Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 23, 2018 | Jun. 30, 2017 | |
Document And Entity Information (Abstract) | |||
Entity Registrant Name | Metropolitan Bank Holding Corp. | ||
Entity Central Index Key | 1,476,034 | ||
Trading Symbol | mcb | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 8,194,925 | ||
Entity Public Float | $ 97.3 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 261,231 | $ 82,931 |
U.S. Government securities money market funds | 0 | 0 |
Total cash and cash equivalents | 261,231 | 82,931 |
Investment securities available for sale, at estimated fair value | 32,157 | 37,329 |
Investment securities held to maturity (estimated fair value of $5,330 and $6,419 at December 31, 2017 and 2016, respectively) | 5,428 | 6,500 |
Other investments | 13,677 | 12,588 |
Loans | 1,420,966 | 1,055,706 |
Deferred loan fees and unamortized costs, net | (1,070) | (1,160) |
Allowance for loan losses | (14,887) | (11,815) |
Net loans | 1,405,009 | 1,042,731 |
Accounts receivable, net | 6,601 | 5,420 |
Receivable from prepaid card programs, net | 9,579 | 7,566 |
Accrued interest receivable | 4,421 | 2,735 |
Premises and equipment, net | 6,268 | 5,035 |
Prepaid expenses and other assets | 5,751 | 7,733 |
Goodwill | 9,733 | 9,733 |
Total assets | 1,759,855 | 1,220,301 |
Deposits: | ||
Noninterest-bearing demand deposits | 812,497 | 403,402 |
Interest-bearing deposits | 591,858 | 590,378 |
Total deposits | 1,404,355 | 993,780 |
FHLB Advances | 42,198 | 78,418 |
Trust preferred securities payable | 20,620 | 20,620 |
Subordinated debt, net of issuance costs | 24,489 | |
Accounts payable, accrued expenses and other liabilities | 21,678 | 10,901 |
Accrued interest payable | 749 | 227 |
Debit cardholder balances | 8,882 | 6,864 |
Total liabilities | 1,522,971 | 1,110,810 |
COMMITMENTS AND CONTINGENCIES (See Note 9) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value, authorized 10,000,000 shares, issued and outstanding 8,196,310 and 4,604,563 at December 31, 2017 and 2016, respectively | 81 | 45 |
Additional paid in capital | 211,145 | 96,116 |
Retained earnings | 25,861 | 13,492 |
Accumulated other comprehensive loss, net of tax effect | (206) | (165) |
Total stockholders' equity | 236,884 | 109,491 |
Total liabilities and stockholders' equity | 1,759,855 | 1,220,301 |
Class A Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock | ||
Class B Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock | 3 | 3 |
Total stockholders' equity | $ 3 | $ 3 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Securities held to maturity, fair value | $ 5,330 | $ 6,419 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 8,196,310 | 4,604,563 |
Common stock, shares outstanding | 8,196,310 | 4,604,563 |
Class A preferred stock | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class B preferred stock | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 272,636 | 272,636 |
Preferred stock, shares outstanding | 272,636 | 272,636 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and dividend income: | |||
Loans, including fees | $ 57,075 | $ 42,360 | $ 31,110 |
Securities: | |||
Taxable | 813 | 886 | 1,024 |
Tax-exempt | 30 | 30 | 31 |
Money market funds and commercial paper | 315 | 142 | 110 |
Other interest and dividends | 2,520 | 737 | 407 |
Total interest income | 60,753 | 44,155 | 32,682 |
Interest expense: | |||
Deposits | 5,873 | 4,877 | 3,805 |
FHLB Advances | 840 | 673 | 999 |
Trust preferred securities payable interest expense | 636 | 539 | 456 |
Subordinated debt interest expense | 1,322 | ||
Total interest expense | 8,671 | 6,089 | 5,260 |
Net interest income | 52,082 | 38,066 | 27,422 |
Provision for loan losses | 7,059 | 8,060 | 2,015 |
Net interest income after provision for loan losses | 45,023 | 30,006 | 25,407 |
Non-interest income: | |||
Service charges on deposit accounts | 3,452 | 876 | 754 |
Other service charges and fees | 4,368 | 1,179 | 476 |
Loan prepayment penalties | 111 | 402 | 700 |
Debit card income | 3,369 | 2,926 | 2,568 |
Net gains on securities transactions | 40 | ||
Total non-interest income | 11,300 | 5,423 | 4,498 |
Non-interest expense: | |||
Compensation and benefits | 19,166 | 17,010 | 13,221 |
Bank premises and equipment | 4,385 | 3,985 | 3,620 |
Directors Fees | 894 | 611 | 540 |
Insurance Expense | 281 | 333 | 363 |
Professional fees | 2,636 | 1,595 | 1,360 |
FDIC assessment | 1,067 | 675 | 554 |
Core processing fees | 1,495 | 862 | 788 |
Other expenses | 2,821 | 2,300 | 2,631 |
Total non-interest expense | 32,745 | 27,371 | 23,077 |
Net income before income tax expense | 23,578 | 8,058 | 6,828 |
Income tax expense | 11,209 | 3,045 | 2,559 |
Net income | $ 12,369 | $ 5,013 | $ 4,269 |
Earnings per common share | |||
Earnings per share - basic (in dolllars per share) | $ 2.40 | $ 0.43 | $ 1.54 |
Earnings per share - diluted (in dollars per share) | $ 2.34 | $ 0.43 | $ 1.54 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 12,369 | $ 5,013 | $ 4,269 |
Unrealized gains/losses of securities available for sale: | |||
Unrealized holding loss arising during the year | (54) | (268) | (220) |
Reclassification adjustment for net gains included in net income | (40) | ||
Total unrealized gains/loss on securities available for sale | (54) | (308) | (220) |
Tax effect | (13) | (127) | (107) |
Total unrealized gains/loss on securities available for sale, net of tax | (41) | (181) | (113) |
Comprehensive income | $ 12,328 | $ 4,832 | $ 4,156 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Preferred Stock, Class A | Preferred Stock, Class B | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI (Loss), Net | Total |
Balance at Dec. 31, 2014 | $ 4 | $ 1 | $ 23 | $ 50,750 | $ 7,836 | $ 129 | $ 58,743 |
Balance (in shares) at Dec. 31, 2014 | 415,248 | 60,000 | 2,321,615 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Conversion of preferred to common stock (in shares) | (24,204) | 13,447 | |||||
Employee stock-based compensation expense | 447 | 447 | |||||
Common stock issued in initial public offering, net of stock issuance costs | $ 7 | 12,599 | 12,606 | ||||
Common stock issued in initial public offering, net of stock issuance costs (in shares) | 722,222 | ||||||
Restricted stock grants, net of forfeiture (in shares) | 38,500 | ||||||
Net income | 4,269 | 4,269 | |||||
Other comprehensive loss | (113) | (113) | |||||
Balance at Dec. 31, 2015 | $ 4 | $ 1 | $ 30 | 63,796 | 12,105 | 16 | 75,952 |
Balance (in shares) at Dec. 31, 2015 | 391,044 | 60,000 | 3,095,784 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Purchase & retirement of treasury preferred stock | $ (1) | (1,238) | (161) | (1,400) | |||
Purchase & retirement of treasury preferred stock (in shares) | (123,924) | ||||||
Preferred stock - redemption | $ (3) | (2,624) | (45) | (2,672) | |||
Preferred stock - redemption (in shares) | (267,120) | ||||||
Conversion of preferred to common stock | $ (1) | $ 1 | 0 | ||||
Conversion of preferred to common stock (in shares) | (60,000) | 60,000 | |||||
Issuance of preferred stock, net | $ 3 | 5,500 | 5,503 | ||||
Issuance of preferred stock, net (in shares) | 272,636 | ||||||
Employee stock-based compensation expense | 2,328 | 2,328 | |||||
Common stock issued in initial public offering, net of stock issuance costs | $ 14 | 28,354 | 28,368 | ||||
Common stock issued in initial public offering, net of stock issuance costs (in shares) | 1,374,112 | ||||||
Restricted stock grants, net of forfeiture (in shares) | 74,667 | ||||||
Class A preferred - dividend payment | (3,420) | (3,420) | |||||
Net income | 5,013 | 5,013 | |||||
Other comprehensive loss | (181) | (181) | |||||
Balance at Dec. 31, 2016 | $ 3 | $ 45 | 96,116 | 13,492 | (165) | 109,491 | |
Balance (in shares) at Dec. 31, 2016 | 272,636 | 4,604,563 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Employee stock-based compensation expense | 412 | 412 | |||||
Common stock issued in initial public offering, net of stock issuance costs | $ 36 | 114,737 | 114,773 | ||||
Common stock issued in initial public offering, net of stock issuance costs (in shares) | 3,565,000 | ||||||
Restricted stock grants, net of forfeiture (in shares) | 28,383 | ||||||
Exercise of stock options | 135 | $ 135 | |||||
Exercise of stock options (in shares) | 4,503 | 4,503 | |||||
Repurchase of shares for exercise of stock options and tax withholding for restricted stock vesting | (255) | $ (255) | |||||
Repurchase of shares for exercise of stock options and tax withholding for restricted stock vesting (in shares) | (6,139) | ||||||
Net income | 12,369 | 12,369 | |||||
Other comprehensive loss | (41) | (41) | |||||
Balance at Dec. 31, 2017 | $ 3 | $ 81 | $ 211,145 | $ 25,861 | $ (206) | $ 236,884 | |
Balance (in shares) at Dec. 31, 2017 | 272,636 | 8,196,310 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Stock issuance costs | $ 10,002 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 12,369 | $ 5,013 | $ 4,269 |
Adjustments to reconcile net income to net cash: | |||
Depreciation and amortization | 978 | 785 | 696 |
Net amortization on securities | 321 | 355 | 492 |
Amortization of subordinated debt issuance costs | 46 | ||
Gain on sale of securities | (40) | ||
Provision for loan losses | 7,059 | 8,060 | 2,015 |
Net change in deferred loan fees | (90) | (15) | (1,006) |
Deferred income tax benefit | 790 | (913) | (455) |
Stock-based compensation expense | 412 | 2,328 | 447 |
Net change in: | |||
Accrued interest receivable | (1,686) | (434) | (628) |
Accounts payable, accrued expenses and other liabilities | 10,777 | (1,215) | 1,542 |
Change in debit card holder balances | 2,018 | 6,635 | (2,919) |
Change in Accrued interest payable | 522 | (93) | (6) |
Accounts receivable, net | (1,181) | (4,550) | 245 |
Receivable from prepaid card programs, net | (2,013) | (187) | 3,703 |
Prepaid expenses and other assets | 1,151 | (1,171) | (2,952) |
Net cash provided by operating activities | 31,473 | 14,558 | 5,443 |
Cash flows from investing activities: | |||
Loan originations and payments, net | (377,118) | (240,420) | (184,597) |
Proceeds from sales of loans | 7,871 | ||
Redemptions of other investments | 7,203 | ||
Purchases of other investments | (8,292) | (182) | (5,368) |
Purchase of securities available for sale | (1,470) | (1,546) | |
Proceeds from sales and calls of securities available for sale | 2,771 | ||
Proceeds from paydowns and maturities of securities available for sale | 6,359 | 8,378 | 9,491 |
Purchase of securities held to maturity | (2,684) | (5,151) | |
Proceeds from paydowns of securities held to maturity | 1,034 | 1,198 | 283 |
Purchase of premises and equipment, net | (2,211) | (1,180) | (1,732) |
Net cash used in investing activities | (366,624) | (233,665) | (187,074) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock, net | 114,773 | 28,368 | 12,606 |
Proceeds from issuance of preferred stock, net | 5,503 | ||
Purchase and retirement of treasury preferred stock | (1,400) | ||
Proceeds from exercise of stock options | 135 | ||
Redemption of common stock for exercise of stock options and tax withholdings for resticted stock vesting | (255) | ||
Redemption of preferred stock, net | (2,672) | ||
Payment of preferred stock dividend | (3,420) | ||
Proceeds from issuance of subordinated debt, net of issuance cost | 24,443 | ||
Proceeds from FHLB advances | 326,864 | 120,000 | 97,426 |
Repayments of FHLB advances | (363,084) | (137,729) | (65,202) |
Net increase in deposits | 410,575 | 227,741 | 156,793 |
Net cash provided by financing activities | 513,451 | 236,391 | 201,623 |
Increase in cash and cash equivalents | 178,300 | 17,284 | 19,992 |
Cash and cash equivalents at the beginning of the year | 82,931 | 65,647 | 45,655 |
Cash and cash equivalents at the end of the year | 261,231 | 82,931 | 65,647 |
Cash paid during the year for: | |||
Interest | 8,149 | 6,182 | 5,025 |
Taxes | 8,787 | 5,270 | $ 3,265 |
Non-cash investing and financing activities: | |||
Transfer of loans held for investment to held for sale | $ 7,871 | $ 26,095 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization The Company is subject to regulations of certain state and federal agencies and, accordingly, is periodically examined by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Company’s business is susceptible to being affected by state and federal legislation and regulations. Basis of Presentation A summary of the Company’s significant accounting policies consistently applied in the preparation of the accompanying financial statements follows: Use of Estimates Cash Flows Securities Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Gains and losses on sales of securities are recognized in the consolidated statements of operations upon sale. Management evaluates securities for other-than-temporary impairment (“OTTI”) 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) OTTI related to credit loss, which must be recognized in the income statement and 2) other-than-temporary impairment (OTTI) 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. Accounts Receivable & Receivable from Prepaid Card Programs, Net Revenue Recognition Transfers of Financial Assets Loans and Allowance for Loan Losses The allowance for loan losses is maintained at an amount management deems adequate to cover probable incurred credit losses. In determining the level to be maintained, management evaluates many factors, including current economic trends, industry experience, historical loss experience, industry loan concentrations, the borrower’s ability to repay and repayment performance and estimated collateral values. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance may be made for specific loans, 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 relates to loans that are individually classified as impaired. A loan is considered to be impaired when it is probable that the Bank will be unable to collect all principal and interest amounts according to the contractual terms of the loan agreement. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. All commercial and commercial real estate loans are individually evaluated for credit risk at least annually, and all classified loans are individually evaluated for impairment quarterly. Large groups of smaller balance homogenous loans such as residential real estate loans are collectively evaluated for impairment, and accordingly, are not separately evaluated for impairment disclosures unless the individual loan is classified. 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. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Bank determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component of the allowance covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Bank over a rolling two-year period. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects on 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 staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: Construction Loans, Commercial Real Estate Loans, Multi-Family Real Estate Loans, One-to-four Family Real Estate Loans, Commercial & Industrial Loans and Consumer Loans. The risk characteristics of each of the identified portfolio segments are as follows: Construction — If the estimate of value proves to be inaccurate, the value of the building may be insufficient to assure full repayment if liquidation is required. If foreclosure is required on a building before or at completion due to a default, there can be no assurance that all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs will be recovered. Commercial Real Estate — Multi-family Real Estate — One-to-Four Family Real Estate — Commercial & Industrial — Consumer — While management uses available information to recognize losses on loans, future additions to the allowance may be necessary, based on changes in economic conditions or any other factors used in management’s determination. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Interest income on loans is accrued and credited to operations based upon the principal amounts outstanding. Loans are placed on non-accrual when a loan is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more. Delinquent status is based on the contractual terms of the loan. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on such loans are applied as a reduction of the loan principal balance when the collectability of principal, wholly or partially, is in doubt. Interest payments received may be deferred on nonaccrual loans in which the principal balance is deemed to be collectible. Interest income is recognized when all the principal and interest amounts contractually due are brought current and the loans are returned to accrual status. Goodwill The goodwill of $9.7 million is associated with a purchase of the prepaid debit card business. The Company performed an impairment assessment, and determined that no impairment of goodwill exists as of December 31, 2017 and 2016. Stock-Based Compensation Concentrations of Credit Risk Premises and Equipment Other Investments Comprehensive Income Restrictions on Cash Earnings per Common Share Income Taxes A tax position is recognized 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% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Loan Commitments and Related Financial Instruments Fair Value of Financial Instruments Loss Contingencies Reclassifications Operating segments Recently Issued Accounting Standards Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606)” implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In August 2016, the FASB deferred the effective date of the ASU by one year which means ASU 2014-09 will be effective for the Company on January 1, 2019. Management is in the process of evaluating revenue streams to determine the impact the ASU could have on the Company’s operating results or financial condition. In January 2016, the FASB issued ASU 2016-01, an amendment to Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) Technical Corrections and Improvements to Financial Instruments — Overall — Recognition and Measurement of Financial Assets and Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires companies that lease valuable assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. The amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, however, early adoption is permitted. Under ASU 2016-02, the Company will recognize a right-of-use asset and a lease obligation liability on the consolidated balance sheet, which will increase the Company’s assets and liabilities. The Company is evaluating other potential impact of ASU 2016-02 on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326), which requires the measurement of all expected credit losses for financial assets held at the reporting date be based on historical experience, current condition, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. This guidance also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For the Company, this guidance is effective for fiscal years and interim periods beginning after December 15, 2020. The Company is currently evaluating this guidance to determine the impact on its consolidated financial statements. The Company expects to recognize a one-time cumulative increase to the allowance for loan losses as of the beginning of the reporting period in which the ASU takes effect, but, cannot yet determine the magnitude of the impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates the second step in the goodwill impairment test which requires an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for the Company beginning January 1, 2021, with early adoption permitted for goodwill impairment tests performed after January 1, 2017. Management expects ASU 2017-04 will not have a significant impact on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount as discounts continue to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The guidance includes a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Management expects ASU 2017-08 will not have a significant impact on its consolidated financial statements. On February 14, 2018 the FASB issued final guidance in the form of Accounting Standards Update No. 2018-02, which permits — but does not require — companies to reclassify stranded tax effects caused by 2017 tax reform from accumulated other comprehensive income to retained earnings. Additionally, the ASU requires new disclosures by all companies, whether they opt to do the reclassification or not. Management expects ASU 2018-02 will not have a significant impact on its consolidated financial statements. The amendments in this update are effective fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2018; however, early adoption is permitted. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENT SECURITIES [Abstract] | |
