Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 04, 2020 | |
Document And Entity Information (Abstract) | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Entity Registrant Name | METROPOLITAN BANK HOLDING CORP. | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,294,801 | |
Entity Central Index Key | 0001476034 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 12,501 | $ 9,619 |
Overnight deposits | 569,927 | 381,104 |
Total cash and cash equivalents | 582,428 | 390,723 |
Investment securities available for sale, at fair value | 199,854 | 234,942 |
Investment securities held to maturity (estimated fair value of $3,588 and $3,712 at March 31, 2020 and December 31, 2019 respectively) | 3,520 | 3,722 |
Equity investment securities | 2,272 | 2,224 |
Total securities | 205,646 | 240,888 |
Other investments | 21,455 | 21,437 |
Loans, net of deferred fees and unamortized costs | 2,766,099 | 2,672,949 |
Allowance for loan losses | (30,924) | (26,272) |
Net loans | 2,735,175 | 2,646,677 |
Receivable from prepaid card programs, net | 20,861 | 10,078 |
Accrued interest receivable | 9,108 | 8,862 |
Premises and equipment, net | 14,917 | 12,100 |
Prepaid expenses and other assets | 10,855 | 11,406 |
Goodwill | 9,733 | 9,733 |
Accounts receivable, net | 1,834 | 5,668 |
Total assets | 3,612,012 | 3,357,572 |
Deposits: | ||
Noninterest-bearing demand deposits | 1,250,584 | 1,090,479 |
Interest-bearing deposits | 1,771,108 | 1,700,295 |
Total deposits | 3,021,692 | 2,790,774 |
Federal Home Loan Bank of New York advances | 144,000 | 144,000 |
Trust preferred securities | 20,620 | 20,620 |
Subordinated debt, net of issuance cost | 24,615 | 24,601 |
Secured borrowing | 41,697 | 42,972 |
Accounts payable, accrued expenses and other liabilities | 26,234 | 23,556 |
Accrued interest payable | 1,146 | 1,229 |
Prepaid third-party debit cardholder balances | 23,472 | 10,696 |
Total liabilities | 3,303,476 | 3,058,448 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 25,000,000 shares authorized, 8,294,801 and 8,312,918 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 82 | 82 |
Additional paid in capital | 216,701 | 216,468 |
Retained earnings | 87,461 | 81,364 |
Accumulated other comprehensive gain, net of tax effect | 4,289 | 1,207 |
Total stockholders’ equity | 308,536 | 299,124 |
Total liabilities and stockholders’ equity | 3,612,012 | 3,357,572 |
Class B Preferred Stock | ||
Stockholders' equity: | ||
Class B preferred stock, $0.01 par value, authorized 2,000,000 shares, 272,636 issued and outstanding at March 31, 2020 and December 31, 2019 | 3 | 3 |
Total stockholders’ equity | $ 3 | $ 3 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Securities held to maturity | $ 3,588 | $ 3,712 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 8,294,801 | 8,312,918 |
Common stock, shares outstanding | 8,294,801 | 8,312,918 |
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 (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest and dividend income: | ||
Loans, including fees | $ 32,827 | $ 25,050 |
Securities: | ||
Taxable | 1,372 | 233 |
Tax-exempt | 7 | |
Money market funds | 30 | 34 |
Overnight deposits | 1,593 | 1,409 |
Other interest and dividends | 245 | 257 |
Total interest income | 36,067 | 26,990 |
Interest expense: | ||
Deposits | 5,767 | 4,646 |
Borrowed funds | 736 | 1,104 |
Trust preferred securities interest expense | 190 | 257 |
Subordinated debt interest expense | 405 | 405 |
Total interest expense | 7,098 | 6,412 |
Net interest income | 28,969 | 20,578 |
Provision (credit) for loan losses | 4,790 | (2,031) |
Net interest income after provision for loan losses | 24,179 | 22,609 |
Non-interest income: | ||
Service charges on deposit accounts | 1,081 | 819 |
Prepaid third-party debit card income | 1,621 | 1,257 |
Other service charges and fees | 627 | 278 |
Unrealized gain on equity securities | 36 | 39 |
Gain on sale of securities | 975 | |
Total non-interest income | 4,340 | 2,393 |
Non-interest expense: | ||
Compensation and benefits | 9,960 | 7,490 |
Bank premises and equipment | 2,500 | 1,335 |
Professional fees | 955 | 794 |
Technology costs | 3,806 | 1,385 |
Other expenses | 2,295 | 1,690 |
Total non-interest expense | 19,516 | 12,694 |
Net income before income tax expense | 9,003 | 12,308 |
Income tax expense | 2,906 | 3,777 |
Net income | $ 6,097 | $ 8,531 |
Earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 0.73 | $ 1.03 |
Diluted earnings per common share (in dollars per share) | $ 0.72 | $ 1.01 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | ||
Net income | $ 6,097 | $ 8,531 |
Other comprehensive income (loss): | ||
Unrealized holding gain (loss) arising during the period | 6,539 | 385 |
Reclassification adjustment for gain included in net income | (975) | |
Tax effect | (1,756) | (127) |
Net of tax | 3,808 | 258 |
Unrealized gain (loss) on cash flow hedges: | ||
Unrealized holding gain (loss) arising during the period | (1,060) | |
Tax effect | 334 | |
Net of tax | (726) | |
Total other comprehensive income | 3,082 | 258 |
Comprehensive Income | $ 9,179 | $ 8,789 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited) - USD ($) $ in Thousands | Class B Preferred StockPreviously Reported | Class B Preferred StockRestatement Adjustment | Class B Preferred Stock | Previously ReportedCommon Stock | Previously ReportedAdditional Paid-in Capital | Previously ReportedRetained Earnings | Previously ReportedAOCI (Loss), Net | Previously Reported | Restatement AdjustmentCommon Stock | Restatement AdjustmentAdditional Paid-in Capital | Restatement AdjustmentRetained Earnings | Restatement AdjustmentAOCI (Loss), Net | Restatement Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI (Loss), Net | Total |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Cumulative effect of adopting new accounting standard | ASU 2016-01 | $ (68) | |||||||||||||||||
Balance at Dec. 31, 2018 | $ 3 | $ 82 | $ 213,490 | $ 51,415 | $ (473) | $ 264,517 | ||||||||||||
Balance (in shares) at Dec. 31, 2018 | 272,636 | 8,217,274 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Employee and non-employee stock-based compensation | $ 686 | $ 686 | ||||||||||||||||
Employee and non-employee stock-based compensation (in shares) | 106,423 | |||||||||||||||||
Repurchase of shares for tax withholding for restricted stock vesting | (88) | (88) | ||||||||||||||||
Repurchase of shares for tax withholding for restricted stock vesting (in shares) | (2,881) | |||||||||||||||||
Net income | $ 8,531 | 8,531 | ||||||||||||||||
Cumulative effect of adopting new accounting standard | ASU 2016-01 | (68) | 68 | ||||||||||||||||
Cumulative effect of adopting new accounting standard | ASU 2014-09 | (117) | (117) | ||||||||||||||||
Other comprehensive income | 258 | 258 | ||||||||||||||||
Balance at Mar. 31, 2019 | $ 3 | $ 3 | $ 82 | $ 213,490 | $ 51,230 | $ (405) | $ 264,400 | $ 82 | 214,088 | 59,761 | (147) | 273,787 | ||||||
Balance (in shares) at Mar. 31, 2019 | 272,636 | 272,636 | 8,217,274 | 8,320,816 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Cumulative effect of adopting new accounting standard | ASU 2016-01 | 0 | |||||||||||||||||
Balance at Dec. 31, 2019 | $ 3 | $ 82 | 216,468 | 81,364 | 1,207 | 299,124 | ||||||||||||
Balance (in shares) at Dec. 31, 2019 | 272,636 | 8,312,918 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Restricted stock grants, net of forfeiture (in shares) | (12,244) | |||||||||||||||||
Employee and non-employee stock-based compensation | 812 | 812 | ||||||||||||||||
Repurchase of shares for tax withholding for restricted stock vesting | (579) | (579) | ||||||||||||||||
Repurchase of shares for tax withholding for restricted stock vesting (in shares) | (5,873) | |||||||||||||||||
Net income | 6,097 | 6,097 | ||||||||||||||||
Other comprehensive income | 3,082 | 3,082 | ||||||||||||||||
Balance at Mar. 31, 2020 | $ 3 | $ 82 | $ 216,701 | $ 87,461 | $ 4,289 | $ 308,536 | ||||||||||||
Balance (in shares) at Mar. 31, 2020 | 272,636 | 8,294,801 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 6,097 | $ 8,531 |
Adjustments to reconcile net income to net cash: | ||
Net depreciation amortization and accretion | 1,203 | 454 |
Provision (credit) for loan losses | 4,790 | (2,031) |
Net change in deferred loan fees | (270) | 731 |
Income tax | (1,423) | |
Gain on sale of available-for-sale securities | 975 | |
Employee and non-employee stock-based expense | 812 | 686 |
Gain on sale of loans | (18) | |
Dividends earned on CRA fund | (12) | |
Unrealized gain/loss of equity securities | (36) | (39) |
Net change in: | ||
Accrued interest receivable | (246) | (889) |
Accounts payable, accrued expenses and other liabilities | 2,678 | 9,205 |
Prepaid third-party debit cardholder balances | 12,776 | 7,838 |
Accrued interest payable | (83) | (298) |
Accounts receivable, net | 3,834 | 4,580 |
Receivable from prepaid card programs, net | (10,783) | (8,298) |
Prepaid expenses and other assets | 2,471 | 559 |
Net cash provided by operating activities | 20,815 | 21,029 |
Cash flows from investing activities: | ||
Loan originations, purchases and payments, net of recoveries | (102,966) | (233,318) |
Proceeds from loans sold | 9,968 | |
Redemptions of other investments | 1,350 | |
Purchases of other investments | (18) | (2,715) |
Proceeds from calls of securities available for sale | 5,000 | |
Proceeds from sales of securities available for sale | 20,975 | 0 |
Proceeds from paydowns and maturities of securities available for sale | 15,438 | 1,042 |
Proceeds from paydowns and maturities of securities held to maturity | 194 | 172 |
Purchase of derivative contract | (2,980) | |
Purchase of premises and equipment, net | (3,785) | 48 |
Net cash used in investing activities | (58,174) | (233,421) |
Cash flows from financing activities: | ||
Proceeds from FHLB advances | 350,000 | |
Repayments of FHLB advances | (320,000) | |
Redemption of common stock for tax withholdings for restricted stock vesting | (579) | (88) |
Payments of secured borrowings | (1,275) | |
Net increase in deposits | 230,918 | 305,576 |
Net cash provided by financing activities | 229,064 | 335,488 |
Increase in cash and cash equivalents | 191,705 | 123,096 |
Cash and cash equivalents at the beginning of the period | 390,723 | 232,950 |
Cash and cash equivalents at the end of the period | 582,428 | 356,046 |
Cash paid for: | ||
Interest | 7,181 | 6,395 |
Income Taxes | $ 1,850 | $ 1,200 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2020 | |
ORGANIZATION | |
ORGANIZATION | NOTE 1 - ORGANIZATION Metropolitan Bank Holding Corp., a New York corporation, (the “Company”) is a bank holding company whose principal activity is the ownership and management of Metropolitan Commercial Bank (the “Bank”), its wholly-owned subsidiary. The Bank’s primary market is the New York metropolitan area. The Bank offers a traditional range of services to individuals, businesses and others needing banking services. Its primary lending products are commercial real estate loans and commercial and industrial loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from the cash flows from the operations of the business. The Bank’s primary deposit products are checking, savings, and term deposit accounts, and its deposit accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to the maximum amounts allowed by law. The Company and the Bank are subject to the regulations of certain state and federal agencies and, accordingly, are periodically examined by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Company’s business is affected by state and federal legislation and regulations. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 2 – BASIS OF PRESENTATION The accounting and reporting policies of the Company conform with U.S. generally accepted accounting principles (“GAAP”) and predominant practices within the U.S. banking industry. All intercompany balances and transactions have been eliminated. The Unaudited Consolidated Financial Statements, which include the accounts of the Company and the Bank, have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10‑Q and Article 8 of Regulation S-X. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The Unaudited Consolidated Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. The accounting and reporting policies of the Company conform with U.S generally accepted accounting principles and predominant practices within the U.S. banking industry. Certain prior-year amounts have been reclassified to conform to current year’s presentation. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or for any other period. Management believes that results of future periods are rendered particularly unpredictable due to the Novel Coronavirus (“COVID-19”). To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual results could differ. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, including COVID-19-related changes, and changes in the financial condition of borrowers. The Company has evaluated goodwill for impairment resulting from COVID-19 and has concluded that no impairment existed at March 31, 2020. Management will continue to monitor if a triggering event requiring further goodwill impairment testing has occurred. The Company could experience a material adverse effect on its business as a result of the impact of the COVID-19 pandemic, and the resulting governmental actions to curtail its spread. It is at least reasonably possible that information that was available at the date of the financial statements will change in the near term due to the COVID-19 pandemic and that the effect of the change would be material to the financial statements. The extent to which the COVID-19 pandemic will impact our estimates and assumptions is highly uncertain at this time. See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 1A. Risk Factors” in this Report for further discussion on the impact of COVID-19. The unaudited consolidated financial statements presented in this report should be read in conjunction with the Company’s audited consolidated financial statements and notes to audited consolidated financial statements included in the Company’s Annual Report on Form 10‑K (“Annual Report”) for the year ended December 31, 2019 as filed with the Securities and Exchange Commission (“SEC”). The following accounting policy represents a material update and addition to the accounting policies previously disclosed in the Company’s Annual Report for the fiscal year ended December 31, 2019 as filed with the SEC. Derivatives: The Company has entered into an interest rate cap derivative that, based on the Company’s intentions and belief as to the likely effectiveness as a hedge, was designated as a cash flow hedge. A cash flow hedge is a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in accumulated other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of the derivative that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. The amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedged transactions at the inception of the hedging relationship. The documentation includes linking the cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions or group of forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, or treatment of the derivative as a hedge is no longer appropriate or intended. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in accumulated other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. If the forecasted transaction is deemed probable to not occur, the derivative gain or loss reported in accumulated other comprehensive income is reclassified into current earnings. |
