22 817 7,356 Lease financing 884 — — 427 1,311 Farmland/agricultural production — — — 2 2 Commercial construction loans 1 — — — 1 Consumer and other loans 349 (25 ) 2 38 364 Total ALLL $ 36,440 $ (212 ) $ 288 $ 1,550 $ 38,066 |
Schedule of loans modified as troubled debt restructurings | The following table presents loans by class modified as TDRs during the three-month period ended June 30, 2018: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Contracts Investment Investment Investment commercial real estate 1 $ 15,351 $ 15,351 Total 1 $ 15,351 $ 15,351 The following table presents loans by class modified as TDRs during the six-month period ended June 30, 2018: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Contracts Investment Investment Investment commercial real estate 1 $ 15,351 $ 15,351 Total 1 $ 15,351 $ 15,351 The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at June 30, 2018: Number of Recorded (Dollars in thousands) Contracts Investment Primary residential mortgage 1 $ 336 Total 1 $ 336 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
Schedule of deposit liabilities | The following table sets forth the details of total deposits as of June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 (Dollars in thousands) Noninterest-bearing demand deposits $ 544,431 13.29 % $ 463,926 11.91 % Interest-bearing checking (1) 1,388,821 33.91 1,247,305 32.02 Savings 112,438 2.75 114,674 2.94 Money market 1,207,358 29.48 1,243,369 31.92 Certificates of deposit - retail 570,384 13.93 510,724 13.12 Certificates of deposit - listing service 58,541 1.43 79,195 2.03 Subtotal deposits 3,881,973 94.79 3,659,193 93.94 Interest-bearing demand - Brokered 180,000 4.39 180,000 4.62 Certificates of deposit - Brokered 33,682 0.82 56,147 1.44 Total deposits $ 4,095,655 100.00 % $ 3,895,340 100.00 % (1) Interest-bearing checking includes $453.1 million at June 30, 2019 and $434.5 million at December 31, 2018 of reciprocal balances in the Reich & Tang or Promontory Demand Deposit Marketplace program. |
Schedule of maturities of time deposits | The scheduled maturities of certificates of deposit, including brokered certificates of deposit, as of June 30, 2019 are as follows: (In thousands) 2019 $ 228,856 2020 270,032 2021 65,373 2022 36,185 2023 11,600 Over 5 Years 50,561 Total $ 662,607 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of maturity dates of the advances and other borrowings | The final maturity dates of the FHLB advances are scheduled as follows: (In thousands) 2021 $ 60,000 2022 20,000 2023 25,000 Total $ 105,000 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Income and Total Assets for Reportable Segments | The following tables present the statements of income and total assets for the Corporation’s reportable segments for the three and six months ended June 30, 2019 and 2018. Three Months Ended June 30, 2019 Wealth Management (In thousands) Banking Division Total Net interest income $ 27,934 $ 1,334 $ 29,268 Noninterest income 3,151 9,875 13,026 Total income 31,085 11,209 42,294 Provision for loan and lease losses 1,150 — 1,150 Compensation and benefits 12,685 4,858 17,543 Premises and equipment expense 3,046 554 3,600 FDIC expense 277 — 277 Other noninterest expense 2,553 2,200 4,753 Total noninterest expense 19,711 7,612 27,323 Income before income tax expense 11,374 3,597 14,971 Income tax expense 2,581 840 3,421 Net income $ 8,793 $ 2,757 $ 11,550 Three Months Ended June 30, 2018 Wealth Management (In thousands) Banking Division Total Net interest income $ 27,953 $ 1,290 $ 29,243 Noninterest income 3,353 8,387 11,740 Total income 31,306 9,677 40,983 Provision for loan and lease losses 300 — 300 Compensation and benefits 11,932 3,894 15,826 Premises and equipment expense 2,982 424 3,406 FDIC Expense 625 — 625 Other noninterest expense 3,145 1,939 5,084 Total noninterest expense 18,984 6,257 25,241 Income before income tax expense 12,322 3,420 15,742 Income tax expense 2,997 835 3,832 Net income $ 9,325 $ 2,585 $ 11,910 Six Months Ended June 30, 2019 Wealth Management (In thousands) Banking Division Total Net interest income $ 56,500 $ 2,775 $ 59,275 Noninterest income 5,430 19,325 24,755 Total income 61,930 22,100 84,030 Provision for loan and lease losses 1,250 — 1,250 Compensation and benefits 24,682 10,017 34,699 Premises and equipment expense 5,971 1,017 6,988 FDIC expense 554 — 554 Other noninterest expense 5,311 4,336 9,647 Total noninterest expense 37,768 15,370 53,138 Income before income tax expense 24,162 6,730 30,892 Income tax expense 6,192 1,725 7,917 Net income $ 17,970 $ 5,005 $ 22,975 Total assets at period end $ 4,791,902 $ 79,332 $ 4,871,234 Six Months Ended June 30, 2018 Wealth Management (In thousands) Banking Division Total Net interest income $ 54,801 $ 2,835 $ 57,636 Noninterest income 4,980 16,975 21,955 Total income 59,781 19,810 79,591 Provision for loan and lease losses 1,550 — 1,550 Compensation and benefits 22,263 8,142 30,405 Premises and equipment expense 5,821 855 6,676 FDIC Expense 1,205 — 1,205 Other noninterest expense 5,952 4,040 9,992 Total noninterest expense 36,791 13,037 49,828 Income before income tax expense 22,990 6,773 29,763 Income tax expense 5,442 1,604 7,046 Net income $ 17,548 $ 5,169 $ 22,717 Total assets at period end $ 4,208,731 $ 56,443 $ 4,265,174 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | The following table summarizes, for the periods indicated, assets measured at fair value on a recurring basis, including financial assets for which the Corporation has elected the fair value option: Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs (In thousands) 2019 (Level 1) (Level 2) (Level 3) Assets: Available for sale: U.S. government-sponsored agencies $ 71,791 $ — $ 71,791 $ — Mortgage-backed securities-residential 283,937 — 283,937 — SBA pool securities 3,587 — 3,587 — State and political subdivisions 16,443 — 16,443 — Corporate bond 3,081 — 3,081 — CRA investment fund 4,847 4,847 — — Loans held for sale, at fair value 2,343 — 2,343 — Derivatives: Cash flow hedges 175 — 175 — Loan level swaps 30,569 — 30,569 — Total $ 416,773 $ 4,847 $ 411,926 $ — Liabilities: Derivatives: Cash flow hedges $ (4,074 ) $ — $ (4,074 ) $ — Loan level swaps (30,569 ) — (30,569 ) — Total $ (34,643 ) $ — $ (34,643 ) $ — Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Significant Markets For Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs (In thousands) 2018 (Level 1) (Level 2) (Level 3) Assets: Securities available for sale: U.S. government-sponsored agencies $ 102,013 $ — $ 102,013 $ — Mortgage-backed securities-residential 251,362 — 251,362 — SBA pool securities 3,839 — 3,839 — State and political subdivisions 17,610 — 17,610 — Corporate bond 3,112 — 3,112 — CRA investment fund 4,719 4,719 — — Loans held for sale, at fair value 1,576 — 1,576 — Derivatives: Cash flow hedges 1,657 — 1,657 — Loan level swaps 9,689 — 9,689 — Total $ 395,577 $ 4,719 $ 390,858 $ — Liabilities: Derivatives: Cash flow hedges $ (849 ) $ — $ (849 ) $ — Loan level swaps (9,689 ) — (9,689 ) — Total $ (10,538 ) $ — $ (10,538 ) $ — |
Schedule of residential loans held for sale | The following tables present residential loans held for sale, at fair value for the periods indicated: (In thousands) June 30, 2019 December 31, 2018 Residential loans contractual balance $ 2,306 $ 1,552 Fair value adjustment 37 24 Total fair value of residential loans held for sale $ 2,343 $ 1,576 |
Schedule of carrying amounts and estimated fair values of financial instruments | The carrying amounts and estimated fair values of financial instruments at June 30, 2019 are as follows: Fair Value Measurements at June 30, 2019 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 304,027 $ 304,027 $ — $ — $ 304,027 Securities available for sale 378,839 — 378,839 — 378,839 CRA investment fund 4,847 4,847 — — 4,847 FHLB and FRB stock 18,338 — — — N/A Loans held for sale, at fair value 2,343 — 2,343 — 2,343 Loans held for sale, at lower of cost or fair value 926 — 1,000 — 1,000 Loans, net of allowance for loan and lease losses 3,989,548 — — 3,946,808 3,946,808 Accrued interest receivable 11,594 — 1,708 9,886 11,594 Cash flow hedges 175 — 175 — 175 Loan level swaps 30,569 — 30,569 — 30,569 Financial liabilities Deposits $ 4,095,655 $ 3,433,048 $ 665,573 $ — $ 4,098,621 Federal home loan bank advances 105,000 — 108,401 — 108,401 Subordinated debt 83,305 — — 84,400 84,400 Accrued interest payable 2,494 430 2,009 55 2,494 Cash flow hedges 4,074 — 4,074 — 4,074 Loan level swap 30,569 — 30,569 — 30,569 The carrying amounts and estimated fair values of financial instruments at December 31, 2018 are as follows: Fair Value Measurements at December 31, 2018 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 160,773 $ 160,773 $ — $ — $ 160,773 Securities available for sale 377,936 — 377,936 — 377,936 CRA investment fund 4,719 4,719 — — 4,719 FHLB and FRB stock 18,533 — — — N/A Loans held for sale, at fair value 1,576 — 1,576 — 1,576 Loans held for sale, at lower of cost or fair value 3,542 — 3,654 — 3,654 Loans, net of allowance for loan and lease losses 3,889,427 — — 3,852,004 3,852,004 Accrued interest receivable 10,814 — 1,875 8,939 10,814 Cash flow Hedges 1,657 — 1,657 — 1,657 Loan level swaps 9,689 — 9,689 — 9,689 Financial liabilities Deposits $ 3,895,340 $ 3,249,274 $ 640,997 $ — $ 3,890,271 Federal home loan bank advances 108,000 — 108,950 — 108,950 Subordinated debt 83,193 — — 82,207 82,207 Accrued interest payable 2,868 331 2,482 55 2,868 Cash flow hedges 849 — 849 — 849 Loan level swaps 9,689 — 9,689 — 9,689 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Noninterest Income | The following table presents the sources of noninterest income for the periods indicated: For the Three Months Ended June 30, (In thousands) 2019 2018 Service charges on deposits Overdraft fees $ 164 $ 183 Interchange income 322 326 Other 411 364 Wealth management fees (a) 9,568 8,126 Other (b) 2,561 2,741 Total noninterest other income $ 13,026 $ 11,740 For the Six Months Ended June 30, (In thousands) 2019 2018 Service charges on deposits Overdraft fees $ 324 $ 364 Interchange income 586 616 Other 803 724 Wealth management fees (a) 18,742 16,493 Other (a) 4,300 3,758 Total noninterest other income $ 24,755 $ 21,955 (a) Includes investment brokerage fees. (b) All of the other category is outside the scope of ASC 606. |