INVESTMENT SECURITIES | NOTE 2 — INVESTMENT SECURITIES The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at December 31, 2017 and 2016 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses (dollars in thousands): At December 31, 2017 Amortized Gross Gross Fair Value Available-for-sale Residential mortgage-backed securities $ 24,856 $ 70 $ (242 ) $ 24,684 Residential collateralized mortgage obligations 2,809 — (103 ) 2,706 Commercial collateralized mortgage obligations 1,581 — (31 ) 1,550 Municipal bond 1,098 11 — 1,109 CRA mutual fund 2,160 — (52 ) 2,108 Total securities available-for-sale $ 32,504 $ 81 $ (428 ) $ 32,157 Held-to-maturity Residential mortgage-backed securities $ 5,403 $ — $ (98 ) $ 5,305 Foreign government securities 25 — — 25 Total securities held-to-maturity $ 5,428 $ — $ (98 ) $ 5,330 At December 31, 2016 Amortized Gross Gross Fair Value Available-for-sale Residential mortgage-backed securities $ 29,152 $ 165 $ (290 ) $ 29,027 Residential collateralized mortgage obligations 5,233 — (130 ) 5,103 Municipal bond 1,122 14 — 1,136 CRA mutual fund 2,115 — (52 ) 2,063 Total securities available-for-sale $ 37,622 $ 179 $ (472 ) $ 37,329 Held-to-maturity Residential mortgage-backed securities $ 6,475 $ — $ (81 ) $ 6,394 Foreign government securities 25 — — 25 Total securities held-to-maturity $ 6,500 $ — $ (81 ) $ 6,419 The proceeds from sales and calls of securities and the associated gains and losses are listed below (dollars in thousands): Year Ended December 31, 2017 2016 2015 Proceeds $ — $ 2,771 $ — Gross gains $ — $ 40 $ — Gross losses $ — $ — $ — There were no sales or calls of securities in the year ended December 31, 2017. The tax provision related to the net realized gain was $17,000 in 2016. The amortized cost and fair value of debt securities at year-end December 31, 2017 and 2016 are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mutual funds and mortgage-backed securities are shown separately (dollars in thousands): Held to Maturity Available for Sale At December 31, 2017 Amortized Fair Value Amortized Fair Value Within one year $ — $ — $ — $ — One to five years 25 25 — — Five to ten years — — — — Beyond ten years — — 1,098 1,109 Total 25 25 1,098 1,109 Residential mortgage-backed securities $ 5,403 $ 5,305 $ 24,856 $ 24,684 Residential collateralized mortgage obligations — — 2,809 2,706 Commercial collateralized mortgage obligations 1,581 1,550 CRA mutual fund — — 2,160 2,108 Total Securities $ 5,428 $ 5,330 $ 32,504 $ 32,157 Held to Maturity Available for Sale At December 31, 2016 Amortized Fair Value Amortized Fair Value Within one year $ — $ — $ — $ — One to five years 25 25 — — Five to ten years — — — — Beyond ten years — — 1,122 1,136 Total 25 25 1,122 1,136 Residential mortgage-backed securities $ 6,475 $ 6,394 $ 29,152 $ 29,027 Residential collateralized mortgage obligations — — 5,233 5,103 CRA mutual fund — — 2,115 2,063 Total Securities $ 6,500 $ 6,419 $ 37,622 $ 37,329 There were no securities pledged at December 31, 2017 and 2016 to secure borrowings. At December 31, 2017 and 2016, all of the mortgage-backed securities and collateralized mortgage obligations held by the Bank were issued by U.S. government-sponsored entities and agencies, primarily Fannie Mae and Freddie Mac, institutions, which the government has affirmed its commitment to support. Securities with unrealized losses for the years ended December 31, 2017 and 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, and are as follows (dollars in thousands): Less than 12 Months 12 months or more Total At December 31, 2017 Estimated Unrealized Estimated Unrealized Estimated Unrealized Residential mortgage-backed securities $ 9,194 $ (85 ) $ 7,738 $ (157 ) $ 16,932 $ (242 ) Residential collateralized mortgage obligations — — 2,706 (103 ) 2,706 (103 ) Commercial collateralized mortgage obligations 1,550 (31 ) 1,550 (31 ) CRA mutual fund — — 2,108 (52 ) 2,108 (52 ) Total securities available-for-sale $ 9,194 $ (85 ) $ 14,102 $ (343 ) $ 23,296 $ (428 ) Residential mortgage-backed securities $ 3,260 $ (33 ) $ 2,045 $ (65 ) $ 5,305 $ (98 ) Total held-to-maturity $ 3,260 $ (33 ) $ 2,045 $ (65 ) $ 5,305 $ (98 ) Less than 12 Months 12 months or more Total At December 31, 2016 Estimated Unrealized Estimated Unrealized Estimated Unrealized Residential mortgage-backed securities $ 16,733 $ (290 ) $ — $ — $ 16,733 $ (290 ) Residential collateralized mortgage obligations 2,887 (60 ) 2,216 (70 ) 5,103 (130 ) CRA mutual fund — — 2,063 (52 ) 2,063 (52 ) Total securities available-for-sale $ 19,620 $ (350 ) $ 4,279 $ (122 ) $ 23,899 $ (472 ) Residential mortgage-backed securities $ 6,394 $ (81 ) $ — $ — $ 6,394 $ (81 ) Total held-to-maturity $ 6,394 $ (81 ) $ — $ — $ 6,394 $ (81 ) Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2017 and 2016. At year-end 2017 and 2016, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS | NOTE 3 — LOANS At December 31, 2017 2016 Real estate Commercial $ 783,745 $ 547,711 Construction 36,960 29,447 Multifamily 190,097 117,373 One-to-four family 25,568 26,480 Total Real Estate 1,036,370 721,011 Commercial and industrial 340,001 315,870 Consumer 44,595 18,825 Total loans 1,420,966 1,055,706 Deferred fees (1,070 ) (1,160 ) Allowance for loan losses (14,887 ) (11,815 ) Net loans at the end of the year $ 1,405,009 $ 1,042,731 The following tables represent the changes in the allowance for loan losses for the years ended December 31, 2017, 2016 and 2015, by portfolio segment (dollars in thousands). The portfolio segments represent the categories that the Bank uses to determine its allowance for loan losses: December 31, 2017 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 5,206 $ 5,364 $ 409 $ 620 $ 109 $ 107 $ 11,815 Provision for loan losses 1,930 4,093 110 536 29 361 7,059 Loans charged-off — (3,879 ) — — — (108 ) (3,987 ) Recoveries — — — — — — — Total ending allowance balance $ 7,136 $ 5,578 $ 519 $ 1,156 $ 138 $ 360 $ 14,887 December 31, 2016 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 3,650 $ 4,254 $ 589 $ 986 $ 444 $ 19 $ 9,942 Provision (credit) for loan 1,556 6,640 (180 ) (366 ) 322 88 8,060 Loans charged-off — (5,530 ) — — (659 ) — (6,189 ) Recoveries — — — — 2 — 2 Total ending allowance balance $ 5,206 $ 5,364 $ 409 $ 620 $ 109 $ 107 $ 11,815 December 31, 2015 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 3,283 $ 3,106 $ 269 $ 778 $ 480 $ — $ 7,916 Provision (credit) for loan 367 1,148 320 208 (47 ) 19 2,015 Loans charged-off — — — — — — — Recoveries — — — — 11 — 11 Total ending allowance balance $ 3,650 $ 4,254 $ 589 $ 986 $ 444 $ 19 $ 9,942 Total charge offs were $4.0 million, $6.2 and $0 million during the years ended December 31, 2017, 2016 and 2015 respectively. Included in the charge offs for the years ended December 31, 2017 and December 31, 2016 were write downs associated with taxi medallion loans of $3.7 million and $5.1 million, respectively. The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method as of December 31, 2017 and 2016 (dollars in thousands): At December 31, 2017 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ 9 $ 77 $ 86 Collectively evaluated for impairment 7,136 5,578 519 1,156 129 283 $ 14,801 Total ending allowance balance $ 7,136 $ 5,578 $ 519 $ 1,156 $ 138 $ 360 $ 14,887 Loans: Individually evaluated for impairment $ 2,368 $ — $ — $ — $ 3,566 $ 155 $ 6,089 Collectively evaluated for impairment 781,377 340,001 36,960 190,097 22,002 44,440 1,414,877 Total ending loan balance $ 783,745 $ 340,001 $ 36,960 $ 190,097 $ 25,568 $ 44,595 $ 1,420,966 At December 31, 2016 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ 366 $ — $ — $ 10 $ — $ 376 Collectively evaluated for impairment 5,206 4,998 409 620 99 107 $ 11,439 Total ending allowance balance $ 5,206 $ 5,364 $ 409 $ 620 $ 109 $ 107 $ 11,815 Loans: Individually evaluated for impairment $ 5,504 $ 4,915 $ — $ — $ 1,130 $ — $ 11,549 Collectively evaluated for impairment 542,207 310,955 29,447 117,373 25,350 18,825 1,044,157 Total ending loan balance $ 547,711 $ 315,870 $ 29,447 $ 117,373 $ 26,480 $ 18,825 $ 1,055,706 The following tables present information related to loans determined to be impaired by class of loans as of and for the years ended December 31, 2017, 2016 and 2015 (dollars in thousands): Unpaid Recorded Allowance Average Interest With an allowance recorded: Commercial & industrial $ — $ — $ — $ 2,928 $ — One-to-four family 686 556 9 563 21 Consumer 155 155 77 75 8 Total $ 841 $ 711 $ 86 $ 3,566 $ 29 Without an allowance recorded: Commercial & industrial $ — $ — $ — $ 5,367 $ 229 Commercial real estate 2,890 2,368 0 938 43 One-to-four family 3,157 3,010 0 1,547 87 Total $ 6,047 $ 5,378 $ — $ 7,852 $ 359 Unpaid Recorded Allowance Average Interest With an allowance recorded: Commercial & industrial $ 8,783 $ 3,660 $ 366 $ 6,330 $ 207 One-to-four family 694 565 10 565 21 Total $ 9,477 $ 4,225 $ 376 $ 6,895 $ 228 Without an allowance recorded: Commercial real estate $ 5,974 $ 5,504 $ — $ 5,814 $ 267 Commercial & industrial 1,255 1,255 — 1,340 54 One-to-four family 713 565 — 565 23 Total $ 7,942 $ 7,324 $ — $ 7,719 $ 344 Unpaid Recorded Allowance Average Interest With an allowance recorded: Commercial & industrial $ 1,933 $ 1,933 $ 134 $ 1,983 $ 136 One-to-four family 1,694 1,223 293 1,223 21 Total $ 3,627 $ 3,156 $ 427 $ 3,206 $ 157 Without an allowance recorded: Commercial real estate $ 2,155 $ 1,806 $ — $ 1,833 $ 93 Commercial & industrial 1,425 1,425 — 1,510 61 Multi-family 5,971 5,971 — 6,010 235 One-to-four family 713 565 — 565 21 Total $ 10,264 $ 9,767 $ — $ 9,918 $ 410 The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. Cash basis interest income equals interest income recognized. Interest on non-accrual loans not recognized was $88,000 and $57,000 for the years ended December 31, 2017 and 2016, respectively. Non-accrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. For a loan to be considered impaired, management determines after review whether it is probable that the Bank will not be able to collect all amounts due according to the contractual terms of the loan agreement. Management applies its normal loan review procedures in making these judgments. Impaired loans include individually classified nonaccrual loans and TDRs. Impairment is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For loans that are collateral dependent, the fair value of the collateral is used to determine the fair value of the loan. The fair value of the collateral is determined based on recent appraised values. The fair value of the collateral or present value of expected cash flows is compared to the carrying value to determine if any write-down or specific loan loss allowance allocation is required. The following tables present the recorded investment in non-accrual loans and loans past due over 90 days still on accrual by class of loans as of December 31, 2017 and 2016 (dollars in thousands): At December 31, 2017 Nonaccrual Loans Past Due Commercial real estate $ 787 $ — Commercial & industrial — — One-to-four family 2,447 — Consumer 155 — Total $ 3,389 $ — At December 31, 2016 Nonaccrual Loans Past Due Commercial & industrial $ 3,660 $ — The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 2017 and 2016 (dollars in thousands): At December 31, 2017 30 – 59 Days 60 – 89 Days Greater than Total Past Loans not Total Commercial real estate $ 836 $ — $ 787 $ 1,623 $ 782,122 $ 783,745 Commercial & industrial 85 142 — 227 339,774 340,001 Construction — — — — 36,960 36,960 Multifamily — — — — 190,097 190,097 One-to-four family — — — — 25,568 25,568 Consumer 149 21 155 325 44,270 44,595 Total $ 1,070 $ 163 $ 942 $ 2,175 $ 1,418,791 $ 1,420,966 At December 31, 2016 30 – 59 Days 60 – 89 Days Greater than Total Past Loans not Total Commercial real estate $ — $ 958 $ — $ 958 $ 546,753 $ 547,711 Commercial & industrial 14 3,922 — 3,936 311,934 315,870 Construction — — — — 29,447 29,447 Multifamily — — — — 117,373 117,373 One-to-four family — — — — 26,480 26,480 Consumer — 34 — 34 18,791 18,825 Total $ 14 $ 4,914 $ — $ 4,928 $ 1,050,778 $ 1,055,706 Troubled Debt Restructurings: Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Included in impaired loans at December 31, 2017 and 2016 were recorded investment of $2.7 million and $7.9 million of loans modified in troubled debt restructurings. The Company has allocated $9,000 and $10,000 of specific reserves to customers whose loan terms have been modified as TDRs as of December 31, 2017 and 2016, respectively. The Company has not committed to lend additional amounts as of December 31, 2017 and 2016, to customers with outstanding loans that are classified as TDRs. There were no loans modified as TDRs during the year ended December 31, 2017. During the years ended December 31, 2016 and 2015 the terms of certain loans were modified as TDRs. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk. Modifications involving a reduction of the stated interest rate and/or an extension of the maturity date were for a period of three to five years. The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended 2016 and 2015 (dollars in thousands): At December 31, 2016 Number of Loans Pre-Modification Post-Modification Troubled debt restructurings: Commercial Real Estate 1 $ 3,875 $ 3,875 Total 1 $ 3,875 $ 3,875 At December 31, 2015 Number of Loans Pre-Modification Post-Modification Troubled debt restructurings: Commercial & Industrial 1 $ 1,933 $ 1,933 Total 1 $ 1,933 $ 1,933 Since there were no modified troubled debt restructurings in 2017, there is no impact on the allowance for loan losses and charge-offs during the year ending December 31, 2017. The Bank has allocated $10,000 and $153,000 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2016 and 2015, respectively. In 2017, 2016 and 2015, there were no new loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. 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 Bank’s internal underwriting policy. Credit Quality Indicators: The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Bank analyzes all loans individually by classifying the loans as to credit risk at least annually. An analysis is performed on a quarterly basis for loans classified as special mention, substandard, or doubtful. The Bank uses the following definitions for risk ratings: Special Mention — Substandard — Doubtful — Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows (dollars in thousands): At December 31, 2017 Pass Special Substandard Doubtful Total Commercial real estate $ 777,410 $ 4,369 $ 1,966 $ — $ 783,745 Commercial & industrial 331,775 8,226 — — 340,001 Construction 36,960 — — — 36,960 Multifamily 190,097 — — — 190,097 Total $ 1,336,242 $ 12,595 $ 1,966 $ — $ 1,350,803 At December 31, 2016 Pass Special Substandard Doubtful Total Commercial real estate $ 542,206 $ 4,293 $ 1,212 $ — $ 547,711 Commercial & industrial 309,295 2,915 3,660 — 315,870 Construction 29,447 — — — 29,447 Multifamily 117,373 — — — 117,373 Total $ 998,321 $ 7,208 $ 4,872 $ — $ 1,010,401 For one-to-four family loans and consumer loans, the Bank evaluates credit quality based on the aging status of the loan, which was previously presented, and by performance status. Non-performing loans are loans past due over 90 days or more still accruing interest and loans on non-accrual status. The following table presents the recorded investment in one-to-four family and consumer loans based on performance status as of December 31, 2017 and 2016 (dollars in thousands): At December 31, 2017 Performing Non-Performing Total One-to-four family $ 23,121 $ 2,447 $ 25,568 Consumer 44,440 155 44,595 Total $ 67,561 $ 2,602 $ 70,163 At December 31, 2016 Performing Non-Performing Total One-to-four family $ 26,480 $ — $ 26,480 Consumer 18,825 — 18,825 Total $ 45,305 $ — $ 45,305 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | NOTE 4 — PREMISES AND EQUIPMENT Premises and equipment are summarized as follows as of December 31, 2017 and 2016 (dollars in thousands): Year Ended December 31, 2017 2016 Furniture and Equipment (useful life of 3 to 7 years) $ 7,376 $ 5,973 Leasehold Improvements (useful life of 3 to 10 years) 10,820 10,012 Total Premises and Equipment 18,196 15,985 Less accumulated depreciation and amortization (11,928 ) (10,950 ) Total Premises and Equipment, net $ 6,268 $ 5,035 Depreciation and amortization expense amounted to $978,000, $785,000 and $696,000 for the years ended December 31, 2017, 2016 and 2015 respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
DEPOSITS | NOTE 5 — DEPOSITS Deposits consisted of the following as of December 31, 2017 and 2016 (dollars in thousands): At December 31, 2017 2016 Core Deposits Noninterest bearing demand accounts $ 812,497 $ 403,402 Money market 484,589 482,393 Savings accounts 27,024 17,472 Total core deposits 1,324,110 903,267 Time Deposits Time deposits under $100,000 73,437 69,188 Time deposits $100,000 and over 6,808 21,325 Total deposits $ 1,404,355 $ 993,780 Time deposits greater than $250,000 at December 31, 2017 and 2016 were $38.8 million and $21.3 million, respectively. The Bank had $103.1 million and $97.3 million of brokered deposits as of December 31, 2017 and 2016, respectively, which were primarily included in money market and savings accounts. The following are scheduled maturities of time deposits as of December 31, 2017 (dollars in thousands): 2018 $ 63,245 2019 16,219 2020 68 2021 283 2022 430 Total time deposits $ 80,245 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2017 | |
Advances from Federal Home Loan Banks [Abstract] | |
BORROWINGS | NOTE 6 — BORROWINGS Year Ending December 31, 2017 2016 Maturing in 2018, fixed rate at rates from 1.21% to 3.23%, weighted averaging 1.53% $ 42,198 $ — Maturing 2017 through 2018, fixed rate at rates from 0.77% to 3.23%, weighted averaging 0.95% 78,418 Total $ 42,198 $ 78,418 Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances are collateralized by mortgage loans under a blanket lien agreement in the amount of approximately $263.4 million and $204.4 million as of December 31, 2017 and 2016, respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company is eligible to borrow an additional total of approximately $221.2 million as of December 31, 2017. FHLB advances that mature over the next five years and thereafter as follows (dollars in thousands): Principal 2018 $ 42,198 2019 — 2020 — 2021 — 2022 — Total $ 42,198 Trust Preferred Securities Payable On July 14, 2006, the Company established MetBank Capital Trust II, a Delaware statutory trust (“Trust II”). The Company owns all of the common capital securities of Trust II in exchange for contributed capital of $310,000. Trust II issued $10 million of preferred capital securities to investors in a private transaction and invested the proceeds, combined with the proceeds from the sale of Trust II’s common capital securities, in the Company through the purchase of $10.310 million aggregate principal amount of Floating Rate Junior Subordinated Debentures (the “Debentures”) issued by the Company. The Debentures, the sole assets of Trust II, mature on October 7, 2036, and bear interest at a fixed rate of 7.61% for the first five years, then at a floating rate of three-month LIBOR plus 2.00%. The Debentures are callable after five years. The interest rates were 3.36% and 2.88% as of December 31, 2017 and 2016, respectively. The Company is not considered the primary beneficiary of these trusts, therefore the trusts are not consolidated in the Company’s financial statements; the subordinated debentures are shown as a liability on the consolidated statements of financial condition. Interest on the subordinated debentures may be deferred by the Company at any time or from time to time for a period not exceeding 20 consecutive quarterly payments (5 years), provided there is no event of default. At the end of the deferral period, the Company must pay accrued interest, at which point it may elect a new deferral period provided that no deferral may extend beyond maturity. The investments in the common capital securities of Trust I and Trust II are included in other assets on the consolidated statements of financial condition. The subordinated debentures may be included in Tier 1 capital (with certain applicable limitations) under current regulatory guidelines and interpretations. Subordinated Debt Interest rate from March 15, 2022 to the maturity date shall reset quarterly to an interest rate per annum equal to the then current three month LIBOR (not less than zero) plus 426 basis points, payable quarterly in arrears. The Company may redeem the subordinated notes beginning with the interest payment date of March 15, 2022 and on any scheduled interest payment date thereafter. The subordinated notes may be redeemed in whole or in part, at a redemption price equal to 100% of the principal amount of the subordinated notes plus any accrued and unpaid interest. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 7 — INCOME TAXES Income tax expense consisted of the following for the years ended December 31, 2017, 2016 and 2015 (dollars in thousands): Year Ended December 31, (in thousands) 2017 2016 2015 Current Federal $ 7,920 $ 3,466 $ 2,873 State and local 2,499 492 141 Total current 10,419 3,958 3,014 Deferred Federal 1,045 (795 ) (622 ) State and local (255 ) (118 ) 167 Total deferred 790 (913 ) (455 ) Total income tax expense $ 11,209 $ 3,045 $ 2,559 Deferred tax assets and liabilities consist of the following (dollars in thousands): At December 31, 2017 2016 Deferred tax assets: Allowance for loan losses $ 4,583 $ 4,990 Nonaccrual interest income 28 159 Off balance sheet reserves 110 68 Restricted stock 153 165 Tangible asset 23 36 Non-Qualified stock options 183 251 Unrealized loss on securities available for sale 86 118 Total gross deferred tax assets 5,166 5,787 Deferred tax liabilities: Depreciation and amortization 574 427 Prepaid asset 159 150 Total gross deferred tax liabilities 733 577 Net deferred tax asset, included in other assets $ 4,433 $ 5,210 The following is a reconciliation of the Company’s statutory federal income tax rate of 35% to its effective tax rate for the years ended December 31, 2017, 2016 and 2015 (dollars in thousands): For the year ended December 31, 2017 2016 2015 Tax expense/ Rate Tax expense/ Rate Tax expense/ Rate Pretax income at statutory rates $ 8,252 35.00 % $ 2,740 34.00 % $ 2,322 34.00 % State and local taxes, net of federal income 1,459 6.19 247 3.10 204 3.00 Nondeductible expenses 21 0.09 19 0.20 13 0.20 Stock options (113 ) (0.48 ) 49 0.60 16 0.20 Tax-exempt income, net (10 ) (0.04 ) (10 ) (0.10 ) — — Impact of U.S. tax reform (the Tax Act) 1,581 6.71 — — — — Other 19 0.08 — — 4 0.10 Effective income tax expense/rate $ 11,209 47.55 % $ 3,045 37.80 % $ 2,559 37.50 % Metropolitan Bank Holding Corporation and the Bank file consolidated Federal, New York State and New York City tax returns in 2017, 2016 and 2015. On December 22, 2017, the U.S. government enacted the Tax Act, which includes significant changes to the U.S. corporate income tax system including a federal corporate rate reduction from 35% to 21% and limitations on the deductibility of interest expense and executive compensation. The Tax Act resulted in a one-time U.S. tax expense of $1.6 million. A majority of the provisions in the Tax Act are effective January 1, 2018. As of December 31, 2017 and 2016 there are no unrecognized tax benefits, and the Company does not expect this to significantly change in the next twelve months. The Company and its subsidiary are subject to U.S. federal income tax as well as income tax of the State and City of New York. The Company is no longer subject to examination by the U.S. federal and state or local tax authorities for years prior to 2014. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8 — RELATED PARTY TRANSACTIONS A member of the Board of Directors of the Company is a stockholder of PASL Holding LLC (“PASL”). PASL conducts no business other than the holding of shares of the Company. A member of the Board of Directors is the managing director of a law firm which acts (1) in connection with certain regulatory and corporate compliance matters and in the preparation of and negotiation of certain contractual vendor arrangements, and (2) as the Bank’s counsel in certain lending transactions. During the years ended December 31, 2017, 2016 and 2015, the Bank incurred legal fees of $101,000, $111,000 and $110,000, respectively, in connection with these services. Deposits from principal officers, directors, and their affiliates at year-end 2017, 2016 and 2015 were $3.2 million, $710,000 and $538,000 respectively. A promissory note of $780,000 was made to an executive officer of the Bank during 2016. The note has a fixed interest rate of 2.125% per annum (determined by reference to the 5-year LIBOR rate in effect on the note date, plus 100 basis points) and interest is payable on the last day of each calendar quarter. The note has a balloon payment term and the due date is August, 15, 2021, with no prepayment penalty. The outstanding balance of the subject loan was $780,000 as of December 31, 2017 and 2016. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 9 — COMMITMENTS AND CONTINGENCIES The Company leases certain branch properties under operating leases. Approximate future minimum rental payments required under all non-cancellable operating leases, before considering renewal options that generally are present, were as follows (dollars in thousands): Year Ending December 31, 2018 $ 2,753 2019 2,754 2020 2,737 2021 2,201 2022 2,129 Thereafter (and through 2035) 6,754 $ 19,328 Total rent expense for the years ended December 31, 2017, 2016 and 2015, was $2.4 million, $2.3 million and $2.0 million, respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 10 — FAIR VALUE OF FINANCIAL INSTRUMENTS 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 value: Level 1: Level 2: Level 3: The Company used the following methods and significant assumptions to estimate fair value: Investment Securities Impaired Loans Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands): Fair Value Measurement 2017 Quoted Prices Significant Significant Assets: Residential mortgage-backed securities $ — $ 24,684 $ — Residential collateralized mortgage obligation — 2,706 — Commercial collateralized mortgage obligations 1,550 Municipal bond — 1,109 — CRA Mutual Fund 2,108 — — Fair Value Measurement 2016 Quoted Prices Significant Significant Assets: Residential mortgage-backed securities $ — $ 29,027 $ — Residential collateralized mortgage obligation — 5,103 — Municipal bond — 1,136 — CRA Mutual Fund 2,063 — — There were no transfers between Level 1 and Level 2 during 2017 or 2016. Assets and Liabilities Measured on a Non-Recurring Basis : There are no loans that are measured at fair value on a non-recurring basis and are impaired at December 31, 2017. Loans that were measured at fair value on a non-recurring basis and were impaired at December 31, 2016, are summarized below (dollars in thousands): Fair Value Measurements Using: Total at Quoted Prices Significant Significant Impaired loans: Commercial and industrial loan $ 3,294 $ — $ — $ 3,294 The following tables presents quantitative information about level 3 fair value measurements for assets measured at fair value on a non-recurring basis at December 31, 2016 (dollars in thousands): Fair Value Valuation Technique Unobservable Input Range December 31, 2016 Impaired loans – Commercial and industrial loan $ 3,294 Market Adjustments for 10.00 % As of December 31, 2016, impaired loans with allocated allowance for loan losses, which are assets measured at fair value on a non-recurring basis, using the fair value of the collateral (Level 3 inputs), had a carrying amount of $3.7 million with a valuation allowance of $366,000, resulting in an increase of provision for loan loss of $42,000 for the year then ended. Carrying amount and estimated fair values of financial instruments at December 31, 2017 and 2016 were as follows (dollars in thousands): At December 31, 2017 Fair Value Measurement Using: Carrying Quoted Significant Significant Total Fair Financial assets: Cash and due from banks $ 261,231 $ 261,231 $ — $ — $ 261,231 Securities available for sale 32,157 2,108 30,049 — 32,157 Securities held to maturity 5,428 — 5,330 — 5,330 Loans, net 1,405,009 — — 1,410,860 1,410,860 Other investments Federal Reserve Bank stock 3,911 N/A N/A N/A N/A Federal Home Loan Bank stock 2,766 N/A N/A N/A N/A SBA Loan Fund 5,000 N/A N/A N/A N/A Certificates of deposit 2,000 2,000 — — 2,000 Accrued interest receivable 4,421 11 116 4,294 4,421 Financial liabilities: Deposits without stated maturities $ 1,324,110 $ 1,324,110 $ — $ — 1,324,110 Deposits with stated maturities 80,245 — 80,079 — 80,079 FHLB Advances 42,198 — 42,188 — 42,188 Trust preferred securities payable 20,620 — 19,997 19,997 Subordinated debt, net of issurance cost 24,489 — 25,500 — 25,500 Accrued interest payable 749 27 258 464 749 At December 31, 2016 Fair Value Measurement Using: Carrying Quoted Significant Significant Total Fair Financial assets: Cash and due from banks $ 82,931 $ 82,931 $ — $ — $ 82,931 Securities available for sale 37,329 2,063 35,266 . 37,329 Securities held to maturity 6,500 — 6,419 — 6,419 Loans, net 1,042,731 — — 1,059,333 1,059,333 Other investments 12,588 N/A N/A N/A N/A Accrued interest receivable 2,735 — 157 2,578 2,735 Financial liabilities: Deposits without stated maturities $ 903,267 $ 903,267 $ — $ — $ 903,267 Deposits with stated maturities 90,513 — 90,559 — 90,559 FHLB Advances 78,418 — 78,872 — 78,872 Trust preferred securities payable 20,620 — — 19,998 19,998 Accrued interest payable 227 19 62 146 227 The methods and assumptions used to estimate fair value are described as follows: Cash and Due from Banks: Securities Available for Sale and Held to Maturity: Other Investments: Loans: Deposits without stated maturities: Deposits with stated maturities: FHLB Advances: Trust Preferred Securities Payable: Subordinated Debt: Accrued Interest Receivable and Payable: Off-Balance-Sheet Liabilities: Fair value estimates are made at specific points in time and are based on existing on-and off-balance sheet financial instruments. These estimates are subjective in nature and dependent on a number of significant assumptions associated with each financial instrument or group of financial instruments, including estimates of discount rates, risks associated with specific financial instruments, estimates of future cash flows, and relevant available market information. Changes in assumptions could significantly affect the estimates. In addition, fair value estimates do not reflect the value of anticipated future business, premiums or discounts that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, or the tax consequences of realizing gains or losses on the sale of financial instruments. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 11 — STOCKHOLDERS’ EQUITY The Class A preferred stock was nonvoting and contained a dividend rate of 8.00% per annum. Dividends were non-cumulative and payable out of surplus or net profits of the Company when declared by the Company’s Board of Directors, provided that no dividends were paid on common stock until the Class A preferred stock have received all current dividends and any supplementary dividends. Supplementary dividends could be declared at the Board of Directors’ discretion to make up for unpaid ordinary dividends from prior fiscal years. During 2015, a shareholder converted a total of 24,204 shares of Class A preferred stock to 13,477 shares of common stock. The Company did not issue any preferred stock in 2015. During 2015, the Company issued 722,222 shares of common stock via a rights offering. Total proceeds net of direct offering cost of $394,000 were $12,606,000. In February 2016, a shareholder converted a total of 60,000 shares of Class A preferred stock to 60,000 shares of common stock without any monetary exchange. In April 2016, one of the Company’s Preferred Class A shareholders forfeited 123,924 shares and all rights to these Non-Cumulative Perpetual Preferred Class A shares to the United States Marshals Service. The Company purchased these shares and all rights to these shares from the United States Marshals Office for $1.4 million, equating to a price per share of $11.30. These shares were purchased by the Company as Treasury Preferred Stock and retired in August 2016. In August 2016, all of the remaining outstanding 267,120 Class A preferred stock were redeemed at the issued price of $10.00 per share, totaling $2.7 million. The Company also paid dividends totaling $3.4 million on the shares, which represented the dividend rate of 8% for the period from issuance through redemption. The Series F, Class B preferred stock is nonvoting and with a par value of $0.01 per share. The stock is subordinate and junior to all indebtedness of the Company and to all other series of preferred stock of the Company. The holders of the stock are entitled to receive ratable dividends as provided herein only if and when dividends are concurrently declared and payable on the shares of common shares. During August 2016, the Company issued 272,636 shares of Series F, Class B preferred stock for a net amount of $5.5 million, and 1,365,969 shares of common stock via a rights offering for a net amount of $28.2 million. An additional 8,143 common shares were sold to directors for $170,000. The direct offering cost associated with the preferred stock and common stock offering were $710,000. The Company did not issue any preferred stock in 2015. During 2016, restricted common stock vesting totaled 82,806 shares and. During 2017, restricted common stock vesting totaled 16,969. The Company completed IPO of its common stock on November 10, 2017 and sold 3,100,000 shares of common stock at $35.00 per share, as well as, 465,000 additional shares of common stock at $35.00 per share pursuant to the underwriter’s overallotment option. The aggregate net proceeds to the Company from its IPO, including the overallotment shares, after deducting the underwriting discount and estimated offering expenses were approximately $115 million. |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 12 Months Ended |
Dec. 31, 2017 | |
STOCK COMPENSATION PLAN [Abstract] | |
STOCK COMPENSATION PLAN | NOTE 12 — STOCK COMPENSATION PLAN The Company has two share-based compensation plans which are described below. Stock Option Plan The Company established the 1999 Stock Option Plan (the “1999 Plan”), as amended, under which certain employees and directors may receive stock options. Stock options are generally granted with an exercise price equal to 100% of the fair value of the common stock at the date of grant. As of December 31, 2017 and 2016, there were no unissued shares of the Company’s common stock authorized for option grants under the Plan. Equity Incentive Plan In May 2009 the Company approved the 2009 Equity Incentive Plan (the “2009 Plan”) as a successor to the 1999 Plan. The 2009 Plan permits the granting of restricted shares, incentive stock options (“ISO”), nonqualified stock options, stock appreciation rights, restricted share units and other stock-based awards to employees, directors, officers, consultants, advisors, suppliers and any other persons or entity whose services are considered valuable for up to 423,000 shares. The authorized shares will be new issues upon exercise of any options granted. Under the terms of the 2009 Plan, each option agreement cannot have an exercise price that is less than 100% of the fair value of the shares covered by the option on the date of grant. In the case of an ISO granted to any 10% shareholder, the exercise price shall not be less than 110% of the fair value of the shares covered by the option on the date of grant. In no event shall the exercise price of an option be less than the par value of the shares for which the option is exercisable. In no event shall the exercise period exceed ten years from the date of grant of the option, except, in the case of an ISO granted to a 10% shareholder, the exercise period shall not exceed five years from the date of grant. In the event of a change in control, the Committee may determine that any award then outstanding shall be assumed or an equivalent award shall be substituted by the successor corporation. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities based on historical volatilities of the Company’s common stock are not significant. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Historically, the Company has not paid a dividend on its common shares and does not expect to do so in the near future. No options were granted in 2017 and 2016. The fair value of options granted during 2015 was determined using the following weighted-average assumptions as of grant date: 2015 Risk-free interest rate 12.19% Expected term 10 years Dividend yield 0% There was no unrecognized compensation cost related to non-vested stock options granted under the Plan as of December 31, 2017 and 2016; and there was $622,000 of total unrecognized compensation cost related to non-vested stock options granted under the Plan as of December 31, 2015. Total compensation cost related to stock option plan was $0, $620,000 and $166,000 for 2017, 2016 and 2015, respectively. 178,600 shares of stock options were accelerated to vest as part of restructuring an executive management employment agreement, during the third quarter of 2016. A summary of the status of the Company’s stock option plan and the change during the year is presented below: 2017 2016 Number of Weighted Number of Weighted Outstanding, beginning of year 276,500 $ 19.97 289,000 $ 20.41 Granted — — — — Exercised (4,503 ) 30.00 — — Cancelled/forfeited (497 ) 30.00 (12,500 ) 30.00 Outstanding, end of year 271,500 $ 19.79 276,500 $ 19.97 Options vested and exercisable at year-end 271,500 $ 19.79 276,500 $ 19.97 Weighted average fair value of options granted during the year $ — $ — Weighted average remaining contractual life (years) 5.57 6.25 The following table summarizes information about stock options outstanding at December 31, 2017: Options Outstanding Range of Average Exercise Prices Number Weighted Weighted $10 – 20 231,000 6.38 18.00 $21 – 30 40,500 0.95 30.00 $10 – 30 271,500 5.57 19.79 The Company issued restricted stock awards to certain key personnel under the 2009 Equity Incentive Plan. Each restricted stock award vests based on vesting scheduled outlined in the award agreement. Restricted stock awards are subject to forfeiture if the holder is not employed by the Company on the vesting date. In 2013, shareholders approved an additional 300,000 shares available under the plan. In 2016, additional shares of 760,000 were authorized. Total shares issuable under the plan are 823,629 and 851,571 at December 31, 2017 and 2016, respectively. There were 31,606 and 77,667 shares granted in 2017 and 2016, respectively. The fair value of the shares granted was calculated using the share price as of grant date. As of December 31, 2017, there was $1.06 million of total unrecognized compensation expense related to the restricted stock awards. The cost is expected to be recognized over a weighted-average period of 2.0 years. Total compensation cost that has been charged against income for this plan was $412,000, $1.7 million and $281,000 for 2017, 2016 and 2015, respectively. Out of the total compensation cost related to restricted stocks in 2016, $1.4 million was associated with the grant and immediate vesting of 66,667 restricted shares. These shares were issued as a part of restructuring an executive management employment agreement, during the third quarter of 2016. The following table summarizes the changes in the Company’s non-vested restricted stock awards for the year ended December 31, 2017: Year Ended December 31, 2017 Number of Weighted Outstanding, beginning of year 64,638 $ 20.42 Granted 31,606 $ 21.00 Forfeited (3,167 ) $ 18.00 Vested (16,973 ) $ 18.00 Outstanding at December 31, 2017 76,104 $ 20.61 The total fair value of shares vested is $725,000, $1.7 million and $68,000 for the years ended December 31, 2017, 2016 and 2015, respectively. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | NOTE 13 — EMPLOYEE BENEFIT PLAN The Company has a 401(k) plan for eligible employees. The contribution for any participant may not exceed the maximum amount allowable by law. Each year, the Company may elect to match a percentage of participant contributions. The Company may also elect each year to make additional discretionary contributions to the plan. The total contributions were $334,000, $268,000 and $221,000 for the year ended December 31, 2017, 2016 and 2015, respectively. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | NOTE 14 — FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The Bank had outstanding the following off-balance-sheet financial instruments whose contract amounts represent credit risk as of December 31 (dollars in thousands): At December 31, 2017 2016 Fixed Rate Variable Rate Fixed Rate Variable Rate Undrawn lines of credit $ 39,651 $ 76,008 $ 60,984 $ 9,890 Letters of credit 23,741 — 9,808 — $ 63,392 $ 76,008 $ 70,792 $ 9,890 A commitment to extend credit is a legally binding agreement to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally expire within 2 years. At December 31, 2017, the Bank’s fixed rate loan commitments are to make loans with interest rates ranging from 3.5% to 9.5% and maturities of one year or more. At December 31, 2016 the Bank’s fixed rate loan commitments were to make loans with interest rates ranging from 3.75% to 8.75% and maturities of one year or more. The amount of collateral obtained, if any, by the Bank upon extension of credit is based on management’s credit evaluation of the borrower. Collateral held varies but may include mortgages on commercial and residential real estate, security interests in business assets, equipment, deposit accounts with the Bank or other financial institutions and securities. The Bank has stand-by letters of credit in the amount of $23.7 million and $9.8 million included above as of December 31, 2017 and 2016, respectively, for which the Bank has pledged interest-bearing accounts of $1.7 million and $4.0 million as of December 31, 2017 and 2016, respectively. The stand-by letters of credit and the time deposits mature within one year. |
REGULATORY CAPITAL
REGULATORY CAPITAL | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY CAPITAL | NOTE 15 — REGULATORY CAPITAL The Holding Company and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. The foregoing capital ratios are based in part on specific quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about capital components, risk weightings and other factors. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Bank on January 1, 2015 with full compliance with all of the requirements being fully phased in by January 1, 2019. The capital conservation buffer was 1.25% at December 31, 2017 and 0.625% at December 31, 2016. The capital conservation buffer requirement is being phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increasing by 0.625% each subsequent January 1, until it reaches 2.5% on January 1, 2019. The net unrealized gain or loss on available for sale securities is not included in the computation of the regulatory capital. The Company and the Bank meet all capital adequacy requirements, to which they are subject, as of December 31, 2017 and 2016. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2017 and 2016, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. The following is a summary of actual capital amounts and ratios as of December 31, 2017 and 2016, for the Company and the Bank compared to the requirements for minimum capital adequacy and classification as well capitalized. Actual and required capital amounts and ratios are presented below at year end (dollars in thousands): Actual For Capital Adequacy To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio At December 31, 2017 Total capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 287,039 19.9 % $ 115,636 ≥ 8.0 % N/A N/A Metropolitan Commercial Bank $ 280,317 19.4 % $ 115,523 ≥ 8.0 % $ 144,403 ≥ 10.0 % Tier 1 common equity (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 221,803 15.3 % $ 65,045 ≥ 4.5 % N/A N/A Metropolitan Commercial Bank $ 265,076 18.4 % $ 64,981 ≥ 4.5 % $ 93,862 ≥ 6.5 % Tier 1 capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 247,305 17.1 % $ 86,726 ≥ 6.0 % N/A N/A Metropolitan Commercial Bank $ 265,076 18.4 % $ 86,642 ≥ 6.0 % $ 115,523 ≥ 8.0 % Tier 1 capital (to average assets) Metropolitan Bank Holding Corp. $ 247,305 13.7 % $ 72,206 ≥ 4.0 % N/A N/A Metropolitan Commercial Bank $ 265,076 14.7 % $ 72,099 ≥ 4.0 % $ 90,124 ≥ 5.0 % At December 31, 2016 Total capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 131,895 12.5 % $ 84,733 ≥ 8.0 % N/A N/A Metropolitan Commercial Bank $ 130,949 12.4 % $ 84,619 ≥ 8.0 % $ 105,774 ≥ 10.0 % Tier 1 common equity (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 114,421 10.8 % $ 47,662 ≥ 4.5 % N/A N/A Metropolitan Commercial Bank $ 118,977 11.3 % $ 47,598 ≥ 4.5 % $ 68,753 ≥ 6.5 % Tier 1 capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 119,923 11.3 % $ 63,549 ≥ 6.0 % N/A N/A Metropolitan Commercial Bank $ 118,977 11.3 % $ 63,465 ≥ 6.0 % $ 84,619 ≥ 8.0 % Tier 1 capital (to average assets) Metropolitan Bank Holding Corp. $ 119,923 10.5 % $ 45,742 ≥ 4.0 % N/A N/A Metropolitan Commercial Bank $ 118,977 10.4 % $ 45,703 ≥ 4.0 % $ 57,128 ≥ 5.0 % The following is a summary of actual capital amounts and ratios as of December 31, 2017 and 2016 for the Company and the Bank compared to the requirements for minimum capital adequacy plus the 1.25% capital conservation buffer currently in place: Actual Minimum for Capital Adequacy Amount Ratio Amount Ratio December 31, 2017: Total capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 287,039 19.9 % N/A N/A Metropolitan Commercial Bank $ 280,317 19.4 % $ 133,573 ≥ 9.3 % Tier 1 common equity (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 221,803 15.3 % N/A N/A Metropolitan Commercial Bank $ 265,076 18.4 % $ 83,032 ≥ 5.8 % Tier 1 capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 247,305 17.1 % N/A N/A Metropolitan Commercial Bank $ 265,076 18.4 % $ 104,692 ≥ 7.3 % Tier 1 capital (to average assets) Metropolitan Bank Holding Corp. $ 247,305 13.7 % N/A N/A Metropolitan Commercial Bank $ 265,076 14.7 % $ 72,099 ≥ 4.0 % Actual Minimum for Capital Adequacy Amount Ratio Amount Ratio December 31, 2016: Total capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 131,895 12.5 % N/A N/A Metropolitan Commercial Bank $ 130,949 12.4 % $ 91,230 ≥ 8.6 % Tier 1 common equity (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 114,421 10.8 % N/A N/A Metropolitan Commercial Bank $ 118,977 11.3 % $ 54,209 ≥ 5.1 % Tier 1 capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 119,923 11.3 % N/A N/A Metropolitan Commercial Bank $ 118,977 11.3 % $ 70,075 ≥ 6.6 % Tier 1 capital (to average assets) Metropolitan Bank Holding Corp. $ 119,923 10.5 % N/A N/A Metropolitan Commercial Bank $ 118,977 10.4 % $ 45,703 ≥ 4.0 % |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | NOTE 16 — EARNINGS PER COMMON SHARE The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earning available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share calculation are as follows (in thousands, except per share data). Year Ended December 31, 2017 2016 2015 Basic Net income per consolidated statements of income $ 12,369 $ 5,013 $ 4,269 Less: Dividends paid to preferred shareholders — (3,420 ) — Less: Earnings allocated to participating securities (183 ) (30 ) (85 ) Net income available to common stockholder $ 12,186 $ 1,563 $ 4,184 Weighted average common shares outstanding including participating securities 5,147,149 3,708,734 2,775,152 Less: Weighted average participating securities (76,104 ) (68,708 ) (55,347 ) Weighted average common shares outstanding 5,071,045 3,640,026 2,719,805 Basic earnings per common share $ 2.40 $ 0.43 $ 1.54 Diluted Net income allocated to common shareholders $ 12,186 $ 1,563 $ 4,184 Weighted average common shares outstanding for basic earnings per common share 5,071,045 3,640,026 2,719,805 Add: Dilutive effects of assumed exercise of stock options 131,189 33,000 — Average shares and dilutive potential common shares 5,202,234 3,673,026 2,719,805 Dilutive earnings per commons share $ 2.34 $ 0.43 $ 1.54 There were no stock options that were not considered in computing diluted earnings per common share for 2017; and 45,500 and 289,000 shares of common stock were not considered in computing diluted earnings per common share for 2016 and 2015, respectively, because they were antidilutive. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | NOTE 17 — PARENT COMPANY FINANCIAL INFORMATION Condensed financial information for the Corporation (parent company only) is as follows (dollars in thousands): Condensed Balance Sheets At December 31, 2017 2016 Assets Cash and due from banks $ 6,761 $ 818 Loans, net of allowance for loan losses 776 776 Investments 620 620 Investment in subsidiary bank, at equity 274,190 128,671 Other assets 596 11 Total assets $ 282,943 $ 130,896 Liabilities and Stockholders’ Equity Trust preferred securities payable 20,620 20,620 Subordinated debt payable, net of issuance costs 24,489 — Other liabilities 950 785 Total liabilities 46,059 21,405 Stockholders’ equity: Preferred stock 3 3 Common stock 81 45 Surplus 211,145 96,116 Retained earnings 25,861 13,492 Accumulated other comprehensive loss, net of tax (206 ) (165 ) Total equity 236,884 109,491 Total liabilities and stockholders’ equity $ 282,943 $ 130,896 Condensed Statements of Income Year Ended December 31, 2017 2016 2015 Income: Loan $ 17 $ 6 $ — Securities and money market funds — 19 25 Total interest income 17 25 25 Interest expense: Trust preferred securities payable 636 539 455 Subordinated debt interest expense 1,322 — — Total interest expense 1,958 539 455 Net interest expense (1,941 ) (514 ) (430 ) Provision for loan losses — 4 — Net interest income after provision for loan losses (1,941 ) (518 ) (430 ) Other expense 33 — — Loss before undistributed earnings of subsidiary bank (1,974 ) (518 ) (430 ) Equity in undistributed earnings of subsidiary bank 13,560 5,319 4,526 Income before income tax expense 11,586 4,801 4,096 Income tax benefit (783 ) (212 ) (173 ) Net income $ 12,369 $ 5,013 $ 4,269 Condensed Statement of Cash Flows Year Ended December 31, 2017 2016 2015 Net income $ 12,369 $ 5,013 $ 4,269 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Undistributed earnings of subsidiary bank (13,560 ) (5,319 ) (4,526 ) Amortization of subordinated debt issuance costs 46 — — Provision for loan losses — 4 — Stock based compensation expense 412 — — Decrease (increase) in other assets (585 ) 25 (29 ) Increase (decrease) in other liabilities 165 415 26 Net cash provided by (used in) operating activities (1,153 ) 138 (260 ) Cash Flows From Investing Activities: Investments in subsidiary bank (132,000 ) (26,000 ) (11,400 ) Loan to related party — (780 ) — Net cash used in Investing activities (132,000 ) (26,780 ) (11,400 ) Cash Flows From Financing Activities: Proceeds from issuance of common stock, net 114,773 28,368 12,606 Repurchase of common stock for exercise of stock options and tax withholdings for restricted stock vestings (255 ) — — Proceeds from issuance of preferred stock, net — 5,503 — Purchase and retirement of preferred stock — (1,400 ) — Redemption of preferred stock, net — (2,672 ) — Proceeds from exercise of stock options 135 — — Proceeds from issuance of subordinated debt, net of issuance cost 24,443 — — Payment of preferred stock dividend — (3,420 ) — Net cash provided by financing activities 139,096 26,379 12,606 Net (decrease) increase in cash and cash equivalents 5,943 (263 ) 946 Cash and cash equivalents, beginning of year 818 1,081 135 Cash and cash equivalents, end of year $ 6,761 $ 818 $ 1,081 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2017 | |
AOCI Attributable to Parent [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 18 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in Accumulated Other Comprehensive Income (Loss) balances, net of tax effects at the dates indicated (dollars in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ (165 ) $ 16 $ 129 Net change in other comprehensive income (loss) before reclassification, net of tax (41 ) (158 ) (113 ) Amounts reclassified from accumulated other comprehensive income, net of tax — (23 ) — Net current period other comprehensive loss (41 ) (181 ) (113 ) Ending balance $ (206 ) $ (165 ) $ 16 The following represents the reclassifications out of accumulated other comprehensive (loss) income (dollars in thousands): Year Ended December 31, Affected line item in the Consolidated 2017 2016 2015 Realized gain on sale of available for sale securities $ — $ 40 $ — Net gains on securities transactions Income tax expense — $ (17 ) — Income tax expense Total reclassifications, net of income tax $ — $ 23 $ — |
UNAUDITED QUARTERLY FINANCIAL D
UNAUDITED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED QUARTERLY FINANCIAL DATA | NOTE 19 — UNAUDITED QUARTERLY FINANCIAL DATA Selected Consolidated Quarterly Financial Data (dollars, except per share amounts, in thousands) 2017 Quarter Ended December 31 September 30 June 30 March 31 Interest income $ 17,864 $ 16,401 $ 14,047 $ 12,441 Interest expense 2,293 2,437 2,281 1,660 Net interest income 15,571 13,964 11,766 10,781 Provision for loan losses 3,499 1,200 1,790 570 Net interest income after provision for loan losses 12,072 12,764 9,976 10,211 Non-interest income 6,249 2,233 1,573 1,245 Non-interest expense 9,780 8,590 7,141 7,234 Income before income taxes 8,541 6,407 4,408 4,222 Income tax expense 5,216 2,562 1,757 1,674 Net income $ 3,325 $ 3,845 $ 2,651 $ 2,548 Basic earnings per share $ 0.50 $ 0.83 $ 0.57 $ 0.55 Diluted earnings per share $ 0.49 $ 0.82 $ 0.57 $ 0.55 2016 Quarter Ended December 31 September 30 June 30 March 31 Interest income $ 11,919 $ 11,337 $ 10,970 $ 9,929 Interest expense 1,492 1,519 1,598 1,480 Net interest income 10,427 9,818 9,372 8,449 Provision for loan losses 5,900 350 1,250 560 Net interest income after provision for loan losses 4,527 9,468 8,122 7,889 Non-interest income 1,288 1,321 1,658 1,156 Non-interest expense 6,199 8,267 6,662 6,243 Income before income taxes (384 ) 2,522 3,118 2,802 Income tax expense (433 ) 1,072 1,268 1,138 Net income $ 49 $ 1,450 $ 1,850 $ 1,664 Basic earnings per share $ 0.01 $ (0.50 ) $ 0.59 $ 0.53 Diluted earnings per share (1) $ 0.01 $ (0.50 ) $ 0.58 $ 0.53 (1) The EPS for September 30, 2016 was negative despite having a positive Net Income due to dividends paid out to preferred shareholders in that quarter. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation A summary of the Company’s significant accounting policies consistently applied in the preparation of the accompanying financial statements follows: |
Use of Estimates | Use of Estimates |
Cash Flows | Cash Flows |
Securities | Securities Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Gains and losses on sales of securities are recognized in the consolidated statements of operations upon sale. Management evaluates securities for other-than-temporary impairment (“OTTI”) 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) OTTI related to credit loss, which must be recognized in the income statement and 2) other-than-temporary impairment (OTTI) 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. |
Accounts Receivable & Receivable from Prepaid Card Programs, Net | Accounts Receivable & Receivable from Prepaid Card Programs, Net |
Revenue Recognition | Revenue Recognition |
Transfers of Financial Assets | Transfers of Financial Assets |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses The allowance for loan losses is maintained at an amount management deems adequate to cover probable incurred credit losses. In determining the level to be maintained, management evaluates many factors, including current economic trends, industry experience, historical loss experience, industry loan concentrations, the borrower’s ability to repay and repayment performance and estimated collateral values. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance may be made for specific loans, 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 relates to loans that are individually classified as impaired. A loan is considered to be impaired when it is probable that the Bank will be unable to collect all principal and interest amounts according to the contractual terms of the loan agreement. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. All commercial and commercial real estate loans are individually evaluated for credit risk at least annually, and all classified loans are individually evaluated for impairment quarterly. Large groups of smaller balance homogenous loans such as residential real estate loans are collectively evaluated for impairment, and accordingly, are not separately evaluated for impairment disclosures unless the individual loan is classified. 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. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Bank determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component of the allowance covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Bank over a rolling two-year period. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects on 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 staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: Construction Loans, Commercial Real Estate Loans, Multi-Family Real Estate Loans, One-to-four Family Real Estate Loans, Commercial & Industrial Loans and Consumer Loans. The risk characteristics of each of the identified portfolio segments are as follows: Construction — If the estimate of value proves to be inaccurate, the value of the building may be insufficient to assure full repayment if liquidation is required. If foreclosure is required on a building before or at completion due to a default, there can be no assurance that all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs will be recovered. Commercial Real Estate — Multi-family Real Estate — One-to-Four Family Real Estate — Commercial & Industrial — Consumer — While management uses available information to recognize losses on loans, future additions to the allowance may be necessary, based on changes in economic conditions or any other factors used in management’s determination. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Interest income on loans is accrued and credited to operations based upon the principal amounts outstanding. Loans are placed on non-accrual when a loan is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more. Delinquent status is based on the contractual terms of the loan. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on such loans are applied as a reduction of the loan principal balance when the collectability of principal, wholly or partially, is in doubt. Interest payments received may be deferred on nonaccrual loans in which the principal balance is deemed to be collectible. Interest income is recognized when all the principal and interest amounts contractually due are brought current and the loans are returned to accrual status. |
Goodwill | Goodwill The goodwill of $9.7 million is associated with a purchase of the prepaid debit card business. The Company performed an impairment assessment, and determined that no impairment of goodwill exists as of December 31, 2017 and 2016. |
Stock-Based Compensation | Stock-Based Compensation |
Concentrations of Credit Risk | Concentrations of Credit Risk |
Premises and Equipment | Premises and Equipment |
Other Investments | Other Investments |
Comprehensive Income | Comprehensive Income |
Restrictions on Cash | Restrictions on Cash |
Earnings per Common Share | Earnings per Common Share |
Income Taxes | Income Taxes A tax position is recognized 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% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Loss Contingencies | Loss Contingencies |
Reclassifications | Reclassifications |
Operating segments | Operating segments |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606)” implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In August 2016, the FASB deferred the effective date of the ASU by one year which means ASU 2014-09 will be effective for the Company on January 1, 2019. Management is in the process of evaluating revenue streams to determine the impact the ASU could have on the Company’s operating results or financial condition. In January 2016, the FASB issued ASU 2016-01, an amendment to Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) Technical Corrections and Improvements to Financial Instruments — Overall — Recognition and Measurement of Financial Assets and Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires companies that lease valuable assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. The amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, however, early adoption is permitted. Under ASU 2016-02, the Company will recognize a right-of-use asset and a lease obligation liability on the consolidated balance sheet, which will increase the Company’s assets and liabilities. The Company is evaluating other potential impact of ASU 2016-02 on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326), which requires the measurement of all expected credit losses for financial assets held at the reporting date be based on historical experience, current condition, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. This guidance also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For the Company, this guidance is effective for fiscal years and interim periods beginning after December 15, 2020. The Company is currently evaluating this guidance to determine the impact on its consolidated financial statements. The Company expects to recognize a one-time cumulative increase to the allowance for loan losses as of the beginning of the reporting period in which the ASU takes effect, but, cannot yet determine the magnitude of the impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates the second step in the goodwill impairment test which requires an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for the Company beginning January 1, 2021, with early adoption permitted for goodwill impairment tests performed after January 1, 2017. Management expects ASU 2017-04 will not have a significant impact on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount as discounts continue to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The guidance includes a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Management expects ASU 2017-08 will not have a significant impact on its consolidated financial statements. On February 14, 2018 the FASB issued final guidance in the form of Accounting Standards Update No. 2018-02, which permits — but does not require — companies to reclassify stranded tax effects caused by 2017 tax reform from accumulated other comprehensive income to retained earnings. Additionally, the ASU requires new disclosures by all companies, whether they opt to do the reclassification or not. Management expects ASU 2018-02 will not have a significant impact on its consolidated financial statements. The amendments in this update are effective fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2018; however, early adoption is permitted. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENT SECURITIES [Abstract] | |
Schedule of Available-for-Sale Securities | At December 31, 2017 Amortized Gross Gross Fair Value Available-for-sale Residential mortgage-backed securities $ 24,856 $ 70 $ (242 ) $ 24,684 Residential collateralized mortgage obligations 2,809 — (103 ) 2,706 Commercial collateralized mortgage obligations 1,581 — (31 ) 1,550 Municipal bond 1,098 11 — 1,109 CRA mutual fund 2,160 — (52 ) 2,108 Total securities available-for-sale $ 32,504 $ 81 $ (428 ) $ 32,157 Held-to-maturity Residential mortgage-backed securities $ 5,403 $ — $ (98 ) $ 5,305 Foreign government securities 25 — — 25 Total securities held-to-maturity $ 5,428 $ — $ (98 ) $ 5,330 At December 31, 2016 Amortized Gross Gross Fair Value Available-for-sale Residential mortgage-backed securities $ 29,152 $ 165 $ (290 ) $ 29,027 Residential collateralized mortgage obligations 5,233 — (130 ) 5,103 Municipal bond 1,122 14 — 1,136 CRA mutual fund 2,115 — (52 ) 2,063 Total securities available-for-sale $ 37,622 $ 179 $ (472 ) $ 37,329 Held-to-maturity Residential mortgage-backed securities $ 6,475 $ — $ (81 ) $ 6,394 Foreign government securities 25 — — 25 Total securities held-to-maturity $ 6,500 $ — $ (81 ) $ 6,419 |
Schedule of Realized Gain (Loss) on Sales and Calls of Securities | Year Ended December 31, 2017 2016 2015 Proceeds $ — $ 2,771 $ — Gross gains $ — $ 40 $ — Gross losses $ — $ — $ — |
Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity | Held to Maturity Available for Sale At December 31, 2017 Amortized Fair Value Amortized Fair Value Within one year $ — $ — $ — $ — One to five years 25 25 — — Five to ten years — — — — Beyond ten years — — 1,098 1,109 Total 25 25 1,098 1,109 Residential mortgage-backed securities $ 5,403 $ 5,305 $ 24,856 $ 24,684 Residential collateralized mortgage obligations — — 2,809 2,706 Commercial collateralized mortgage obligations 1,581 1,550 CRA mutual fund — — 2,160 2,108 Total Securities $ 5,428 $ 5,330 $ 32,504 $ 32,157 Held to Maturity Available for Sale At December 31, 2016 Amortized Fair Value Amortized Fair Value Within one year $ — $ — $ — $ — One to five years 25 25 — — Five to ten years — — — — Beyond ten years — — 1,122 1,136 Total 25 25 1,122 1,136 Residential mortgage-backed securities $ 6,475 $ 6,394 $ 29,152 $ 29,027 Residential collateralized mortgage obligations — — 5,233 5,103 CRA mutual fund — — 2,115 2,063 Total Securities $ 6,500 $ 6,419 $ 37,622 $ 37,329 |
Schedule of Securities with Unrealized Losses | Less than 12 Months 12 months or more Total At December 31, 2017 Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Residential mortgage-backed securities $ 9,194 $ (85 ) $ 7,738 $ (157 ) $ 16,932 $ (242 ) Residential collateralized mortgage obligations — — 2,706 (103 ) 2,706 (103 ) Commercial collateralized mortgage obligations 1,550 (31 ) 1,550 (31 ) CRA mutual fund — — 2,108 (52 ) 2,108 (52 ) Total securities available-for-sale $ 9,194 $ (85 ) $ 14,102 $ (343 ) $ 23,296 $ (428 ) Residential mortgage-backed securities $ 3,260 $ (33 ) $ 2,045 $ (65 ) $ 5,305 $ (98 ) Total held-to-maturity $ 3,260 $ (33 ) $ 2,045 $ (65 ) $ 5,305 $ (98 ) Less than 12 Months 12 months or more Total At December 31, 2016 Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Residential mortgage-backed securities $ 16,733 $ (290 ) $ — $ — $ 16,733 $ (290 ) Residential collateralized mortgage obligations 2,887 (60 ) 2,216 (70 ) 5,103 (130 ) CRA mutual fund — — 2,063 (52 ) 2,063 (52 ) Total securities available-for-sale $ 19,620 $ (350 ) $ 4,279 $ (122 ) $ 23,899 $ (472 ) Residential mortgage-backed securities $ 6,394 $ (81 ) $ — $ — $ 6,394 $ (81 ) Total held-to-maturity $ 6,394 $ (81 ) $ — $ — $ 6,394 $ (81 ) |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Loans Receivable | At December 31, 2017 2016 Real estate Commercial $ 783,745 $ 547,711 Construction 36,960 29,447 Multifamily 190,097 117,373 One-to-four family 25,568 26,480 Total Real Estate 1,036,370 721,011 Commercial and industrial 340,001 315,870 Consumer 44,595 18,825 Total loans 1,420,966 1,055,706 Deferred fees (1,070 ) (1,160 ) Allowance for loan losses (14,887 ) (11,815 ) Net loans at the end of the year $ 1,405,009 $ 1,042,731 |
Schedule of activity in the allowance for loan losses by segment | December 31, 2017 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 5,206 $ 5,364 $ 409 $ 620 $ 109 $ 107 $ 11,815 Provision for loan losses 1,930 4,093 110 536 29 361 7,059 Loans charged-off — (3,879 ) — — — (108 ) (3,987 ) Recoveries — — — — — — — Total ending allowance balance $ 7,136 $ 5,578 $ 519 $ 1,156 $ 138 $ 360 $ 14,887 December 31, 2016 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 3,650 $ 4,254 $ 589 $ 986 $ 444 $ 19 $ 9,942 Provision (credit) for loan 1,556 6,640 (180 ) (366 ) 322 88 8,060 Loans charged-off — (5,530 ) — — (659 ) — (6,189 ) Recoveries — — — — 2 — 2 Total ending allowance balance $ 5,206 $ 5,364 $ 409 $ 620 $ 109 $ 107 $ 11,815 December 31, 2015 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 3,283 $ 3,106 $ 269 $ 778 $ 480 $ — $ 7,916 Provision (credit) for loan 367 1,148 320 208 (47 ) 19 2,015 Loans charged-off — — — — — — — Recoveries — — — — 11 — 11 Total ending allowance balance $ 3,650 $ 4,254 $ 589 $ 986 $ 444 $ 19 $ 9,942 |
Schedule of allowance for loan losses and the recorded investment in loans | At December 31, 2017 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ 9 $ 77 $ 86 Collectively evaluated for impairment 7,136 5,578 519 1,156 129 283 $ 14,801 Total ending allowance balance $ 7,136 $ 5,578 $ 519 $ 1,156 $ 138 $ 360 $ 14,887 Loans: Individually evaluated for impairment $ 2,368 $ — $ — $ — $ 3,566 $ 155 $ 6,089 Collectively evaluated for impairment 781,377 340,001 36,960 190,097 22,002 44,440 1,414,877 Total ending loan balance $ 783,745 $ 340,001 $ 36,960 $ 190,097 $ 25,568 $ 44,595 $ 1,420,966 At December 31, 2016 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ 366 $ — $ — $ 10 $ — $ 376 Collectively evaluated for impairment 5,206 4,998 409 620 99 107 $ 11,439 Total ending allowance balance $ 5,206 $ 5,364 $ 409 $ 620 $ 109 $ 107 $ 11,815 Loans: Individually evaluated for impairment $ 5,504 $ 4,915 $ — $ — $ 1,130 $ — $ 11,549 Collectively evaluated for impairment 542,207 310,955 29,447 117,373 25,350 18,825 1,044,157 Total ending loan balance $ 547,711 $ 315,870 $ 29,447 $ 117,373 $ 26,480 $ 18,825 $ 1,055,706 |