SUMMARY OF RECENT ACCOUNTING PR
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 – SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS Pursuant to the Jumpstart Our Business Startups Act (“JOBS Act”), an Emerging Growth Company (“EGC”) is permitted to elect to adopt new accounting guidance using adoption dates of nonpublic entities. The Company elected delayed effective dates of 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 Financial Accounting Standards Board (“FASB”) deferred the effective date of the ASU by one year which resulted in ASU 2014‑09 being effective for the Company beginning January 1, 2019. The Company adopted the new revenue guidance as of January 1, 2019, using the five-step model prescribed by the ASU and described above. Management evaluated the Company’s revenue streams and recorded an adjustment to opening retained earnings of $117,000 in accordance with the modified retrospective method allowed by the ASU. In January 2016, the FASB issued ASU 2016‑01, an amendment to Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825‑10). The objectives of the ASU are to: (1) require equity investments to be measured at fair value, with changes in fair value recognized in net income, (2) simplify the impairment assessment of equity investments without readily determinable fair values, (3) eliminate the requirement to disclose methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost on the balance sheet, (4) require the use of the exit price notion when measuring the fair value of financial instruments, and (5) clarify the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. In February 2018, the FASB issued ASU 2018‑03, Technical Corrections and Improvements to Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Liabilities, an amendment to ASU 2016‑01. The amendments clarify certain aspects of the guidance issued in ASU 2016‑01. The Company adopted these ASUs on January 1, 2019. The Company evaluated the impact of ASU 2016‑01 and 2018‑03 and recorded $68,000, net of tax, as an adjustment to opening retained earnings and accumulated other comprehensive income in accordance with the modified retrospective method allowed by the ASU. 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. In October 2019, the FASB approved a delay for the implementation of the ASU for non-public business entities (“PBE”) and smaller reporting companies (“SRC”). Accordingly, as an EGC and an SRC, the Company’s effective date for the implementation of the ASU will be December 31, 2021. 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 impacts of ASU 2016‑02 on its consolidated financial statements. 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. In October 2019, the FASB approved a delay for the implementation of the ASU for non-PBEs and SRCs. Accordingly, as an EGC and an SRC, the Company’s effective date for the implementation of the ASU will be January 1, 2023. Management has established a committee to evaluate the impact of ASU 2016‑13 on the Company’s financial statements. The Company expects to recognize a one-time cumulative adjustment 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 that ASU 2017‑04 will not have a material impact on its consolidated financial statements. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2020 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE 4 - INVESTMENT SECURITIES The following tables summarize the amortized cost and fair value of securities available for sale and securities held to maturity at March 31, 2020 and December 31, 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized gains and losses (in thousands): Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At March 31, 2020 Cost Gains Losses Fair Value Debt securities available for sale: Residential mortgage securities $ 163,163 $ 5,951 $ — $ 169,114 Commercial mortgage securities 29,371 1,374 (5) 30,740 Total securities available-for-sale $ 192,534 $ 7,325 $ (5) $ 199,854 Held-to-maturity securities: Residential mortgage securities $ 3,520 $ 68 $ — $ 3,588 Total securities held-to-maturity $ 3,520 $ 68 $ — $ 3,588 Equity investments: CRA Mutual Fund $ 2,270 $ 2 $ — $ 2,272 Total non-trading equity investment securities $ 2,270 $ 2 $ — $ 2,272 Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2019 Cost Gains Losses Fair Value Debt securities available for sale: Residential mortgage securities $ 175,902 $ 1,478 $ (117) $ 177,263 Commercial mortgage securities 32,284 206 (18) 32,472 U.S. Government agency securities 25,000 207 — 25,207 Total securities available for sale $ 233,186 $ 1,891 $ (135) $ 234,942 Held-to-maturity securities: Residential mortgage securities 3,722 9 (19) 3,712 Total securities held to maturity $ 3,722 $ 9 $ (19) $ 3,712 Equity investments: CRA Mutual Fund 2,258 — (34) 2,224 Total non-trading equity investment securities $ 2,258 $ — $ (34) $ 2,224 For the three months ended March 31, 2020, U.S. Agency Securities classified as available-for-sale were called and sold in the amounts of $5.0 million and $21.0 million, respectively. There were no sales or calls of securities for the three months ended March 31, 2019. The proceeds from sales and calls of securities and associated gains for the three months ended March 31, 2020 are listed below (in thousands): Three months ended March 31, 2020 2019 Proceeds $ 20,975 $ — Gross gains $ 975 $ — Tax impact $ (387) $ — 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 are shown separately. The following tables summarize, by contractual maturity, the amortized cost and fair value of debt securities at March 31, 2020 and December 31, 2019. There were no debt securities with a single contractual maturity at March 31, 2020. At March 31, 2020 Held-to-Maturity Available-for-Sale ( in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ — $ — $ — $ — One to five years — — — — Five to ten years — — — — After ten years — — — — Total $ — $ — $ — $ — Residential mortgage securities $ 3,520 $ 3,588 163,163 169,114 Commercial mortgage securities — — 29,371 30,740 Total Securities $ 3,520 $ 3,588 $ 192,534 $ 199,854 At December 31, 2019 Held-to-Maturity Available-for-Sale ( in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ — $ — $ — $ — One to five years — — — — Five to ten years — — 25,000 25,207 Due after ten years — — — — Total $ — $ — $ 25,000 $ 25,207 Residential mortgage securities $ 3,722 $ 3,712 $ 175,902 $ 177,263 Commercial mortgage securities — — 32,284 32,472 Total Securities $ 3,722 $ 3,712 $ 233,186 $ 234,942 There were no securities pledged as collateral at March 31, 2020. At December 31, 2019, there were $126.2 million of securities available for sale pledged as collateral for certain deposits. At March 31, 2020 and December 31, 2019, all of the residential mortgage securities and commercial mortgage securities held by the Bank were issued by U.S. Government-sponsored entities and agencies. Securities with unrealized/unrecognized losses at March 31, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized/unrecognized loss position, are as follows (in thousands): Less than 12 Months 12 months or more Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At March 31, 2020 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available for sale: Residential mortgage securities $ — $ — $ — $ — $ — $ — Commercial mortgage securities 388 (5) — — 388 (5) Total securities available for sale $ 388 $ (5) $ — $ — $ 388 $ (5) Held-to-Maturity Securities: Residential mortgage securities $ — $ — $ — $ — $ — $ — Total securities held to maturity $ — $ — $ — $ — $ — $ — Equity investments: CRA Mutual Fund $ — $ — $ — $ — $ — $ — Total equity investment securities $ — $ — $ — $ — $ — $ — Less than 12 Months 12 months or more Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At December 31, 2019 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available for sale: Residential mortgage securities $ 22,850 $ (52) $ 6,728 $ (65) $ 29,578 $ (117) Commercial mortgage securities 9,911 (18) - - 9,911 (18) Total securities available-for-sale $ 32,761 $ (70) $ 6,728 $ (65) $ 39,489 $ (135) Held-to-Maturity Securities: Residential mortgage securities $ — $ — $ 1,470 $ (19) $ 1,470 $ (19) Total securities held to maturity $ — $ — $ 1,470 $ (19) $ 1,470 $ (19) Equity investments: CRA Mutual Fund $ — $ — $ 2,224 $ (34) $ 2,224 $ (34) Total equity investment securities $ — $ — $ 2,224 $ (34) $ 2,224 $ (34) The unrealized losses on securities are primarily due to the changes in market interest rates subsequent to purchase. The Bank does not consider these securities to be other-than-temporarily impaired at March 31, 2020 and December 31, 2019 since the decline in market value is attributable to changes in interest rates and not credit quality. In addition, the Bank does not intend to sell and does not believe that it is more likely than not that it will be required to sell these investments until there is a full recovery of the unrealized loss, which may be at maturity. As a result, no impairment loss was recognized during the three months ended March 31, 2020 or for the year ended December 31, 2019. At March 31, 2020 and December 31, 2019, 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 AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2020 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE 5 – LOANS AND ALLOWANCE FOR LOAN LOSSES Loans, net of deferred costs and fees, consist of the following as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Real estate Commercial $ 1,729,386 $ 1,668,236 Construction 41,162 30,827 Multifamily 379,342 375,611 One-to-four family 75,610 82,670 Total real estate loans 2,225,500 2,157,344 Commercial and industrial 482,187 448,619 Consumer 63,112 71,956 Total loans 2,770,799 2,677,919 Deferred fees (4,700) (4,970) Loans, net of deferred fees and unamortized costs 2,766,099 2,672,949 Allowance for loan losses (30,924) (26,272) Balance at the end of the period $ 2,735,175 $ 2,646,677 The portfolio segments in the tables below represent the categories that the Bank uses to determine its Allowance for Loan Losses (“ALLL”). As part of the determination of the ALLL for the first quarter of 2020, the Bank considered the effects of COVID-19 on macro-economic conditions such as sharply increasing unemployment rates and the shut-down of all non-essential businesses. The Bank also analyzed the impact of COVID-19 on its primary market, which is the New York metropolitan area, as well as the impact on the Bank’s market sectors and its specific clients (see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Report for further discussion on the impact of COVID-19). As part of its estimation of an adjustment to the ALLL due to COVID-19, the Bank identified those market sectors or industries that were more likely to be affected, such as hospitality, transportation and outpatient care centers. To determine the potential impact on the Bank’s customers, particularly in these industries, management primarily relied on the results of semi-annual stress tests that have been performed for the Bank by a third-party. The scenarios used in these stress tests include significant revenue declines in a borrower’s business as well as reductions in its operating cash flows and the impact on its ability to repay its loans. Using the stress test results, management estimated the probability of default and loss-given-default for the various loan categories at March 31, 2020 and assigned a weighting to each scenario. Based on this analysis, management estimated the potential impact of a stressed environment, such as the one resulting from COVID-19, and the adjustment to the ALLL as of March 31, 2020. In addition to the stress tests, the Bank also established an additional qualitative loss factor solely related to the impact of COVID-19 and included that analysis in its ALLL calculations. As a result of management’s assessment, the Bank recorded an additional loan loss provision of $3.1 million in the first quarter of 2020. However, this is a period of great uncertainty. The impact of COVID-19 is likely to be felt over the next several quarters. As such, significant adjustments to the ALLL may be required as the full impact of COVID-19 on the Bank’s borrowers becomes known. The following tables present the activity in the ALLL by segment, including the impact of COVID-19 for the first quarter of 2020, for the three months ended March 31, 2020 and 2019 (in thousands): Commercial Commercial Multi One-to-four COVID-19 Three months ended March 31, 2020 Real Estate & Industrial Construction Family Family Consumer Impact Total Allowance for loan losses: Beginning balance $ 15,317 $ 7,070 $ 411 $ 2,453 $ 267 $ 754 $ — $ 26,272 Provision/(credit) for loan losses 574 1,098 138 65 (76) (65) 3,056 4,790 Loans charged-off — (13) — — — (188) — (201) Recoveries — 58 — — — 5 — 63 Total ending allowance balance $ 15,891 $ 8,213 $ 549 $ 2,518 $ 191 $ 506 $ 3,056 $ 30,924 Commercial Commercial Multi One-to-four Three months ended March 31, 2019 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Beginning balance $ 9,037 $ 6,257 $ 625 $ 2,047 $ 228 $ 748 $ 18,942 Provision/(credit) for loan losses 1,848 (4,077) 22 64 80 32 (2,031) Loans charged-off — (273) — — — (74) (347) Recoveries — 4,270 — — — — 4,270 Total ending allowance balance $ 10,885 $ 6,177 $ 647 $ 2,111 $ 308 $ 706 $ 20,834 Net charge-offs were $138,000 for the three months ended March 31, 2020, as compared to net recoveries of $3.9 million for the three months ended March 31, 2019. Included in the net recoveries during the three months ended March 31, 2019 were $4.2 million in recoveries related to taxi medallion loans charged-off in 2016 and 2017. The following tables present the balance in the ALLL and the recorded investment in loans by portfolio segment, including the impact of COVID-19 for the first quarter of 2020, based on impairment method as of March 31, 2020 and December 31, 