Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Document And Entity Information (Abstract) | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
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, par value $0.01 per share | |
Trading Symbol | MCB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,062,729 | |
Entity Central Index Key | 0001476034 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 36,438 | $ 26,780 |
Overnight deposits | 140,929 | 230,638 |
Total cash and cash equivalents | 177,367 | 257,418 |
Investment securities available-for-sale, at fair value | 429,850 | 445,747 |
Investment securities held-to-maturity (estimated fair value of $396.3 million and $437.3 million at September 30, 2023 and December 31, 2022, respectively) | 478,886 | 510,425 |
Equity investment securities, at fair value | 2,015 | 2,048 |
Total securities | 910,751 | 958,220 |
Other Investments | 35,015 | 22,110 |
Loans | 5,354,487 | 4,840,523 |
Allowance for credit losses | (52,298) | (44,876) |
Net loans | 5,302,189 | 4,795,647 |
Receivable from global payments business, net | 79,892 | 85,605 |
Other assets | 178,145 | 148,337 |
Total assets | 6,683,359 | 6,267,337 |
Deposits | ||
Noninterest-bearing demand deposits | 1,746,626 | 2,422,151 |
Interest-bearing deposits | 3,774,963 | 2,855,761 |
Total deposits | 5,521,589 | 5,277,912 |
Federal funds purchased | 150,000 | |
Federal Home Loan Bank of New York advances | 355,000 | 100,000 |
Trust preferred securities | 20,620 | 20,620 |
Secured borrowings | 7,621 | 7,725 |
Prepaid third-party debit cardholder balances | 10,297 | 10,579 |
Other liabilities | 133,322 | 124,604 |
Total liabilities | 6,048,449 | 5,691,440 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 25,000,000 shares authorized, 11,062,729 and 10,949,965 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 110 | 109 |
Additional paid in capital | 393,544 | 389,276 |
Retained earnings | 301,407 | 240,810 |
Accumulated other comprehensive income (loss), net of tax | (60,151) | (54,298) |
Total stockholders' equity | 634,910 | 575,897 |
Total liabilities and stockholders' equity | $ 6,683,359 | $ 6,267,337 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) | ||
Securities held to maturity | $ 396.3 | $ 437.3 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 11,062,729 | 10,949,965 |
Common stock, shares outstanding | 11,062,729 | 10,949,965 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest and dividend income | ||||
Loans, including fees | $ 90,666 | $ 60,570 | $ 247,142 | $ 159,291 |
Securities | 4,686 | 4,126 | 13,864 | 11,224 |
Overnight deposits | 1,783 | 5,114 | 7,353 | 9,023 |
Other interest and dividends | 762 | 247 | 1,779 | 647 |
Total interest income | 97,897 | 70,057 | 270,138 | 180,185 |
Interest expense | ||||
Deposits | 36,234 | 6,505 | 86,010 | 13,836 |
Borrowed funds | 7,710 | 17,197 | ||
Trust preferred securities | 396 | 227 | 1,089 | 485 |
Subordinated debt | 605 | |||
Total interest expense | 44,340 | 6,732 | 104,296 | 14,926 |
Net interest income | 53,557 | 63,325 | 165,842 | 165,259 |
Provision for credit losses | 791 | 2,007 | 5,742 | 7,807 |
Net interest income after provision for credit losses | 52,766 | 61,318 | 160,100 | 157,452 |
Non-interest income | ||||
Non-interest income | 6,577 | 5,908 | 21,413 | 20,512 |
Other income | 803 | 274 | 2,114 | 956 |
Total non-interest income | 6,513 | 5,818 | 21,342 | 20,243 |
Non-interest expense | ||||
Compensation and benefits | 17,208 | 14,568 | 48,751 | 41,404 |
Bank premises and equipment | 2,396 | 2,228 | 7,027 | 6,608 |
Professional fees | 3,873 | 6,086 | 13,033 | 9,252 |
Technology costs | 1,171 | 984 | 3,966 | 3,527 |
Licensing fees | 3,504 | 2,823 | 9,180 | 7,803 |
FDIC assessments | 1,984 | 1,110 | 6,438 | 3,595 |
Regulatory settlement reserve | (3,021) | (5,521) | ||
Other expenses | 3,809 | 3,391 | 11,517 | 9,889 |
Total non-interest expense | 30,924 | 31,190 | 94,391 | 82,078 |
Net income before income tax expense | 28,355 | 35,946 | 87,051 | 95,617 |
Income tax expense | 6,292 | 10,991 | 24,351 | 28,452 |
Net income | $ 22,063 | $ 24,955 | $ 62,700 | $ 67,165 |
Earnings per common share | ||||
Basic earnings (in dollars per share) | $ 1.99 | $ 2.28 | $ 5.64 | $ 6.13 |
Diluted earnings (in dollars per share) | $ 1.97 | $ 2.23 | $ 5.61 | $ 5.98 |
Service charges on deposit accounts | ||||
Non-interest income | ||||
Non-interest income | $ 1,463 | $ 1,445 | $ 4,400 | $ 4,289 |
Revenue, Product and Service [Extensible List] | Service charges on deposit accounts | Service charges on deposit accounts | Service charges on deposit accounts | Service charges on deposit accounts |
Global Payments Group revenue | ||||
Non-interest income | ||||
Non-interest income | $ 4,247 | $ 4,099 | $ 14,828 | $ 14,998 |
Revenue, Product and Service [Extensible List] | Global Payments Group revenue | Global Payments Group revenue | Global Payments Group revenue | Global Payments Group revenue |
Other service charges and fees | ||||
Non-interest income | ||||
Non-interest income | $ 867 | $ 364 | $ 2,185 | $ 1,225 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | ||||
Net Income | $ 22,063 | $ 24,955 | $ 62,700 | $ 67,165 |
Other comprehensive income: | ||||
Unrealized gain (loss) arising during the period | (12,828) | (27,240) | (11,328) | (77,668) |
Tax effect | 3,920 | 8,369 | 3,464 | 23,770 |
Net of tax | (8,908) | (18,871) | (7,864) | (53,898) |
Cash flow hedges: | ||||
Unrealized gain (loss) arising during the period | 734 | 508 | 6,505 | 11,704 |
Reclassification adjustment for gains included in net income | (1,200) | (782) | (3,653) | (782) |
Tax effect | 144 | 84 | (841) | (3,348) |
Net of tax | (322) | (190) | 2,011 | 7,574 |
Total other comprehensive income (loss) | (9,230) | (19,061) | (5,853) | (46,324) |
Comprehensive Income (Loss) | $ 12,833 | $ 5,894 | $ 56,847 | $ 20,841 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | AOCI (Loss), Net | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balance at Dec. 31, 2021 | $ 109 | $ 382,999 | $ 181,385 | $ (7,504) | $ 556,989 | ||
Balance (in shares) at Dec. 31, 2021 | 10,920,569 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock compensation plans (in shares) | 23,487 | ||||||
Employee and non-employee stock-based compensation | 5,598 | 5,598 | |||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting | (1,191) | (1,191) | |||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting (in shares) | (12,359) | ||||||
Net Income | 67,165 | 67,165 | |||||
Other comprehensive income (loss) | (46,324) | (46,324) | |||||
Balance at Sep. 30, 2022 | $ 109 | 387,406 | 248,550 | (53,828) | 582,237 | ||
Balance (in shares) at Sep. 30, 2022 | 10,931,697 | ||||||
Balance at Jun. 30, 2022 | $ 109 | 385,369 | 223,595 | (34,767) | 574,306 | ||
Balance (in shares) at Jun. 30, 2022 | 10,931,697 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Employee and non-employee stock-based compensation | 2,037 | 2,037 | |||||
Net Income | 24,955 | 24,955 | |||||
Other comprehensive income (loss) | (19,061) | (19,061) | |||||
Balance at Sep. 30, 2022 | $ 109 | 387,406 | 248,550 | (53,828) | 582,237 | ||
Balance (in shares) at Sep. 30, 2022 | 10,931,697 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of changes in accounting principle | 240,810 | ||||||
Balance at Dec. 31, 2022 | $ 109 | 389,276 | 240,810 | (54,298) | 575,897 | ||
Balance (in shares) at Dec. 31, 2022 | 10,949,965 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock compensation plans | $ 3 | 3 | |||||
Issuance of common stock under stock compensation plans (in shares) | 285,190 | ||||||
Employee and non-employee stock-based compensation | 7,438 | 7,438 | |||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting | $ (2) | (3,170) | (3,172) | ||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting (in shares) | (172,426) | ||||||
Net Income | 62,700 | 62,700 | |||||
Other comprehensive income (loss) | (5,853) | (5,853) | |||||
Balance at Sep. 30, 2023 | $ 110 | 393,544 | $ (2,103) | 301,407 | (60,151) | $ (2,103) | 634,910 |
Balance (in shares) at Sep. 30, 2023 | 11,062,729 | ||||||
Balance at Jun. 30, 2023 | $ 110 | 392,742 | 279,344 | (50,921) | 621,275 | ||
Balance (in shares) at Jun. 30, 2023 | 10,991,074 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock compensation plans | $ 2 | 2 | |||||
Issuance of common stock under stock compensation plans (in shares) | 220,200 | ||||||
Employee and non-employee stock-based compensation | 2,636 | 2,636 | |||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting | $ (2) | (1,834) | (1,836) | ||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting (in shares) | (148,545) | ||||||
Net Income | 22,063 | 22,063 | |||||
Other comprehensive income (loss) | (9,230) | (9,230) | |||||
Balance at Sep. 30, 2023 | $ 110 | $ 393,544 | $ (2,103) | $ 301,407 | $ (60,151) | $ (2,103) | 634,910 |
Balance (in shares) at Sep. 30, 2023 | 11,062,729 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of changes in accounting principle | $ 301,407 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 62,700 | $ 67,165 |
Adjustments to reconcile net income to net cash: | ||
Net depreciation amortization and accretion | 2,071 | 4,887 |
Provision for credit losses | 5,742 | 7,807 |
Stock-based compensation | 7,438 | 5,598 |
Net change in deferred loan fees | 2,760 | 3,925 |
Dividends earned on CRA fund | (38) | (23) |
Unrealized (gain) loss on equity securities | 71 | 269 |
Net change in: | ||
Receivable from global payments, net | 5,713 | (35,593) |
Third-party debit cardholder balances | (282) | 548 |
Other assets | (22,681) | 5,598 |
Other liabilities | 9,679 | 14,217 |
Net cash provided by (used in) operating activities | 73,173 | 74,398 |
Cash flows from investing activities | ||
Loan originations, purchases and payments, net | (516,724) | (889,295) |
Redemptions of FRB and FHLB Stock | 136,551 | 2 |
Purchases of FRB and FHLB Stock | (149,456) | (5,488) |
Purchase of securities available-for-sale | (27,864) | |
Purchase of securities held-for-investment | (24,595) | (173,625) |
Proceeds from paydowns and maturities of securities available-for-sale | 32,292 | 64,812 |
Proceeds from paydowns and maturities of securities held-to-maturity | 56,080 | 33,855 |
Purchase of premises and equipment, net | (4,911) | (19,730) |
Net cash provided by (used in) investing activities | (498,627) | (989,469) |
Cash flows from financing activities | ||
Proceeds from issuance of federal funds purchased | (150,000) | |
Proceeds from (repayments of) FHLB advances, net | 255,000 | |
Redemption of common stock for tax withholdings for restricted stock vesting | (3,170) | (1,191) |
Redemption of subordinated debt | (24,712) | |
Proceeds from (repayments of) secured borrowings, net | (104) | (5,549) |
Net increase (decrease) in deposits | 243,677 | (704,049) |
Net cash provided by (used in) financing activities | 345,403 | (735,501) |
Increase (decrease) in cash and cash equivalents | (80,051) | (1,650,572) |
Cash and cash equivalents at the beginning of the period | 257,418 | 2,359,350 |
Cash and cash equivalents at the end of the period | 177,367 | 708,778 |
Cash paid for: | ||
Interest | 103,813 | 15,267 |
Income Taxes | $ 34,522 | $ 28,638 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2023 | |
ORGANIZATION | |
ORGANIZATION | N OTE 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 Company’s primary market is the New York metropolitan area. The Company provides a broad range of business, commercial and retail banking products and services to small businesses, middle-market enterprises, public entities and affluent individuals. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-Q. The Company’s primary lending products are CRE loans (including multi-family loans) and C&I 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 the operations of businesses. The Company’s primary deposit products are checking, savings, and term deposit accounts, all of which are insured by the FDIC up to the maximum amounts allowed by law. In addition to traditional commercial banking products, the Company offers corporate cash management and retail banking services and, through its Global Payments Group (“global payments business”), provides services to non-bank financial service companies, including serving as an issuing bank for third-party debit card programs, as well as providing other financial infrastructure, including cash settlement and custodian deposit services. The Company and the Bank are subject to the regulations of certain state and federal agencies and, accordingly, are periodically examined by those regulatory authorities. The Company’s business is affected by state and federal legislation and regulations. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 2 — BASIS OF PRESENTATION The accounting and reporting policies of the Company conform with GAAP and predominant practices within the U.S. banking industry. The Unaudited Consolidated Financial Statements (“unaudited financial statements”) include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated. The unaudited financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q, Article 8 of Regulation S-X and predominant practices within the U.S. banking industry. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The unaudited financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim unaudited financial statements in conformity with GAAP, management has made estimates and assumptions based on available information. These estimates and assumptions 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, and actual results could differ from those estimated. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, inflation and its related effects and changes in the financial condition of borrowers. Some items in the prior year financial statements may have been reclassified to conform to the current presentation. Reclassification had no effect on prior year net income or stockholders’ equity. The results of operations for the three and nine months ended September 30, 2023 and 2022 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or for any other period. The unaudited financial statements presented in this report should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the SEC. Loans and the Allowance for Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (“ASC 326”), which requires the measurement of all expected credit losses for financial assets held at amortized cost to be based on historical experience, current condition, and reasonable and supportable forecasts. The Company adopted this guidance effective January 1, 2023 and recorded a cumulative effect adjustment that increased the allowance for credit losses for loans and loan commitments by $3.0 million, increased deferred tax assets by $777,000 and decreased retained earnings by $2.1 million, net of tax. The ACL for loans is measured on the loan’s amortized cost basis, excluding interest receivable, and is initially recognized upon origination or purchase of the loans, and subsequently remeasured on a recurring basis. The ACL is recognized as a contra-asset, and credit loss expense is recorded as a provision for credit losses in the consolidated statements of operation. Loan losses are charged-off against the ACL when management believes the loan is uncollectible. Subsequent recoveries, if any, are credited to the ACL. Loans are normally placed on nonaccrual status if it is probable that the Company will be unable to collect the full payment of principal and interest when due according to the contractual terms of the loan agreement, or the loan is past due for a period of 90 days or more unless the obligation is well-secured and is in the process of collection. The Company generally does not recognize an ACL on accrued interest receivables, consistent with its policy to reverse interest income when interest is 90 days or more past due. The Company also records an ACL on unfunded loan commitments, which is based on the same assumptions as funded loans and also considers the probability of funding. The ACL is recognized as a liability, and credit loss expense is recorded as a provision for unfunded loan commitments within the provision for credit losses in the consolidated statements of operation. Upon funding of the loan, any related ACL previously recorded on the unfunded amount is reversed and an ACL is subsequently recognized on the outstanding loan. To calculate the ACL for loans and loan commitments collectively evaluated, the Company uses models developed by a third party. The CRE, C&I, and Consumer lifetime loss rate models calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default considers the current unpaid balance, prepayment assumptions, and expected utilization assumptions. Key assumptions used in the models include portfolio segmentation, prepayments, risk rating, a peer scalar, and the expected utilization of unfunded commitments among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated, and loss rates are subsequently applied to the pools as the loans have similar characteristics. Prepayment assumptions, if applicable, are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. The models employ mean reversion techniques to predict credit losses for loans that are expected to mature beyond the forecast period. To account for economic uncertainty, the Company uses multiple economic scenarios provided by the models in determining the ACL. The forecasts include various projections based on variables such as, Gross Domestic Product, interest rates, property price indices, and employment measures, among others. The forecasts are probability-weighted based on available information at the time the calculation is conducted. Scenario weightings and model parameters are reviewed for each calculation and are subject to change. The CRE and CRE lifetime loss rate models were developed using the historical loss experience of all banks in the model’s developmental dataset. Banks in the model’s developmental dataset may have different loss experiences due to geography and portfolio as well as operational and underwriting procedures that vary from those of the Company, and therefore, the Company calibrates expected losses using a peer scalar function provided by the models. The peer scalar was calculated by examining the loss rates of peer banks that have similar asset bases and that operate in similar markets as the Company and comparing these peer group loss rates to the model results. The Company also considers qualitative adjustments to expected credit loss estimates for information not already captured in the quantitative loss estimation models. Qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Qualitative loss factors are based on the Company’s judgment of market, industry or business specific data, changes in loan composition, performance trends, regulatory changes, uncertainty of macroeconomic forecasts, and other asset specific risk characteristics. When loans do not share risk characteristics with other financial assets they are evaluated individually. Management applies its normal loan review procedures in making these judgments. Individually evaluated loans consist of nonaccrual loans and loans that have been modified due to financial difficulty. In determining the ACL, the Company generally applies a discounted cash flow method for instruments that are individually assessed. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable and where the borrower is experiencing financial difficulty, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. Fair value is generally calculated based on the value of the underlying collateral less an appraisal discount and the estimated cost to sell. Prior to the adoption of ASU No. 2016-13 Prior to the adoption of ASU No. 2016-13, the ALLL was maintained at an amount management deemed adequate to cover probable incurred credit losses (the “incurred loss method”). The allowance for non-impaired loans was based on historical loss experience adjusted for current factors. The historical loss experience was determined by portfolio segment and was based on the actual loss history experienced by the Company over a rolling two-year period. This actual loss experience was supplemented with other qualitative and economic factors based on the risks present for each portfolio segment. These qualitative and economic factors included economic and business conditions, the nature and volume of the portfolio, and lending terms and volume and severity of past due loans. A loan was considered to be impaired when it was probable that the Company would be unable to collect all principal and interest amounts according to the contractual terms of the loan agreement. Management applied its normal loan review procedures in making these judgments. Impaired loans include individually classified non-accrual loans and TDRs. Impairment was determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For loans that were collateral dependent, the fair value of the collateral was used to determine the fair value of the loan. The fair value of the collateral was determined based on recent appraised values. The fair value of the collateral or present value of expected cash flows was compared to the carrying value to determine if any write-down or specific loan loss allowance allocation was required. Loan Modifications In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (ASU 326): Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminated the accounting guidance for TDRs by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The Company adopted ASU 2022-02 effective January 1, 2023 and the impact was immaterial. Prior to the adoption of ASU 2022-02, when a loan was modified and concessions were 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 was known as a TDR. TDRs were separately identified for impairment disclosures and were measured at the present value of estimated future cash flows using the loan’s effective rate at inception. Securities and the Allowance for Credit Losses Effective January 1, 2023, the Company estimates and recognizes an ACL for HTM debt securities pursuant to ASU No. 2016-13. The Company has a zero loss expectation for its HTM securities portfolio, except for U.S. State and Municipal securities, and therefore it is not required to estimate an ACL related to these securities. For HTM securities that do not have a zero loss expectation, the ACL is based on the security’s amortized cost, excluding interest receivable, and represents the portion of the amortized cost that the Company does not expect to collect over the life of the security. The ACL is determined using average industry credit ratings and historical loss experience, and is initially recognized upon acquisition of the securities, and subsequently remeasured on a recurring basis. The Company evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit impairment. In performing an assessment of whether any decline in fair value is due to a credit loss, the Company considers the extent to which the fair value is less than the amortized cost, changes in credit ratings, any adverse economic conditions, as well as all relevant information at the individual security level, such as credit deterioration of the issuer, explicit or implicit guarantees by the federal government or collateral underlying the security. If it is determined that the decline in fair value was due to credit losses, an ACL is recorded, limited to the amount the fair value is less than the amortized cost basis. The non-credit related decrease in the fair value, such as a decline due to changes in market interest rates, is recorded in other comprehensive income, net of tax. The Company recognizes a credit impairment if the Company has the intent to sell the security, or it is more likely than not that the Bank will be required to sell the security before recovery of its amortized cost. Prior to the adoption of ASU No. 2016-13 Management evaluated AFS and HTM debt securities for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warranted such an evaluation. For securities in an unrealized loss position, management considered the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assessed whether it intended to sell, or it is more likely than not that it would 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 was recognized as an impairment through earnings. For securities that did not meet the aforementioned criteria, the amount of impairment would be 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. |
SUMMARY OF RECENT ACCOUNTING PR
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2023 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 — SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 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 ASU were effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications at the instrument level 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. In January 2021 the FASB issued ASU 2021-01. The amendments in this ASU clarify that certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in ASC 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (ASC 848): Deferral of Sunset Date of Topic 848. ASU 2022-06 defers the sunset date of ASC 848 from December 31, 2022, to December 31, 2024 because the current relief in ASC 848 did not cover the June 30, 2023 cessation date for the overnight 1-, 3-, 6-, and 12-month tenors of USD LIBOR. The Company’s LIBOR-based instruments included loans and trust preferred security liabilities. The required transition has been implemented successfully and LIBOR is no longer offered to clients as a floating rate loan index. The trust preferred securities have transitioned to SOFR. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE 4 — INVESTMENT SECURITIES The following tables summarize the amortized cost and fair value of AFS and HTM debt securities and equity investments and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses recognized in earnings (in thousands): Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At September 30, 2023 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,997 $ — $ (8,325) $ 59,672 U.S. State and Municipal securities 11,535 — (2,577) 8,958 Residential MBS 410,188 — (85,326) 324,862 Commercial MBS 36,978 — (3,898) 33,080 Asset-backed securities 3,398 — (120) 3,278 Total securities available-for-sale $ 530,096 $ — $ (100,246) $ 429,850 Held-to-Maturity Securities: U.S. Treasury securities $ 29,884 $ — $ (1,965) $ 27,919 U.S. State and Municipal securities 15,631 — (2,951) 12,680 Residential MBS 425,276 — (76,294) 348,982 Commercial MBS 8,095 — (1,418) 6,677 Total securities held-to-maturity $ 478,886 $ — $ (82,628) $ 396,258 Equity Investments: CRA Mutual Fund $ 2,396 $ — $ (381) $ 2,015 Total equity investment securities $ 2,396 $ — $ (381) $ 2,015 Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2022 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,996 $ — $ (8,624) $ 59,372 U.S. State and Municipal securities 11,649 — (2,437) 9,212 Residential MBS 413,998 279 (75,729) 338,548 Commercial MBS 37,069 10 (2,229) 34,850 Asset-backed securities 3,953 — (188) 3,765 Total securities available-for-sale $ 534,665 $ 289 $ (89,207) $ 445,747 Held-to-Maturity Securities: U.S. Treasury securities $ 29,852 $ — $ (2,223) $ 27,629 U.S. State and Municipal securities 15,814 — (2,609) 13,205 Residential MBS 456,648 — (67,027) 389,621 Commercial MBS 8,111 — (1,276) 6,835 Total securities held-to-maturity $ 510,425 $ — $ (73,135) $ 437,290 Equity Investments: CRA Mutual Fund $ 2,358 $ — $ (310) $ 2,048 Total equity investment securities $ 2,358 $ — $ (310) $ 2,048 There were no proceeds from sales and calls of AFS securities for the three and nine months ended September 30, 2023 and 2022. The tables below summarize, by contractual maturity, the amortized cost and fair value of debt securities. The tables do not include the effect of principal repayments or scheduled principal amortization. Equity securities, primarily investments in mutual funds, have been excluded from the table. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties (in thousands): Held-to-Maturity Available-for-Sale At September 30, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 37,979 34,596 66,096 59,274 After 5 years through 10 years 1,177 1,064 22,658 20,591 After 10 years 439,730 360,598 441,342 349,985 Total Securities $ 478,886 $ 396,258 $ 530,096 $ 429,850 Held-to-Maturity Available-for-Sale At December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 29,852 27,630 54,736 48,959 After 5 years through 10 years 9,505 8,130 36,043 32,872 After 10 years 471,068 401,530 443,886 363,916 Total Securities $ 510,425 $ 437,290 $ 534,665 $ 445,747 At September 30, 2023 and December 31, 2022, the carrying value of securities pledged to support borrowing capacity from the FRB was $789.5 million and $25.0 million, respectively. At September 30, 2023, debt securities with unrealized losses 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 September 30, 2023 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: U.S. Government agency securities $ — $ — $ 59,672 $ (8,325) $ 59,672 $ (8,325) U.S. State and Municipal securities — — 8,958 (2,577) 8,958 (2,577) Residential MBS 37,991 (1,520) 286,871 (83,806) 324,862 (85,326) Commercial MBS 20,187 (1,118) 12,893 (2,780) 33,080 (3,898) Asset-backed securities — — 3,278 (120) 3,278 (120) Total securities available-for-sale $ 58,178 $ (2,638) $ 371,672 $ (97,608) $ 429,850 $ (100,246) Held-to-Maturity Securities: U.S. Treasury securities $ — $ — $ 27,919 $ (1,965) $ 27,919 $ (1,965) U.S. State and Municipal securities — — 12,680 (2,951) 12,680 (2,951) Residential MBS — — 348,982 (76,294) 348,982 (76,294) Commercial MBS — — 6,677 (1,418) 6,677 (1,418) Total securities held-to-maturity $ — $ — $ 396,258 $ (82,628) $ 396,258 $ (82,628) At September 30, 2023 and December 31, 2022, 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. At September 30, 2023 and December 31, 2022, all of the residential MBS and commercial MBS held by the Company were issued by U.S. Government-sponsored entities and agencies. Except for U.S. State and Municipal securities, the Company has a zero loss expectation for its HTM securities portfolio, and therefore has no ACL related to these securities. Obligations of U.S. State and Municipal securities were rated investment grade at September 30, 2023 and the associated ACL was immaterial. AFS securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. The unrealized losses on AFS securities are primarily due to the changes in market interest rates subsequent to purchase. In addition, the Company does not intend nor would it 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 ACL was recognized during the three months ended September 30, 2023. At December 31, 2022, debt securities with unrealized losses 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, 2022 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: U.S. Government agency securities $ — $ — $ 59,372 $ (8,624) $ 59,372 $ (8,624) U.S. State and Municipal securities 2,546 (527) 6,666 (1,910) 9,212 (2,437) Residential MBS 19,576 (1,654) 305,936 (74,075) 325,512 (75,729) Commercial MBS 13,406 (198) 11,386 (2,031) 24,792 (2,229) Asset-backed securities — — 3,765 (188) 3,765 (188) Total securities available-for-sale $ 35,528 $ (2,379) $ 387,125 $ (86,828) $ 422,653 $ (89,207) Held-to-Maturity Securities: U.S. Treasury securities $ 18,683 $ (1,365) $ 8,946 $ (858) $ 27,629 $ (2,223) U.S. State and Municipal securities 13,205 (2,609) — — 13,205 (2,609) Residential MBS 162,960 (19,625) 226,661 (47,402) 389,621 (67,027) Commercial MBS — — 6,835 (1,276) 6,835 (1,276) Total securities held-to-maturity $ 194,848 $ (23,599) $ 242,442 $ (49,536) $ 437,290 $ (73,135) Prior to the adoption of ASU No. 2016-13 on January 1, 2023, the Company evaluated these securities for OTTI. The Company did not consider these securities to be OTTI at December 31, 2022 since the decline in market value was attributable to changes in interest rates and not to changes in credit quality. In addition, the Company did not intend to sell and did not believe that it is more likely than not that it would 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 year ended December 31, 2022. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | NOTE 5 — LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans, net of deferred costs and fees, consist of the following (in thousands): At September 30, At December 31, 2023 2022 Real estate Commercial $ 3,712,664 $ 3,254,508 Construction 149,212 143,693 Multi-family 462,999 468,540 One-to four-family 50,205 53,207 Total real estate loans 4,375,080 3,919,948 Commercial and industrial 976,778 908,616 Consumer 18,361 24,931 Total loans 5,370,219 4,853,495 Deferred fees, net of origination costs (15,732) (12,972) Loans, net of deferred fees and costs 5,354,487 4,840,523 Allowance for credit losses (52,298) (44,876) Net loans $ 5,302,189 $ 4,795,647 Included in C&I loans at September 30, 2023 and December 31, 2022 were $64,000 and $97,000, respectively, of PPP loans. At September 30, 2023 and December 31, 2022, $3.3 billion and $2.4 billion of loans were pledged to support available borrowing capacity from the FHLB and FRB. The following tables present the activity in the ACL for funded loans by segment. The portfolio segments represent the categories that the Company uses to determine its ACL (in thousands): Commercial Commercial Multi One-to four- Three months ended September 30, 2023 Real Estate & Industrial Construction Family Family Consumer Total Allowance for credit losses: Beginning balance $ 34,621 $ 10,977 $ 1,600 $ 3,543 $ 362 $ 547 $ 51,650 Provision/(credit) for credit losses 404 119 169 (54) (11) 150 777 Loans charged-off — — — — — (129) (129) Recoveries — — — — — — — Total ending allowance balance $ 35,025 $ 11,096 $ 1,769 $ 3,489 $ 351 $ 568 $ 52,298 Commercial Commercial Multi One-to four- Three months ended September 30, 2022 Real Estate & Industrial Construction Family Family Consumer Total Allowance for credit losses: Beginning balance $ 25,945 $ 9,144 $ 2,587 $ 2,539 $ 102 $ 217 $ 40,534 Provision/(credit) for credit losses 1,019 954 (55) 103 (3) (11) 2,007 Loans charged-off — — — — — — — Recoveries — — — — — — — Total ending allowance balance $ 26,964 $ 10,098 $ 2,532 $ 2,642 $ 99 $ 206 $ 42,541 Commercial Commercial One-to four- Nine months ended September 30, 2023 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Beginning balance $ 29,496 $ 10,274 $ 1,983 $ 2,823 $ 105 $ 195 $ 44,876 Cumulative effect of changes in accounting principle 48 471 424 705 181 421 2,250 Provision/(credit) for credit losses 5,481 351 (638) (39) 65 225 5,445 Loans charged-off — — — — — (273) (273) Recoveries — — — — — — — Total ending allowance balance $ 35,025 $ 11,096 $ 1,769 $ 3,489 $ 351 $ 568 $ 52,298 Commercial Commercial One-to four- Nine months ended September 30, 2022 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Beginning balance $ 22,216 $ 7,708 $ 2,105 $ 2,156 $ 140 $ 404 $ 34,729 Provision/(credit) for credit losses 4,748 2,390 427 486 (41) (203) 7,807 Loans charged-off — — — — — — — Recoveries — — — — — 5 5 Total ending allowance balance $ 26,964 $ 10,098 $ 2,532 $ 2,642 $ 99 $ 206 $ 42,541 Net charge-offs for the three and nine months ended September 30, 2023 were $129,000 and $273,000, respectively. Net recoveries for the three and nine months ended September 30, 2022 were $0 and $5,000, respectively. The following tables present the activity in the ACL for unfunded loan commitments (in thousands): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Balance at the beginning of period $ 1,240 $ 180 $ 180 $ 180 Cumulative effect of changes in accounting principle — — 777 — Provision/(credit) for credit losses 14 — 297 — Total ending allowance balance $ 1,254 $ 180 $ 1,254 $ 180 The following tables present the balance in the ACL and the recorded investment in loans by portfolio segment based on allowance measurement methodology (in thousands): Commercial Commercial One-to four- At September 30, 2023 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Individually assessed $ — $ — $ — $ — $ — $ 137 $ 137 Collectively assessed 35,025 11,096 1,769 3,489 351 431 52,161 Total ending allowance balance $ 35,025 $ 11,096 $ 1,769 $ 3,489 $ 351 $ 568 $ 52,298 Loans: Individually assessed $ 41,005 $ 6,934 $ — $ — $ — $ 251 $ 48,190 Collectively assessed 3,671,659 969,844 149,212 462,999 50,205 18,110 5,322,029 Total ending loan balance $ 3,712,664 $ 976,778 $ 149,212 $ 462,999 $ 50,205 $ 18,361 $ 5,370,219 Commercial Commercial One-to four- At December 31, 2022 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Individually assessed $ — $ — $ — $ — $ — $ 24 $ 24 Collectively assessed 29,496 10,274 1,983 2,823 105 171 44,852 Total ending allowance balance $ 29,496 $ 10,274 $ 1,983 $ 2,823 $ 105 $ 195 $ 44,876 Loans: Individually assessed $ 26,740 $ — $ — $ — $ 899 $ 24 $ 27,663 Collectively assessed 3,227,768 908,616 143,693 468,540 52,308 24,907 4,825,832 Total ending loan balance $ 3,254,508 $ 908,616 $ 143,693 $ 468,540 $ 53,207 $ 24,931 $ 4,853,495 The following tables present the recorded investment in non-accrual loans and loans past due over 90 days and still accruing, by class of loans (in thousands): Nonaccrual Loans Past Due Without an Over 90 Days At September 30, 2023 Nonaccrual ACL Still Accruing Commercial real estate $ 24,000 $ 24,000 $ — Commercial & industrial 6,934 6,934 — Consumer 24 — — Total $ 30,958 $ 30,934 $ — Nonaccrual Loans Past Due Without an Over 90 Days At December 31, 2022 Nonaccrual ACL Still Accruing Consumer 24 — — Total $ 24 $ — $ — Interest income on nonaccrual loans recognized on a cash basis for the three and nine months ended September 30, 2023 and 2022 was immaterial. The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands): 90 30-59 60-89 Days and Total past Current At September 30, 2023 Days Days greater due loans Total Commercial real estate $ — $ — $ 24,000 $ 24,000 $ 3,688,664 $ 3,712,664 Commercial & industrial 31 23 6,934 6,988 969,790 976,778 Construction — — — — 149,212 149,212 Multi-family 27,285 11,200 — 38,485 424,514 462,999 One-to four-family — — — — 50,205 50,205 Consumer — 1 24 25 18,336 18,361 Total $ 27,316 $ 11,224 $ 30,958 $ 69,498 $ 5,300,721 $ 5,370,219 90 30-59 60-89 Days and Total past Current At December 31, 2022 Days Days greater due loans Total Commercial real estate $ — $ 24,000 $ — $ 24,000 $ 3,230,508 $ 3,254,508 Commercial & industrial 37 — — 37 908,579 908,616 Construction — — — — 143,693 143,693 Multi-family 8,000 — — 8,000 460,540 468,540 One-to four-family — — — — 53,207 53,207 Consumer 21 — 24 45 24,886 24,931 Total $ 8,058 $ 24,000 $ 24 $ 32,082 $ 4,821,413 $ 4,853,495 Credit Quality Indicators The Company 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 Company analyzes loans individually by classifying the loans as to credit risk ratings at least annually. For one-to-four family loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan. An analysis is performed on a quarterly basis for loans classified as special mention, substandard or