Schedule of Noninterest Income by Operating Segment | The following table presents the sources of noninterest income by operating segment for the periods indicated: For the Three Months Ended June 30, For the Three Months Ended June 30, 2019 2018 (In thousands) Wealth Wealth Revenue by Operating Segment Banking Management Total Banking Management Total Service charges on deposits Overdraft fees $ 164 $ — $ 164 $ 183 $ — $ 183 Interchange income 322 — 322 326 — 326 Other 411 — 411 364 — 364 Wealth management fees (a) — 9,568 9,568 — 8,126 8,126 Other (b) 2,254 307 2,561 2,480 261 2,741 Total noninterest income $ 3,151 $ 9,875 $ 13,026 $ 3,353 $ 8,387 $ 11,740 For the Six Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2019 2018 Revenue by Operating Wealth Wealth Segment Banking Management Total Banking Management Total Service charges on deposits Overdraft fees $ 324 $ — $ 324 $ 364 $ — $ 364 Interchange income 586 — 586 616 — 616 Other 803 — 803 724 — 724 Wealth management fees (a) — 18,742 18,742 — 16,493 16,493 Other (a) 3,717 583 4,300 3,276 482 3,758 Total noninterest income $ 5,430 $ 19,325 $ 24,755 $ 4,980 $ 16,975 $ 21,955 (a) Includes investment brokerage fees. (b) All of the other category is outside the scope of ASC 606. |
OTHER OPERATING EXPENSES (Table
OTHER OPERATING EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Schedule of components of other operating expenses | The following table presents the major components of other operating expenses for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2019 2018 2019 2018 Professional and legal fees 968 1,178 2,092 2,292 Telephone 377 271 657 555 Advertising 409 414 768 725 Amortization of intangible assets 229 180 458 359 Provision for ORE — 204 — 204 Other operating expenses 2,770 2,837 5,672 5,857 Total other operating expenses $ 4,753 $ 5,084 $ 9,647 $ 9,992 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders Equity Note [Abstract] | |
Schedule of accumulated other comprehensive income balances, net of tax | The following is a summary of the accumulated other comprehensive income/(loss) balances, net of tax, for the three months ended June 30, 2019 and 2018: Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at April 1, Before Comprehensive June 30, June 30, (In thousands) 2019 Reclassifications Income/(Loss) 2019 2019 Net unrealized holding loss on securities available for sale, net of tax $ (1,278 ) $ 2,176 — $ 2,176 $ 898 Gain/(loss) on cash flow hedges (451 ) (2,029 ) (22 ) (2,051 ) (2,502 ) Accumulated other comprehensive loss, net of tax $ (1,729 ) $ 147 $ (22 ) $ 125 $ (1,604 ) Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at April 1, Before Comprehensive June 30, June 30, (In thousands) 2018 Reclassifications Income/(Loss) 2018 2018 Net unrealized holding loss on securities available for sale, net of tax $ (4,345 ) $ (494 ) $ — $ (494 ) $ (4,839 ) Gain on cash flow hedges 1,503 605 (23 ) 582 2,085 Accumulated other comprehensive loss, net of tax $ (2,842 ) $ 111 $ (23 ) $ 88 $ (2,754 ) The following is a summary of the accumulated other comprehensive (loss)/income balances, net of tax, for the six months ended June 30, 2019 and 2018: Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Six Months Balance at Income/(Loss) Other Ended Balance at January 1, Before Comprehensive June 30, June 30, (In thousands) 2019 Reclassifications Income/(Loss) 2019 2019 Net unrealized holding gain/(loss) on securities available for sale, net of tax $ (3,006 ) $ 3,904 $ — $ 3,904 $ 898 Gain/(loss) on cash flow hedges 661 (3,120 ) (43 ) (3,163 ) (2,502 ) Accumulated other comprehensive loss, net of tax $ (2,345 ) $ 784 $ (43 ) $ 741 $ (1,604 ) Amount Other Reclassified Comprehensive Cumulative Other From Income/(Loss) Adjustment Comprehensive Accumulated Six Months Balance at For Equity Income/(Loss) Other Ended Balance at January 1, Security Before Comprehensive June 30, June 30, (In thousands) 2018 (ASU 2016-1) Reclassifications Income/(Loss) 2018 2018 Net unrealized holding loss on securities available for sale, net of tax $ (2,214 ) $ 127 $ (2,752 ) $ — $ (2,752 ) $ (4,839 ) Gain/(loss) on cash flow hedges 1,002 — 1,128 (45 ) 1,083 2,085 Accumulated other comprehensive loss, net of tax $ (1,212 ) $ 127 $ (1,624 ) $ (45 ) $ (1,669 ) $ (2,754 ) |
Schedule of the reclassifications out of accumulated other comprehensive income | The following represents the reclassifications out of accumulated other comprehensive income for the three months ended June 30, 2019 and 2018: Three Months Ended June 30, (In thousands) 2019 2018 Affected Line Item in Income Statement Unrealized gains on cash flow hedge derivatives: Reclassification adjustment for amounts included in net income $ (31 ) $ (31 ) Interest expense Income tax expense 9 8 Income tax expense Total reclassifications, net of tax $ (22 ) $ (23 ) The following represents the reclassifications out of accumulated other comprehensive income for the six months ended June 30, 2019 and 2018: Six Months Ended June 30, (In thousands) 2019 2018 Affected Line Item in Income Unrealized gains on cash flow hedge derivatives: Reclassification adjustment for amounts included in net income $ (62 ) $ (62 ) Interest expense Income tax expense 19 17 Income tax expense Total reclassifications, net of tax $ (43 ) $ (45 ) |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of Information about Derivatives | The following table presents information about the interest rate swaps designated as cash flow hedges as of June 30, 2019 and December 31, 2018: (Dollars in thousands) June 30, 2019 December 31, 2018 Notional amount $ 230,000 $ 230,000 Weighted average pay rate 2.04 % 2.04 % Weighted average receive rate 2.48 % 2.33 % Weighted average maturity 2.88 years 2.65 years Unrealized (loss)/gain, net $ (3,899 ) $ 808 Number of contracts 11 11 |
Schedule of Net Gains/(Losses) | The following table presents the net gain recorded in accumulated other comprehensive (loss)/income and the consolidated financial statements relating to the cash flow derivative instruments for the three and six months ended June 30, 2019 and June 30, 2018: For the Three Months Ended June 30, (In thousands) 2019 2018 Interest rate contracts Amount of gain/(loss) recognized in OCI $ (2,051 ) $ 582 Amount of gain/(loss) reclassified from OCI to interest expense 22 23 For the Six Months Ended June 30, (In thousands) 2019 2018 Interest rate contracts Amount of gain/(loss) recognized in OCI (effective portion) $ (3,163 ) $ 1,083 Amount of gain/(loss) reclassified from OCI to interest expense 43 45 |
Schedule of Notional Amount and Fair Value | June 30, 2019 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing deposits $ 230,000 $ (3,899 ) Total included in other assets 55,000 175 Total included in other liabilities 175,000 (4,074 ) December 31, 2018 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing deposits $ 230,000 $ 808 Total included in other assets 130,000 1,657 Total included in other liabilities 100,000 (849 ) |
Not Designated as Hedging Instrument [Member] | |
Schedule of Information about Derivatives | Information about these swaps is as follows: (Dollars in thousands) June 30, 2019 December 31, 2018 Notional amount $ 539,092 $ 558,690 Fair value $ 30,569 $ 9,689 Weighted average pay rates 4.41 % 4.44 % Weighted average receive rates 4.21 % 4.24 % Weighted average maturity 7.4 years 7.1 years Number of contracts 64 67 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities by Contractual Maturity | The following is a schedule of the Company's operating lease liabilities by contractual maturity as of June 30, 2019: (In thousands) 2019 $ 2,666 2020 2,506 2021 1,715 2022 1,459 2023 999 Thereafter 2,112 Total lease payments 11,457 Less: imputed interest 188 Total present value of lease payments 11,269 |
Summary of Supplemental Cash Flow Information Related to Direct Finance and Operating Leases | The following table shows the supplemental cash flow information related to the Company’s direct finance and operating leases for the six months ended June 30, 2019: (In thousands) Right-of-use asset obtained in exchange for lease obligation $ 7,862 Operating cash flows from operating leases 1,140 Operating cash flows from direct finance leases 196 Financing cash flows from direct finance leases 374 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative - Other) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($)shares | Jun. 30, 2019USD ($)segmentLeaseLocationshares | Jun. 30, 2018USD ($)shares | Dec. 31, 2018USD ($) | |
Number of operating segments | segment | 2 | ||||
Federal funds sales periods | 1 day | ||||
Interest-earning deposits maturities period | 1 year | ||||
Servicing rights | $ 0 | ||||
Amount of loans serviced | $ 43,800 | $ 43,800 | $ 35,100 | ||
Threshold period for loan | 30 days | ||||
Threshold for determining nonaccrual status | 90 days | ||||
Number of existing finance leases | Lease | 2 | ||||