2019 (in thousands): Commercial Commercial Multi One-to-four COVID-19 At March 31, 2020 Real Estate & Industrial Construction Family Family Consumer Impact Total Allowance for loan losses: Individually evaluated for impairment $ — $ 805 $ — $ — $ 60 $ 116 $ — $ 981 Collectively evaluated for impairment 15,891 7,408 549 2,518 131 390 3,056 29,943 Total ending allowance balance $ 15,891 $ 8,213 $ 549 $ 2,518 $ 191 $ 506 $ 3,056 $ 30,924 Loans: Individually evaluated for impairment $ 363 $ 5,801 $ — $ — $ 1,028 $ 369 $ — $ 7,561 Collectively evaluated for impairment 1,729,023 476,386 41,162 379,342 74,582 62,743 — 2,763,238 Total ending loan balance $ 1,729,386 $ 482,187 $ 41,162 $ 379,342 $ 75,610 $ 63,112 $ — $ 2,770,799 Commercial Commercial Multi One-to-four At December 31, 2019 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ 805 $ — $ — $ 64 $ 311 $ 1,180 Collectively evaluated for impairment 15,317 6,265 411 2,453 203 443 25,092 Total ending allowance balance $ 15,317 $ 7,070 $ 411 $ 2,453 $ 267 $ 754 $ 26,272 Loans: Individually evaluated for impairment $ 367 $ 1,047 $ — $ — $ 3,384 $ 728 $ 5,526 Collectively evaluated for impairment 1,667,869 447,572 30,827 375,611 79,286 71,228 2,672,393 Total ending loan balance $ 1,668,236 $ 448,619 $ 30,827 $ 375,611 $ 82,670 $ 71,956 $ 2,677,919 The following tables present loans individually evaluated for impairment recognized as of March 31, 2020 and December 31, 2019 (in thousands): Unpaid Principal Allowance for Loan At March 31, 2020 Balance Recorded Investment Losses Allocated With an allowance recorded: One-to-four family $ 626 $ 496 $ 60 Consumer 373 369 116 Commercial & industrial 1,047 1,047 805 Total $ 2,046 $ 1,912 $ 981 Without an allowance recorded: One-to-four family $ 679 $ 532 $ — Commercial real estate 363 363 — Commercial & industrial 4,754 4,754 — Total $ 5,796 $ 5,649 $ — Unpaid Principal Allowance for Loan At December 31, 2019 Balance Recorded Investment Losses Allocated With an allowance recorded: One-to-four family $ 633 $ 503 $ 64 Consumer 731 728 311 Commercial & industrial 1,047 1,047 805 Total $ 2,411 $ 2,278 $ 1,180 Without an allowance recorded: One-to-four family 3,028 $ 2,881 $ — Commercial real estate 367 367 — Total $ 3,395 $ 3,248 $ — The recorded investment in loans excludes accrued interest receivable and loan origination fees. The following tables present the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans as of and for the three months ended March 31, 2020 and 2019 (in thousands): Average Recorded Interest Income Three months ended March 31, 2020 Investment Recognized With an allowance recorded: One-to-four family $ 500 $ 5 Consumer 548 5 Commercial & industrial 1,047 — Total $ 2,095 $ 10 Without an allowance recorded: One-to-four family $ 1,706 $ 7 Commercial real estate 365 4 Commercial & industrial 2,377 — Total $ 4,448 $ 11 Average Recorded Interest Income Three months ended March 31, 2019 Investment Recognized With an allowance recorded: One-to-four family $ 263 $ 3 Consumer 97 2 Total $ 360 $ 5 Without an allowance recorded: Commercial real estate $ 381 $ 4 One-to-four family 811 11 Total $ 1,192 $ 15 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 non-accrual loans and troubled debt restructurings (“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. For discussion on modification of loans to borrowers impacted by COVID-19, refer to the “Troubled Debt Restructuring” section herein. The following tables present the recorded investment in non-accrual loans and loans past due over 90 days and still accruing, by class of loans, as of March 31, 2020 and December 31, 2019 (in thousands): At March 31, 2020 Non-accrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ 5,801 $ 205 One-to-four family — — Consumer 335 — Total $ 6,136 $ 205 At December 31, 2019 Non-accrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ 1,047 $ 408 One-to-four family 2,345 — Consumer 693 — Total $ 4,085 $ 408 All TDRs at March 31, 2020 and December 31, 2019 were performing in accordance with their restructured terms. Interest income that would have been recorded for the three months ended March 31, 2020 and 2019, had non-accrual loans been current according to their original terms, was immaterial. The following tables present the aging of the recorded investment in past due loans by class of loans as of March 31, 2020 and December 31, 2019 (in thousands): Greater 30-59 60-89 than 90 Total past Current At March 31, 2020 Days Days days due loans Total Commercial real estate $ — $ — $ — $ — $ 1,729,386 $ 1,729,386 Commercial & industrial 379 162 6,006 6,547 475,640 482,187 Construction — — — — 41,162 41,162 Multifamily — — — — 379,342 379,342 One-to-four family — — — — 75,610 75,610 Consumer 102 — 335 437 62,675 63,112 Total $ 481 $ 162 $ 6,341 $ 6,984 $ 2,763,815 $ 2,770,799 Greater 30-59 60-89 than 90 Total past Current At December 31, 2019 Days Days days due loans Total Commercial real estate $ — $ — $ — $ — $ 1,668,236 $ 1,668,236 Commercial & industrial 346 — 1,455 1,801 446,818 448,619 Construction — — — — 30,827 30,827 Multifamily — — — — 375,611 375,611 One-to-four family — — — — 82,670 82,670 Consumer 636 14 693 1,343 70,613 71,956 Total $ 982 $ 14 $ 2,148 $ 3,144 $ 2,674,775 $ 2,677,919 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 TDRs and classified as impaired. On March 22, 2020, the banking regulators and the FASB issued guidance to financial institutions who are working with borrowers affected by COVID-19 (“COVID-19 Guidance”). The guidance indicated that regulatory agencies will not criticize institutions for working with borrowers and will not direct banks to automatically categorize all COVID-19 related loan modifications as TDRs. In addition, the COVID-19 Guidance noted that modification or deferral programs mandated by the federal or a state government related to COVID-19 would not be in the scope of Accounting Standards Codification Subtopic 310-40 – Receivables – Troubled Debt Restructurings by Creditors (“ASC 310-40”), such as a state program that requires all institutions within that state to suspend mortgage payments for a specified period. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. Section 4013 of the CARES Act, “Temporary Relief from Troubled Debt Restructurings,” allows banks to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. A bank may elect to account for modifications on certain loans under Section 4013 of the CARES Act or, if a loan modification is not eligible under Section 4013, a bank may use the criteria in the COVID-19 Guidance to determine when a loan modification is not a TDR in accordance with ASC 310-40. For further details on the COVID-19-specific requests for loan modifications and discussion on the impact of COVID-19 on the Bank, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Report. All loans classified as TDRs as of March 31, 2020 were restructured prior to the introduction of the COVID-19 Guidance. Loans that have been modified in accordance with the COVID-19 Guidance and the CARES Act, subsequent to March 31, 2020 and as of April 15, 2020, which is the latest practicable date for which the Bank has information, amounted to $401.7 million. Included in impaired loans at March 31, 2020 and December 31, 2019 were $1.4 million of loans modified as TDRs. The Bank allocated specific reserves amounting to $60,000 and $80,000 for TDRs as of March 31, 2020 and December 31, 2019, respectively. There were no loans modified as a TDR during the three months ended March 31, 2020 or the year ended December 31, 2019. The Bank has not committed to lend additional amounts as of March 31, 2020 to customers with outstanding loans that are classified as TDRs. During the three months ended March 31, 2020 and March 31, 2019 there were no payment defaults on any loans previously identified as TDRs. 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. The following tables present the recorded investment in TDRs by class of loans as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Troubled debt restructurings: Real Estate: Commercial real estate $ 363 $ 367 One-to-four family 1,028 1,039 Consumer 34 35 Total troubled debt restructurings $ 1,425 $ 1,441 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 generally analyzes all loans over $500,000, other than one-to-four family and consumer loans, individually by classifying the loans as to credit risk at least annually. For one-to-four family loans and consumer loans, the Bank evaluates credit quality based on the aging status of the loan and by performance status. 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 - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above 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 (in thousands): Special At March 31, 2020 Pass Mention Substandard Doubtful Total Commercial real estate $ 1,729,023 $ 363 $ — $ — $ 1,729,386 Commercial & industrial 476,181 — 4,959 1,047 482,187 Construction 41,162 — — — 41,162 Multifamily 379,342 — — — 379,342 Total $ 2,625,708 $ 363 $ 4,959 $ 1,047 $ 2,632,077 Special At December 31, 2019 Pass Mention Substandard Doubtful Total Commercial real estate $ 1,667,869 $ 367 $ — $ — $ 1,668,236 Commercial & industrial 446,612 — 960 1,047 448,619 Construction 30,827 — — — 30,827 Multi-family 375,611 — — — 375,611 Total $ 2,520,919 $ 367 $ 960 $ 1,047 $ 2,523,293 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 6 – EARNINGS PER SHARE The computation of basic and diluted earnings per share is shown below (dollars in thousands, except share data): Three months ended March 31, 2020 2019 Basic Net income per consolidated statements of income $ 6,097 $ 8,531 Less: Earnings allocated to participating securities (65) (135) Net income available to common stockholders $ 6,032 $ 8,396 Weighted average common shares outstanding including participating securities 8,304,205 8,281,325 Less: Weighted average participating securities (88,246) (130,873) Weighted average common shares outstanding 8,215,959 8,150,452 Basic earnings per common share $ 0.73 $ 1.03 Diluted Net income allocated to common stockholders $ 6,032 $ 8,396 Weighted average common shares outstanding for basic earnings per common share 8,215,959 8,150,452 Add: Dilutive effects of assumed exercise of stock options 131,159 114,740 Add: Dilutive effects of assumed vesting of performance based restricted stock and restricted stock units 65,664 20,028 Average shares and dilutive potential common shares 8,412,782 8,285,220 Dilutive earnings per common share $ 0.72 $ 1.01 All stock options were considered in computing diluted earnings per common share for the three months ended March 31, 2020 and 2019. |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 3 Months Ended |
Mar. 31, 2020 | |
STOCK COMPENSATION PLAN | |
STOCK COMPENSATION PLAN | NOTE 7 - STOCK COMPENSATION PLAN Equity Incentive Plan On May 28, 2019, the Company's 2019 Equity Incentive Plan (the “2019 EIP”) was approved by stockholders of the Company. Under the 2019 EIP, the maximum number of shares of stock that may be delivered to participants in the form of restricted stock, restricted stock units and stock options, including incentive stock options (“ISO”) and non-qualified stock options, is 340,000, plus any awards that are forfeited under the 2009 Equity Incentive Plan (the “2009 Plan”) after the effective date of the 2019 EIP, which was May 28, 2019. Under the 2009 Plan, there are 468,382 shares that are subject to outstanding and/or unexercised awards that have been granted and, if forfeited after May 28, 2019, such shares will be available to be granted under the 2019 EIP. The 2009 Plan expired on May 18, 2019 and, accordingly, the 628,719 shares that were unauthorized and unissued under the 2009 Plan have expired and may not be granted (and such shares of stock did not roll over to the 2019 EIP). Under the terms of the 2019 EIP, a stock option cannot have an exercise price that is less than 100% of the fair market value of the shares covered by the stock option on the date of grant. In the case of an ISO granted to a 10% stockholder, the exercise price shall not be less than 110% of the fair market value of the shares covered by the stock option on the date of grant. 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% stockholder, the exercise period shall not exceed five years from the date of grant. The 2019 EIP contains a double trigger change in control feature, providing for an acceleration of vesting upon an involuntary termination of employment simultaneous with or following a change in control. The fair value of each stock option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. 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. A summary of the status of the Company’s stock options and the changes during the three months ended March 31, 2020 is presented below: Three Months Ended March 31, 2020 Number of Weighted Average Options Exercise Price Outstanding, beginning of period 231,000 $ 18.00 Granted — — Exercised — — Cancelled/forfeited — — Outstanding, end of period 231,000 $ 18.00 Options vested and exercisable at end of period 231,000 $ 18.00 Weighted average remaining contractual life (years) 4.13 There was no unrecognized compensation cost related to stock options for the three months ended March 31, 2020 or the year ended December 31, 2019. There was no compensation cost related to stock options for the three months ended March 31, 2020 and 2019. The following table summarizes information about stock options outstanding at March 31, 2020: At March 31, 2020 Range of Average Weighted Average Weighted Average Weighted Average Exercise Prices Number Outstanding at Remaining Contractual Life Exercise Price Intrinsic Price per Share $10 – 20 231,000 4.13 $ 18.00 $ 8.93 $21 – 30 — — $ — $ — $10 – 30 231,000 4.13 $ 18.00 $ 8.93 There were no stock options exercised during the three months ended March 31, 2020. Restricted Stock Awards and Restricted Stock Units The Company issued restricted stock awards under the 2009 Plan and restricted stock units under the 2019 Plan (collectively, “restricted stock grants”) to certain key personnel. Each restricted stock grant vests based on the vesting schedule outlined in the restricted stock grant agreement. Restricted stock grants are subject to forfeiture if the holder is not employed by the Company on the vesting date. In the first quarter of 2020, 60,307 restricted stock units were issued to certain key personnel. These shares vest one-third each year for three years beginning December 15, 2020. Total compensation cost that has been charged against income for restricted stock grants was $354,000 and $229,000 for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, there was $3.8 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 2.40 years. Additionally, on January 1, 2019, 38,900 restricted shares were granted to members of the Board of Directors in lieu of retainer fees for three years of service. These shares vest one-third each year for three years beginning December 31, 2019. Total expense for these awards was $100,000 for the three months ended March 31, 2020 and 2019. As of March 31, 2020, there was $700,000 of unrecognized expense related to these grants. The cost is expected to be recognized over a weighted-average period of 1.75 years. The following table summarizes the changes in the Company’s restricted stock grants for the three months ended March 31, 2020: Three Months Ended March 31, 2020 Weighted Average Number of Shares Grant Date Fair Value Outstanding, beginning of period 104,838 $ 29.86 Granted 60,307 45.29 Forfeited (12,244) 29.63 Vested (19,541) 19.39 Outstanding at end of period 133,360 $ 38.39 The total fair value of shares vested was $743,957 during the three months ended March 31, 2020. Performance Based Stock Awards During the first quarter of 2018, the Company established a long term incentive award program under the 2009 Plan. For each award, Performance Restricted Share Units (“PRSUs”) are eligible to be earned over a three-year performance period based on personal performance and the Company’s relative performance, in each case as compared to certain measurement goals that were established at the onset of the performance period. These awards were accounted for in accordance with guidance prescribed in ASC Topic 718, Compensation – Stock Compensation. 