Schedule of impaired by class of loans | Unpaid Recorded Allowance Average Interest With an allowance recorded: Commercial & industrial $ — $ — $ — $ 2,928 $ — One-to-four family 686 556 9 563 21 Consumer 155 155 77 75 8 Total $ 841 $ 711 $ 86 $ 3,566 $ 29 Without an allowance recorded: Commercial & industrial $ — $ — $ — $ 5,367 $ 229 Commercial real estate 2,890 2,368 0 938 43 One-to-four family 3,157 3,010 0 1,547 87 Total $ 6,047 $ 5,378 $ — $ 7,852 $ 359 Unpaid Recorded Allowance Average Interest With an allowance recorded: Commercial & industrial $ 8,783 $ 3,660 $ 366 $ 6,330 $ 207 One-to-four family 694 565 10 565 21 Total $ 9,477 $ 4,225 $ 376 $ 6,895 $ 228 Without an allowance recorded: Commercial real estate $ 5,974 $ 5,504 $ — $ 5,814 $ 267 Commercial & industrial 1,255 1,255 — 1,340 54 One-to-four family 713 565 — 565 23 Total $ 7,942 $ 7,324 $ — $ 7,719 $ 344 Unpaid Recorded Allowance Average Interest With an allowance recorded: Commercial & industrial $ 1,933 $ 1,933 $ 134 $ 1,983 $ 136 One-to-four family 1,694 1,223 293 1,223 21 Total $ 3,627 $ 3,156 $ 427 $ 3,206 $ 157 Without an allowance recorded: Commercial real estate $ 2,155 $ 1,806 $ — $ 1,833 $ 93 Commercial & industrial 1,425 1,425 — 1,510 61 Multi-family 5,971 5,971 — 6,010 235 One-to-four family 713 565 — 565 21 Total $ 10,264 $ 9,767 $ — $ 9,918 $ 410 |
Schedule of Recorded Investment in Non-Accrual Loans | At December 31, 2017 Nonaccrual Loans Past Due Commercial real estate $ 787 $ — Commercial & industrial — — One-to-four family 2,447 — Consumer 155 — Total $ 3,389 $ — At December 31, 2016 Nonaccrual Loans Past Due Commercial & industrial $ 3,660 $ — |
Schedule of aging of the recorded investment in past due loans | At December 31, 2017 30 – 59 Days 60 – 89 Days Greater than Total Past Loans not Total Commercial real estate $ 836 $ — $ 787 $ 1,623 $ 782,122 $ 783,745 Commercial & industrial 85 142 — 227 339,774 340,001 Construction — — — — 36,960 36,960 Multifamily — — — — 190,097 190,097 One-to-four family — — — — 25,568 25,568 Consumer 149 21 155 325 44,270 44,595 Total $ 1,070 $ 163 $ 942 $ 2,175 $ 1,418,791 $ 1,420,966 At December 31, 2016 30 – 59 Days 60 – 89 Days Greater than Total Past Loans not Total Commercial real estate $ — $ 958 $ — $ 958 $ 546,753 $ 547,711 Commercial & industrial 14 3,922 — 3,936 311,934 315,870 Construction — — — — 29,447 29,447 Multifamily — — — — 117,373 117,373 One-to-four family — — — — 26,480 26,480 Consumer — 34 — 34 18,791 18,825 Total $ 14 $ 4,914 $ — $ 4,928 $ 1,050,778 $ 1,055,706 |
Schedule of loans modified as troubled debt restructurings | At December 31, 2016 Number of Loans Pre-Modification Post-Modification Troubled debt restructurings: Commercial Real Estate 1 $ 3,875 $ 3,875 Total 1 $ 3,875 $ 3,875 At December 31, 2015 Number of Loans Pre-Modification Post-Modification Troubled debt restructurings: Commercial & Industrial 1 $ 1,933 $ 1,933 Total 1 $ 1,933 $ 1,933 |
Schedule of risk category of loans by class of loans | At December 31, 2017 Pass Special Substandard Doubtful Total Commercial real estate $ 777,410 $ 4,369 $ 1,966 $ — $ 783,745 Commercial & industrial 331,775 8,226 — — 340,001 Construction 36,960 — — — 36,960 Multifamily 190,097 — — — 190,097 Total $ 1,336,242 $ 12,595 $ 1,966 $ — $ 1,350,803 At December 31, 2016 Pass Special Substandard Doubtful Total Commercial real estate $ 542,206 $ 4,293 $ 1,212 $ — $ 547,711 Commercial & industrial 309,295 2,915 3,660 — 315,870 Construction 29,447 — — — 29,447 Multifamily 117,373 — — — 117,373 Total $ 998,321 $ 7,208 $ 4,872 $ — $ 1,010,401 |
Schedule of recorded investment based on performance status | At December 31, 2017 Performing Non-Performing Total One-to-four family $ 23,121 $ 2,447 $ 25,568 Consumer 44,440 155 44,595 Total $ 67,561 $ 2,602 $ 70,163 At December 31, 2016 Performing Non-Performing Total One-to-four family $ 26,480 $ — $ 26,480 Consumer 18,825 — 18,825 Total $ 45,305 $ — $ 45,305 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | Year Ended December 31, 2017 2016 Furniture and Equipment (useful life of 3 to 7 years) $ 7,376 $ 5,973 Leasehold Improvements (useful life of 3 to 10 years) 10,820 10,012 Total Premises and Equipment 18,196 15,985 Less accumulated depreciation and amortization (11,928 ) (10,950 ) Total Premises and Equipment, net $ 6,268 $ 5,035 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Schedule of deposits | At December 31, 2017 2016 Core Deposits Noninterest bearing demand accounts $ 812,497 $ 403,402 Money market 484,589 482,393 Savings accounts 27,024 17,472 Total core deposits 1,324,110 903,267 Time Deposits Time deposits under $100,000 73,437 69,188 Time deposits $100,000 and over 6,808 21,325 Total deposits $ 1,404,355 $ 993,780 |
Schedule of time deposits maturities | The following are scheduled maturities of time deposits as of December 31, 2017 (dollars in thousands): 2018 $ 63,245 2019 16,219 2020 68 2021 283 2022 430 Total time deposits $ 80,245 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Advances from Federal Home Loan Banks [Abstract] | |
Schedule of advances from the FHLB | Year Ending December 31, 2017 2016 Maturing in 2018, fixed rate at rates from 1.21% to 3.23%, weighted averaging 1.53% $ 42,198 $ — Maturing 2017 through 2018, fixed rate at rates from 0.77% to 3.23%, weighted averaging 0.95% 78,418 Total $ 42,198 $ 78,418 |
Schedule of FHLB advances that mature over the next five years | Principal 2018 $ 42,198 2019 — 2020 — 2021 — 2022 — Total $ 42,198 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income taxes | Year Ended December 31, (in thousands) 2017 2016 2015 Current Federal $ 7,920 $ 3,466 $ 2,873 State and local 2,499 492 141 Total current 10,419 3,958 3,014 Deferred Federal 1,045 (795 ) (622 ) State and local (255 ) (118 ) 167 Total deferred 790 (913 ) (455 ) Total income tax expense $ 11,209 $ 3,045 $ 2,559 |
Schedule of deferred tax assets and liabilities | At December 31, 2017 2016 Deferred tax assets: Allowance for loan losses $ 4,583 $ 4,990 Nonaccrual interest income 28 159 Off balance sheet reserves 110 68 Restricted stock 153 165 Tangible asset 23 36 Non-Qualified stock options 183 251 Unrealized loss on securities available for sale 86 118 Total gross deferred tax assets 5,166 5,787 Deferred tax liabilities: Depreciation and amortization 574 427 Prepaid asset 159 150 Total gross deferred tax liabilities 733 577 Net deferred tax asset, included in other assets $ 4,433 $ 5,210 |
Schedule of reconciliation of statutory federal income tax rate | For the year ended December 31, 2017 2016 2015 Tax expense/ Rate Tax expense/ Rate Tax expense/ Rate Pretax income at statutory rates $ 8,252 35.00 % $ 2,740 34.00 % $ 2,322 34.00 % State and local taxes, net of federal income 1,459 6.19 247 3.10 204 3.00 Nondeductible expenses 21 0.09 19 0.20 13 0.20 Stock options (113 ) (0.48 ) 49 0.60 16 0.20 Tax-exempt income, net (10 ) (0.04 ) (10 ) (0.10 ) — — Impact of U.S. tax reform (the Tax Act) 1,581 6.71 — — — — Other 19 0.08 — — 4 0.10 Effective income tax expense/rate $ 11,209 47.55 % $ 3,045 37.80 % $ 2,559 37.50 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments required under all non-cancellable operating leases | Year Ending December 31, 2018 $ 2,753 2019 2,754 2020 2,737 2021 2,201 2022 2,129 Thereafter (and through 2035) 6,754 $ 19,328 |
FAIR VALUE OF FINANCIAL INSTR36
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Fair Value Measurement 2017 Quoted Prices Significant Significant Assets: Residential mortgage-backed securities $ — $ 24,684 $ — Residential collateralized mortgage obligation — 2,706 — Commercial collateralized mortgage obligations 1,550 Municipal bond — 1,109 — CRA Mutual Fund 2,108 — — Fair Value Measurement 2016 Quoted Prices Significant Significant Assets: Residential mortgage-backed securities $ — $ 29,027 $ — Residential collateralized mortgage obligation — 5,103 — Municipal bond — 1,136 — CRA Mutual Fund 2,063 — — |
Schedule of assets and liabilities measured on a non-recurring basis | Fair Value Measurements Using: Total at Quoted Prices Significant Significant Impaired loans: Commercial and industrial loan $ 3,294 $ — $ — $ 3,294 |
Schedule of quantitative information about level 3 fair value measurements for assets | Fair Value Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2016 Impaired loans – Commercial and industrial loan $ 3,294 Market approach Adjustments for the difference in comparable sales 10.00 % |
Schedule of carrying amount and estimated fair values of financial instruments | At December 31, 2017 Fair Value Measurement Using: Carrying Quoted Significant Significant Total Fair Financial assets: Cash and due from banks $ 261,231 $ 261,231 $ — $ — $ 261,231 Securities available for sale 32,157 2,108 30,049 — 32,157 Securities held to maturity 5,428 — 5,330 — 5,330 Loans, net 1,405,009 — — 1,410,860 1,410,860 Other investments Federal Reserve Bank stock 3,911 N/A N/A N/A N/A Federal Home Loan Bank stock 2,766 N/A N/A N/A N/A SBA Loan Fund 5,000 N/A N/A N/A N/A Certificates of deposit 2,000 2,000 — — 2,000 Accrued interest receivable 4,421 11 116 4,294 4,421 Financial liabilities: Deposits without stated maturities $ 1,324,110 $ 1,324,110 $ — $ — 1,324,110 Deposits with stated maturities 80,245 — 80,079 — 80,079 FHLB Advances 42,198 — 42,188 — 42,188 Trust preferred securities payable 20,620 — 19,997 19,997 Subordinated debt, net of issurance cost 24,489 — 25,500 — 25,500 Accrued interest payable 749 27 258 464 749 At December 31, 2016 Fair Value Measurement Using: Carrying Quoted Significant Significant Total Fair Financial assets: Cash and due from banks $ 82,931 $ 82,931 $ — $ — $ 82,931 Securities available for sale 37,329 2,063 35,266 . 37,329 Securities held to maturity 6,500 — 6,419 — 6,419 Loans, net 1,042,731 — — 1,059,333 1,059,333 Other investments 12,588 N/A N/A N/A N/A Accrued interest receivable 2,735 — 157 2,578 2,735 Financial liabilities: Deposits without stated maturities $ 903,267 $ 903,267 $ — $ — $ 903,267 Deposits with stated maturities 90,513 — 90,559 — 90,559 FHLB Advances 78,418 — 78,872 — 78,872 Trust preferred securities payable 20,620 — — 19,998 19,998 Accrued interest payable 227 19 62 146 227 |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
STOCK COMPENSATION PLAN [Abstract] | |
Schedule of fair value of options granted during 2015 | 2015 Risk-free interest rate 12.19% Expected term 10 years Dividend yield 0% |
Schedule of status of the stock option plan | 2017 2016 Number of Weighted Number of Weighted Outstanding, beginning of year 276,500 $ 19.97 289,000 $ 20.41 Granted — — — — Exercised (4,503 ) 30.00 — — Cancelled/forfeited (497 ) 30.00 (12,500 ) 30.00 Outstanding, end of year 271,500 $ 19.79 276,500 $ 19.97 Options vested and exercisable at year-end 271,500 $ 19.79 276,500 $ 19.97 Weighted average fair value of options granted during the year $ — $ — Weighted average remaining contractual life (years) 5.57 6.25 |
Schedule of summary of stock options outstanding | Options Outstanding Range of Average Exercise Prices Number Weighted Weighted $10 – 20 231,000 6.38 18.00 $21 – 30 40,500 0.95 30.00 $10 – 30 271,500 5.57 19.79 |
Schedule of non-vested restricted stock awards | Year Ended December 31, 2017 Number of Weighted Outstanding, beginning of year 64,638 $ 20.42 Granted 31,606 $ 21.00 Forfeited (3,167 ) $ 18.00 Vested (16,973 ) $ 18.00 Outstanding at December 31, 2017 76,104 $ 20.61 |
FINANCIAL INSTRUMENTS WITH OF38
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK [Abstract] | |
Schedule of off-balance-sheet financial instruments | At December 31, 2017 2016 Fixed Rate Variable Rate Fixed Rate Variable Rate Undrawn lines of credit $ 39,651 $ 76,008 $ 60,984 $ 9,890 Letters of credit 23,741 — 9,808 — $ 63,392 $ 76,008 $ 70,792 $ 9,890 |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of requirements for minimum capital adequacy and classification | Actual For Capital Adequacy To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio At December 31, 2017 Total capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 287,039 19.9 % $ 115,636 ≥ 8.0 % N/A N/A Metropolitan Commercial Bank $ 280,317 19.4 % $ 115,523 ≥ 8.0 % $ 144,403 ≥ 10.0 % Tier 1 common equity (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 221,803 15.3 % $ 65,045 ≥ 4.5 % N/A N/A Metropolitan Commercial Bank $ 265,076 18.4 % $ 64,981 ≥ 4.5 % $ 93,862 ≥ 6.5 % Tier 1 capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 247,305 17.1 % $ 86,726 ≥ 6.0 % N/A N/A Metropolitan Commercial Bank $ 265,076 18.4 % $ 86,642 ≥ 6.0 % $ 115,523 ≥ 8.0 % Tier 1 capital (to average assets) Metropolitan Bank Holding Corp. $ 247,305 13.7 % $ 72,206 ≥ 4.0 % N/A N/A Metropolitan Commercial Bank $ 265,076 14.7 % $ 72,099 ≥ 4.0 % $ 90,124 ≥ 5.0 % At December 31, 2016 Total capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 131,895 12.5 % $ 84,733 ≥ 8.0 % N/A N/A Metropolitan Commercial Bank $ 130,949 12.4 % $ 84,619 ≥ 8.0 % $ 105,774 ≥ 10.0 % Tier 1 common equity (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 114,421 10.8 % $ 47,662 ≥ 4.5 % N/A N/A Metropolitan Commercial Bank $ 118,977 11.3 % $ 47,598 ≥ 4.5 % $ 68,753 ≥ 6.5 % Tier 1 capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 119,923 11.3 % $ 63,549 ≥ 6.0 % N/A N/A Metropolitan Commercial Bank $ 118,977 11.3 % $ 63,465 ≥ 6.0 % $ 84,619 ≥ 8.0 % Tier 1 capital (to average assets) Metropolitan Bank Holding Corp. $ 119,923 10.5 % $ 45,742 ≥ 4.0 % N/A N/A Metropolitan Commercial Bank $ 118,977 10.4 % $ 45,703 ≥ 4.0 % $ 57,128 ≥ 5.0 % |
Schedule of actual capital amounts and ratios compared to the requirements for minimum capital adequacy plus capital conservation buffer implemented | Actual Minimum for Capital Adequacy Amount Ratio Amount Ratio December 31, 2017: Total capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 287,039 19.9 % N/A N/A Metropolitan Commercial Bank $ 280,317 19.4 % $ 133,573 ≥ 9.3 % Tier 1 common equity (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 221,803 15.3 % N/A N/A Metropolitan Commercial Bank $ 265,076 18.4 % $ 83,032 ≥ 5.8 % Tier 1 capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 247,305 17.1 % N/A N/A Metropolitan Commercial Bank $ 265,076 18.4 % $ 104,692 ≥ 7.3 % Tier 1 capital (to average assets) Metropolitan Bank Holding Corp. $ 247,305 13.7 % N/A N/A Metropolitan Commercial Bank $ 265,076 14.7 % $ 72,099 ≥ 4.0 % Actual Minimum for Capital Adequacy Amount Ratio Amount Ratio December 31, 2016: Total capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 131,895 12.5 % N/A N/A Metropolitan Commercial Bank $ 130,949 12.4 % $ 91,230 ≥ 8.6 % Tier 1 common equity (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 114,421 10.8 % N/A N/A Metropolitan Commercial Bank $ 118,977 11.3 % $ 54,209 ≥ 5.1 % Tier 1 capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 119,923 11.3 % N/A N/A Metropolitan Commercial Bank $ 118,977 11.3 % $ 70,075 ≥ 6.6 % Tier 1 capital (to average assets) Metropolitan Bank Holding Corp. $ 119,923 10.5 % N/A N/A Metropolitan Commercial Bank $ 118,977 10.4 % $ 45,703 ≥ 4.0 % |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Year Ended December 31, 2017 2016 2015 Basic Net income per consolidated statements of income $ 12,369 $ 5,013 $ 4,269 Less: Dividends paid to preferred shareholders — (3,420 ) — Less: Earnings allocated to participating securities (183 ) (30 ) (85 ) Net income available to common stockholder $ 12,186 $ 1,563 $ 4,184 Weighted average common shares outstanding including participating securities 5,147,149 3,708,734 2,775,152 Less: Weighted average participating securities (76,104 ) (68,708 ) (55,347 ) Weighted average common shares outstanding 5,071,045 3,640,026 2,719,805 Basic earnings per common share $ 2.40 $ 0.43 $ 1.54 Diluted Net income allocated to common shareholders $ 12,186 $ 1,563 $ 4,184 Weighted average common shares outstanding for basic earnings per common share 5,071,045 3,640,026 2,719,805 Add: Dilutive effects of assumed exercise of stock options 131,189 33,000 — Average shares and dilutive potential common shares 5,202,234 3,673,026 2,719,805 Dilutive earnings per commons share $ 2.34 $ 0.43 $ 1.54 |
PARENT COMPANY FINANCIAL INFO41
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of condensed balance sheets | Condensed Balance Sheets At December 31, 2017 2016 Assets Cash and due from banks $ 6,761 $ 818 Loans, net of allowance for loan losses 776 776 Investments 620 620 Investment in subsidiary bank, at equity 274,190 128,671 Other assets 596 11 Total assets $ 282,943 $ 130,896 Liabilities and Stockholders’ Equity Trust preferred securities payable 20,620 20,620 Subordinated debt payable, net of issuance costs 24,489 — Other liabilities 950 785 Total liabilities 46,059 21,405 Stockholders’ equity: Preferred stock 3 3 Common stock 81 45 Surplus 211,145 96,116 Retained earnings 25,861 13,492 Accumulated other comprehensive loss, net of tax (206 ) (165 ) Total equity 236,884 109,491 Total liabilities and stockholders’ equity $ 282,943 $ 130,896 |
Schedule of condensed statements of income | Condensed Statements of Income Year Ended December 31, 2017 2016 2015 Income: Loan $ 17 $ 6 $ — Securities and money market funds — 19 25 Total interest income 17 25 25 Interest expense: Trust preferred securities payable 636 539 455 Subordinated debt interest expense 1,322 — — Total interest expense 1,958 539 455 Net interest expense (1,941 ) (514 ) (430 ) Provision for loan losses — 4 — Net interest income after provision for loan losses (1,941 ) (518 ) (430 ) Other expense 33 — — Loss before undistributed earnings of subsidiary bank (1,974 ) (518 ) (430 ) Equity in undistributed earnings of subsidiary bank 13,560 5,319 4,526 Income before income tax expense 11,586 4,801 4,096 Income tax benefit (783 ) (212 ) (173 ) Net income $ 12,369 $ 5,013 $ 4,269 |
Schedule of condensed statement of cash flows | Condensed Statement of Cash Flows Year Ended December 31, 2017 2016 2015 Net income $ 12,369 $ 5,013 $ 4,269 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Undistributed earnings of subsidiary bank (13,560 ) (5,319 ) (4,526 ) Amortization of subordinated debt issuance costs 46 — — Provision for loan losses — 4 — Stock based compensation expense 412 — — Decrease (increase) in other assets (585 ) 25 (29 ) Increase (decrease) in other liabilities 165 415 26 Net cash provided by (used in) operating activities (1,153 ) 138 (260 ) Cash Flows From Investing Activities: Investments in subsidiary bank (132,000 ) (26,000 ) (11,400 ) Loan to related party — (780 ) — Net cash used in Investing activities (132,000 ) (26,780 ) (11,400 ) Cash Flows From Financing Activities: Proceeds from issuance of common stock, net 114,773 28,368 12,606 Repurchase of common stock for exercise of stock options and tax withholdings for restricted stock vestings (255 ) — — Proceeds from issuance of preferred stock, net — 5,503 — Purchase and retirement of preferred stock — (1,400 ) — Redemption of preferred stock, net — (2,672 ) — Proceeds from exercise of stock options 135 — — Proceeds from issuance of subordinated debt, net of issuance cost 24,443 — — Payment of preferred stock dividend — (3,420 ) — Net cash provided by financing activities 139,096 26,379 12,606 Net (decrease) increase in cash and cash equivalents 5,943 (263 ) 946 Cash and cash equivalents, beginning of year 818 1,081 135 Cash and cash equivalents, end of year $ 6,761 $ 818 $ 1,081 |
ACCUMULATED OTHER COMPREHENSI42
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
AOCI Attributable to Parent [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Year Ended December 31, 2017 2016 2015 Beginning balance $ (165 ) $ 16 $ 129 Net change in other comprehensive income (loss) before reclassification, net of tax (41 ) (158 ) (113 ) Amounts reclassified from accumulated other comprehensive income, net of tax — (23 ) — Net current period other comprehensive loss (41 ) (181 ) (113 ) Ending balance $ (206 ) $ (165 ) $ 16 |
Schedule of reclassifications out of accumulated other comprehensive income (loss) | Year Ended December 31, Affected line item in the Consolidated 2017 2016 2015 Realized gain on sale of available for sale securities $ — $ 40 $ — Net gains on securities transactions Income tax expense — $ (17 ) — Income tax expense Total reclassifications, net of income tax $ — $ 23 $ — |
UNAUDITED QUARTERLY FINANCIAL43
UNAUDITED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of consolidated quarterly financial data | Selected Consolidated Quarterly Financial Data (dollars, except per share amounts, in thousands) 2017 Quarter Ended December 31 September 30 June 30 March 31 Interest income $ 17,864 $ 16,401 $ 14,047 $ 12,441 Interest expense 2,293 2,437 2,281 1,660 Net interest income 15,571 13,964 11,766 10,781 Provision for loan losses 3,499 1,200 1,790 570 Net interest income after provision for loan losses 12,072 12,764 9,976 10,211 Non-interest income 6,249 2,233 1,573 1,245 Non-interest expense 9,780 8,590 7,141 7,234 Income before income taxes 8,541 6,407 4,408 4,222 Income tax expense 5,216 2,562 1,757 1,674 Net income $ 3,325 $ 3,845 $ 2,651 $ 2,548 Basic earnings per share $ 0.50 $ 0.83 $ 0.57 $ 0.55 Diluted earnings per share $ 0.49 $ 0.82 $ 0.57 $ 0.55 2016 Quarter Ended December 31 September 30 June 30 March 31 Interest income $ 11,919 $ 11,337 $ 10,970 $ 9,929 Interest expense 1,492 1,519 1,598 1,480 Net interest income 10,427 9,818 9,372 8,449 Provision for loan losses 5,900 350 1,250 560 Net interest income after provision for loan losses 4,527 9,468 8,122 7,889 Non-interest income 1,288 1,321 1,658 1,156 Non-interest expense 6,199 8,267 6,662 6,243 Income before income taxes (384 ) 2,522 3,118 2,802 Income tax expense (433 ) 1,072 1,268 1,138 Net income $ 49 $ 1,450 $ 1,850 $ 1,664 Basic earnings per share $ 0.01 $ (0.50 ) $ 0.59 $ 0.53 Diluted earnings per share (1) $ 0.01 $ (0.50 ) $ 0.58 $ 0.53 (1) The EPS for September 30, 2016 was negative despite having a positive Net Income due to dividends paid out to preferred shareholders in that quarter. |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Goodwill | $ 9,733,000 | $ 9,733,000 |
Investment in FRB | 6,700,000 | 6,700,000 |
Investment in FHLB | 7,600,000 | 7,600,000 |
Investment in SBA Loan fund | 5,000,000 | 5,000,000 |
Investment in certificates of deposit with maturities greater than three months | 2,000,000 | |
Deposit with Federal Reserve Bank | 230,300,000 | 57,300,000 |
Cash pledged as collateral | 662,000 | 659,000 |
Escrow deposit | $ 6,400,000 | $ 3,600,000 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of Available-for-Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 32,504 | $ 37,622 |
Gross Unrealized Gains | 81 | 179 |
Gross Unrealized Losses | (428) | (472) |
Fair Value | 32,157 | 37,329 |
Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 24,856 | 29,152 |
Gross Unrealized Gains | 70 | 165 |
Gross Unrealized Losses | (242) | (290) |
Fair Value | 24,684 | 29,027 |
Residential collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,809 | 5,233 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (103) | (130) |
Fair Value | 2,706 | 5,103 |
Commercial collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,581 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (31) | |
Fair Value | 1,550 | |
Municipal bond | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,098 | 1,122 |
Gross Unrealized Gains | 11 | 14 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,109 | 1,136 |
