Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 04, 2021 | Jun. 30, 2020 | |
Document And Entity Information (Abstract) | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity Registrant Name | METROPOLITAN BANK HOLDING CORP. | ||
Entity File Number | 001-38282 | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 13-4042724 | ||
Entity Address, Address Line One | 99 Park Avenue | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10016 | ||
City Area Code | 212 | ||
Local Phone Number | 659-0600 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | MCB | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 220 | ||
Entity Common Stock, Shares Outstanding | 8,344,954 | ||
Entity Central Index Key | 0001476034 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 8,692 | $ 8,116 |
Overnight deposits | 855,613 | 381,104 |
Total cash and cash equivalents | 864,305 | 389,220 |
Investment securities available for sale, at fair value, substantially restricted | 266,096 | 234,942 |
Investment securities held to maturity (estimated fair value of $2,827 and $3,712 at December 31, 2020 and 2019, respectively) | 2,760 | 3,722 |
Equity investments | 2,313 | 2,224 |
Total securities | 271,169 | 240,888 |
Other investments | 11,597 | 21,437 |
Loans, net of deferred fees and unamortized costs | 3,137,053 | 2,672,949 |
Allowance for loan losses | (35,407) | (26,272) |
Net loans | 3,101,646 | 2,646,677 |
Receivable from global payments business, net | 27,259 | 11,581 |
Accrued interest receivable | 13,249 | 8,862 |
Premises and equipment, net | 13,475 | 12,100 |
Prepaid expenses and other assets | 18,388 | 17,074 |
Goodwill | 9,733 | 9,733 |
Total assets | 4,330,821 | 3,357,572 |
Deposits: | ||
Noninterest-bearing demand deposits | 1,715,042 | 1,090,479 |
Interest-bearing deposits | 2,103,471 | 1,700,295 |
Total deposits | 3,818,513 | 2,790,774 |
Federal Home Loan Bank of New York advances | 0 | 144,000 |
Trust preferred securities | 20,620 | 20,620 |
Subordinated debt, net of issuance cost | 24,657 | 24,601 |
Secured borrowings | 36,964 | 42,972 |
Accounts payable, accrued expenses and other liabilities | 61,645 | 23,556 |
Accrued interest payable | 712 | 1,229 |
Prepaid third-party debit cardholder balances | 26,923 | 10,696 |
Total liabilities | 3,990,034 | 3,058,448 |
Commitments and Contingencies (See Note 11) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value, 25,000,000 shares authorized, 8,295,272 and 8,312,918 shares issued and outstanding at December 31, 2020 and 2019, respectively | 82 | 82 |
Additional paid in capital | 218,899 | 216,468 |
Retained earnings | 120,830 | 81,364 |
Accumulated other comprehensive loss, net of tax effect | 973 | 1,207 |
Total stockholders' equity | 340,787 | 299,124 |
Total liabilities and stockholders' equity | 4,330,821 | 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 December 31, 2020 and 2019 | 3 | 3 |
Total stockholders' equity | $ 3 | $ 3 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Securities held to maturity | $ 2,827 | $ 3,712 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 8,295,272 | 8,312,918 |
Common stock, shares outstanding | 8,295,272 | 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 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest and dividend income: | ||
Loans, including fees | $ 136,497 | $ 117,124 |
Securities: | ||
Taxable | 3,208 | 3,702 |
Tax-exempt | 11 | |
Money market funds and commercial paper | 34 | 147 |
Overnight deposits | 2,546 | 7,752 |
Other interest and dividends | 812 | 1,044 |
Total interest income | 143,097 | 129,780 |
Interest expense: | ||
Deposits | 14,244 | 25,533 |
Borrowed funds | 1,742 | 4,118 |
Trust preferred securities interest expense | 572 | 899 |
Subordinated debt interest expense | 1,618 | 1,620 |
Total interest expense | 18,176 | 32,170 |
Net interest income | 124,921 | 97,610 |
Provision for loan losses | 9,488 | 4,223 |
Net interest income after provision for loan losses | 115,433 | 93,387 |
Non-interest income: | ||
Service charges on deposit accounts | 3,728 | 3,556 |
Global payments group revenue | 8,464 | 5,643 |
Other service charges and fees | 1,477 | 1,366 |
Unrealized gain on equity securities | 48 | 64 |
Gain on sale of securities | 3,286 | |
Total non-interest income | 17,003 | 10,629 |
Non-interest expense: | ||
Compensation and benefits | 39,797 | 31,242 |
Bank premises and equipment | 8,340 | 6,530 |
Professional fees | 4,122 | 3,427 |
Licensing fees and technology costs | 13,040 | 10,992 |
Other expenses | 9,219 | 7,764 |
Total non-interest expense | 74,518 | 59,955 |
Net income before income tax expense | 57,918 | 44,061 |
Income tax expense | 18,452 | 13,927 |
Net income | $ 39,466 | $ 30,134 |
Earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 4.76 | $ 3.63 |
Diluted earnings per common share (in dollars per share) | $ 4.66 | $ 3.56 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 39,466 | $ 30,134 |
Other comprehensive income: | ||
Unrealized holding gain arising during the period | 4,877 | 2,358 |
Reclassification adjustment for gain included in net income | (3,286) | |
Tax effect | (514) | (746) |
Net of tax | 1,077 | 1,612 |
Unrealized loss on cash flow hedges: | ||
Unrealized holding loss arising during the period | (1,925) | |
Tax effect | 614 | |
Net of tax | (1,311) | |
Total other comprehensive (loss) income | (234) | 1,612 |
Comprehensive income | $ 39,232 | $ 31,746 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Class B Preferred StockPreviously Reported | Class B Preferred Stock | Previously ReportedCommon Stock | Previously ReportedAdditional Paid-in Capital | Previously ReportedRetained Earnings | Previously ReportedAOCI (Loss), Net | Previously Reported | Restatement Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI (Loss), Net | Total |
Balance at Dec. 31, 2018 | $ 3,000 | $ 3,000 | $ 82,000 | $ 213,490,000 | $ 51,415,000 | $ (473,000) | $ 264,517,000 | $ 82,000 | $ 213,490,000 | $ 51,230,000 | $ (405,000) | $ 264,400,000 | |
Balance (in shares) at Dec. 31, 2018 | 272,636 | 272,636 | 8,217,274 | 8,217,274 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Restricted stock grants, net of forfeiture (in shares) | 104,862 | ||||||||||||
Employee and non-employee stock-based compensation | 3,067,000 | 3,067,000 | |||||||||||
Repurchase of shares for tax withholding for restricted stock vesting | (89,000) | (89,000) | |||||||||||
Repurchase of shares for tax withholding for restricted stock vesting (in shares) | (9,218) | ||||||||||||
Net income | 30,134,000 | 30,134,000 | |||||||||||
Other comprehensive income | 1,612,000 | 1,612,000 | |||||||||||
Balance at Dec. 31, 2019 | $ 3,000 | $ 3,000 | $ 82,000 | $ 216,468,000 | 81,364,000 | 1,207,000 | $ 299,124,000 | $ 82,000 | 216,468,000 | 81,364,000 | 1,207,000 | 299,124,000 | |
Balance (in shares) at Dec. 31, 2019 | 272,636 | 272,636 | 8,312,918 | 8,312,918 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cumulative effect of adopting new accounting standard | ASU 2016-01 | $ 68,000 | $ (68,000) | 68,000 | ||||||||||
Cumulative effect of adopting new accounting standard | ASU 2014-09 | (117,000) | (117,000) | |||||||||||
Cumulative effect of adopting new accounting standard | ASU 2014-09 | $ 117,000 | ||||||||||||
Cumulative effect of adopting new accounting standard | 81,364,000 | ||||||||||||
Restricted stock grants, net of forfeiture (in shares) | (3,298) | ||||||||||||
Employee and non-employee stock-based compensation | 3,312,000 | 3,312,000 | |||||||||||
Repurchase of shares for tax withholding for restricted stock vesting | (881,000) | (881,000) | |||||||||||
Repurchase of shares for tax withholding for restricted stock vesting (in shares) | (14,348) | ||||||||||||
Net income | 39,466,000 | 39,466,000 | |||||||||||
Other comprehensive income | (234,000) | (234,000) | |||||||||||
Balance at Dec. 31, 2020 | $ 3,000 | $ 82,000 | $ 218,899,000 | $ 120,830,000 | $ 973,000 | 340,787,000 | |||||||
Balance (in shares) at Dec. 31, 2020 | 272,636 | 8,295,272 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cumulative effect of adopting new accounting standard | $ 120,830,000 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 39,466 | $ 30,134 |
Adjustments to reconcile net income to net cash: | ||
Depreciation and amortization | 2,538 | 1,613 |
Net amortization of premiums on securities and interest rate cap | 2,009 | 543 |
Amortization of subordinated debt issuance costs | 56 | 56 |
Provision for loan and lease losses | 9,488 | 4,223 |
Employee and non-employee stock-based compensation | 3,312 | 3,067 |
Net change in deferred loan fees | 296 | 2,837 |
Deferred income tax benefit (expense) | 290 | (1,865) |
Gain on call of securities | (3,286) | |
Loss (gain) on sale of loans | 190 | (86) |
Dividends earned on CRA fund | (41) | (50) |
Unrealized gain of equity securities | (48) | (64) |
Net change in: | ||
Accrued interest receivable | (4,387) | (3,355) |
Accounts payable, accrued expenses and other liabilities | 38,089 | 5,117 |
Change in global payments balances | 16,227 | 3,009 |
Change in accrued interest payable | (517) | (53) |
Receivable from global payments, net | (15,678) | (1,860) |
Prepaid expenses and other assets | (734) | (4,310) |
Net cash provided by operating activities | 87,270 | 38,956 |
Cash flows from investing activities: | ||
Loan originations and payments, net | (464,685) | (777,181) |
Loans purchased | (11,734) | (51,784) |
Proceeds from the sale of loans held for sale | 11,476 | 21,502 |
Redemptions of other investments | 10,980 | 12,354 |
Purchases of other investments | (1,140) | (11,007) |
Purchase of securities available for sale | (234,366) | (226,858) |
Proceeds from calls of securities available for sale | 30,000 | 1,065 |
Proceeds from sales of securities available for sale | 111,422 | |
Proceeds from paydowns and maturities of securities available for sale | 64,973 | 23,136 |
Proceeds from paydowns of securities held to maturity | 932 | 820 |
Purchase of derivative contract | (2,980) | |
Purchase of premises and equipment, net | (3,913) | (6,836) |
Net cash used in investing activities | (489,035) | (1,014,789) |
Cash flows from financing activities: | ||
Redemption of common stock for tax withholdings for restricted stock vesting | (881) | (89) |
Proceeds from FHLB advances | 1,028,000 | |
Repayments of FHLB advances | (144,000) | (1,069,000) |
Proceeds from (repayments of) secured borrowings | (6,008) | 42,972 |
Net increase in deposits | 1,027,739 | 1,130,220 |
Net cash provided by financing activities | 876,850 | 1,132,103 |
Increase in cash and cash equivalents | 475,085 | 156,270 |
Cash and cash equivalents at the beginning of the period | 389,220 | 232,950 |
Cash and cash equivalents at the end of the period | 864,305 | 389,220 |
Cash paid for: | ||
Interest | 18,693 | 32,223 |
Income Taxes | 19,085 | 15,185 |
Non-cash item: | ||
Transfer of loans held for investment to held for sale | $ 1,716 | $ 21,502 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 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 commercial banking services to individuals and businesses. Its primary lending products are commercial real estate loans, multi-family 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 cash flows from operations of businesses. 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 (the “FDIC”) under the maximum amounts allowed by law. The Bank commenced operations on June 22, 1999. The Company is subject to regulations of certain state and federal agencies and, accordingly, is periodically examined by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Company’s business is susceptible to being affected by state and federal legislation and regulations. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 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. The consolidated financial statements include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated. The Consolidated Financial Statements (the “financial statements”) reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the years presented. In preparing the 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. A summary of the Company’s significant accounting policies consistently applied in the preparation of the accompanying financial statements follows: Use of Estimates Cash Flows Securities On January 1, 2019, the Company adopted a new accounting standard for Financial Instruments (ASU 2016-01), which required equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Upon adoption, equity securities previously classified as AFS are presented separately on the balance sheet as equity securities. The amount of unrealized gain (loss), net of tax, related to these securities was reclassified from accumulated other comprehensive income to retained earnings as of January 1, 2019. Upon adoption, the amendments related to equity securities without readily determinable fair values (including disclosure requirements) were applied prospectively to equity investments that existed at January 1, 2019. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Gains and losses on sales of securities are recognized in the consolidated statements of operations upon sale. Management evaluates AFS and HTM securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the statement of operations and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Accounts Receivable & Receivable from Global Payments Business, Net Revenue Recognition Technology Costs: Technology costs are primarily comprised of licensing fees on certain deposit accounts held by bankruptcy trustees and are expensed as incurred. These accounts require the use of a software interface provided by a third party. Licensing fees amounted to Transfers of Financial Assets transferred assets through an agreement to repurchase them before their maturity. Transfers of financial assets that do not meet the criteria to be accounted for as sales are recorded as secured borrowings. Loans and Allowance for Loan Losses The allowance for loan losses is maintained at an amount management deems adequate to cover probable incurred credit losses. In determining the level to be maintained, management evaluates many factors, including current economic trends, industry experience, historical loss experience, loan concentrations, the borrower’s ability to repay and repayment performance and estimated collateral values. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is considered to be impaired when it is probable that the Bank will be unable to collect all principal and interest amounts according to the contractual terms of the loan agreement. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. All commercial and commercial real estate loans are individually evaluated for credit risk at least annually, and all classified loans are individually evaluated for impairment quarterly. Large groups of smaller balance homogenous loans such as residential real estate loans are collectively evaluated for impairment, and accordingly, are not separately evaluated for impairment disclosures unless an individual loan is classified. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. When a loan is modified and concessions have been made to the original contractual terms, such as reductions in interest rate or deferral of interest or principal payments, due to the borrower’s financial condition, the modification is known as a troubled debt restructuring (“TDR”). TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Bank determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component of the allowance covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Bank over a rolling two-year period. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: (1) changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; (2) changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; (3) changes in the trends in the type and volume and in terms of loans; (4) changes in the experience, ability, and depth of lending management and other relevant staff; (5) changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans; (6) changes in the quality of the Bank’s loan review system; (7) changes in the value of underlying collateral for collateral-dependent loans; (8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and (9) the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. The following portfolio segments have been identified: Construction loans, Commercial Real Estate loans, Multi-Family loans, One-to-Four Family loans, Commercial & Industrial loans and Consumer loans. The risk characteristics of each of the identified portfolio segments are as follows: Construction — If the estimate of value proves to be inaccurate, the value of the building may be insufficient to assure full repayment if liquidation is required. If foreclosure is required on a building before or at completion due to a default, there can be no assurance that all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs will be recovered. Commercial Real Estate — Multi-family — One-to-Four Family — Commercial & Industrial — Consumer — While management uses available information to recognize losses on loans, future additions to the allowance may be necessary, based on changes in economic conditions or any other factors used in management’s determination. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Interest income on loans is accrued and credited to operations based upon the principal amounts outstanding. Loans are placed on non-accrual when a loan is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more. Delinquent status is based on the contractual terms of the loan. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on such loans are applied as a reduction of the loan principal balance when the collectability of principal, wholly or partially, is in doubt. Interest payments received may be deferred on non-accrual loans in which the principal balance is deemed to be collectible. Interest income is recognized when all the principal and interest amounts contractually due are brought current and the loans are returned to accrual status. Goodwill The goodwill of $9.7 million is associated with a purchase of the prepaid third-party debit card business. The Company performed an impairment assessment and determined that no impairment of goodwill existed as of December 31, 2020 or 2019. Stock-Based Compensation The Company also awards performance-based restricted stock units (“PRSUs”) to employees. The PRSUs are classified as either equity or liability, depending on certain criteria provided in ASC 718, Stock Based Compensation. This classification affects whether the measurement of fair value is fixed (i.e., measured only once) on the grant date or whether fair value will be remeasured each reporting period until settled. On the grant date, the estimate of equity-classified awards’ fair value would be fixed, the cumulative amount of previously recognized compensation cost would be adjusted, and the Company would no longer have to remeasure the award. If the award is liability-classified, the awards would continue to be marked to fair value each reporting period until settlement. The Company recognizes compensation cost for awards with performance conditions if and when it concludes that it is probable that the performance conditions will be achieved. The Company assesses the probability of vesting (i.e. that the performance conditions will be met) at each reporting period and, if required, adjusts compensation cost based on its probability assessment. Concentrations of Credit Risk Premises and Equipment three Other Investments 2020. $5.0 million of an SBA Loan Fund was called in the second quarter of 2020. As of December 31, 2019, the Company held FRB and FHLB stock of $7.3 million and $8.1 million, respectively, and an SBA Loan Fund investment of $5.0 million. Derivatives: 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 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. Comprehensive Income Restrictions on Cash Earnings per Common Share Income Taxes A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Loan Commitments and Related Financial Instruments Fair Value of Financial Instruments Loss Contingencies Reclassifications Operating segments Recently Issued Accounting Standards |