90,000 PRSUs were awarded under the program. The earned units will be granted at the end of the three-year performance period. The following table summarizes the changes in the Company’s non-vested PRSU awards for the three months ended March 31, 2020: For the three months ended March 31, 2020 Weighted average service inception date fair value of award shares $ 4,064,295 Minimum aggregate share payout 12,000 Maximum aggregate share payout 90,000 Likely aggregate share payout 90,000 Compensation expense recognized $ 358,000 Total compensation cost that has been charged against income for this plan was $358,000 for the three months ended March 31, 2020 and 2019. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 8 - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. The Company did not have any liabilities that were measured at fair value at March 31, 2020 and December 31, 2019. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as certain impaired loans and goodwill. These non-recurring fair value adjustments generally involve the write-down of individual assets due to impairment losses. Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Assets and Liabilities Measured on a Recurring Basis Assets measured on a recurring basis are limited to the Bank’s available-for-sale securities (“AFS”) portfolio, equity investments and interest rate cap derivative contract. The AFS portfolio is carried at estimated fair value with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income or loss in shareholders’ equity. Equity investments are carried at estimated fair value with changes in fair value reported as unrealized gain/(loss) on the statement of operations. The interest rate cap derivative contract is carried at estimated fair value with changes in fair value reported as accumulated other comprehensive income or loss in shareholders’ equity. The fair values for substantially all of these assets are obtained monthly from an independent nationally recognized pricing service. On a quarterly basis, the Bank assesses the reasonableness of the fair values obtained by reference to a second independent nationally recognized pricing service. Based on the nature of these securities, the Bank’s independent pricing service provides prices which are categorized as Level 2 since quoted prices in active markets for identical assets are generally not available for the majority of securities in the Bank’s portfolio. Various modeling techniques are used to determine pricing for the Bank’s mortgage-backed securities, including option pricing and discounted cash flow models. The inputs to these models include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. On an annual basis, the Bank obtains the models, inputs and assumptions utilized by its pricing service and reviews them for reasonableness. Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) At March 31, 2020 Residential mortgage securities $ 169,114 $ — $ 169,114 $ — Commercial mortgage securities 30,740 — 30,740 — CRA Mutual Fund 2,272 2,272 — — Interest rate cap derivative 1,892 — 1,892 — Fair Value Measurement using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) At December 31, 2019 Residential mortgage securities $ 177,263 $ — $ 177,263 $ — Commercial mortgage securities 32,472 — 32,472 — U.S. Government agency securities 25,207 — 25,207 — CRA Mutual Fund 2,224 2,224 — — There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2020 and 2019. There were no material assets measured at fair value on a non-recurring basis at March 31, 2020 and December 31, 2019. The Bank has engaged an independent pricing service provider to provide the fair values of its financial assets and liabilities measured at amortized cost. This provider follows FASB’s exit pricing guidelines, as required by ASU 2016-01, when calculating the fair market value. Carrying amount and estimated fair values of financial instruments at March 31, 2020 and December 31, 2019 were as follows (in thousands): Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At March 31, 2020 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 12,501 $ 12,501 $ — $ — $ 12,501 Overnight deposits 569,927 569,927 — — 569,927 Securities available for sale 199,854 — 199,854 — 199,854 Securities held to maturity 3,520 — 3,588 — 3,588 Equity investments 2,272 2,272 — — 2,272 Loans, net 2,735,175 — — 2,732,185 2,732,185 Other investments — — — — — FRB Stock 7,335 N/A N/A N/A N/A FHLB Stock 8,122 N/A N/A N/A N/A SBA Loan Fund 5,000 N/A N/A N/A N/A Disability Fund 500 — 500 — 500 Time deposits at banks 498 498 — — 498 Interest rate cap derivative 1,892 — 1,892 — 1,892 Accrued interest receivable 9,108 — 503 8,605 9,108 Financial liabilities: Non-interest-bearing demand deposits $ 1,250,584 $ 1,250,584 $ — $ — $ 1,250,584 Money market and savings deposits 1,673,452 1,673,452 — — 1,673,452 Time deposits 97,656 — 98,846 — 98,846 Federal Home Loan Bank of New York advances 144,000 — 144,813 — 144,813 Trust preferred securities payable 20,620 — — 20,024 20,024 Subordinated debt, net of issuance cost 24,615 — 24,125 — 24,125 Accrued interest payable 1,146 9 941 196 1,146 Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At December 31, 2019 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 9,619 $ 9,619 $ — $ — $ 9,619 Overnight deposits 381,104 381,104 — — 381,104 Securities available for sale 234,942 — 234,942 — 234,942 Securities held to maturity 3,722 — 3,712 — 3,712 Equity investments 2,224 2,224 — — 2,224 Loans, net 2,646,677 — — 2,609,233 2,609,233 Other investments FRB Stock 7,317 N/A N/A N/A N/A FHLB Stock 8,122 N/A N/A N/A N/A SBA Loan Fund 5,000 N/A N/A N/A N/A Disability Fund 500 — 500 — 500 Time deposits at banks 498 498 — — 498 Accrued interest receivable 8,862 — 544 8,318 8,862 Financial liabilities: Non-interest-bearing demand deposits $ 1,090,479 $ 1,090,479 $ — $ — $ 1,090,479 Money market and savings deposits 1,589,920 1,589,920 — — 1,589,920 Time deposits 110,375 — 110,800 — 110,800 Federal Home Loan Bank of New York advances 144,000 — 144,229 — 144,229 Trust preferred securities payable 20,620 — — 20,011 20,011 Subordinated debt, net of issuance cost 24,601 — 25,375 — 25,375 Accrued interest payable 1,229 14 1,009 206 1,229 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 9 - ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents changes in Accumulated Other Comprehensive Income, net of tax, for the three months ended March 31, 2020 and 2019 (in thousands): Three months ended March 31, 2020 2019 Beginning balance $ 1,207 $ (473) Cumulative effect of adopting new accounting standard ASU 2016-01, net of taxes — 68 Balance net of cumulative effect of adopting ASU 2016-01 $ 1,207 $ (405) Other comprehensive income, net of tax: Unrealized gain (loss) on securities available for sale Unrealized holding gain (loss) arising during the period $ 6,539 $ 385 Reclassification adjustment for gain included in net income (975) — Tax effect (1,756) (127) Net of tax $ 3,808 $ 258 Unrealized gain (loss) on cash flow hedges Unrealized holding gain (loss) arising during the period $ (1,060) $ — Tax effect 334 — Net of tax $ (726) $ — Net current period other comprehensive income $ 3,082 $ 258 Ending balance $ 4,289 $ (147) The following table shows the amounts reclassified out of each component of accumulated other comprehensive income for the gain on the sale of securities during the first quarter of 2020 (in thousands): March 31, 2020 2019 Affected line item in the Consolidated Statements of Operations Amounts reclassified from accumulated other comprehensive income $ 975 $ — Gain on sale of securities Income tax expense (387) — Income tax expense Total reclassifications, net of income tax $ 588 $ — |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 3 Months Ended |
Mar. 31, 2020 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | NOTE 10 - 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 non-performance 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 following off-balance-sheet financial instruments, whose contract amounts represent credit risk, are outstanding at March 31, 2020 and December 31, 2019 (in thousands): At March 31, 2020 At December 31, 2019 Variable Variable Fixed Rate Rate Fixed Rate Rate Undrawn lines of credit $ 15,695 $ 191,563 $ 17,204 $ 193,767 Letters of credit 45,259 — 47,743 — Total $ 60,954 $ 191,563 $ 64,947 $ 193,767 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 two years. At March 31, 2020, the Bank’s fixed rate loan commitments had interest rates ranging from 3.0% to 5.6% and the Bank’s variable rate loan commitments had interest rates ranging from 2.0% to 8.3%, with a maturity of one year or more. At December 31, 2019, the Bank’s fixed rate loan commitments had interest rates ranging from 3.0% to 5.6% and the Bank’s variable rate loan commitments had interest rates ranging from 3.5% to 9.8%, with a maturity 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’s stand-by letters of credit amounted to $45.3 million and $47.7 million as of March 31, 2020 and December 31, 2019, respectively. The Bank’s stand-by letters of credit are collateralized by interest-bearing accounts of $27.7 million and $29.8 million as of March 31, 2020 and December 31, 2019, respectively. The stand-by letters of credit mature within one year. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 11 – REVENUE FROM CONTRACTS WITH CUSTOMERS The Company adopted ASU 2014-09, Revenue from Contracts with Customers, as of January 1, 2019. All of the Company’s revenue from contracts with customers that are in the scope of the accounting guidance are recognized in non-interest income. The following table presents the Company’s sources of non-interest income, within the scope of the ASU, for the three and three months ended March 31, 2020 and March 31, 2019 (in thousands): Three months ended March 31, 2020 2019 Service charges on deposit accounts $ 1,081 $ 819 Prepaid third-party debit card income 1,621 1,257 Other service charges and fees 627 278 Total $ 3,329 $ 2,354 A description of the Company’s revenue streams accounted for under the accounting guidance follows: Debit card income: The Bank serves as a debit card issuer to, and contracts with, various program managers to issue debit cards to support various products including, but not limited to, healthcare marketing, general purpose reloadable cards, payroll cards, disbursement of government payments, payment of federal benefits and E-Wallet and push payments for sellers in online marketplaces. The Bank earns initial set-up fees for these programs as well as fees for transactions processed. The Bank receives transaction data at the end of each month for debit card services rendered, at which time revenue is recognized. Service charges on deposit accounts: The Bank offers business and personal retail products and services, which include, but are not limited to, online banking, mobile banking, ACH, and remote deposit capture. A standard deposit contract exists between the Bank and all deposit customers. The Bank earns fees from its deposit customers for transaction-based services (such as ATM use fees, stop payment charges, statement rendering, and ACH fees), account maintenance, and overdraft services. Transaction-based fees are recognized at the time the transaction is executed as that is the point in time the Bank fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Other service charges: The primary component of other service charges relates to foreign exchange (“FX”) conversion fees. The Bank outsources FX conversion for foreign currency transactions to correspondent banks. The Bank earns a portion of an FX conversion fee that the customer charges to process an FX conversion transaction. Revenue is recognized at the end of the month, once the customer has remitted the transaction information to the Bank. |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2020 | |
DERIVATIVES | |
DERIVATIVES | NOTE 12 – DERIVATIVES In the first quarter of 2020, the Company entered into an interest rate cap derivative contract (“interest rate cap” or “contract”) as a part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate cap does not represent the amount exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the contract. The interest rate subject to the cap is 30-day LIBOR. The interest rate cap has a notional amount of $300.0 million as of March 31, 2020 and was designated as a cash flow hedge of certain deposit liabilities of the Bank. The hedge was determined to be effective during the first quarter of 2020. The Company expects the hedge to remain effective during the remaining term of the contract. The following table reflects the derivatives recorded on the balance sheet at March 31, 2020 (in thousands): At March 31, 2020 Notional Amount Fair Value Derivatives designated as hedges: Interest rate caps related to customer deposits $ 300,000 $ 1,892 Total included in Other Assets $ 300,000 $ 1,892 The effect of cash flow hedge accounting on accumulated other comprehensive income at March 31, 2020 is as follows (in thousands): At March 31, 2020 Amount of Loss Recognized in OCI, net of tax Location of Gain (Loss) Reclassified from OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Interest rate caps related to customer deposits $ (726) $ N/A $ — |