CRA mutual fund | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,160 | 2,115 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (52) | (52) |
Fair Value | $ 2,108 | $ 2,063 |
INVESTMENT SECURITIES (Schedu46
INVESTMENT SECURITIES (Schedule of Held-to-Maturity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Total Securities | $ 5,428 | $ 6,500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (98) | (81) |
Fair Value | 5,330 | 6,419 |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total Securities | 5,403 | 6,475 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (98) | (81) |
Fair Value | 5,305 | 6,394 |
Foreign government securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total Securities | 25 | 25 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 25 | $ 25 |
INVESTMENT SECURITIES (Schedu47
INVESTMENT SECURITIES (Schedule of Realized Gain (Loss) on Sales and Calls of Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INVESTMENT SECURITIES [Abstract] | |||
Proceeds | $ 0 | $ 2,771 | $ 0 |
Gross gains | 0 | 40 | 0 |
Gross losses | $ 0 | $ 0 | $ 0 |
INVESTMENT SECURITIES (Schedu48
INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Within one year | $ 0 | $ 0 |
One to five years | 25 | 25 |
Five to ten years | 0 | 0 |
Beyond ten years | 0 | 0 |
Amortized Cost, total | 25 | 25 |
Total Securities | 5,428 | 6,500 |
Fair Value | ||
Within one year | 0 | 0 |
One to five years | 25 | 25 |
Five to ten years | 0 | 0 |
Beyond ten years | 0 | 0 |
Fair Value, total | 25 | 25 |
Total Securities | 5,330 | 6,419 |
Amortized Cost | ||
Within one year | 0 | 0 |
One to five years | 0 | 0 |
Five to ten years | 0 | 0 |
Beyond ten years | 1,098 | 1,122 |
Amortized Cost, total | 1,098 | 1,122 |
Total Securities | 32,504 | 37,622 |
Fair Value | ||
Within one year | 0 | 0 |
One to five years | 0 | 0 |
Five to ten years | 0 | 0 |
Beyond ten years | 1,109 | 1,136 |
Fair Value, total | 1,109 | 1,136 |
Total Securities | 32,157 | 37,329 |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost, Held to maturity | 5,403 | 6,475 |
Total Securities | 5,403 | 6,475 |
Fair Value | ||
Fair Value, Held to maturity | 5,305 | 6,394 |
Total Securities | 5,305 | 6,394 |
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 24,856 | 29,152 |
Fair Value | ||
Fair Value, Available-for-sale Securities | 24,684 | 29,027 |
Residential collateralized mortgage obligations | ||
Amortized Cost | ||
Amortized Cost, Held to maturity | 0 | 0 |
Fair Value | ||
Fair Value, Held to maturity | 0 | 0 |
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 2,809 | 5,233 |
Fair Value | ||
Fair Value, Available-for-sale Securities | 2,706 | 5,103 |
Commercial collateralized mortgage obligations | ||
Amortized Cost | ||
Amortized Cost, Held to maturity | 0 | |
Fair Value | ||
Fair Value, Held to maturity | 0 | |
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 1,581 | |
Fair Value | ||
Fair Value, Available-for-sale Securities | 1,550 | |
CRA mutual fund | ||
Amortized Cost | ||
Amortized Cost, Held to maturity | 0 | 0 |
Fair Value | ||
Fair Value, Held to maturity | 0 | 0 |
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 2,160 | 2,115 |
Fair Value | ||
Fair Value, Available-for-sale Securities | $ 2,108 | $ 2,063 |
INVESTMENT SECURITIES (Schedu49
INVESTMENT SECURITIES (Schedule of Securities with Unrealized Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | $ 9,194 | $ 19,620 |
12 months or more, Estimated Fair Value | 14,102 | 4,279 |
Total, Estimated Fair Value | 23,296 | 23,899 |
Less than 12 Months, Unrealized Losses | (85) | (350) |
12 months or more, Unrealized Losses | (343) | (122) |
Total, Unrealized Losses | (428) | (472) |
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 3,260 | 6,394 |
12 months or more, Estimated Fair Value | 2,045 | 0 |
Total, Estimated Fair Value | 5,305 | 6,394 |
Less than 12 Months, Unrealized Losses | (33) | (81) |
12 months or more, Unrealized Losses | (65) | 0 |
Total, Unrealized Losses | (98) | (81) |
Residential mortgage-backed securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 9,194 | 16,733 |
12 months or more, Estimated Fair Value | 7,738 | 0 |
Total, Estimated Fair Value | 16,932 | 16,733 |
Less than 12 Months, Unrealized Losses | (85) | (290) |
12 months or more, Unrealized Losses | (157) | 0 |
Total, Unrealized Losses | (242) | (290) |
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 3,260 | 6,394 |
12 months or more, Estimated Fair Value | 2,045 | 0 |
Total, Estimated Fair Value | 5,305 | 6,394 |
Less than 12 Months, Unrealized Losses | (33) | (81) |
12 months or more, Unrealized Losses | (65) | 0 |
Total, Unrealized Losses | (98) | (81) |
Residential collateralized mortgage obligations | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 0 | 2,887 |
12 months or more, Estimated Fair Value | 2,706 | 2,216 |
Total, Estimated Fair Value | 2,706 | 5,103 |
Less than 12 Months, Unrealized Losses | 0 | (60) |
12 months or more, Unrealized Losses | (103) | (70) |
Total, Unrealized Losses | (103) | (130) |
Commercial collateralized mortgage obligations | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 0 | |
12 months or more, Estimated Fair Value | 1,550 | |
Total, Estimated Fair Value | 1,550 | |
Less than 12 Months, Unrealized Losses | 0 | |
12 months or more, Unrealized Losses | (31) | |
Total, Unrealized Losses | (31) | |
CRA mutual fund | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 0 | 0 |
12 months or more, Estimated Fair Value | 2,108 | 2,063 |
Total, Estimated Fair Value | 2,108 | 2,063 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
12 months or more, Unrealized Losses | (52) | (52) |
Total, Unrealized Losses | $ (52) | $ (52) |
INVESTMENT SECURITIES (Detail T
INVESTMENT SECURITIES (Detail Textuals) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
INVESTMENT SECURITIES [Abstract] | |
Tax provision on net realized gains on securities and calls | $ 17,000 |
LOANS (Schedule of Loan Receiva
LOANS (Schedule of Loan Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 1,420,966 | $ 1,055,706 | ||
Deferred fees | (1,070) | (1,160) | ||
Allowance for loan losses | (14,887) | (11,815) | $ (9,942) | $ (7,916) |
Net loans | 1,405,009 | 1,042,731 | ||
Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 1,036,370 | 721,011 | ||
Real estate | Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 783,745 | 547,711 | ||
Allowance for loan losses | (7,136) | (5,206) | (3,650) | (3,283) |
Real estate | Construction | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 36,960 | 29,447 | ||
Allowance for loan losses | (519) | (409) | (589) | (269) |
Real estate | Multifamily | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 190,097 | 117,373 | ||
Allowance for loan losses | (1,156) | (620) | (986) | (778) |
Real estate | One to four family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 25,568 | 26,480 | ||
Allowance for loan losses | (138) | (109) | (444) | (480) |
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 340,001 | 315,870 | ||
Allowance for loan losses | (5,578) | (5,364) | (4,254) | (3,106) |
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 44,595 | 18,825 | ||
Allowance for loan losses | $ (360) | $ (107) | $ (19) | $ 0 |
LOANS (Schedule of Activity in
LOANS (Schedule of Activity in the Allowance for Loan Losses by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | $ 11,815 | $ 9,942 | $ 11,815 | $ 9,942 | $ 7,916 | ||||||
Provision for loan losses | $ 3,499 | $ 1,200 | $ 1,790 | 570 | $ 5,900 | $ 350 | $ 1,250 | 560 | 7,059 | 8,060 | 2,015 |
Loans charged-off | (3,987) | (6,189) | 0 | ||||||||
Recoveries | 0 | 2 | 11 | ||||||||
Total ending allowance balance | 14,887 | 11,815 | 14,887 | 11,815 | 9,942 | ||||||
Real estate | Commercial | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 5,206 | 3,650 | 5,206 | 3,650 | 3,283 | ||||||
Provision for loan losses | 1,930 | 1,556 | 367 | ||||||||
Loans charged-off | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Total ending allowance balance | 7,136 | 5,206 | 7,136 | 5,206 | 3,650 | ||||||
Real estate | Construction | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 409 | 589 | 409 | 589 | 269 | ||||||
Provision for loan losses | 110 | (180) | 320 | ||||||||
Loans charged-off | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Total ending allowance balance | 519 | 409 | 519 | 409 | 589 | ||||||
Real estate | Multifamily | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 620 | 986 | 620 | 986 | 778 | ||||||
Provision for loan losses | 536 | (366) | 208 | ||||||||
Loans charged-off | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Total ending allowance balance | 1,156 | 620 | 1,156 | 620 | 986 | ||||||
Real estate | One to four family | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 109 | 444 | 109 | 444 | 480 | ||||||
Provision for loan losses | 29 | 322 | (47) | ||||||||
Loans charged-off | 0 | (659) | 0 | ||||||||
Recoveries | 0 | 2 | 11 | ||||||||
Total ending allowance balance | 138 | 109 | 138 | 109 | 444 | ||||||
Commercial and industrial | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 5,364 | 4,254 | 5,364 | 4,254 | 3,106 | ||||||
Provision for loan losses | 4,093 | 6,640 | 1,148 | ||||||||
Loans charged-off | (3,879) | (5,530) | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Total ending allowance balance | 5,578 | 5,364 | 5,578 | 5,364 | 4,254 | ||||||
Consumer | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | $ 107 | $ 19 | 107 | 19 | 0 | ||||||
Provision for loan losses | 361 | 88 | 19 | ||||||||
Loans charged-off | (108) | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Total ending allowance balance | $ 360 | $ 107 | $ 360 | $ 107 | $ 19 |
LOANS (Schedule of Loans by Imp
LOANS (Schedule of Loans by Impairment Method) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | $ 86 | $ 376 | ||
Collectively evaluated for impairment, Allowance for loan losses | 14,801 | 11,439 | ||
Total ending allowance balance | 14,887 | 11,815 | $ 9,942 | $ 7,916 |
Individually evaluated for impairment, Loans | 6,089 | 11,549 | ||
Collectively evaluated for impairment, Loans | 1,414,877 | 1,044,157 | ||
Total ending loan balance | 1,420,966 | 1,055,706 | ||
Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total ending loan balance | 1,036,370 | 721,011 | ||
Real estate | Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 0 | 0 | ||
Collectively evaluated for impairment, Allowance for loan losses | 7,136 | 5,206 | ||
Total ending allowance balance | 7,136 | 5,206 | 3,650 | 3,283 |
Individually evaluated for impairment, Loans | 2,368 | 5,504 | ||
Collectively evaluated for impairment, Loans | 781,377 | 542,207 | ||
Total ending loan balance | 783,745 | 547,711 | ||
Real estate | Construction | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 0 | 0 | ||
Collectively evaluated for impairment, Allowance for loan losses | 519 | 409 | ||
Total ending allowance balance | 519 | 409 | 589 | 269 |
Individually evaluated for impairment, Loans | 0 | 0 | ||
Collectively evaluated for impairment, Loans | 36,960 | 29,447 | ||
Total ending loan balance | 36,960 | 29,447 | ||
Real estate | Multifamily | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 0 | 0 | ||
Collectively evaluated for impairment, Allowance for loan losses | 1,156 | 620 | ||
Total ending allowance balance | 1,156 | 620 | 986 | 778 |
Individually evaluated for impairment, Loans | 0 | 0 | ||
Collectively evaluated for impairment, Loans | 190,097 | 117,373 | ||
Total ending loan balance | 190,097 | 117,373 | ||
Real estate | One to four family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 9 | 10 | ||
Collectively evaluated for impairment, Allowance for loan losses | 129 | 99 | ||
Total ending allowance balance | 138 | 109 | 444 | 480 |
Individually evaluated for impairment, Loans | 3,566 | 1,130 | ||
Collectively evaluated for impairment, Loans | 22,002 | 25,350 | ||
Total ending loan balance | 25,568 | 26,480 | ||
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 0 | 366 | ||
Collectively evaluated for impairment, Allowance for loan losses | 5,578 | 4,998 | ||
Total ending allowance balance | 5,578 | 5,364 | 4,254 | 3,106 |
Individually evaluated for impairment, Loans | 0 | 4,915 | ||
Collectively evaluated for impairment, Loans | 340,001 | 310,955 | ||
Total ending loan balance | 340,001 | 315,870 | ||
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 77 | 0 | ||
Collectively evaluated for impairment, Allowance for loan losses | 283 | 107 | ||
Total ending allowance balance | 360 | 107 | $ 19 | $ 0 |
Individually evaluated for impairment, Loans | 155 | 0 | ||
Collectively evaluated for impairment, Loans | 44,440 | 18,825 | ||
Total ending loan balance | $ 44,595 | $ 18,825 |
LOANS (Schedule of Impaired by
LOANS (Schedule of Impaired by Class of Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
With an allowance recorded: | |||
Unpaid Principal Balance | $ 841 | $ 9,477 | $ 3,627 |
Recorded Investment | 711 | 4,225 | 3,156 |
Allowance for Loan Losses Allocated | 86 | 376 | 427 |
Average Recorded Investment | 3,566 | 6,895 | 3,206 |
Interest Income Recognized | 29 | 228 | 157 |
With no related allowance recorded: | |||
Unpaid Principal Balance | 6,047 | 7,942 | 10,264 |
Recorded Investment | 5,378 | 7,324 | 9,767 |
Average Recorded Investment | 7,852 | 7,719 | 9,918 |
Interest Income Recognized | 359 | 344 | 410 |
Real estate | Commercial | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 2,890 | 5,974 | 2,155 |
Recorded Investment | 2,368 | 5,504 | 1,806 |
Average Recorded Investment | 938 | 5,814 | 1,833 |
Interest Income Recognized | 43 | 267 | 93 |
Real estate | Multifamily | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 5,971 | ||
Recorded Investment | 5,971 | ||
Average Recorded Investment | 6,010 | ||
Interest Income Recognized | 235 | ||
Real estate | One to four family | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 686 | 694 | 1,694 |
Recorded Investment | 556 | 565 | 1,223 |
Allowance for Loan Losses Allocated | 9 | 10 | 293 |
Average Recorded Investment | 563 | 565 | 1,223 |
Interest Income Recognized | 21 | 21 | 21 |
With no related allowance recorded: | |||
Unpaid Principal Balance | 3,157 | 713 | 713 |
Recorded Investment | 3,010 | 565 | 565 |
Average Recorded Investment | 1,547 | 565 | 565 |
Interest Income Recognized | 87 | 23 | 21 |
Commercial and industrial | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 0 | 8,783 | 1,933 |
Recorded Investment | 0 | 3,660 | 1,933 |
Allowance for Loan Losses Allocated | 0 | 366 | 134 |
Average Recorded Investment | 2,928 | 6,330 | 1,983 |
Interest Income Recognized | 0 | 207 | 136 |
With no related allowance recorded: | |||
Unpaid Principal Balance | 0 | 1,255 | 1,425 |
Recorded Investment | 0 | 1,255 | 1,425 |
Average Recorded Investment | 5,367 | 1,340 | 1,510 |
Interest Income Recognized | 229 | $ 54 | $ 61 |
Consumer | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 155 | ||
Recorded Investment | 155 | ||
Allowance for Loan Losses Allocated | 77 | ||
Average Recorded Investment | 75 | ||
Interest Income Recognized | $ 8 |
LOANS (Schedule of Non-accrual
LOANS (Schedule of Non-accrual Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 3,389 | |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 787 | |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Real estate | One to four family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 2,447 | |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 0 | $ 3,660 |
Loans Past Due Over 90 Days Still Accruing | 0 | $ 0 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 155 | |
Loans Past Due Over 90 Days Still Accruing | $ 0 |
LOANS (Schedule of Past Due Loa
LOANS (Schedule of Past Due Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 2,175 | $ 4,928 |
Loans not Past Due | 1,418,791 | 1,050,778 |
Loans | 1,420,966 | 1,055,706 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,070 | 14 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 163 | 4,914 |
Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 942 | 0 |
Real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,036,370 | 721,011 |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,623 | 958 |
Loans not Past Due | 782,122 | 546,753 |
Loans | 783,745 | 547,711 |
Real estate | Commercial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 836 | 0 |
Real estate | Commercial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 958 |
Real estate | Commercial | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 787 | 0 |
Real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Loans not Past Due | 36,960 | 29,447 |
Loans | 36,960 | 29,447 |
Real estate | Construction | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | Construction | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | Construction | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Loans not Past Due | 190,097 | 117,373 |
Loans | 190,097 | 117,373 |
Real estate | Multifamily | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | Multifamily | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | Multifamily | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | One to four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Loans not Past Due | 25,568 | 26,480 |
Loans | 25,568 | 26,480 |
Real estate | One to four family | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | One to four family | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | One to four family | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 227 | 3,936 |
Loans not Past Due | 339,774 | 311,934 |
Loans | 340,001 | 315,870 |
Commercial and industrial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 85 | 14 |
Commercial and industrial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 142 | 3,922 |
Commercial and industrial | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 325 | 34 |
Loans not Past Due | 44,270 | 18,791 |
Loans | 44,595 | 18,825 |
Consumer | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 149 | 0 |
Consumer | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 21 | 34 |
Consumer | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 155 | $ 0 |
LOANS (Loans by class modified
LOANS (Loans by class modified as troubled debt restructurings) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Loans | Dec. 31, 2016USD ($)Loans | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loans | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 3,875 | $ 1,933 |
Post-Modification Outstanding Recorded Investment | $ 3,875 | $ 1,933 |
Real estate | Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loans | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 3,875 | |
Post-Modification Outstanding Recorded Investment | $ 3,875 | |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loans | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 1,933 | |
Post-Modification Outstanding Recorded Investment | $ 1,933 |
LOANS (Schedule of Loans by Ris
LOANS (Schedule of Loans by Risk Category) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 1,420,966 | $ 1,055,706 |
Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,336,242 | 998,321 |
Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 12,595 | 7,208 |
Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,966 | 4,872 |
Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,036,370 | 721,011 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 783,745 | 547,711 |
Real estate | Commercial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 777,410 | 542,206 |
Real estate | Commercial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 4,369 | 4,293 |
Real estate | Commercial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,966 | 1,212 |
Real estate | Commercial | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 36,960 | 29,447 |
Real estate | Construction | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 36,960 | 29,447 |
Real estate | Construction | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | Construction | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | Construction | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | Multifamily | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 190,097 | 117,373 |
Real estate | Multifamily | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 190,097 | 117,373 |
Real estate | Multifamily | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | Multifamily | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | Multifamily | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 340,001 | 315,870 |
Commercial and industrial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 331,775 | 309,295 |
Commercial and industrial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 8,226 | 2,915 |
Commercial and industrial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 3,660 |
Commercial and industrial | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 0 | $ 0 |
LOANS (Schedule of Loans on the
LOANS (Schedule of Loans on the basis of Performance) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 70,163 | $ 45,305 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 67,561 | 45,305 |
Non-Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,602 | 0 |
Real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,036,370 | 721,011 |
Real estate | One to four family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 25,568 | 26,480 |
Real estate | One to four family | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 23,121 | 26,480 |
Real estate | One to four family | Non-Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,447 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 44,595 | 18,825 |
Consumer | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 44,440 | 18,825 |
Consumer | Non-Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 155 | $ 0 |
LOANS (Detail Textuals)
LOANS (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total charge offs | $ 3,987,000 | $ 6,189,000 | $ 0 |
Write down associated with taxi medallion loans | 3,700,000 | 5,100,000 | |
Interest on non-accrual loans not recognized | 88,000 | 57,000 | |
Loans modified in troubled debt restructurings | 2,700,000 | 7,900,000 | |
Specific reserves modified in troubled debt restructurings | $ 9,000 | $ 10,000 | $ 153,000 |
Minimum | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Extended maturity period in modification of financing receivable | 3 years | ||
Maximum | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Extended maturity period in modification of financing receivable | 5 years |
PREMISES AND EQUIPMENT (Schedul
PREMISES AND EQUIPMENT (Schedule of Premises and equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | $ 18,196 | $ 15,985 |
Less accumulated depreciation and amortization | (11,928) | (10,950) |
Total Premises and Equipment, net | 6,268 | 5,035 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | 7,376 | 5,973 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | $ 10,820 | $ 10,012 |
PREMISES AND EQUIPMENT (Sched62
PREMISES AND EQUIPMENT (Schedule of Premises and equipment) (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Furniture and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment useful life | 3 years |
Furniture and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment useful life | 7 years |
Leasehold Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment useful life | 3 years |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment useful life | 10 years |
PREMISES AND EQUIPMENT (Detail
PREMISES AND EQUIPMENT (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 978,000 | $ 785,000 | $ 696,000 |
DEPOSITS (Schedule of Deposits)
DEPOSITS (Schedule of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Core Deposits | ||
Noninterest bearing demand accounts | $ 812,497 | $ 403,402 |
Money market | 484,589 | 482,393 |
Savings accounts | 27,024 | 17,472 |
Total core deposits | 1,324,110 | 903,267 |
Time Deposits | ||
Time deposits under $100,000 | 73,437 | 69,188 |
Time deposits $100,000 and over | 6,808 | 21,325 |
Total deposits | $ 1,404,355 | $ 993,780 |
DEPOSITS (schedule maturities o
DEPOSITS (schedule maturities of time deposits) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Deposits [Abstract] | |
2,018 | $ 63,245 |
2,019 | 16,219 |
2,020 | 68 |
2,021 | 283 |
2,022 | 430 |
Total time deposits | $ 80,245 |
DEPOSITS (Detail Textuals)
DEPOSITS (Detail Textuals) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Time deposits greater than $250,000 | $ 38.8 | $ 21.3 |
Brokered deposits | $ 103.1 | $ 97.3 |
BORROWINGS (Advances from the F
BORROWINGS (Advances from the FHLB) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB Advances | $ 42,198 | $ 78,418 |
Maturing in 2018, fixed rate at rates from 1.21% to 3.23%, weighted averaging 1.53% | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB Advances | $ 42,198 | |
Maturing 2017 through 2018, fixed rate at rates from 0.77% to 3.23%, weighted averaging 0.95% | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB Advances | $ 78,418 |
BORROWINGS (Advances from the68
BORROWINGS (Advances from the FHLB) (Parenthetical) (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Maturing in 2018, fixed rate at rates from 1.21% to 3.23%, weighted averaging 1.53% | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rate for Federal Home Loan Bank advances | 1.21% | |
Maturing in 2018, fixed rate at rates from 1.21% to 3.23%, weighted averaging 1.53% | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rate for Federal Home Loan Bank advances | 3.23% | |
Maturing in 2018, fixed rate at rates from 1.21% to 3.23%, weighted averaging 1.53% | Weighted Average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate for Federal Home Loan Bank advances | 1.53% | |
Maturing 2017 through 2018, fixed rate at rates from 0.77% to 3.23%, weighted averaging 0.95% | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate for Federal Home Loan Bank advances | 0.77% | |
Maturing 2017 through 2018, fixed rate at rates from 0.77% to 3.23%, weighted averaging 0.95% | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate for Federal Home Loan Bank advances | 3.23% | |
Maturing 2017 through 2018, fixed rate at rates from 0.77% to 3.23%, weighted averaging 0.95% | Weighted Average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate for Federal Home Loan Bank advances | 0.95% |
BORROWINGS (Schedule of FHLB ad
BORROWINGS (Schedule of FHLB advances mature over the next five years and thereafter) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 42,198 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
FHLB Advances | $ 42,198 | $ 78,418 |
BORROWINGS (Detail Textuals)
BORROWINGS (Detail Textuals) - USD ($) | Mar. 08, 2017 | Jul. 14, 2006 | Dec. 07, 2005 | Dec. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank, Advances [Line Items] | |||||
FHLB advances, pledged as collateral | $ 263,400,000 | $ 204,400,000 | |||
Available collateral to borrow an additional amount from FHLB | $ 221,200,000 | ||||
Subordinated Debt | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Aggregate principal amount of debentures | $ 25,000,000 | ||||
Maturity date | Mar. 15, 2027 | ||||
Interest rate | 6.25% | ||||
Description of periodic payment | semi-annually on March 15 and September 15 of each year through March 15, 2022 and quarterly thereafter on March 15, June 15, September 15 and December 15 of each year | ||||
Redemption price, percentage | 100.00% | ||||
Subordinated Debt | London Interbank Offered Rate (LIBOR) | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Basis spread on LIBOR variable rate | 4.26% | ||||
Floating Rate Junior Subordinated Debentures (the "Debentures") | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Description of periodic payment | 20 consecutive quarterly payments | ||||
Period for periodic payment | 5 years | ||||
MetBank Capital Trust I, Delaware statutory trust ("Trust I") | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Investment in common securities of the trust | $ 310,000 | ||||
Trust preferred securities issued | 10,000,000 | ||||
MetBank Capital Trust I, Delaware statutory trust ("Trust I") | Floating Rate Junior Subordinated Debentures (the "Debentures") | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Aggregate principal amount of debentures | $ 10,310,000 | ||||
Maturity date | Dec. 9, 2035 | ||||
Interest rate | 6.82% | ||||
Term of interest rate | 5 years | ||||
Description of LIBOR rate | 3-month LIBOR | ||||
Callable period | 5 years | ||||
Interest rate during period | 3.21% | 2.73% | |||
MetBank Capital Trust I, Delaware statutory trust ("Trust I") | Floating Rate Junior Subordinated Debentures (the "Debentures") | London Interbank Offered Rate (LIBOR) | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Basis spread on LIBOR variable rate | 1.85% | ||||
MetBank Capital Trust II, a Delaware statutory trust ("Trust II") | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Investment in common securities of the trust | $ 310,000 | ||||
Trust preferred securities issued | 10,000,000 | ||||
MetBank Capital Trust II, a Delaware statutory trust ("Trust II") | Floating Rate Junior Subordinated Debentures (the "Debentures") | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Aggregate principal amount of debentures | $ 10,310,000 | ||||
Maturity date | Oct. 7, 2036 | ||||
Interest rate | 7.61% | ||||
Term of interest rate | 5 years | ||||
Description of LIBOR rate | 3-month LIBOR | ||||
Callable period | 5 years | ||||
Interest rate during period | 3.36% | 2.88% | |||
MetBank Capital Trust II, a Delaware statutory trust ("Trust II") | Floating Rate Junior Subordinated Debentures (the "Debentures") | London Interbank Offered Rate (LIBOR) | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Basis spread on LIBOR variable rate | 2.00% |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income tax expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | |||||||||||
Federal | $ 7,920 | $ 3,466 | $ 2,873 | ||||||||
State and local | 2,499 | 492 | 141 | ||||||||
Total current | 10,419 | 3,958 | 3,014 | ||||||||
Deferred | |||||||||||
Federal | 1,045 | (795) | (622) | ||||||||
State and local | (255) | (118) | 167 | ||||||||
Total deferred | 790 | (913) | (455) | ||||||||
Total income tax expense | $ 5,216 | $ 2,562 | $ 1,757 | $ 1,674 | $ (433) | $ 1,072 | $ 1,268 | $ 1,138 | $ 11,209 | $ 3,045 | $ 2,559 |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred tax assets and liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 4,583 | $ 4,990 |
Nonaccrual interest income | 28 | 159 |
Off balance sheet reserves | 110 | 68 |
Restricted stock | 153 | 165 |
Tangible asset | 23 | 36 |
Non-Qualified stock options | 183 | 251 |
Unrealized loss on securities available for sale | 86 | 118 |
Total gross deferred tax assets | 5,166 | 5,787 |
Deferred tax liabilities: | ||
Depreciation and amortization | 574 | 427 |
Prepaid asset | 159 | 150 |
Total gross deferred tax liabilities | 733 | 577 |
Net deferred tax asset, included in other assets | $ 4,433 | $ 5,210 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of statutory federal income tax rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Pretax income at statutory amount | $ 8,252 | $ 2,740 | $ 2,322 | ||||||||
Pretax income at statutory rates | 35.00% | 34.00% | 34.00% | ||||||||
State and local taxes, net of federal income tax benefit amount | $ 1,459 | $ 247 | $ 204 | ||||||||
State and local taxes, net of federal income tax benefit, rate | 6.19% | 3.10% | 3.00% | ||||||||
Nondeductible expenses, amount | $ 21 | $ 19 | $ 13 | ||||||||
Nondeductible expenses, rate | 0.09% | 0.20% | 0.20% | ||||||||
Stock options, amount | $ (113) | $ 49 | $ 16 | ||||||||
Stock options, rate | (0.48%) | 0.60% | 0.20% | ||||||||
Tax-exempt income, net amount | $ (10) | $ (10) | $ 0 | ||||||||
Tax-exempt income, net rate | (0.04%) | (0.10%) | 0.00% | ||||||||
Impact of U.S. tax reform (the Tax Act), amount | $ 1,581 | $ 0 | $ 0 | ||||||||
Impact of U.S. tax reform (the Tax Act), rate | 6.71% | 0.00% | 0.00% | ||||||||
Other, amount | $ 19 | $ 0 | $ 4 | ||||||||
Other, rate | 0.08% | 0.00% | 0.10% | ||||||||
Effective income tax expense, amount | $ 5,216 | $ 2,562 | $ 1,757 | $ 1,674 | $ (433) | $ 1,072 | $ 1,268 | $ 1,138 | $ 11,209 | $ 3,045 | $ 2,559 |
Effective income tax expense, rate | 47.55% | 37.80% | 37.50% |
INCOME TAXES (Detail Textual)
INCOME TAXES (Detail Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 34.00% | 34.00% |
Corporate income tax rate effective in 2018 | 21.00% | ||
U.S. tax expense | $ 1.6 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Executive officer | Promissory note | |||
Debt Instrument [Line Items] | |||
Face amount of note payable to related party | $ 780,000 | ||
Interest rate | 2.125% | ||
Description of LIBOR rate | 5-year LIBOR rate in effect on the note date, plus 100 basis points | ||
Basis spread on LIBOR variable rate | 1.00% | ||
Maturity date | Aug. 15, 2021 | ||
Outstanding balance of note payable to related party | $ 780,000 | $ 780,000 | |
PASL Holding LLC | Director | |||
Debt Instrument [Line Items] | |||
Bank incurred legal fees | 101,000 | 111,000 | $ 110,000 |
PASL Holding LLC | Principal officers, directors, and their affiliates | |||
Debt Instrument [Line Items] | |||
Deposits from related parties | $ 3,200,000 | $ 710,000 | $ 538,000 |
COMMITMENTS AND CONTINGENCIES76
COMMITMENTS AND CONTINGENCIES (Future minimum rental payments required) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 2,753 |
2,019 | 2,754 |
2,020 | 2,737 |
2,021 | 2,201 |
2,022 | 2,129 |
Thereafter (and through 2035) | 6,754 |
Total minimum lease payments | $ 19,328 |
COMMITMENTS AND CONTINGENCIES77
COMMITMENTS AND CONTINGENCIES (Detail Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense | $ 2.4 | $ 2.3 | $ 2 |
FAIR VALUE OF FINANCIAL INSTR78
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Inputs, Level 1 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | $ 0 | $ 0 |
Fair Value, Inputs, Level 1 | Residential collateralized mortgage obligation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 0 | 0 |
Fair Value, Inputs, Level 1 | Commercial collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 0 | |
Fair Value, Inputs, Level 1 | Municipal bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 0 | 0 |
Fair Value, Inputs, Level 1 | CRA mutual fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 2,108 | 2,063 |
Fair Value, Inputs, Level 2 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 24,684 | 29,027 |
Fair Value, Inputs, Level 2 | Residential collateralized mortgage obligation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 2,706 | 5,103 |
Fair Value, Inputs, Level 2 | Commercial collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 1,550 | |
Fair Value, Inputs, Level 2 | Municipal bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 1,109 | 1,136 |
Fair Value, Inputs, Level 2 | CRA mutual fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 0 | 0 |
Fair Value, Inputs, Level 3 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 0 | 0 |
Fair Value, Inputs, Level 3 | Residential collateralized mortgage obligation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 0 | 0 |
Fair Value, Inputs, Level 3 | Commercial collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 0 | |
Fair Value, Inputs, Level 3 | Municipal bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 0 | 0 |
Fair Value, Inputs, Level 3 | CRA mutual fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR79
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets measured at fair value on a non-recurring basis | $ 3,294 |
Fair Value, Inputs, Level 1 | Commercial and industrial loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets measured at fair value on a non-recurring basis | 0 |
Fair Value, Inputs, Level 2 | Commercial and industrial loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets measured at fair value on a non-recurring basis | 0 |
Fair Value, Inputs, Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets measured at fair value on a non-recurring basis | 3,700 |
Fair Value, Inputs, Level 3 | Commercial and industrial loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets measured at fair value on a non-recurring basis | $ 3,294 |
FAIR VALUE OF FINANCIAL INSTR80
FAIR VALUE OF FINANCIAL INSTRUMENTS (Quantitative Information About Level 3 Fair Value Measurements for Assets) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Assets measured at fair value on a non-recurring basis | $ 3,294 |
Fair Value, Inputs, Level 3 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Assets measured at fair value on a non-recurring basis | 3,700 |
Commercial and industrial loan | Fair Value, Inputs, Level 3 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Assets measured at fair value on a non-recurring basis | 3,294 |
Commercial and industrial loan | Fair Value, Inputs, Level 3 | Market approach | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Assets measured at fair value on a non-recurring basis | $ 3,294 |
Range (Weighted Average) | 10.00% |
FAIR VALUE OF FINANCIAL INSTR81
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Investment securities available for sale, at estimated fair value | $ 32,157 | $ 37,329 |
Securities held to maturity, fair value | 5,330 | 6,419 |
Other investments | ||
Federal Reserve Bank stock | 6,700 | 6,700 |
Federal Home Loan Bank stock | 7,600 | 7,600 |
Financial liabilities: | ||
FHLB Advances | 42,198 | 78,418 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 261,231 | 82,931 |
Investment securities available for sale, at estimated fair value | 32,157 | 37,329 |
Securities held to maturity, fair value | 5,428 | 6,500 |
Loans, net | 1,405,009 | 1,042,731 |
Other investments | ||
Federal Reserve Bank stock | 3,911 | |
Federal Home Loan Bank stock | 2,766 | |
SBA Loan Fund | 5,000 | |
Certificates of deposit | 2,000 | |
Accrued interest receivable | 4,421 | 2,735 |
Financial liabilities: | ||
Deposits without stated maturities | 1,324,110 | 903,267 |
Deposits with stated maturities | 80,245 | 90,513 |
Borrowed Funds | 42,198 | |
FHLB Advances | 78,418 | |
Trust preferred securities | 20,620 | 20,620 |
Subordinated debt, net of issurance cost | 24,489 | |
Accrued interest payable | 749 | 227 |
Total Fair Value | ||
Financial assets: | ||
Cash and due from banks | 261,231 | 82,931 |
Investment securities available for sale, at estimated fair value | 32,157 | 37,329 |
Securities held to maturity, fair value | 5,330 | 6,419 |
Loans, net | 1,410,860 | 1,059,333 |
Other investments | ||
Certificates of deposit | 2,000 | |
Accrued interest receivable | 4,421 | 2,735 |
Financial liabilities: | ||
Deposits without stated maturities | 1,324,110 | 903,267 |
Deposits with stated maturities | 80,079 | 90,559 |
Borrowed Funds | 42,188 | |
FHLB Advances | 78,872 | |
Trust preferred securities | 19,997 | 19,998 |
Subordinated debt, net of issurance cost | 25,500 | |
Accrued interest payable | 749 | 227 |
Fair Value, Inputs, Level 1 | Total Fair Value | ||
Financial assets: | ||
Cash and due from banks | 261,231 | 82,931 |
Investment securities available for sale, at estimated fair value | 2,108 | 2,063 |
Securities held to maturity, fair value | 0 | 0 |
Loans, net | 0 | 0 |
Other investments | ||
Certificates of deposit | 2,000 | |
Accrued interest receivable | 11 | 0 |
Financial liabilities: | ||
Deposits without stated maturities | 1,324,110 | 903,267 |
Deposits with stated maturities | 0 | 0 |
FHLB Advances | 0 | 0 |
Trust preferred securities | 0 | 0 |
Subordinated debt, net of issurance cost | 0 | |
Accrued interest payable | 27 | 19 |
Fair Value, Inputs, Level 2 | Total Fair Value | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Investment securities available for sale, at estimated fair value | 30,049 | 35,266 |
Securities held to maturity, fair value | 5,330 | 6,419 |
Loans, net | 0 | 0 |
Other investments | ||
Certificates of deposit | 0 | |
Accrued interest receivable | 116 | 157 |
Financial liabilities: | ||
Deposits without stated maturities | 0 | 0 |
Deposits with stated maturities | 80,079 | 90,559 |
Borrowed Funds | 42,188 | |
FHLB Advances | 78,872 | |
Trust preferred securities | 0 | 0 |
Subordinated debt, net of issurance cost | 25,500 | |
Accrued interest payable | 258 | 62 |
Fair Value, Inputs, Level 3 | Total Fair Value | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Investment securities available for sale, at estimated fair value | 0 | 0 |
Securities held to maturity, fair value | 0 | 0 |
Loans, net | 1,410,860 | 1,059,333 |
Other investments | ||
Certificates of deposit | 0 | |
Accrued interest receivable | 4,294 | 2,578 |
Financial liabilities: | ||
Deposits without stated maturities | 0 | 0 |
Deposits with stated maturities | 0 | 0 |
FHLB Advances | 0 | 0 |
Trust preferred securities | 19,997 | 19,998 |
Subordinated debt, net of issurance cost | 0 | |
Accrued interest payable | $ 464 | $ 146 |
FAIR VALUE OF FINANCIAL INSTR82
FAIR VALUE OF FINANCIAL INSTRUMENTS (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | $ 3,294,000 | |
Other Investments invested in certificates of deposit, which are Level 1 assets | $ 2,000,000 | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | 3,700,000 | |
Valuation allowance | 366,000 | |
Increase of provision for loan loss | $ 42,000 |
STOCKHOLDERS' EQUITY (Detail Te
STOCKHOLDERS' EQUITY (Detail Textuals) - USD ($) | Nov. 10, 2017 | Apr. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 30, 2016 |
Stockholders Equity Note [Line Items] | ||||||
Proceeds from issuance of common stock, net of direct offering cost | $ 114,773,000 | $ 28,368,000 | $ 12,606,000 | |||
Direct offering cost | $ 394,000 | |||||
Purchase and retirement of preferred stock | 1,400,000 | |||||
Value of preferred stock shares redeemed | 2,672,000 | |||||
Dividend paid | 3,420,000 | |||||
Value of preferred stock shares issued | $ 5,503,000 | |||||
Number of restricted common stock vested | 16,969 | 82,806 | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||||
United States Marshals Office | ||||||
Stockholders Equity Note [Line Items] | ||||||
Purchase and retirement of preferred stock | $ 1,400,000 | |||||
Share price per share | $ 11.30 | |||||
Common stock, par value | $ 35 | |||||
Class A Preferred Stock | ||||||
Stockholders Equity Note [Line Items] | ||||||
Number of shares issued on conversion | 24,204 | |||||
Number of shares forfeited by one of the shareholder | 123,924 | |||||
Number of preferred stock shares redeemed | 267,120 | |||||
Value of preferred stock shares redeemed | $ 3,000 | |||||
Redemption price per share | $ 10 | |||||
Dividend rate for period from issuance through redemption | 8.00% | |||||
Preferred stock, par value | 0.01 | $ 0.01 | ||||
Class B Preferred Stock | ||||||
Stockholders Equity Note [Line Items] | ||||||
Number of shares issued on conversion | 60,000 | |||||
Direct offering cost | $ 710,000 | |||||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||||
Number of preferred stock shares issued | 272,636 | |||||
Value of preferred stock shares issued | $ 3,000 | |||||
Number of common stock shares issued via a rights offering | 1,365,969 | |||||
Value of common stock shares issued via a rights offering | $ 28,200,000 | |||||
Number of common stock shares sold to directors | 8,143 | |||||
Value of common stock shares sold to directors | $ 170,000 | |||||
Common Stock | ||||||
Stockholders Equity Note [Line Items] | ||||||
Number of shares issued on conversion | (60,000) | (13,447) | ||||
Number of common stock shares issued | 3,565,000 | 1,374,112 | 722,222 | |||
Common Stock | IPO | ||||||
Stockholders Equity Note [Line Items] | ||||||
Number of common stock shares issued | 3,100,000 | |||||
Proceeds from issuance of common stock, net of direct offering cost | $ 115,000,000 | |||||
Common stock, par value | $ 35 | |||||
Number of additional shares issued | 465,000 | |||||
Common stock, par value for additional shares issued | $ 35 | |||||
Additional Paid-in Capital (not required in Role # 470) | ||||||
Stockholders Equity Note [Line Items] | ||||||
Value of preferred stock shares redeemed | $ 2,624,000 | |||||
Value of preferred stock shares issued | $ 5,500,000 |
STOCK COMPENSATION PLAN (Fair v
STOCK COMPENSATION PLAN (Fair value of options granted during 2015) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
STOCK COMPENSATION PLAN [Abstract] | |
Risk-free interest rate | 12.19% |
Expected term | 10 years |
Dividend yield | 0.00% |
STOCK COMPENSATION PLAN (Summar
STOCK COMPENSATION PLAN (Summary of the Status of the Stock Option Plan) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options | ||
Outstanding, beginning of year | 276,500 | 289,000 |
Granted | 0 | 0 |
Exercised | (4,503) | |
Cancelled/forfeited | (497) | (12,500) |
Outstanding, end of year | 271,500 | 276,500 |
Options vested and exercisable at year-end | 271,500 | 276,500 |
Weighted Average Exercise Price | ||
Outstanding, beginning of year | $ 19.97 | $ 20.41 |
Granted | 0 | 0 |
Exercised | 30 | 0 |
Cancelled/forfeited | 30 | 30 |
Outstanding, end of year | 19.79 | 19.97 |
Options vested and exercisable at year-end | 19.79 | 19.97 |
Weighted average fair value of options granted during the year | $ 0 | $ 0 |
Weighted average remaining contractual life (years) | 5 years 6 months 26 days | 6 years 3 months |
STOCK COMPENSATION PLAN (Summ86
STOCK COMPENSATION PLAN (Summary of Stock Options Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
$10 - 20 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Average Exercise Prices, Lower Limit | $ 10 |
Range of Average Exercise Prices, Upper Limit | $ 20 |
Number of Options Outstanding | shares | 231,000 |
Weighted Average Remaining Contractual Life | 6 years 4 months 17 days |