Number of branch location | Location | 1 | ||||
Issuance of shares for Employee Stock Purchase Plan, shares | shares | 8,564 | 9,127 | 18,740 | 15,490 | |
Antidilutive securities | shares | 128,634 | 297,828 | |||
Employee Stock [Member] | |||||
Number of share purchase rights authorized | shares | 150,000 | 150,000 | |||
Percentage of closing market price on purchase date | 85.00% | ||||
Compensation cost | $ 30 | $ 59 | $ 75 | $ 112 | |
Substandard [Member] | |||||
Loan reserve multiple | 3.5 | 3.5 | 3.5 | ||
Special Mention [Member] | |||||
Loan reserve multiple | 2.25 | 2.25 | 2.25 | ||
Consumer and Other [Member] | |||||
Threshold for determining nonaccrual status | 120 days | ||||
Small Business Administration Loans [Member] | |||||
Loans held for sale | $ 926 | $ 926 | $ 1,200 | ||
Maximum [Member] | |||||
Cash equivalents original maturities period | 90 days | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||||
Maximum [Member] | Employee Stock [Member] | |||||
Percentage of compensation contributable | 15.00% | ||||
Minimum [Member] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||
Minimum [Member] | Employee Stock [Member] | |||||
Percentage of compensation contributable | 1.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Stock-Based Compensation Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Closing stock price of common stock | $ 28.12 | $ 28.12 | ||
Stock options granted | 0 | 0 | ||
Employee Stock Option [Member] | ||||
Option term | 10 years | |||
Vesting term | 5 years | |||
Restricted stock [Member] | ||||
Unrecognized compensation cost | $ 46 | $ 46 | ||
Weighted average period, unrecognized compensation expected to be recognized (in years) | 4 months 2 days | |||
Total compensation cost | $ 1,500 | $ 1,300 | $ 2,900 | $ 2,400 |
Restricted stock [Member] | Tranche One [Member] | ||||
Vesting term | 3 years | 3 years | ||
Shares available for grant | 729 | 729 | ||
Restricted stock [Member] | Tranche Two [Member] | ||||
Vesting term | 5 years | 5 years | ||
Shares available for grant | 27,925 | 27,925 | ||
Performance Shares [Member] | ||||
Shares available for grant | 0 | 0 | ||
Restricted Stock Units [Member] | ||||
Unrecognized compensation cost | $ 12,800 | $ 12,800 | ||
Weighted average period, unrecognized compensation expected to be recognized (in years) | 1 year 3 months 21 days |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Changes in Options Outstanding) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2019 | |
Number of Options | |
Balance | 91,310 |
Exercised | (1,520) |
Expired | (630) |
Forfeited | (20,000) |
Balance | 69,160 |
Vested and expected to vest | 69,160 |
Exercisable | 69,160 |
Weighted Average Exercise Price | |
Balance | $ 13.63 |
Exercised | 14.28 |
Expired | 22.57 |
Forfeited | 13.07 |
Balance | 13.69 |
Vested and expected to vest | 13.69 |
Exercisable | $ 13.69 |
Weighted Average Remaining Contractual Term | |
Balance | 2 years 3 months 29 days |
Vested and expected to vest | 2 years 3 months 29 days |
Exercisable | 2 years 3 months 29 days |
Aggregate Intrinsic Value | |
Balance | $ 998 |
Vested and expected to vest | 998 |
Exercisable | $ 998 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Changes in Restricted Common Shares) (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Performance Shares [Member] | |
Number of Shares | |
Balance at Beginning | shares | 42,998 |
Granted | shares | 47,770 |
Balance at end | shares | 90,768 |
Weighted Average Grant Date Fair Value | |
Balance at Beginning | $ / shares | $ 35.33 |
Granted | $ / shares | 26.34 |
Balance at end | $ / shares | $ 30.60 |
Restricted stock [Member] | |
Number of Shares | |
Balance at Beginning | shares | 366,541 |
Granted | shares | 223,396 |
Vested | shares | (140,178) |
Forfeited | shares | (3,214) |
Balance at end | shares | 446,545 |
Weighted Average Grant Date Fair Value | |
Balance at Beginning | $ / shares | $ 30.64 |
Granted | $ / shares | 26.51 |
Vested | $ / shares | 27.44 |
Forfeited | $ / shares | 31.35 |
Balance at end | $ / shares | $ 29.98 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Earnings per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | ||||
Net income available to common shareholders | $ 11,550 | $ 11,910 | $ 22,975 | $ 22,717 |
Basic weighted-average shares outstanding | 19,447,155 | 18,930,893 | 19,399,071 | 18,770,492 |
Plus: common stock equivalents | 121,216 | 167,945 | 129,466 | 226,487 |
Diluted weighted-average shares outstanding | 19,568,371 | 19,098,838 | 19,528,537 | 18,996,979 |
Net income per share | ||||
Basic | $ 0.59 | $ 0.63 | $ 1.18 | $ 1.21 |
Diluted | $ 0.59 | $ 0.62 | $ 1.18 | $ 1.20 |
INVESTMENT SECURITIES AVAILAB_3
INVESTMENT SECURITIES AVAILABLE FOR SALE (Schedule of Amortized Cost and Approximate Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 377,654 | $ 381,910 |
Gross Unrealized Gains | 2,205 | 639 |
Gross Unrealized Losses | (1,020) | (4,613) |
Fair Value | 378,839 | 377,936 |
U.S. Government-Sponsored Entities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 71,719 | 102,915 |
Gross Unrealized Gains | 104 | 82 |
Gross Unrealized Losses | (32) | (984) |
Fair Value | 71,791 | 102,013 |
Mortgage-Backed Securities-Residential [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 282,924 | 254,383 |
Gross Unrealized Gains | 1,972 | 418 |
Gross Unrealized Losses | (959) | (3,439) |
Fair Value | 283,937 | 251,362 |
SBA Pool Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 3,596 | 3,883 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (9) | (44) |
Fair Value | 3,587 | 3,839 |
State and Political Subdivisions [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 16,415 | 17,729 |
Gross Unrealized Gains | 48 | 27 |
Gross Unrealized Losses | (20) | (146) |
Fair Value | 16,443 | 17,610 |
Corporate Bond [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 3,000 | 3,000 |
Gross Unrealized Gains | 81 | 112 |
Gross Unrealized Losses | ||
Fair Value | $ 3,081 | $ 3,112 |
INVESTMENT SECURITIES AVAILAB_4
INVESTMENT SECURITIES AVAILABLE FOR SALE (Schedule of Securities with Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Approximate Fair Value | ||
Less Than 12 Months | $ 19,929 | $ 70,958 |
12 Months or Longer | 123,511 | 180,843 |
Total | 143,440 | 251,801 |
Unrealized Losses | ||
Less Than 12 Months | (27) | (407) |
12 Months or Longer | (993) | (4,206) |
Total | (1,020) | (4,613) |
U.S. Government Sponsored Entities [Member] | ||
Approximate Fair Value | ||
Less Than 12 Months | 4,496 | 18,840 |
12 Months or Longer | 11,969 | 33,600 |
Total | 16,465 | 52,440 |
Mortgage-Backed Securities-Residential [Member] | ||
Approximate Fair Value | ||
Less Than 12 Months | 15,433 | 51,697 |
12 Months or Longer | 103,844 | 136,130 |
Total | 119,277 | 187,827 |
Unrealized Losses | ||
Less Than 12 Months | (23) | (303) |
12 Months or Longer | (936) | (3,136) |
Total | (959) | (3,439) |
SBA Pool Securities [Member] | ||
Approximate Fair Value | ||
Less Than 12 Months | ||
12 Months or Longer | 3,587 | 3,839 |
Total | 3,587 | 3,839 |
Unrealized Losses | ||
Less Than 12 Months | ||
12 Months or Longer | (9) | (44) |
Total | (9) | (44) |
State and Political Subdivisions [Member] | ||
Approximate Fair Value | ||
Less Than 12 Months | 421 | |
12 Months or Longer | 4,111 | 7,274 |
Total | 4,111 | 7,695 |
Unrealized Losses | ||
Less Than 12 Months | (1) | |
12 Months or Longer | (20) | (145) |
Total | (20) | (146) |
U.S. Government-Sponsored Entities [Member] | ||
Unrealized Losses | ||
Less Than 12 Months | (4) | (103) |
12 Months or Longer | (28) | (881) |
Total | $ (32) | $ (984) |
INVESTMENT SECURITIES AVAILAB_5
INVESTMENT SECURITIES AVAILABLE FOR SALE - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule Of Available For Sale Securities [Line Items] | ||||
Securities gains/(losses), net | $ 69 | $ (36) | $ 128 | $ (114) |
CRA Investment Fund [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Securities gains/(losses), net | $ 69 | $ 128 |
LOANS AND LEASES (Schedule of L
LOANS AND LEASES (Schedule of Loans Outstanding, by Classification) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Total loans | $ 4,029,339 | $ 3,927,931 |
Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | ||
Total loans (in percent) | 100.00% | 100.00% |
Unallocated Financing Receivables [Member] | ||
Total loans | $ 424 | $ 465 |
Unallocated Financing Receivables [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | ||
Total loans (in percent) | 0.01% | 0.01% |
Residential Mortgage [Member] | Residential Portfolio Segment [Member] | ||
Total loans | $ 570,583 | $ 571,570 |
Residential Mortgage [Member] | Residential Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | ||
Total loans (in percent) | 14.16% | 14.55% |
Multifamily Property [Member] | Residential Portfolio Segment [Member] | ||
Total loans | $ 1,129,476 | $ 1,135,805 |
Multifamily Property [Member] | Residential Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | ||
Total loans (in percent) | 28.03% | 28.92% |
Commercial Mortgage [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Total loans | $ 694,674 | $ 702,165 |
Commercial Mortgage [Member] | Commercial Real Estate Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | ||
Total loans (in percent) | 17.24% | 17.88% |
Commercial Loans Including Equipment Financing [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Total loans | $ 1,517,665 | $ 1,397,057 |
Commercial Loans Including Equipment Financing [Member] | Commercial Real Estate Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | ||
Total loans (in percent) | 37.67% | 35.57% |
Home Equity Lines of Credit [Member] | Residential Portfolio Segment [Member] | ||