SUMMARY OF RECENT ACCOUNTING _2
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
ORGANIZATION | ORGANIZATION Metropolitan Bank Holding Corp., a New York corporation, (the “Company”) is a bank holding company whose principal activity is the ownership and management of Metropolitan Commercial Bank (the “Bank”), its wholly-owned subsidiary. The Bank’s primary market is the New York metropolitan area. The Bank offers a traditional range of services to individuals, businesses and others needing banking services. Its primary lending products are commercial real estate loans and commercial and industrial loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from the cash flows from the operations of the business. The Bank’s primary deposit products are checking, savings, and term deposit accounts, and its deposit accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to the maximum amounts allowed by law. The Company and the Bank are subject to the regulations of certain state and federal agencies and, accordingly, are periodically examined by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Company’s business is affected by state and federal legislation and regulations. |
Derivatives | The following accounting policy represents a material update and addition to the accounting policies previously disclosed in the Company’s Annual Report for the fiscal year ended December 31, 2019 as filed with the SEC. Derivatives: The Company has entered into an interest rate cap derivative that, based on the Company’s intentions and belief as to the likely effectiveness as a hedge, was designated as a cash flow hedge. A cash flow hedge is a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in accumulated other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of the derivative that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. The amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedged transactions at the inception of the hedging relationship. The documentation includes linking the cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions or group of forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, or treatment of the derivative as a hedge is no longer appropriate or intended. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in accumulated other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. If the forecasted transaction is deemed probable to not occur, the derivative gain or loss reported in accumulated other comprehensive income is reclassified into current earnings. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
INVESTMENT SECURITIES | |
Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity | Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At March 31, 2020 Cost Gains Losses Fair Value Debt securities available for sale: Residential mortgage securities $ 163,163 $ 5,951 $ — $ 169,114 Commercial mortgage securities 29,371 1,374 (5) 30,740 Total securities available-for-sale $ 192,534 $ 7,325 $ (5) $ 199,854 Held-to-maturity securities: Residential mortgage securities $ 3,520 $ 68 $ — $ 3,588 Total securities held-to-maturity $ 3,520 $ 68 $ — $ 3,588 Equity investments: CRA Mutual Fund $ 2,270 $ 2 $ — $ 2,272 Total non-trading equity investment securities $ 2,270 $ 2 $ — $ 2,272 Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2019 Cost Gains Losses Fair Value Debt securities available for sale: Residential mortgage securities $ 175,902 $ 1,478 $ (117) $ 177,263 Commercial mortgage securities 32,284 206 (18) 32,472 U.S. Government agency securities 25,000 207 — 25,207 Total securities available for sale $ 233,186 $ 1,891 $ (135) $ 234,942 Held-to-maturity securities: Residential mortgage securities 3,722 9 (19) 3,712 Total securities held to maturity $ 3,722 $ 9 $ (19) $ 3,712 Equity investments: CRA Mutual Fund 2,258 — (34) 2,224 Total non-trading equity investment securities $ 2,258 $ — $ (34) $ 2,224 |
Schedule of Realized Gain (Loss) on Sales and Calls of Securities | The proceeds from sales and calls of securities and associated gains for the three months ended March 31, 2020 are listed below (in thousands): Three months ended March 31, 2020 2019 Proceeds $ 20,975 $ — Gross gains $ 975 $ — Tax impact $ (387) $ — |
Schedule of amortized cost and fair value of debt securities classified by contractual maturity | At March 31, 2020 Held-to-Maturity Available-for-Sale ( in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ — $ — $ — $ — One to five years — — — — Five to ten years — — — — After ten years — — — — Total $ — $ — $ — $ — Residential mortgage securities $ 3,520 $ 3,588 163,163 169,114 Commercial mortgage securities — — 29,371 30,740 Total Securities $ 3,520 $ 3,588 $ 192,534 $ 199,854 At December 31, 2019 Held-to-Maturity Available-for-Sale ( in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ — $ — $ — $ — One to five years — — — — Five to ten years — — 25,000 25,207 Due after ten years — — — — Total $ — $ — $ 25,000 $ 25,207 Residential mortgage securities $ 3,722 $ 3,712 $ 175,902 $ 177,263 Commercial mortgage securities — — 32,284 32,472 Total Securities $ 3,722 $ 3,712 $ 233,186 $ 234,942 |
Schedule of securities with unrealized/unrecognized losses | Less than 12 Months 12 months or more Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At March 31, 2020 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available for sale: Residential mortgage securities $ — $ — $ — $ — $ — $ — Commercial mortgage securities 388 (5) — — 388 (5) Total securities available for sale $ 388 $ (5) $ — $ — $ 388 $ (5) Held-to-Maturity Securities: Residential mortgage securities $ — $ — $ — $ — $ — $ — Total securities held to maturity $ — $ — $ — $ — $ — $ — Equity investments: CRA Mutual Fund $ — $ — $ — $ — $ — $ — Total equity investment securities $ — $ — $ — $ — $ — $ — Less than 12 Months 12 months or more Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At December 31, 2019 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available for sale: Residential mortgage securities $ 22,850 $ (52) $ 6,728 $ (65) $ 29,578 $ (117) Commercial mortgage securities 9,911 (18) - - 9,911 (18) Total securities available-for-sale $ 32,761 $ (70) $ 6,728 $ (65) $ 39,489 $ (135) Held-to-Maturity Securities: Residential mortgage securities $ — $ — $ 1,470 $ (19) $ 1,470 $ (19) Total securities held to maturity $ — $ — $ 1,470 $ (19) $ 1,470 $ (19) Equity investments: CRA Mutual Fund $ — $ — $ 2,224 $ (34) $ 2,224 $ (34) Total equity investment securities $ — $ — $ 2,224 $ (34) $ 2,224 $ (34) |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |
Schedule of Net loans | March 31, 2020 December 31, 2019 Real estate Commercial $ 1,729,386 $ 1,668,236 Construction 41,162 30,827 Multifamily 379,342 375,611 One-to-four family 75,610 82,670 Total real estate loans 2,225,500 2,157,344 Commercial and industrial 482,187 448,619 Consumer 63,112 71,956 Total loans 2,770,799 2,677,919 Deferred fees (4,700) (4,970) Loans, net of deferred fees and unamortized costs 2,766,099 2,672,949 Allowance for loan losses (30,924) (26,272) Balance at the end of the period $ 2,735,175 $ 2,646,677 |
Schedule of changes in the allowance for loan losses by portfolio segment | Commercial Commercial Multi One-to-four COVID-19 Three months ended March 31, 2020 Real Estate & Industrial Construction Family Family Consumer Impact Total Allowance for loan losses: Beginning balance $ 15,317 $ 7,070 $ 411 $ 2,453 $ 267 $ 754 $ — $ 26,272 Provision/(credit) for loan losses 574 1,098 138 65 (76) (65) 3,056 4,790 Loans charged-off — (13) — — — (188) — (201) Recoveries — 58 — — — 5 — 63 Total ending allowance balance $ 15,891 $ 8,213 $ 549 $ 2,518 $ 191 $ 506 $ 3,056 $ 30,924 Commercial Commercial Multi One-to-four Three months ended March 31, 2019 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Beginning balance $ 9,037 $ 6,257 $ 625 $ 2,047 $ 228 $ 748 $ 18,942 Provision/(credit) for loan losses 1,848 (4,077) 22 64 80 32 (2,031) Loans charged-off — (273) — — — (74) (347) Recoveries — 4,270 — — — — 4,270 Total ending allowance balance $ 10,885 $ 6,177 $ 647 $ 2,111 $ 308 $ 706 $ 20,834 |
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment | The following tables present the balance in the ALLL and the recorded investment in loans by portfolio segment, including the impact of COVID-19 for the first quarter of 2020, based on impairment method as of March 31, 2020 and December 31, 2019 (in thousands): Commercial Commercial Multi One-to-four COVID-19 At March 31, 2020 Real Estate & Industrial Construction Family Family Consumer Impact Total Allowance for loan losses: Individually evaluated for impairment $ — $ 805 $ — $ — $ 60 $ 116 $ — $ 981 Collectively evaluated for impairment 15,891 7,408 549 2,518 131 390 3,056 29,943 Total ending allowance balance $ 15,891 $ 8,213 $ 549 $ 2,518 $ 191 $ 506 $ 3,056 $ 30,924 Loans: Individually evaluated for impairment $ 363 $ 5,801 $ — $ — $ 1,028 $ 369 $ — $ 7,561 Collectively evaluated for impairment 1,729,023 476,386 41,162 379,342 74,582 62,743 — 2,763,238 Total ending loan balance $ 1,729,386 $ 482,187 $ 41,162 $ 379,342 $ 75,610 $ 63,112 $ — $ 2,770,799 Commercial Commercial Multi One-to-four At December 31, 2019 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ 805 $ — $ — $ 64 $ 311 $ 1,180 Collectively evaluated for impairment 15,317 6,265 411 2,453 203 443 25,092 Total ending allowance balance $ 15,317 $ 7,070 $ 411 $ 2,453 $ 267 $ 754 $ 26,272 Loans: Individually evaluated for impairment $ 367 $ 1,047 $ — $ — $ 3,384 $ 728 $ 5,526 Collectively evaluated for impairment 1,667,869 447,572 30,827 375,611 79,286 71,228 2,672,393 Total ending loan balance $ 1,668,236 $ 448,619 $ 30,827 $ 375,611 $ 82,670 $ 71,956 $ 2,677,919 |
Schedule of loans determined to be impaired by class of loans | Unpaid Principal Allowance for Loan At March 31, 2020 Balance Recorded Investment Losses Allocated With an allowance recorded: One-to-four family $ 626 $ 496 $ 60 Consumer 373 369 116 Commercial & industrial 1,047 1,047 805 Total $ 2,046 $ 1,912 $ 981 Without an allowance recorded: One-to-four family $ 679 $ 532 $ — Commercial real estate 363 363 — Commercial & industrial 4,754 4,754 — Total $ 5,796 $ 5,649 $ — Unpaid Principal Allowance for Loan At December 31, 2019 Balance Recorded Investment Losses Allocated With an allowance recorded: One-to-four family $ 633 $ 503 $ 64 Consumer 731 728 311 Commercial & industrial 1,047 1,047 805 Total $ 2,411 $ 2,278 $ 1,180 Without an allowance recorded: One-to-four family 3,028 $ 2,881 $ — Commercial real estate 367 367 — Total $ 3,395 $ 3,248 $ — |
Schedule of average recorded investment and interest income of loans | Average Recorded Interest Income Three months ended March 31, 2020 Investment Recognized With an allowance recorded: One-to-four family $ 500 $ 5 Consumer 548 5 Commercial & industrial 1,047 — Total $ 2,095 $ 10 Without an allowance recorded: One-to-four family $ 1,706 $ 7 Commercial real estate 365 4 Commercial & industrial 2,377 — Total $ 4,448 $ 11 Average Recorded Interest Income Three months ended March 31, 2019 Investment Recognized With an allowance recorded: One-to-four family $ 263 $ 3 Consumer 97 2 Total $ 360 $ 5 Without an allowance recorded: Commercial real estate $ 381 $ 4 One-to-four family 811 11 Total $ 1,192 $ 15 |
Schedule of recorded investment in non-accrual loans, loans past due over 90 days and still accruing by class of loans | At March 31, 2020 Non-accrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ 5,801 $ 205 One-to-four family — — Consumer 335 — Total $ 6,136 $ 205 At December 31, 2019 Non-accrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ 1,047 $ 408 One-to-four family 2,345 — Consumer 693 — Total $ 4,085 $ 408 |
Schedule of aging of the recorded investment in past due loans by class of loans | Greater 30-59 60-89 than 90 Total past Current At March 31, 2020 Days Days days due loans Total Commercial real estate $ — $ — $ — $ — $ 1,729,386 $ 1,729,386 Commercial & industrial 379 162 6,006 6,547 475,640 482,187 Construction — — — — 41,162 41,162 Multifamily — — — — 379,342 379,342 One-to-four family — — — — 75,610 75,610 Consumer 102 — 335 437 62,675 63,112 Total $ 481 $ 162 $ 6,341 $ 6,984 $ 2,763,815 $ 2,770,799 Greater 30-59 60-89 than 90 Total past Current At December 31, 2019 Days Days days due loans Total Commercial real estate $ — $ — $ — $ — $ 1,668,236 $ 1,668,236 Commercial & industrial 346 — 1,455 1,801 446,818 448,619 Construction — — — — 30,827 30,827 Multifamily — — — — 375,611 375,611 One-to-four family — — — — 82,670 82,670 Consumer 636 14 693 1,343 70,613 71,956 Total $ 982 $ 14 $ 2,148 $ 3,144 $ 2,674,775 $ 2,677,919 |
Schedule of recorded investment in TDRs by class of loans | The following tables present the recorded investment in TDRs by class of loans as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Troubled debt restructurings: Real Estate: Commercial real estate $ 363 $ 367 One-to-four family 1,028 1,039 Consumer 34 35 Total troubled debt restructurings $ 1,425 $ 1,441 |
Schedule of risk category of loans by class of loans | Special At March 31, 2020 Pass Mention Substandard Doubtful Total Commercial real estate $ 1,729,023 $ 363 $ — $ — $ 1,729,386 Commercial & industrial 476,181 — 4,959 1,047 482,187 Construction 41,162 — — — 41,162 Multifamily 379,342 — — — 379,342 Total $ 2,625,708 $ 363 $ 4,959 $ 1,047 $ 2,632,077 Special At December 31, 2019 Pass Mention Substandard Doubtful Total Commercial real estate $ 1,667,869 $ 367 $ — $ — $ 1,668,236 Commercial & industrial 446,612 — 960 1,047 448,619 Construction 30,827 — — — 30,827 Multi-family 375,611 — — — 375,611 Total $ 2,520,919 $ 367 $ 960 $ 1,047 $ 2,523,293 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER SHARE | |
Schedule of earnings per common share | Three months ended March 31, 2020 2019 Basic Net income per consolidated statements of income $ 6,097 $ 8,531 Less: Earnings allocated to participating securities (65) (135) Net income available to common stockholders $ 6,032 $ 8,396 Weighted average common shares outstanding including participating securities 8,304,205 8,281,325 Less: Weighted average participating securities (88,246) (130,873) Weighted average common shares outstanding 8,215,959 8,150,452 Basic earnings per common share $ 0.73 $ 1.03 Diluted Net income allocated to common stockholders $ 6,032 $ 8,396 Weighted average common shares outstanding for basic earnings per common share 8,215,959 8,150,452 Add: Dilutive effects of assumed exercise of stock options 131,159 114,740 Add: Dilutive effects of assumed vesting of performance based restricted stock and restricted stock units 65,664 20,028 Average shares and dilutive potential common shares 8,412,782 8,285,220 Dilutive earnings per common share $ 0.72 $ 1.01 |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
STOCK COMPENSATION PLAN | |
Schedule of status of the stock option plan | Three Months Ended March 31, 2020 Number of Weighted Average Options Exercise Price Outstanding, beginning of period 231,000 $ 18.00 Granted — — Exercised — — Cancelled/forfeited — — Outstanding, end of period 231,000 $ 18.00 Options vested and exercisable at end of period 231,000 $ 18.00 Weighted average remaining contractual life (years) 4.13 |
Schedule of summary of stock options outstanding | At March 31, 2020 Range of Average Weighted Average Weighted Average Weighted Average Exercise Prices Number Outstanding at Remaining Contractual Life Exercise Price Intrinsic Price per Share $10 – 20 231,000 4.13 $ 18.00 $ 8.93 $21 – 30 — — $ — $ — $10 – 30 231,000 4.13 $ 18.00 $ 8.93 |
Schedule of changes in the non-vested restricted stock awards | Three Months Ended March 31, 2020 Weighted Average Number of Shares Grant Date Fair Value Outstanding, beginning of period 104,838 $ 29.86 Granted 60,307 45.29 Forfeited (12,244) 29.63 Vested (19,541) 19.39 Outstanding at end of period 133,360 $ 38.39 |
Summary of changes in the non-vested Performance Restricted Share Units awards | For the three months ended March 31, 2020 Weighted average service inception date fair value of award shares $ 4,064,295 Minimum aggregate share payout 12,000 Maximum aggregate share payout 90,000 Likely aggregate share payout 90,000 Compensation expense recognized $ 358,000 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of Assets and Liabilities measured at fair value on a recurring basis | Fair Value Measurement using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) At March 31, 2020 Residential mortgage securities $ 169,114 $ — $ 169,114 $ — Commercial mortgage securities 30,740 — 30,740 — CRA Mutual Fund 2,272 2,272 — — Interest rate cap derivative 1,892 — 1,892 — Fair Value Measurement using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) At December 31, 2019 Residential mortgage securities $ 177,263 $ — $ 177,263 $ — Commercial mortgage securities 32,472 — 32,472 — U.S. Government agency securities 25,207 — 25,207 — CRA Mutual Fund 2,224 2,224 — — |
Schedule of carrying amount and estimated fair values of financial instruments | Carrying amount and estimated fair values of financial instruments at March 31, 2020 and December 31, 2019 were as follows (in thousands): Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At March 31, 2020 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 12,501 $ 12,501 $ — $ — $ 12,501 Overnight deposits 569,927 569,927 — — 569,927 Securities available for sale 199,854 — 199,854 — 199,854 Securities held to maturity 3,520 — 3,588 — 3,588 Equity investments 2,272 2,272 — — 2,272 Loans, net 2,735,175 — — 2,732,185 2,732,185 Other investments — — — — — FRB Stock 7,335 N/A N/A N/A N/A FHLB Stock 8,122 N/A N/A N/A N/A SBA Loan Fund 5,000 N/A N/A N/A N/A Disability Fund 500 — 500 — 500 Time deposits at banks 498 498 — — 498 Interest rate cap derivative 1,892 — 1,892 — 1,892 Accrued interest receivable 9,108 — 503 8,605 9,108 Financial liabilities: Non-interest-bearing demand deposits $ 1,250,584 $ 1,250,584 $ — $ — $ 1,250,584 Money market and savings deposits 1,673,452 1,673,452 — — 1,673,452 Time deposits 97,656 — 98,846 — 98,846 Federal Home Loan Bank of New York advances 144,000 — 144,813 — 144,813 Trust preferred securities payable 20,620 — — 20,024 20,024 Subordinated debt, net of issuance cost 24,615 — 24,125 — 24,125 Accrued interest payable 1,146 9 941 196 1,146 Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At December 31, 2019 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 9,619 $ 9,619 $ — $ — $ 9,619 Overnight deposits 381,104 381,104 — — 381,104 Securities available for sale 234,942 — 234,942 — 234,942 Securities held to maturity 3,722 — 3,712 — 3,712 Equity investments 2,224 2,224 — — 2,224 Loans, net 2,646,677 — — 2,609,233 2,609,233 Other investments FRB Stock 7,317 N/A N/A N/A N/A FHLB Stock 8,122 N/A N/A N/A N/A SBA Loan Fund 5,000 N/A N/A N/A N/A Disability Fund 500 — 500 — 500 Time deposits at banks 498 498 — — 498 Accrued interest receivable 8,862 — 544 8,318 8,862 Financial liabilities: Non-interest-bearing demand deposits $ 1,090,479 $ 1,090,479 $ — $ — $ 1,090,479 Money market and savings deposits 1,589,920 1,589,920 — — 1,589,920 Time deposits 110,375 — 110,800 — 110,800 Federal Home Loan Bank of New York advances 144,000 — 144,229 — 144,229 Trust preferred securities payable 20,620 — — 20,011 20,011 Subordinated debt, net of issuance cost 24,601 — 25,375 — 25,375 Accrued interest payable 1,229 14 1,009 206 1,229 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Summary of changes in Accumulated Other Comprehensive Income (Loss) balances, net of tax effects | Three months ended March 31, 2020 2019 Beginning balance $ 1,207 $ (473) Cumulative effect of adopting new accounting standard ASU 2016-01, net of taxes — 68 Balance net of cumulative effect of adopting ASU 2016-01 $ 1,207 $ (405) Other comprehensive income, net of tax: Unrealized gain (loss) on securities available for sale Unrealized holding gain (loss) arising during the period $ 6,539 $ 385 Reclassification adjustment for gain included in net income (975) — Tax effect (1,756) (127) Net of tax $ 3,808 $ 258 Unrealized gain (loss) on cash flow hedges Unrealized holding gain (loss) arising during the period $ (1,060) $ — Tax effect 334 — Net of tax $ (726) $ — Net current period other comprehensive income $ 3,082 $ 258 Ending balance $ 4,289 $ (147) |
Schedule of reclassifications out of accumulated other comprehensive income (loss) | The following table shows the amounts reclassified out of each component of accumulated other comprehensive income for the gain on the sale of securities during the first quarter of 2020 (in thousands): March 31, 2020 2019 Affected line item in the Consolidated Statements of Operations Amounts reclassified from accumulated other comprehensive income $ 975 $ — Gain on sale of securities Income tax expense (387) — Income tax expense Total reclassifications, net of income tax $ 588 $ — |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |
Schedule of off-balance-sheet financial instruments | At March 31, 2020 At December 31, 2019 Variable Variable Fixed Rate Rate Fixed Rate Rate Undrawn lines of credit $ 15,695 $ 191,563 $ 17,204 $ 193,767 Letters of credit 45,259 — 47,743 — Total $ 60,954 $ 191,563 $ 64,947 $ 193,767 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of Company’s sources of non-interest income | The following table presents the Company’s sources of non-interest income, within the scope of the ASU, for the three and three months ended March 31, 2020 and March 31, 2019 (in thousands): Three months ended March 31, 2020 2019 Service charges on deposit accounts $ 1,081 $ 819 Prepaid third-party debit card income 1,621 1,257 Other service charges and fees 627 278 Total $ 3,329 $ 2,354 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
DERIVATIVES | |
Schedule of derivative position gross on the balance sheet | The following table reflects the derivatives recorded on the balance sheet at March 31, 2020 (in thousands): At March 31, 2020 Notional Amount Fair Value Derivatives designated as hedges: Interest rate caps related to customer deposits $ 300,000 $ 1,892 Total included in Other Assets $ 300,000 $ 1,892 |
Schedule of effect of cash flow hedge accounting on accumulated other comprehensive income | The effect of cash flow hedge accounting on accumulated other comprehensive income at March 31, 2020 is as follows (in thousands): At March 31, 2020 Amount of Loss Recognized in OCI, net of tax Location of Gain (Loss) Reclassified from OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Interest rate caps related to customer deposits $ (726) $ N/A $ — |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
BASIS OF PRESENTATION | |
Impairment of goodwill | $ 0 |
SUMMARY OF RECENT ACCOUNTING _3
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Details) - Restatement Adjustment | Jan. 31, 2019USD ($) |
ASU 2014-09 | |
Adjustment to opening retained earnings | $ 117,000 |
ASU 2016-01 and 2018-03 | |
Adjustment to opening retained earnings | $ 68,000 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities available-for-sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available for sale, at fair value | $ 199,854 | $ 234,942 |
Available-for-sale Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 192,534 | 233,186 |
Gross Unrealized/Unrecognized Gains | 7,325 | 1,891 |
Gross Unrealized/Unrecognized Losses | (5) | (135) |
Investment securities available for sale, at fair value | 199,854 | 234,942 |
Available-for-sale Securities | Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 163,163 | 175,902 |
Gross Unrealized/Unrecognized Gains | 5,951 | 1,478 |
Gross Unrealized/Unrecognized Losses | (117) | |
Investment securities available for sale, at fair value | 169,114 | 177,263 |
Available-for-sale Securities | Commercial mortgage-backed securities issued by U.S. government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 29,371 | 32,284 |
Gross Unrealized/Unrecognized Gains | 1,374 | 206 |
Gross Unrealized/Unrecognized Losses | (5) | (18) |
Investment securities available for sale, at fair value | $ 30,740 | 32,472 |
Available-for-sale Securities | U.S. Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 25,000 | |
Gross Unrealized/Unrecognized Gains | 207 | |
Gross Unrealized/Unrecognized Losses | 0 | |
Investment securities available for sale, at fair value | $ 25,207 |
INVESTMENT SECURITIES (Schedu_2
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities held-to-maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 3,520 | $ 3,722 |
Total Securities | 3,588 | 3,712 |
Held-to-maturity Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 3,520 | 3,722 |
Gross Unrealized/Unrecognized Gains | 68 | 9 |
Gross Unrealized/Unrecognized Losses | (19) | |
Total Securities | 3,588 | 3,712 |
Held-to-maturity Securities | Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 3,520 | 3,722 |
Gross Unrealized/Unrecognized Gains | 68 | 9 |
Gross Unrealized/Unrecognized Losses | (19) | |
Total Securities | $ 3,588 | $ 3,712 |
INVESTMENT SECURITIES (Schedu_3
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of marketable equity securities) (Details) - Equity securities - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Amortized Cost - CRA Mutual Fund | $ 2,270 | $ 2,258 |
Gross Unrealized/Unrecognized Gains | (2) | 0 |
Gross Unrealized/Unrecognized Losses | (34) | |
Fair Value CRA Mutual Fund | 2,272 | 2,224 |
CRA mutual fund | ||
Marketable Securities [Line Items] | ||
Amortized Cost - CRA Mutual Fund | 2,270 | 2,258 |
Gross Unrealized/Unrecognized Gains | (2) | 0 |
Gross Unrealized/Unrecognized Losses | (34) | |
Fair Value CRA Mutual Fund | $ 2,272 | $ 2,224 |
INVESTMENT SECURITIES (Proceeds
INVESTMENT SECURITIES (Proceeds from sales and calls of securities and associated gains and losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Proceeds from sales of securities available for sale | $ 20,975 | $ 0 |
Proceeds from calls of securities available for sale | 5,000 | |
Gross gains | 975 | |
Tax impact | 387 | |
U.S. Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Proceeds from sales of securities available for sale | 21,000 | |
Proceeds from calls of securities available for sale | $ 5,000 |
INVESTMENT SECURITIES (Schedu_4
INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Amortized Cost, Held to maturity | $ 3,520 | $ 3,722 |
Fair Value | ||
Fair Value, Held to maturity | 3,588 | 3,712 |
Amortized Cost | ||
Five to ten years | 25,000 | |
Amortized Cost, total | 25,000 | |
Amortized Cost, Available-for-sale Securities | 192,534 | 233,186 |
Fair Value | ||
Five to ten years | 25,207 | |
Fair Value, total | 25,207 | |
Fair Value, Available-for-sale Securities | 199,854 | 234,942 |
AFS securities pledged to secure customer deposit | 0 | 126,200 |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost, Held to maturity | 3,520 | 3,722 |
Fair Value | ||
Fair Value, Held to maturity | 3,588 | 3,712 |
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 163,163 | 175,902 |
Fair Value | ||
Fair Value, Available-for-sale Securities | 169,114 | 177,263 |
Commercial mortgage-backed securities issued by U.S. government sponsored entities | ||
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 29,371 | 32,284 |
Fair Value | ||
Fair Value, Available-for-sale Securities | $ 30,740 | $ 32,472 |
INVESTMENT SECURITIES (Schedu_5
INVESTMENT SECURITIES (Schedule of Securities with Unrealized Losses) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($)item | Dec. 31, 2019USD ($)item | |
Held-to-maturity Securities | ||
Number of securities of one issuer | item | 0 | 0 |
Impairment loss | $ 0 | $ 0 |
Equity securities | ||
Held-to-maturity Securities | ||
12 months or more, Estimated Fair Value | 2,224 | |
12 months or more, Unrealized/Unrecognized Losses | (34) | |
Total, Estimated Fair Value | 2,224 | |
Total, Unrealized Losses | (34) | |
Available-for-sale Securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 388 | 32,761 |
Less than 12 Months, Unrealized/Unrecognized Losses | (5) | (70) |
12 months or more, Estimated Fair Value | 6,728 | |
12 months or more, Unrealized/Unrecognized Losses | (65) | |
Total, Estimated Fair Value | 388 | 39,489 |
Total, Unrealized/Unrecognized Losses | (5) | (135) |
Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
12 months or more, Estimated Fair Value | 1,470 | |
12 months or more, Unrealized/Unrecognized Losses | (19) | |
Total, Estimated Fair Value | 1,470 | |
Total, Unrealized Losses | (19) | |
Residential mortgage-backed securities | Available-for-sale Securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 22,850 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (52) | |
12 months or more, Estimated Fair Value | 6,728 | |
12 months or more, Unrealized/Unrecognized Losses | (65) | |
Total, Estimated Fair Value | 29,578 | |
Total, Unrealized/Unrecognized Losses | (117) | |
Residential mortgage-backed securities | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
12 months or more, Estimated Fair Value | 1,470 | |
12 months or more, Unrealized/Unrecognized Losses | (19) | |
Total, Estimated Fair Value | 1,470 | |
Total, Unrealized Losses | (19) | |
Commercial mortgage-backed securities issued by U.S. government sponsored entities | Available-for-sale Securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 9,911 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (18) | |
Total, Estimated Fair Value | 9,911 | |
Total, Unrealized/Unrecognized Losses | (18) | |
Commercial collateralized mortgage obligations | Available-for-sale Securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 388 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (5) | |
Total, Estimated Fair Value | 388 | |
Total, Unrealized/Unrecognized Losses | $ (5) | |
CRA mutual fund | Equity securities | ||
Held-to-maturity Securities | ||
12 months or more, Estimated Fair Value | 2,224 | |
12 months or more, Unrealized/Unrecognized Losses | (34) | |
Total, Estimated Fair Value | 2,224 | |
Total, Unrealized Losses | $ (34) |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loan Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 2,770,799 | $ 2,677,919 | ||
Deferred fees | (4,700) | (4,970) | ||
Loans, net of deferred fees and unamortized costs | 2,766,099 | 2,672,949 | ||
Allowance for loan losses | (30,924) | (26,272) | $ (20,834) | $ (18,942) |
Net loans | 2,735,175 | 2,646,677 | ||
Healthcare Sector [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Additional provision for loan losses | 3,100 | |||
Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 2,225,500 | 2,157,344 | ||
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 482,187 | 448,619 | ||
Allowance for loan losses | (8,213) | (7,070) | (6,177) | (6,257) |
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 63,112 | 71,956 | ||
Allowance for loan losses | (506) | (754) | (706) | (748) |
Commercial | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 1,729,386 | 1,668,236 | ||
Allowance for loan losses | (15,891) | (15,317) | (10,885) | (9,037) |
Construction | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 41,162 | 30,827 | ||
Allowance for loan losses | (549) | (411) | (647) | (625) |
Multi-family | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 379,342 | 375,611 | ||
Allowance for loan losses | (2,518) | (2,453) | (2,111) | (2,047) |
One to four family | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 75,610 | 82,670 | ||
Allowance for loan losses | $ (191) | $ (267) | $ (308) | $ (228) |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Activity in the Allowance for Loan Losses by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 26,272 | $ 18,942 |
Provision (credit) for loan losses | 4,790 | (2,031) |
Loans charged-off | (201) | (347) |
Recoveries | 63 | 4,270 |
Total ending allowance balance | 30,924 | 20,834 |
Net charge-offs (recoveries) | 138 | (3,900) |
Recovered charged-off in taxi medallion loans | 4,200 | |
COVID 19 - Impact | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Provision (credit) for loan losses | 3,056 | |
Total ending allowance balance | 3,056 | |
Real estate | Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 15,317 | 9,037 |
Provision (credit) for loan losses | 574 | 1,848 |
Total ending allowance balance | 15,891 | 10,885 |
Real estate | Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 411 | 625 |
Provision (credit) for loan losses | 138 | 22 |
Total ending allowance balance | 549 | 647 |
Real estate | Multi-family | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 2,453 | 2,047 |
Provision (credit) for loan losses | 65 | 64 |
Total ending allowance balance | 2,518 | 2,111 |
Real estate | One to four family | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 267 | 228 |
Provision (credit) for loan losses | (76) | 80 |
Total ending allowance balance | 191 | 308 |
Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 7,070 | 6,257 |
Provision (credit) for loan losses | 1,098 | (4,077) |
Loans charged-off | (13) | (273) |
Recoveries | 58 | 4,270 |
Total ending allowance balance | 8,213 | 6,177 |
Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 754 | 748 |
Provision (credit) for loan losses | (65) | 32 |
Loans charged-off | (188) | (74) |
Recoveries | 5 | |
Total ending allowance balance | $ 506 | $ 706 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans by Impairment Method) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | $ 981 | $ 1,180 | ||
Collectively evaluated for impairment, Allowance for loan losses | 29,943 | 25,092 | ||
Total ending allowance balance | 30,924 | 26,272 | $ 20,834 | $ 18,942 |
Individually evaluated for impairment, Loans | 7,561 | 5,526 | ||
Collectively evaluated for impairment, Loans | 2,763,238 | 2,672,393 | ||
Total ending loan balance | 2,770,799 | 2,677,919 | ||
COVID 19 - Impact | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Collectively evaluated for impairment, Allowance for loan losses | 3,056 | |||
Total ending allowance balance | 3,056 | |||
Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total ending loan balance | 2,225,500 | 2,157,344 | ||
Real estate | Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Collectively evaluated for impairment, Allowance for loan losses | 15,891 | 15,317 | ||
Total ending allowance balance | 15,891 | 15,317 | 10,885 | 9,037 |
Individually evaluated for impairment, Loans | 363 | 367 | ||
Collectively evaluated for impairment, Loans | 1,729,023 | 1,667,869 | ||
Total ending loan balance | 1,729,386 | 1,668,236 | ||
Real estate | Construction | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Collectively evaluated for impairment, Allowance for loan losses | 549 | 411 | ||
Total ending allowance balance | 549 | 411 | 647 | 625 |
Collectively evaluated for impairment, Loans | 41,162 | 30,827 | ||
Total ending loan balance | 41,162 | 30,827 | ||
Real estate | Multi-family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Collectively evaluated for impairment, Allowance for loan losses | 2,518 | 2,453 | ||
Total ending allowance balance | 2,518 | 2,453 | 2,111 | 2,047 |
Collectively evaluated for impairment, Loans | 379,342 | 375,611 | ||
Total ending loan balance | 379,342 | 375,611 | ||
Real estate | One to four family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 60 | 64 | ||
Collectively evaluated for impairment, Allowance for loan losses | 131 | 203 | ||
Total ending allowance balance | 191 | 267 | 308 | 228 |
Individually evaluated for impairment, Loans | 1,028 | 3,384 | ||
Collectively evaluated for impairment, Loans | 74,582 | 79,286 | ||
Total ending loan balance | 75,610 | 82,670 | ||
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 805 | 805 | ||
Collectively evaluated for impairment, Allowance for loan losses | 7,408 | 6,265 | ||
Total ending allowance balance | 8,213 | 7,070 | 6,177 | 6,257 |
Individually evaluated for impairment, Loans | 5,801 | 1,047 | ||
Collectively evaluated for impairment, Loans | 476,386 | 447,572 | ||
Total ending loan balance | 482,187 | 448,619 | ||
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 116 | 311 | ||
Collectively evaluated for impairment, Allowance for loan losses | 390 | 443 | ||
Total ending allowance balance | 506 | 754 | $ 706 | $ 748 |
Individually evaluated for impairment, Loans | 369 | 728 | ||
Collectively evaluated for impairment, Loans | 62,743 | 71,228 | ||
Total ending loan balance | $ 63,112 | $ 71,956 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Impaired by Class of Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
With an allowance recorded: | |||
Unpaid Principal Balance | $ 2,046 | $ 2,411 | |
Recorded Investment | 1,912 | 2,278 | |
Allowance for Loan Losses Allocated | 981 | 1,180 | |
Average Recorded Investment | 2,095 | $ 360 | |
Interest Income Recognized | 10 | 5 | |
Without an allowance recorded: | |||
Unpaid Principal Balance | 5,796 | 3,395 | |
Recorded Investment | 5,649 | 3,248 | |
Average Recorded Investment | 4,448 | 1,192 | |
Interest Income Recognized | 11 | 15 | |
One to four family | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 626 | 633 | |
Recorded Investment | 496 | 503 | |
Allowance for Loan Losses Allocated | 60 | 64 | |
Average Recorded Investment | 500 | 263 | |
Interest Income Recognized | 5 | 3 | |
Without an allowance recorded: | |||
Unpaid Principal Balance | 679 | 3,028 | |
Recorded Investment | 532 | 2,881 | |
Average Recorded Investment | 1,706 | 811 | |
Interest Income Recognized | 7 | 11 | |
Real estate | Commercial | |||
Without an allowance recorded: | |||
Unpaid Principal Balance | 363 | 367 | |
Recorded Investment | 363 | 367 | |
Average Recorded Investment | 365 | 381 | |
Interest Income Recognized | 4 | 4 | |
Commercial and industrial | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 1,047 | 1,047 | |
Recorded Investment | 1,047 | 1,047 | |
Allowance for Loan Losses Allocated | 805 | 805 | |
Average Recorded Investment | 1,047 | ||
Without an allowance recorded: | |||
Unpaid Principal Balance | 4,754 | ||
Recorded Investment | 4,754 | ||
Average Recorded Investment | 2,377 | ||
Consumer | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 373 | 731 | |
Recorded Investment | 369 | 728 | |
Allowance for Loan Losses Allocated | 116 | $ 311 | |
Average Recorded Investment | 548 | 97 | |
Interest Income Recognized | $ 5 | $ 2 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Non-accrual Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 6,136 | $ 4,085 |
Loans Past Due Over 90 Days Still Accruing | 205 | 408 |
Loans modified in troubled debt restructurings | 1,425 | 1,441 |
One to four family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 335 | 2,345 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
Loans modified in troubled debt restructurings | 1,028 | 1,039 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans modified in troubled debt restructurings | 363 | 367 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 5,801 | 1,047 |
Loans Past Due Over 90 Days Still Accruing | 205 | 408 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 0 | 693 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
Loans modified in troubled debt restructurings | $ 34 | $ 35 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Past Due Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 6,984 | $ 3,144 |
Loans not Past Due | 2,763,815 | 2,674,775 |
Total loans | 2,770,799 | 2,677,919 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 481 | 982 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 162 | 14 |
Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,341 | 2,148 |
Real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,225,500 | 2,157,344 |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans not Past Due | 1,729,386 | 1,668,236 |
Total loans | 1,729,386 | 1,668,236 |
Real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans not Past Due | 41,162 | 30,827 |
Total loans | 41,162 | 30,827 |
Real estate | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans not Past Due | 379,342 | 375,611 |
Total loans | 379,342 | 375,611 |
Real estate | One to four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans not Past Due | 75,610 | 82,670 |
Total loans | 75,610 | 82,670 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,547 | 1,801 |
Loans not Past Due | 475,640 | 446,818 |
Total loans | 482,187 | 448,619 |
Commercial and industrial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 379 | 346 |
Commercial and industrial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 162 | |
Commercial and industrial | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,006 | 1,455 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 437 | 1,343 |
Loans not Past Due | 62,675 | 70,613 |
Total loans | 63,112 | 71,956 |
Consumer | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 102 | 636 |
Consumer | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 14 | |
Consumer | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 335 | $ 693 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans by Risk Category) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 2,770,799 | $ 2,677,919 |
Commercial Construction and Multifamily Real Estate Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 2,632,077 | 2,523,293 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 2,625,708 | 2,520,919 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 363 | 367 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 4,959 | 960 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,047 | 1,047 |
Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 2,225,500 | 2,157,344 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,729,386 | 1,668,236 |
Real estate | Commercial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,729,023 | 1,667,869 |
Real estate | Commercial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 363 | 367 |
Real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 41,162 | 30,827 |
Real estate | Construction | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 41,162 | 30,827 |
Real estate | Multi-family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 379,342 | 375,611 |
Real estate | Multi-family | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 379,342 | 375,611 |
Real estate | One to four family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 75,610 | 82,670 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 482,187 | 448,619 |
Commercial and industrial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 476,181 | 446,612 |
Commercial and industrial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 4,959 | 960 |
Commercial and industrial | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,047 | 1,047 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 63,112 | $ 71,956 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructurings) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2020USD ($) | Mar. 31, 2020USD ($)item | Mar. 31, 2019item | Dec. 31, 2019USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans modified in troubled debt restructurings | $ 1,425,000 | $ 1,441,000 | ||
Number of TDR loans during the period | 0 | 0 | ||
Specific reserves modified as TDRs | $ 60,000 | $ 80,000 | ||
Number of contracts financing receivable modifications | item | 0 | 0 | ||
Subsequent Event [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans classified as TDRs due to COVID 19 and CARES ACT | $ 401,700,000 |
EARNINGS PER SHARE (Computation
EARNINGS PER SHARE (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic | ||
Net income per consolidated statements of income | $ 6,097 | $ 8,531 |
Less: Earnings allocated to participating securities | (65) | (135) |
Net income available to common stockholder | $ 6,032 | $ 8,396 |
Weighted average common shares outstanding including participating securities | 8,304,205 | 8,281,325 |
Less: Weighted average participating securities | (88,246) | (130,873) |
Weighted average common shares outstanding | 8,215,959 | 8,150,452 |
Basic earnings per common share (in dollars per share) | $ 0.73 | $ 1.03 |
Diluted | ||
Net income allocated to common shareholders | $ 6,032 | $ 8,396 |
Weighted average common shares outstanding for basic earnings per common share | 8,215,959 | 8,150,452 |
Average shares and dilutive potential common shares | 8,412,782 | 8,285,220 |
Diluted earnings per common share (in dollars per share) | $ 0.72 | $ 1.01 |
Stock Option | ||
Diluted | ||
Add: Dilutive effects of assumed exercise of stock options | 131,159 | 114,740 |
Restricted stock | ||
Diluted | ||
Dilutive effects of assumed exercise of stock options/vesting of performance based restricted stock | 65,664 | 20,028 |
STOCK COMPENSATION PLAN (Summar
STOCK COMPENSATION PLAN (Summary of the Status of the Stock Option Plan) (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of Options | |
Outstanding, beginning of period | 231,000 |
Exercised | 0 |
Outstanding, end of period | 231,000 |
Options vested and exercisable at end of period | 231,000 |
Weighted Average Exercise Price | |
Outstanding, beginning of period | $ / shares | $ 18 |
Outstanding, end of period | $ / shares | 18 |
Options vested and exercisable at end of period | $ / shares | $ 18 |
Weighted average remaining contractual life (years) | 4 years 1 month 17 days |
STOCK COMPENSATION PLAN (Summ_2
STOCK COMPENSATION PLAN (Summary of Stock Options Outstanding) (Details) | 3 Months Ended |
Mar. 31, 2020$ / 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 | 4 years 1 month 17 days |
Weighted Average Exercise Price | $ 18 |
Weighted Average Intrinsic Price | 8.93 |
$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 |
$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 | 231,000 |
Weighted Average Remaining Contractual Life | 4 years 1 month 17 days |
Weighted Average Exercise Price | $ 18 |
Weighted Average Intrinsic Price | $ 8.93 |
STOCK COMPENSATION PLAN (Summ_3
STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details) - Restricted stock | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of shares, Outstanding, beginning of period | shares | 104,838 |
Number of shares, Granted | shares | 60,307 |
Number of shares, Forfeited | shares | (12,244) |
Number of shares, Vested | shares | (19,541) |
Number of shares, Outstanding at end of period | shares | 133,360 |
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, beginning of period | $ / shares | $ 29.86 |
Weighted Average Grant Date fair Value, Granted | $ / shares | 45.29 |
Weighted Average Grant Date fair Value, Forfeited | $ / shares | 29.63 |
Weighted Average Grant Date fair Value, Vested | $ / shares | 19.39 |
Weighted Average Grant Date fair Value, at end of period | $ / shares | $ 38.39 |
Vesting period | 3 years |
STOCK COMPENSATION PLAN (Summ_4
STOCK COMPENSATION PLAN (Summary of Performance Based Stock Awards) (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)shares | |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate share payout | 90,000 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate share payout | 12,000 |
Performance Restricted Share Units ("Prsus") | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance period (in years) | 3 years |
Weighted average service inception date fair value of award shares | $ | $ 4,064,295 |
Likely aggregate share payout | 90,000 |
Compensation expense recognized | $ | $ 358,000 |
STOCK COMPENSATION PLAN (Detail
STOCK COMPENSATION PLAN (Details) - USD ($) | May 18, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | May 28, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding shares | 231,000 | 231,000 | |||
Exercise of stock options (in shares) | 0 | ||||
Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to non-vested stock options | $ 3,800,000 | ||||
Compensation cost related to stock awards | $ 354,000 | $ 229,000 | |||
Number of shares, Granted | 60,307 | ||||
Vesting period | 3 years | ||||
Unrecognized compensation expense recognition period | 2 years 4 months 24 days | ||||
Fair value of shares vested | $ 743,957 | ||||
Restricted stock | Non-employee directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to stock awards | $ 100,000 | ||||
Number of shares, Granted | 38,900 | ||||
Vesting percentage | 33.00% | ||||
Service period (in years) | 3 years | ||||
Vesting period | 3 years | ||||
Performance Restricted Share Units ("Prsus") | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to stock awards | $ 358,000 | ||||
Number of PRSUs awarded | 90,000 | ||||
Directors' fees | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to non-vested stock options | $ 700,000 | ||||
Unrecognized compensation expense recognition period | 1 year 9 months | ||||
Equity Incentive Plan 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment award, shares authorized, maximum | 340,000 | ||||
Equity Incentive Plan 2019 | Stock Option | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of exercise price to the fair market value | 100.00% | ||||
Equity Incentive Plan 2019 | Incentive stock options granted to any 10% stockholder | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of the exercise price to the fair market value of the shares covered by the stock option on the date of grant in the case of an ISO granted to 10% stockholder | 110.00% | ||||
Equity Incentive Plan 2009 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding shares | 468,382 | ||||
Number of shares expired | 628,719 | ||||
Compensation cost related to stock awards | $ 0 | $ 0 | |||
Equity Incentive Plan 2009 | Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to non-vested stock options | $ 0 | $ 0 | |||
Equity Incentive Plan 2009 | 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 | ||||
Equity Incentive Plan 2009 | 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 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 205,646 | $ 240,888 | |
Amount of transfers of assets measured on a recurring basis out of Level 1 of the fair value hierarchy into Level 2 | 0 | $ 0 | |
Amount of transfers of assets measured on a recurring basis out of Level 2 of the fair value hierarchy into Level 1 | 0 | $ 0 | |
Fair value assets measured at fair value on a non-recurring basis | 0 | 0 | |
Carrying Amount | Residential mortgage-backed securities | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 169,114 | 177,263 | |
Carrying Amount | Commercial mortgage-backed securities issued by U.S. government sponsored entities | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 30,740 | 32,472 | |
Carrying Amount | Municipal bonds | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 25,207 | ||
Carrying Amount | CRA mutual fund | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 2,272 | 2,224 | |
Fair Value, Inputs, Level 1 | CRA mutual fund | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 2,272 | 2,224 | |
Fair Value, Inputs, Level 2 | Residential mortgage-backed securities | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 169,114 | 177,263 | |
Fair Value, Inputs, Level 2 | Commercial mortgage-backed securities issued by U.S. government sponsored entities | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 30,740 | 32,472 | |
Fair Value, Inputs, Level 2 | Municipal bonds | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 25,207 | ||
Fair Value, Inputs, Level 2 | CRA mutual fund | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | $ 0 | |
Interest Rate Cap [Member] | Carrying Amount | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 1,892 | ||
Interest Rate Cap [Member] | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 1,892 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Debt securities available for sale | $ 199,854 | $ 234,942 |
Securities held to maturity | 3,588 | 3,712 |
Other investments | ||
Other Investments | 21,455 | 21,437 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 1,250,584 | 1,090,479 |
Federal Home Loan Bank of New York advances | 144,000 | 144,000 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 12,501 | 9,619 |
Overnight deposits | 569,927 | 381,104 |
Debt securities available for sale | 199,854 | 234,942 |
Securities held to maturity | 3,520 | 3,722 |
Equity investments | 2,272 | 2,224 |
Loans, net | 2,735,175 | 2,646,677 |
Other investments | ||
FRB Stock | 7,335 | 7,317 |
FHLB Stock | 8,122 | 8,122 |
SBA Loan Fund | 5,000 | 5,000 |
Disability Fund | 500 | 500 |
Time deposits at banks | 498 | 498 |
Interest rate cap derivative | 1,892 | |
Accrued interest receivable | 9,108 | 8,862 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 1,250,584 | 1,090,479 |
Money market and savings deposits | 1,673,452 | 1,589,920 |
Time deposits | 97,656 | 110,375 |
Federal Home Loan Bank of New York advances | 144,000 | 144,000 |
Trust preferred securities payable | 20,620 | 20,620 |
Subordinated debt, net of issuance cost | 24,615 | 24,601 |
Accrued interest payable | 1,146 | 1,229 |
Total Fair Value | ||
Financial assets: | ||
Cash and due from banks | 12,501 | 9,619 |
Overnight deposits | 569,927 | 381,104 |
Debt securities available for sale | 199,854 | 234,942 |
Securities held to maturity | 3,588 | 3,712 |
Equity investments | 2,272 | 2,224 |
Loans, net | 2,732,185 | 2,609,233 |
Other investments | ||
Disability Fund | 500 | 500 |
Time deposits at banks | 498 | 498 |
Interest rate cap derivative | 1,892 | |
Accrued interest receivable | 9,108 | 8,862 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 1,250,584 | 1,090,479 |
Money market and savings deposits | 1,673,452 | 1,589,920 |
Time deposits | 98,846 | 110,800 |
Federal Home Loan Bank of New York advances | 144,813 | 144,229 |
Trust preferred securities payable | 20,024 | 20,011 |
Subordinated debt, net of issuance cost | 24,125 | 25,375 |
Accrued interest payable | 1,146 | 1,229 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Cash and due from banks | 12,501 | 9,619 |
Overnight deposits | 569,927 | 381,104 |
Equity investments | 2,272 | 2,224 |
Other investments | ||
Time deposits at banks | 498 | 498 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 1,250,584 | 1,090,479 |
Money market and savings deposits | 1,673,452 | 1,589,920 |
Accrued interest payable | 9 | 14 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Debt securities available for sale | 199,854 | 234,942 |
Securities held to maturity | 3,588 | 3,712 |
Other investments | ||
Disability Fund | 500 | 500 |
Interest rate cap derivative | 1,892 | |
Accrued interest receivable | 503 | 544 |
Financial liabilities: | ||
Money market and savings deposits | 0 | |
Time deposits | 98,846 | 110,800 |
Federal Home Loan Bank of New York advances | 144,813 | 144,229 |
Subordinated debt, net of issuance cost | 24,125 | 25,375 |
Accrued interest payable | 941 | 1,009 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Loans, net | 2,732,185 | 2,609,233 |
Other investments | ||
Accrued interest receivable | 8,605 | 8,318 |
Financial liabilities: | ||
Money market and savings deposits | 0 | |
Trust preferred securities payable | 20,024 | 20,011 |
Accrued interest payable | $ 196 | $ 206 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 1,207 | |||
Beginning balance, as adjusted | 4,289 | $ 1,207 | ||
Unrealized holding gain (loss) arising during the period | 6,539 | $ 385 | ||
Reclassification adjustment for gain included in net income | (975) | |||
Tax effect | (1,756) | (127) | ||
Net of tax | 3,808 | 258 | ||
Unrealized holding gain (loss) arising during the period | (1,060) | |||
Tax effect | 334 | |||
Net of tax | (726) | |||
Net current period other comprehensive loss | 3,082 | 258 | ||
Ending balance | 4,289 | |||
AOCI (Loss), Net | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 1,207 | (473) | ||
Beginning balance, as adjusted | 4,289 | (147) | 1,207 | $ (473) |
Net current period other comprehensive loss | 3,082 | 258 | ||
Ending balance | 4,289 | (147) | ||
AOCI (Loss), Net | ASU 2016-01 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 1,207 | (405) | ||
Cumulative effect of adopting new accounting standard ASU 2016-01, net of taxes | 0 | (68) | ||
Beginning balance, as adjusted | $ 1,207 | $ (405) | $ 1,207 | $ (405) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax expense | $ (2,906) | $ (3,777) |
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 | 975 | |
Income tax expense | (387) | |
Total reclassifications, net of income tax | $ 588 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Outstanding following off-balance-sheet financial instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 60,954 | $ 64,947 |
Variable Rate | 191,563 | 193,767 |
Undrawn lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 15,695 | 17,204 |
Variable Rate | 191,563 | 193,767 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 45,259 | 47,743 |
Variable Rate | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 60,954 | $ 64,947 |
Maturity of stand by letters of credit and time deposits | one year | |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed interest rate off-balance-sheet financial instruments | 3.00% | 3.00% |
Variable interest rate off-balance-sheet financial instrument | 2.00% | 3.50% |
Commitments term | 1 year | 1 year |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed interest rate off-balance-sheet financial instruments | 5.60% | 5.60% |
Variable interest rate off-balance-sheet financial instrument | 8.30% | 9.80% |
Commitments term | 2 years | |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 45,259 | $ 47,743 |
Amount of off-balance-sheet financial instruments collateral received | $ 27,700 | $ 29,800 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of non-interest income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total non-interest income | $ 3,329 | $ 2,354 |
Service charges on deposit accounts | ||
Non-interest income | 1,081 | 819 |
Prepaid third-party debit card incomes | ||
Non-interest income | 1,621 | 1,257 |
Other service charges and fees | ||
Non-interest income | $ 627 | $ 278 |
DERIVATIVES - Derivative positi
DERIVATIVES - Derivative position (Details) - Derivatives designated as hedging instruments $ in Thousands | Mar. 31, 2020USD ($) |
Interest rate caps related to customer deposits | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount, derivative asset | $ 300,000 |
Fair value | 1,892 |
Other assets | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount, derivative asset | 300,000 |
Fair value | 1,892 |
Deposit liability | Interest rate caps related to customer deposits | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount, derivative liability | $ 300,000 |
DERIVATIVES - Cash flow hedge a
DERIVATIVES - Cash flow hedge accounting (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Derivatives designated as hedging instruments | Interest rate caps related to customer deposits | Cash flow hedge | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Amount of Loss Recognized in OCI on Derivative | $ (726) |