SUMMARY OF RECENT ACCOUNTING PR
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 — SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS 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 means ASU 2014-09 was 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 AFS 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 June 2020, the FASB approved a delay for the implementation of the ASU. Accordingly, the amendments in this update are effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Under ASU 2016-02, the Company will recognize a right-of-use asset and a lease obligation liability on the consolidated statement of financial condition, 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. ASU 2016-2013 requires that financial institutions and other organizations will use forward-looking information to better inform their credit loss estimates. This guidance also amends the accounting for credit losses on AFS debt securities and purchased financial assets with credit deterioration. In October 2019, the FASB approved a delay for the implementation of the ASU. Accordingly, as an EGC, 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. In March 2020, the FASB issued ASU 2020- 04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Management has established a committee to evaluate the impact of the transition from Libor on the business and consolidated financial statement, but cannot yet determine the magnitude of such impact. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE 4 — INVESTMENT SECURITIES The following table summarizes the amortized cost and fair value of securities available for sale and securities held to maturity at December 31, 2020 and 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses (in thousands): Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2020 Cost Gains Losses Fair Value Debt securities available for sale Residential mortgage securities $ 192,163 $ 2,599 $ (74) $ 194,688 Commercial mortgage securities 32,589 997 (94) 33,492 U.S. Government agency securities 37,997 — (81) 37,916 Total securities available for sale $ 262,749 $ 3,596 $ (249) $ 266,096 Held-to-Maturity Securities: Residential mortgage securities 2,760 67 — 2,827 Total securities held to maturity $ 2,760 $ 67 $ — $ 2,827 Equity investments: CRA Mutual Fund 2,299 14 — 2,313 Total equity investment securities $ 2,299 $ 14 $ — $ 2,313 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 equity investment securities $ 2,258 $ — $ (34) $ 2,224 The proceeds from sales and calls of securities during the years ended December 31, 2020 and 2019 were $141.4 million and $1.1 million, respectively. The following table summarizes the proceeds from sales and calls of securities and associated gains for the years ended December 31, 2020 and 2019 (in thousands): Year Ended December 31, 2020 2019 Proceeds 141,422 $ 1,065 Gross gains 3,286 $ — Tax impact (1,036) $ — The gains of $3.3 million in the table above resulted from sales of $108.1 million (amortized cost) of AFS securities in 2020. Proceeds from the sale were $111.4 million. The following table summarizes, by contractual maturity, the amortized cost and fair value of debt securities at December 31, 2020 and 2019. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. The table does not include the effect of principal repayments. Equity securities, primarily investment in mutual funds, have been excluded from the table. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately (in thousands): Held-to-Maturity Available-for-Sale At December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ — $ — $ — $ — One to five years — — 37,997 37,916 Five to ten years — — — — Due after ten years — — — — Total $ — $ — $ 37,997 $ 37,916 Residential mortgage securities $ 2,760 2,827 192,163 194,688 Commercial mortgage securities — — 32,589 33,492 Total Securities $ 2,760 $ 2,827 $ 262,749 $ 266,096 Held-to-Maturity Available-for-Sale At December 31, 2019 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 December 31, 2020. At December 31, 2019, there were $126.2 million of securities available for sale pledged as collateral for certain deposits. At December 31, 2020 and 2019, all of the mortgage-backed securities and collateralized mortgage obligations held by the Bank were issued by U.S. government-sponsored entities and agencies. Securities with unrealized losses for the years ended December 31, 2020 and 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized 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 December 31, 2020 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available for sale Residential mortgage securities $ 33,734 $ (74) $ — $ — $ 33,734 $ (74) Commercial mortgage securities 12,314 (93) 385 (1) 12,699 (94) U.S. Government agency securities 37,916 (81) — — 37,916 (81) Total securities available for sale $ 83,964 $ (248) $ 385 $ (1) $ 84,349 $ (249) 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 of 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 December 31, 2020 or 2019 since the decline in market value was 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 years ended December 31, 2020 or 2019. As of December 31, 2020 and 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
LOANS | 12 Months Ended |
Dec. 31, 2020 | |
LOANS | |
LOANS | NOTE 5 — LOANS Net loans consist of the following as of December 31, 2020 and 2019 (in thousands): December 31, 2020 December 31, 2019 Real estate Commercial $ 1,887,505 $ 1,668,236 Construction 112,290 30,827 Multi-family 433,239 375,611 One-to-four family 71,354 82,670 Total real estate loans 2,504,388 2,157,344 Commercial and industrial 591,500 448,619 Consumer 46,431 71,956 Total loans 3,142,319 2,677,919 Deferred fees (5,266) (4,970) Loans, net of deferred fees and unamortized costs 3,137,053 2,672,949 Allowance for loan losses (35,407) (26,272) Balance at the end of the period $ 3,101,646 $ 2,646,677 Included in commercial and industrial loans at December 31, 2020 are $3.8 million of Paycheck Protection Program loans. The following tables represent the changes in the allowance for loan losses for the years ended December 31, 2020 and 2019, by portfolio segment. The portfolio segments represent the categories that the Bank uses to determine its allowance for loan losses (in thousands): Commercial Commercial One-to-four Year ended December 31, 2020 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for loan losses: Beginning balance $ 15,317 $ 7,070 $ 411 $ 2,453 $ 267 $ 754 $ 26,272 Provision (credit) for loan losses 1,926 5,165 1,182 208 (61) 1,068 9,488 Loans charged-off — (254) — — — (251) (505) Recoveries — 142 — — — 10 152 Total ending allowance balance $ 17,243 $ 12,123 $ 1,593 $ 2,661 $ 206 $ 1,581 $ 35,407 Commercial Commercial One-to-four Year ended December 31, 2019 Real Estate & Industrial Construction Multi-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 6,280 (2,678) (214) 406 39 390 4,223 Loans charged-off — (798) — — — (389) (1,187) Recoveries — 4,289 — — — 5 4,294 Total ending allowance balance $ 15,317 $ 7,070 $ 411 $ 2,453 $ 267 $ 754 $ 26,272 Net charge-offs were $353,000 during the year ended December 31, 2020 and net recoveries were $3.1 million during the year ended December 31, 2019. Included in the net recoveries during the year ended December 31, 2019 were $4.3 million of recoveries related primarily to the recovery of medallion loans previously charged off in 2017 and 2016. The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method as of December 31, 2020 and 2019 (in thousands): Commercial Commercial One-to-four At December 31, 2020 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ 3,662 $ — $ — $ 53 $ 1,203 $ 4,918 Collectively evaluated for impairment 17,243 8,461 1,593 2,661 153 378 30,489 Total ending allowance balance $ 17,243 $ 12,123 $ 1,593 $ 2,661 $ 206 $ 1,581 $ 35,407 Loans: Individually evaluated for impairment $ 10,345 $ 4,192 $ — $ — $ 999 $ 2,197 $ 17,733 Collectively evaluated for impairment 1,877,160 587,308 112,290 433,239 70,355 44,234 3,124,586 Total ending loan balance $ 1,887,505 $ 591,500 $ 112,290 $ 433,239 $ 71,354 $ 46,431 $ 3,142,319 Commercial Commercial One-to-four At December 31, 2019 Real Estate & Industrial Construction Multi-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 information related to loans determined to be impaired by class of loans as of and for the years ended December 31, 2020 and 2019 (in thousands): Unpaid Principal Allowance for Loan Average Recorded Interest Income At December 31, 2020 Balance Recorded Investment Losses Allocated Investment Recognized With an allowance recorded: One-to-four family $ 610 $ 480 $ 53 $ 491 $ 19 Consumer 2,197 2,197 1,203 1,503 88 Commercial and industrial 4,192 4,192 3,662 3,456 — Total $ 6,999 $ 6,869 $ 4,918 $ 5,450 $ 107 Without an allowance recorded: One-to-four family 666 $ 519 $ — $ 996 $ 20 Commercial real estate 10,345 10,345 — 2,360 38 Commercial and industrial — — — 951 — Total $ 11,011 $ 10,864 $ — $ 4,307 $ 58 Unpaid Principal Allowance for Loan Average Recorded Interest Income At December 31, 2019 Balance Recorded Investment Losses Allocated Investment Recognized With an allowance recorded: One-to-four family $ 633 $ 503 $ 64 $ 411 $ 19 Consumer 731 728 311 311 13 Commercial and industrial 1,047 1,047 805 419 — Total $ 2,411 $ 2,278 $ 1,180 $ 1,141 $ 32 Without an allowance recorded: One-to-four family 3,028 $ 2,881 $ — $ 2,063 $ 124 Commercial real estate 367 367 — 375 15 Total $ 3,395 $ 3,248 $ — $ 2,438 $ 139 The recorded investment in loans excludes accrued interest receivable and loan origination fees. Interest income was recognized on a cash basis for impaired loans. Interest income that would have been recorded for the years ended December 31, 2020 and 2019, had non-accrual loans been current according to their original terms, was immaterial. For a loan to be considered impaired, management determines after review whether it is probable that the Bank will 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, TDRs and any loans for which management believes that it is probable that the Bank will be unable to collect all amounts due, including both interest and principal, according to the contractual terms of the loan agreement. Impairment is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For loans that are collateral dependent, the fair value of the collateral is used to determine the fair value of the loan. The fair value of the collateral is determined based on recent appraised values. The fair value of the collateral or present value of expected cash flows is compared to the carrying value to determine if any write-down or specific loan loss allowance allocation is required. The following tables present the recorded investment in non-accrual loans, loans past due over 90 days and still accruing by class of loans as of December 31, 2020 and 2019 (in thousands): At December 31, 2020 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ 4,192 $ — One-to-four family — — Consumer 1,428 769 Total $ 5,620 $ 769 At December 31, 2019 Nonaccrual 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 December 31, 2020 and 2019 were performing in accordance with their structured terms. The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 2020 and 2019 (in thousands): Greater 30-59 60-89 than 90 Total past Current At December 31, 2020 Days Days days due loans Total Commercial real estate $ 40 $ 9,984 $ — $ 10,024 $ 1,877,481 $ 1,887,505 Commercial & industrial 4,429 6,400 4,192 15,021 576,479 591,500 Construction — — — — 112,290 112,290 Multi-family — — — — 433,239 433,239 One-to-four family 2,908 — — 2,908 68,446 71,354 Consumer 112 32 2,197 2,341 44,090 46,431 Total $ 7,489 $ 16,416 $ 6,389 $ 30,294 $ 3,112,025 $ 3,142,319 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 Multi-family — — — — 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 are classified as impaired. Included in impaired loans at December 31, 2020 and 2019 were loans modified as TDRs with a recorded investment of $1.4 million. The Company had allocated $53,000 and $81,000 of specific reserves to customers whose loan terms have been modified as TDRs as of December 31, 2020 and 2019, respectively. The Company has not committed to lend additional amounts as of December 31, 2020 and 2019 to customers with outstanding loans that are classified as TDRs. The following tables present the recorded investment in TDRs by class of loans as of December 31, 2020 and 2019 (in thousands): At December 31, 2020 Troubled Debt Restructuring Commercial real estate $ 361 One-to-four family 999 Total $ 1,360 At December 31, 2019 Troubled Debt Restructuring Commercial real estate $ 367 One-to-four family 1,039 Consumer 35 Total $ 1,441 There were no loans modified as a TDR during the year ended December 31, 2020. TDRs include loans with one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk. Modifications involving a reduction of the stated interest rate and/or an extension of the maturity date were for a period of three to five years . In 2020 and 2019, there were no TDRs for which there was a payment default within twelve months following the modification. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Bank’s internal underwriting policy. Credit Quality Indicators The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Except for one-to-four family loans and consumer loans, the Bank analyzes 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, which was previously presented. An analysis is performed on a quarterly basis for loans classified as special mention, substandard, or doubtful. The Bank uses the following definitions for risk ratings: Special Mention — Substandard — Doubtful — Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Special At December 31, 2020 Pass Mention Substandard Doubtful Total Commercial real estate $ 1,877,160 $ 361 $ 9,984 $ — $ 1,887,505 Commercial & industrial 583,809 3,499 — 4,192 591,500 Construction 112,290 — — — 112,290 Multi-family 433,239 — — — 433,239 Total $ 3,006,498 $ 3,860 $ 9,984 $ 4,192 $ 3,024,534 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 COVID-19 Loan Modifications 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 COVID-19 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 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. As of December 31, 2020, the Company had 63 loan deferrals amounting to $220.3 million, or 7.0% of total loans, that were modified in accordance with the COVID-19 Guidance and the CARES Act. These loans, in accordance with COVID-19 guidance and the CARES Act, are not included in disclosures related to past due loans. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | NOTE 6 — PREMISES AND EQUIPMENT Premises and equipment are summarized as follows as of December 31, 2020 and 2019 (in thousands): Year Ended December 31, 2020 2019 Furniture and Equipment (useful life of 3 $ 12,343 $ 9,961 Furniture and Equipment in Process — 2,175 Leasehold Improvements (useful life of 3 15,687 11,092 Leasehold Improvements in Process — 3,768 Total Premises and Equipment 28,030 26,996 Less accumulated depreciation and amortization (14,555) (14,896) Total Premises and Equipment, net $ 13,475 $ 12,100 Depreciation and amortization expense amounted to $2.5 million and $1.6 for the years ended December 31, 2020 and 2019, respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
DEPOSITS | |
DEPOSITS | NOTE 7 — DEPOSITS Deposits consisted of the following as of December 31, 2020 and 2019 (in thousands): At December 31, 2020 2019 Noninterest bearing demand accounts $ 1,715,042 $ 1,090,479 Money market 1,993,514 1,573,716 Savings accounts 17,895 16,204 Time Deposits: Time deposits under $100,000 4,172 5,483 Time deposits $100,000 and over 87,890 104,892 Total deposits $ 3,818,513 $ 2,790,774 Time deposits greater than $250,000 at December 31, 2020 and 2019 were $42.5 million and $61.4 million, respectively. The following are scheduled maturities of time deposits as of December 31, 2020 (in thousands): At December 31, 2020 2021 $ 51,321 2022 26,466 2023 7,270 2024 3,175 2025 3,830 Total time deposits $ 92,062 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2020 | |
BORROWINGS | |
BORROWINGS | NOTE 8 — BORROWINGS FHLB Advances Each advance was payable at its maturity date, with a prepayment penalty for fixed rate advances. Advances are collateralized by mortgage loans under a blanket lien agreement in the amount of approximately $499.8 million and $437.8 million as of December 31, 2020 and 2019, respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company is eligible to borrow a total of approximately $499.8 million as of December 31, 2020. Trust Preferred Securities Payable On July 14, 2006, the Company established MetBank Capital Trust II, a Delaware statutory trust (“Trust II”). The Company received all of the common stock of Trust II in exchange for contributed capital of $310,000. Trust II issued $10 million of preferred capital securities to investors in a private transaction and invested the proceeds, combined with the proceeds from the sale of Trust II’s common capital securities, in the Company through the purchase of $10.3 million aggregate principal amount of Floating Rate Junior Subordinated Debentures (the “Debentures II”) issued by the Company. The Debentures II, the sole assets of Trust II, mature on October 7, 2036, and bear interest at a floating rate of three-month LIBOR The Company is not considered the primary beneficiary of these trusts; therefore, the trusts are not consolidated in the Company’s financial statements. Interest on the subordinated debentures may be deferred by the Company at any time or from time to time for a period not exceeding 20 consecutive quarterly payments (5 years), provided there is no event of default. At the end of the deferral period, the Company must pay accrued interest, at which point it may elect a new deferral period provided that no deferral may extend beyond maturity. The investments in the common stock of Trust I and Trust II are included in other assets on the consolidated statements of financial condition. The subordinated debentures may be included in Tier 1 capital (with certain applicable limitations) under current regulatory guidelines and interpretations. Subordinated Debt In accordance with the terms of the subordinated notes, the interest rate from March 15, 2022 to the maturity date resets quarterly to an interest rate per annum equal to the current three-month LIBOR (not less than zero) plus 426 basis points, payable quarterly in arrears. The Company may redeem the subordinated notes beginning with the interest payment date of March 15, 2022 and on any scheduled interest payment date thereafter. The subordinated notes may be redeemed in whole or in part, at a redemption price equal to 100% of the principal amount of the subordinated notes plus any accrued and unpaid interest. The terms of the trust preferred securities and subordinated debt may be impacted by the transition from LIBOR to an alternative U.S. dollar reference interest rate, potentially SOFR, in 2022. On November 30, 2020, announcement by LIBOR’s administrator, the ICE Benchmark Administration, signaled to the market that USD LIBOR for the most liquid maturities is now likely to continue to be published until June 30, 2023; however, no definitive announcement has been made on this delay. Management is currently evaluating the impact of the transition on the trust preferred securities payable. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | NOTE 9 — INCOME TAXES Income tax expense consisted of the following for the years ended December 31, 2020 and 2019 (in thousands): Year Ended December 31, (in thousands) 2020 2019 Current Federal $ 10,936 $ 9,222 State and local 7,226 6,570 Total current 18,162 15,792 Deferred Federal 139 (845) State and local 151 (1,020) Total deferred 290 (1,865) Total income tax expense $ 18,452 $ 13,927 Deferred tax assets and liabilities consist of the following (in thousands): At December 31, 2020 2019 Deferred tax assets: Allowance for loan losses $ 11,145 $ 8,303 Interest on nonaccrual loans — 24 Off balance sheet reserves 57 57 Restricted stock 90 188 Tangible asset 14 17 Non-qualified stock options 292 294 Net unrealized loss on interest rate cap 564 — Other — 51 Total gross deferred tax assets 12,162 8,934 Deferred tax liabilities: Depreciation and amortization 3,731 781 Net unrealized gain on securities available for sale 1,067 604 Pass-through income 59 69 Prepaid assets 355 341 Total gross deferred tax liabilities 5,212 1,795 Net deferred tax asset, included in other assets $ 6,950 $ 7,139 The following is a reconciliation of the Company’s statutory federal income tax rate of 21% to its effective tax rate for the years ended December 31, 2020 and 2019 (in thousands): For the year ended December 31, 2020 2019 Tax expense/ Tax expense/ (benefit) Rate (benefit) Rate Pretax income at statutory rates $ 12,163 21.00 % $ 9,253 21.00 % State and local taxes, net of federal income tax benefit 5,828 10.06 4,385 9.95 Nondeductible expenses 457 0.79 430 0.97 Excess tax deduction on equity awards (59) (0.10) (132) (0.30) Tax-exempt income, net — — (2) (0.00) Other 63 0.11 (7) (0.01) Effective income tax expense/rate $ 18,452 31.86 % $ 13,927 31.61 % Metropolitan Bank Holding Corp. and the Bank filed consolidated Federal, New York State and New York City tax returns in 2020 and 2019. As of December 31, 2020 and 2019, there are no unrecognized tax benefits, and the Company does not expect this to significantly change in the next twelve months. The Company and its subsidiary are subject to U.S. federal income tax as well as income tax of the State and City of New York. The Company is no longer subject to examination by the U.S. federal and state or local tax authorities for years prior to 2016. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | Deposits from principal officers, directors, and their affiliates at year-end 2020 and 2019 were $4.5 million and $566,000, respectively. A promissory note of $780,000 was made to an executive officer of the Bank during 2016. The note has a fixed interest rate of 2.1% per annum (determined by reference to the 5-year LIBOR rate in effect on the note date, plus 100 basis points ) and interest is payable on the last day of each calendar quarter. The note has a balloon payment term and the due date is August 15, 2021 , with no prepayment penalty. The outstanding balance of the subject loan was $780,000 as of December 31, 2020 and 2019. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 — COMMITMENTS AND CONTINGENCIES The Company leases certain branch properties under operating leases. Approximate future minimum rental payments required under all non-cancellable operating leases, before considering renewal options that generally are present, were as follows (in thousands): Year Ending December 31, 2021 $ 3,947 2022 3,877 2023 3,548 2024 3,506 2025 3,285 Thereafter (and through 2035) 23,417 $ 41,580 Total rent expense for the years ended December 31, 2020 and 2019 was $4.7 million and $3.8 million, respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 12 — FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Level 2: Level 3: Assets and Liabilities Measured on a Recurring Basis Assets measured on a recurring basis are limited to the Bank’s AFS portfolio and equity investments. 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 fair values for substantially all of these securities 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 and liabilities 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 December 31, 2020 Residential mortgage securities $ 194,688 $ — $ 194,688 $ — Commercial mortgage securities 33,492 — 33,492 — U.S. Government agency securities 37,916 — 37,916 — CRA Mutual Fund 2,313 2,313 — — Derivative assets - interest rate cap 770 — 770 — 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 2020 or 2019. There were no material assets measured at fair value on a non-recurring basis at December 31, 2020 or 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 December 31, 2020 and 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 December 31, 2020 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Assets: Cash and due from banks $ 8,692 $ 8,692 $ — $ — $ 8,692 Overnight deposits 855,613 855,613 — — 855,613 Securities available for sale 266,096 — 266,096 — 266,096 Securities held to maturity 2,760 — 2,827 — 2,827 Equity investments 2,313 2,313 — — 2,313 Loans, net 3,101,646 — — 3,094,998 3,094,998 Other investments FRB Stock 7,381 N/A N/A N/A N/A FHLB Stock 2,718 N/A N/A N/A N/A SBA Loan Fund — N/A N/A N/A N/A Disability Fund 1,000 — 1,000 — 1,000 CRA - CD 498 498 — — 498 Derivative assets - interest rate cap 770 — 770 — 770 Accrued interest receivable 13,249 — 414 12,835 13,249 Financial liabilities: Non-interest-bearing demand deposits $ 1,715,042 $ 1,715,042 $ — $ — $ 1,715,042 Money market and savings deposits 2,011,409 2,011,409 — — 2,011,409 Time deposits 92,062 — 93,157 — 93,157 Federal Home Loan Bank of New York advances — — — — — Trust preferred securities payable 20,620 — — 20,001 20,001 Subordinated debt, net of issuance cost 24,657 — 25,375 — 25,375 Accrued interest payable 712 7 591 114 712 Secured borrowings 36,964 — 36,964 — 36,964 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 Assets: Cash and due from banks $ 8,116 $ 8,116 $ — $ — $ 8,116 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 CRA - CD 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 Secured borrowings 42,972 — 42,972 — 42,972 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 13 — STOCKHOLDERS’ EQUITY The Series F, Class B preferred stock is nonvoting and with a par value of $0.01 per share. The stock is subordinate and junior to all indebtedness of the Company and to all other series of preferred stock of the Company. The holders of the stock are entitled to receive ratable dividends as provided herein only if and when dividends are concurrently declared and payable on the shares of common shares. |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 12 Months Ended |
Dec. 31, 2020 | |
STOCK COMPENSATION PLAN | |
STOCK COMPENSATION PLAN | NOTE 14 — 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”). Under the 2009 Plan, there are 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 shares that were 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). At December 31, 2020, there were 311,251 shares issuable under the 2019 EIP. At December 31, 2019, there were 341,562 shares issuable under the 2009 Plan. Stock Options 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 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. There was no compensation cost related to non-vested stock options granted as of December 31, 2020 and 2019 as all stock options were vested. A summary of the status of the Company’s stock option plan and the changes during the year is presented below: 2020 Weighted Average Number of Exercise Options Price Outstanding, beginning of year 231,000 $ 18.00 Granted — — Exercised — — Cancelled/forfeited — — Outstanding, end of year 231,000 $ 18.00 Options vested and exercisable at year-end 231,000 $ 18.00 Aggregate intrinsic value of options outstanding at December 31, 2020 $ 4,220,370 Weighted average remaining contractual life (years) 3.38 The following table summarizes information about stock options outstanding at December 31, 2020: Options Outstanding Range of Average Number Outstanding at Weighted Average Weighted Average Weighted average Exercise Prices December 31, 2020 Remaining Contractual Life Exercise Price intrinsic value $10 – 20 231,000 3.38 $ 18.00 $ 18.27 $21 – 30 — — $ — $ — $10 – 30 231,000 3.38 $ 18.00 $ 18.27 Restricted Stock Awards and 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 $1.5 million and $1.2 million for years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, there was $2.0 million of total unrecognized compensation expense related to the restricted stock grants. The cost is expected to be recognized over a weighted-average period of 1.68 years. In addition, on January 1, 2019, 38,900 restricted shares in the aggregate were granted to members of the Board of Directors in lieu of retainer fees for three years of service. These shares vest one The following table summarizes the changes in the Company’s non-vested restricted stock awards for the years ended December 31, 2020 and 2019. Year Ended December 31, 2020 Year Ended December 31, 2019 Weighted Average Weighted Average Number of Shares Grant Date Fair Value Number of Shares Grant Date Fair Value Outstanding, beginning of period 104,838 $ 29.86 53,957 $ 21.46 Granted 62,092 44.80 106,423 35.36 Forfeited (31,781) 38.24 (1,561) 32.71 Vested (58,860) 31.83 (53,981) 32.22 Outstanding at end of period 76,289 $ 37.01 104,838 $ 29.86 The total fair value of shares vested is $2.1 million and $2.4 for the years ended December 31, 2020 and 2019, respectively. Performance-Based Restricted Stock Units During 2018, the Company established a performance-based long term incentive award program under the 2009 Equity Incentive Plan. During 2018, 90,000 performance-based restricted stock units (“PRSUs”) were awarded under the program. PRSUs are eligible to be earned over a three -year performance period based on the Company’s relative performance on 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 The following table summarizes the changes in the Company’s non-vested PRSU awards for year ended December 31, 2020: For the year ended December 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 $ 1,430,011 Total compensation cost that has been charged against income for this plan for both years ended December 31, 2020 and 2019 was $1.4 million. At December 31, 2020, these awards were fully expensed and are expected to be paid out at their maximum amount of 90,000 shares. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2020 | |
EMPLOYEE BENEFIT PLAN | |
EMPLOYEE BENEFIT PLAN | NOTE 15 — EMPLOYEE BENEFIT PLAN The Company has a 401(k) plan for eligible employees. The contribution for any participant may not exceed the maximum amount allowable by law. Each year, the Company may elect to match a percentage of participant contributions. The Company may also elect each year to make additional discretionary contributions to the plan. The total contributions were $619,000 and $499,000 the years ended December 31, 2020 and 2019, respectively. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 12 Months Ended |
Dec. 31, 2020 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | NOTE 16 — FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The Bank had outstanding the following off-balance-sheet financial instruments whose contract amounts represent credit risk as of December 31, 2020 and 2019 (in thousands): At December 31, 2020 At December 31, 2019 Variable Variable Fixed Rate Rate Fixed Rate Rate Undrawn lines of credit $ 19,024 $ 266,696 $ 17,204 $ 193,767 Letters of credit 34,264 — 47,743 — $ 53,288 $ 266,696 $ 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 both December 31, 2020 and 2019, the Bank’s fixed rate loan commitments are to make loans with interest rates ranging from 3.0% to 5.6% and maturities of one year or more. The amount of collateral obtained, if any, by the Bank upon extension of credit is based on management’s credit evaluation of the borrower. Collateral held varies but may include mortgages on commercial and residential real estate, security interests in business assets, equipment, deposit accounts with the Bank or other financial institutions and securities. The Bank has letters of credit of $34.3 million and $47.7 million as of December 31, 2020 and 2019, respectively, for which the Bank has received collateral in the form of accounts of $26.9 million and $29.8 million as of December 31, 2020 and 2019, respectively. |
REGULATORY CAPITAL
REGULATORY CAPITAL | 12 Months Ended |
Dec. 31, 2020 | |
REGULATORY CAPITAL | |
REGULATORY CAPITAL | NOTE 17 — REGULATORY CAPITAL The Company and Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. At December 31, 2020 and 2019, the Company and the Bank met all applicable regulatory capital requirements to be considered “well capitalized” under regulatory guidelines. The Company and Bank manage their capital to comply with their internal planning targets and regulatory capital standards administered by federal banking agencies. The Company and Bank review capital levels on a monthly basis. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Bank on January 1, 2015 with full compliance with all of the requirements being fully phased in on January 1, 2019. The capital conservation buffer was 2.50% at December 31, 2020 and December 31, 2019. The net unrealized gain or loss on AFS securities is not included in the computation of the regulatory capital. The Company and the Bank meet all capital adequacy requirements, to which they are subject, as of December 31, 2020 and 2019. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2020 and 2019, the most recent regulatory notifications categorized the Bank and the Company as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. The following is a summary of actual capital amounts and ratios as of December 31, 2020 and 2019, for the Company and the Bank compared to the requirements for minimum capital adequacy and classification as well capitalized. Actual and required capital amounts and ratios are presented below at year end (dollars in thousands): To be Well Capitalized For Capital Adequacy under Prompt Corrective Actual Purposes Action Regulations Amount Ratio Amount Ratio Amount Ratio At December 31, 2020 Total capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 410,959 12.7 % $ 257,941 ≥ 8.0 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 410,295 12.7 % $ 257,827 ≥ 8.0 % $ 322,284 ≥ 10.0% Tier 1 common equity (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 324,592 10.1 % $ 145,092 ≥ 4.5 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 374,712 11.6 % $ 145,028 ≥ 4.5 % $ 209,485 ≥ 6.5% Tier 1 capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 350,714 10.9 % $ 193,456 ≥ 6.0 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 374,712 11.6 % $ 193,370 ≥ 6.0 % $ 257,827 ≥ 8.0% Tier 1 capital (to average assets) Metropolitan Bank Holding Corp. $ 350,714 8.5 % $ 165,767 ≥ 4.0 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 374,712 9.0 % $ 165,704 ≥ 4.0 % $ 207,130 ≥ 5.0% At December 31, 2019 Total capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 350,403 12.5 % $ 223,973 ≥ 8.0 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 356,353 12.7 % $ 223,858 ≥ 8.0 % $ 279,823 ≥ 10.0% Tier 1 common equity (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 282,646 10.1 % $ 125,985 ≥ 4.5 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 329,905 11.8 % $ 125,920 ≥ 4.5 % $ 181,885 ≥ 6.5% Tier 1 capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 308,769 11.0 % $ 167,980 ≥ 6.0 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 329,905 11.8 % $ 167,894 ≥ 6.0 % $ 223,858 ≥ 8.0% Tier 1 capital (to average assets) Metropolitan Bank Holding Corp. $ 308,769 9.4 % $ 131,087 ≥ 4.0 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 329,905 10.1 % $ 131,000 ≥ 4.0 % $ 163,750 ≥ 5.0% As a result of the recently enacted Economic Growth Act (the “Act”), banking regulatory agencies adopted a revised definition of “well capitalized” for financial institutions and holding companies with assets of less than $10 billion and that are not determined to be ineligible by their primary federal regulator due to their risk profile (a “Qualifying Community Bank”). The new definition expanded the ways that a Qualifying Community Bank may meet its capital requirements and be deemed “well capitalized.” The new rule establishes a community bank leverage ratio (“CBLR”) equal to the tangible equity capital divided by the average total consolidated assets. Regulators have established the CBLR to be set at 8.5% through calendar year 2021 and 9% thereafter. The CARES Act temporarily reduced the CBLR to 8%. A Qualifying Community Bank that maintains a leverage ratio greater than 9% is considered to be well capitalized and to have met generally applicable leverage capital requirements, generally applicable risk-based capital requirements, and any other capital or leverage requirements to which such financial institution or holding company is subject. The Bank intends to continue to measure capital adequacy using the ratios in the table above. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER COMMON SHARE | |
EARNINGS PER COMMON SHARE | NOTE 18 — EARNINGS PER COMMON SHARE The Company uses the two-class method in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share calculation are as follows (in thousands, except per share data). Year Ended December 31, 2020 2019 Basic Net income per consolidated statements of income $ 39,466 $ 30,134 Less: Earnings allocated to participating securities (344) (448) Net income available to common stockholders $ 39,122 $ 29,686 Weighted average common shares outstanding including participating securities 8,293,677 8,297,478 Less: Weighted average participating securities (72,248) (123,336) Weighted average common shares outstanding 8,221,429 8,174,142 Basic earnings per common share 4.76 3.63 Diluted Net income allocated to common stockholders $ 39,122 $ 29,686 Weighted average common shares outstanding for basic earnings per common share 8,221,429 8,174,142 Add: Dilutive effects of assumed exercise of stock options 103,463 125,085 Add: Dilutive effects of assumed vesting of performance based restricted stock 73,552 39,914 Add: Dilutive effects of assumed vesting of restricted stock units - Average shares and dilutive potential common shares 8,398,444 8,339,141 Dilutive earnings per common share $ 4.66 $ 3.56 At December 31, 2020, there were 33,615 restricted stock units that were anti-dilutive and, thus, not considered in computing diluted earnings per share. The Company did not have any restricted stock units in 2019. There were no stock options that were anti-dilutive and, thus, not considered in computing diluted earnings per common share for 2020 and 2019. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
PARENT COMPANY FINANCIAL INFORMATION | |