Total loans | $ 62,522 | $ 62,191 |
Home Equity Lines of Credit [Member] | Residential Portfolio Segment [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | ||
Total loans (in percent) | 1.55% | 1.58% |
Consumer Loans, Including Home Equity Loans [Member] | Consumer and Other Loans [Member] | ||
Total loans | $ 53,995 | $ 58,678 |
Consumer Loans, Including Home Equity Loans [Member] | Consumer and Other Loans [Member] | Loans and Finance Receivables, Gross [Member] | Credit Concentration Risk [Member] | ||
Total loans (in percent) | 1.34% | 1.49% |
LOANS AND LEASES (Schedule of_2
LOANS AND LEASES (Schedule of Loan Balances by Portfolio Class) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Total loans | $ 4,025,487 | $ 3,924,312 |
Net deferred costs | 3,852 | 3,619 |
Total loans including net deferred costs | $ 4,029,339 | $ 3,927,931 |
Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||
Total loans (in percent) | 100.00% | 100.00% |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total loans | $ 599,450 | $ 600,891 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||
Total loans (in percent) | 14.89% | 15.31% |
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||
Total loans | $ 62,522 | $ 62,191 |
Total loans including net deferred costs | $ 62,522 | $ 62,191 |
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||
Total loans (in percent) | 1.55% | 1.58% |
Residential Portfolio Segment [Member] | Multifamily Property [Member] | ||
Total loans | $ 1,129,476 | $ 1,135,805 |
Total loans including net deferred costs | $ 1,129,476 | $ 1,135,805 |
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||
Total loans (in percent) | 28.06% | 28.94% |
Residential Portfolio Segment [Member] | Junior Lien [Member] | ||
Total loans | $ 7,397 | $ 7,418 |
Residential Portfolio Segment [Member] | Junior Lien [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||
Total loans (in percent) | 0.18% | 0.19% |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Total loans | $ 249,421 | $ 261,193 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||
Total loans (in percent) | 6.20% | 6.65% |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Total loans | $ 1,017,505 | $ 1,001,918 |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||
Total loans (in percent) | 25.28% | 25.53% |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Total loans | $ 125 | $ 86 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||
Total loans (in percent) | 0.01% | |
Consumer and Other Loans [Member] | ||
Total loans | $ 57,415 | $ 65,180 |
Consumer and Other Loans [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||
Total loans (in percent) | 1.43% | 1.66% |
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | ||
Total loans | $ 717,851 | $ 616,838 |
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||
Total loans (in percent) | 17.83% | 15.72% |
Lease Financing [Member] | ||
Total loans | $ 184,182 | $ 172,643 |
Lease Financing [Member] | Commercial Portfolio Segment [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||
Total loans (in percent) | 4.58% | 4.40% |
Agricultural Sector [Member] | ||
Total loans | $ 143 | $ 149 |
Agricultural Sector [Member] | Customer Concentration Risk [Member] | Loans and Finance Receivables, Gross [Member] | ||
Total loans (in percent) | 0.01% |
LOANS AND LEASES (Schedule of B
LOANS AND LEASES (Schedule of Balances by Portfolio Class, Based on Impairment Method) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Total Loans Individually Evaluated for Impairment | $ 34,941 | $ 31,300 | ||||
Ending ALLL Attributable to Loans Individually Evaluated for Impairment | 1,248 | 262 | ||||
Total Loans Collectively Evaluated for Impairment | 3,990,546 | 3,893,012 | ||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 38,543 | 38,242 | ||||
Total Loans | 4,025,487 | 3,924,312 | ||||
Total Ending ALLL | 39,791 | $ 38,653 | 38,504 | $ 38,066 | $ 37,696 | $ 36,440 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||||||
Total Loans Individually Evaluated for Impairment | 8,791 | 9,518 | ||||
Ending ALLL Attributable to Loans Individually Evaluated for Impairment | 248 | 262 | ||||
Total Loans Collectively Evaluated for Impairment | 590,659 | 591,373 | ||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 2,809 | 3,244 | ||||
Total Loans | 599,450 | 600,891 | ||||
Total Ending ALLL | 3,057 | 3,477 | 3,506 | 4,382 | 4,403 | 4,085 |
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||||||
Total Loans Individually Evaluated for Impairment | 22 | 255 | ||||
Ending ALLL Attributable to Loans Individually Evaluated for Impairment | 0 | |||||
Total Loans Collectively Evaluated for Impairment | 62,500 | 61,936 | ||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 155 | 164 | ||||
Total Loans | 62,522 | 62,191 | ||||
Total Ending ALLL | 155 | 152 | 164 | 190 | 192 | 221 |
Residential Portfolio Segment [Member] | Multifamily Property [Member] | ||||||
Total Loans Individually Evaluated for Impairment | 0 | 1,262 | ||||
Ending ALLL Attributable to Loans Individually Evaluated for Impairment | 0 | |||||
Total Loans Collectively Evaluated for Impairment | 1,129,476 | 1,134,543 | ||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 5,744 | 5,959 | ||||
Total Loans | 1,129,476 | 1,135,805 | ||||
Total Ending ALLL | 5,744 | 5,768 | 5,959 | 8,259 | 9,140 | 10,007 |
Residential Portfolio Segment [Member] | Junior Lien [Member] | ||||||
Total Loans Individually Evaluated for Impairment | 29 | 36 | ||||
Ending ALLL Attributable to Loans Individually Evaluated for Impairment | 0 | |||||
Total Loans Collectively Evaluated for Impairment | 7,368 | 7,382 | ||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 15 | 15 | ||||
Total Loans | 7,397 | 7,418 | ||||
Total Ending ALLL | 15 | 15 | 15 | 17 | 16 | 12 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||||||
Total Loans Individually Evaluated for Impairment | 1,451 | 1,574 | ||||
Ending ALLL Attributable to Loans Individually Evaluated for Impairment | 0 | |||||
Total Loans Collectively Evaluated for Impairment | 247,970 | 259,619 | ||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 2,497 | 2,614 | ||||
Total Loans | 249,421 | 261,193 | ||||
Total Ending ALLL | 2,497 | 2,534 | 2,614 | 2,525 | 2,364 | 2,385 |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||||||
Total Loans Individually Evaluated for Impairment | 18,091 | 18,655 | ||||
Total Loans Collectively Evaluated for Impairment | 999,414 | 983,263 | ||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 14,650 | 14,248 | ||||
Total Loans | 1,017,505 | 1,001,918 | ||||
Total Ending ALLL | 14,650 | 14,410 | 14,248 | 13,659 | 12,367 | 11,933 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||||
Total Loans Collectively Evaluated for Impairment | 125 | 86 | ||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 1 | 1 | ||||
Total Loans | 125 | 86 | ||||
Total Ending ALLL | 1 | 1 | 1 | 1 | 1 | 1 |
Consumer and Other Loans [Member] | ||||||
Total Loans Collectively Evaluated for Impairment | 57,415 | 65,180 | ||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 319 | 384 | ||||
Total Loans | 57,415 | 65,180 | ||||
Total Ending ALLL | 319 | 306 | 384 | 364 | 422 | 349 |
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | ||||||
Total Loans Individually Evaluated for Impairment | 6,557 | |||||
Ending ALLL Attributable to Loans Individually Evaluated for Impairment | 1,000 | |||||
Total Loans Collectively Evaluated for Impairment | 711,294 | 616,838 | ||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 10,463 | 9,839 | ||||
Total Loans | 717,851 | 616,838 | ||||
Total Ending ALLL | 11,463 | 10,185 | 9,839 | 7,356 | 7,753 | $ 6,563 |
Lease Financing [Member] | ||||||
Total Loans Individually Evaluated for Impairment | 0 | |||||
Ending ALLL Attributable to Loans Individually Evaluated for Impairment | 0 | |||||
Total Loans Collectively Evaluated for Impairment | 184,182 | 172,643 | ||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 1,888 | 1,772 | ||||
Total Loans | 184,182 | 172,643 | ||||
Total Ending ALLL | 1,888 | 1,772 | ||||
Agricultural Sector [Member] | ||||||
Total Loans Collectively Evaluated for Impairment | 143 | 149 | ||||
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment | 2 | 2 | ||||
Total Loans | 143 | 149 | ||||
Total Ending ALLL | $ 2 | $ 2 | $ 2 | $ 2 | $ 2 |
LOANS AND LEASES (Narrative) (D
LOANS AND LEASES (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($)N | Jun. 30, 2019USD ($)N | Jun. 30, 2018N | Dec. 31, 2018USD ($) | |
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Impaired non-accrual loans | $ 31,150,000 | $ 31,150,000 | $ 25,715,000 | |
Impaired non-accrual loans performing troubled debt restructured | 3,800,000 | 3,800,000 | 4,300,000 | |
Allowance allocated to troubled debt restructured loans | 248,000 | 248,000 | 262,000 | |
Allowance allocated to non accrual loans | 156,000 | 156,000 | 161,000 | |
Loan receivable, validate risk ratings performed for new lending to existing relationships | 1,000,000 | 1,000,000 | ||
Loan receivable, validate risk ratings performed for criticized and classified rated borrowers with relationship exposure, value | 500,000 | 500,000 | ||
Loan receivable, validate risk ratings performed for random sample of borrowers with relationship, value | 1,000,000 | 1,000,000 | ||
Loan receivable, validate risk ratings performed for new regulation "O" loan commitments, value | 1,000,000 | 1,000,000 | ||
Loan receivable validate risk ratings performed for leveraged loans, value | 1,000,000 | 1,000,000 | ||
Loan receivable validate risk ratings performed for no borrower with commitments, value | 250,000 | 250,000 | ||