doubtful. The Company uses the following definitions for risk ratings: Special Mention - Substandard - Doubtful - Loans not meeting the criteria above are considered to be pass-rated loans. The following table presents loan balances by credit quality indicator and year of origination at September 30, 2023 (in thousands): 2023 2022 2021 2020 2019 2018 & Prior Revolving Total CRE Pass $ 1,172,394 $ 1,348,513 $ 541,243 $ 162,438 $ 223,040 $ 113,821 $ 43,340 $ 3,604,789 Special Mention 13,058 38,867 14,637 308 — — — 66,870 Substandard — 24,000 — 17,005 — — — 41,005 Total $ 1,185,452 $ 1,411,380 $ 555,880 $ 179,751 $ 223,040 $ 113,821 $ 43,340 $ 3,712,664 Construction Pass $ 50,639 $ 50,248 $ 39,304 $ — $ — $ — $ 9,021 $ 149,212 Total $ 50,639 $ 50,248 $ 39,304 $ — $ — $ — $ 9,021 $ 149,212 Multi-family Pass $ 84,393 $ 131,186 $ 52,048 $ 23,774 $ 37,826 $ 79,087 $ 6,461 $ 414,775 Special Mention — 27,285 20,939 — — — — 48,224 Total $ 84,393 $ 158,471 $ 72,987 $ 23,774 $ 37,826 $ 79,087 $ 6,461 $ 462,999 One-to four-family Current $ — $ 4,163 $ — $ 10,365 $ 12,384 $ 23,293 $ — $ 50,205 Total $ — $ 4,163 $ — $ 10,365 $ 12,384 $ 23,293 $ — $ 50,205 Commercial and industrial Pass $ 161,702 $ 267,030 $ 97,771 $ 21,190 $ 15,764 $ 8,238 $ 325,877 $ 897,572 Special Mention 3,840 34,168 — 2,448 — — 31,816 72,272 Substandard 3,435 — — — — — 3,499 6,934 Total $ 168,977 $ 301,198 $ 97,771 $ 23,638 $ 15,764 $ 8,238 $ 361,192 $ 976,778 Consumer Current $ — $ — $ — $ — $ — $ 18,336 $ — $ 18,336 Past due — — — — — 25 — 25 Total $ — $ — $ — $ — $ — $ 18,361 $ — $ 18,361 There were $129,000 and $273,000 of Consumer loan charge-offs for the three and nine months ended September 30, 2023, respectively, which were originated in 2018 and prior. There were $41.0 million of substandard classified collateral dependent CRE loans at September 30, 2023. There were no loan modifications where the borrower was experiencing financial difficulty for the three and nine months ended September 30, 2023. For loans evaluated by credit risk ratings, the following table presents loan balances by credit quality indicator and by class of loans at December 31, 2022 (in thousands): Special Pass Mention Substandard Doubtful Total Commercial real estate $ 3,192,212 $ 35,881 $ 26,415 $ — $ 3,254,508 Commercial & industrial 876,867 31,749 — — 908,616 Construction 143,693 — — — 143,693 Multi-family 468,540 — — — 468,540 Total $ 4,681,312 $ 67,630 $ 26,415 $ — $ 4,775,357 The following tables present loans individually evaluated for impairment pursuant to the disclosure requirements prior to the adoption of ASU No. 2016-13 on January 1, 2023 (in thousands). The recorded investment in loans excludes accrued interest receivable and loan origination fees. At December 31, 2022 Allowance Unpaid for Loan Principal Recorded Losses Balance Investment Allocated With an allowance recorded: Consumer 24 24 24 Total $ 24 $ 24 $ 24 Without an allowance recorded: One-to four-family $ 1,176 $ 899 $ — CRE 27,984 26,740 — Total $ 29,160 $ 27,639 $ — Average Interest Recorded Income Three months ended September 30, 2022 Investment Recognized With an allowance recorded: Consumer 24 — Total $ 24 $ — Without an allowance recorded: One-to four-family $ 916 $ 9 C&I 28,486 273 Total $ 29,402 $ 282 Average Interest Recorded Income Nine months ended September 30, 2022 Investment Recognized With an allowance recorded: Consumer 93 — Total $ 93 $ — Without an allowance recorded: One-to four-family $ 816 $ 26 C&I 30,992 769 Total $ 31,808 $ 795 |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2023 | |
BORROWINGS | |
BORROWINGS | NOTE 6 — BORROWINGS Borrowings consisted of the following (in thousands): Interest expense At September 30, At December 31, Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 2023 2022 Federal funds purchased and securities sold under agreements to repurchase $ — $ 150,000 $ 2,160 $ — $ 5,112 $ — Federal Home Loan Bank of New York advances $ 355,000 $ 100,000 $ 5,580 $ — $ 12,114 $ — Federal funds purchased are generally overnight transactions and had a weighted average interest rate of 5.36% at September 30, 2023. The FHLBNY advances are generally overnight transactions and have a fixed interest rate of 5.31%. There were no securities sold under agreements to repurchase outstanding as of September 30, 2023 and December 31, 2022. During the first quarter of 2022, the Company redeemed $25.0 million of subordinated debt, plus accrued interest. The subordinated notes had a maturity date of March 15, 2027 and an interest rate of 6.25% per annum. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 7 — EARNINGS PER 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). Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Basic Net income per consolidated statements of income $ 22,063 $ 24,955 $ 62,700 $ 67,165 Less: Earnings allocated to participating securities (118) (68) (285) (152) Net income available to common stockholders $ 21,945 $ 24,887 $ 62,415 $ 67,013 Weighted average common shares outstanding including participating securities 11,098,563 10,961,697 11,110,491 10,952,452 Less: Weighted average participating securities (59,200) (30,000) (50,440) (24,741) Weighted average common shares outstanding 11,039,363 10,931,697 11,060,051 10,927,711 Basic earnings per common share $ 1.99 $ 2.28 $ 5.64 $ 6.13 Diluted Net income allocated to common stockholders $ 21,945 $ 24,887 $ 62,415 $ 67,013 Weighted average common shares outstanding for basic earnings per common share 11,039,363 10,931,697 11,060,051 10,927,711 Add: Dilutive effects of assumed exercise of stock options — 172,371 — 182,417 Add: Dilutive effects of assumed vesting of performance based restricted stock 76,599 45,636 63,297 53,237 Add: Dilutive effects of assumed vesting of restricted stock units 20,911 27,448 — 41,370 Average shares and dilutive potential common shares 11,136,873 11,177,152 11,123,348 11,204,735 Dilutive earnings per common share $ 1.97 $ 2.23 $ 5.61 $ 5.98 All restricted stock units were considered in computing diluted earnings per common share for the three months ended September 30, 2023. For the nine months ended September 30, 2023, 253,029 of restricted stock units, respectively, were not considered in the calculation of diluted earnings per share as their inclusion would be anti-dilutive. All performance restricted stock units were considered in computing diluted earnings per common share for the three and nine months ended September 30, 2023. There were no outstanding stock options at September 30, 2023. All stock options, performance restricted stock units, and restricted stock units were considered in computing diluted earnings per common share for the three and nine months ended September 30, 2022. |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 9 Months Ended |
Sep. 30, 2023 | |
STOCK COMPENSATION PLAN | |
STOCK COMPENSATION PLAN | NOTE 8 — STOCK COMPENSATION PLAN Equity Incentive Plan At September 30, 2023, the Company maintained three stock compensation plans, the 2022 Equity Incentive Plan (the “2022 EIP”), the 2019 Equity Incentive Plan (the “2019 EIP”) and the 2009 Equity Incentive Plan (the “2009 EIP”). The 2019 EIP expired on May 31, 2022 but has outstanding restricted stock awards and PRSUs subject to vesting schedules. The 2009 EIP has also expired. The 2022 EIP was approved on May 31, 2022 by stockholders of the Company. Under the 2022 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 ISOs and non-qualified stock options, is 174,918, subject to adjustment as set forth in the 2022 EIP, plus any awards that are forfeited under the 2019 EIP after March 15, 2022. Stock Options Under the terms of the 2022 EIP, a stock option cannot have an exercise price that is less than 100% of the fair market value of the shares covered by the stock option on the date of grant. In the case of an ISO granted to a 10% stockholder, the exercise price shall not be less than 110% of the fair market value of the shares covered by the stock option on the date of grant. In no event shall the exercise period exceed ten years from the date of grant of the option, except, in the case of an ISO granted to a 10% stockholder, the exercise period shall not exceed five years from the date of grant. The 2022 EIP contains a double trigger change in control feature, providing for an acceleration of vesting upon an involuntary termination of employment simultaneous with or following a change in control. The fair value of each stock option award was 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 were not significant. The expected term of options granted was based on historical data and represented the period of time that options granted were expected to be outstanding, which took into account that the options were not transferable. The risk-free interest rate for the expected term of the option was based on the U.S. Treasury yield curve in effect at the time of the grant. A summary of the status of the Company’s stock options and the changes during the year is presented below: Nine months ended September 30, 2023 Weighted Number of Average Options Exercise Price Outstanding, beginning of period 220,200 $ 18.00 Granted — — Exercised (220,200) 18.00 Cancelled/forfeited — — Outstanding, end of period — $ — Options vested and exercisable at end of period — $ — Weighted average remaining contractual life (years) — Weighted average intrinsic value $ — The intrinsic value of the exercises was $4.6 million for the three and nine months ended September 30, 2023. There were no exercises for the three and nine months ended September 30, 2022. There was no compensation cost related to stock options during the three and nine months ended September 30, 2023 and 2022. There was no unrecognized compensation cost related to stock options at September 30, 2023 and December 31, 2022. On August 15, 2016, the Company made a loan to an executive officer of the Company, which was subsequently extended on August 15, 2021, in the amount of $780,000 and having an interest rate of 2.1% per annum (the “2021 Loan”). On March 6, 2023, the Company purported to make a loan to this executive officer in the amount of $7.5 million with a fixed interest rate of 5.7% per annum (the “2023 Loan”), and the executive officer used substantially all of the proceeds of the 2023 Loan to pay the exercise price in connection with the exercise of certain existing stock options (the “Option Shares”) and satisfy withholding tax obligations in connection with such exercise (the “Option Exercise”). In connection with the preparation of the proxy statement for the Company’s 2023 annual meeting of stockholders, the Company’s management and Executive Committee of the Board of Directors, along with outside counsel, reevaluated the 2023 Loan as well as the 2021 Loan. As part of this reevaluation, the Company determined that the 2023 Loan and the 2021 Loan were likely impermissible under applicable law and/or regulations. As a result of these determinations, and to the extent that the 2023 Loan and the Option Exercise were not void as a matter of law, on April 26, 2023, the Company and the executive officer entered into a Rescission Agreement (the “Rescission Agreement”). The Rescission Agreement provided, among other things, (i) that the 2023 Loan and the Option Exercise would be rescinded and deemed null and void, (ii) that payments made in respect of the 2023 Loan, if any, would be returned, and (iii) that any dividends received by the executive officer in respect of the Option Shares have been returned or repaid to the Company. In connection with the entry into the Rescission Agreement, the executive officer repaid, in full, the 2021 Loan. The aggregate amount of extensions of credit to the Company’s directors, executive officers, principal stockholders and their associates was $0 and $780,000 at September 30, 2023 and December 31, 2022, respectively. In the third quarter of 2023, the executive officer exercised the 220,200 existing stock options on a net share settlement basis, resulting in the issuance of 71,655 shares of the Company’s common stock. Restricted Stock Awards and Restricted Stock Units The Company issued restricted stock awards and restricted stock units under the 2022 EIP, 2019 EIP and the 2009 EIP (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 2023 and 2022, 170,998 and 72,025 restricted stock grants were issued to certain key personnel, respectively. One-third In January 2023, 27,500 restricted shares were granted to members of the Board of Directors. These shares vest in January 2024. In January 2022, 11,126 restricted shares were granted to members of the Board of Directors. These shares vested in January 2023. Total expense for the awards granted to members of the Board of Directors was $388,000 and $1.2 million for the three and nine months ended September 30, 2023, respectively. Total expense for these awards was $297,000 and $892,000 for the three and nine months ended September 30, 2022, respectively. As of September 30, 2023 total unrecognized expense for these awards was $388,000. The following table summarizes the changes in the Company’s restricted stock grants: Nine months ended September 30, 2023 Weighted Average Number of Grant Date Shares Fair Value Outstanding, beginning of period 129,562 $ 86.01 Granted 198,498 56.04 Forfeited (14,838) 61.50 Vested (64,990) 84.28 Outstanding at end of period 248,232 $ 63.96 Performance-Based Stock Units During the second quarter of 2021, the Company established a long-term incentive award program under the 2019 EIP. Under the program, 90,000 PRSUs were awarded. During the second quarter of 2022, 20,800 PRSUs were forfeited and reissued pursuant to the 2022 EIP. The weighted average service inception date fair value of the outstanding awarded shares was $6.0 million. At the beginning of 2023 and 2022, 29,200 and 30,000 PRSUs, respectively, vested as all performance criteria were met. The remaining 30,800 PRSUs are scheduled to vest in February 2024, provided certain performance criteria are met in fiscal year 2023. All vested shares will not be delivered until the first quarter of 2024. Total compensation cost that has been charged against income for the PRSUs was $550,000 and $1.6 million for the three and nine months ended September 30, 2023, respectively. Total compensation cost that has been charged against income for the PRSUs was $481,000 and $1.4 million for the three and nine months ended September 30, 2022, respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 9 — FAIR VALUE OF FINANCIAL INSTRUMENTS The Company uses fair value measurements to record fair value adjustments to certain assets and derivative contracts, and to determine fair value disclosures. Other than derivative contracts, the Company did not have any liabilities that were measured at fair value at September 30, 2023 and December 31, 2022. AFS securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as certain loans where the carrying value is based on the fair value of the underlying collateral. These non-recurring fair value adjustments generally involve the write-down of individual assets due to impairment losses. Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own judgments about the assumptions that market participants would use in pricing an asset or liability. Assets and Liabilities Measured on a Recurring Basis Assets measured on a recurring basis are limited to the Company’s AFS securities portfolio, equity investments, and derivative contracts. 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 statements of operations. Outstanding derivative contracts designated as cash flow hedges are carried at estimated fair value with changes in fair value reported as accumulated other comprehensive income or loss in shareholders’ equity. Outstanding derivatives not designated as hedges are carried at estimated fair value with changes in fair value reported as non-interest income. The fair values for substantially all of these assets are obtained monthly from an independent nationally recognized pricing service. On a quarterly basis, the Company assesses the reasonableness of the fair values obtained for the AFS portfolio by reference to a second independent nationally recognized pricing service. Based on the nature of these securities, the Company’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 Company’s portfolio. Various modeling techniques are used to determine pricing for the Company’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 Company obtains the models, inputs and assumptions utilized by its pricing service and reviews them for reasonableness. Other than derivative contracts, the Company does not have any liabilities that were measured at fair value on a recurring basis. Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) At September 30, 2023 U.S. Government agency securities $ 59,672 $ — $ 59,672 $ — U.S. State and Municipal securities 8,958 — 8,958 — Residential mortgage securities 324,862 — 324,862 — Commercial mortgage securities 33,080 — 33,080 — Asset-backed securities 3,278 — 3,278 — CRA Mutual Fund 2,015 2,015 — — Derivative assets 6,560 — 6,560 — Derivative liabilities 55 — 55 — 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, 2022 U.S. Government agency securities $ 59,372 $ — $ 59,372 $ — U.S. State and Municipal securities 9,212 — 9,212 — Residential mortgage securities 338,548 — 338,548 — Commercial mortgage securities 34,850 — 34,850 — Asset-backed securities 3,765 — 3,765 — CRA Mutual Fund 2,048 2,048 — — Derivatives — — — — There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2023 and 2022. There were no material assets measured at fair value on a non-recurring basis at September 30, 2023 and December 31, 2022. Carrying amounts and estimated fair values of financial instruments carried at amortized cost 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 September 30, 2023 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 36,438 $ 36,438 $ — $ — $ 36,438 Overnight deposits 140,929 140,929 — — 140,929 Securities held-to-maturity 478,886 — 396,258 — 396,258 Loans, net 5,302,189 — — 5,178,993 5,178,993 Other investments FRB Stock 11,410 N/A N/A N/A N/A FHLB Stock 21,607 N/A N/A N/A N/A Disability Fund 1,500 — 1,500 — 1,500 Time deposits at banks 498 498 — — 498 Receivable from global payments business, net 79,892 — — 79,892 79,892 Accrued interest receivable 28,460 — 922 27,538 28,460 Financial Liabilities: Non-interest-bearing demand deposits $ 1,746,626 $ 1,746,626 $ — $ — $ 1,746,626 Money market and savings deposits 3,739,265 3,739,265 — — 3,739,265 Time deposits 35,698 — 35,115 — 35,115 Federal funds purchased — — — — — Federal Home Loan Bank of New York advances 355,000 — 355,000 — 355,000 Trust preferred securities payable 20,620 — — 19,999 19,999 Prepaid debit cardholder balances 10,297 — — 10,297 10,297 Accrued interest payable 1,211 166 637 408 1,211 Secured borrowings 7,621 — 7,621 — 7,621 Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At December 31, 2022 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 26,780 $ 26,780 $ — $ — $ 26,780 Overnight deposits 230,638 230,638 — — 230,638 Securities held-to-maturity 510,425 — 437,290 — 437,290 Loans, net 4,795,647 — — 4,737,007 4,737,007 Other investments FRB Stock 11,421 N/A N/A N/A N/A FHLB Stock 9,191 N/A N/A N/A N/A Disability Fund 1,000 — 1,000 — 1,000 Time deposits at banks 498 498 — — 498 Receivable from global payments business, net 85,605 — — 85,605 85,605 Accrued interest receivable 24,107 — 964 23,143 24,107 Financial Liabilities: Non-interest-bearing demand deposits $ 2,422,151 $ 2,422,151 $ — $ — $ 2,422,151 Money market and savings deposits 2,803,698 2,803,698 — — 2,803,698 Time deposits 52,063 — 51,058 — 51,058 Federal funds purchased 150,000 — 150,000 — 150,000 Federal Home Loan Bank of New York advances 100,000 — 100,000 — 100,000 Trust preferred securities payable 20,620 — — 19,953 19,953 Prepaid debit cardholder balances 10,579 — — 10,579 10,579 Accrued interest payable 728 112 293 323 728 Secured borrowings 7,725 — 7,725 — 7,725 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 10 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table shows the amounts reclassified out of AOCI for the sale and calls of AFS securities and realized gain on cash flow hedges (in thousands): Affected line item in Three months ended Nine months ended the Consolidated Statements September 30, September 30, of Operations 2023 2022 2023 2022 Realized gain on sale of AFS securities $ — $ — $ — $ — Gain on Sale of Securities Income tax (expense) benefit — — — — Income tax expense Total reclassifications, net of income tax $ — $ — $ — $ — Realized gain on cash flow hedges $ 1,200 $ 782 $ 3,653 $ 782 Licensing fees Income tax (expense) benefit (369) (240) (1,122) (240) Income tax expense Total reclassifications, net of income tax $ 831 $ 542 $ 2,531 $ 542 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 — COMMITMENTS AND CONTINGENCIES Financial instruments with off-balance-sheet risk The Company 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 Company’s exposure to credit loss in the event of non-performance by the counterparty to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The following off-balance-sheet financial instruments, whose contract amounts represent credit risk, are outstanding (in thousands): At September 30, 2023 At December 31, 2022 Fixed Variable Fixed Variable Rate Rate Rate Rate Unused commitments $ 64,001 $ 400,962 $ 40,685 $ 364,908 Standby and commercial letters of credit 60,158 — 53,947 — $ 124,159 $ 400,962 $ 94,632 $ 364,908 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 September 30, 2023, the Company’s fixed rate loan commitments had interest rates ranging from 3.0% to 9.5% and the Company’s variable rate loan commitments had interest rates ranging from 6.0% to 12.5%. At December 31, 2022, the Company’s fixed rate loan commitments had interest rates ranging from 3.0% to 8.5% and the Company’s variable rate loan commitments had interest rates ranging from 6.0% to 11.5%. The amount of collateral obtained, if any, by the Company 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 Company or other financial institutions and securities. The Company’s stand-by letters of credit amounted to $60.2 million and $53.9 million as of September 30, 2023 and December 31, 2022, respectively. The Company’s stand-by letters of credit are collateralized by interest-bearing accounts of $36.7 million and $28.7 million as of September 30, 2023 and December 31, 2022, respectively. Regulatory Proceedings There have been and continue to be ongoing investigations by governmental entities concerning a prepaid debit card product program that was offered by GPG. These include investigations involving the Company and the Bank by the Board of Governors of the FRB and certain state authorities, including the NYSDFS. During the early stages of the COVID-19 pandemic, third parties used this prepaid debit card product to establish unauthorized accounts and to receive unauthorized government benefits payments, including unemployment insurance benefits payments made pursuant to the Coronavirus Aid, Relief, and Economic Security Act from many states. The Company ceased accepting new accounts from this program manager in July 2020 and exited its relationship with this program manager in August 2020. The Company has cooperated and continues to cooperate in these investigations and continues to review this matter. The Bank has been in discussions with both the FRB and NYSDFS with respect to consensual resolutions of their investigations. The Bank entered into (i) an Order to Cease and Desist and Order of Assessment of a Civil Money Penalty Issued Upon Consent with the FRB (the “FRB Consent Order”), effective October 16, 2023, and (ii) a Consent Order with the NYSDFS (the “NYSDFS Consent Order”), effective October 18, 2023. The FRB Consent Order and NYSDFS Consent Order constitute separate consensual resolutions with each of the FRB and the NYSDFS with respect to their investigations, each of which is now closed as a result of such order. The FRB Consent Order provides for a civil money penalty of $14.5 million and requires the Bank’s board of directors to submit a plan to further strengthen board oversight of the management and operations of the GPG and the Bank to develop, among other things, a written plan to enhance the Bank’s customer identification program, a plan to improve the Bank’s customer due diligence program and a plan to enhance the Bank’s third party risk management program. The NYSDFS Consent Order provides for a civil money penalty of $15.0 million and requires the Bank to provide certain information regarding the Bank’s program to supervise third-party program managers and various status reports regarding certain compliance-related matters in connection with the Bank’s oversight of third-party program managers of the Bank’s prepaid debit card program. The Company was fully reserved with respect to the foregoing amounts payable to the FRB and NYSDFS through a regulatory settlement reserve recorded in the fourth quarter of 2022. Additional enforcement or other actions arising out of the prepaid debit card program in question, along with any other matters arising out of the foregoing program, could have a materially adverse effect on the Company and the Bank’s assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations. Since 2020, the Bank has been actively working to enhance its processes and procedures so as to more effectively and efficiently address the concerns that arose. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 12 — REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers that are in the scope of Accounting Standards Codification 606, Revenue from Contracts with Customers, Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Service charges on deposit accounts $ 1,463 $ 1,445 $ 4,400 $ 4,289 Global Payments Group revenue 4,247 4,099 14,828 14,998 Other service charges and fees 867 364 2,185 1,225 Total $ 6,577 $ 5,908 $ 21,413 $ 20,512 A description of the Company’s revenue streams accounted for under the accounting guidance is as follows: Service charges on deposit accounts The Company offers business and personal retail products and services, which include, but are not limited to, online banking, mobile banking, Automated Clearing House (“ACH”) transactions, and remote deposit capture. A standard deposit contract exists between the Company and all deposit customers. The Company earns fees from its deposit customers for transaction-based services (such as ATM use fees, stop payment charges, statement rendering, and ACH fees), account maintenance, and overdraft services. Transaction-based fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Global payment group revenue The Company offers corporate cash management and retail banking services and, through its global payments business, provides services to non-bank financial service companies. The Company earns initial set-up fees for these programs as well as fees for transactions processed. The Company receives transaction data at the end of each month for services rendered, at which time revenue is recognized. Additionally, service charges specific to GPG customers’ deposits are recognized within GPG revenue. Other service charges The primary component of other service charges relates to letter of credit fees and FX conversion fees. The Company outsources FX conversion for foreign currency transactions to correspondent banks. The Company 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 Company. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2023 | |
DERIVATIVES | |
DERIVATIVES | NOTE 13 — DERIVATIVES The Company enters into interest rate swap derivative contracts (“interest rate swaps”) as a part of its asset liability management strategy to help manage its interest rate risk position. At September 30, 2023, these interest rate swaps have a notional amount of $700.0 million and contractual maturities ranging from August 1, 2025 to September 23, 2025. The notional amount of the interest rate swaps does not represent the amount exchanged by the parties. The interest rate swaps were designated as cash flow hedges of certain deposit liabilities and borrowings of the Company. The hedges were determined to be highly effective during the three and nine months ended September 30, 2023. The Company expects the hedges to remain highly effective during the remaining term of the interest rate swap. In addition, the Company periodically enters into certain commercial loan interest rate swap agreements to provide commercial loan customers the ability to convert from variable to fixed interest rates. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to a swap agreement. This swap agreement effectively converts the customer’s variable rate loan into a fixed rate loan. The Company then enters into a corresponding swap agreement with a third party to offset its exposure on the variable and fixed components of the customer agreement. As the interest rate swap agreements with the customers and third parties are not designated as hedges, the instruments are marked to market in earnings. At September 30, 2023, the interest rate swaps have a notional amount of $69.0 million and a contractual maturity of August 15, 2028. In 2020, the Company entered into an interest rate cap derivative contract (“interest rate cap”) as a part of its asset liability management strategy to help manage its interest rate risk position. The interest rate cap had a notional amount of $300.0 million and a contractual maturity of March 1, 2025. The notional amount of the interest rate cap does not represent the amount exchanged by the parties. The amount exchanged was determined by reference to the notional amount and the other terms of the interest rate cap. The interest rate subject to the cap was 30-day LIBOR. The interest rate cap was designated as a cash flow hedge of certain deposit liabilities of the Company. The hedge was determined to be highly effective during 2022 until it was terminated in the third quarter of 2022. The unrecognized value of $12.7 million at termination will be released from Accumulated Other Comprehensive Income and recorded as a credit to Licensing fees expense through March 2025. The following tables reflect the derivatives recorded on the balance sheet (in thousands): Fair Value Notional Other Other Amount Assets Liabilities At September 30, 2023 Derivatives designated as hedges: Interest rate swaps related to customer deposits and borrowings $ 700,000 $ 6,505 $ — Derivatives not designated as hedges: Interest rate swaps $ 69,000 $ 55 $ 55 At December 31, 2022 Derivatives designated as hedges: Interest rate cap related to customer deposits $ — $ — $ — The effect of cash flow hedge accounting on accumulated other comprehensive income is as follows (in thousands): Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Interest rate swaps and caps related to customer deposits and borrowings Amount of gain (loss) recognized in OCI, net of tax $ 509 $ (190) $ 4,517 $ 7,574 Amount of gain (loss) reclassified from OCI into income $ 1,200 $ 782 $ 3,653 $ 782 Location of gain (loss) reclassified from OCI into income Licensing fees N/A Licensing fees N/A N/A - not applicable |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 14 ‒ SUBSEQUENT EVENTS None. |
SUMMARY OF RECENT ACCOUNTING _2
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
BASIS OF PRESENTATION | The accounting and reporting policies of the Company conform with GAAP and predominant practices within the U.S. banking industry. The Unaudited Consolidated Financial Statements (“unaudited financial statements”) include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated. The unaudited financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q, Article 8 of Regulation S-X and predominant practices within the U.S. banking industry. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The unaudited financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim unaudited financial statements in conformity with GAAP, management has made estimates and assumptions based on available information. These estimates and assumptions 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, and actual results could differ from those estimated. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, inflation and its related effects and changes in the financial condition of borrowers. Some items in the prior year financial statements may have been reclassified to conform to the current presentation. Reclassification had no effect on prior year net income or stockholders’ equity. The results of operations for the three and nine months ended September 30, 2023 and 2022 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or for any other period. The unaudited financial statements presented in this report should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the SEC. |
Loans and the Allowance for Credit Losses | Loans and the Allowance for Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (“ASC 326”), which requires the measurement of all expected credit losses for financial assets held at amortized cost to be based on historical experience, current condition, and reasonable and supportable forecasts. The Company adopted this guidance effective January 1, 2023 and recorded a cumulative effect adjustment that increased the allowance for credit losses for loans and loan commitments by $3.0 million, increased deferred tax assets by $777,000 and decreased retained earnings by $2.1 million, net of tax. The ACL for loans is measured on the loan’s amortized cost basis, excluding interest receivable, and is initially recognized upon origination or purchase of the loans, and subsequently remeasured on a recurring basis. The ACL is recognized as a contra-asset, and credit loss expense is recorded as a provision for credit losses in the consolidated statements of operation. Loan losses are charged-off against the ACL when management believes the loan is uncollectible. Subsequent recoveries, if any, are credited to the ACL. Loans are normally placed on nonaccrual status if it is probable that the Company will be unable to collect the full payment of principal and interest when due according to the contractual terms of the loan agreement, or the loan is past due for a period of 90 days or more unless the obligation is well-secured and is in the process of collection. The Company generally does not recognize an ACL on accrued interest receivables, consistent with its policy to reverse interest income when interest is 90 days or more past due. The Company also records an ACL on unfunded loan commitments, which is based on the same assumptions as funded loans and also considers the probability of funding. The ACL is recognized as a liability, and credit loss expense is recorded as a provision for unfunded loan commitments within the provision for credit losses in the consolidated statements of operation. Upon funding of the loan, any related ACL previously recorded on the unfunded amount is reversed and an ACL is subsequently recognized on the outstanding loan. To calculate the ACL for loans and loan commitments collectively evaluated, the Company uses models developed by a third party. The CRE, C&I, and Consumer lifetime loss rate models calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default considers the current unpaid balance, prepayment assumptions, and expected utilization assumptions. Key assumptions used in the models include portfolio segmentation, prepayments, risk rating, a peer scalar, and the expected utilization of unfunded commitments among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated, and loss rates are subsequently applied to the pools as the loans have similar characteristics. Prepayment assumptions, if applicable, are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. The models employ mean reversion techniques to predict credit losses for loans that are expected to mature beyond the forecast period. To account for economic uncertainty, the Company uses multiple economic scenarios provided by the models in determining the ACL. The forecasts include various projections based on variables such as, Gross Domestic Product, interest rates, property price indices, and employment measures, among others. The forecasts are probability-weighted based on available information at the time the calculation is conducted. Scenario weightings and model parameters are reviewed for each calculation and are subject to change. The CRE and CRE lifetime loss rate models were developed using the historical loss experience of all banks in the model’s developmental dataset. Banks in the model’s developmental dataset may have different loss experiences due to geography and portfolio as well as operational and underwriting procedures that vary from those of the Company, and therefore, the Company calibrates expected losses using a peer scalar function provided by the models. The peer scalar was calculated by examining the loss rates of peer banks that have similar asset bases and that operate in similar markets as the Company and comparing these peer group loss rates to the model results. The Company also considers qualitative adjustments to expected credit loss estimates for information not already captured in the quantitative loss estimation models. Qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Qualitative loss factors are based on the Company’s judgment of market, industry or business specific data, changes in loan composition, performance trends, regulatory changes, uncertainty of macroeconomic forecasts, and other asset specific risk characteristics. When loans do not share risk characteristics with other financial assets they are evaluated individually. Management applies its normal loan review procedures in making these judgments. Individually evaluated loans consist of nonaccrual loans and loans that have been modified due to financial difficulty. In determining the ACL, the Company generally applies a discounted cash flow method for instruments that are individually assessed. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable and where the borrower is experiencing financial difficulty, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. Fair value is generally calculated based on the value of the underlying collateral less an appraisal discount and the estimated cost to sell. Prior to the adoption of ASU No. 2016-13 Prior to the adoption of ASU No. 2016-13, the ALLL was maintained at an amount management deemed adequate to cover probable incurred credit losses (the “incurred loss method”). The allowance for non-impaired loans was based on historical loss experience adjusted for current factors. The historical loss experience was determined by portfolio segment and was based on the actual loss history experienced by the Company over a rolling two-year period. This actual loss experience was supplemented with other qualitative and economic factors based on the risks present for each portfolio segment. These qualitative and economic factors included economic and business conditions, the nature and volume of the portfolio, and lending terms and volume and severity of past due loans. A loan was considered to be impaired when it was probable that the Company would be unable to collect all principal and interest amounts according to the contractual terms of the loan agreement. Management applied its normal loan review procedures in making these judgments. Impaired loans include individually classified non-accrual loans and TDRs. Impairment was determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For loans that were collateral dependent, the fair value of the collateral was used to determine the fair value of the loan. The fair value of the collateral was determined based on recent appraised values. The fair value of the collateral or present value of expected cash flows was compared to the carrying value to determine if any write-down or specific loan loss allowance allocation was required. Loan Modifications In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (ASU 326): Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminated the accounting guidance for TDRs by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The Company adopted ASU 2022-02 effective January 1, 2023 and the impact was immaterial. Prior to the adoption of ASU 2022-02, when a loan was modified and concessions were 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 was known as a TDR. TDRs were separately identified for impairment disclosures and were measured at the present value of estimated future cash flows using the loan’s effective rate at inception. Securities and the Allowance for Credit Losses Effective January 1, 2023, the Company estimates and recognizes an ACL for HTM debt securities pursuant to ASU No. 2016-13. The Company has a zero loss expectation for its HTM securities portfolio, except for U.S. State and Municipal securities, and therefore it is not required to estimate an ACL related to these securities. For HTM securities that do not have a zero loss expectation, the ACL is based on the security’s amortized cost, excluding interest receivable, and represents the portion of the amortized cost that the Company does not expect to collect over the life of the security. The ACL is determined using average industry credit ratings and historical loss experience, and is initially recognized upon acquisition of the securities, and subsequently remeasured on a recurring basis. The Company evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit impairment. In performing an assessment of whether any decline in fair value is due to a credit loss, the Company considers the extent to which the fair value is less than the amortized cost, changes in credit ratings, any adverse economic conditions, as well as all relevant information at the individual security level, such as credit deterioration of the issuer, explicit or implicit guarantees by the federal government or collateral underlying the security. If it is determined that the decline in fair value was due to credit losses, an ACL is recorded, limited to the amount the fair value is less than the amortized cost basis. The non-credit related decrease in the fair value, such as a decline due to changes in market interest rates, is recorded in other comprehensive income, net of tax. The Company recognizes a credit impairment if the Company has the intent to sell the security, or it is more likely than not that the Bank will be required to sell the security before recovery of its amortized cost. Prior to the adoption of ASU No. 2016-13 Management evaluated AFS and HTM debt securities for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warranted such an evaluation. For securities in an unrealized loss position, management considered the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assessed whether it intended to sell, or it is more likely than not that it would 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 was recognized as an impairment through earnings. For securities that did not meet the aforementioned criteria, the amount of impairment would be 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. |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 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 ASU were effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications at the instrument level 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. In January 2021 the FASB issued ASU 2021-01. The amendments in this ASU clarify that certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in ASC 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (ASC 848): Deferral of Sunset Date of Topic 848. ASU 2022-06 defers the sunset date of ASC 848 from December 31, 2022, to December 31, 2024 because the current relief in ASC 848 did not cover the June 30, 2023 cessation date for the overnight 1-, 3-, 6-, and 12-month tenors of USD LIBOR. The Company’s LIBOR-based instruments included loans and trust preferred security liabilities. The required transition has been implemented successfully and LIBOR is no longer offered to clients as a floating rate loan index. The trust preferred securities have transitioned to SOFR. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
INVESTMENT SECURITIES | |
Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity | The following tables summarize the amortized cost and fair value of AFS and HTM debt securities and equity investments and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses recognized in earnings (in thousands): Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At September 30, 2023 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,997 $ — $ (8,325) $ 59,672 U.S. State and Municipal securities 11,535 — (2,577) 8,958 Residential MBS 410,188 — (85,326) 324,862 Commercial MBS 36,978 — (3,898) 33,080 Asset-backed securities 3,398 — (120) 3,278 Total securities available-for-sale $ 530,096 $ — $ (100,246) $ 429,850 Held-to-Maturity Securities: U.S. Treasury securities $ 29,884 $ — $ (1,965) $ 27,919 U.S. State and Municipal securities 15,631 — (2,951) 12,680 Residential MBS 425,276 — (76,294) 348,982 Commercial MBS 8,095 — (1,418) 6,677 Total securities held-to-maturity $ 478,886 $ — $ (82,628) $ 396,258 Equity Investments: CRA Mutual Fund $ 2,396 $ — $ (381) $ 2,015 Total equity investment securities $ 2,396 $ — $ (381) $ 2,015 Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2022 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,996 $ — $ (8,624) $ 59,372 U.S. State and Municipal securities 11,649 — (2,437) 9,212 Residential MBS 413,998 279 (75,729) 338,548 Commercial MBS 37,069 10 (2,229) 34,850 Asset-backed securities 3,953 — (188) 3,765 Total securities available-for-sale $ 534,665 $ 289 $ (89,207) $ 445,747 Held-to-Maturity Securities: U.S. Treasury securities $ 29,852 $ — $ (2,223) $ 27,629 U.S. State and Municipal securities 15,814 — (2,609) 13,205 Residential MBS 456,648 — (67,027) 389,621 Commercial MBS 8,111 — (1,276) 6,835 Total securities held-to-maturity $ 510,425 $ — $ (73,135) $ 437,290 Equity Investments: CRA Mutual Fund $ 2,358 $ — $ (310) $ 2,048 Total equity investment securities $ 2,358 $ — $ (310) $ 2,048 |
Schedule of amortized cost and fair value of debt securities classified by contractual maturity | The tables below summarize, by contractual maturity, the amortized cost and fair value of debt securities. The tables do not include the effect of principal repayments or scheduled principal amortization. Equity securities, primarily investments in mutual funds, have been excluded from the table. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties (in thousands): Held-to-Maturity Available-for-Sale At September 30, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 37,979 34,596 66,096 59,274 After 5 years through 10 years 1,177 1,064 22,658 20,591 After 10 years 439,730 360,598 441,342 349,985 Total Securities $ 478,886 $ 396,258 $ 530,096 $ 429,850 Held-to-Maturity Available-for-Sale At December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 29,852 27,630 54,736 48,959 After 5 years through 10 years 9,505 8,130 36,043 32,872 After 10 years 471,068 401,530 443,886 363,916 Total Securities $ 510,425 $ 437,290 $ 534,665 $ 445,747 |
Schedule of securities with unrealized/unrecognized losses | At September 30, 2023, debt securities with unrealized losses 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 September 30, 2023 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: U.S. Government agency securities $ — $ — $ 59,672 $ (8,325) $ 59,672 $ (8,325) U.S. State and Municipal securities — — 8,958 (2,577) 8,958 (2,577) Residential MBS 37,991 (1,520) 286,871 (83,806) 324,862 (85,326) Commercial MBS 20,187 (1,118) 12,893 (2,780) 33,080 (3,898) Asset-backed securities — — 3,278 (120) 3,278 (120) Total securities available-for-sale $ 58,178 $ (2,638) $ 371,672 $ (97,608) $ 429,850 $ (100,246) Held-to-Maturity Securities: U.S. Treasury securities $ — $ — $ 27,919 $ (1,965) $ 27,919 $ (1,965) U.S. State and Municipal securities — — 12,680 (2,951) 12,680 (2,951) Residential MBS — — 348,982 (76,294) 348,982 (76,294) Commercial MBS — — 6,677 (1,418) 6,677 (1,418) Total securities held-to-maturity $ — $ — $ 396,258 $ (82,628) $ 396,258 $ (82,628) At December 31, 2022, debt securities with unrealized losses 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, 2022 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: U.S. Government agency securities $ — $ — $ 59,372 $ (8,624) $ 59,372 $ (8,624) U.S. State and Municipal securities 2,546 (527) 6,666 (1,910) 9,212 (2,437) Residential MBS 19,576 (1,654) 305,936 (74,075) 325,512 (75,729) Commercial MBS 13,406 (198) 11,386 (2,031) 24,792 (2,229) Asset-backed securities — — 3,765 (188) 3,765 (188) Total securities available-for-sale $ 35,528 $ (2,379) $ 387,125 $ (86,828) $ 422,653 $ (89,207) Held-to-Maturity Securities: U.S. Treasury securities $ 18,683 $ (1,365) $ 8,946 $ (858) $ 27,629 $ (2,223) U.S. State and Municipal securities 13,205 (2,609) — — 13,205 (2,609) Residential MBS 162,960 (19,625) 226,661 (47,402) 389,621 (67,027) Commercial MBS — — 6,835 (1,276) 6,835 (1,276) Total securities held-to-maturity $ 194,848 $ (23,599) $ 242,442 $ (49,536) $ 437,290 $ (73,135) |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Leases Receivable Disclosure [Line Items] | |
Schedule of net loans | Loans, net of deferred costs and fees, consist of the following (in thousands): At September 30, At December 31, 2023 2022 Real estate Commercial $ 3,712,664 $ 3,254,508 Construction 149,212 143,693 Multi-family 462,999 468,540 One-to four-family 50,205 53,207 Total real estate loans 4,375,080 3,919,948 Commercial and industrial 976,778 908,616 Consumer 18,361 24,931 Total loans 5,370,219 4,853,495 Deferred fees, net of origination costs (15,732) (12,972) Loans, net of deferred fees and costs 5,354,487 4,840,523 Allowance for credit losses (52,298) (44,876) Net loans $ 5,302,189 $ 4,795,647 |
Schedule of changes in the allowance for loan losses by portfolio segment | The following tables present the activity in the ACL for funded loans by segment. The portfolio segments represent the categories that the Company uses to determine its ACL (in thousands): Commercial Commercial Multi One-to four- Three months ended September 30, 2023 Real Estate & Industrial Construction Family Family Consumer Total Allowance for credit losses: Beginning balance $ 34,621 $ 10,977 $ 1,600 $ 3,543 $ 362 $ 547 $ 51,650 Provision/(credit) for credit losses 404 119 169 (54) (11) 150 777 Loans charged-off — — — — — (129) (129) Recoveries — — — — — — — Total ending allowance balance $ 35,025 $ 11,096 $ 1,769 $ 3,489 $ 351 $ 568 $ 52,298 Commercial Commercial Multi One-to four- Three months ended September 30, 2022 Real Estate & Industrial Construction Family Family Consumer Total Allowance for credit losses: Beginning balance $ 25,945 $ 9,144 $ 2,587 $ 2,539 $ 102 $ 217 $ 40,534 Provision/(credit) for credit losses 1,019 954 (55) 103 (3) (11) 2,007 Loans charged-off — — — — — — — Recoveries — — — — — — — Total ending allowance balance $ 26,964 $ 10,098 $ 2,532 $ 2,642 $ 99 $ 206 $ 42,541 Commercial Commercial One-to four- Nine months ended September 30, 2023 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Beginning balance $ 29,496 $ 10,274 $ 1,983 $ 2,823 $ 105 $ 195 $ 44,876 Cumulative effect of changes in accounting principle 48 471 424 705 181 421 2,250 Provision/(credit) for credit losses 5,481 351 (638) (39) 65 225 5,445 Loans charged-off — — — — — (273) (273) Recoveries — — — — — — — Total ending allowance balance $ 35,025 $ 11,096 $ 1,769 $ 3,489 $ 351 $ 568 $ 52,298 Commercial Commercial One-to four- Nine months ended September 30, 2022 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Beginning balance $ 22,216 $ 7,708 $ 2,105 $ 2,156 $ 140 $ 404 $ 34,729 Provision/(credit) for credit losses 4,748 2,390 427 486 (41) (203) 7,807 Loans charged-off — — — — — — — Recoveries — — — — — 5 5 Total ending allowance balance $ 26,964 $ 10,098 $ 2,532 $ 2,642 $ 99 $ 206 $ 42,541 |
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment | The following tables present the balance in the ACL and the recorded investment in loans by portfolio segment based on allowance measurement methodology (in thousands): Commercial Commercial One-to four- At September 30, 2023 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Individually assessed $ — $ — $ — $ — $ — $ 137 $ 137 Collectively assessed 35,025 11,096 1,769 3,489 351 431 52,161 Total ending allowance balance $ 35,025 $ 11,096 $ 1,769 $ 3,489 $ 351 $ 568 $ 52,298 Loans: Individually assessed $ 41,005 $ 6,934 $ — $ — $ — $ 251 $ 48,190 Collectively assessed 3,671,659 969,844 149,212 462,999 50,205 18,110 5,322,029 Total ending loan balance $ 3,712,664 $ 976,778 $ 149,212 $ 462,999 $ 50,205 $ 18,361 $ 5,370,219 Commercial Commercial One-to four- At December 31, 2022 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Individually assessed $ — $ — $ — $ — $ — $ 24 $ 24 Collectively assessed 29,496 10,274 1,983 2,823 105 171 44,852 Total ending allowance balance $ 29,496 $ 10,274 $ 1,983 $ 2,823 $ 105 $ 195 $ 44,876 Loans: Individually assessed $ 26,740 $ — $ — $ — $ 899 $ 24 $ 27,663 Collectively assessed 3,227,768 908,616 143,693 468,540 52,308 24,907 4,825,832 Total ending loan balance $ 3,254,508 $ 908,616 $ 143,693 $ 468,540 $ 53,207 $ 24,931 $ 4,853,495 |
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 and loans past due over 90 days and still accruing, by class of loans (in thousands): Nonaccrual Loans Past Due Without an Over 90 Days At September 30, 2023 Nonaccrual ACL Still Accruing Commercial real estate $ 24,000 $ 24,000 $ — Commercial & industrial 6,934 6,934 — Consumer 24 — — Total $ 30,958 $ 30,934 $ — Nonaccrual Loans Past Due Without an Over 90 Days At December 31, 2022 Nonaccrual ACL Still Accruing Consumer 24 — — Total $ 24 $ — $ — |
Schedule of aging of the recorded investment in past due loans by class of loans | The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands): 90 30-59 60-89 Days and Total past Current At September 30, 2023 Days Days greater due loans Total Commercial real estate $ — $ — $ 24,000 $ 24,000 $ 3,688,664 $ 3,712,664 Commercial & industrial 31 23 6,934 6,988 969,790 976,778 Construction — — — — 149,212 149,212 Multi-family 27,285 11,200 — 38,485 424,514 462,999 One-to four-family — — — — 50,205 50,205 Consumer — 1 24 25 18,336 18,361 Total $ 27,316 $ 11,224 $ 30,958 $ 69,498 $ 5,300,721 $ 5,370,219 90 30-59 60-89 Days and Total past Current At December 31, 2022 Days Days greater due loans Total Commercial real estate $ — $ 24,000 $ — $ 24,000 $ 3,230,508 $ 3,254,508 Commercial & industrial 37 — — 37 908,579 908,616 Construction — — — — 143,693 143,693 Multi-family 8,000 — — 8,000 460,540 468,540 One-to four-family — — — — 53,207 53,207 Consumer 21 — 24 45 24,886 24,931 Total $ 8,058 $ 24,000 $ 24 $ 32,082 $ 4,821,413 $ 4,853,495 |
Schedule of risk category of loans by class of loans | The following table presents loan balances by credit quality indicator and year of origination at September 30, 2023 (in thousands): 2023 2022 2021 2020 2019 2018 & Prior Revolving Total CRE Pass $ 1,172,394 $ 1,348,513 $ 541,243 $ 162,438 $ 223,040 $ 113,821 $ 43,340 $ 3,604,789 Special Mention 13,058 38,867 14,637 308 — — — 66,870 Substandard — 24,000 — 17,005 — — — 41,005 Total $ 1,185,452 $ 1,411,380 $ 555,880 $ 179,751 $ 223,040 $ 113,821 $ 43,340 $ 3,712,664 Construction Pass $ 50,639 $ 50,248 $ 39,304 $ — $ — $ — $ 9,021 $ 149,212 Total $ 50,639 $ 50,248 $ 39,304 $ — $ — $ — $ 9,021 $ 149,212 Multi-family Pass $ 84,393 $ 131,186 $ 52,048 $ 23,774 $ 37,826 $ 79,087 $ 6,461 $ 414,775 Special Mention — 27,285 20,939 — — — — 48,224 Total $ 84,393 $ 158,471 $ 72,987 $ 23,774 $ 37,826 $ 79,087 $ 6,461 $ 462,999 One-to four-family Current $ — $ 4,163 $ — $ 10,365 $ 12,384 $ 23,293 $ — $ 50,205 Total $ — $ 4,163 $ — $ 10,365 $ 12,384 $ 23,293 $ — $ 50,205 Commercial and industrial Pass $ 161,702 $ 267,030 $ 97,771 $ 21,190 $ 15,764 $ 8,238 $ 325,877 $ 897,572 Special Mention 3,840 34,168 — 2,448 — — 31,816 72,272 Substandard 3,435 — — — — — 3,499 6,934 Total $ 168,977 $ 301,198 $ 97,771 $ 23,638 $ 15,764 $ 8,238 $ 361,192 $ 976,778 Consumer Current $ — $ — $ — $ — $ — $ 18,336 $ — $ 18,336 Past due — — — — — 25 — 25 Total $ — $ — $ — $ — $ — $ 18,361 $ — $ 18,361 For loans evaluated by credit risk ratings, the following table presents loan balances by credit quality indicator and by class of loans at December 31, 2022 (in thousands): Special Pass Mention Substandard Doubtful Total Commercial real estate $ 3,192,212 $ 35,881 $ 26,415 $ — $ 3,254,508 Commercial & industrial 876,867 31,749 — — 908,616 Construction 143,693 — — — 143,693 Multi-family 468,540 — — — 468,540 Total $ 4,681,312 $ 67,630 $ 26,415 $ — $ 4,775,357 |
Schedule of loans determined to be impaired by class of loans | The following tables present loans individually evaluated for impairment pursuant to the disclosure requirements prior to the adoption of ASU No. 2016-13 on January 1, 2023 (in thousands). The recorded investment in loans excludes accrued interest receivable and loan origination fees. At December 31, 2022 Allowance Unpaid for Loan Principal Recorded Losses Balance Investment Allocated With an allowance recorded: Consumer 24 24 24 Total $ 24 $ 24 $ 24 Without an allowance recorded: One-to four-family $ 1,176 $ 899 $ — CRE 27,984 26,740 — Total $ 29,160 $ 27,639 $ — Average Interest Recorded Income Three months ended September 30, 2022 Investment Recognized With an allowance recorded: Consumer 24 — Total $ 24 $ — Without an allowance recorded: One-to four-family $ 916 $ 9 C&I 28,486 273 Total $ 29,402 $ 282 Average Interest Recorded Income Nine months ended September 30, 2022 Investment Recognized With an allowance recorded: Consumer 93 — Total $ 93 $ — Without an allowance recorded: One-to four-family $ 816 $ 26 C&I 30,992 769 Total $ 31,808 $ 795 |
Unfunded loan commitment | |
Loans and Leases Receivable Disclosure [Line Items] | |
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment | The following tables present the activity in the ACL for unfunded loan commitments (in thousands): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Balance at the beginning of period $ 1,240 $ 180 $ 180 $ 180 Cumulative effect of changes in accounting principle — — 777 — Provision/(credit) for credit losses 14 — 297 — Total ending allowance balance $ 1,254 $ 180 $ 1,254 $ 180 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
BORROWINGS | |