Weighted Average Exercise Price | $ 18 |
$21 - 30 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Average Exercise Prices, Lower Limit | 21 |
Range of Average Exercise Prices, Upper Limit | $ 30 |
Number of Options Outstanding | shares | 40,500 |
Weighted Average Remaining Contractual Life | 11 months 12 days |
Weighted Average Exercise Price | $ 30 |
$10 - 30 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Average Exercise Prices, Lower Limit | 10 |
Range of Average Exercise Prices, Upper Limit | $ 30 |
Number of Options Outstanding | shares | 271,500 |
Weighted Average Remaining Contractual Life | 5 years 6 months 26 days |
Weighted Average Exercise Price | $ 19.97 |
STOCK COMPENSATION PLAN (Summ87
STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted Average Grant Date fair Value, January 1, 2017 | $ 0 |
Weighted Average Grant Date fair Value, December 31, 2017 | $ 0 |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of shares, Outstanding, January 1, 2017 | shares | 64,638 |
Number of shares, Granted | shares | 31,606 |
Number of shares, Forfeited | shares | (3,167) |
Number of shares, Vested | shares | (16,973) |
Number of shares, Outstanding, December 31, 2017 | shares | 76,104 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted Average Grant Date fair Value, January 1, 2017 | $ 20.42 |
Weighted Average Grant Date fair Value, Granted | 21 |
Weighted Average Grant Date fair Value, Forfeited | 18 |
Weighted Average Grant Date fair Value, Vested | 18 |
Weighted Average Grant Date fair Value, December 31, 2017 | $ 20.61 |
STOCK COMPENSATION PLAN (Detail
STOCK COMPENSATION PLAN (Detail Textuals) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Executive management | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested accerlerated shares | 0 | 178,600 | ||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, description | Stock options are generally granted with an exercise price equal to 100% of the fair value of the common stock at the date of grant. | |||
Share-based payment award, shares authorized, maximum | 0 | 0 | ||
Unrecognized compensation cost related to non-vested stock options | $ 622,000 | |||
Compensation cost related to stock award plan | $ 0 | $ 620,000 | 166,000 | |
Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, description | Under the terms of the 2009 Plan, each option agreement cannot have an exercise price that is less than 100% of the fair value of the shares covered by the option on the date of grant. In the case of an ISO granted to any 10% shareholder, the exercise price shall not be less than 110% of the fair value of the shares covered by the option on the date of grant. In no event shall the exercise price of an option be less than the par value of the shares for which the option is exercisable. In no event shall the exercise period exceed ten years from the date of grant of the option, except, in the case of an ISO granted to a 10% shareholder, the exercise period shall not exceed five years from the date of grant. | |||
Share-based payment award, shares authorized, maximum | 423,000 | |||
Equity Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, exercise period from the grant date | 10 years | |||
Incentive stock options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, exercise period from the grant date | 5 years | |||
Restricted stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, shares authorized, maximum | 823,629 | 851,571 | ||
Unrecognized compensation cost related to non-vested stock options | $ 1,060,000 | |||
Compensation cost related to stock award plan | $ 412,000 | $ 1,700,000 | 281,000 | |
Number of additional shares authorized | 760,000 | 300,000 | ||
Number of shares issued | 31,606 | 77,667 | ||
Unrecognized compensation expense recognition period | 2 years | |||
Number of shares, Vested | 16,973 | |||
Fair value of shares vested | $ 725,000 | $ 1,700,000 | $ 68,000 | |
Restricted stock awards | Immediate vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, Vested | 66,667 |
EMPLOYEE BENEFIT PLAN (Detail T
EMPLOYEE BENEFIT PLAN (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Employer discretionary contribution amount | $ 334,000 | $ 268,000 | $ 221,000 |
FINANCIAL INSTRUMENTS WITH OF90
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Outstanding following off-balance-sheet financial instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 63,392 | $ 70,792 |
Variable Rate | 76,008 | 9,890 |
Undrawn lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 39,651 | 60,984 |
Variable Rate | 76,008 | 9,890 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 23,741 | 9,808 |
Variable Rate | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS WITH OF91
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Detail Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments term | 2 years | |
Amount of off-balance-sheet financial instruments | $ 63,392 | $ 70,792 |
Maturity of stand by letters of credit and time deposits | within one year | |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed interest rate off-balance-sheet financial instruments | 3.50% | 3.75% |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed interest rate off-balance-sheet financial instruments | 9.50% | 8.75% |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 23,741 | $ 9,808 |
Amount of off-balance-sheet financial instruments pledged | $ 1,700 | $ 4,000 |
REGULATORY CAPITAL (Summary of
REGULATORY CAPITAL (Summary of actual capital amounts and ratios) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual Amount | $ 287,039 | $ 131,895 |
Total capital (to risk-weighted assets), Actual Ratio | 19.90% | 12.50% |
Total capital (to risk-weighted assets), For Capital Adequacy Amount | $ 115,636 | $ 84,733 |
Total capital (to risk-weighted assets), For Capital Adequacy Ratio | 8.00% | 8.00% |
Tier 1 common equity (to risk-weighted assets), Actual Amount | $ 221,803 | $ 114,421 |
Tier 1 common equity (to risk-weighted assets), Actual Ratio | 15.30% | 10.80% |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Amount | $ 65,045 | $ 47,662 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Ratio | 4.50% | 4.50% |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 247,305 | $ 119,923 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 17.10% | 11.30% |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Amount | $ 86,726 | $ 63,549 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets), Actual Amount | $ 247,305 | $ 119,923 |
Tier 1 capital (to average assets), Actual Ratio | 13.70% | 10.50% |
Tier 1 capital (to average assets), For Capital Adequacy Amount | $ 72,206 | $ 45,742 |
Tier 1 capital (to average assets), For Capital Adequacy Ratio | 4.00% | 4.00% |
Metropolitan Commercial Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual Amount | $ 280,317 | $ 130,949 |
Total capital (to risk-weighted assets), Actual Ratio | 19.40% | 12.40% |
Total capital (to risk-weighted assets), For Capital Adequacy Amount | $ 115,523 | $ 84,619 |
Total capital (to risk-weighted assets), For Capital Adequacy Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 144,403 | $ 105,774 |
Total capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 10.00% | 10.00% |
Tier 1 common equity (to risk-weighted assets), Actual Amount | $ 265,076 | $ 118,977 |
Tier 1 common equity (to risk-weighted assets), Actual Ratio | 18.40% | 11.30% |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Amount | $ 64,981 | $ 47,598 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Ratio | 4.50% | 4.50% |
Tier 1 common equity (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 93,862 | $ 68,753 |
Tier 1 common equity (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 6.50% | 6.50% |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 265,076 | $ 118,977 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 18.40% | 11.30% |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Amount | $ 86,642 | $ 63,465 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Ratio | 6.00% | 6.00% |
Tier 1 capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 115,523 | $ 84,619 |
Tier 1 capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 8.00% | 8.00% |
Tier 1 capital (to average assets), Actual Amount | $ 265,076 | $ 118,977 |
Tier 1 capital (to average assets), Actual Ratio | 14.70% | 10.40% |
Tier 1 capital (to average assets), For Capital Adequacy Amount | $ 72,099 | $ 45,703 |
Tier 1 capital (to average assets), For Capital Adequacy Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 90,124 | $ 57,128 |
Tier 1 capital (to average assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 5.00% | 5.00% |
Total capital (to risk-weighted assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Amount | $ 133,573 | $ 91,230 |
Total capital (to risk-weighted assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Ratio | 9.30% | 8.60% |
Tier 1 common equity (to risk-weighted assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Amount | $ 83,032 | $ 54,209 |
Tier 1 common equity (to risk-weighted assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Ratio | 5.80% | 5.10% |
Tier 1 capital (to risk-weighted assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Amount | $ 104,692 | $ 70,075 |
Tier 1 capital (to risk-weighted assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Ratio | 7.30% | 6.60% |
Tier 1 capital (to average assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Amount | $ 72,099 | $ 45,703 |
Tier 1 capital (to average assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Ratio | 4.00% | 4.00% |
EARNINGS PER COMMON SHARE (Comp
EARNINGS PER COMMON SHARE (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Basic | |||||||||||||||
Net income per consolidated statements of income | $ 3,325 | $ 3,845 | $ 2,651 | $ 2,548 | $ 49 | $ 1,450 | $ 1,850 | $ 1,664 | $ 12,369 | $ 5,013 | $ 4,269 | ||||
Less: Dividends paid to preferred shareholders | 0 | (3,420) | 0 | ||||||||||||
Less: Earnings allocated to participating securities | (183) | (30) | (85) | ||||||||||||
Net income available to common stockholder | $ 12,186 | $ 1,563 | $ 4,184 | ||||||||||||
Weighted average common shares outstanding including participating securities | 5,147,149 | 3,708,734 | 2,775,152 | ||||||||||||
Less: Weighted average participating securities | (76,104) | (68,708) | (55,347) | ||||||||||||
Weighted average common shares outstanding | 5,071,045 | 3,640,026 | 2,719,805 | ||||||||||||
Basic earnings per common share | $ 0.50 | $ 0.83 | $ 0.57 | $ 0.55 | $ 0.01 | $ (0.50) | $ 0.59 | $ 0.53 | $ 2.40 | $ 0.43 | $ 1.54 | ||||
Diluted | |||||||||||||||
Net income allocated to common shareholders | $ 12,186 | $ 1,563 | $ 4,184 | ||||||||||||
Weighted average common shares outstanding for basic earnings per common share | 5,071,045 | 3,640,026 | 2,719,805 | ||||||||||||
Add: Dilutive effects of assumed exercise of stock options | 131,189 | 33,000 | 0 | ||||||||||||
Average shares and dilutive potential common shares | 5,202,234 | 3,673,026 | 2,719,805 | ||||||||||||
Dilutive earnings per commons share | $ 0.49 | $ 0.82 | $ 0.57 | $ 0.55 | $ 0.01 | [1] | $ (0.50) | [1] | $ 0.58 | [1] | $ 0.53 | [1] | $ 2.34 | $ 0.43 | $ 1.54 |
[1] | The EPS for September 30, 2016 was negative despite having a positive Net Income due to dividends paid out to preferred shareholders in that quarter. |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Detail Textuals) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Number of antidilutive shares not considered in computing diluted earnings per share | 0 | 45,500 | 289,000 |
PARENT COMPANY FINANCIAL INFO95
PARENT COMPANY FINANCIAL INFORMATION (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and due from banks | $ 261,231 | $ 82,931 | ||
Loans, net of allowance for loan losses | 1,405,009 | 1,042,731 | ||
Total assets | 1,759,855 | 1,220,301 | ||
Liabilities and Stockholders' Equity | ||||
Trust preferred securities payable | 20,620 | 20,620 | ||
Subordinated debt payable, net of issuance costs | 24,489 | |||
Other liabilities | 8,882 | 6,864 | ||
Total liabilities | 1,522,971 | 1,110,810 | ||
Stockholders' equity: | ||||
Common stock | 81 | 45 | ||
Surplus | 211,145 | 96,116 | ||
Retained earnings | 25,861 | 13,492 | ||
Accumulated other comprehensive loss, net of tax | (206) | (165) | ||
Total equity | 236,884 | 109,491 | $ 75,952 | $ 58,743 |
Total liabilities and stockholders' equity | 1,759,855 | 1,220,301 | ||
Parent Company | ||||
Assets | ||||
Cash and due from banks | 6,761 | 818 | ||
Loans, net of allowance for loan losses | 776 | 776 | ||
Investments | 620 | 620 | ||
Investment in subsidiary bank, at equity | 274,190 | 128,671 | ||
Other assets | 596 | 11 | ||
Total assets | 282,943 | 130,896 | ||
Liabilities and Stockholders' Equity | ||||
Trust preferred securities payable | 20,620 | 20,620 | ||
Subordinated debt payable, net of issuance costs | 24,489 | |||
Other liabilities | 950 | 785 | ||
Total liabilities | 46,059 | 21,405 | ||
Stockholders' equity: | ||||
Preferred stock | 3 | 3 | ||
Common stock | 81 | 45 | ||
Surplus | 211,145 | 96,116 | ||
Retained earnings | 25,861 | 13,492 | ||
Accumulated other comprehensive loss, net of tax | (206) | (165) | ||
Total equity | 236,884 | 109,491 | ||
Total liabilities and stockholders' equity | $ 282,943 | $ 130,896 |
PARENT COMPANY FINANCIAL INFO96
PARENT COMPANY FINANCIAL INFORMATION (Condensed Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income: | |||||||||||
Loan | $ 57,075 | $ 42,360 | $ 31,110 | ||||||||
Securities and money market funds | 315 | 142 | 110 | ||||||||
Total interest income | $ 17,864 | $ 16,401 | $ 14,047 | $ 12,441 | $ 11,919 | $ 11,337 | $ 10,970 | $ 9,929 | 60,753 | 44,155 | 32,682 |
Interest expense: | |||||||||||
Trust preferred securities payable | 636 | 539 | 456 | ||||||||
Subordinated debt interest expense | 1,322 | ||||||||||
Total interest expense | 2,293 | 2,437 | 2,281 | 1,660 | 1,492 | 1,519 | 1,598 | 1,480 | 8,671 | 6,089 | 5,260 |
Net interest expense | 15,571 | 13,964 | 11,766 | 10,781 | 10,427 | 9,818 | 9,372 | 8,449 | 52,082 | 38,066 | 27,422 |
Provision for loan losses | 3,499 | 1,200 | 1,790 | 570 | 5,900 | 350 | 1,250 | 560 | 7,059 | 8,060 | 2,015 |
Net interest income after provision for loan losses | 12,072 | 12,764 | 9,976 | 10,211 | 4,527 | 9,468 | 8,122 | 7,889 | 45,023 | 30,006 | 25,407 |
Other expense | 2,821 | 2,300 | 2,631 | ||||||||
Income before income tax expense | 8,541 | 6,407 | 4,408 | 4,222 | (384) | 2,522 | 3,118 | 2,802 | 23,578 | 8,058 | 6,828 |
Income tax benefit | 5,216 | 2,562 | 1,757 | 1,674 | (433) | 1,072 | 1,268 | 1,138 | 11,209 | 3,045 | 2,559 |
Net income per consolidated statements of income | $ 3,325 | $ 3,845 | $ 2,651 | $ 2,548 | $ 49 | $ 1,450 | $ 1,850 | $ 1,664 | 12,369 | 5,013 | 4,269 |
Parent Company | |||||||||||
Income: | |||||||||||
Loan | 17 | 6 | 0 | ||||||||
Securities and money market funds | 0 | 19 | 25 | ||||||||
Total interest income | 17 | 25 | 25 | ||||||||
Interest expense: | |||||||||||
Trust preferred securities payable | 636 | 539 | 455 | ||||||||
Subordinated debt interest expense | 1,322 | 0 | 0 | ||||||||
Total interest expense | 1,958 | 539 | 455 | ||||||||
Net interest expense | (1,941) | (514) | (430) | ||||||||
Provision for loan losses | 0 | 4 | 0 | ||||||||
Net interest income after provision for loan losses | (1,941) | (518) | (430) | ||||||||
Other expense | 33 | 0 | 0 | ||||||||
Loss before undistributed earnings of subsidiary bank | (1,974) | (518) | (430) | ||||||||
Equity in undistributed earnings of subsidiary bank | 13,560 | 5,319 | 4,526 | ||||||||
Income before income tax expense | 11,586 | 4,801 | 4,096 | ||||||||
Income tax benefit | (783) | (212) | (173) | ||||||||
Net income per consolidated statements of income | $ 12,369 | $ 5,013 | $ 4,269 |
PARENT COMPANY FINANCIAL INFO97
PARENT COMPANY FINANCIAL INFORMATION (Condensed Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operating Activities: | |||||||||||
Net income | $ 3,325 | $ 3,845 | $ 2,651 | $ 2,548 | $ 49 | $ 1,450 | $ 1,850 | $ 1,664 | $ 12,369 | $ 5,013 | $ 4,269 |
Adjustments to reconcile net income to net cash: | |||||||||||
Amortization of subordinated debt issuance costs | 46 | ||||||||||
Provision for loan losses | 3,499 | $ 1,200 | $ 1,790 | 570 | 5,900 | $ 350 | $ 1,250 | 560 | 7,059 | 8,060 | 2,015 |
Stock based compensation expense | 412 | 2,328 | 447 | ||||||||
Decrease (increase) in other assets | (172) | ||||||||||
Increase (decrease) in other liabilities | 165 | ||||||||||
Net cash provided by (used in) operating activities | (1,341) | 14,558 | 5,443 | ||||||||
Cash Flows From Investing Activities: | |||||||||||
Net cash used in Investing activities | (366,624) | (233,665) | (187,074) | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common stock, net | 114,773 | 28,368 | 12,606 | ||||||||
Repurchase of common stock for exercise of stock options and tax withholdings for restricted stock vestings | (255) | ||||||||||
Proceeds from issuance of preferred stock, net | 5,503 | ||||||||||
Purchase and retirement of preferred stock | (1,400) | ||||||||||
Redemption of preferred stock, net | (2,672) | ||||||||||
Proceeds from exercise of stock options | 135 | ||||||||||
Proceeds from issuance of subordinated debt, net of issuance cost | 24,443 | ||||||||||
Payment of preferred stock dividend | (3,420) | ||||||||||
Net cash provided by financing activities | 513,617 | 236,391 | 201,623 | ||||||||
Net (decrease) increase in cash and cash equivalents | 178,300 | 17,284 | 19,992 | ||||||||
Cash and cash equivalents at the beginning of the year | 82,931 | 65,647 | 82,931 | 65,647 | 45,655 | ||||||
Cash and cash equivalents at the end of the year | 261,231 | 82,931 | 261,231 | 82,931 | 65,647 | ||||||
Parent Company | |||||||||||
Cash Flows From Operating Activities: | |||||||||||
Net income | 12,369 | 5,013 | 4,269 | ||||||||
Adjustments to reconcile net income to net cash: | |||||||||||
Undistributed earnings of subsidiary bank | (13,560) | (5,319) | (4,526) | ||||||||
Amortization of subordinated debt issuance costs | 46 | 0 | 0 | ||||||||
Provision for loan losses | 0 | 4 | 0 | ||||||||
Stock based compensation expense | 412 | 0 | 0 | ||||||||
Decrease (increase) in other assets | (585) | 25 | (29) | ||||||||
Increase (decrease) in other liabilities | 165 | 415 | 26 | ||||||||
Net cash provided by (used in) operating activities | (1,153) | 138 | (260) | ||||||||
Cash Flows From Investing Activities: | |||||||||||
Investments in subsidiary bank | (132,000) | (26,000) | (11,400) | ||||||||
Loan to related party | 0 | (780) | 0 | ||||||||
Net cash used in Investing activities | (132,000) | (26,780) | (11,400) | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common stock, net | 114,773 | 28,368 | 12,606 | ||||||||
Repurchase of common stock for exercise of stock options and tax withholdings for restricted stock vestings | (255) | 0 | 0 | ||||||||
Proceeds from issuance of preferred stock, net | 0 | 5,503 | 0 | ||||||||
Purchase and retirement of preferred stock | 0 | (1,400) | 0 | ||||||||
Redemption of preferred stock, net | 0 | (2,672) | 0 | ||||||||
Proceeds from exercise of stock options | 135 | 0 | 0 | ||||||||
Proceeds from issuance of subordinated debt, net of issuance cost | 24,443 | 0 | 0 | ||||||||
Payment of preferred stock dividend | 0 | (3,420) | 0 | ||||||||
Net cash provided by financing activities | 139,096 | 26,379 | 12,606 | ||||||||
Net (decrease) increase in cash and cash equivalents | 5,943 | (263) | 946 | ||||||||
Cash and cash equivalents at the beginning of the year | $ 818 | $ 1,081 | 818 | 1,081 | 135 | ||||||
Cash and cash equivalents at the end of the year | $ 6,761 | $ 818 | $ 6,761 | $ 818 | $ 1,081 |
ACCUMULATED OTHER COMPREHENSI98
ACCUMULATED OTHER COMPREHENSIVE INCOME (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | $ 109,491 | $ 75,952 | $ 58,743 |
Net current period other comprehensive loss | (54) | (308) | (220) |
Balance | 236,884 | 109,491 | 75,952 |
AOCI (Loss), Net | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (165) | 16 | 129 |
Net change in other comprehensive income (loss) before reclassification, net of tax | (41) | (158) | (113) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | (23) | 0 |
Net current period other comprehensive loss | (41) | (181) | (113) |
Balance | $ (206) | $ (165) | $ 16 |
ACCUMULATED OTHER COMPREHENSI99
ACCUMULATED OTHER COMPREHENSIVE INCOME (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income tax expense | $ (5,216) | $ (2,562) | $ (1,757) | $ (1,674) | $ 433 | $ (1,072) | $ (1,268) | $ (1,138) | $ (11,209) | $ (3,045) | $ (2,559) |
Reclassifications out of accumulated other comprehensive (loss) income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Realized gain on sale of available for sale securities | 0 | 40 | 0 | ||||||||
Income tax expense | 0 | (17) | 0 | ||||||||
Total reclassifications, net of income tax | $ 0 | $ 23 | $ 0 |
UNAUDITED QUARTERLY FINANCIA100
UNAUDITED QUARTERLY FINANCIAL DATA (Selected Consolidated Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Quarterly Financial Information (Unaudited) | |||||||||||||||
Interest income | $ 17,864 | $ 16,401 | $ 14,047 | $ 12,441 | $ 11,919 | $ 11,337 | $ 10,970 | $ 9,929 | $ 60,753 | $ 44,155 | $ 32,682 | ||||
Interest expense | 2,293 | 2,437 | 2,281 | 1,660 | 1,492 | 1,519 | 1,598 | 1,480 | 8,671 | 6,089 | 5,260 | ||||
Net interest income | 15,571 | 13,964 | 11,766 | 10,781 | 10,427 | 9,818 | 9,372 | 8,449 | 52,082 | 38,066 | 27,422 | ||||
Provision for loan losses | 3,499 | 1,200 | 1,790 | 570 | 5,900 | 350 | 1,250 | 560 | 7,059 | 8,060 | 2,015 | ||||
Net interest income after provision for loan losses | 12,072 | 12,764 | 9,976 | 10,211 | 4,527 | 9,468 | 8,122 | 7,889 | 45,023 | 30,006 | 25,407 | ||||
Non-interest income | 6,249 | 2,233 | 1,573 | 1,245 | 1,288 | 1,321 | 1,658 | 1,156 | |||||||
Non-interest expense | 9,780 | 8,590 | 7,141 | 7,234 | 6,199 | 8,267 | 6,662 | 6,243 | 32,745 | 27,371 | 23,077 | ||||
Income before income taxes | 8,541 | 6,407 | 4,408 | 4,222 | (384) | 2,522 | 3,118 | 2,802 | 23,578 | 8,058 | 6,828 | ||||
Income tax expense | 5,216 | 2,562 | 1,757 | 1,674 | (433) | 1,072 | 1,268 | 1,138 | 11,209 | 3,045 | 2,559 | ||||
Net income per consolidated statements of income | $ 3,325 | $ 3,845 | $ 2,651 | $ 2,548 | $ 49 | $ 1,450 | $ 1,850 | $ 1,664 | $ 12,369 | $ 5,013 | $ 4,269 | ||||
Basic earnings per share (in dollars per share) | $ 0.50 | $ 0.83 | $ 0.57 | $ 0.55 | $ 0.01 | $ (0.50) | $ 0.59 | $ 0.53 | $ 2.40 | $ 0.43 | $ 1.54 | ||||
Diluted earnings per share (in dollars per share) | $ 0.49 | $ 0.82 | $ 0.57 | $ 0.55 | $ 0.01 | [1] | $ (0.50) | [1] | $ 0.58 | [1] | $ 0.53 | [1] | $ 2.34 | $ 0.43 | $ 1.54 |
[1] | The EPS for September 30, 2016 was negative despite having a positive Net Income due to dividends paid out to preferred shareholders in that quarter. |