Troubled debt restructurings specific reserves to customers | $ 248,000 | $ 248,000 | 262,000 | |
Subsequent default number of contracts | N | 0 | 0 | 1 | |
Substandard [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Financing receivable impaired loan | $ 34,900,000 | $ 31,200,000 |
LOANS AND LEASES (Schedule of_3
LOANS AND LEASES (Schedule of Loans Individually Evaluated for Impairment) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Unpaid Principal Balance | ||
With no related allowance recorded | $ 31,959 | $ 34,330 |
With related allowance recorded | 7,551 | |
Total loans individually evaluated for Impairment | 39,510 | 35,346 |
Recorded Investment | ||
With no related allowance recorded | 27,390 | 30,284 |
With related allowance recorded | 7,551 | |
Total loans individually evaluated for Impairment | 34,941 | 31,300 |
Specific Reserves | 1,248 | |
Average Impaired Loans | ||
With no related allowance recorded | 26,609 | 24,339 |
With related allowance recorded | 2,140 | |
Total loans individually evaluated for Impairment | 28,749 | 25,483 |
With no related allowance recorded | 31,959 | 34,330 |
With no related allowance recorded | 27,390 | 30,284 |
With no related allowance recorded | 26,609 | 24,339 |
Multifamily Property [Member] | ||
Recorded Investment | ||
With no related allowance recorded | 1,262 | |
Average Impaired Loans | ||
With no related allowance recorded | 105 | |
With no related allowance recorded | 1,262 | |
With no related allowance recorded | 105 | |
Residential Portfolio Segment [Member] | ||
Unpaid Principal Balance | ||
With related allowance recorded | 1,016 | |
Recorded Investment | ||
With related allowance recorded | 1,016 | |
Specific Reserves | 262 | |
Average Impaired Loans | ||
With related allowance recorded | 1,144 | |
Residential Portfolio Segment [Member] | Junior Lien [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 98 | 102 |
Recorded Investment | ||
With no related allowance recorded | 29 | 36 |
Average Impaired Loans | ||
With no related allowance recorded | 34 | 45 |
With no related allowance recorded | 98 | 102 |
With no related allowance recorded | 29 | 36 |
With no related allowance recorded | 34 | 45 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 9,111 | 9,789 |
With related allowance recorded | 994 | 1,016 |
Recorded Investment | ||
With no related allowance recorded | 7,797 | 8,502 |
With related allowance recorded | 994 | 1,016 |
Specific Reserves | 248 | 262 |
Average Impaired Loans | ||
With no related allowance recorded | 8,002 | 8,042 |
With related allowance recorded | 1,047 | 1,144 |
With no related allowance recorded | 9,111 | 9,789 |
With no related allowance recorded | 7,797 | 8,502 |
With no related allowance recorded | 8,002 | 8,042 |
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 25 | 257 |
Recorded Investment | ||
With no related allowance recorded | 22 | 255 |
Average Impaired Loans | ||
With no related allowance recorded | 151 | 123 |
With no related allowance recorded | 25 | 257 |
With no related allowance recorded | 22 | 255 |
With no related allowance recorded | 151 | 123 |
Residential Portfolio Segment [Member] | Multifamily Property [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 1,262 | |
Average Impaired Loans | ||
With no related allowance recorded | 1,262 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 2,684 | 2,741 |
Recorded Investment | ||
With no related allowance recorded | 1,451 | 1,574 |
Average Impaired Loans | ||
With no related allowance recorded | 1,593 | 2,025 |
With no related allowance recorded | 2,684 | 2,741 |
With no related allowance recorded | 1,451 | 1,574 |
With no related allowance recorded | 1,593 | 2,025 |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Unpaid Principal Balance | ||
With no related allowance recorded | 20,041 | 20,179 |
Recorded Investment | ||
With no related allowance recorded | 18,091 | 18,655 |
Average Impaired Loans | ||
With no related allowance recorded | 16,829 | 13,999 |
With no related allowance recorded | 20,041 | 20,179 |
With no related allowance recorded | 18,091 | 18,655 |
With no related allowance recorded | 16,829 | $ 13,999 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||
Unpaid Principal Balance | ||
With related allowance recorded | 6,557 | |
Recorded Investment | ||
With related allowance recorded | 6,557 | |
Specific Reserves | 1,000 | |
Average Impaired Loans | ||
With related allowance recorded | $ 1,093 |
LOANS AND LEASES (Schedule of I
LOANS AND LEASES (Schedule of Investment in Nonaccrual and Loans Past Due Over 90 Days) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Impaired non-accrual loans | $ 31,150 | $ 25,715 |
Loans Past Due Over 90 Days And Still Accruing Interest | 0 | 0 |
Residential Portfolio Segment [Member] | Junior Lien [Member] | ||
Impaired non-accrual loans | 29 | 36 |
Loans Past Due Over 90 Days And Still Accruing Interest | 0 | 0 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Impaired non-accrual loans | 5,019 | 5,215 |
Loans Past Due Over 90 Days And Still Accruing Interest | 0 | 0 |
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||
Impaired non-accrual loans | 3 | 235 |
Loans Past Due Over 90 Days And Still Accruing Interest | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Impaired non-accrual loans | 1,451 | 1,574 |
Loans Past Due Over 90 Days And Still Accruing Interest | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Impaired non-accrual loans | 18,091 | 18,655 |
Loans Past Due Over 90 Days And Still Accruing Interest | 0 | $ 0 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||
Impaired non-accrual loans | 6,557 | |
Loans Past Due Over 90 Days And Still Accruing Interest | $ 0 |
LOANS AND LEASES (Schedule of A
LOANS AND LEASES (Schedule of Aging of Past Due Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Total Past Due | $ 432 | $ 1,099 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total Past Due | 105 | 1,097 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Total Past Due | 242 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Total Past Due | 85 | |
Consumer and Other Loans [Member] | ||
Total Past Due | 2 | |
30 to 59 Days Past Due [Member] | ||
Total Past Due | 85 | 608 |
30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total Past Due | 0 | 606 |
30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Total Past Due | 0 | |
30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Total Past Due | 85 | |
30 to 59 Days Past Due [Member] | Consumer and Other Loans [Member] | ||
Total Past Due | 2 | |
60 to 89 Days Past Due [Member] | ||
Total Past Due | 347 | 491 |
60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total Past Due | 105 | 491 |
60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Total Past Due | 242 | |
60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Total Past Due | 0 | |
60 to 89 Days Past Due [Member] | Consumer and Other Loans [Member] | ||
Total Past Due | 0 | |
Greater Than 90 Days [Member] | ||
Total Past Due | 0 | 0 |
Greater Than 90 Days [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total Past Due | 0 | 0 |
Greater Than 90 Days [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Total Past Due | 0 | |
Greater Than 90 Days [Member] | Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Total Past Due | $ 0 | |
Greater Than 90 Days [Member] | Consumer and Other Loans [Member] | ||
Total Past Due | $ 0 |
LOANS AND LEASES (Schedule of R
LOANS AND LEASES (Schedule of Risk Category of Loans by Class of Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Total loans | $ 4,025,487 | $ 3,924,312 |
Lease Financing [Member] | ||
Total loans | 184,182 | 172,643 |
Agricultural Sector [Member] | ||
Total loans | 143 | 149 |
Residential Portfolio Segment [Member] | Junior Lien [Member] | ||
Total loans | 7,397 | 7,418 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total loans | 599,450 | 600,891 |
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||
Total loans | 62,522 | 62,191 |
Residential Portfolio Segment [Member] | Multifamily Property [Member] | ||
Total loans | 1,129,476 | 1,135,805 |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Total loans | 1,017,505 | 1,001,918 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||
Total loans | 717,851 | 616,838 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Total loans | 125 | 86 |
Consumer and Other Loans [Member] | ||
Total loans | 57,415 | 65,180 |
Pass [Member] | ||
Total loans | 3,940,581 | 3,840,333 |
Pass [Member] | Lease Financing [Member] | ||
Total loans | 184,182 | 172,643 |
Pass [Member] | Agricultural Sector [Member] | ||
Total loans | 143 | 149 |
Pass [Member] | Residential Portfolio Segment [Member] | Junior Lien [Member] | ||
Total loans | 7,368 | 7,382 |
Pass [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total loans | 589,731 | 590,372 |
Pass [Member] | Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||
Total loans | 62,500 | 61,936 |
Pass [Member] | Residential Portfolio Segment [Member] | Multifamily Property [Member] | ||
Total loans | 1,127,545 | 1,130,926 |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Total loans | 242,929 | 255,417 |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Total loans | 966,813 | 948,300 |
Pass [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||
Total loans | 701,916 | 608,262 |
Pass [Member] | Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Total loans | 39 | 0 |
Pass [Member] | Consumer and Other Loans [Member] | ||
Total loans | 57,415 | 64,946 |
Special Mention [Member] | ||
Total loans | 28,771 | 25,714 |