Schedule of federal funds purchased and FHLBNY advances | Borrowings consisted of the following (in thousands): Interest expense At September 30, At December 31, Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 2023 2022 Federal funds purchased and securities sold under agreements to repurchase $ — $ 150,000 $ 2,160 $ — $ 5,112 $ — Federal Home Loan Bank of New York advances $ 355,000 $ 100,000 $ 5,580 $ — $ 12,114 $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
EARNINGS PER SHARE | |
Schedule of earnings per share | The factors used in the earnings per share calculation are as follows (in thousands, except per share data). Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Basic Net income per consolidated statements of income $ 22,063 $ 24,955 $ 62,700 $ 67,165 Less: Earnings allocated to participating securities (118) (68) (285) (152) Net income available to common stockholders $ 21,945 $ 24,887 $ 62,415 $ 67,013 Weighted average common shares outstanding including participating securities 11,098,563 10,961,697 11,110,491 10,952,452 Less: Weighted average participating securities (59,200) (30,000) (50,440) (24,741) Weighted average common shares outstanding 11,039,363 10,931,697 11,060,051 10,927,711 Basic earnings per common share $ 1.99 $ 2.28 $ 5.64 $ 6.13 Diluted Net income allocated to common stockholders $ 21,945 $ 24,887 $ 62,415 $ 67,013 Weighted average common shares outstanding for basic earnings per common share 11,039,363 10,931,697 11,060,051 10,927,711 Add: Dilutive effects of assumed exercise of stock options — 172,371 — 182,417 Add: Dilutive effects of assumed vesting of performance based restricted stock 76,599 45,636 63,297 53,237 Add: Dilutive effects of assumed vesting of restricted stock units 20,911 27,448 — 41,370 Average shares and dilutive potential common shares 11,136,873 11,177,152 11,123,348 11,204,735 Dilutive earnings per common share $ 1.97 $ 2.23 $ 5.61 $ 5.98 |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
STOCK COMPENSATION PLAN | |
Schedule of status of the stock option plan | Nine months ended September 30, 2023 Weighted Number of Average Options Exercise Price Outstanding, beginning of period 220,200 $ 18.00 Granted — — Exercised (220,200) 18.00 Cancelled/forfeited — — Outstanding, end of period — $ — Options vested and exercisable at end of period — $ — Weighted average remaining contractual life (years) — Weighted average intrinsic value $ — |
Schedule of changes in the non-vested restricted stock awards | Nine months ended September 30, 2023 Weighted Average Number of Grant Date Shares Fair Value Outstanding, beginning of period 129,562 $ 86.01 Granted 198,498 56.04 Forfeited (14,838) 61.50 Vested (64,990) 84.28 Outstanding at end of period 248,232 $ 63.96 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of Assets and Liabilities measured at fair value on a recurring basis | Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) At September 30, 2023 U.S. Government agency securities $ 59,672 $ — $ 59,672 $ — U.S. State and Municipal securities 8,958 — 8,958 — Residential mortgage securities 324,862 — 324,862 — Commercial mortgage securities 33,080 — 33,080 — Asset-backed securities 3,278 — 3,278 — CRA Mutual Fund 2,015 2,015 — — Derivative assets 6,560 — 6,560 — Derivative liabilities 55 — 55 — 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, 2022 U.S. Government agency securities $ 59,372 $ — $ 59,372 $ — U.S. State and Municipal securities 9,212 — 9,212 — Residential mortgage securities 338,548 — 338,548 — Commercial mortgage securities 34,850 — 34,850 — Asset-backed securities 3,765 — 3,765 — CRA Mutual Fund 2,048 2,048 — — Derivatives — — — — |
Schedule of carrying amount and estimated fair values of financial instruments | Carrying amounts and estimated fair values of financial instruments carried at amortized cost 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 September 30, 2023 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 36,438 $ 36,438 $ — $ — $ 36,438 Overnight deposits 140,929 140,929 — — 140,929 Securities held-to-maturity 478,886 — 396,258 — 396,258 Loans, net 5,302,189 — — 5,178,993 5,178,993 Other investments FRB Stock 11,410 N/A N/A N/A N/A FHLB Stock 21,607 N/A N/A N/A N/A Disability Fund 1,500 — 1,500 — 1,500 Time deposits at banks 498 498 — — 498 Receivable from global payments business, net 79,892 — — 79,892 79,892 Accrued interest receivable 28,460 — 922 27,538 28,460 Financial Liabilities: Non-interest-bearing demand deposits $ 1,746,626 $ 1,746,626 $ — $ — $ 1,746,626 Money market and savings deposits 3,739,265 3,739,265 — — 3,739,265 Time deposits 35,698 — 35,115 — 35,115 Federal funds purchased — — — — — Federal Home Loan Bank of New York advances 355,000 — 355,000 — 355,000 Trust preferred securities payable 20,620 — — 19,999 19,999 Prepaid debit cardholder balances 10,297 — — 10,297 10,297 Accrued interest payable 1,211 166 637 408 1,211 Secured borrowings 7,621 — 7,621 — 7,621 Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At December 31, 2022 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 26,780 $ 26,780 $ — $ — $ 26,780 Overnight deposits 230,638 230,638 — — 230,638 Securities held-to-maturity 510,425 — 437,290 — 437,290 Loans, net 4,795,647 — — 4,737,007 4,737,007 Other investments FRB Stock 11,421 N/A N/A N/A N/A FHLB Stock 9,191 N/A N/A N/A N/A Disability Fund 1,000 — 1,000 — 1,000 Time deposits at banks 498 498 — — 498 Receivable from global payments business, net 85,605 — — 85,605 85,605 Accrued interest receivable 24,107 — 964 23,143 24,107 Financial Liabilities: Non-interest-bearing demand deposits $ 2,422,151 $ 2,422,151 $ — $ — $ 2,422,151 Money market and savings deposits 2,803,698 2,803,698 — — 2,803,698 Time deposits 52,063 — 51,058 — 51,058 Federal funds purchased 150,000 — 150,000 — 150,000 Federal Home Loan Bank of New York advances 100,000 — 100,000 — 100,000 Trust preferred securities payable 20,620 — — 19,953 19,953 Prepaid debit cardholder balances 10,579 — — 10,579 10,579 Accrued interest payable 728 112 293 323 728 Secured borrowings 7,725 — 7,725 — 7,725 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Schedule of reclassifications out of accumulated other comprehensive income | The following table shows the amounts reclassified out of AOCI for the sale and calls of AFS securities and realized gain on cash flow hedges (in thousands): Affected line item in Three months ended Nine months ended the Consolidated Statements September 30, September 30, of Operations 2023 2022 2023 2022 Realized gain on sale of AFS securities $ — $ — $ — $ — Gain on Sale of Securities Income tax (expense) benefit — — — — Income tax expense Total reclassifications, net of income tax $ — $ — $ — $ — Realized gain on cash flow hedges $ 1,200 $ 782 $ 3,653 $ 782 Licensing fees Income tax (expense) benefit (369) (240) (1,122) (240) Income tax expense Total reclassifications, net of income tax $ 831 $ 542 $ 2,531 $ 542 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of off-balance-sheet financial instruments | The following off-balance-sheet financial instruments, whose contract amounts represent credit risk, are outstanding (in thousands): At September 30, 2023 At December 31, 2022 Fixed Variable Fixed Variable Rate Rate Rate Rate Unused commitments $ 64,001 $ 400,962 $ 40,685 $ 364,908 Standby and commercial letters of credit 60,158 — 53,947 — $ 124,159 $ 400,962 $ 94,632 $ 364,908 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of Company's sources of non-interest income | The following table presents the Company’s revenue from contracts with customers (in thousands): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Service charges on deposit accounts $ 1,463 $ 1,445 $ 4,400 $ 4,289 Global Payments Group revenue 4,247 4,099 14,828 14,998 Other service charges and fees 867 364 2,185 1,225 Total $ 6,577 $ 5,908 $ 21,413 $ 20,512 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
DERIVATIVES | |
Schedule of notional amount and fair value | The following tables reflect the derivatives recorded on the balance sheet (in thousands): Fair Value Notional Other Other Amount Assets Liabilities At September 30, 2023 Derivatives designated as hedges: Interest rate swaps related to customer deposits and borrowings $ 700,000 $ 6,505 $ — Derivatives not designated as hedges: Interest rate swaps $ 69,000 $ 55 $ 55 At December 31, 2022 Derivatives designated as hedges: Interest rate cap related to customer deposits $ — $ — $ — |
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 is as follows (in thousands): Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Interest rate swaps and caps related to customer deposits and borrowings Amount of gain (loss) recognized in OCI, net of tax $ 509 $ (190) $ 4,517 $ 7,574 Amount of gain (loss) reclassified from OCI into income $ 1,200 $ 782 $ 3,653 $ 782 Location of gain (loss) reclassified from OCI into income Licensing fees N/A Licensing fees N/A N/A - not applicable |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loan commitments | $ 52,298,000 | $ 51,650,000 | $ 44,876,000 | $ 42,541,000 | $ 40,534,000 | $ 34,729,000 | |
Retained earnings | $ 301,407,000 | 240,810,000 | |||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Loan commitments | 2,250,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | |||||||
Loan commitments | $ 3,000,000 | ||||||
Increased deferred tax assets | $ 777,000 | ||||||
Retained earnings | $ 2,100,000 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities available-for-sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale, at fair value | $ 429,850 | $ 445,747 |
Available-for-sale Securities. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 530,096 | 534,665 |
Gross Unrealized/Unrecognized Gains | 289 | |
Gross Unrealized/Unrecognized Losses | (100,246) | (89,207) |
Investment securities available-for-sale, at fair value | 429,850 | 445,747 |
Available-for-sale Securities. | U.S. Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 67,997 | 67,996 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (8,325) | (8,624) |
Investment securities available-for-sale, at fair value | 59,672 | 59,372 |
Available-for-sale Securities. | U.S. State and Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,535 | 11,649 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (2,577) | (2,437) |
Investment securities available-for-sale, at fair value | 8,958 | 9,212 |
Available-for-sale Securities. | Residential MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 410,188 | 413,998 |
Gross Unrealized/Unrecognized Gains | 279 | |
Gross Unrealized/Unrecognized Losses | (85,326) | (75,729) |
Investment securities available-for-sale, at fair value | 324,862 | 338,548 |
Available-for-sale Securities. | Commercial MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 36,978 | 37,069 |
Gross Unrealized/Unrecognized Gains | 10 | |
Gross Unrealized/Unrecognized Losses | (3,898) | (2,229) |
Investment securities available-for-sale, at fair value | 33,080 | 34,850 |
Available-for-sale Securities. | Asset-backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,398 | 3,953 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (120) | (188) |
Investment securities available-for-sale, at fair value | $ 3,278 | $ 3,765 |
INVESTMENT SECURITIES (Schedu_2
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities held-to-maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 478,886 | $ 510,425 |
Total Securities | 396,300 | 437,300 |
Held-to-maturity Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 478,886 | 510,425 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (82,628) | (73,135) |
Total Securities | 396,258 | 437,290 |
Held-to-maturity Securities | US Treasury Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 29,884 | 29,852 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (1,965) | (2,223) |
Total Securities | 27,919 | 27,629 |
Held-to-maturity Securities | U.S. State and Municipal securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 15,631 | 15,814 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (2,951) | (2,609) |
Total Securities | 12,680 | 13,205 |
Held-to-maturity Securities | Residential MBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 425,276 | 456,648 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (76,294) | (67,027) |
Total Securities | 348,982 | 389,621 |
Held-to-maturity Securities | Commercial MBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 8,095 | 8,111 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (1,418) | (1,276) |
Total Securities | $ 6,677 | $ 6,835 |
INVESTMENT SECURITIES (Schedu_3
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of marketable equity securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Marketable Securities [Line Items] | |||||
Amortized Cost | $ 2,396 | $ 2,396 | $ 2,358 | ||
Gross Unrealized/Unrecognized Gains | 0 | ||||
Gross Unrealized/Unrecognized Losses | (381) | (381) | (310) | ||
Fair Value | 2,015 | 2,015 | 2,048 | ||
Proceeds | 0 | $ 0 | 0 | $ 0 | |
CRA mutual fund | |||||
Marketable Securities [Line Items] | |||||
Amortized Cost | 2,396 | 2,396 | 2,358 | ||
Gross Unrealized/Unrecognized Gains | 0 | ||||
Gross Unrealized/Unrecognized Losses | (381) | (381) | (310) | ||
Fair Value | $ 2,015 | $ 2,015 | $ 2,048 |
INVESTMENT SECURITIES (Schedu_4
INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Held-to-maturity Securities, Amortized Cost | ||
After 1 year through 5 years | $ 37,979 | $ 29,852 |
After 5 years though 10 years | 1,177 | 9,505 |
After 10 years | 439,730 | 471,068 |
Amortized Cost, total | 478,886 | 510,425 |
Held-to-maturity Securities, Fair Value | ||
After 1 year through 5 years | 34,596 | 27,630 |
After 5 years though 10 years | 1,064 | 8,130 |
After 10 years | 360,598 | 401,530 |
Fair Value, total | 396,258 | 437,290 |
Available-for-sale Securities, Amortized Cost | ||
After 1 year through 5 years | 66,096 | 54,736 |
After 5 years though 10 years | 22,658 | 36,043 |
After 10 years | 441,342 | 443,886 |
Amortized Cost, total | 530,096 | 534,665 |
Available-for-sale Securities, Fair Value | ||
After 1 year through 5 years | 59,274 | 48,959 |
After 5 years though 10 years | 20,591 | 32,872 |
After 10 years | 349,985 | 363,916 |
Fair Value, total | 429,850 | 445,747 |
Asset Pledged as Collateral | ||
Available-for-sale Securities, Fair Value | ||
Securities pledged | 3,300,000 | 2,400,000 |
Asset Pledged as Collateral | FRB | ||
Available-for-sale Securities, Fair Value | ||
Securities pledged | $ 789,500 | $ 25,000 |
INVESTMENT SECURITIES (Schedu_5
INVESTMENT SECURITIES (Schedule of Securities with Unrealized Losses) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | |
Held-to-maturity Securities | ||
Number of securities of one issuer | item | 0 | 0 |
Impairment loss | $ 0 | $ 0 |
Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 58,178 | 35,528 |
Less than 12 Months, Unrealized/Unrecognized Losses | (2,638) | (2,379) |
12 months or more, Estimated Fair Value | 371,672 | 387,125 |
12 months or more, Unrealized/Unrecognized Losses | (97,608) | (86,828) |
Total, Estimated Fair Value | 429,850 | 422,653 |
Total, Unrealized/Unrecognized Losses | (100,246) | (89,207) |
Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 0 | 194,848 |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | (23,599) |
12 months or more, Estimated Fair Value | 396,258 | 242,442 |
12 months or more, Unrealized/Unrecognized Losses | (82,628) | (49,536) |
Total, Estimated Fair Value | 396,258 | 437,290 |
Total, Unrealized Losses | (82,628) | (73,135) |
U.S. Government agency securities | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 0 | 0 |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | 0 |
12 months or more, Estimated Fair Value | 59,672 | 59,372 |
12 months or more, Unrealized/Unrecognized Losses | (8,325) | (8,624) |
Total, Estimated Fair Value | 59,672 | 59,372 |
Total, Unrealized/Unrecognized Losses | (8,325) | (8,624) |
U.S. State and Municipal securities | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 0 | 2,546 |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | (527) |
12 months or more, Estimated Fair Value | 8,958 | 6,666 |
12 months or more, Unrealized/Unrecognized Losses | (2,577) | (1,910) |
Total, Estimated Fair Value | 8,958 | 9,212 |
Total, Unrealized/Unrecognized Losses | (2,577) | (2,437) |
U.S. State and Municipal securities | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 0 | 13,205 |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | (2,609) |
12 months or more, Estimated Fair Value | 12,680 | |
12 months or more, Unrealized/Unrecognized Losses | (2,951) | |
Total, Estimated Fair Value | 12,680 | 13,205 |
Total, Unrealized Losses | (2,951) | (2,609) |
Residential MBS | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 37,991 | 19,576 |
Less than 12 Months, Unrealized/Unrecognized Losses | (1,520) | (1,654) |
12 months or more, Estimated Fair Value | 286,871 | 305,936 |
12 months or more, Unrealized/Unrecognized Losses | (83,806) | (74,075) |
Total, Estimated Fair Value | 324,862 | 325,512 |
Total, Unrealized/Unrecognized Losses | (85,326) | (75,729) |
Residential MBS | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 0 | 162,960 |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | (19,625) |
12 months or more, Estimated Fair Value | 348,982 | 226,661 |
12 months or more, Unrealized/Unrecognized Losses | (76,294) | (47,402) |
Total, Estimated Fair Value | 348,982 | 389,621 |
Total, Unrealized Losses | (76,294) | (67,027) |
Commercial MBS | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 20,187 | 13,406 |
Less than 12 Months, Unrealized/Unrecognized Losses | (1,118) | (198) |
12 months or more, Estimated Fair Value | 12,893 | 11,386 |
12 months or more, Unrealized/Unrecognized Losses | (2,780) | (2,031) |
Total, Estimated Fair Value | 33,080 | 24,792 |
Total, Unrealized/Unrecognized Losses | (3,898) | (2,229) |
Commercial MBS | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 0 | 0 |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | 0 |
12 months or more, Estimated Fair Value | 6,677 | 6,835 |
12 months or more, Unrealized/Unrecognized Losses | (1,418) | (1,276) |
Total, Estimated Fair Value | 6,677 | 6,835 |
Total, Unrealized Losses | (1,418) | (1,276) |
Asset-backed Securities | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 0 | 0 |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | 0 |
12 months or more, Estimated Fair Value | 3,278 | 3,765 |
12 months or more, Unrealized/Unrecognized Losses | (120) | (188) |
Total, Estimated Fair Value | 3,278 | 3,765 |
Total, Unrealized/Unrecognized Losses | (120) | (188) |
US Treasury Securities | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 0 | 18,683 |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | (1,365) |
12 months or more, Estimated Fair Value | 27,919 | 8,946 |
12 months or more, Unrealized/Unrecognized Losses | (1,965) | (858) |
Total, Estimated Fair Value | 27,919 | 27,629 |
Total, Unrealized Losses | $ (1,965) | $ (2,223) |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Loan Receivables) (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | $ 5,370,219,000 | $ 4,853,495,000 | ||||
Deferred fees, net of origination costs | (15,732,000) | (12,972,000) | ||||
Total ending loan balance | 5,354,487,000 | 4,840,523,000 | ||||
Allowance for credit losses | (52,298,000) | $ (51,650,000) | (44,876,000) | $ (42,541,000) | $ (40,534,000) | $ (34,729,000) |
Net loans | 5,302,189,000 | 4,795,647,000 | ||||
Asset Pledged as Collateral | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Securities pledged | 3,300,000,000 | 2,400,000,000 | ||||