PARENT COMPANY FINANCIAL INFORMATION | NOTE 19 — PARENT COMPANY FINANCIAL INFORMATION Condensed financial information for the Company (parent company only) is as follows (in thousands): Condensed Statements of Financial Condition At December 31, 2020 2019 Assets Cash and due from banks $ 15 $ 1,836 Loans, net of allowance for loan losses 776 776 Investments 620 620 Investment in subsidiary bank, at equity 385,510 340,733 Other assets 22 1,106 Total assets $ 386,943 $ 345,071 Liabilities and Stockholders’ Equity Trust preferred securities payable 20,620 20,620 Subordinated debt payable, net of issuance costs 24,657 24,601 Other liabilities 879 726 Total liabilities 46,156 45,947 Stockholders’ equity: Preferred stock 3 3 Common stock 82 82 Surplus 218,899 216,468 Retained earnings 120,830 81,364 Accumulated other comprehensive loss, net of tax 973 1,207 Total equity 340,787 299,124 Total liabilities and stockholders’ equity $ 386,943 $ 345,071 Condensed Statements of Operation Year Ended December 31, 2020 2019 Income: Loans $ 17 $ 17 Securities and money market funds 18 27 Total interest income 35 44 Interest expense: Trust preferred securities payable 590 908 Subordinated debt interest expense 1,618 1,618 Total interest expense 2,208 2,526 Net interest expense (2,173) (2,482) Provision for loan losses — — Net interest income after provision for loan losses (2,173) (2,482) Other expense 2,338 3,865 Loss before undistributed earnings of subsidiary bank (4,511) (6,347) Equity in undistributed earnings of subsidiary bank 42,844 35,209 Income before income tax expense 38,333 28,862 Income tax benefit 1,133 1,272 Net income $ 39,466 $ 30,134 Comprehensive income $ 39,232 $ 31,746 Condensed Statement of Cash Flows Year Ended December 31, 2020 2019 Cash Flows From Operating Activities: Net income $ 39,466 $ 30,134 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Undistributed earnings of subsidiary bank (42,844) (35,209) Non-employee stock based compensation 410 400 Amortization of trust preferred issuance costs 56 56 Stock based compensation expense 2,902 2,667 Decrease (increase) in other assets (1,084) 274 Increase (decrease) in other liabilities 154 56 Net cash used in operating activities (940) (1,622) Cash Flows From Investing Activities: Net cash used in Investing activities — — Cash Flows From Financing Activities: Redemption of common stock for tax withholdings for restricted stock vesting (881) (89) Net cash provided by financing activities (881) (89) Net (decrease) increase in cash and cash equivalents (1,821) (1,711) Cash and cash equivalents, beginning of year 1,836 3,547 Cash and cash equivalents, end of year $ 15 $ 1,836 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 20 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in Accumulated Other Comprehensive Income (Loss) balances, net of tax effects at the dates indicated (in thousands): Year Ended December 31, 2020 2019 Beginning balance $ 1,207 $ (473) Cumulative effect of adopting new accounting standard ASU 2016-01, net of taxes — 68 Beginning balance, as adjusted 1,207 (405) Other comprehensive income, net of tax: Unrealized gain on securities available for sale Unrealized holding gain (loss) arising during the period $ 4,877 $ 2,358 Reclassification adjustment for gain included in net income (3,286) — Tax effect (514) (746) Net of tax 1,077 1,612 Unrealized loss on cash flow hedges Unrealized holding loss arising during the period $ (1,925) $ — Tax effect 614 — Net of tax $ (1,311) $ — Net current period other comprehensive income (loss) $ (234) $ 1,612 Ending balance $ 973 $ 1,207 The proceeds from sales and calls of securities during the years ended December 31, 2020 and December 31, 2019 were $141.4 million and $1.1 million, respectively. There was a gain of $3.3 million recognized on the sale of securities and there was no gain or loss associated with the call of securities in 2019. 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 year ended December 31, 2020 (in thousands): Affected line item in the Consolidated Year Ended December 31, 2020 Statements of Operations Realized gain on sale of available-for-sale securities $ 3,286 Gain on sale of securities Income tax benefit (1,036) Income tax expense Total reclassifications, net of income tax $ 2,250 |
UNAUDITED QUARTERLY FINANCIAL D
UNAUDITED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2020 | |
UNAUDITED QUARTERLY FINANCIAL DATA | |
UNAUDITED QUARTERLY FINANCIAL DATA | NOTE 21 — UNAUDITED QUARTERLY FINANCIAL DATA Selected Consolidated Quarterly Financial Data (dollars, except per share amounts, in thousands) 2020 Quarter Ended December 31 September 30 June 30 March 31 Interest income $ 36,862 $ 35,945 $ 34,223 $ 36,067 Interest expense 3,395 3,621 4,062 7,098 Net interest income 33,467 32,324 30,161 28,969 Provision for loan losses 1,795 1,137 1,766 4,790 Net interest income after provision for loan losses 31,672 31,187 28,395 24,179 Non-interest income 3,373 3,637 5,653 4,340 Non-interest expense 17,788 18,930 18,284 19,516 Income before income taxes 17,257 15,894 15,764 9,003 Income tax expense 5,482 5,111 4,953 2,906 Net income $ 11,775 $ 10,783 $ 10,811 $ 6,097 Basic earnings per common share $ 1.42 $ 1.30 $ 1.30 $ 0.73 Diluted earnings per common share $ 1.39 $ 1.27 $ 1.28 $ 0.72 2019 Quarter Ended December 31 September 30 June 30 March 31 Interest income $ 36,466 $ 35,496 $ 30,828 $ 26,990 Interest expense 8,424 9,443 7,891 6,412 Net interest income 28,042 26,053 22,937 20,578 Provision for loan losses 2,300 2,004 1,950 (2,031) Net interest income after provision for loan losses 25,742 24,049 20,987 22,609 Non-interest income 2,862 2,700 2,674 2,393 Non-interest expense 17,042 15,495 14,724 12,694 Income before income taxes 11,562 11,254 8,937 12,308 Income tax expense 3,699 3,571 2,880 3,777 Net income $ 7,863 $ 7,683 $ 6,057 $ 8,531 Basic earnings per common share $ 0.95 $ 0.92 $ 0.73 $ 1.03 Diluted earnings per common share $ 0.93 $ 0.90 $ 0.71 $ 1.01 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 22 – 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 year ended December 31, 2020 and 2019 (in thousands): Year Ended December 31, 2020 2019 Service charges on deposit accounts $ 3,728 $ 3,556 Global payments revenue 8,464 5,643 Other service charges and fees 1,477 1,366 Total $ 13,669 $ 10,565 A description of the Company’s revenue streams accounted for under the accounting guidance follows: Global payments revenue: Prior to the adoption of the ASU, at December 31, 2018, upfront fees were recognized under the percentage of completion method. Since the performance obligation of setting up the program to go live is satisfied at a point in time, the revenue is deemed to be recognized once the performance obligation has been completed and the program is live, thereby creating an asset available for the customer to use. The ASU provides the option to elect the modified retrospective method as a transition approach and the Bank has elected to use this method to comply with the new guidance under the ASU. Accordingly, the Company recorded an adjustment of $117,000 to the opening retained earnings for the year ended December 31, 2019 to reflect the change in accounting under the ASU. Service charges on deposit accounts: Other service charges: 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 | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVES | |
DERIVATIVES | NOTE 23 – 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 had a notional amount of $300.0 million as of December 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 year ended December 31, 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 December 31, 2020 (in thousands): At December 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 $ 1,311 $ N/A $ — The effect of cash flow hedge accounting on accumulated other comprehensive income at December 31, 2020 is as follows (in thousands): At December 31, 2020 Notional Amount Fair Value Derivatives designated as hedges: Interest rate caps related to customer deposits $ 300,000 $ 770 Total included in Other Assets $ 300,000 $ 770 |
SUMMARY OF RECENT ACCOUNTING _2
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
Use of Estimates | Use of Estimates |
Cash Flows | Cash Flows |
Securities | Securities On January 1, 2019, the Company adopted a new accounting standard for Financial Instruments (ASU 2016-01), which required equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Upon adoption, equity securities previously classified as AFS are presented separately on the balance sheet as equity securities. The amount of unrealized gain (loss), net of tax, related to these securities was reclassified from accumulated other comprehensive income to retained earnings as of January 1, 2019. Upon adoption, the amendments related to equity securities without readily determinable fair values (including disclosure requirements) were applied prospectively to equity investments that existed at January 1, 2019. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Gains and losses on sales of securities are recognized in the consolidated statements of operations upon sale. Management evaluates AFS and HTM securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the statement of operations and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. |
Accounts Receivable & Receivable from Prepaid Card Programs, Net | Accounts Receivable & Receivable from Global Payments Business, Net |
Revenue Recognition | Revenue Recognition |
Technology Costs | Technology Costs: Technology costs are primarily comprised of licensing fees on certain deposit accounts held by bankruptcy trustees and are expensed as incurred. These accounts require the use of a software interface provided by a third party. Licensing fees amounted to |
Transfers of Financial Assets | Transfers of Financial Assets transferred assets through an agreement to repurchase them before their maturity. Transfers of financial assets that do not meet the criteria to be accounted for as sales are recorded as secured borrowings. |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses The allowance for loan losses is maintained at an amount management deems adequate to cover probable incurred credit losses. In determining the level to be maintained, management evaluates many factors, including current economic trends, industry experience, historical loss experience, loan concentrations, the borrower’s ability to repay and repayment performance and estimated collateral values. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is considered to be impaired when it is probable that the Bank will be unable to collect all principal and interest amounts according to the contractual terms of the loan agreement. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. All commercial and commercial real estate loans are individually evaluated for credit risk at least annually, and all classified loans are individually evaluated for impairment quarterly. Large groups of smaller balance homogenous loans such as residential real estate loans are collectively evaluated for impairment, and accordingly, are not separately evaluated for impairment disclosures unless an individual loan is classified. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. When a loan is modified and concessions have been made to the original contractual terms, such as reductions in interest rate or deferral of interest or principal payments, due to the borrower’s financial condition, the modification is known as a troubled debt restructuring (“TDR”). TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Bank determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component of the allowance covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Bank over a rolling two-year period. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: (1) changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; (2) changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; (3) changes in the trends in the type and volume and in terms of loans; (4) changes in the experience, ability, and depth of lending management and other relevant staff; (5) changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans; (6) changes in the quality of the Bank’s loan review system; (7) changes in the value of underlying collateral for collateral-dependent loans; (8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and (9) the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. The following portfolio segments have been identified: Construction loans, Commercial Real Estate loans, Multi-Family loans, One-to-Four Family loans, Commercial & Industrial loans and Consumer loans. The risk characteristics of each of the identified portfolio segments are as follows: Construction — If the estimate of value proves to be inaccurate, the value of the building may be insufficient to assure full repayment if liquidation is required. If foreclosure is required on a building before or at completion due to a default, there can be no assurance that all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs will be recovered. Commercial Real Estate — Multi-family — One-to-Four Family — Commercial & Industrial — Consumer — While management uses available information to recognize losses on loans, future additions to the allowance may be necessary, based on changes in economic conditions or any other factors used in management’s determination. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Interest income on loans is accrued and credited to operations based upon the principal amounts outstanding. Loans are placed on non-accrual when a loan is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more. Delinquent status is based on the contractual terms of the loan. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on such loans are applied as a reduction of the loan principal balance when the collectability of principal, wholly or partially, is in doubt. Interest payments received may be deferred on non-accrual loans in which the principal balance is deemed to be collectible. Interest income is recognized when all the principal and interest amounts contractually due are brought current and the loans are returned to accrual status. |
Goodwill | Goodwill The goodwill of $9.7 million is associated with a purchase of the prepaid third-party debit card business. The Company performed an impairment assessment and determined that no impairment of goodwill existed as of December 31, 2020 or 2019. |
Stock-Based Compensation | Stock-Based Compensation The Company also awards performance-based restricted stock units (“PRSUs”) to employees. The PRSUs are classified as either equity or liability, depending on certain criteria provided in ASC 718, Stock Based Compensation. This classification affects whether the measurement of fair value is fixed (i.e., measured only once) on the grant date or whether fair value will be remeasured each reporting period until settled. On the grant date, the estimate of equity-classified awards’ fair value would be fixed, the cumulative amount of previously recognized compensation cost would be adjusted, and the Company would no longer have to remeasure the award. If the award is liability-classified, the awards would continue to be marked to fair value each reporting period until settlement. The Company recognizes compensation cost for awards with performance conditions if and when it concludes that it is probable that the performance conditions will be achieved. The Company assesses the probability of vesting (i.e. that the performance conditions will be met) at each reporting period and, if required, adjusts compensation cost based on its probability assessment. |
Concentrations of Credit Risk | Concentrations of Credit Risk |
Premises and Equipment | Premises and Equipment three |
Other Investments | Other Investments 2020. $5.0 million of an SBA Loan Fund was called in the second quarter of 2020. As of December 31, 2019, the Company held FRB and FHLB stock of $7.3 million and $8.1 million, respectively, and an SBA Loan Fund investment of $5.0 million. |
Derivatives | Derivatives: 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 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. |
Comprehensive Income | Comprehensive Income |
Restrictions on Cash | Restrictions on Cash |
Earnings per Common Share | Earnings per Common Share |
Income Taxes | Income Taxes A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Loss Contingencies | Loss Contingencies |
Reclassifications | Reclassifications |
Operating segments | Operating segments |
Recently Issued Accounting Standards | Recently Issued Accounting Standards |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 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 December 31, 2020 Cost Gains Losses Fair Value Debt securities available for sale Residential mortgage securities $ 192,163 $ 2,599 $ (74) $ 194,688 Commercial mortgage securities 32,589 997 (94) 33,492 U.S. Government agency securities 37,997 — (81) 37,916 Total securities available for sale $ 262,749 $ 3,596 $ (249) $ 266,096 Held-to-Maturity Securities: Residential mortgage securities 2,760 67 — 2,827 Total securities held to maturity $ 2,760 $ 67 $ — $ 2,827 Equity investments: CRA Mutual Fund 2,299 14 — 2,313 Total equity investment securities $ 2,299 $ 14 $ — $ 2,313 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 equity investment securities $ 2,258 $ — $ (34) $ 2,224 |
Schedule of Realized Gain (Loss) on Sales and Calls of Securities | Year Ended December 31, 2020 2019 Proceeds 141,422 $ 1,065 Gross gains 3,286 $ — Tax impact (1,036) $ — |
Schedule of amortized cost and fair value of debt securities classified by contractual maturity | Held-to-Maturity Available-for-Sale At December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ — $ — $ — $ — One to five years — — 37,997 37,916 Five to ten years — — — — Due after ten years — — — — Total $ — $ — $ 37,997 $ 37,916 Residential mortgage securities $ 2,760 2,827 192,163 194,688 Commercial mortgage securities — — 32,589 33,492 Total Securities $ 2,760 $ 2,827 $ 262,749 $ 266,096 Held-to-Maturity Available-for-Sale At December 31, 2019 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 December 31, 2020 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available for sale Residential mortgage securities $ 33,734 $ (74) $ — $ — $ 33,734 $ (74) Commercial mortgage securities 12,314 (93) 385 (1) 12,699 (94) U.S. Government agency securities 37,916 (81) — — 37,916 (81) Total securities available for sale $ 83,964 $ (248) $ 385 $ (1) $ 84,349 $ (249) 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 (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LOANS | |
Schedule of Net loans | Net loans consist of the following as of December 31, 2020 and 2019 (in thousands): December 31, 2020 December 31, 2019 Real estate Commercial $ 1,887,505 $ 1,668,236 Construction 112,290 30,827 Multi-family 433,239 375,611 One-to-four family 71,354 82,670 Total real estate loans 2,504,388 2,157,344 Commercial and industrial 591,500 448,619 Consumer 46,431 71,956 Total loans 3,142,319 2,677,919 Deferred fees (5,266) (4,970) Loans, net of deferred fees and unamortized costs 3,137,053 2,672,949 Allowance for loan losses (35,407) (26,272) Balance at the end of the period $ 3,101,646 $ 2,646,677 |
Schedule of changes in the allowance for loan losses by portfolio segment | The following tables represent the changes in the allowance for loan losses for the years ended December 31, 2020 and 2019, by portfolio segment. The portfolio segments represent the categories that the Bank uses to determine its allowance for loan losses (in thousands): Commercial Commercial One-to-four Year ended December 31, 2020 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for loan losses: Beginning balance $ 15,317 $ 7,070 $ 411 $ 2,453 $ 267 $ 754 $ 26,272 Provision (credit) for loan losses 1,926 5,165 1,182 208 (61) 1,068 9,488 Loans charged-off — (254) — — — (251) (505) Recoveries — 142 — — — 10 152 Total ending allowance balance $ 17,243 $ 12,123 $ 1,593 $ 2,661 $ 206 $ 1,581 $ 35,407 Commercial Commercial One-to-four Year ended December 31, 2019 Real Estate & Industrial Construction Multi-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 6,280 (2,678) (214) 406 39 390 4,223 Loans charged-off — (798) — — — (389) (1,187) Recoveries — 4,289 — — — 5 4,294 Total ending allowance balance $ 15,317 $ 7,070 $ 411 $ 2,453 $ 267 $ 754 $ 26,272 |