Special Mention [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total loans | 870 | 943 |
Special Mention [Member] | Residential Portfolio Segment [Member] | Multifamily Property [Member] | ||
Total loans | 1,586 | 3,263 |
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Total loans | 249 | |
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Total loans | 18,024 | 20,756 |
Special Mention [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||
Total loans | 8,205 | 417 |
Special Mention [Member] | Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Total loans | 86 | 86 |
Substandard [Member] | ||
Total loans | 56,135 | 58,265 |
Substandard [Member] | Residential Portfolio Segment [Member] | Junior Lien [Member] | ||
Total loans | 29 | 36 |
Substandard [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||
Total loans | 8,849 | 9,576 |
Substandard [Member] | Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||
Total loans | 22 | 255 |
Substandard [Member] | Residential Portfolio Segment [Member] | Multifamily Property [Member] | ||
Total loans | 345 | 1,616 |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||
Total loans | 6,492 | 5,527 |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Total loans | 32,668 | 32,862 |
Substandard [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||
Total loans | $ 7,730 | 8,159 |
Substandard [Member] | Consumer and Other Loans [Member] | ||
Total loans | $ 234 |
LOANS AND LEASES (Schedule of_4
LOANS AND LEASES (Schedule of Activity in Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for loan losses | ||||
Beginning ALLL | $ 38,653 | $ 37,696 | $ 38,504 | $ 36,440 |
Charge-Offs | (94) | (124) | (105) | (212) |
Recoveries | 82 | 194 | 142 | 288 |
Provision (Credit) | 1,150 | 300 | 1,250 | 1,550 |
Ending ALLL | 39,791 | 38,066 | 39,791 | 38,066 |
Agricultural Sector [Member] | ||||
Allowance for loan losses | ||||
Beginning ALLL | 2 | 2 | 2 | |
Provision (Credit) | 2 | |||
Ending ALLL | 2 | 2 | 2 | 2 |
Residential Portfolio Segment [Member] | Junior Lien [Member] | ||||
Allowance for loan losses | ||||
Beginning ALLL | 15 | 16 | 15 | 12 |
Recoveries | 46 | 11 | 55 | |
Provision (Credit) | (45) | (11) | (50) | |
Ending ALLL | 15 | 17 | 15 | 17 |
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | ||||
Allowance for loan losses | ||||
Beginning ALLL | 3,477 | 4,403 | 3,506 | 4,085 |
Charge-Offs | (80) | (80) | (77) | |
Recoveries | 9 | 139 | 51 | 139 |
Provision (Credit) | (349) | (160) | (420) | 235 |
Ending ALLL | 3,057 | 4,382 | 3,057 | 4,382 |
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||||
Allowance for loan losses | ||||
Beginning ALLL | 152 | 192 | 164 | 221 |
Recoveries | 3 | 2 | 5 | 4 |
Provision (Credit) | (4) | (14) | (35) | |
Ending ALLL | 155 | 190 | 155 | 190 |
Residential Portfolio Segment [Member] | Multifamily Property [Member] | ||||
Allowance for loan losses | ||||
Beginning ALLL | 5,768 | 9,140 | 5,959 | 10,007 |
Provision (Credit) | (24) | (881) | (215) | (1,748) |
Ending ALLL | 5,744 | 8,259 | 5,744 | 8,259 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | ||||
Allowance for loan losses | ||||
Beginning ALLL | 2,534 | 2,364 | 2,614 | 2,385 |
Charge-Offs | (64) | (64) | ||
Recoveries | 64 | 64 | 66 | |
Provision (Credit) | (101) | 225 | (181) | 138 |
Ending ALLL | 2,497 | 2,525 | 2,497 | 2,525 |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||||
Allowance for loan losses | ||||
Beginning ALLL | 14,410 | 12,367 | 14,248 | 11,933 |
Provision (Credit) | 240 | 1,292 | 402 | 1,726 |
Ending ALLL | 14,650 | 13,659 | 14,650 | 13,659 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||||
Allowance for loan losses | ||||
Beginning ALLL | 10,185 | 7,753 | 9,839 | 6,563 |
Charge-Offs | (46) | (46) | ||
Recoveries | 5 | 6 | 9 | 22 |
Provision (Credit) | 1,273 | (357) | 1,615 | 817 |
Ending ALLL | 11,463 | 7,356 | 11,463 | 7,356 |
Commercial Portfolio Segment [Member] | Lease Financing [Member] | ||||
Allowance for loan losses | ||||
Beginning ALLL | 1,803 | 1,036 | 1,772 | 884 |
Provision (Credit) | 85 | 275 | 116 | 427 |
Ending ALLL | 1,888 | 1,311 | 1,888 | 1,311 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||
Allowance for loan losses | ||||
Beginning ALLL | 1 | 1 | 1 | 1 |
Ending ALLL | 1 | 1 | 1 | 1 |
Consumer and Other Loans [Member] | ||||
Allowance for loan losses | ||||
Beginning ALLL | 306 | 422 | 384 | 349 |
Charge-Offs | (14) | (14) | (25) | (25) |
Recoveries | 1 | 1 | 2 | 2 |
Provision (Credit) | 26 | (45) | (42) | 38 |
Ending ALLL | $ 319 | $ 364 | $ 319 | $ 364 |
LOANS AND LEASES (Schedule of_5
LOANS AND LEASES (Schedule of Loans Modified as Troubled Debt Restructurings) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($)N | Jun. 30, 2018USD ($)N | |
Number of Contracts | N | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 15,351 | $ 15,351 |
Post-Modification Outstanding Recorded Investment | $ 15,351 | $ 15,351 |
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | ||
Number of Contracts | N | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 15,351 | $ 15,351 |
Post-Modification Outstanding Recorded Investment | $ 15,351 | $ 15,351 |
LOANS AND LEASES (Schedule of M
LOANS AND LEASES (Schedule of Modified as Troubled Debt Restructurings Subsequently Defaulted) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019N | Jun. 30, 2019N | Jun. 30, 2018USD ($)N | |
Number of Subsequently Defaulted Contracts | N | 0 | 0 | 1 |
Subsequently Defaulted Recorded Investment | $ | $ 336 | ||
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | |||
Number of Subsequently Defaulted Contracts | N | 1 | ||
Subsequently Defaulted Recorded Investment | $ | $ 336 |
DEPOSITS (Details of Total Depo
DEPOSITS (Details of Total Deposits) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Deposits [Abstract] | |||
Time deposits over $250,000 | $ 172,000 | $ 160,300 | |
Deposits: | |||
Noninterest-bearing demand deposits | 544,431 | 463,926 | |
Interest-bearing checking | [1] | 1,388,821 | 1,247,305 |
Savings | 112,438 | 114,674 | |
Money market | 1,207,358 | 1,243,369 | |
Certificates of deposit - retail | 570,384 | 510,724 | |
Certificates of deposit - listing service | 58,541 | 79,195 | |
Subtotal deposits | 3,881,973 | 3,659,193 | |
Interest-bearing demand - Brokered | 180,000 | 180,000 | |
Certificates of deposit - Brokered | 33,682 | 56,147 | |
Total deposits | 4,095,655 | 3,895,340 | |
Reciprocal balances | $ 453,100 | $ 434,500 | |
% | |||
Noninterest-bearing demand deposits | 13.29% | 11.91% | |
Interest-bearing checking | [1] | 33.91% | 32.02% |
Savings | 2.75% | 2.94% | |
Money market | 29.48% | 31.92% | |
Certificates of deposit - retail | 13.93% | 13.12% | |
Certificates of deposit - listing service | 1.43% | 2.03% | |
Subtotal deposits | 94.79% | 93.94% | |
Interest-bearing demand - Brokered | 4.39% | 4.62% | |
Certificates of deposit - Brokered | 0.82% | 1.44% | |
Total deposits | 100.00% | 100.00% | |
[1] | Interest-bearing checking includes $453.1 million at June 30, 2019 and $434.5 million at December 31, 2018 of reciprocal balances in the Reich & Tang or Promontory Demand Deposit Marketplace program. |
DEPOSITS (Scheduled Maturities
DEPOSITS (Scheduled Maturities of Time Deposits) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Scheduled maturities of time deposits | |
2019 | $ 228,856 |
2020 | 270,032 |
2021 | 65,373 |
2022 | 36,185 |
2023 | 11,600 |
Over 5 Years | 50,561 |
Total | $ 662,607 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Advances from Federal Home Loan Banks | $ 105,000 | $ 108,000 |
FHLB interest rate | 3.20% | 3.17% |
Advances with fixed maturity dates | $ 105,000 | $ 108,000 |
Weighted average interest rate on fixed maturity advances | 3.20% | 3.17% |
Residential mortgages pledged as collateral for advances | $ 350,500 | $ 496,100 |
Multifamily mortgage loans pledged as collateral for advances | 649,900 | 1,000,000 |
Investment pledges against advances | 44,000 | 58,500 |
Overnight borrowings with FHLB | 0 | $ 0 |
Unused commitments from FHLB | 1,400,000 | |
Unused short-term or overnight borrowings from correspondent banks | 22,000 | |
Unused short-term or overnight borrowings from FRB | $ 1,400,000 |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS (Schedule of Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank Advances Maturities Summary | ||
2021 | $ 60,000 | |
2022 | 20,000 | |
2023 | 25,000 | |
Total | $ 105,000 | $ 108,000 |
BUSINESS SEGMENTS - Additional
BUSINESS SEGMENTS - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 2 |
BUSINESS SEGMENTS - Schedule of
BUSINESS SEGMENTS - Schedule of Income and Total Assets for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Net interest income | $ 29,268 | $ 29,243 | $ 59,275 | $ 57,636 | |
Noninterest income | 13,026 | 11,740 | 24,755 | 21,955 | |
Total income | 42,294 | 40,983 | 84,030 | 79,591 | |
Provision for loan and lease losses | 1,150 | 300 | 1,250 | 1,550 | |
Compensation and benefits | 17,543 | 15,826 | 34,699 | 30,405 | |
Premises and equipment expense | 3,600 | 3,406 | 6,988 | 6,676 | |
FDIC expense | 277 | 625 | 554 | 1,205 | |
Other noninterest expense | 4,753 | 5,084 | 9,647 | 9,992 | |
Total noninterest expense | 27,323 | 25,241 | 53,138 | 49,828 | |
Income before income tax expense | 14,971 | 15,742 | 30,892 | 29,763 | |
Income tax expense | 3,421 | 3,832 | 7,917 | 7,046 | |
NET INCOME | 11,550 | 11,910 | 22,975 | 22,717 | |
Total assets at period end | 4,871,234 | 4,265,174 | 4,871,234 | 4,265,174 | $ 4,617,858 |
Banking [Member] | |||||
Net interest income | 27,934 | 27,953 | 56,500 | 54,801 | |
Noninterest income | 3,151 | 3,353 | 5,430 | 4,980 | |
Total income | 31,085 | 31,306 | 61,930 | 59,781 | |
Provision for loan and lease losses | 1,150 | 300 | 1,250 | 1,550 | |
Compensation and benefits | 12,685 | 11,932 | 24,682 | 22,263 | |
Premises and equipment expense | 3,046 | 2,982 | 5,971 | 5,821 | |
FDIC expense | 277 | 625 | 554 | 1,205 | |
Other noninterest expense | 2,553 | 3,145 | 5,311 | 5,952 | |
Total noninterest expense | 19,711 | 18,984 | 37,768 | 36,791 | |
Income before income tax expense | 11,374 | 12,322 | 24,162 | 22,990 | |
Income tax expense | 2,581 | 2,997 | 6,192 | 5,442 | |
NET INCOME | 8,793 | 9,325 | 17,970 | 17,548 | |
Total assets at period end | 4,791,902 | 4,208,731 | 4,791,902 | 4,208,731 | |
Wealth Management Division [Member] | |||||
Net interest income | 1,334 | 1,290 | 2,775 | 2,835 | |
Noninterest income | 9,875 | 8,387 | 19,325 | 16,975 | |
Total income | 11,209 | 9,677 | 22,100 | 19,810 | |
Provision for loan and lease losses | 0 | 0 | 0 | 0 | |
Compensation and benefits | 4,858 | 3,894 | 10,017 | 8,142 | |
Premises and equipment expense | 554 | 424 | 1,017 | 855 | |
FDIC expense | 0 | 0 | 0 | 0 | |
Other noninterest expense | 2,200 | 1,939 | 4,336 | 4,040 | |
Total noninterest expense | 7,612 | 6,257 | 15,370 | 13,037 | |
Income before income tax expense | 3,597 | 3,420 | 6,730 | 6,773 | |
Income tax expense | 840 | 835 | 1,725 | 1,604 | |
NET INCOME | 2,757 | 2,585 | 5,005 | 5,169 | |
Total assets at period end | $ 79,332 | $ 56,443 | $ 79,332 | $ 56,443 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value transfers between level 1 and level 2 | $ 0 |
Loans Receivable [Member] | Property A [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Discount rate | 15.00% |
Age of appraisal | 12 months |
FAIR VALUE (Schedule of Assets
FAIR VALUE (Schedule of Assets Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available for sale | $ 378,839 | $ 377,936 |
Loans held for sale, at fair value | 2,343 | 1,576 |
Recurring Basis [Member] | ||
Loans held for sale, at fair value | 2,343 | 1,576 |
Total | 416,773 | 395,577 |
Derivatives | (34,643) | (10,538) |
Recurring Basis [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives | 175 | 1,657 |
Derivatives | (4,074) | (849) |
Recurring Basis [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives | 30,569 | 9,689 |
Derivatives | (30,569) | (9,689) |
Recurring Basis [Member] | Quoted Prices in Active Market For Identical Assets (Level 1) [Member] | ||
Total | 4,847 | 4,719 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Loans held for sale, at fair value | 2,343 | 1,576 |
Total | 411,926 | 390,858 |
Derivatives | (34,643) | (10,538) |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives | 175 | 1,657 |
Derivatives | (4,074) | (849) |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives | 30,569 | 9,689 |
Derivatives | (30,569) | (9,689) |
U.S. Government-Sponsored Entities [Member] | ||
Securities available for sale | 71,791 | 102,013 |
U.S. Government-Sponsored Entities [Member] | Recurring Basis [Member] | ||
Securities available for sale | 71,791 | 102,013 |
U.S. Government-Sponsored Entities [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 71,791 | 102,013 |
Mortgage-Backed Securities-Residential [Member] | ||
Securities available for sale | 283,937 | 251,362 |
Mortgage-Backed Securities-Residential [Member] | Recurring Basis [Member] | ||
Securities available for sale | 283,937 | 251,362 |
Mortgage-Backed Securities-Residential [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 283,937 | 251,362 |
SBA Pool Securities [Member] | ||
Securities available for sale | 3,587 | 3,839 |
SBA Pool Securities [Member] | Recurring Basis [Member] | ||
Securities available for sale | 3,587 | 3,839 |
SBA Pool Securities [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 3,587 | 3,839 |
State and Political Subdivisions [Member] | ||
Securities available for sale | 16,443 | 17,610 |
State and Political Subdivisions [Member] | Recurring Basis [Member] | ||
Securities available for sale | 16,443 | 17,610 |
State and Political Subdivisions [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 16,443 | 17,610 |
Corporate Bond [Member] | ||
Securities available for sale | 3,081 | 3,112 |
Corporate Bond [Member] | Recurring Basis [Member] | ||
Securities available for sale | 3,081 | 3,112 |
Corporate Bond [Member] | Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Securities available for sale | 3,081 | 3,112 |
CRA Investment Fund [Member] | Recurring Basis [Member] | ||
Securities available for sale | 4,847 | 4,719 |
CRA Investment Fund [Member] | Recurring Basis [Member] | Quoted Prices in Active Market For Identical Assets (Level 1) [Member] | ||
Securities available for sale | $ 4,847 | $ 4,719 |
FAIR VALUE (Schedule of Residen
FAIR VALUE (Schedule of Residential Loans Held for Sale, at Fair Value) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Residential loans contractual balance | $ 2,306 | $ 1,552 |
Fair value adjustment | 37 | 24 |
Total fair value of residential loans held for sale | $ 2,343 | $ 1,576 |
FAIR VALUE (Schedule of Financi
FAIR VALUE (Schedule of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Securities available for sale | $ 378,839 | $ 377,936 |
FHLB and FRB stock | 18,338 | 18,533 |
Loans held for sale, at fair value | 2,343 | 1,576 |
Loans held for sale, at lower of cost or fair value | 926 | 3,542 |
Accrued interest receivable | 11,594 | 10,814 |
Financial Liabilities: | ||
Federal home loan bank advances | 105,000 | 108,000 |
Carrying Value [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 304,027 | 160,773 |
Securities available for sale | 378,839 | 377,936 |
CRA investment fund | 4,847 | 4,719 |
FHLB and FRB stock | 18,338 | 18,533 |
Loans held for sale, at fair value | 2,343 | 1,576 |
Loans held for sale, at lower of cost or fair value | 926 | 3,542 |
Loans, net of allowance for loan and lease losses | 3,989,548 | 3,889,427 |
Accrued interest receivable | 11,594 | 10,814 |
Financial Liabilities: | ||
Deposits | 4,095,655 | 3,895,340 |
Federal home loan bank advances | 105,000 | 108,000 |
Subordinated debt | 83,305 | 83,193 |
Accrued interest payable | 2,494 | 2,868 |
Carrying Value [Member] | Designated as Hedging Instrument [Member] | ||
Financial Assets: | ||
Derivatives | 175 | 1,657 |
Financial Liabilities: | ||
Derivatives | 4,074 | 849 |
Carrying Value [Member] | Not Designated as Hedging Instrument [Member] | ||
Financial Assets: | ||
Derivatives | 30,569 | 9,689 |
Financial Liabilities: | ||
Derivatives | 30,569 | 9,689 |
Fair value [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 304,027 | 160,773 |
Securities available for sale | 378,839 | 377,936 |
CRA investment fund | 4,847 | 4,719 |
Loans held for sale, at fair value | 2,343 | 1,576 |
Loans held for sale, at lower of cost or fair value | 1,000 | 3,654 |
Loans, net of allowance for loan and lease losses | 3,946,808 | 3,852,004 |
Accrued interest receivable | 11,594 | 10,814 |
Financial Liabilities: | ||
Deposits | 4,098,621 | 3,890,271 |
Federal home loan bank advances | 108,401 | 108,950 |
Subordinated debt | 84,400 | 82,207 |
Accrued interest payable | 2,494 | 2,868 |
Fair value [Member] | Quoted Prices in Active Market For Identical Assets (Level 1) [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 304,027 | 160,773 |
CRA investment fund | 4,847 | 4,719 |
Financial Liabilities: | ||
Deposits | 3,433,048 | 3,249,274 |
Accrued interest payable | 430 | 331 |
Fair value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Assets: | ||
Securities available for sale | 378,839 | 377,936 |
Loans held for sale, at fair value | 2,343 | 1,576 |
Loans held for sale, at lower of cost or fair value | 1,000 | 3,654 |
Accrued interest receivable | 1,708 | 1,875 |
Financial Liabilities: | ||
Deposits | 665,573 | 640,997 |
Federal home loan bank advances | 108,401 | 108,950 |
Accrued interest payable | 2,009 | 2,482 |
Fair value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial Assets: | ||
Loans, net of allowance for loan and lease losses | 3,946,808 | 3,852,004 |
Accrued interest receivable | 9,886 | 8,939 |
Financial Liabilities: | ||
Subordinated debt | 84,400 | 82,207 |
Accrued interest payable | 55 | 55 |
Fair value [Member] | Designated as Hedging Instrument [Member] | ||
Financial Assets: | ||
Derivatives | 175 | 1,657 |
Financial Liabilities: | ||
Derivatives | 4,074 | 849 |
Fair value [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Assets: | ||
Derivatives | 175 | 1,657 |
Financial Liabilities: | ||
Derivatives | 4,074 | 849 |
Fair value [Member] | Not Designated as Hedging Instrument [Member] | ||
Financial Assets: | ||
Derivatives | 30,569 | 9,689 |
Financial Liabilities: | ||
Derivatives | 30,569 | 9,689 |
Fair value [Member] | Not Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Assets: | ||
Derivatives | 30,569 | 9,689 |
Financial Liabilities: | ||
Derivatives | $ 30,569 | $ 9,689 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of Noninterest Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||||||
Service charges on deposits | |||||||||
Overdraft fees | $ 164 | $ 183 | $ 324 | $ 364 | |||||
Interchange income | 322 | 326 | 586 | 616 | |||||
Other | 411 | 364 | 803 | 724 | |||||
Wealth management fees | [1] | 9,568 | 8,126 | 18,742 | 16,493 | ||||
Other | 2,561 | [2] | 2,741 | [2] | 4,300 | [1] | 3,758 | [1] | |
Total other income | $ 13,026 | $ 11,740 | $ 24,755 | $ 21,955 | |||||
[1] | Includes investment brokerage fees. | ||||||||
[2] | All of the other category is outside the scope of ASC 606. |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of Noninterest Income by Operating Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||||||