Real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 4,375,080,000 | 3,919,948,000 | ||||
Commercial and industrial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 976,778,000 | 908,616,000 | ||||
Total ending loan balance | 976,778,000 | 908,616,000 | ||||
Allowance for credit losses | (11,096,000) | (10,977,000) | (10,274,000) | (10,098,000) | (9,144,000) | (7,708,000) |
Commercial and industrial | Paycheck Protection Program loans | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Net loans | 64,000 | 97,000 | ||||
Consumer | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 18,361,000 | 24,931,000 | ||||
Total ending loan balance | 18,361,000 | 24,931,000 | ||||
Allowance for credit losses | (568,000) | (547,000) | (195,000) | (206,000) | (217,000) | (404,000) |
Commercial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total ending loan balance | 3,712,664,000 | |||||
Commercial | Real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 3,712,664,000 | 3,254,508,000 | ||||
Total ending loan balance | 3,712,664,000 | 3,254,508,000 | ||||
Allowance for credit losses | (35,025,000) | (34,621,000) | (29,496,000) | (26,964,000) | (25,945,000) | (22,216,000) |
Commercial | Commercial and industrial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 908,616,000 | |||||
Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 143,693,000 | |||||
Total ending loan balance | 149,212,000 | |||||
Construction | Real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 149,212,000 | 143,693,000 | ||||
Total ending loan balance | 149,212,000 | 143,693,000 | ||||
Allowance for credit losses | (1,769,000) | (1,600,000) | (1,983,000) | (2,532,000) | (2,587,000) | (2,105,000) |
Multifamily | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 468,540,000 | |||||
Total ending loan balance | 462,999,000 | |||||
Multifamily | Real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 462,999,000 | 468,540,000 | ||||
Total ending loan balance | 462,999,000 | 468,540,000 | ||||
Allowance for credit losses | (3,489,000) | (3,543,000) | (2,823,000) | (2,642,000) | (2,539,000) | (2,156,000) |
One to four family | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total ending loan balance | 50,205,000 | |||||
One to four family | Real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 50,205,000 | 53,207,000 | ||||
Total ending loan balance | 50,205,000 | 53,207,000 | ||||
Allowance for credit losses | $ (351,000) | $ (362,000) | $ (105,000) | $ (99,000) | $ (102,000) | $ (140,000) |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Activity in the Allowance for Loan Losses by Segment) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | $ 51,650,000 | $ 40,534,000 | $ 44,876,000 | $ 34,729,000 |
Provision /(credit) for loan losses | 777,000 | 2,007,000 | 5,445,000 | 7,807,000 |
Loans charged-off | (129,000) | (273,000) | ||
Recoveries | 0 | 5,000 | ||
Total ending allowance balance | 52,298,000 | 42,541,000 | 52,298,000 | 42,541,000 |
Total charge offs | 129,000 | 273,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 2,250,000 | |||
Consumer. | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Loans charged-off | (129,000,000) | (273,000,000) | ||
Total charge offs | 129,000,000 | 273,000,000 | ||
Real estate | Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 34,621,000 | 25,945,000 | 29,496,000 | 22,216,000 |
Provision /(credit) for loan losses | 404,000 | 1,019,000 | 5,481,000 | 4,748,000 |
Total ending allowance balance | 35,025,000 | 26,964,000 | 35,025,000 | 26,964,000 |
Real estate | Commercial | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 48,000 | |||
Real estate | Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 1,600,000 | 2,587,000 | 1,983,000 | 2,105,000 |
Provision /(credit) for loan losses | 169,000 | (55,000) | (638,000) | 427,000 |
Total ending allowance balance | 1,769,000 | 2,532,000 | 1,769,000 | 2,532,000 |
Real estate | Construction | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 424,000 | |||
Real estate | Multifamily | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 3,543,000 | 2,539,000 | 2,823,000 | 2,156,000 |
Provision /(credit) for loan losses | (54,000) | 103,000 | (39,000) | 486,000 |
Total ending allowance balance | 3,489,000 | 2,642,000 | 3,489,000 | 2,642,000 |
Real estate | Multifamily | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 705,000 | |||
Real estate | One to four family | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 362,000 | 102,000 | 105,000 | 140,000 |
Provision /(credit) for loan losses | (11,000) | (3,000) | 65,000 | (41,000) |
Total ending allowance balance | 351,000 | 99,000 | 351,000 | 99,000 |
Real estate | One to four family | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 181,000 | |||
Commercial and industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 10,977,000 | 9,144,000 | 10,274,000 | 7,708,000 |
Provision /(credit) for loan losses | 119,000 | 954,000 | 351,000 | 2,390,000 |
Total ending allowance balance | 11,096,000 | 10,098,000 | 11,096,000 | 10,098,000 |
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 471,000 | |||
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 547,000 | 217,000 | 195,000 | 404,000 |
Provision /(credit) for loan losses | 150,000 | (11,000) | 225,000 | (203,000) |
Loans charged-off | (129,000) | (273,000) | ||
Recoveries | 5,000 | |||
Total ending allowance balance | 568,000 | $ 206,000 | 568,000 | $ 206,000 |
Total charge offs | $ 129,000 | 273,000 | ||
Consumer | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | $ 421,000 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Unfunded loan commitment allowances activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Activity in the ACL for unfunded loan commitments | ||||
Balance at the beginning of period | $ 51,650 | $ 40,534 | $ 44,876 | $ 34,729 |
Provision/(credit) for credit losses | 777 | 2,007 | 5,445 | 7,807 |
Total ending allowance balance | 52,298 | 42,541 | 52,298 | 42,541 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Activity in the ACL for unfunded loan commitments | ||||
Balance at the beginning of period | 2,250 | |||
Unfunded loan commitment | ||||
Activity in the ACL for unfunded loan commitments | ||||
Balance at the beginning of period | 1,240 | 180 | 180 | 180 |
Provision/(credit) for credit losses | 14 | 297 | ||
Total ending allowance balance | $ 1,254 | $ 180 | 1,254 | $ 180 |
Unfunded loan commitment | Cumulative Effect, Period of Adoption, Adjustment | ||||
Activity in the ACL for unfunded loan commitments | ||||
Balance at the beginning of period | $ 777 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Loans by Impairment Method) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment, Allowance for loan losses | $ 137 | $ 24 | ||||
Collectively evaluated for impairment, Allowance for loan losses | 52,161 | 44,852 | ||||
Total ending loan balance | 52,298 | $ 51,650 | 44,876 | $ 42,541 | $ 40,534 | $ 34,729 |
Individually evaluated for impairment, Loans | 48,190 | 27,663 | ||||
Collectively evaluated for impairment, Loans | 5,322,029 | 4,825,832 | ||||
Total ending loan balance | 5,354,487 | 4,840,523 | ||||
Commercial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total ending loan balance | 3,712,664 | |||||
Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total ending loan balance | 149,212 | |||||
Multifamily | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total ending loan balance | 462,999 | |||||
One to four family | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total ending loan balance | 50,205 | |||||
Real estate | Commercial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Collectively evaluated for impairment, Allowance for loan losses | 35,025 | 29,496 | ||||
Total ending loan balance | 35,025 | 34,621 | 29,496 | 26,964 | 25,945 | 22,216 |
Individually evaluated for impairment, Loans | 41,005 | 26,740 | ||||
Collectively evaluated for impairment, Loans | 3,671,659 | 3,227,768 | ||||
Total ending loan balance | 3,712,664 | 3,254,508 | ||||
Real estate | Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Collectively evaluated for impairment, Allowance for loan losses | 1,769 | 1,983 | ||||
Total ending loan balance | 1,769 | 1,600 | 1,983 | 2,532 | 2,587 | 2,105 |
Collectively evaluated for impairment, Loans | 149,212 | 143,693 | ||||
Total ending loan balance | 149,212 | 143,693 | ||||
Real estate | Multifamily | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Collectively evaluated for impairment, Allowance for loan losses | 3,489 | 2,823 | ||||
Total ending loan balance | 3,489 | 3,543 | 2,823 | 2,642 | 2,539 | 2,156 |
Collectively evaluated for impairment, Loans | 462,999 | 468,540 | ||||
Total ending loan balance | 462,999 | 468,540 | ||||
Real estate | One to four family | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Collectively evaluated for impairment, Allowance for loan losses | 351 | 105 | ||||
Total ending loan balance | 351 | 362 | 105 | 99 | 102 | 140 |
Individually evaluated for impairment, Loans | 899 | |||||
Collectively evaluated for impairment, Loans | 50,205 | 52,308 | ||||
Total ending loan balance | 50,205 | 53,207 | ||||
Commercial and industrial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Collectively evaluated for impairment, Allowance for loan losses | 11,096 | 10,274 | ||||
Total ending loan balance | 11,096 | 10,977 | 10,274 | 10,098 | 9,144 | 7,708 |
Individually evaluated for impairment, Loans | 6,934 | |||||
Collectively evaluated for impairment, Loans | 969,844 | 908,616 | ||||
Total ending loan balance | 976,778 | 908,616 | ||||
Consumer | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment, Allowance for loan losses | 137 | 24 | ||||
Collectively evaluated for impairment, Allowance for loan losses | 431 | 171 | ||||
Total ending loan balance | 568 | $ 547 | 195 | $ 206 | $ 217 | $ 404 |
Individually evaluated for impairment, Loans | 251 | 24 | ||||
Collectively evaluated for impairment, Loans | 18,110 | 24,907 | ||||
Total ending loan balance | $ 18,361 | $ 24,931 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Non-accrual Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 30,958 | $ 24 |
Nonaccrual without an ACL | 30,934 | |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 24,000 | |
Nonaccrual without an ACL | 24,000 | |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 6,934 | |
Nonaccrual without an ACL | 6,934 | |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 24 | $ 24 |
Loans Past Due Over 90 Days Still Accruing | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Past Due Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 5,354,487 | $ 4,840,523 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 27,316 | 8,058 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 11,224 | 24,000 |
90 days and greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 30,958 | 24 |
Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 69,498 | 32,082 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 5,300,721 | 4,821,413 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 3,712,664 | |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 149,212 | |
Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 462,999 | |
One to four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 50,205 | |
One to four family | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 50,205 | |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 3,712,664 | 3,254,508 |
Real estate | Commercial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 24,000 | |
Real estate | Commercial | 90 days and greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 24,000 | |
Real estate | Commercial | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 24,000 | 24,000 |
Real estate | Commercial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 3,688,664 | 3,230,508 |
Real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 149,212 | 143,693 |
Real estate | Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 149,212 | 143,693 |
Real estate | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 462,999 | 468,540 |
Real estate | Multifamily | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 27,285 | 8,000 |
Real estate | Multifamily | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 11,200 | |
Real estate | Multifamily | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 38,485 | 8,000 |
Real estate | Multifamily | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 424,514 | 460,540 |
Real estate | One to four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 50,205 | 53,207 |
Real estate | One to four family | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 50,205 | 53,207 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 976,778 | 908,616 |
Commercial and industrial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 31 | 37 |
Commercial and industrial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 23 | |
Commercial and industrial | 90 days and greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 6,934 | |
Commercial and industrial | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 6,988 | 37 |
Commercial and industrial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 969,790 | 908,579 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 18,361 | 24,931 |
Consumer | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 21 | |
Consumer | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1 | |
Consumer | 90 days and greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 24 | 24 |
Consumer | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 25 | 45 |
Consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 18,336 | $ 24,886 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Loans by Risk Category) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 USD ($) loan | Sep. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 5,370,219 | $ 5,370,219 | $ 4,853,495 |
Number of TDR loans during the period | loan | 0 | 0 | |
Construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 143,693 | ||
Construction | Pass | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 143,693 | ||
Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 468,540 | ||
Multifamily | Pass | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 468,540 | ||
Receivables other than one to four family and consumer loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 4,775,357 | ||
Receivables other than one to four family and consumer loans | Pass | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 4,681,312 | ||
Receivables other than one to four family and consumer loans | Special Mention | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 67,630 | ||
Receivables other than one to four family and consumer loans | Substandard | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 26,415 | ||
Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 4,375,080 | $ 4,375,080 | 3,919,948 |
Real estate | Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 3,712,664 | 3,712,664 | 3,254,508 |
Real estate | Commercial | Pass | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 3,192,212 | ||
Real estate | Commercial | Special Mention | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 35,881 | ||
Real estate | Commercial | Substandard | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 26,415 | ||
Real estate | Construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 149,212 | 149,212 | 143,693 |
Real estate | Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 462,999 | 462,999 | 468,540 |
Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 976,778 | $ 976,778 | 908,616 |
Commercial and industrial | Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 908,616 | ||
Commercial and industrial | Commercial | Pass | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 876,867 | ||
Commercial and industrial | Commercial | Special Mention | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 31,749 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | $ 5,354,487 | $ 4,840,523 |
Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 69,498 | 32,082 |
Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 5,300,721 | 4,821,413 |
Commercial and industrial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 168,977 | |
2022 | 301,198 | |
2021 | 97,771 | |
2020 | 23,638 | |
2019 | 15,764 | |
2018 & Prior | 8,238 | |
Revolving | 361,192 | |
Loans | 976,778 | 908,616 |
Commercial and industrial | Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 6,988 | 37 |
Commercial and industrial | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 969,790 | 908,579 |
Consumer | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2018 & Prior | 18,361 | |
Loans | 18,361 | 24,931 |
Consumer | Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2018 & Prior | 25 | |
Loans | 25 | 45 |
Consumer | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2018 & Prior | 18,336 | |
Loans | 18,336 | 24,886 |
Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 1,185,452 | |
2022 | 1,411,380 | |
2021 | 555,880 | |
2020 | 179,751 | |
2019 | 223,040 | |
2018 & Prior | 113,821 | |
Revolving | 43,340 | |
Loans | 3,712,664 | |
Commercial | Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 41,000 | |
Commercial | Real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 3,712,664 | 3,254,508 |
Commercial | Real estate | Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 24,000 | 24,000 |
Commercial | Real estate | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 3,688,664 | 3,230,508 |
Construction | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 50,639 | |
2022 | 50,248 | |
2021 | 39,304 | |
Revolving | 9,021 | |
Loans | 149,212 | |
Construction | Real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 149,212 | 143,693 |
Construction | Real estate | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 149,212 | 143,693 |
Multifamily | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 84,393 | |
2022 | 158,471 | |
2021 | 72,987 | |
2020 | 23,774 | |
2019 | 37,826 | |
2018 & Prior | 79,087 | |
Revolving | 6,461 | |
Loans | 462,999 | |
Multifamily | Real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 462,999 | 468,540 |
Multifamily | Real estate | Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 38,485 | 8,000 |
Multifamily | Real estate | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 424,514 | 460,540 |
One to four family | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2022 | 4,163 | |
2020 | 10,365 | |
2019 | 12,384 | |
2018 & Prior | 23,293 | |
Loans | 50,205 | |
One to four family | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2022 | 4,163 | |
2020 | 10,365 | |
2019 | 12,384 | |
2018 & Prior | 23,293 | |
Loans | 50,205 | |
One to four family | Real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 50,205 | 53,207 |
One to four family | Real estate | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans | 50,205 | $ 53,207 |
Pass | Commercial and industrial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 161,702 | |
2022 | 267,030 | |
2021 | 97,771 | |
2020 | 21,190 | |
2019 | 15,764 | |
2018 & Prior | 8,238 | |
Revolving | 325,877 | |
Loans | 897,572 | |
Pass | Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 1,172,394 | |
2022 | 1,348,513 | |
2021 | 541,243 | |
2020 | 162,438 | |
2019 | 223,040 | |
2018 & Prior | 113,821 | |
Revolving | 43,340 | |
Loans | 3,604,789 | |
Pass | Construction | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 50,639 | |
2022 | 50,248 | |
2021 | 39,304 | |
Revolving | 9,021 | |
Loans | 149,212 | |
Pass | Multifamily | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 84,393 | |