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment | The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method as of December 31, 2020 and 2019 (in thousands): Commercial Commercial One-to-four At December 31, 2020 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ 3,662 $ — $ — $ 53 $ 1,203 $ 4,918 Collectively evaluated for impairment 17,243 8,461 1,593 2,661 153 378 30,489 Total ending allowance balance $ 17,243 $ 12,123 $ 1,593 $ 2,661 $ 206 $ 1,581 $ 35,407 Loans: Individually evaluated for impairment $ 10,345 $ 4,192 $ — $ — $ 999 $ 2,197 $ 17,733 Collectively evaluated for impairment 1,877,160 587,308 112,290 433,239 70,355 44,234 3,124,586 Total ending loan balance $ 1,887,505 $ 591,500 $ 112,290 $ 433,239 $ 71,354 $ 46,431 $ 3,142,319 Commercial Commercial One-to-four At December 31, 2019 Real Estate & Industrial Construction Multi-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 | The following tables present information related to loans determined to be impaired by class of loans as of and for the years ended December 31, 2020 and 2019 (in thousands): Unpaid Principal Allowance for Loan Average Recorded Interest Income At December 31, 2020 Balance Recorded Investment Losses Allocated Investment Recognized With an allowance recorded: One-to-four family $ 610 $ 480 $ 53 $ 491 $ 19 Consumer 2,197 2,197 1,203 1,503 88 Commercial and industrial 4,192 4,192 3,662 3,456 — Total $ 6,999 $ 6,869 $ 4,918 $ 5,450 $ 107 Without an allowance recorded: One-to-four family 666 $ 519 $ — $ 996 $ 20 Commercial real estate 10,345 10,345 — 2,360 38 Commercial and industrial — — — 951 — Total $ 11,011 $ 10,864 $ — $ 4,307 $ 58 Unpaid Principal Allowance for Loan Average Recorded Interest Income At December 31, 2019 Balance Recorded Investment Losses Allocated Investment Recognized With an allowance recorded: One-to-four family $ 633 $ 503 $ 64 $ 411 $ 19 Consumer 731 728 311 311 13 Commercial and industrial 1,047 1,047 805 419 — Total $ 2,411 $ 2,278 $ 1,180 $ 1,141 $ 32 Without an allowance recorded: One-to-four family 3,028 $ 2,881 $ — $ 2,063 $ 124 Commercial real estate 367 367 — 375 15 Total $ 3,395 $ 3,248 $ — $ 2,438 $ 139 |
Schedule of recorded investment in non-accrual loans, loans past due over 90 days and still accruing by class of loans | The following tables present the recorded investment in non-accrual loans, loans past due over 90 days and still accruing by class of loans as of December 31, 2020 and 2019 (in thousands): At December 31, 2020 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ 4,192 $ — One-to-four family — — Consumer 1,428 769 Total $ 5,620 $ 769 At December 31, 2019 Nonaccrual 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 | The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 2020 and 2019 (in thousands): Greater 30-59 60-89 than 90 Total past Current At December 31, 2020 Days Days days due loans Total Commercial real estate $ 40 $ 9,984 $ — $ 10,024 $ 1,877,481 $ 1,887,505 Commercial & industrial 4,429 6,400 4,192 15,021 576,479 591,500 Construction — — — — 112,290 112,290 Multi-family — — — — 433,239 433,239 One-to-four family 2,908 — — 2,908 68,446 71,354 Consumer 112 32 2,197 2,341 44,090 46,431 Total $ 7,489 $ 16,416 $ 6,389 $ 30,294 $ 3,112,025 $ 3,142,319 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 Multi-family — — — — 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 December 31, 2020 and 2019 (in thousands): At December 31, 2020 Troubled Debt Restructuring Commercial real estate $ 361 One-to-four family 999 Total $ 1,360 At December 31, 2019 Troubled Debt Restructuring Commercial real estate $ 367 One-to-four family 1,039 Consumer 35 Total $ 1,441 |
Schedule of risk category of loans by class of loans | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Special At December 31, 2020 Pass Mention Substandard Doubtful Total Commercial real estate $ 1,877,160 $ 361 $ 9,984 $ — $ 1,887,505 Commercial & industrial 583,809 3,499 — 4,192 591,500 Construction 112,290 — — — 112,290 Multi-family 433,239 — — — 433,239 Total $ 3,006,498 $ 3,860 $ 9,984 $ 4,192 $ 3,024,534 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 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PREMISES AND EQUIPMENT | |
Schedule of premises and equipment | Premises and equipment are summarized as follows as of December 31, 2020 and 2019 (in thousands): Year Ended December 31, 2020 2019 Furniture and Equipment (useful life of 3 $ 12,343 $ 9,961 Furniture and Equipment in Process — 2,175 Leasehold Improvements (useful life of 3 15,687 11,092 Leasehold Improvements in Process — 3,768 Total Premises and Equipment 28,030 26,996 Less accumulated depreciation and amortization (14,555) (14,896) Total Premises and Equipment, net $ 13,475 $ 12,100 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DEPOSITS | |
Schedule of deposits | Deposits consisted of the following as of December 31, 2020 and 2019 (in thousands): At December 31, 2020 2019 Noninterest bearing demand accounts $ 1,715,042 $ 1,090,479 Money market 1,993,514 1,573,716 Savings accounts 17,895 16,204 Time Deposits: Time deposits under $100,000 4,172 5,483 Time deposits $100,000 and over 87,890 104,892 Total deposits $ 3,818,513 $ 2,790,774 |
Schedule of time deposits maturities | The following are scheduled maturities of time deposits as of December 31, 2020 (in thousands): At December 31, 2020 2021 $ 51,321 2022 26,466 2023 7,270 2024 3,175 2025 3,830 Total time deposits $ 92,062 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of components of income taxes | Income tax expense consisted of the following for the years ended December 31, 2020 and 2019 (in thousands): Year Ended December 31, (in thousands) 2020 2019 Current Federal $ 10,936 $ 9,222 State and local 7,226 6,570 Total current 18,162 15,792 Deferred Federal 139 (845) State and local 151 (1,020) Total deferred 290 (1,865) Total income tax expense $ 18,452 $ 13,927 |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities consist of the following (in thousands): At December 31, 2020 2019 Deferred tax assets: Allowance for loan losses $ 11,145 $ 8,303 Interest on nonaccrual loans — 24 Off balance sheet reserves 57 57 Restricted stock 90 188 Tangible asset 14 17 Non-qualified stock options 292 294 Net unrealized loss on interest rate cap 564 — Other — 51 Total gross deferred tax assets 12,162 8,934 Deferred tax liabilities: Depreciation and amortization 3,731 781 Net unrealized gain on securities available for sale 1,067 604 Pass-through income 59 69 Prepaid assets 355 341 Total gross deferred tax liabilities 5,212 1,795 Net deferred tax asset, included in other assets $ 6,950 $ 7,139 |
Schedule of reconciliation of statutory federal income tax rate | The following is a reconciliation of the Company’s statutory federal income tax rate of 21% to its effective tax rate for the years ended December 31, 2020 and 2019 (in thousands): For the year ended December 31, 2020 2019 Tax expense/ Tax expense/ (benefit) Rate (benefit) Rate Pretax income at statutory rates $ 12,163 21.00 % $ 9,253 21.00 % State and local taxes, net of federal income tax benefit 5,828 10.06 4,385 9.95 Nondeductible expenses 457 0.79 430 0.97 Excess tax deduction on equity awards (59) (0.10) (132) (0.30) Tax-exempt income, net — — (2) (0.00) Other 63 0.11 (7) (0.01) Effective income tax expense/rate $ 18,452 31.86 % $ 13,927 31.61 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of approximate future minimum rental payments required under all non-cancellable operating leases | Year Ending December 31, 2021 $ 3,947 2022 3,877 2023 3,548 2024 3,506 2025 3,285 Thereafter (and through 2035) 23,417 $ 41,580 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of Assets and Liabilities measured at fair value on a recurring basis | Assets and liabilities 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 December 31, 2020 Residential mortgage securities $ 194,688 $ — $ 194,688 $ — Commercial mortgage securities 33,492 — 33,492 — U.S. Government agency securities 37,916 — 37,916 — CRA Mutual Fund 2,313 2,313 — — Derivative assets - interest rate cap 770 — 770 — 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 December 31, 2020 and 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 December 31, 2020 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Assets: Cash and due from banks $ 8,692 $ 8,692 $ — $ — $ 8,692 Overnight deposits 855,613 855,613 — — 855,613 Securities available for sale 266,096 — 266,096 — 266,096 Securities held to maturity 2,760 — 2,827 — 2,827 Equity investments 2,313 2,313 — — 2,313 Loans, net 3,101,646 — — 3,094,998 3,094,998 Other investments FRB Stock 7,381 N/A N/A N/A N/A FHLB Stock 2,718 N/A N/A N/A N/A SBA Loan Fund — N/A N/A N/A N/A Disability Fund 1,000 — 1,000 — 1,000 CRA - CD 498 498 — — 498 Derivative assets - interest rate cap 770 — 770 — 770 Accrued interest receivable 13,249 — 414 12,835 13,249 Financial liabilities: Non-interest-bearing demand deposits $ 1,715,042 $ 1,715,042 $ — $ — $ 1,715,042 Money market and savings deposits 2,011,409 2,011,409 — — 2,011,409 Time deposits 92,062 — 93,157 — 93,157 Federal Home Loan Bank of New York advances — — — — — Trust preferred securities payable 20,620 — — 20,001 20,001 Subordinated debt, net of issuance cost 24,657 — 25,375 — 25,375 Accrued interest payable 712 7 591 114 712 Secured borrowings 36,964 — 36,964 — 36,964 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 Assets: Cash and due from banks $ 8,116 $ 8,116 $ — $ — $ 8,116 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 CRA - CD 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 Secured borrowings 42,972 — 42,972 — 42,972 |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
STOCK COMPENSATION PLAN | |
Schedule of status of the stock option plan | 2020 Weighted Average Number of Exercise Options Price Outstanding, beginning of year 231,000 $ 18.00 Granted — — Exercised — — Cancelled/forfeited — — Outstanding, end of year 231,000 $ 18.00 Options vested and exercisable at year-end 231,000 $ 18.00 Aggregate intrinsic value of options outstanding at December 31, 2020 $ 4,220,370 Weighted average remaining contractual life (years) 3.38 |
Schedule of summary of stock options outstanding | Options Outstanding Range of Average Number Outstanding at Weighted Average Weighted Average Weighted average Exercise Prices December 31, 2020 Remaining Contractual Life Exercise Price intrinsic value $10 – 20 231,000 3.38 $ 18.00 $ 18.27 $21 – 30 — — $ — $ — $10 – 30 231,000 3.38 $ 18.00 $ 18.27 |
Schedule of changes in the non-vested restricted stock awards | Year Ended December 31, 2020 Year Ended December 31, 2019 Weighted Average Weighted Average Number of Shares Grant Date Fair Value Number of Shares Grant Date Fair Value Outstanding, beginning of period 104,838 $ 29.86 53,957 $ 21.46 Granted 62,092 44.80 106,423 35.36 Forfeited (31,781) 38.24 (1,561) 32.71 Vested (58,860) 31.83 (53,981) 32.22 Outstanding at end of period 76,289 $ 37.01 104,838 $ 29.86 |
Summary of changes in the non-vested Performance Restricted Share Units awards | The following table summarizes the changes in the Company’s non-vested PRSU awards for year ended December 31, 2020: For the year ended December 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 $ 1,430,011 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |
Schedule of off-balance-sheet financial instruments | At December 31, 2020 At December 31, 2019 Variable Variable Fixed Rate Rate Fixed Rate Rate Undrawn lines of credit $ 19,024 $ 266,696 $ 17,204 $ 193,767 Letters of credit 34,264 — 47,743 — $ 53,288 $ 266,696 $ 64,947 $ 193,767 |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REGULATORY CAPITAL | |
Schedule of requirements for minimum capital adequacy and classification | To be Well Capitalized For Capital Adequacy under Prompt Corrective Actual Purposes Action Regulations Amount Ratio Amount Ratio Amount Ratio At December 31, 2020 Total capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 410,959 12.7 % $ 257,941 ≥ 8.0 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 410,295 12.7 % $ 257,827 ≥ 8.0 % $ 322,284 ≥ 10.0% Tier 1 common equity (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 324,592 10.1 % $ 145,092 ≥ 4.5 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 374,712 11.6 % $ 145,028 ≥ 4.5 % $ 209,485 ≥ 6.5% Tier 1 capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 350,714 10.9 % $ 193,456 ≥ 6.0 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 374,712 11.6 % $ 193,370 ≥ 6.0 % $ 257,827 ≥ 8.0% Tier 1 capital (to average assets) Metropolitan Bank Holding Corp. $ 350,714 8.5 % $ 165,767 ≥ 4.0 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 374,712 9.0 % $ 165,704 ≥ 4.0 % $ 207,130 ≥ 5.0% At December 31, 2019 Total capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 350,403 12.5 % $ 223,973 ≥ 8.0 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 356,353 12.7 % $ 223,858 ≥ 8.0 % $ 279,823 ≥ 10.0% Tier 1 common equity (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 282,646 10.1 % $ 125,985 ≥ 4.5 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 329,905 11.8 % $ 125,920 ≥ 4.5 % $ 181,885 ≥ 6.5% Tier 1 capital (to risk-weighted assets) Metropolitan Bank Holding Corp. $ 308,769 11.0 % $ 167,980 ≥ 6.0 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 329,905 11.8 % $ 167,894 ≥ 6.0 % $ 223,858 ≥ 8.0% Tier 1 capital (to average assets) Metropolitan Bank Holding Corp. $ 308,769 9.4 % $ 131,087 ≥ 4.0 % $ N/A ≥ N/A Metropolitan Commercial Bank $ 329,905 10.1 % $ 131,000 ≥ 4.0 % $ 163,750 ≥ 5.0% |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER COMMON SHARE | |
Schedule of earnings per common share | Year Ended December 31, 2020 2019 Basic Net income per consolidated statements of income $ 39,466 $ 30,134 Less: Earnings allocated to participating securities (344) (448) Net income available to common stockholders $ 39,122 $ 29,686 Weighted average common shares outstanding including participating securities 8,293,677 8,297,478 Less: Weighted average participating securities (72,248) (123,336) Weighted average common shares outstanding 8,221,429 8,174,142 Basic earnings per common share 4.76 3.63 Diluted Net income allocated to common stockholders $ 39,122 $ 29,686 Weighted average common shares outstanding for basic earnings per common share 8,221,429 8,174,142 Add: Dilutive effects of assumed exercise of stock options 103,463 125,085 Add: Dilutive effects of assumed vesting of performance based restricted stock 73,552 39,914 Add: Dilutive effects of assumed vesting of restricted stock units - Average shares and dilutive potential common shares 8,398,444 8,339,141 Dilutive earnings per common share $ 4.66 $ 3.56 |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PARENT COMPANY FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | Condensed Statements of Financial Condition At December 31, 2020 2019 Assets Cash and due from banks $ 15 $ 1,836 Loans, net of allowance for loan losses 776 776 Investments 620 620 Investment in subsidiary bank, at equity 385,510 340,733 Other assets 22 1,106 Total assets $ 386,943 $ 345,071 Liabilities and Stockholders’ Equity Trust preferred securities payable 20,620 20,620 Subordinated debt payable, net of issuance costs 24,657 24,601 Other liabilities 879 726 Total liabilities 46,156 45,947 Stockholders’ equity: Preferred stock 3 3 Common stock 82 82 Surplus 218,899 216,468 Retained earnings 120,830 81,364 Accumulated other comprehensive loss, net of tax 973 1,207 Total equity 340,787 299,124 Total liabilities and stockholders’ equity $ 386,943 $ 345,071 |
Schedule of condensed statements of income | Condensed Statements of Operation Year Ended December 31, 2020 2019 Income: Loans $ 17 $ 17 Securities and money market funds 18 27 Total interest income 35 44 Interest expense: Trust preferred securities payable 590 908 Subordinated debt interest expense 1,618 1,618 Total interest expense 2,208 2,526 Net interest expense (2,173) (2,482) Provision for loan losses — — Net interest income after provision for loan losses (2,173) (2,482) Other expense 2,338 3,865 Loss before undistributed earnings of subsidiary bank (4,511) (6,347) Equity in undistributed earnings of subsidiary bank 42,844 35,209 Income before income tax expense 38,333 28,862 Income tax benefit 1,133 1,272 Net income $ 39,466 $ 30,134 Comprehensive income $ 39,232 $ 31,746 |
Schedule of condensed statement of cash flows | Condensed Statement of Cash Flows Year Ended December 31, 2020 2019 Cash Flows From Operating Activities: Net income $ 39,466 $ 30,134 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Undistributed earnings of subsidiary bank (42,844) (35,209) Non-employee stock based compensation 410 400 Amortization of trust preferred issuance costs 56 56 Stock based compensation expense 2,902 2,667 Decrease (increase) in other assets (1,084) 274 Increase (decrease) in other liabilities 154 56 Net cash used in operating activities (940) (1,622) Cash Flows From Investing Activities: Net cash used in Investing activities — — Cash Flows From Financing Activities: Redemption of common stock for tax withholdings for restricted stock vesting (881) (89) Net cash provided by financing activities (881) (89) Net (decrease) increase in cash and cash equivalents (1,821) (1,711) Cash and cash equivalents, beginning of year 1,836 3,547 Cash and cash equivalents, end of year $ 15 $ 1,836 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Summary of changes in Accumulated Other Comprehensive Income (Loss) balances, net of tax effects | The following table summarizes the changes in Accumulated Other Comprehensive Income (Loss) balances, net of tax effects at the dates indicated (in thousands): Year Ended December 31, 2020 2019 Beginning balance $ 1,207 $ (473) Cumulative effect of adopting new accounting standard ASU 2016-01, net of taxes — 68 Beginning balance, as adjusted 1,207 (405) Other comprehensive income, net of tax: Unrealized gain on securities available for sale Unrealized holding gain (loss) arising during the period $ 4,877 $ 2,358 Reclassification adjustment for gain included in net income (3,286) — Tax effect (514) (746) Net of tax 1,077 1,612 Unrealized loss on cash flow hedges Unrealized holding loss arising during the period $ (1,925) $ — Tax effect 614 — Net of tax $ (1,311) $ — Net current period other comprehensive income (loss) $ (234) $ 1,612 Ending balance $ 973 $ 1,207 |
Schedule of reclassifications out of accumulated other comprehensive income (loss) | Affected line item in the Consolidated Year Ended December 31, 2020 Statements of Operations Realized gain on sale of available-for-sale securities $ 3,286 Gain on sale of securities Income tax benefit (1,036) Income tax expense Total reclassifications, net of income tax $ 2,250 |
UNAUDITED QUARTERLY FINANCIAL_2
UNAUDITED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
UNAUDITED QUARTERLY FINANCIAL DATA | |
Schedule of consolidated quarterly financial data | Selected Consolidated Quarterly Financial Data (dollars, except per share amounts, in thousands) 2020 Quarter Ended December 31 September 30 June 30 March 31 Interest income $ 36,862 $ 35,945 $ 34,223 $ 36,067 Interest expense 3,395 3,621 4,062 7,098 Net interest income 33,467 32,324 30,161 28,969 Provision for loan losses 1,795 1,137 1,766 4,790 Net interest income after provision for loan losses 31,672 31,187 28,395 24,179 Non-interest income 3,373 3,637 5,653 4,340 Non-interest expense 17,788 18,930 18,284 19,516 Income before income taxes 17,257 15,894 15,764 9,003 Income tax expense 5,482 5,111 4,953 2,906 Net income $ 11,775 $ 10,783 $ 10,811 $ 6,097 Basic earnings per common share $ 1.42 $ 1.30 $ 1.30 $ 0.73 Diluted earnings per common share $ 1.39 $ 1.27 $ 1.28 $ 0.72 2019 Quarter Ended December 31 September 30 June 30 March 31 Interest income $ 36,466 $ 35,496 $ 30,828 $ 26,990 Interest expense 8,424 9,443 7,891 6,412 Net interest income 28,042 26,053 22,937 20,578 Provision for loan losses 2,300 2,004 1,950 (2,031) Net interest income after provision for loan losses 25,742 24,049 20,987 22,609 Non-interest income 2,862 2,700 2,674 2,393 Non-interest expense 17,042 15,495 14,724 12,694 Income before income taxes 11,562 11,254 8,937 12,308 Income tax expense 3,699 3,571 2,880 3,777 Net income $ 7,863 $ 7,683 $ 6,057 $ 8,531 Basic earnings per common share $ 0.95 $ 0.92 $ 0.73 $ 1.03 Diluted earnings per common share $ 0.93 $ 0.90 $ 0.71 $ 1.01 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of Company's sources of non-interest income | Year Ended December 31, 2020 2019 Service charges on deposit accounts $ 3,728 $ 3,556 Global payments revenue 8,464 5,643 Other service charges and fees 1,477 1,366 Total $ 13,669 $ 10,565 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVES | |
Schedule of derivative position gross on the balance sheet | The following table reflects the derivatives recorded on the balance sheet at December 31, 2020 (in thousands): At December 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 $ 1,311 $ N/A $ — |
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 December 31, 2020 is as follows (in thousands): At December 31, 2020 Notional Amount Fair Value Derivatives designated as hedges: Interest rate caps related to customer deposits $ 300,000 $ 770 Total included in Other Assets $ 300,000 $ 770 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | |
Goodwill | $ 9,733 | $ 9,733 | |
Impairment of goodwill | 0 | 0 | |
Investment in Disability Opportunity Fund | 1,000 | ||
Investment in FRB | 7,400 | 7,300 | |
Investment in FHLB | 2,700 | 8,100 | |
SBA Loan Fund | $ 5,000 | ||
Investment in SBA Loan fund | 5,000 | ||
Bankruptcy accounts subject to the licensing fees | 871,300 | 865,800 | |
Escrow deposit | $ 9,500 | 10,600 | |
Number of reportable operating segment | segment | 1 | ||
License | |||
Cost of goods and services sold | $ 9,700 | $ 8,500 | |
Maximum | |||
Premises and equipment useful life | 10 years | ||
Minimum | |||
Premises and equipment useful life | 3 years |
SUMMARY OF RECENT ACCOUNTING _3
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 31, 2019 |
Cumulative effect of adopting new accounting standard | $ 120,830,000 | $ 81,364,000 | |
ASU 2014-09 | Restatement Adjustment | |||
Cumulative effect of adopting new accounting standard | $ 117,000 | $ 117,000 | |
ASU 2016-01 and 2018-03 | Restatement Adjustment | |||
Cumulative effect of adopting new accounting standard | $ 68,000 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities available-for-sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available for sale, at fair value, substantially restricted | $ 266,096 | $ 234,942 |
Available-for-sale Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 262,749 | 233,186 |
Gross Unrealized/Unrecognized Gains | 3,596 | 1,891 |
Gross Unrealized/Unrecognized Losses | (249) | (135) |
Investment securities available for sale, at fair value, substantially restricted | 266,096 | 234,942 |
Available-for-sale Securities | Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 192,163 | 175,902 |
Gross Unrealized/Unrecognized Gains | 2,599 | 1,478 |
Gross Unrealized/Unrecognized Losses | (74) | (117) |
Investment securities available for sale, at fair value, substantially restricted | 194,688 | 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 | 32,589 | 32,284 |
Gross Unrealized/Unrecognized Gains | 997 | 206 |
Gross Unrealized/Unrecognized Losses | (94) | (18) |
Investment securities available for sale, at fair value, substantially restricted | 33,492 | 32,472 |
Available-for-sale Securities | U.S. Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 37,997 | 25,000 |
Gross Unrealized/Unrecognized Gains | 207 | |
Gross Unrealized/Unrecognized Losses | (81) | |
Investment securities available for sale, at fair value, substantially restricted | $ 37,916 | $ 25,207 |
INVESTMENT SECURITIES (Schedu_2
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities held-to-maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 2,760 | $ 3,722 |
Total Securities | 2,827 | 3,712 |
Held-to-maturity Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,760 | 3,722 |
Gross Unrealized/Unrecognized Gains | 67 | 9 |
Gross Unrealized/Unrecognized Losses | (19) | |
Total Securities | 2,827 | 3,712 |
Held-to-maturity Securities | Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,760 | 3,722 |
Gross Unrealized/Unrecognized Gains | 67 | 9 |
Gross Unrealized/Unrecognized Losses | (19) | |
Total Securities | $ 2,827 | $ 3,712 |
INVESTMENT SECURITIES (Schedu_3
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of marketable equity securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Fair Value CRA Mutual Fund | $ 2,313 | $ 2,224 |
Equity securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost - CRA Mutual Fund | 2,299 | 2,258 |
Gross Unrealized/Unrecognized Gains | 14 | |
Gross Unrealized/Unrecognized Losses | (34) | |
Fair Value CRA Mutual Fund | 2,313 | 2,224 |
Equity securities | CRA mutual fund | ||
Marketable Securities [Line Items] | ||
Amortized Cost - CRA Mutual Fund | 2,299 | 2,258 |
Gross Unrealized/Unrecognized Gains | 14 | |
Gross Unrealized/Unrecognized Losses | (34) | |
Fair Value CRA Mutual Fund | $ 2,313 | $ 2,224 |
INVESTMENT SECURITIES (Proceeds
INVESTMENT SECURITIES (Proceeds from sales and calls of securities and associated gains and losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
INVESTMENT SECURITIES | ||
Sale of available for sale securities, at amortized cost | $ 108,100 | |
Proceeds from sales of securities available for sale | 111,422 | |
Proceeds from calls of securities available for sale | 30,000 | $ 1,065 |
Proceeds | 141,422 | $ 1,065 |
Gross gains | 3,286 | |
Tax impact | (1,036) | |
Amortized cost of available for sale securities | $ 108,100 |
INVESTMENT SECURITIES (Schedu_4
INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Amortized Cost, Held to maturity | $ 2,760 | $ 3,722 |
Fair Value | ||
Fair Value, Held to maturity | 2,827 | 3,712 |
Amortized Cost | ||
One to five years | 37,997 | |
Five to ten years | 25,000 | |
Amortized Cost, total | 37,997 | 25,000 |
Amortized Cost, Available-for-sale Securities | 262,749 | 233,186 |
Fair Value | ||
One to five years | 37,916 | |
Five to ten years | 25,207 | |
Fair Value, total | 37,916 | 25,207 |
Fair Value, Available-for-sale Securities | 266,096 | 234,942 |
AFS securities pledged to secure customer deposit | 0 | 126,200 |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost, Held to maturity | 2,760 | 3,722 |
Fair Value | ||
Fair Value, Held to maturity | 2,827 | 3,712 |
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 192,163 | 175,902 |
Fair Value | ||
Fair Value, Available-for-sale Securities | 194,688 | 177,263 |
Commercial mortgage-backed securities issued by U.S. government sponsored entities | ||
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 32,589 | 32,284 |
Fair Value | ||
Fair Value, Available-for-sale Securities | $ 33,492 | $ 32,472 |
INVESTMENT SECURITIES (Schedu_5
INVESTMENT SECURITIES (Schedule of Securities with Unrealized Losses) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($)item | |
Marketable equity securities | ||
Number of securities of one issuer | item | 0 | 0 |
Impairment loss | $ 0 | $ 0 |
Equity securities | ||
Marketable equity 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 | 83,964 | 32,761 |
Less than 12 Months, Unrealized/Unrecognized Losses | (248) | (70) |
12 months or more, Estimated Fair Value | 385 | 6,728 |
12 months or more, Unrealized/Unrecognized Losses | (1) | (65) |
Total, Estimated Fair Value | 84,349 | 39,489 |
Total, Unrealized/Unrecognized Losses | (249) | (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 | 33,734 | 22,850 |
Less than 12 Months, Unrealized/Unrecognized Losses | (74) | (52) |
12 months or more, Estimated Fair Value | 6,728 | |
12 months or more, Unrealized/Unrecognized Losses | (65) | |
Total, Estimated Fair Value | 33,734 | 29,578 |
Total, Unrealized/Unrecognized Losses | (74) | (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 | 12,314 | 9,911 |
Less than 12 Months, Unrealized/Unrecognized Losses | (93) | (18) |
12 months or more, Estimated Fair Value | 385 | |
12 months or more, Unrealized/Unrecognized Losses | (1) | |
Total, Estimated Fair Value | 12,699 | 9,911 |
Total, Unrealized/Unrecognized Losses | (94) | (18) |
U.S. Government agency securities | Available-for-sale Securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 37,916 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (81) | |
Total, Estimated Fair Value | 37,916 | |
Total, Unrealized/Unrecognized Losses | $ (81) | |
CRA mutual fund | Equity securities | ||
Marketable equity 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 (Schedule of Loan Receiva
LOANS (Schedule of Loan Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 3,142,319 | $ 2,677,919 | |
Deferred fees | (5,266) | (4,970) | |
Loans, net of deferred fees and unamortized costs | 3,137,053 | 2,672,949 | |
Allowance for loan losses | (35,407) | (26,272) | $ (18,942) |
Net loans | 3,101,646 | 2,646,677 | |
Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 2,504,388 | 2,157,344 | |
Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 591,500 | 448,619 | |
Allowance for loan losses | (12,123) | (7,070) | (6,257) |
Commercial and industrial | Paycheck Protection Program loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Net loans | 3,800 | ||
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 46,431 | 71,956 | |
Allowance for loan losses | (1,581) | (754) | (748) |
Commercial | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 1,887,505 | 1,668,236 | |
Allowance for loan losses | (17,243) | (15,317) | (9,037) |
Construction | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 112,290 | 30,827 | |
Allowance for loan losses | (1,593) | (411) | (625) |
Multi-family | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 433,239 | 375,611 | |
Allowance for loan losses | (2,661) | (2,453) | (2,047) |
One to four family | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 71,354 | 82,670 | |
Allowance for loan losses | $ (206) | $ (267) | $ (228) |
LOANS (Schedule of Activity in
LOANS (Schedule of Activity in the Allowance for Loan Losses by Segment) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | $ 26,272,000 | $ 18,942,000 | $ 26,272,000 | $ 18,942,000 | ||||||
Provision for loan and lease losses | $ 1,795,000 | $ 1,137,000 | $ 1,766,000 | 4,790,000 | $ 2,300,000 | $ 2,004,000 | $ 1,950,000 | (2,031,000) | 9,488,000 | 4,223,000 |
Loans charged-off | (505,000) | (1,187,000) | ||||||||
Recoveries | 152,000 | 4,294,000 | ||||||||
Total ending allowance balance | 35,407,000 | 26,272,000 | 35,407,000 | 26,272,000 | ||||||
Net charge-offs (recoveries) | 353,000 | 3,100,000 | ||||||||
Recovered charged-off in taxi medallion loans | 4,300,000 | |||||||||
Real estate | Commercial | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | 15,317,000 | 9,037,000 | 15,317,000 | 9,037,000 | ||||||
Provision for loan and lease losses | 1,926,000 | 6,280,000 | ||||||||
Total ending allowance balance | 17,243,000 | 15,317,000 | 17,243,000 | 15,317,000 | ||||||
Real estate | Construction | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | 411,000 | 625,000 | 411,000 | 625,000 | ||||||
Provision for loan and lease losses | 1,182,000 | (214,000) | ||||||||
Total ending allowance balance | 1,593,000 | 411,000 | 1,593,000 | 411,000 | ||||||
Real estate | Multi-family | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | 2,453,000 | 2,047,000 | 2,453,000 | 2,047,000 | ||||||
Provision for loan and lease losses | 208,000 | 406,000 | ||||||||
Total ending allowance balance | 2,661,000 | 2,453,000 | 2,661,000 | 2,453,000 | ||||||
Real estate | One to four family | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | 267,000 | 228,000 | 267,000 | 228,000 | ||||||
Provision for loan and lease losses | (61,000) | 39,000 | ||||||||
Total ending allowance balance | 206,000 | 267,000 | 206,000 | 267,000 | ||||||
Commercial and industrial | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | 7,070,000 | 6,257,000 | 7,070,000 | 6,257,000 | ||||||
Provision for loan and lease losses | 5,165,000 | (2,678,000) | ||||||||
Loans charged-off | (254,000) | (798,000) | ||||||||
Recoveries | 142,000 | 4,289,000 | ||||||||
Total ending allowance balance | 12,123,000 | 7,070,000 | 12,123,000 | 7,070,000 | ||||||
Consumer | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||
Beginning balance | $ 754,000 | $ 748,000 | 754,000 | 748,000 | ||||||
Provision for loan and lease losses | 1,068,000 | 390,000 | ||||||||
Loans charged-off | (251,000) | (389,000) | ||||||||
Recoveries | 10,000 | 5,000 | ||||||||
Total ending allowance balance | $ 1,581,000 | $ 754,000 | $ 1,581,000 | $ 754,000 |
LOANS (Schedule of Loans by Imp
LOANS (Schedule of Loans by Impairment Method) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment, Allowance for loan losses | $ 4,918 | $ 1,180 | |
Collectively evaluated for impairment, Allowance for loan losses | 30,489 | 25,092 | |
Total ending allowance balance | 35,407 | 26,272 | $ 18,942 |
Individually evaluated for impairment, Loans | 17,733 | 5,526 | |
Collectively evaluated for impairment, Loans | 3,124,586 | 2,672,393 | |
Total ending loan balance | 3,142,319 | 2,677,919 | |
Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total ending loan balance | 2,504,388 | 2,157,344 | |
Real estate | Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Collectively evaluated for impairment, Allowance for loan losses | 17,243 | 15,317 | |
Total ending allowance balance | 17,243 | 15,317 | 9,037 |
Individually evaluated for impairment, Loans | 10,345 | 367 | |
Collectively evaluated for impairment, Loans | 1,877,160 | 1,667,869 | |
Total ending loan balance | 1,887,505 | 1,668,236 | |
Real estate | Construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Collectively evaluated for impairment, Allowance for loan losses | 1,593 | 411 | |
Total ending allowance balance | 1,593 | 411 | 625 |
Collectively evaluated for impairment, Loans | 112,290 | 30,827 | |
Total ending loan balance | 112,290 | 30,827 | |
Real estate | Multi-family | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Collectively evaluated for impairment, Allowance for loan losses | 2,661 | 2,453 | |
Total ending allowance balance | 2,661 | 2,453 | 2,047 |
Collectively evaluated for impairment, Loans | 433,239 | 375,611 | |
Total ending loan balance | 433,239 | 375,611 | |
Real estate | One to four family | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment, Allowance for loan losses | 53 | 64 | |
Collectively evaluated for impairment, Allowance for loan losses | 153 | 203 | |
Total ending allowance balance | 206 | 267 | 228 |
Individually evaluated for impairment, Loans | 999 | 3,384 | |
Collectively evaluated for impairment, Loans | 70,355 | 79,286 | |
Total ending loan balance | 71,354 | 82,670 | |
Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment, Allowance for loan losses | 3,662 | 805 | |
Collectively evaluated for impairment, Allowance for loan losses | 8,461 | 6,265 | |
Total ending allowance balance | 12,123 | 7,070 | 6,257 |
Individually evaluated for impairment, Loans | 4,192 | 1,047 | |
Collectively evaluated for impairment, Loans | 587,308 | 447,572 | |
Total ending loan balance | 591,500 | 448,619 | |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment, Allowance for loan losses | 1,203 | 311 | |
Collectively evaluated for impairment, Allowance for loan losses | 378 | 443 | |
Total ending allowance balance | 1,581 | 754 | $ 748 |
Individually evaluated for impairment, Loans | 2,197 | 728 | |
Collectively evaluated for impairment, Loans | 44,234 | 71,228 | |
Total ending loan balance | $ 46,431 | $ 71,956 |
LOANS (Schedule of Impaired by
LOANS (Schedule of Impaired by Class of Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
With an allowance recorded: | ||
Unpaid Principal Balance | $ 6,999 | $ 2,411 |
Recorded Investment | 6,869 | 2,278 |
Allowance for Loan Losses Allocated | 4,918 | 1,180 |
Average Recorded Investment | 5,450 | 1,141 |
Interest Income Recognized | 107 | 32 |
Without an allowance recorded: | ||
Unpaid Principal Balance | 11,011 | 3,395 |
Recorded Investment | 10,864 | 3,248 |
Average Recorded Investment | 4,307 | 2,438 |
Interest Income Recognized | 58 | 139 |
One to four family | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 610 | 633 |
Recorded Investment | 480 | 503 |
Allowance for Loan Losses Allocated | 53 | 64 |
Average Recorded Investment | 491 | |
Interest Income Recognized | 19 | |
Without an allowance recorded: | ||
Unpaid Principal Balance | 666 | 3,028 |
Recorded Investment | 519 | 2,881 |
Average Recorded Investment | 996 | 2,063 |
Interest Income Recognized | 20 | 124 |
Real estate | Commercial | ||
Without an allowance recorded: | ||
Unpaid Principal Balance | 10,345 | 367 |
Recorded Investment | 10,345 | 367 |
Average Recorded Investment | 2,360 | 375 |
Interest Income Recognized | 38 | 15 |
Commercial and industrial | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 4,192 | 1,047 |
Recorded Investment | 4,192 | 1,047 |
Allowance for Loan Losses Allocated | 3,662 | 805 |
Average Recorded Investment | 3,456 | 419 |
Commercial and industrial | One to four family | ||
With an allowance recorded: | ||
Average Recorded Investment | 411 | |
Interest Income Recognized | 19 | |
Without an allowance recorded: | ||
Average Recorded Investment | 951 | |
Consumer | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 2,197 | 731 |
Recorded Investment | 2,197 | 728 |
Allowance for Loan Losses Allocated | 1,203 | 311 |
Average Recorded Investment | 1,503 | 311 |
Interest Income Recognized | $ 88 | $ 13 |
LOANS (Schedule of Non-accrual
LOANS (Schedule of Non-accrual Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 5,620 | $ 4,085 |
Loans Past Due Over 90 Days Still Accruing | 769 | 408 |
One to four family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 0 | 2,345 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 4,192 | 1,047 |
Loans Past Due Over 90 Days Still Accruing | 408 | |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 1,428 | $ 693 |
Loans Past Due Over 90 Days Still Accruing | $ 769 |
LOANS (Schedule of Past Due Loa
LOANS (Schedule of Past Due Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 30,294 | $ 3,144 |
Loans not Past Due | 3,112,025 | 2,674,775 |
Total loans | 3,142,319 | 2,677,919 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,489 | 982 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 16,416 | 14 |
Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,389 | 2,148 |
Real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,504,388 | 2,157,344 |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 10,024 | |
Loans not Past Due | 1,877,481 | 1,668,236 |
Total loans | 1,887,505 | 1,668,236 |
Real estate | Commercial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 40 | |
Real estate | Commercial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9,984 | |
Real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans not Past Due | 112,290 | 30,827 |
Total loans | 112,290 | 30,827 |
Real estate | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans not Past Due | 433,239 | 375,611 |
Total loans | 433,239 | 375,611 |
Real estate | One to four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,908 | |
Loans not Past Due | 68,446 | 82,670 |
Total loans | 71,354 | 82,670 |
Real estate | One to four family | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,908 | |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 15,021 | 1,801 |
Loans not Past Due | 576,479 | 446,818 |
Total loans | 591,500 | 448,619 |
Commercial and industrial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,429 | 346 |
Commercial and industrial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,400 | |
Commercial and industrial | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,192 | 1,455 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,341 | 1,343 |
Loans not Past Due | 44,090 | 70,613 |
Total loans | 46,431 | 71,956 |
Consumer | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 112 | 636 |
Consumer | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 32 | 14 |
Consumer | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 2,197 | $ 693 |
LOANS (Troubled Debt Restructur
LOANS (Troubled Debt Restructurings) (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans modified in troubled debt restructurings | $ 1,360,000 | $ 1,441,000 |
Number of TDR loans during the period | 0 | |
Specific reserves modified as TDRs | $ 53,000 | $ 81,000 |
Number of contracts financing receivable modifications | 0 | 0 |
Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Extended maturity period in modification of financing receivable | 5 years | |
Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Extended maturity period in modification of financing receivable | 3 years | |
One to four family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans modified in troubled debt restructurings | $ 999,000 | $ 1,039,000 |
COVID 19 - Impact | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of TDR loans during the period | loan | 63 | |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans modified in troubled debt restructurings | $ 361,000 | 367,000 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans modified in troubled debt restructurings | $ 35,000 |
LOANS (Schedule of Loans by Ris
LOANS (Schedule of Loans by Risk Category) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 3,142,319 | $ 2,677,919 |
Commercial Construction and Multifamily Real Estate Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 3,024,534 | 2,523,293 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 3,006,498 | 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 | 3,860 | 367 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 9,984 | 960 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 4,192 | 1,047 |
Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 2,504,388 | 2,157,344 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,887,505 | 1,668,236 |
Real estate | Commercial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,877,160 | 1,667,869 |
Real estate | Commercial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 361 | 367 |
Real estate | Commercial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 9,984 | |
Real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 112,290 | 30,827 |
Real estate | Construction | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 112,290 | 30,827 |
Real estate | Multi-family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 433,239 | 375,611 |
Real estate | Multi-family | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 433,239 | 375,611 |
Real estate | One to four family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 71,354 | 82,670 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 591,500 | 448,619 |
Commercial and industrial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 583,809 | 446,612 |
Commercial and industrial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 3,499 | |
Commercial and industrial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 960 | |
Commercial and industrial | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 4,192 | 1,047 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 46,431 | $ 71,956 |
LOANS (COVID-19 Loan Modificati
LOANS (COVID-19 Loan Modifications) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)loan | |
Financing Receivable, Impaired [Line Items] | |
Financing Receivable, Modifications, Number of Contracts | 0 |
COVID 19 - Impact | |
Financing Receivable, Impaired [Line Items] | |
Financing Receivable, Modifications, Number of Contracts | loan | 63 |
Loan Restructuring, Trial Modifications, Amount | $ 220,300 |
Percentage of Loans and Leases Receivable, Modified | 7.00% |
PREMISES AND EQUIPMENT (Schedul
PREMISES AND EQUIPMENT (Schedule of Premises and equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | $ 28,030 | $ 26,996 |
Less accumulated depreciation and amortization | (14,555) | (14,896) |
Total Premises and Equipment, net | 13,475 | 12,100 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | 12,343 | 9,961 |
Furniture and Equipment in Process | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | 2,175 | |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | $ 15,687 | 11,092 |
Leasehold Improvements in Process | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | $ 3,768 |
PREMISES AND EQUIPMENT (Sched_2
PREMISES AND EQUIPMENT (Schedule of Premises and equipment) (Useful life) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment useful life | 10 years |
Furniture and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment useful life | 3 years |
Furniture and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment useful life | 7 years |
Leasehold Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment useful life | 3 years |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment useful life | 10 years |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
PREMISES AND EQUIPMENT | ||
Depreciation and amortization expense | $ 2.5 | $ 1.6 |
DEPOSITS (Schedule of Deposits)
DEPOSITS (Schedule of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
DEPOSITS | ||
Noninterest bearing demand accounts | $ 1,715,042 | $ 1,090,479 |
Money market | 1,993,514 | 1,573,716 |
Savings accounts | 17,895 | 16,204 |
Time Deposits | ||
Time deposits under $100,000 | 4,172 | 5,483 |
Time deposits $100,000 and over | 87,890 | 104,892 |
Total deposits | $ 3,818,513 | $ 2,790,774 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
DEPOSITS | ||
Time deposits greater than $250,000 | $ 42.5 | $ 61.4 |
DEPOSITS (schedule maturities o
DEPOSITS (schedule maturities of time deposits) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
DEPOSITS | |
2021 | $ 51,321 |
2022 | 26,466 |
2023 | 7,270 |
2024 | 3,175 |
2025 | 3,830 |
Total time deposits | $ 92,062 |
BORROWINGS (Advances from the F
BORROWINGS (Advances from the FHLB) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank of New York advances | $ 0 | $ 144,000 |
Maturing in 2020, fixed rate at rates from 1.86% to 2.09%, weighted averaging 2.02% | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank of New York advances | $ 144,000 |
BORROWINGS (Advances from the_2
BORROWINGS (Advances from the FHLB) - Fixed rate (Details) - Maturing in 2020, fixed rate at rates from 1.86% to 2.09%, weighted averaging 2.02% | Dec. 31, 2020 |
Minimum | |
Federal Home Loan Bank, Advances [Line Items] | |
Interest rate for Federal Home Loan Bank advances | 1.86% |
Maximum | |
Federal Home Loan Bank, Advances [Line Items] | |
Interest rate for Federal Home Loan Bank advances | 2.09% |
Weighted Average | |
Federal Home Loan Bank, Advances [Line Items] | |
Weighted average interest rate for Federal Home Loan Bank advances | 2.02% |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) | Mar. 08, 2017 | Jul. 14, 2006 | Dec. 07, 2005 | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances [Line Items] | |||||
FHLB advances, pledged as collateral | $ 499,800,000 | $ 437,800,000 | |||
Available collateral to borrow an additional amount from FHLB | $ 499,800,000 | ||||
Subordinated Debt | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Debt instrument face amount | $ 25,000,000 | ||||
Maturity date | Mar. 15, 2027 | ||||
Interest rate | 6.25% | ||||
Description of periodic payment | semi-annually on March 15 and September 15 of each year through March 15, 2022 and quarterly thereafter on March 15, June 15, September 15 and December 15 of each year | ||||
Subordinated Debt | London Interbank Offered Rate (LIBOR) | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Basis spread on LIBOR variable rate | 4.26% | ||||
Junior Subordinated Debt [Member] | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Description of periodic payment | 20 consecutive quarterly payments | ||||
Period for periodic payment | 5 years | ||||
Metbank Capital Trust I [Member] | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Investment in common securities of the trust | $ 310,000 | ||||
Trust preferred securities issued | 10,000,000 | ||||
Metbank Capital Trust I [Member] | Junior Subordinated Debt [Member] | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Debt instrument face amount | $ 10,300,000 | ||||
Maturity date | Dec. 9, 2035 | ||||
Description of LIBOR rate basis | three-month LIBOR | ||||
Interest rate during period | 2.09% | 3.84% | |||
Metbank Capital Trust I [Member] | Junior Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Basis spread on LIBOR variable rate | 1.85% | ||||
Metbank Capital Trust Two [Member] | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Investment in common securities of the trust | $ 310,000 | ||||
Trust preferred securities issued | 10,000,000 | ||||
Metbank Capital Trust Two [Member] | Junior Subordinated Debt [Member] | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Debt instrument face amount | $ 10,300,000 | ||||
Maturity date | Oct. 7, 2036 | ||||
Description of LIBOR rate basis | 3-month LIBOR | ||||
Interest rate during period | 2.24% | 3.99% | |||
Metbank Capital Trust Two [Member] | Junior Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Basis spread on LIBOR variable rate | 2.00% |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income tax expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | ||||||||||
Federal | $ 10,936 | $ 9,222 | ||||||||
State and local | 7,226 | 6,570 | ||||||||
Total current | 18,162 | 15,792 | ||||||||
Deferred | ||||||||||
Federal | 139 | (845) | ||||||||
State and local | 151 | (1,020) | ||||||||
Total deferred | 290 | (1,865) | ||||||||
Total income tax expense | $ 5,482 | $ 5,111 | $ 4,953 | $ 2,906 | $ 3,699 | $ 3,571 | $ 2,880 | $ 3,777 | $ 18,452 | $ 13,927 |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred tax assets and liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for loan losses | $ 11,145 | $ 8,303 |
Interest on nonaccrual loans | 24 | |
Off balance sheet reserves | 57 | 57 |
Restricted stock | 90 | 188 |
Tangible asset | 14 | 17 |
Non-qualified stock options | 292 | 294 |
Net unrealized loss on interest rate cap | 564 | |
Other | 51 | |
Total gross deferred tax assets | 12,162 | 8,934 |
Deferred tax liabilities: | ||
Depreciation and amortization | 3,731 | 781 |
Net unrealized gain on securities available for sale | 1,067 | 604 |
Pass-through income | 59 | 69 |
Prepaid assets | 355 | 341 |
Total gross deferred tax liabilities | 5,212 | 1,795 |
Net deferred tax asset, included in other assets | $ 6,950 | $ 7,139 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of statutory federal income tax rate) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | ||||||||||
Pretax income at statutory, amount | $ 12,163 | $ 9,253 | ||||||||
Pretax income at statutory rates | 21.00% | 21.00% | ||||||||
State and local taxes, net of federal income tax benefit, amount | $ 5,828,000 | $ 4,385,000 | ||||||||
State and local taxes, net of federal income tax benefit, rate | 10.06% | 9.95% | ||||||||
Nondeductible expenses, amount | $ 457,000 | $ 430,000 | ||||||||
Nondeductible expenses, rate | 0.79% | 0.97% | ||||||||
Excess tax deduction on equity awards, amount | $ (59,000) | $ (132,000) | ||||||||
Excess tax deduction on equity awards, rate | (0.10%) | (0.30%) | ||||||||
Tax-exempt income, net amount | $ (2,000) | |||||||||
Tax-exempt income, net rate | 0.00% | |||||||||
Other, amount | $ 63,000 | $ (7,000) | ||||||||
Other, rate | 0.11% | (0.01%) | ||||||||
Effective income tax expense, amount | $ 5,482,000 | $ 5,111,000 | $ 4,953,000 | $ 2,906,000 | $ 3,699,000 | $ 3,571,000 | $ 2,880,000 | $ 3,777,000 | $ 18,452,000 | $ 13,927,000 |
Effective income tax expense, rate | 31.86% | 31.61% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% |
Unrecognized tax benefits | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | |
Executive Officer [Member] | Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of note payable to related party | $ 780,000 | ||
Interest rate | 2.10% | ||
Description of LIBOR rate basis | 5-year LIBOR rate in effect on the note date, plus 100 basis points | ||
Basis spread on LIBOR variable rate | 1.00% | ||
Maturity date | Aug. 15, 2021 | ||
Outstanding balance of note payable to related party | $ 780,000 | $ 780,000 | |
Pasl Holding Llc [Member] | Principal Officers, Directors, And Their Affiliates [Member] | |||
Debt Instrument [Line Items] | |||
Deposits from related parties | $ 4,500,000 | $ 566,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Future minimum rental payments required) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
COMMITMENTS AND CONTINGENCIES | |
2021 | $ 3,947 |
2022 | 3,877 |
2023 | 3,548 |
2024 | 3,506 |
2025 | 3,285 |
Thereafter (and through 2035) | 23,417 |
Total minimum lease payments | $ 41,580 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | ||
Rental expense | $ 4.7 | $ 3.8 |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 271,169 | $ 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 | 194,688 | 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 | 33,492 | 32,472 |
Carrying Amount | U.S. Government agency securities | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 37,916 | 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 | 2,313 | 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 | 2,313 | 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 | 194,688 | 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 | 33,492 | 32,472 |
Fair Value, Inputs, Level 2 | U.S. Government agency securities | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 37,916 | 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 | |
Interest Rate Cap [Member] | Carrying Amount | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets - interest rate cap | 770 | |
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 | $ 770 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets: | |||
Debt securities available for sale | $ 266,096 | $ 234,942 | |
Securities held to maturity | 2,827 | 3,712 | |
Equity investments | 2,313 | 2,224 | |
Other investments | |||
Other Investments | 11,597 | 21,437 | |
FRB Stock | 7,400 | 7,300 | |
FHLB Stock | 2,700 | 8,100 | |
SBA Loan Fund | $ 5,000 | ||
Financial liabilities: | |||
Noninterest-bearing demand deposits | 1,715,042 | 1,090,479 | |
Time deposits | 92,062 | ||
Federal Home Loan Bank of New York advances | 0 | 144,000 | |
Carrying Amount | |||
Financial assets: | |||
Cash and due from banks | 8,692 | 8,116 | |
Overnight deposits | 855,613 | 381,104 | |
Debt securities available for sale | 266,096 | 234,942 | |
Securities held to maturity | 2,760 | 3,722 | |
Equity investments | 2,313 | 2,224 | |
Loans, net | 3,101,646 | 2,646,677 | |
Other investments | |||
FRB Stock | 7,381 | 7,317 | |
FHLB Stock | 2,718 | 8,122 | |
SBA Loan Fund | 5,000 | ||
Disability Fund | 1,000 | 500 | |
CRA - CD | 498 | 498 | |
Accrued interest receivable | 13,249 | 8,862 | |
Financial liabilities: | |||
Noninterest-bearing demand deposits | 1,715,042 | 1,090,479 | |
Money market and savings deposits | 2,011,409 | 1,589,920 | |
Time deposits | 92,062 | 110,375 | |
Federal Home Loan Bank of New York advances | 144,000 | ||
Trust preferred securities payable | 20,620 | 20,620 | |
Subordinated debt, net of issuance cost | 24,657 | 24,601 | |
Accrued interest payable | 712 | 1,229 | |
Secured Borrowings | 36,964 | 42,972 | |
Total Fair Value | |||
Financial assets: | |||
Cash and due from banks | 8,692 | 8,116 | |
Overnight deposits | 855,613 | 381,104 | |
Debt securities available for sale | 266,096 | 234,942 | |
Securities held to maturity | 2,827 | 3,712 | |
Equity investments | 2,313 | 2,224 | |
Loans, net | 3,094,998 | 2,609,233 | |
Other investments | |||
Disability Fund | 1,000 | 500 | |
CRA - CD | 498 | 498 | |
Accrued interest receivable | 13,249 | 8,862 | |
Financial liabilities: | |||
Noninterest-bearing demand deposits | 1,715,042 | 1,090,479 | |
Money market and savings deposits | 2,011,409 | 1,589,920 | |
Time deposits | 93,157 | 110,800 | |
Federal Home Loan Bank of New York advances | 144,229 | ||
Trust preferred securities payable | 20,001 | 20,011 | |
Subordinated debt, net of issuance cost | 25,375 | 25,375 | |
Accrued interest payable | 712 | 1,229 | |
Secured Borrowings | 36,964 | 42,972 | |
Interest Rate Cap [Member] | Carrying Amount | |||
Other investments | |||
Derivative Asset | 770 | ||
Interest Rate Cap [Member] | Total Fair Value | |||
Other investments | |||
Derivative Asset | 770 | ||
Fair Value, Inputs, Level 1 | |||
Financial assets: | |||
Cash and due from banks | 8,692 | 8,116 | |
Overnight deposits | 855,613 | 381,104 | |
Equity investments | 2,313 | 2,224 | |
Other investments | |||
CRA - CD | 498 | 498 | |
Financial liabilities: | |||
Noninterest-bearing demand deposits | 1,715,042 | 1,090,479 | |
Money market and savings deposits | 2,011,409 | 1,589,920 | |
Accrued interest payable | 7 | 14 | |
Fair Value, Inputs, Level 2 | |||
Financial assets: | |||
Debt securities available for sale | 266,096 | 234,942 | |
Securities held to maturity | 2,827 | 3,712 | |
Other investments | |||
Disability Fund | 1,000 | 500 | |
Accrued interest receivable | 414 | 544 | |
Financial liabilities: | |||
Money market and savings deposits | 0 | ||
Time deposits | 93,157 | 110,800 | |
Federal Home Loan Bank of New York advances | 144,229 | ||
Subordinated debt, net of issuance cost | 25,375 | 25,375 | |
Accrued interest payable | 591 | 1,009 | |
Secured Borrowings | 36,964 | 42,972 | |
Fair Value, Inputs, Level 2 | Interest Rate Cap [Member] | |||
Other investments | |||
Derivative Asset | 770 | ||
Fair Value, Inputs, Level 3 | |||
Financial assets: | |||
Loans, net | 3,094,998 | 2,609,233 | |
Other investments | |||
Accrued interest receivable | 12,835 | 8,318 | |
Financial liabilities: | |||
Money market and savings deposits | 0 | ||
Trust preferred securities payable | 20,001 | 20,011 | |
Accrued interest payable | $ 114 | $ 206 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Class B Preferred Stock | ||
Stockholders Equity Note [Line Items] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
STOCK COMPENSATION PLAN (Summar
STOCK COMPENSATION PLAN (Summary of the Status of the Stock Option Plan) (Details) | 12 Months Ended |
Dec. 31, 2020USD ($)$ / 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 |
Aggregate intrinsic value of options outstanding at end of year | $ | $ 4,220,370 |
Weighted average remaining contractual life (years) | 3 years 4 months 17 days |
STOCK COMPENSATION PLAN (Summ_2
STOCK COMPENSATION PLAN (Summary of Stock Options Outstanding) (Details) | 12 Months Ended |
Dec. 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 | 3 years 4 months 17 days |
Weighted Average Exercise Price | $ 18 |
Weighted Average Intrinsic Price | 18.27 |
$21 - 30 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Average Exercise Prices, Lower Limit | 21 |
Range of Average Exercise Prices, Upper Limit | $ 30 |
Number of Options Outstanding | shares | 0 |
Weighted Average Exercise Price | $ 0 |
Weighted Average Intrinsic Price | 0 |
$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 | 3 years 4 months 17 days |
Weighted Average Exercise Price | $ 18 |
Weighted Average Intrinsic Price | $ 18.27 |
STOCK COMPENSATION PLAN (Summ_3
STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details) - Restricted stock - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 | 104,838 | 104,838 | 53,957 |
Number of shares, Granted | 60,307 | 62,092 | 106,423 |
Number of shares, Forfeited | (31,781) | (1,561) | |
Number of shares, Vested | (58,860) | (53,981) | |
Number of shares, Outstanding at end of period | 76,289 | 104,838 | |
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 | $ 29.86 | $ 29.86 | $ 21.46 |
Weighted Average Grant Date fair Value, Granted | 44.80 | 35.36 | |
Weighted Average Grant Date fair Value, Forfeited | 38.24 | 32.71 | |
Weighted Average Grant Date fair Value, Vested | 31.83 | 32.22 | |
Weighted Average Grant Date fair Value, at end of period | $ 37.01 | $ 29.86 | |
Vesting period | 3 years |
STOCK COMPENSATION PLAN (Summ_4
STOCK COMPENSATION PLAN (Summary of Performance Based Stock Awards) (Details) $ in Thousands | 12 Months Ended |
Dec. 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-Based Restricted Stock Units | |
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 | $ | $ 1,430,011 |
STOCK COMPENSATION PLAN (Detail
STOCK COMPENSATION PLAN (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | May 28, 2019 | May 18, 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 | $ 2,000,000 | ||||
Compensation cost related to stock awards | $ 1,500,000 | $ 1,200,000 | |||
Number of shares, Granted | 60,307 | 62,092 | 106,423 | ||
Vesting period | 3 years | ||||
Unrecognized compensation expense recognition period | 1 year 8 months 4 days | ||||
Fair value of shares vested | $ 2,100,000 | $ 2,400,000 | |||
Restricted stock | Non-employee directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to stock awards | $ 410,000 | 400,000 | |||
Number of shares, Granted | 3,890,000 | ||||
Vesting percentage | 33.00% | ||||
Service period (in years) | 3 years | ||||
Vesting period | 3 years | ||||
Restricted stock | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares, Granted | 1,785 | ||||
Performance-Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to stock awards | $ 1,400,000 | $ 1,400,000 | |||
Service period (in years) | 3 years | ||||
Number of PRSUs awarded | 90,000 | ||||
Performance-Based Restricted Stock Units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
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 | $ 440,000 | ||||
Unrecognized compensation expense recognition period | 1 year | ||||
Equity Incentive Plan 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment award, shares authorized, maximum | 311,251 | 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] | |||||
Share-based payment award, shares authorized, maximum | 341,562 | ||||
Outstanding shares | 468,382 | 628,719 | |||
Non-vested stock compensation cost | $ 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 |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
EMPLOYEE BENEFIT PLAN | ||
Employer discretionary contribution amount | $ 619,000 | $ 499,000 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Outstanding following off-balance-sheet financial instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 53,288 | $ 64,947 |
Variable Rate | 266,696 | 193,767 |
Undrawn lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 19,024 | 17,204 |
Variable Rate | 266,696 | 193,767 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 34,264 | 47,743 |
Variable Rate | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 53,288 | $ 64,947 |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed interest rate off-balance-sheet financial instruments | 3.00% | 3.00% |
Commitments term | 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% |
Commitments term | 2 years | |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 34,264 | $ 47,743 |
Amount of off-balance-sheet financial instruments collateral received | $ 26,900 | $ 29,800 |
REGULATORY CAPITAL (Summary of
REGULATORY CAPITAL (Summary of actual capital amounts and ratios) (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual Amount | $ 410,959 | $ 350,403 |
Total capital (to risk-weighted assets), Actual Ratio | 12.7 | 12.5 |
Total capital (to risk-weighted assets), For Capital Adequacy Amount | $ 257,941 | |
Total capital (to risk-weighted assets), For Capital Adequacy Ratio | 8 | |
Tier 1 common equity (to risk-weighted assets), Actual Amount | $ 324,592 | $ 282,646 |
Tier 1 common equity (to risk-weighted assets), Actual Ratio | 10.1 | 10.1 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Amount | $ 145,092 | |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Ratio | 4.50% | |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 350,714 | $ 308,769 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 10.9 | 11 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Amount | $ 193,456 | |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Ratio | 6 | |
Tier 1 capital (to average assets), Actual Amount | $ 350,714 | $ 308,769 |
Tier 1 capital (to average assets), Actual Ratio | 8.5 | 9.4 |
Tier 1 capital (to average assets), For Capital Adequacy Amount | $ 165,767 | |
Tier 1 capital (to average assets), For Capital Adequacy Ratio | 4 | |
Total capital (to risk-weighted assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Amount | $ 223,973 | |
Total capital (to risk-weighted assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Ratio | 8.00% | |
Tier 1 common equity (to risk-weighted assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Amount | $ 125,985 | |
Tier 1 common equity (to risk-weighted assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Ratio | 4.50% | |
Tier 1 capital (to risk-weighted assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Amount | $ 167,980 | |
Tier 1 capital (to risk-weighted assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Ratio | 6.00% | |
Tier 1 capital (to average assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Amount | $ 131,087 | |
Tier 1 capital (to average assets), Minimum for Capital Adequacy plus Capital Conservation Buffer Ratio | 4.00% | |
Metropolitan Commercial Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual Amount | $ 410,295 | $ 356,353 |
Total capital (to risk-weighted assets), Actual Ratio | 12.7 | 12.7 |
Total capital (to risk-weighted assets), For Capital Adequacy Amount | $ 257,827 | $ 223,858 |
Total capital (to risk-weighted assets), For Capital Adequacy Ratio | 8 | 8 |
Total capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 322,284 | $ 279,823 |
Total capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 10 | 10 |
Tier 1 common equity (to risk-weighted assets), Actual Amount | $ 374,712 | $ 329,905 |
Tier 1 common equity (to risk-weighted assets), Actual Ratio | 11.6 | 11.8 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Amount | $ 145,028 | $ 125,920 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Ratio | 4.50% | 4.50% |
Tier 1 common equity (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 209,485 | $ 181,885 |
Tier 1 common equity (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 6.50% | 6.50% |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 374,712 | $ 329,905 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 11.6 | 11.8 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Amount | $ 193,370 | $ 167,894 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Ratio | 6 | 6 |
Tier 1 capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 257,827 | $ 223,858 |
Tier 1 capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 8 | 8 |
Tier 1 capital (to average assets), Actual Amount | $ 374,712 | $ 329,905 |
Tier 1 capital (to average assets), Actual Ratio | 9 | 10.1 |
Tier 1 capital (to average assets), For Capital Adequacy Amount | $ 165,704 | $ 131,000 |
Tier 1 capital (to average assets), For Capital Adequacy Ratio | 4 | 4 |
Tier 1 capital (to average assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 207,130 | $ 163,750 |
Tier 1 capital (to average assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 5 | 5 |
EARNINGS PER COMMON SHARE (Comp
EARNINGS PER COMMON SHARE (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Calculations of basic and diluted earnings per share | ||||||||||
Number of antidilutive shares not considered in computing diluted earnings per share | 0 | 0 | ||||||||
Basic | ||||||||||
Net income per consolidated statements of income | $ 11,775 | $ 10,783 | $ 10,811 | $ 6,097 | $ 7,863 | $ 7,683 | $ 6,057 | $ 8,531 | $ 39,466 | $ 30,134 |
Less: Earnings allocated to participating securities | (344) | (448) | ||||||||
Net income available to common stockholder | $ 39,122 | $ 29,686 | ||||||||
Weighted average common shares outstanding including participating securities | 8,293,677 | 8,297,478 | ||||||||
Less: Weighted average participating securities | (72,248) | (123,336) | ||||||||
Weighted average common shares outstanding | 8,221,429 | 8,174,142 | ||||||||
Basic earnings per common share (in dollars per share) | $ 1.42 | $ 1.30 | $ 1.30 | $ 0.73 | $ 0.95 | $ 0.92 | $ 0.73 | $ 1.03 | $ 4.76 | $ 3.63 |
Diluted | ||||||||||
Net income allocated to common shareholders | $ 39,122 | $ 29,686 | ||||||||
Weighted average common shares outstanding for basic earnings per common share | 8,221,429 | 8,174,142 | ||||||||
Average shares and dilutive potential common shares | 8,398,444 | 8,339,141 | ||||||||
Diluted earnings per common share (in dollars per share) | $ 1.39 | $ 1.27 | $ 1.28 | $ 0.72 | $ 0.93 | $ 0.90 | $ 0.71 | $ 1.01 | $ 4.66 | $ 3.56 |
Stock Option | ||||||||||
Diluted | ||||||||||
Dilutive effects of assumed exercise of stock options/vesting of performance based restricted stock | 103,463 | 125,085 | ||||||||
Restricted stock | ||||||||||
Calculations of basic and diluted earnings per share | ||||||||||
Number of antidilutive shares not considered in computing diluted earnings per share | 33,615 | |||||||||
Diluted | ||||||||||
Dilutive effects of assumed exercise of stock options/vesting of performance based restricted stock | 73,552 | 39,914 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Number of antidilutive shares not considered in computing diluted earnings per share | 0 | 0 |
Restricted stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Number of antidilutive shares not considered in computing diluted earnings per share | 33,615 |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | |||
Cash and due from banks | $ 8,692 | $ 8,116 | |
Loans, net of allowance for loan losses | 3,101,646 | 2,646,677 | |
Total assets | 4,330,821 | 3,357,572 | |
Liabilities and Stockholders' Equity | |||
Trust preferred securities payable | 20,620 | 20,620 | |
Subordinated debt payable, net of issuance costs | 24,657 | 24,601 | |
Other liabilities | 26,923 | 10,696 | |
Total liabilities | 3,990,034 | 3,058,448 | |
Stockholders' equity: | |||
Common stock | 82 | 82 | |
Surplus | 218,899 | 216,468 | |
Retained earnings | 120,830 | 81,364 | |
Accumulated other comprehensive loss, net of tax effect | 973 | 1,207 | |
Total equity | 340,787 | 299,124 | $ 264,400 |
Total liabilities and stockholders' equity | 4,330,821 | 3,357,572 | |
Parent Company | |||
Assets | |||
Cash and due from banks | 15 | 1,836 | |
Loans, net of allowance for loan losses | 776 | 776 | |
Investments | 620 | 620 | |
Investment in subsidiary bank, at equity | 385,510 | 340,733 | |
Other assets | 22 | 1,106 | |
Total assets | 386,943 | 345,071 | |
Liabilities and Stockholders' Equity | |||
Trust preferred securities payable | 20,620 | 20,620 | |
Subordinated debt payable, net of issuance costs | 24,657 | 24,601 | |
Other liabilities | 879 | 726 | |
Total liabilities | 46,156 | 45,947 | |
Stockholders' equity: | |||
Preferred stock | 3 | 3 | |
Common stock | 82 | 82 | |
Surplus | 218,899 | 216,468 | |
Retained earnings | 120,830 | 81,364 | |
Accumulated other comprehensive loss, net of tax effect | 973 | 1,207 | |
Total equity | 340,787 | 299,124 | |
Total liabilities and stockholders' equity | $ 386,943 | $ 345,071 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION (Condensed Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income: | ||||||||||
Loans | $ 136,497 | $ 117,124 | ||||||||
Securities and money market funds | 34 | 147 | ||||||||
Total interest income | $ 36,862 | $ 35,945 | $ 34,223 | $ 36,067 | $ 36,466 | $ 35,496 | $ 30,828 | $ 26,990 | 143,097 | 129,780 |
Interest expense: | ||||||||||
Trust preferred securities payable | 572 | 899 | ||||||||
Subordinated debt interest expense | 1,618 | 1,620 | ||||||||
Total interest expense | 3,395 | 3,621 | 4,062 | 7,098 | 8,424 | 9,443 | 7,891 | 6,412 | 18,176 | 32,170 |
Net interest expense | 33,467 | 32,324 | 30,161 | 28,969 | 28,042 | 26,053 | 22,937 | 20,578 | 124,921 | 97,610 |
Provision for loan losses | 1,795 | 1,137 | 1,766 | 4,790 | 2,300 | 2,004 | 1,950 | (2,031) | 9,488 | 4,223 |
Net interest income after provision for loan losses | 31,672 | 31,187 | 28,395 | 24,179 | 25,742 | 24,049 | 20,987 | 22,609 | 115,433 | 93,387 |
Other expense | 9,219 | 7,764 | ||||||||
Income before income tax expense | 17,257 | 15,894 | 15,764 | 9,003 | 11,562 | 11,254 | 8,937 | 12,308 | 57,918 | 44,061 |
Income tax benefit | 5,482 | 5,111 | 4,953 | 2,906 | 3,699 | 3,571 | 2,880 | 3,777 | 18,452 | 13,927 |
Net income | $ 11,775 | $ 10,783 | $ 10,811 | $ 6,097 | $ 7,863 | $ 7,683 | $ 6,057 | $ 8,531 | 39,466 | 30,134 |
Comprehensive income | 39,232 | 31,746 | ||||||||
Parent Company | ||||||||||
Income: | ||||||||||
Loans | 17 | 17 | ||||||||
Securities and money market funds | 18 | 27 | ||||||||
Total interest income | 35 | 44 | ||||||||
Interest expense: | ||||||||||
Trust preferred securities payable | 590 | 908 | ||||||||
Subordinated debt interest expense | 1,618 | 1,618 | ||||||||
Total interest expense | 2,208 | 2,526 | ||||||||
Net interest expense | (2,173) | (2,482) | ||||||||
Net interest income after provision for loan losses | (2,173) | (2,482) | ||||||||
Other expense | 2,338 | 3,865 | ||||||||
Loss before undistributed earnings of subsidiary bank | (4,511) | (6,347) | ||||||||
Equity in undistributed earnings of subsidiary bank | 42,844 | 35,209 | ||||||||
Income before income tax expense | 38,333 | 28,862 | ||||||||
Income tax benefit | 1,133 | 1,272 | ||||||||
Net income | 39,466 | 30,134 | ||||||||
Comprehensive income | $ 39,232 | $ 31,746 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION (Condensed Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows From Operating Activities: | ||||||||||
Net income | $ 11,775 | $ 10,783 | $ 10,811 | $ 6,097 | $ 7,863 | $ 7,683 | $ 6,057 | $ 8,531 | $ 39,466 | $ 30,134 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||
Stock based compensation expense | 3,312 | 3,067 | ||||||||
Net cash used in operating activities | 87,270 | 38,956 | ||||||||
Cash Flows From Financing Activities: | ||||||||||
Net cash used in investing activities | (489,035) | (1,014,789) | ||||||||
Cash flows from financing activities: | ||||||||||
Redemption of common stock for tax withholdings for restricted stock vesting | (881) | (89) | ||||||||
Net cash provided by financing activities | 876,850 | 1,132,103 | ||||||||
Net (decrease) increase in cash and cash equivalents | 475,085 | 156,270 | ||||||||
Cash and cash equivalents at the beginning of the period | 389,220 | 389,220 | ||||||||
Cash and cash equivalents at the end of the period | 864,305 | 389,220 | 864,305 | 389,220 | ||||||
Parent Company | ||||||||||
Cash Flows From Operating Activities: | ||||||||||
Net income | 39,466 | 30,134 | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||
Undistributed earnings of subsidiary bank | (42,844) | (35,209) | ||||||||
Non-employee stock based compensation | 410 | 400 | ||||||||
Amortization of trust preferred issuance costs | 56 | 56 | ||||||||
Stock based compensation expense | 2,902 | 2,667 | ||||||||
Decrease (increase) in other assets | (1,084) | 274 | ||||||||
Increase (decrease) in other liabilities | 154 | 56 | ||||||||
Net cash used in operating activities | (940) | (1,622) | ||||||||
Cash flows from financing activities: | ||||||||||
Redemption of common stock for tax withholdings for restricted stock vesting | (881) | (89) | ||||||||
Net cash provided by financing activities | (881) | (89) | ||||||||
Net (decrease) increase in cash and cash equivalents | (1,821) | (1,711) | ||||||||
Cash and cash equivalents at the beginning of the period | $ 1,836 | $ 3,547 | 1,836 | 3,547 | ||||||
Cash and cash equivalents at the end of the period | $ 15 | $ 1,836 | $ 15 | $ 1,836 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,207 | ||
Beginning balance, as adjusted | 1,207 | $ 1,207 | $ 1,207 |
Unrealized holding gain arising during the period | 4,877 | 2,358 | |
Reclassification adjustment for gain included in net income | (3,286) | ||
Tax effect | (514) | (746) | |
Net of tax | 1,077 | 1,612 | |
Unrealized holding loss arising during the period | (1,925) | ||
Tax effect | 614 | ||
Net of tax | (1,311) | ||
Net current period other comprehensive income | (234) | 1,612 | |
Ending balance | 973 | 1,207 | |
AOCI (Loss), Net | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 1,207 | (473) | |
Beginning balance, as adjusted | 1,207 | 1,207 | 1,207 |
Net current period other comprehensive income | (234) | 1,612 | |
Ending balance | 973 | 1,207 | |
AOCI (Loss), Net | ASU 2016-01 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (405) | ||
Cumulative effect of adopting new accounting standard ASU 2016-01, net of taxes | 68 | ||
Beginning balance, as adjusted | (405) | (405) | $ (405) |
Ending balance | $ 1,207 | $ (405) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Proceeds from sales and calls of securities and associated gains and losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Proceeds from Sales and Calls of Securities | $ 141,400 | $ 1,100 |
Proceeds from sales of securities available for sale | $ 111,422 | |
Gain or loss associated with the call of securities | 3,300 | |
Gain (Loss) on Call of Securities | $ 0 |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Income tax expense | $ (5,482) | $ (5,111) | $ (4,953) | $ (2,906) | $ (3,699) | $ (3,571) | $ (2,880) | $ (3,777) | $ (18,452) | $ (13,927) |
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 | 3,286 | |||||||||
Income tax expense | (1,036) | |||||||||
Total reclassifications, net of income tax | $ 2,250 |
UNAUDITED QUARTERLY FINANCIAL_3
UNAUDITED QUARTERLY FINANCIAL DATA (Selected Consolidated Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information (Unaudited) | ||||||||||
Interest income | $ 36,862 | $ 35,945 | $ 34,223 | $ 36,067 | $ 36,466 | $ 35,496 | $ 30,828 | $ 26,990 | $ 143,097 | $ 129,780 |
Interest expense | 3,395 | 3,621 | 4,062 | 7,098 | 8,424 | 9,443 | 7,891 | 6,412 | 18,176 | 32,170 |
Net interest income | 33,467 | 32,324 | 30,161 | 28,969 | 28,042 | 26,053 | 22,937 | 20,578 | 124,921 | 97,610 |
Provision for loan losses | 1,795 | 1,137 | 1,766 | 4,790 | 2,300 | 2,004 | 1,950 | (2,031) | 9,488 | 4,223 |
Net interest income after provision for loan losses | 31,672 | 31,187 | 28,395 | 24,179 | 25,742 | 24,049 | 20,987 | 22,609 | 115,433 | 93,387 |
Non-interest income | 3,373 | 3,637 | 5,653 | 4,340 | 2,862 | 2,700 | 2,674 | 2,393 | ||
Non-interest expense | 17,788 | 18,930 | 18,284 | 19,516 | 17,042 | 15,495 | 14,724 | 12,694 | 74,518 | 59,955 |
Income before income taxes | 17,257 | 15,894 | 15,764 | 9,003 | 11,562 | 11,254 | 8,937 | 12,308 | 57,918 | 44,061 |
Income tax expense | 5,482 | 5,111 | 4,953 | 2,906 | 3,699 | 3,571 | 2,880 | 3,777 | 18,452 | 13,927 |
Net income | $ 11,775 | $ 10,783 | $ 10,811 | $ 6,097 | $ 7,863 | $ 7,683 | $ 6,057 | $ 8,531 | $ 39,466 | $ 30,134 |
Basic earnings per common share (in dollars per share) | $ 1.42 | $ 1.30 | $ 1.30 | $ 0.73 | $ 0.95 | $ 0.92 | $ 0.73 | $ 1.03 | $ 4.76 | $ 3.63 |
Diluted earnings per common share (in dollars per share) | $ 1.39 | $ 1.27 | $ 1.28 | $ 0.72 | $ 0.93 | $ 0.90 | $ 0.71 | $ 1.01 | $ 4.66 | $ 3.56 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of non-interest income) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 31, 2019 | |
Total non-interest income | $ 13,669,000 | $ 10,565,000 | |
Retained Earnings (Accumulated Deficit) | 120,830,000 | 81,364,000 | |
ASU 2014-09 | Restatement Adjustment | |||
Retained Earnings (Accumulated Deficit) | 117,000 | $ 117,000 | |
Service charges on deposit accounts | |||
Non-interest income | 3,728,000 | 3,556,000 | |
Prepaid third-party debit card incomes | |||
Non-interest income | 8,464,000 | 5,643,000 | |
Other service charges and fees | |||
Non-interest income | $ 1,477,000 | $ 1,366,000 |
DERIVATIVES - Derivative positi
DERIVATIVES - Derivative position (Details) - Derivatives designated as hedging instruments $ in Thousands | Dec. 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 | 770 |
Other assets | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount, derivative asset | 300,000 |
Fair value | 770 |
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 | 12 Months Ended |
Dec. 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 | $ 1,311 |