Service charges on deposits | |||||||||
Overdraft fees | $ 164 | $ 183 | $ 324 | $ 364 | |||||
Interchange income | 322 | 326 | 586 | 616 | |||||
Other | 411 | 364 | 803 | 724 | |||||
Wealth management fees | [1] | 9,568 | 8,126 | 18,742 | 16,493 | ||||
Other | 2,561 | [2] | 2,741 | [2] | 4,300 | [1] | 3,758 | [1] | |
Total other income | 13,026 | 11,740 | 24,755 | 21,955 | |||||
Banking [Member] | |||||||||
Service charges on deposits | |||||||||
Overdraft fees | 164 | 183 | 324 | 364 | |||||
Interchange income | 322 | 326 | 586 | 616 | |||||
Other | 411 | 364 | 803 | 724 | |||||
Wealth management fees | [1] | 0 | 0 | ||||||
Other | 2,254 | [2] | 2,480 | [2] | 3,717 | [1] | 3,276 | [1] | |
Total other income | 3,151 | 3,353 | 5,430 | 4,980 | |||||
Wealth Management Division [Member] | |||||||||
Service charges on deposits | |||||||||
Overdraft fees | 0 | 0 | 0 | 0 | |||||
Interchange income | 0 | 0 | 0 | 0 | |||||
Other | 0 | 0 | 0 | 0 | |||||
Wealth management fees | [1] | 9,568 | 8,126 | 18,742 | 16,493 | ||||
Other | 307 | [2] | 261 | [2] | 583 | [1] | 482 | [1] | |
Total other income | $ 9,875 | $ 8,387 | $ 19,325 | $ 16,975 | |||||
[1] | Includes investment brokerage fees. | ||||||||
[2] | All of the other category is outside the scope of ASC 606. |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interchange income | $ 322 | $ 326 | $ 586 | $ 616 |
Cardholder rewards [Member] | ||||
Interchange income | $ 36 | $ 34 | $ 68 | $ 63 |
OTHER OPERATING EXPENSES (Detai
OTHER OPERATING EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other operating expenses | ||||
Professional and legal fees | $ 968 | $ 1,178 | $ 2,092 | $ 2,292 |
Telephone | 377 | 271 | 657 | 555 |
Advertising | 409 | 414 | 768 | 725 |
Amortization of intangible assets | 229 | 180 | 458 | 359 |
Provision for ORE | 204 | 0 | 204 | |
Other operating expenses | 2,770 | 2,837 | 5,672 | 5,857 |
Total other operating expenses | $ 4,753 | $ 5,084 | $ 9,647 | $ 9,992 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME (Schedule of Accumulated Other Comprehensive Income Balances, Net of Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 481,472 | $ 422,406 | $ 469,013 | $ 403,678 |
Total other comprehensive income/(loss) | 125 | 88 | 741 | (1,669) |
Balance | 493,888 | 437,019 | 493,888 | 437,019 |
Net Unrealized Holding Gain/(Loss) on Securities Available for Sale, Net of Tax [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (1,278) | (4,345) | (3,006) | (2,214) |
Other Comprehensive Income/(Loss) Before Reclassifications | 2,176 | (494) | 3,904 | (2,752) |
Total other comprehensive income/(loss) | 2,176 | (494) | 3,904 | (2,752) |
Balance | 898 | (4,839) | 898 | (4,839) |
Net Unrealized Holding Gain/(Loss) on Securities Available for Sale, Net of Tax [Member] | ASU 2016-01 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative Adjustment For Equity Security | 127 | |||
Gain/(Loss) on Cash Flow Hedge [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (451) | 1,503 | 661 | 1,002 |
Other Comprehensive Income/(Loss) Before Reclassifications | (2,029) | 605 | (3,120) | 1,128 |
Amount Reclassified From Accumulated Other Comprehensive Income/(Loss) | (22) | (23) | (43) | (45) |
Total other comprehensive income/(loss) | (2,051) | 582 | (3,163) | 1,083 |
Balance | (2,502) | 2,085 | (2,502) | 2,085 |
Accumulated Other Comprehensive Loss, Net of Tax [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (1,729) | (2,842) | (2,345) | (1,212) |
Other Comprehensive Income/(Loss) Before Reclassifications | 147 | 111 | 784 | (1,624) |
Amount Reclassified From Accumulated Other Comprehensive Income/(Loss) | (22) | (23) | (43) | (45) |
Total other comprehensive income/(loss) | 125 | 88 | 741 | (1,669) |
Balance | $ (1,604) | $ (2,754) | $ (1,604) | (2,754) |
Accumulated Other Comprehensive Loss, Net of Tax [Member] | ASU 2016-01 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative Adjustment For Equity Security | $ 127 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME (Schedule of Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | $ 3,421 | $ 3,832 | $ 7,917 | $ 7,046 |
NET INCOME | 11,550 | 11,910 | 22,975 | 22,717 |
Reclassification out of Accumulated Other Comprehensive Income | Gain/(Loss) on Cash Flow Hedge [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | (31) | (31) | (62) | (62) |
Income tax expense | 9 | 8 | 19 | 17 |
NET INCOME | $ (22) | $ (23) | $ (43) | $ (45) |
DERIVATIVES-Additional Informat
DERIVATIVES-Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($)N | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($)N | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | ||||||
Net interest income | $ 29,268,000 | $ 29,243,000 | $ 59,275,000 | $ 57,636,000 | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Notional Amount | 230,000,000 | 230,000,000 | $ 230,000,000 | |||
Net interest income | 290,000 | $ 33,000 | 625,000 | $ 13,000 | ||
Unrealized after-tax gain of accumulated other comprehensive income loss | 189,000 | $ 220,000 | ||||
Interest income | $ 31,000 | $ 62,000 | ||||
Derivative number of instruments terminated | N | 4 | 2 |
DERIVATIVES-(Schedule of Inform
DERIVATIVES-(Schedule of Information about Derivatives) (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)N | Dec. 31, 2018USD ($)N | |
Derivative [Line Items] | ||
Notional Amount | $ 230,000,000 | $ 230,000,000 |
Weighted average pay rate | 2.04% | 2.04% |
Weighted average receive rate | 2.48% | 2.33% |
Weighted average maturity | 2 years 10 months 17 days | 2 years 7 months 24 days |
Unrealized (loss)/gain, net | $ (3,899,000) | $ 808,000 |
Number of contracts | N | 11 | 11 |
DERIVATIVES-(Schedule of Net Ga
DERIVATIVES-(Schedule of Net Gains/(Losses)) (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Amount of gain/(loss) recognized in OCI | $ (2,051) | $ 582 | $ (3,163) | $ 1,083 |
Amount of gain/(loss) reclassified from OCI to interest expense | $ 22 | $ 23 | $ 43 | $ 45 |
DERIVATIVES-(Schedule of Notion
DERIVATIVES-(Schedule of Notional Amount and Fair Value) (Details) - Designated as Hedging Instrument [Member] - Interest Rate Swap [Member] - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Notional Amount | $ 230,000,000 | $ 230,000,000 |
Fair Value | (3,899,000) | 808,000 |
Other Assets [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 55,000,000 | 130,000,000 |
Fair Value | 175,000 | 1,657,000 |
Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 175,000,000 | 100,000,000 |
Fair Value | $ (4,074,000) | $ (849,000) |
DERIVATIVES-(Schedule of Info_2
DERIVATIVES-(Schedule of Information about Derivatives-Not Designated as Hedging Instrument) (Details) - Loan Level Swaps [Member] - Not Designated as Hedging Instrument [Member] $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)N | Dec. 31, 2018USD ($)N | |
Derivative [Line Items] | ||
Notional Amount | $ 539,092 | $ 558,690 |
Fair Value | $ 30,569 | $ 9,689 |
Weighted average pay rate | 4.41% | 4.44% |
Weighted average receive rate | 4.21% | 4.24% |
Weighted average maturity | 7 years 4 months 24 days | 7 years 1 month 6 days |
Number of contracts | N | 64 | 67 |
SUBORDINATED DEBT (Details)
SUBORDINATED DEBT (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Dec. 31, 2017 | Jun. 30, 2016 | |
Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Net proceeds used to contribute to the Bank | $ 29,100 | $ 40,000 |
Proceeds from debt retained by parent | 5,000 | 10,000 |
Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 35,000 | $ 50,000 |
Non-callable term | 5 years | 5 years |
Notes maturity date | Dec. 15, 2027 | Jun. 30, 2026 |
Fixed interest rate | 4.75% | 6.00% |
LIBOR spread | 2.54% | 4.85% |
Debt issuance costs | $ 875 | $ 1,300 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | |
Lessee Lease Description [Line Items] | |||
Operating lease right-of-use assets | $ 11,017 | $ 11,017 | $ 7,900 |
Operating lease liabilities | $ 11,269 | $ 11,269 | $ 8,200 |
Weighted average discount rate | 3.35% | 3.35% | |
Weighted average lease term | 6 years 21 days | 6 years 21 days | |
Lease cost | $ 757 | $ 1,400 | |
Variable lease costs | $ 82 | $ 155 | |
Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Remaining lease term | 18 years |
LEASES (Schedule of Operating L
LEASES (Schedule of Operating Lease Liabilities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 | $ 2,666 | |
2020 | 2,506 | |
2021 | 1,715 | |
2022 | 1,459 | |
2023 | 999 | |
Thereafter | 2,112 | |
Total lease payments | 11,457 | |
Less: imputed interest | 188 | |
Total present value of lease payments | $ 11,269 | $ 8,200 |
LEASES (Summary of Supplemental
LEASES (Summary of Supplemental Cash Flow Information Related to Direct Finance and Operating Leases) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Right-of-use asset obtained in exchange for lease obligation | $ 7,862 |
Operating cash flows from operating leases | 1,140 |
Operating cash flows from direct finance leases | 196 |
Financing cash flows from direct finance leases | $ 374 |
ACCOUNTING PRONOUNCEMENTS (Deta
ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Jun. 30, 2019 |
Accounting Changes And Error Corrections [Abstract] | ||
Lease liability | $ 8,200 | $ 11,269 |
Right-of-use asset | 7,900 | $ 11,017 |
Cumulative effect adjustment to retained earnings | $ 661 |
PENDING ACQUISITION - Additiona
PENDING ACQUISITION - Additional Information (Details) - Subsequent Event [Member] - Point View [Member] $ in Millions | Jul. 03, 2019USD ($) |
Business Acquisition [Line Items] | |
Date of acquisition agreement | Jul. 3, 2019 |
Minimum [Member] | |
Business Acquisition [Line Items] | |
Purchase price, combination of cash and equity | $ 325 |