2022 | 131,186 | |
2021 | 52,048 | |
2020 | 23,774 | |
2019 | 37,826 | |
2018 & Prior | 79,087 | |
Revolving | 6,461 | |
Loans | 414,775 | |
Special Mention | Commercial and industrial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 3,840 | |
2022 | 34,168 | |
2020 | 2,448 | |
Revolving | 31,816 | |
Loans | 72,272 | |
Special Mention | Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 13,058 | |
2022 | 38,867 | |
2021 | 14,637 | |
2020 | 308 | |
Loans | 66,870 | |
Special Mention | Multifamily | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2022 | 27,285 | |
2021 | 20,939 | |
Loans | 48,224 | |
Substandard | Commercial and industrial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 3,435 | |
Revolving | 3,499 | |
Loans | 6,934 | |
Substandard | Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2022 | 24,000 | |
2020 | 17,005 | |
Loans | $ 41,005 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Impaired by Class of Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | |
With an allowance recorded: | |||
Unpaid Principal Balance | $ 24 | ||
Recorded Investment | 24 | ||
Allowance for Loan Losses Allocated | 24 | ||
Average Recorded Investment | $ 24 | $ 93 | |
Without an allowance recorded: | |||
Unpaid Principal Balance | 29,160 | ||
Recorded Investment | 27,639 | ||
Average Recorded Investment | 29,402 | 31,808 | |
Interest Income Recognized | 282 | 795 | |
Real estate | One to four family | |||
Without an allowance recorded: | |||
Unpaid Principal Balance | 1,176 | ||
Recorded Investment | 899 | ||
Average Recorded Investment | 916 | 816 | |
Interest Income Recognized | 9 | 26 | |
Real estate | Commercial | |||
Without an allowance recorded: | |||
Unpaid Principal Balance | 27,984 | ||
Recorded Investment | 26,740 | ||
Commercial and industrial | |||
With an allowance recorded: | |||
Average Recorded Investment | 28,486 | 30,992 | |
Interest Income Recognized | 273 | 769 | |
Consumer | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 24 | ||
Recorded Investment | 24 | ||
Allowance for Loan Losses Allocated | $ 24 | ||
Average Recorded Investment | $ 24 | $ 93 |
BORROWINGS (Advances from the F
BORROWINGS (Advances from the FHLB) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
BORROWINGS | |||
Federal funds purchased and securities sold under agreements to repurchase | $ 150,000 | ||
Federal Home Loan Bank of New York advances | $ 355,000 | $ 355,000 | 100,000 |
Interest expense, Federal funds purchased and securities sold under agreements to repurchase | 2,160 | 5,112 | |
Interest Expense, Federal home loan bank of New York advance | $ 5,580 | $ 12,114 | |
Weighted average Interest rate | 5.36% | 5.36% | |
Interest rate | 5.31% | 5.31% | |
Securities sold under agreements | $ 0 | $ 0 | $ 0 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | |
Federal Home Loan Bank, Advances [Line Items] | |||
Interest rate | 5.31% | ||
Redemption of subordinated debt | $ 24,712 | ||
Subordinated Debt | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Maturity date | Mar. 15, 2027 | ||
Interest rate | 6.25% | ||
Redemption of subordinated debt | $ 25,000 |
EARNINGS PER SHARE (Computation
EARNINGS PER SHARE (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Calculations of basic and diluted earnings per share | |||||
Outstanding stock options | 0 | 0 | 220,200 | ||
Basic | |||||
Net Income (Loss) | $ 22,063 | $ 24,955 | $ 62,700 | $ 67,165 | |
Less: Earnings allocated to participating securities | (118) | (68) | (285) | (152) | |
Net income available to common stockholders | $ 21,945 | $ 24,887 | $ 62,415 | $ 67,013 | |
Weighted average common shares outstanding including participating securities | 11,098,563 | 10,961,697 | 11,110,491 | 10,952,452 | |
Less: Weighted average participating securities | (59,200) | (30,000) | (50,440) | (24,741) | |
Weighted average common shares outstanding | 11,039,363 | 10,931,697 | 11,060,051 | 10,927,711 | |
Basic earnings (in dollars per share) | $ 1.99 | $ 2.28 | $ 5.64 | $ 6.13 | |
Diluted | |||||
Net income allocated to common shareholders | $ 21,945 | $ 24,887 | $ 62,415 | $ 67,013 | |
Weighted average common shares outstanding for basic earnings per common share | 11,039,363 | 10,931,697 | 11,060,051 | 10,927,711 | |
Average shares and dilutive potential common shares | 11,136,873 | 11,177,152 | 11,123,348 | 11,204,735 | |
Diluted earnings (in dollars per share) | $ 1.97 | $ 2.23 | $ 5.61 | $ 5.98 | |
Employee Stock Option [Member] | |||||
Diluted | |||||
Add: Dilutive effects of assumed exercise of stock options | 172,371 | 182,417 | |||
Performance-Based Restricted Stock Units (PRSUs) | |||||
Diluted | |||||
Dilutive effects of assumed vesting units | 76,599 | 45,636 | 63,297 | 53,237 | |
Restricted stock awards | |||||
Calculations of basic and diluted earnings per share | |||||
Number of antidilutive shares not considered in computing diluted earnings per share | 253,029 | ||||
Diluted | |||||
Dilutive effects of assumed vesting units | 20,911 | 27,448 | 41,370 |
STOCK COMPENSATION PLAN (Summar
STOCK COMPENSATION PLAN (Summary of the Status of the Stock Option Plan) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Number of Options | ||
Outstanding, beginning of year | 220,200 | |
Exercised | (220,200) | |
Outstanding, end of year | 0 | 0 |
Weighted Average Exercise Price | ||
Outstanding, beginning of year | $ 18 | |
Exercised | $ 18 | |
Intrinsic value of exercises | $ 4.6 | $ 4.6 |
STOCK COMPENSATION PLAN (Summ_2
STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details) - Restricted stock awards | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of shares, Outstanding, beginning of period | shares | 129,562 |
Number of shares, Granted | shares | 198,498 |
Number of shares, Forfeited | shares | (14,838) |
Number of shares, Vested | shares | (64,990) |
Number of shares, Outstanding at end of period | shares | 248,232 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted Average Grant Date fair Value, beginning of period | $ / shares | $ 86.01 |
Weighted Average Grant Date fair Value, Granted | $ / shares | 56.04 |
Weighted Average Grant Date fair Value, Forfeited | $ / shares | 61.50 |
Weighted Average Grant Date fair Value, Vested | $ / shares | 84.28 |
Weighted Average Grant Date fair Value, at end of period | $ / shares | $ 63.96 |
STOCK COMPENSATION PLAN (Detail
STOCK COMPENSATION PLAN (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Jan. 31, 2023 | Jan. 31, 2022 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 06, 2023 | Dec. 31, 2022 | Apr. 15, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercise of stock options (in shares) | 220,200 | |||||||||||
Intrinsic value of exercises | $ 4,600,000 | $ 4,600,000 | ||||||||||
Remaining unrecognized compensation expense recognition period | 1 year 11 months 15 days | |||||||||||
Total loans | $ 5,370,219,000 | $ 5,370,219,000 | $ 4,853,495,000 | |||||||||
Executive officer | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercise of stock options (in shares) | 220,200 | |||||||||||
Number of shares issued | 71,655 | |||||||||||
Total loans | $ 7,500,000 | $ 780,000 | ||||||||||
Interest rate on loan to related party | 5.70% | 2.10% | ||||||||||
Equity Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation expense recognized | $ 550,000 | $ 481,000 | 1,600,000 | $ 1,400,000 | ||||||||
Total loans | 0 | 0 | 780,000 | |||||||||
Restricted stock awards | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation cost related to non-vested stock options | 10,500,000 | 10,500,000 | ||||||||||
Compensation cost related to stock awards | 1,700,000 | 1,300,000 | $ 4,600,000 | 3,300,000 | ||||||||
Number of shares, Granted | 198,498 | |||||||||||
Number of PRSUs forfeited | 14,838 | |||||||||||
Restricted stock awards | Key Personnel | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares, Granted | 170,998 | 72,025 | ||||||||||
Vesting percentage | 33.33% | |||||||||||
Vesting period | 3 years | |||||||||||
Restricted stock awards | Non-employee directors | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation cost related to non-vested stock options | 388,000 | $ 388,000 | ||||||||||
Compensation cost related to stock awards | $ 388,000 | 297,000 | 1,200,000 | 892,000 | ||||||||
Number of shares, Granted | 27,500 | 11,126 | ||||||||||
Performance-Based Restricted Stock Units (PRSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Weighted average service inception date fair value of award share in amount | $ 6,000,000 | |||||||||||
Equity Incentive Plan 2019 | Performance-Based Restricted Stock Units (PRSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of PRSUs awarded | 90,000 | |||||||||||
Equity Incentive Plan 2022 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based payment award, shares authorized, maximum | 174,918 | 174,918 | ||||||||||
Compensation cost related to stock awards | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Equity Incentive Plan 2022 | 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% | |||||||||||
Equity Incentive Plan 2022 | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based payment award, exercise period from the grant date | 5 years | |||||||||||
Equity Incentive Plan 2022 | Employee Stock Option [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation cost related to non-vested stock options | $ 0 | $ 0 | $ 0 | |||||||||
Equity Incentive Plan 2022 | Employee Stock Option [Member] | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of exercise price to the fair market value | 100% | |||||||||||
Equity Incentive Plan 2022 | 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 2022 | Performance-Based Restricted Stock Units (PRSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of PRSUs forfeited | 20,800 | |||||||||||
Vested accelerated shares | 30,000 | |||||||||||
Equity Incentive Plan 2023 | Performance-Based Restricted Stock Units (PRSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vested accelerated shares | 29,200 | |||||||||||
Equity Incentive Plan 2024 | Performance-Based Restricted Stock Units (PRSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vested accelerated shares | 30,800 |
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 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 910,751 | $ 958,220 | |
Amount transfer from level 1 to level 2 | 0 | $ 0 | |
Fair value assets measured at fair value on a non-recurring basis | 0 | 0 | |
Carrying Amount | U.S. Government agency securities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 59,672 | 59,372 | |
Carrying Amount | U.S. State and Municipal securities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 8,958 | 9,212 | |
Carrying Amount | Residential MBS | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 324,862 | 338,548 | |
Carrying Amount | Commercial MBS | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 33,080 | 34,850 | |
Carrying Amount | Asset-backed Securities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 3,278 | 3,765 | |
Carrying Amount | CRA mutual fund | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 2,015 | 2,048 | |
Carrying Amount | Derivatives assets | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 6,560 | ||
Carrying Amount | Derivative liabilities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | 55 | ||
Fair Value, Inputs, Level 1 | CRA mutual fund | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 2,015 | 2,048 | |
Fair Value, Inputs, Level 2 | U.S. Government agency securities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 59,672 | 59,372 | |
Fair Value, Inputs, Level 2 | U.S. State and Municipal securities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 8,958 | 9,212 | |
Fair Value, Inputs, Level 2 | Residential MBS | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 324,862 | 338,548 | |
Fair Value, Inputs, Level 2 | Commercial MBS | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 33,080 | 34,850 | |
Fair Value, Inputs, Level 2 | Asset-backed Securities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 3,278 | $ 3,765 | |
Fair Value, Inputs, Level 2 | Derivatives assets | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 6,560 | ||
Fair Value, Inputs, Level 2 | Derivative liabilities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | $ 55 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Securities held to maturity | $ 396,300 | $ 437,300 |
Equity investments | 2,015 | 2,048 |
Other investments | ||
Receivable from global payments business, net | 79,892 | 85,605 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 1,746,626 | 2,422,151 |
Federal funds purchased | 150,000 | |
Federal Home Loan Bank of New York advances | 355,000 | 100,000 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 36,438 | 26,780 |
Overnight deposits | 140,929 | 230,638 |
Securities held to maturity | 478,886 | 510,425 |
Loans, net | 5,302,189 | 4,795,647 |
Other investments | ||
FRB Stock | 11,410 | 11,421 |
FHLB Stock | 21,607 | 9,191 |
Disability Fund | 1,500 | 1,000 |
Time deposits at banks | 498 | 498 |
Receivable from global payments business, net | 79,892 | 85,605 |
Accrued interest receivable | 28,460 | 24,107 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 1,746,626 | 2,422,151 |
Money market and savings deposits | 3,739,265 | 2,803,698 |
Time deposits | 35,698 | 52,063 |
Federal funds purchased | 150,000 | |
Federal Home Loan Bank of New York advances | 355,000 | 100,000 |
Trust preferred securities payable | 20,620 | 20,620 |
Prepaid debit cardholder balances | 10,297 | 10,579 |
Accrued interest payable | 1,211 | 728 |
Secured Borrowings | 7,621 | 7,725 |
Total Fair Value | ||
Financial assets: | ||
Cash and due from banks | 36,438 | 26,780 |
Overnight deposits | 140,929 | 230,638 |
Securities held to maturity | 396,258 | 437,290 |
Loans, net | 5,178,993 | 4,737,007 |
Other investments | ||
Disability Fund | 1,500 | 1,000 |
Time deposits at banks | 498 | 498 |
Receivable from global payments business, net | 79,892 | 85,605 |
Accrued interest receivable | 28,460 | 24,107 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 1,746,626 | 2,422,151 |
Money market and savings deposits | 3,739,265 | 2,803,698 |
Time deposits | 35,115 | 51,058 |
Federal funds purchased | 150,000 | |
Federal Home Loan Bank of New York advances | 355,000 | 100,000 |
Trust preferred securities payable | 19,999 | 19,953 |
Prepaid debit cardholder balances | 10,297 | 10,579 |
Accrued interest payable | 1,211 | 728 |
Secured Borrowings | 7,621 | 7,725 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Cash and due from banks | 36,438 | 26,780 |
Overnight deposits | 140,929 | 230,638 |
Other investments | ||
Time deposits at banks | 498 | 498 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 1,746,626 | 2,422,151 |
Money market and savings deposits | 3,739,265 | 2,803,698 |
Accrued interest payable | 166 | 112 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Securities held to maturity | 396,258 | 437,290 |
Other investments | ||
Disability Fund | 1,500 | 1,000 |
Accrued interest receivable | 922 | 964 |
Financial liabilities: | ||
Time deposits | 35,115 | 51,058 |
Federal funds purchased | 150,000 | |
Federal Home Loan Bank of New York advances | 355,000 | 100,000 |
Accrued interest payable | 637 | 293 |
Secured Borrowings | 7,621 | 7,725 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Loans, net | 5,178,993 | 4,737,007 |
Other investments | ||
Receivable from global payments business, net | 79,892 | 85,605 |
Accrued interest receivable | 27,538 | 23,143 |
Financial liabilities: | ||
Trust preferred securities payable | 19,999 | 19,953 |
Prepaid debit cardholder balances | 10,297 | 10,579 |
Accrued interest payable | $ 408 | $ 323 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Licensing fees | $ (3,504) | $ (2,823) | $ (9,180) | $ (7,803) |
Income tax (expense) benefit | (6,292) | (10,991) | (24,351) | (28,452) |
Total reclassifications, net of income tax | 62,700 | 67,165 | ||
Reclassifications out of accumulated other comprehensive (loss) income | Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Licensing fees | 1,200 | 782 | 3,653 | 782 |
Income tax (expense) benefit | (369) | (240) | (1,122) | (240) |
Total reclassifications, net of income tax | $ 831 | $ 542 | $ 2,531 | $ 542 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Outstanding following off-balance-sheet financial instruments) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 124,159 | $ 94,632 |
Variable Rate | 400,962 | 364,908 |
Unused commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 64,001,000 | 40,685,000 |
Variable Rate | 400,962,000 | 364,908,000 |
Standby and commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 60,158,000 | 53,947,000 |
Variable Rate | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 124,159 | $ 94,632 |
FRB Consent Order | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Civil money penalty | 14,500,000 | |
NYSDFS Consent Order | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Civil money penalty | $ 15,000,000 | |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed interest rate off-balance-sheet financial instruments | 3% | 3% |
Variable interest rate off-balance-sheet financial instrument | 6% | 6% |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed interest rate off-balance-sheet financial instruments | 9.50% | 8.50% |
Variable interest rate off-balance-sheet financial instrument | 12.50% | 11.50% |
Commitments term | 2 years | |
Standby and commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 60,158,000 | $ 53,947,000 |
Amount of off-balance-sheet financial instruments collateral received | $ 36,700,000 | $ 28,700,000 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of non-interest income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Non-interest income | $ 6,577 | $ 5,908 | $ 21,413 | $ 20,512 |
Service charges on deposit accounts | ||||
Non-interest income | 1,463 | 1,445 | 4,400 | 4,289 |
Global Payments Group revenue | ||||
Non-interest income | 4,247 | 4,099 | 14,828 | 14,998 |
Other service charges and fees | ||||
Non-interest income | $ 867 | $ 364 | $ 2,185 | $ 1,225 |
DERIVATIVES - (Derivative posit
DERIVATIVES - (Derivative position) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2020 |
Derivatives designated as hedges | Interest rate swaps and caps related to customer deposits and borrowings | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount, derivative asset | $ 300,000 | |
Derivatives unrecognized, termination value | $ 12,700 | |
Derivatives designated as hedges | Interest rate swaps related to customer deposits | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount, derivative asset | 700,000 | |
Fair Value, Other Assets | 6,505 | |
Derivatives not designated as hedges | Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount, derivative asset | 69,000 | |
Fair Value, Other Assets | 55 | |
Fair Value, Other Liabilities | $ 55 |
DERIVATIVES - Cash flow hedge a
DERIVATIVES - Cash flow hedge accounting (Details) - Derivatives designated as hedges - Interest rate swaps and caps related to customer deposits and borrowings - Cash flow hedge - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain (loss) recognized in OCI, net of tax | $ 509 | $ (190) | $ 4,517 | $ 7,574 |
Amount of gain (loss) reclassified from OCI into income | $ 1,200 | $ 782 | $ 3,653 | $ 782 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Licensing Fees | Licensing Fees |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 22,063 | $ 24,955 | $ 62,700 | $ 67,165 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |