Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 26, 2024 | Jun. 30, 2023 | |
Document And Entity Information (Abstract) | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 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, $0.01 par value | ||
Trading Symbol | MCB | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 352.4 | ||
Entity Common Stock, Shares Outstanding | 11,090,229 | ||
Entity Central Index Key | 0001476034 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Crowe LLP | ||
Auditor Firm ID | 173 | ||
Auditor Location | New York, New York |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and cash equivalents: | ||
Cash and due from Banks | $ 31,973 | $ 26,780 |
Overnight deposits | 237,492 | 230,638 |
Total cash and cash equivalents | 269,465 | 257,418 |
Investment securities available-for-sale, at fair value | 461,207 | 445,747 |
Investment securities held-to-maturity (estimated fair value of $404.3 million and $437.3 million at December 31, 2023 and December 31, 2022, respectively) | 468,860 | 510,425 |
Equity investment securities, at fair value | 2,123 | 2,048 |
Total securities | 932,190 | 958,220 |
Other Investments | 38,966 | 22,110 |
Loans, net of deferred fees and costs | 5,624,797 | 4,840,523 |
Allowance for credit losses | (57,965) | (44,876) |
Net loans | 5,566,832 | 4,795,647 |
Receivable from global payments business, net | 87,648 | 85,605 |
Other assets | 172,571 | 148,337 |
Total assets | 7,067,672 | 6,267,337 |
Deposits | ||
Noninterest-bearing demand deposits | 1,837,874 | 2,422,151 |
Interest-bearing deposits | 3,899,418 | 2,855,761 |
Total deposits | 5,737,292 | 5,277,912 |
Federal funds purchased | 99,000 | 150,000 |
Federal Home Loan Bank of New York advances | 440,000 | 100,000 |
Trust preferred securities | 20,620 | 20,620 |
Secured borrowings | 7,585 | 7,725 |
Prepaid third-party debit cardholder balances | 10,178 | 10,579 |
Other liabilities | 93,976 | 124,604 |
Total liabilities | 6,408,651 | 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 December 31, 2023 and December 31, 2022, respectively | 111 | 109 |
Additional paid in capital | 395,871 | 389,276 |
Retained earnings | 315,975 | 240,810 |
Accumulated other comprehensive income (loss), net of tax | (52,936) | (54,298) |
Total stockholders' equity | 659,021 | 575,897 |
Total liabilities and stockholders' equity | $ 7,067,672 | $ 6,267,337 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Securities held to maturity | $ 404.3 | $ 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 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and dividend income | |||
Loans, including fees | $ 345,039 | $ 231,851 | $ 164,528 |
Securities | 18,525 | 15,635 | 5,838 |
Overnight deposits | 9,319 | 12,314 | 2,310 |
Other interest and dividends | 2,522 | 939 | 608 |
Total interest income | 375,405 | 260,739 | 173,284 |
Interest expense | |||
Deposits | 128,677 | 29,284 | 14,241 |
Borrowed funds | 22,424 | 893 | |
Trust preferred securities | 1,468 | 799 | 424 |
Subordinated debt | 605 | 1,618 | |
Total interest expense | 152,569 | 31,581 | 16,283 |
Net interest income | 222,836 | 229,158 | 157,001 |
Provision for credit losses | 12,283 | 10,116 | 3,816 |
Net interest income after provision for credit losses | 210,553 | 219,042 | 153,185 |
Non-interest income | |||
Non-interest income | 27,880 | 26,851 | 23,150 |
Other income | 2,827 | 1,505 | 2,497 |
Total non-interest income | 27,903 | 26,593 | 23,697 |
Non-interest expense | |||
Compensation and benefits | 66,961 | 57,290 | 45,908 |
Bank premises and equipment | 9,344 | 8,855 | 8,055 |
Professional fees | 18,064 | 14,423 | 6,750 |
Technology costs | 4,940 | 4,713 | 5,201 |
Licensing fees | 12,818 | 10,477 | 8,606 |
FDIC assessments | 9,077 | 4,625 | 3,852 |
Regulatory settlement reserve | (5,521) | 35,000 | |
Other expenses | 15,855 | 13,354 | 8,940 |
Total non-interest expense | 131,538 | 148,737 | 87,312 |
Net income before income tax expense | 106,918 | 96,898 | 89,570 |
Income tax expense | 29,650 | 37,473 | 29,015 |
Net income | $ 77,268 | $ 59,425 | $ 60,555 |
Earnings per common share | |||
Basic earnings (in dollars per share) | $ 6.95 | $ 5.42 | $ 6.64 |
Diluted earnings (in dollars per share) | $ 6.91 | $ 5.29 | $ 6.45 |
Service charges on deposit accounts | |||
Non-interest income | |||
Non-interest income | $ 6,071 | $ 5,747 | $ 4,755 |
Revenue, Product and Service [Extensible List] | 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 | $ 19,005 | $ 19,341 | $ 16,445 |
Revenue, Product and Service [Extensible List] | Global Payments Group revenue | Global Payments Group revenue | Global Payments Group revenue |
Other service charges and fees | |||
Non-interest income | |||
Non-interest income | $ 2,804 | $ 1,763 | $ 1,950 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net Income | $ 77,268 | $ 59,425 | $ 60,555 |
Other comprehensive income: | |||
Unrealized gain (loss) arising during the period | 11,135 | (76,934) | (14,722) |
Reclassification adjustment for gains included in net income | (609) | ||
Tax effect | (3,986) | 23,353 | 4,795 |
Net of tax | 7,149 | (53,581) | (10,536) |
Cash flow hedges: | |||
Unrealized gain (loss) arising during the period | (3,350) | 11,704 | 2,957 |
Reclassification adjustment for gains included in net income | (4,864) | (1,949) | |
Tax effect | 2,427 | (2,968) | (898) |
Net of tax | (5,787) | 6,787 | 2,059 |
Total other comprehensive income (loss) | 1,362 | (46,794) | (8,477) |
Comprehensive Income (Loss) | $ 78,630 | $ 12,631 | $ 52,078 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Class B Preferred Stock Preferred Stock | 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, 2020 | $ 3 | $ 82 | $ 218,899 | $ 120,830 | $ 973 | $ 340,787 | ||
Balance (in shares) at Dec. 31, 2020 | 272,636 | 8,295,272 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock under stock compensation plans | $ 1 | 1 | ||||||
Issuance of common stock under stock compensation plans (in shares) | 101,291 | |||||||
Issuance of Common Stock, net of issuance costs | $ 23 | 162,664 | 162,687 | |||||
Issuance of Common Stock, net of issuance costs (in shares) | 2,300,000 | |||||||
Preferred Stock converted to Common Stock | $ (3) | $ 3 | ||||||
Preferred Stock converted to Common Stock (in shares) | (272,636) | 272,636 | ||||||
Employee and non-employee stock-based compensation | 4,821 | 4,821 | ||||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting | (3,385) | (3,385) | ||||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting (in shares) | (48,630) | |||||||
Net Income | 60,555 | 60,555 | ||||||
Other comprehensive income (loss) | (8,477) | (8,477) | ||||||
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) | 48,479 | |||||||
Employee and non-employee stock-based compensation | 7,836 | 7,836 | ||||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting | (1,559) | (1,559) | ||||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting (in shares) | (19,083) | |||||||
Net Income | 59,425 | 59,425 | ||||||
Other comprehensive income (loss) | (46,794) | (46,794) | ||||||
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] | ||||||||
Cumulative effect of changes in accounting principle | 240,810 | |||||||
Issuance of common stock under stock compensation plans | $ 4 | 4 | ||||||
Issuance of common stock under stock compensation plans (in shares) | 285,190 | |||||||
Employee and non-employee stock-based compensation | 9,765 | 9,765 | ||||||
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 | 77,268 | 77,268 | ||||||
Other comprehensive income (loss) | 1,362 | 1,362 | ||||||
Balance at Dec. 31, 2023 | $ 111 | $ 395,871 | $ (2,103) | $ 315,975 | $ (52,936) | $ (2,103) | 659,021 | |
Balance (in shares) at Dec. 31, 2023 | 11,062,729 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of changes in accounting principle | $ 315,975 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 77,268 | $ 59,425 | $ 60,555 |
Adjustments to reconcile net income to net cash: | |||
Net depreciation, amortization, and accretion | 2,899 | 4,338 | 5,063 |
Provision for credit losses | 12,283 | 10,116 | 3,816 |
Stock-based compensation | 9,765 | 7,836 | 4,821 |
Net change in deferred loan fees and costs | 4,243 | 5,374 | 2,332 |
Deferred income tax (benefit) expense | (2,800) | (4,000) | (120) |
(Gain) loss on sale of securities | (609) | ||
Dividends earned on CRA fund | (52) | (33) | (22) |
Unrealized (gain) loss on equity securities | (23) | 258 | 62 |
Net change in: | |||
Receivable from global payments, net | (2,043) | (45,741) | (12,605) |
Third-party debit cardholder balances | (401) | 1,732 | (6,983) |
Other assets | (30,019) | 3,407 | 6,167 |
Other liabilities | (28,694) | 43,179 | (25,200) |
Net cash provided by (used in) operating activities | 42,426 | 85,891 | 37,277 |
Cash flows from investing activities | |||
Loan originations, purchases and payments, net | (789,736) | (1,113,963) | (618,323) |
Proceeds from loans sold | 16,622 | ||
Redemptions of FRB and FHLB Stock | 152,400 | 20,030 | 7 |
Purchases of FRB and FHLB Stock | (169,256) | (30,142) | (407) |
Purchase of securities available-for-sale | (46,809) | (33,776) | (484,793) |
Purchase of securities held-for-investment | (24,595) | (173,625) | (383,619) |
Proceeds from sales and calls of securities available-for-sale | 43,241 | ||
Proceeds from paydowns and maturities of securities available-for-sale | 42,342 | 76,728 | 124,118 |
Proceeds from paydowns and maturities of securities held-to-maturity | 65,954 | 44,643 | 4,152 |
Purchase of premises and equipment, net | (5,749) | (19,245) | (3,995) |
Net cash provided by (used in) investing activities | (775,449) | (1,229,350) | (1,302,997) |
Cash flows from financing activities | |||
Proceeds from issuance of common stock, net | 162,687 | ||
Proceeds from (repayments of) federal funds purchased | (51,000) | 150,000 | |
Proceeds from (repayments of) FHLB advances, net | 340,000 | 100,000 | |
Proceeds from exercise of stock options | 194 | ||
Redemption of common stock for tax withholdings for restricted stock vesting | (3,170) | (1,559) | (3,385) |
Redemption of subordinated debt | (24,712) | ||
Proceeds from (repayments of) secured borrowings, net | (140) | (24,736) | (4,503) |
Net increase (decrease) in deposits | 459,380 | (1,157,660) | 2,605,966 |
Net cash provided by (used in) financing activities | 745,070 | (958,473) | 2,760,765 |
Increase (decrease) in cash and cash equivalents | 12,047 | (2,101,932) | 1,495,045 |
Cash and cash equivalents at the beginning of the period | 257,418 | 2,359,350 | 864,305 |
Cash and cash equivalents at the end of the period | 269,465 | 257,418 | 2,359,350 |
Cash paid for: | |||
Interest | 151,403 | 31,599 | 16,249 |
Income Taxes | $ 36,171 | $ 35,304 | 24,165 |
Non-cash item: | |||
Transfer of loans from held-for-investment to held-for-sale | $ 17,492 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION | |
ORGANIZATION | NOTE 1 — ORGANIZATION Metropolitan Bank Holding Corp., a New York corporation (the “Company”), is a bank holding company whose principal activity is the ownership and management of Metropolitan Commercial Bank (the “Bank”), its wholly-owned subsidiary. The 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-K. 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 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 GPG (“global payments business”), provides services to non-bank financial service companies, including serving as an issuing bank for third-party debit card programs, while also providing such companies with other financial infrastructure components, 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 | 12 Months Ended |
Dec. 31, 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 Consolidated Financial Statements (the “financial statements”) include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated. The financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the periods presented. A summary of the Company’s significant accounting policies consistently applied in the preparation of the accompanying financial statements follows. Use of Estimates In preparing the 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. Actual results could differ from those estimated. Information available that could affect these judgements include, but are not limited to, changes in interest rates, changes in the performance of the economy, and changes in the financial condition of borrowers. Cash Flows Cash and cash equivalents are defined as cash on hand and amounts due from banks and money market funds. Net cash flows are reported for customer loan and deposit transactions, and other investments. Securities Debt securities are classified as HTM and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as AFS when they might be sold before maturity. Securities classified as AFS are carried at fair value, with unrealized gains and losses reported in other comprehensive income, net of tax. Equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized using the level yield method without anticipating prepayments, except for MBS where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Gains and losses on sales of securities are recognized in the consolidated statements of operations upon sale. Effective January 1, 2023, the Company estimates and recognizes an ACL for HTM debt securities pursuant to ASC 326. The Company has a zero loss expectation for nearly all of its HTM securities portfolio, and has no ACL related to these securities. For the small portion of HTM securities portfolio that does not have a zero loss expectation, the ACL is based on the amortized cost of the securities, excluding interest receivable, and represents the portion of the amortized cost that the Company does not expect to collect over the life of the securities. 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 the collateral underlying the security. If it is determined that the decline in fair value was due to credit, 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. If the Company intends to sell the AFS security, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, the Company will write down the security’s amortized cost basis to its fair value, write off any existing ACL, and recognize any incremental impairment in net income. Prior to the adoption of ASC 326 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 was 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 were 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. Receivable from Global Payments Business, Net Receivables from the global payments business are short-term in nature and predominantly related to prepaid debit card programs. Revenue Recognition Any revenues from contracts with customers, which are not exempt from the accounting requirements under ASC 606, Revenue from Contracts with Customers, are accounted for using the five-step method prescribed by the ASC. These revenue items are debit card income, service charges on deposit accounts and other service charges. In accordance with the ASC, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these services. The Company applies the following five steps to properly recognize revenue: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The majority of the Company’s revenue is derived from interest income on loans, which is not subject to the ASC. Licensing Fees Licensing fees on certain deposit accounts held by bankruptcy trustees are expensed as incurred. These accounts require the use of a software interface provided by a third party. Bankruptcy accounts subject to the licensing fees amounted to $312.2 million and $425.3 million at December 31, 2023 and 2022, respectively. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Transfers of financial assets that do not meet the criteria to be accounted for as sales are recorded as secured borrowings. Loans and Allowance for Loan Losses Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances, adjusted for any charge-offs, and any deferred fees or costs on originated loans. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on loans is accrued and credited to operations based upon the principal amounts outstanding. Loans are normally placed on non-accrual 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. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on such loans are applied as a reduction of the loan principal balance when the collectability of principal, wholly or partially, is in doubt. Interest payments received may be recognized as interest income when the principal balance of the non-accrual loan is deemed to be collectible. Interest income is recognized when all the principal and interest amounts contractually due are brought current and the loans are returned to accrual status. The following loan portfolio segments have been identified: CRE, Construction, Multi-Family, One-to Four-Family, C&I, and Consumer. The risk characteristics of each of the identified portfolio segments are as follows: Commercial Real Estate — Construction — If the estimate of value proves to be inaccurate, the value of the building may be insufficient to assure full repayment if liquidation is required. If foreclosure is required on a building before or at completion due to a default, there can be no assurance that all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs will be recovered. Multi-family — One-to Four-Family — Commercial & Industrial — Consumer — 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. See “ , 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. The Company 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 model vendor 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 ASC 326 Prior to the adoption of ASC 326, 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 (ASC 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. See “ , 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. Goodwill Goodwill and certain other intangibles generally arise from business combinations accounted for under the purchase method of accounting. Goodwill and other intangibles deemed to have indefinite lives generated from business combinations are not subject to amortization and are instead tested for impairment not less than annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. The Company changed its annual goodwill impairment testing date from December 31 to October 1 to better align with the timing of our annual planning process. Accordingly, management determined that the change in accounting principle is preferable under the circumstance. This change has been applied starting with the October 1, 2022 impairment test. This change was not material to our consolidated financial statements as it did not delay, accelerate, or avoid any potential goodwill impairment charges. The goodwill of $9.7 million is associated with a purchase of the prepaid third-party debit card business. Based on the Company’s annual impairment assessments no impairment of goodwill existed as of October 1, 2023 and 2022. Stock-Based Compensation Compensation cost is recognized for stock options, restricted stock awards and restricted stock units, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of options. The market price of the Company’s common stock at the date of grant is used for restricted stock awards and restricted stock units. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with time-based vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company also awards PRSUs to certain employees. The PRSUs are classified as either equity or a liability, depending on certain criteria provided in ASC 718, Stock Based Compensation. This classification affects whether the measurement of fair value is fixed (i.e., measured only once) on the grant date or whether fair value will be remeasured each reporting period until settled. On the grant date, the estimate of equity-classified awards’ fair value would be fixed, the cumulative amount of previously recognized compensation cost would be adjusted, and the Company would no longer have to remeasure the award. If the award is liability-classified, the awards would continue to be marked to fair value each reporting period until settlement. The Company recognizes compensation cost for awards with performance conditions if and when it concludes that it is probable that the performance conditions will be achieved. The Company assesses the probability of vesting (i.e., that the performance conditions will be met) at each reporting period and, if required, adjusts compensation cost based on its probability assessment. Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of temporary cash investments including due from banks, interest-bearing deposits with banks and real estate loans receivable. A significant portion of real estate loans are collateralized by property in the New York metropolitan area. The ultimate collectability of these loans may be susceptible to changes in the real estate market in this area. Leases As of December 31, 2022, the Company follows ASC 842, Leases. The Company’s real estate leases are recognized as operating leases. The related ROU lease assets and liabilities are recognized to reflect our right to use the underlying assets and contractual obligations associated with future rent payments. ROU assets are included in other assets and lease liabilities are included in other liabilities on the consolidated statements of financial condition. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. On a periodic basis, ROU assets are assessed for impairment and an impairment loss would be recognized if the carrying amount of the ROU asset is not recoverable. See “ , Prior to 2022, operating leases were not recognized on the Company’s consolidated statements of financial condition. Operating lease expense for lease payments were recognized on a straight-line basis over the lease term in the Company’s consolidated statements of operations. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed over the estimated useful lives of the assets by the straight-line method with useful lives ranging from three Other Investments Other investments include FRB and FHLB stock. The Company is a member of the FRB and the FHLB systems. FHLB members are required to own membership stock and purchase activity-based stock that is based on the level of outstanding borrowings. FRB and FHLB stock are carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Company held FRB and FHLB stock of $11.4 million and $25.6 million, respectively, as of December 31, 2023. As of December 31, 2022, the Company held FRB and FHLB stock of $11.4 million and $9.2 million, respectively. Other investments at December 31, 2023 and 2022 also includes a $1.5 million and $1.0 million investment in The Disability Opportunity Fund, respectively, which is an equity equivalent investment in a community development financial institution. Derivatives On occasion, the Company enters into derivative contracts as a part of its asset liability management strategy to help manage its interest rate risk position. The derivatives are designated as cash flow hedges. A cash flow hedge is a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in accumulated other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of the derivative that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. The amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedged transactions at the inception of the hedging relationship. The documentation includes linking the cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions or group of forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, or treatment of the derivative as a hedge is no longer appropriate or intended. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were in accumulated other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. If the forecasted transaction is deemed probable to not occur, the derivative gain or loss reported in accumulated other comprehensive income is reclassified into current earnings. The Company also periodically enters into certain commercial loan interest rate swap agreements to provide commercial loan customers the ability to convert loans from variable to fixed interest rates. These derivative instruments are marked to market in earnings with changes in fair value reported as non-interest income. Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses and reclassification to earnings related to AFS securities and unrealized gain (loss) related to the cash flow hedges. Restrictions on Cash At December 31, 2023 and 2022, Overnight deposits included $236.4 million and $226.7 million, respectively, of cash on hand or on deposit with the FRB to meet regulatory reserve and clearing requirements. Also included in cash was $11.5 million and $13.3 million of cash held in escrow and collateral accounts for third-party debit card program managers at December 31, 2023 and 2022, respectively. Additionally, there was $726,000 and $693,000 of cash pledged for a related collateral account at December 31, 2023 and 2022, respectively. Earnings per Common Share Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding during the applicable period, including outstanding participating securities. Diluted earnings per common share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. Unvested share-based awards and preferred shares that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. A valuation allowance is recorded, as necessary, to reduce deferred tax assets to an estimated amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of liquid markets for certain items. Changes in assumptions or in market conditions could significantly affect the estimates. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Reclassifications 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. Operating Segment While department heads monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
SUMMARY OF RECENT ACCOUNTING PR
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 — SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS Pursuant to the JOBS Act, an EGC is provided the option to adopt new or revised accounting standards that may be issued by the FASB or the SEC either (i) within the same periods as those otherwise applicable to non-EGCs or (ii) within the same time periods as private companies. The Company’s EGC status ended on December 31, 2022, which was the last day of the fiscal year of the Company following the fifth anniversary of the date of the first sale of common equity securities of the Company pursuant to an effective registration statement under the Securities Act of 1933. In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842), which requires lessees to recognize a lease liability for the obligation to make lease payments and a corresponding ROU asset representing the right to use the underlying asset for the lease term on the balance sheet. The Company adopted this guidance on December 31, 2022 with an effective date of January 1, 2022. This guidance was adopted using a modified retrospective approach. The Company recorded lease assets and liabilities of $44.3 million and $48.4 million, respectively. In accordance with the guidance, $4.1 million of deferred rent was reclassified from liabilities and netted with the ROU asset. There was no cumulative effect adjustment recorded to retained earnings upon adoption. In June 2016, the FASB issued 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. ASU 2016-2013 requires that financial institutions and other organizations will use forward-looking information to better inform their credit loss estimates. This guidance also amends the accounting for credit losses on AFS debt securities and purchased financial assets with credit deterioration. The Company adopted this guidance effective January 1, 2023 using a modified retrospective approach. The Company 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. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - In January 2017, the FASB issued ASU 2017-04, Intangibles - 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 | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE 4 — SECURITIES The following tables summarizes 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 December 31, 2023 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,997 $ — $ (6,222) $ 61,775 U.S. State and Municipal securities 11,496 — (1,797) 9,699 Residential MBS 419,331 1,198 (68,609) 351,920 Commercial MBS 36,879 71 (2,366) 34,584 Asset-backed securities 3,287 — (58) 3,229 Total securities available-for-sale $ 538,990 $ 1,269 $ (79,052) $ 461,207 Held-to-Maturity Securities: U.S. Treasury securities $ 29,895 $ — $ (1,412) $ 28,483 U.S. State and Municipal securities 15,569 — (1,574) 13,995 Residential MBS 415,306 — (60,556) 354,750 Commercial MBS 8,090 — (1,066) 7,024 Total securities held-to-maturity $ 468,860 $ — $ (64,608) $ 404,252 Equity Investments: CRA Mutual Fund $ 2,410 $ — $ (287) $ 2,123 Total equity investment securities $ 2,410 $ — $ (287) $ 2,123 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 The following table summarizes the proceeds and associated gains and (losses) from sales and calls of securities (in thousands): Year ended December 31, 2023 2022 2021 Proceeds $ — $ — $ 43,241 Gross gains $ — $ — $ 609 Tax impact $ — $ — $ (197) 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 investment 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 December 31, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 37,984 35,507 65,822 60,757 After 5 years through 10 years 1,112 1,044 22,163 21,174 After 10 years 429,764 367,701 451,005 379,276 Total Securities $ 468,860 $ 404,252 $ 538,990 $ 461,207 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 There were $845.7 million and $25.0 million of securities pledged to support wholesale funding, and to a lesser extent certain other types of deposits, at December 31, 2023 and 2022, respectively. At December 31, 2023 and 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 December 31, 2023 and 2022, all Residential and Commercial MBS held by the Company were issued by U.S. government-sponsored entities and agencies. At December 31, 2023, debt securities with unrealized/unrecognized 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, 2023 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: U.S. Government agency securities $ — $ — $ 61,775 $ (6,222) $ 61,775 $ (6,222) U.S. State and Municipal securities — — 9,699 (1,797) 9,699 (1,797) Residential MBS — — 292,970 (68,609) 292,970 (68,609) Commercial MBS 10,873 (198) 13,322 (2,168) 24,195 (2,366) Asset-backed securities — — 3,229 (58) 3,229 (58) Total securities available-for-sale $ 10,873 $ (198) $ 380,995 $ (78,854) $ 391,868 $ (79,052) Held-to-Maturity Securities: U.S. Treasury securities $ — $ — $ 28,483 $ (1,412) $ 28,483 $ (1,412) U.S. State and Municipal securities — — 13,995 (1,574) 13,995 (1,574) Residential MBS — — 354,750 (60,556) 354,750 (60,556) Commercial MBS — — 7,024 (1,066) 7,024 (1,066) Total securities held-to-maturity $ — $ — $ 404,252 $ (64,608) $ 404,252 $ (64,608) 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 December 31, 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 year ended December 31, 2023. At December 31, 2022, debt securities with unrealized/unrecognized 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 ASC 326 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 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2023 | |
LOANS | |
LOANS | NOTE 5 — LOANS Loans, net of deferred fees and costs, consist of the following (in thousands): At December 31, At December 31, 2023 2022 Real estate Commercial $ 3,857,711 $ 3,254,508 Construction 153,512 143,693 Multi-family 467,536 468,540 One-to four-family 94,704 53,207 Total real estate loans 4,573,463 3,919,948 Commercial and industrial 1,051,463 908,616 Consumer 17,086 24,931 Total loans 5,642,012 4,853,495 Deferred fees, net of origination costs (17,215) (12,972) Loans, net of deferred fees and costs 5,624,797 4,840,523 Allowance for credit losses (57,965) (44,876) Net loans $ 5,566,832 $ 4,795,647 There were $3.3 billion and $2.4 billion of loans pledged to support wholesale funding at December 31, 2023 and 2022, respectively. The following tables present the activity in the ACL by segment. The portfolio segments represent the categories that the Company uses to determine its ACL (in thousands): Commercial Commercial One-to four- Year ended December 31, 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 6,091 1,408 (642) 4,687 377 137 12,058 Loans charged-off — (946) — — — (273) (1,219) Recoveries — — — — — — — Total ending allowance balance $ 35,635 $ 11,207 $ 1,765 $ 8,215 $ 663 $ 480 $ 57,965 Commercial Commercial One-to four- Year ended December 31, 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 7,280 2,540 (122) 667 (35) (214) 10,116 Loans charged-off — — — — — — — Recoveries — 26 — — — 5 31 Total ending allowance balance $ 29,496 $ 10,274 $ 1,983 $ 2,823 $ 105 $ 195 $ 44,876 Net charge-offs (recoveries) for the years ended December 31, 2023 and 2022 were $1.2 million and $(31,000), respectively. The following tables present the activity in the ACL for unfunded loan commitments (in thousands): Year ended December 31, 2023 2022 Balance at the beginning of period $ 180 $ 180 Cumulative effect of changes in accounting principle 777 — Provision/(credit) for credit losses 225 — Total ending allowance balance $ 1,182 $ 180 The following tables present the balance in the ACL and the recorded investment in loans by portfolio segment based on impairment method (in thousands): Commercial Commercial One-to four- At December 31, 2023 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Individually assessed $ — $ — $ — $ 5,002 $ — $ 64 $ 5,066 Collectively assessed 35,635 11,207 1,765 3,213 663 416 52,899 Total ending allowance balance $ 35,635 $ 11,207 $ 1,765 $ 8,215 $ 663 $ 480 $ 57,965 Loans: Individually assessed $ 40,955 $ 6,934 $ — $ 20,939 $ — $ 104 $ 68,932 Collectively assessed 3,816,756 1,044,529 153,512 446,597 94,704 16,982 5,573,080 Total ending loan balance $ 3,857,711 $ 1,051,463 $ 153,512 $ 467,536 $ 94,704 $ 17,086 $ 5,642,012 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, 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 December 31, 2023 Nonaccrual ACL Still Accruing Commercial real estate $ 24,000 $ 24,000 $ — Commercial & industrial 6,934 6,934 — Multi-family 20,939 — — Consumer 24 — — Total $ 51,897 $ 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 years ended December 31, 2023 and 2022 was immaterial. The following table presents 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 December 31, 2023 Days Days greater due loans Total Commercial real estate $ — $ — $ 24,000 $ 24,000 $ 3,833,711 $ 3,857,711 Commercial & industrial 20 18 6,934 6,973 1,044,490 1,051,463 Construction — — — — 153,512 153,512 Multi-family — — 20,939 20,939 446,597 467,536 One-to four-family 612 — — 612 94,092 94,704 Consumer — — 24 24 17,062 17,086 Total $ 632 $ 18 $ 51,897 $ 52,548 $ 5,589,464 $ 5,642,012 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 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, which was previously presented. 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 - The following table presents loan balances by credit quality indicator and year of origination at December 31, 2023 (in thousands): 2023 2022 2021 2020 2019 2018 & Prior Revolving Total CRE Pass $ 1,500,873 $ 1,268,550 $ 512,497 $ 128,320 $ 200,304 $ 83,309 $ 44,672 $ 3,738,525 Special Mention 24,500 38,867 14,561 304 — — — 78,232 Substandard — 40,954 — — — — — 40,954 Total $ 1,525,373 $ 1,348,371 $ 527,058 $ 128,624 $ 200,304 $ 83,309 $ 44,672 $ 3,857,711 Construction Pass $ 84,881 $ 56,065 $ — $ — $ — $ — $ 12,566 $ 153,512 Total $ 84,881 $ 56,065 $ — $ — $ — $ — $ 12,566 $ 153,512 Multi-family Pass $ 115,761 $ 114,652 $ 51,768 $ 23,655 $ 34,533 $ 69,510 $ 6,415 $ 416,294 Special Mention — 30,303 — — — — — 30,303 Substandard — — 20,939 — — — — 20,939 Total $ 115,761 $ 144,955 $ 72,707 $ 23,655 $ 34,533 $ 69,510 $ 6,415 $ 467,536 One-to four-family Current $ 45,000 $ 4,081 $ — $ 9,784 $ 12,157 $ 23,682 $ — $ 94,704 Total $ 45,000 $ 4,081 $ — $ 9,784 $ 12,157 $ 23,682 $ — $ 94,704 Commercial and industrial Pass $ 178,814 $ 252,359 $ 98,753 $ 23,943 $ 14,390 $ 5,904 $ 402,247 $ 976,410 Special Mention 3,840 33,918 — 2,080 — — 28,281 68,119 Substandard 3,435 — — — — — 3,499 6,934 Total $ 186,089 $ 286,277 $ 98,753 $ 26,023 $ 14,390 $ 5,904 $ 434,027 $ 1,051,463 Consumer Current $ — $ — $ — $ — $ — $ 17,062 $ — $ 17,062 Past due — — — — — 24 — 24 Total $ — $ — $ — $ — $ — $ 17,086 $ — $ 17,086 Charge-offs Commercial and industrial $ — $ — $ 915 $ — $ — $ 31 $ — $ 946 Consumer — — — — — 273 — 273 $ — $ — $ 915 $ — $ — $ 304 $ — $ 1,219 At December 31, 2023, there were $41.0 million and $20.9 million of CRE and Multi-family substandard classified collateral dependent loans, respectively. There were no loan modifications where the borrower was experiencing financial difficulty for the year ended December 31, 2023. The following tables present loans individually evaluated for impairment pursuant to the disclosure requirements prior to the adoption of ASC 326 on January 1, 2023 (in thousands). 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 At December 31, 2022 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 (in thousands). The recorded investment in loans excludes accrued interest receivable and loan origination fees. At December 31, 2022 Year ended December 31, 2022 Allowance Unpaid for Loan Average Interest Principal Recorded Losses Recorded Income Balance Investment Allocated Investment Recognized With an allowance recorded: Consumer $ 24 $ 24 $ 24 $ 79 $ — Total $ 24 $ 24 $ 24 $ 79 $ — Without an allowance recorded: One-to four-family $ 1,176 $ 899 $ — $ 832 $ 31 CRE 27,984 26,740 — 30,142 1,041 Total $ 29,160 $ 27,639 $ — $ 30,974 $ 1,072 At December 31, 2021 Year ended December 31, 2021 Allowance Unpaid for Loan Average Interest Principal Recorded Losses Recorded Income Balance Investment Allocated Investment Recognized With an allowance recorded: One-to four-family $ 577 $ 447 $ 26 $ 462 $ 21 Consumer 302 302 170 1,766 84 C&I — — — 2,726 — Total $ 879 $ 749 $ 196 $ 4,954 $ 105 Without an allowance recorded: One-to four-family $ 646 $ 499 $ — $ 509 $ 26 CRE 38,518 38,518 — 15,975 325 C&I — — — 77 — Total $ 39,164 $ 39,017 $ — $ 16,561 $ 351 COVID-19 As of December 31, 2023, the Company had no loans that were modified in accordance with the COVID-19 Guidance and the CARES Act. As of December 31, 2022, the Company had one loan amounting to $20.8 million, or 0.43% of total loans, that was modified in accordance with the COVID-19 Guidance and the CARES Act. Included in C&I loans at December 31, 2023 and 2022 were $54,000 and $97,000, respectively, of PPP loans. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
LEASES | NOTE 6 — LEASES The Company leases its corporate office, banking centers and loan production offices. The following tables present the Company’s lease cost and other information related to its operating leases (dollars in thousands): At December 31, 2023 2022 Supplemental balance sheet information: Lease assets $ 42,245 $ 44,339 Lease liabilities $ 46,430 $ 48,364 Weighted average remaining lease term in years 10.5 11.2 Weighted average discount rate 2.44 % 2.26 % Components of lease cost: Operating lease cost $ 5,290 $ 5,405 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 5,191 $ 4,864 Non-cash activity related to lease assets: Lease assets obtained from new operating lease liabilities $ 2,036 $ — The following table presents the remaining maturity of lease liabilities as well as the reconciliation of undiscounted lease payments to the discounted operating lease liabilities (in thousands): At December 31, 2023 2022 Lease liabilities maturing in: 2024 $ 5,012 $ 5,202 2025 5,257 4,976 2026 5,274 4,990 2027 4,899 5,008 2028 4,486 4,632 Thereafter 27,953 30,276 Total $ 52,881 $ 55,084 Less: Present value discount (6,451) (6,720) Total lease liabilities $ 46,430 $ 48,364 Total rent expense for the year ended December 31, 2021 was $4.9 million. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | NOTE 7 — PREMISES AND EQUIPMENT Premises and equipment are summarized as follows (in thousands): At December 31, 2023 2022 Furniture and Equipment $ 16,175 $ 14,451 Land, buildings and improvements 13,479 13,479 Leasehold Improvements 24,636 20,595 Total Premises and Equipment 54,290 48,525 Less accumulated depreciation and amortization (19,225) (16,656) Total Premises and Equipment, net $ 35,065 $ 31,869 Depreciation and amortization expense amounted to $2.6 million, $2.5 million and $2.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2023 | |
DEPOSITS | |
DEPOSITS | NOTE 8 — DEPOSITS Deposits consisted of the following (in thousands): At December 31, 2023 2022 Noninterest bearing demand accounts $ 1,837,874 $ 2,422,151 Money market 3,856,975 2,792,554 Savings accounts 7,043 11,144 Time deposits 35,400 52,063 Total deposits $ 5,737,292 $ 5,277,912 Time deposits greater than $250,000 at December 31, 2023 and 2022 were $21.2 million and $30.8 million, respectively. The following table presents the scheduled annual maturities of time deposits (in thousands): At December 31, 2023 2024 $ 31,835 2025 2,614 2026 349 2027 479 2028 123 Total time deposits $ 35,400 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
BORROWINGS | |
BORROWINGS | NOTE 9 — BORROWINGS Federal Funds Purchased and FHLB Advances Federal funds purchased and FHLBNY advances consisted of the following (in thousands): Interest Expense At December 31, At December 31, Year Ended December 31, 2023 2022 2023 2022 2021 Federal funds purchased and securities sold under agreements to repurchase $ 99,000 $ 150,000 $ 5,651 $ 601 $ — Federal Home Loan Bank of New York advances $ 440,000 $ 100,000 $ 17,321 $ 292 $ — Federal funds purchased are generally overnight transactions and had a weighted average interest rate of 5.53% at December 31, 2023. The FHLBNY advances are generally short-term transactions and have a fixed weighted average interest rate of 5.54%. There were no securities sold under agreements to repurchase outstanding as December 31, 2023 and 2022. At December 31, 2023, the Company had cash on deposit with the Federal Reserve Bank of New York and available secured wholesale funding borrowing capacity of $3.1 billion. Trust Preferred Securities Payable On December 7, 2005, the Company established MetBank Capital Trust I, a Delaware statutory trust (“Trust I”). The Company received all of the common stock of Trust I in exchange for contributed capital of $310,000. Trust I issued $10.0 million of preferred capital securities to investors in a private transaction and invested the proceeds, combined with the proceeds from the sale of Trust I’s common capital securities, in the Company through the purchase of $10.3 million aggregate principal amount of Floating Rate Junior Subordinated Debentures (the “Debentures”) issued by the Company. The Debentures, the sole assets of Trust I, mature on December 9, 2035 and are callable at any time. At December 31, 2023, the Debentures bore interest at a floating rate of three-month SOFR plus 1.85%. At December 31, 2022 the Debentures bore interest at a floating rate of three-month LIBOR plus 1.85%. The interest rates were 7.51% and 5.93% as of December 31, 2023 and 2022, respectively. See “ On July 14, 2006, the Company established MetBank Capital Trust II, a Delaware statutory trust (“Trust II”). The Company received all of the common stock of Trust II in exchange for contributed capital of $310,000. Trust II issued $10 million of preferred capital securities to investors in a private transaction and invested the proceeds, combined with the proceeds from the sale of Trust II’s common capital securities, in the Company through the purchase of $10.3 million aggregate principal amount of Floating Rate Junior Subordinated Debentures (the “Debentures II”) issued by the Company. The Debentures II, the sole assets of Trust II, mature on October 7, 2036 and are callable at any time. At December 31, 2023, the Debentures bore interest at a floating rate of three-month SOFR plus 2.00%. At December 31, 2022 the Debentures bore interest at a floating rate of three-month LIBOR plus 2.00%. The interest rates were 7.66% and 6.08% as of December 31, 2023 and 2022, respectively. See “NOTE 3—SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS,” for a discussion on the adoption of ASU 2020-04, Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The Company is not considered the primary beneficiary of these trusts; therefore, the trusts are not consolidated in the Company’s financial statements. Interest on the subordinated debentures may be deferred by the Company at any time or from time to time for a period not exceeding twenty consecutive quarterly payments (5 years), provided there is no event of default. At the end of the deferral period, the Company must pay accrued interest, at which point it may elect a new deferral period provided that no deferral may extend beyond maturity. The investments in the common stock of Trust I and Trust II are included in other assets on the consolidated statements of financial condition. The subordinated debentures may be included in Tier 1 capital (with certain applicable limitations) under current regulatory guidelines and interpretations. Subordinated Debt On March 8, 2017, the Company issued $25.0 million of subordinated notes to accredited institutional investors. The subordinated notes had a maturity date of March 15, 2027 and an interest rate of 6.25% per annum. During the first quarter of 2022, the Company redeemed all of the subordinated debt, plus accrued interest. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | NOTE 10 — INCOME TAXES Income tax expense consisted of the following (in thousands): Year Ended December 31, 2023 2022 2021 Current Federal $ 21,503 $ 27,311 $ 16,883 State and local 10,947 14,162 12,252 Total current 32,450 41,473 29,135 Deferred Federal (2,662) (1,919) (405) State and local (138) (2,081) 285 Total deferred (2,800) (4,000) (120) Total income tax expense $ 29,650 $ 37,473 $ 29,015 Deferred tax assets and liabilities consist of the following (in thousands): At December 31, 2023 2022 Deferred tax assets: Allowance for credit losses $ 17,219 $ 13,698 Lease liabilities 13,793 14,782 Net unrealized loss on securities available for sale 23,098 27,084 Off balance sheet reserves 351 55 Restricted stock 1,666 1,140 Tangible asset 3 7 Non-qualified stock options — 285 Other 147 95 Total gross deferred tax assets 56,277 57,146 Deferred tax liabilities: Right of use lease asset 12,550 13,551 Depreciation and amortization 4,024 4,390 Net unrealized gain on interest rate derivatives 825 3,302 Prepaid assets 748 548 Other — — Total gross deferred tax liabilities 18,147 21,791 Net deferred tax asset, included in other assets $ 38,130 $ 35,355 The following is a reconciliation of the Company’s statutory federal income tax rate to its effective tax rate (in thousands): For the year ended December 31, 2023 2022 2021 Tax expense/ Tax expense/ Tax expense/ (benefit) Rate (benefit) Rate (benefit) Rate Pretax income at statutory rates $ 22,453 21.00 % $ 20,349 21.00 % $ 18,810 21.00 % State and local taxes, net of federal income tax benefit 8,539 7.99 9,544 9.85 9,904 11.06 Nondeductible expenses (940) (0.88) 8,175 8.44 680 0.76 Equity compensation (1,063) (0.99) (302) (0.31) (467) (0.52) Tax-exempt income, net (104) (0.10) (106) (0.11) (51) (0.06) Other 765 0.71 (187) (0.20) 139 0.15 Effective income tax expense/rate $ 29,650 27.73 % $ 37,473 38.67 % $ 29,015 32.39 % The Company and the Bank filed consolidated Federal, California, Connecticut, Kentucky, Massachusetts, New Jersey, New York State, New York City, and Tennessee income tax returns in 2022 and 2023. The Bank is subject to Alabama, Florida, and Missouri income taxes on a separate company basis. As of December 31, 2023 and 2022, there are no unrecognized tax benefits, and the Company does not expect this to significantly change in the next twelve months. Except for California, Kentucky, and New Jersey, the Company is no longer subject to examination by the U.S. federal and state or local tax authorities for years prior to 2020. California, Kentucky, and New Jersey are no longer subject to examination for years prior to 2019. As of December 31, 2023, the Company was under audit in New York for the 2018 tax year, and in New York City for the 2019, 2020 and 2021 tax years. Due to the New York State audit, the 2018 and 2019 tax year for New York State statute of limitations has been extended to December 31, 2024. Due to the New York City audits, the 2019 tax year New York City statute of limitation has been extended to December 31, 2024. As of December 31, 2023, the Company had net deferred tax assets of $38.1 million. These deferred tax assets can only be realized if the Company generates taxable income in the future. The Company regularly evaluates the feasibility of the deferred tax asset positions. In determining whether a valuation allowance is necessary, the Company considers the level of taxable income in prior years to the extent that carrybacks are permitted under current tax laws, as well as estimates of future pre-tax and taxable income and tax planning strategies that would, if necessary, be implemented. The Company expects to realize the deferred tax assets over the allowable carryback and/or carryforward periods. Therefore, no valuation allowance was deemed necessary against the deferred tax assets as of December 31, 2023. However, if an unanticipated event occurred that materially changed pre-tax and taxable income in future periods, a valuation allowance may become necessary and could have a material effect on our consolidated financial statements. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 11 — RELATED PARTY TRANSACTIONS Deposits from principal officers, directors, and their affiliates at December 31, 2023 and 2022 were $769,000 and $4.6 million, respectively. 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 December 31, 2023 and 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. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Other than derivative contracts, the Company did not have any liabilities that were measured at fair value at December 31, 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: Level 2: Level 3: 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 and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) At December 31, 2023 U.S. Government agency securities $ 61,775 $ — $ 61,775 $ — U.S. State and Municipal securities 9,699 — 9,699 — Residential mortgage securities 351,920 — 351,920 — Commercial mortgage securities 34,584 — 34,584 — Asset-backed securities 3,229 — 3,229 — CRA Mutual Fund 2,123 2,123 — — Derivative assets 2,687 — 2,687 — Derivative liabilities 6,037 — 6,037 — 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 2023 or 2022. There were no material assets measured at fair value on a non-recurring basis at December 31, 2023 or December 31, 2022. Assets and Liabilities Not Measured on a Recurring Basis The Company has engaged an independent pricing service providers to provide the fair values of its financial assets and liabilities not measured at fair value. These providers follow FASB’s exit pricing guidelines, as required by ASC 820 Fair Value Measurement, when calculating the fair market value. Cash and cash equivalents include cash and due from banks and overnight deposits. The estimated fair values of cash and cash equivalents are assumed to equal their carrying values, as these financial instruments are either due on demand or have short-term maturities. For securities and the disability fund, if quoted market prices are not available for a specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. These pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices, and credit spreads. The estimated fair value of loans are measured at amortized cost using an exit price notion. Ownership in equity securities of the FRB and FHLB is generally restricted and there is no established liquid market for their resale. The fair values of deposit liabilities with no stated maturity (i.e., money market and savings deposits, and non-interest-bearing demand deposits) are equal to the carrying amounts payable on demand. Time deposits are valued using a replacement cost of funds approach. Trust preferred securities are valued using a replacement cost of funds approach. For all other assets and liabilities it is assumed that the carrying value equals their current fair value. Carrying amount and estimated fair values of financial instruments not carried at fair value were as follows (in thousands): Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At December 31, 2023 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 31,973 $ 31,973 $ — $ — $ 31,973 Overnight deposits 237,492 237,492 — — 237,492 Securities held-to-maturity 468,860 — 404,252 — 404,252 Loans, net 5,566,832 — — 5,474,238 5,474,238 Other investments FRB Stock 11,410 N/A N/A N/A N/A FHLB Stock 25,558 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 87,648 — — 87,648 87,648 Accrued interest receivable 31,948 — 2,007 29,941 31,948 Financial Liabilities: Non-interest-bearing demand deposits $ 1,837,874 $ 1,837,874 $ — $ — $ 1,837,874 Money market and savings deposits 3,864,018 3,864,018 — — 3,864,018 Time deposits 35,400 — 35,011 — 35,011 Federal funds purchased 99,000 — 99,000 — 99,000 Federal Home Loan Bank of New York advances 440,000 — 440,000 — 440,000 Trust preferred securities payable 20,620 — — 20,007 20,007 Prepaid debit cardholder balances 10,178 — — 10,178 10,178 Accrued interest payable 1,894 1,028 475 391 1,894 Secured borrowings 7,585 — 7,585 — 7,585 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 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 13 — STOCKHOLDERS’ EQUITY During the third quarter of 2021, the Company issued 2.3 million shares of its common stock at a price of $75 per share, resulting in net proceeds of $162.7 million. The Company had outstanding 272,636 shares of its Series F, Class B non-voting preferred stock, par value, $0.01 per share. The stock was subordinate and junior to all indebtedness of the Company and to all other series of preferred stock of the Company. The holder of the Series F, Class B preferred stock was entitled to receive ratable dividends only if and when dividends were concurrently declared and payable on the shares of common shares. During the fourth quarter of 2021, the holder of the Series F, Class B Preferred Stock exchanged shares of Series F, Class B preferred stock for shares of the Company’s common stock. |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 12 Months Ended |
Dec. 31, 2023 | |
STOCK COMPENSATION PLAN | |
STOCK COMPENSATION PLAN | NOTE 14 — STOCK COMPENSATION PLAN Equity Incentive Plan At December 31, 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 but had outstanding stock options that were exercised in 2023. 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 189,298, 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 is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities based on historical volatilities of the Company’s common stock are not significant. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. A summary of the status of the Company’s stock options and the changes during the year is presented below: Year ended December 31, 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 exercises was $4.6 million and $417,000 for the years ended December 31, 2023 and 2022, respectively. There was no unrecognized compensation cost related to stock options at December 31, 2023 and 2022. There was no compensation cost related to stock options during the years ended December 31, 2023, 2022 or 2021. Restricted Stock Awards and Restricted Stock Units The Company issued restricted stock awards and restricted stock units under the 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, 2022 and 2021, 170,998, 72,025 and 78,582 restricted stock grants were issued to certain key personnel, respectively. One In January 2023, 27,500 restricted shares were granted to members of the Board of Directors, which vested in January 2024. In January 2022, 11,126 restricted shares were granted to members of the Board of Directors, which vested in January 2023. In January 2019, 38,900 restricted shares were granted to members of the Board of Directors in lieu of retainer fees for three years of service. In the fourth quarter of 2020, 1,785 shares were granted to a new member of the Board of Directors, all of which vested in the fourth quarter of 2021. Total expense for these awards was $1.6 million, $300,000 and $410,000 for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, there was no unrecognized expense related to these grants. The following table summarizes the changes in the Company’s restricted stock awards: Year ended December 31, 2023 December 31, 2022 December 31, 2021 Weighted Weighted Weighted Average Average Average Number of Grant Date Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Shares Fair Value Outstanding, beginning of period 129,562 $ 86.01 90,999 $ 47.35 76,289 $ 37.01 Granted 198,498 56.04 83,151 102.49 78,582 50.80 Forfeited (29,218) 62.53 (578) 92.44 (10,200) 48.09 Vested (64,990) 84.28 (44,010) 37.12 (53,672) 37.57 Outstanding at end of period 233,852 $ 63.98 129,562 $ 86.01 90,999 $ 47.35 The total fair value of shares vested is $3.7 million, $3.6 million, and $2.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. 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 2024, 2023, and 2022, 30,800, 29,200, and 30,000 PRSUs, respectively, were vested as all performance criteria were met. 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 $2.2 million, $1.9 million and $1.9 million, for years ended December 31, 2023, 2022 and 2021, respectively. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE BENEFIT PLAN | |
EMPLOYEE BENEFIT PLAN | NOTE 15 — EMPLOYEE BENEFIT PLAN The Company has a 401(k) plan for eligible employees. The contribution for any participant may not exceed the maximum amount allowable by law. Each year, the Company may elect to match a percentage of participant contributions. The Company may also elect each year to make additional discretionary contributions to the plan. The total contributions were $1.0 million, $889,000 and $774,000 for the years ended December 31, 2023, 2022 and 2021, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 — 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 December 31, 2023 At December 31, 2022 Fixed Variable Fixed Variable Rate Rate Rate Rate Unused commitments $ 67,418 $ 527,730 $ 40,685 $ 364,908 Standby and commercial letters of credit 59,532 — 53,947 — $ 126,950 $ 527,730 $ 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 December 31, 2023, the interest rates for the Company’s commitments ranged from 3.0% to 9.5% for its fixed rate loan commitments and 6.0% to 12.5% for its variable rate loan commitments. At December 31, 2022, the interest rates for the Company’s commitments ranged from 3.0% to 8.5% for its fixed rate loan commitments and 6.0% to 11.5% for its variable rate loan commitments. 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 $59.5 million and $53.9 million as of December 31, 2023 and 2022, respectively. The Company’s stand-by letters of credit are collateralized by interest-bearing accounts of $36.2 million and $28.7 million as of December 31, 2023 and 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 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 provided 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 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 provided 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. |
REGULATORY CAPITAL
REGULATORY CAPITAL | 12 Months Ended |
Dec. 31, 2023 | |
REGULATORY CAPITAL | |
REGULATORY CAPITAL | NOTE 17 — REGULATORY CAPITAL The Company and Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. At December 31, 2023 and 2022, the Company and the Bank met all applicable regulatory capital requirements to be considered “well capitalized” under regulatory guidelines. The Company and Bank manage their capital to comply with their internal planning targets and regulatory capital standards administered by federal banking agencies. The Company and Bank review capital levels on a monthly basis. The Company and the Bank are subject to the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules). The minimum required capital conservation buffer was 2.5% at December 31, 2023 and December 31, 2022. As of December 31, 2023 and 2022, the capital conservation buffer for the Company was 4.8% and 5.4%, respectively. As of December 31, 2023 and 2022, the capital conservation buffer for the Bank was 4.5% and 5.1%, respectively. The net unrealized gain or loss on AFS securities is not included in the computation of the regulatory capital. The Company and the Bank meet all capital adequacy requirements, to which they are subject, as of December 31, 2023 and 2022. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2023 and 2022, the most recent regulatory notifications categorized the Bank and the Company as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The following is a summary of actual capital amounts and ratios for the Company and the Bank compared to the requirements for minimum capital adequacy and classification as well capitalized. Actual and required capital amounts and ratios are presented below at year end (dollars in thousands): For To be Well Minimum Capital Capitalized under Capital Adequacy Prompt Corrective Conservation Actual Purposes Action Regulations Buffer Amount Ratio Amount Ratio Amount Ratio Ratio At December 31, 2023 The Company Tier 1 leverage ratio (Tier 1 capital to average assets) $ 722,844 10.6 % $ 274,064 4.0 % $ N/A N/A — % Tier 1 common equity (to risk-weighted assets) $ 702,224 11.5 % $ 274,867 4.5 % $ N/A N/A 2.5 % Tier 1 capital (to risk-weighted assets) $ 722,844 11.8 % $ 366,490 6.0 % $ N/A N/A 2.5 % Total capital (to risk-weighted assets) $ 781,991 12.8 % $ 488,653 8.0 % $ N/A N/A 2.5 % The Bank Tier 1 leverage ratio (Tier 1 capital to average assets) $ 703,823 10.3 % $ 274,055 4.0 % $ 342,569 5.0 % — % Tier 1 common equity (to risk-weighted assets) $ 703,823 11.5 % $ 274,838 4.5 % $ 396,989 6.5 % 2.5 % Tier 1 capital (to risk-weighted assets) $ 703,823 11.5 % $ 366,451 6.0 % $ 488,601 8.0 % 2.5 % Total capital (to risk-weighted assets) $ 762,969 12.5 % $ 488,601 8.0 % $ 610,752 10.0 % 2.5 % At December 31, 2022 The Company Tier 1 leverage ratio (Tier 1 capital to average assets) $ 641,082 10.2 % $ 250,963 4.0 % $ N/A N/A — % Tier 1 common equity (to risk-weighted assets) $ 620,462 12.1 % $ 230,879 4.5 % $ N/A N/A 2.5 % Tier 1 capital (to risk-weighted assets) $ 641,082 12.5 % $ 307,838 6.0 % $ N/A N/A 2.5 % Total capital (to risk-weighted assets) $ 686,139 13.4 % $ 410,451 8.0 % $ N/A N/A 2.5 % The Bank Tier 1 leverage ratio (Tier 1 capital to average assets) $ 628,825 10.0 % $ 250,920 4.0 % $ 313,650 5.0 % — % Tier 1 common equity (to risk-weighted assets) $ 628,825 12.3 % $ 230,815 4.5 % $ 333,399 6.5 % 2.5 % Tier 1 capital (to risk-weighted assets) $ 628,825 12.3 % $ 307,753 6.0 % $ 410,337 8.0 % 2.5 % Total capital (to risk-weighted assets) $ 673,876 13.1 % $ 410,337 8.0 % $ 512,922 10.0 % 2.5 % As a result of the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018, banking regulatory agencies adopted a revised definition of “well capitalized” for financial institutions and holding companies with assets of less than $10.0 billion and that are not determined to be ineligible by their primary federal regulator due to their risk profile (a “Qualifying Community Bank”). The definition expanded the ways that a Qualifying Community Bank may meet its capital requirements and be deemed “well capitalized.” The rule established a community bank leverage ratio (“CBLR”) equal to the tangible equity capital divided by the average total consolidated assets. Regulators established the CBLR at 8.5% through calendar year 2021 and 9% thereafter. The CARES Act temporarily reduced the CBLR to 8%. A Qualifying Community Bank that maintains a leverage ratio greater than 9% is considered to be well capitalized and to have met generally applicable leverage capital requirements, generally applicable risk-based capital requirements, and any other capital or leverage requirements to which such financial institution or holding company is subject. The Company and Bank intend to continue to measure capital adequacy using the ratios in the table above. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER COMMON SHARE | |
EARNINGS PER COMMON SHARE | NOTE 18 — EARNINGS PER COMMON SHARE The Company uses the two-class method in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common stockholders for the period are allocated between common stockholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share calculation are as follows (in thousands, except per share data). Year Ended December 31, 2023 2022 2021 Basic Net income per consolidated statements of income $ 77,268 $ 59,425 $ 60,555 Less: Earnings allocated to participating securities (365) (141) (739) Net income available to common stockholders $ 76,903 $ 59,284 $ 59,816 Weighted average common shares outstanding including participating securities 11,112,572 10,955,077 9,123,037 Less: Weighted average participating securities (52,462) (26,056) (111,337) Weighted average common shares outstanding 11,060,110 10,929,021 9,011,700 Basic earnings per common share 6.95 5.42 6.64 Diluted Net income allocated to common stockholders $ 76,903 $ 59,284 $ 59,816 Weighted average common shares outstanding for basic earnings per common share 11,060,110 10,929,021 9,011,700 Add: Dilutive effects of assumed exercise of stock options — 170,648 170,792 Add: Dilutive effects of assumed vesting of performance based restricted stock 69,790 56,711 51,581 Add: Dilutive effects of assumed vesting of restricted stock units — 43,804 38,749 Average shares and dilutive potential common shares 11,129,900 11,200,184 9,272,822 Dilutive earnings per common share $ 6.91 $ 5.29 $ 6.45 For the year ended December 31, 2023, 248,234 of restricted stock units were not considered in the calculation of diluted earnings per share as their inclusion would be anti-dilutive. All stock options, performance based restricted stock units and restrictive stock units were considered in computing diluted earnings per common share for the years ended December 31, 2022 and 2021. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 19 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in Accumulated Other Comprehensive Income (Loss) balances, net of tax effects at the dates indicated (in thousands): Total Accumulated Other AFS Cash Flow Comprehensive Securities Hedge Income (Loss) Balance at January 1, 2023 $ (61,834) $ 7,536 $ (54,298) Unrealized gain (loss) arising during the period, net of tax 7,149 (2,417) 4,732 Reclassification adjustment for gain included in net income, net of tax — (3,370) (3,370) Other comprehensive income (loss), net of tax 7,149 (5,787) 1,362 Balance at December 31, 2023 $ (54,685) $ 1,749 $ (52,936) Balance at January 1, 2022 $ (8,253) $ 749 $ (7,504) Unrealized gain (loss) arising during the period, net of tax (53,581) 8,137 (45,444) Reclassification adjustment for gain included in net income, net of tax — (1,350) (1,350) Other comprehensive income (loss), net of tax (53,581) 6,787 (46,794) Balance at December 31, 2022 $ (61,834) $ 7,536 $ (54,298) Balance at January 1, 2021 $ 2,283 $ (1,310) $ 973 Unrealized gain (loss) arising during the period, net of tax (10,124) 2,059 (8,065) Reclassification adjustment for gain included in net income, net of tax (412) — (412) Other comprehensive income (loss), net of tax (10,536) 2,059 (8,477) Balance at December 31, 2021 $ (8,253) $ 749 $ (7,504) The following table presents the tax effects allocated to each component of Accumulated Other Comprehensive Income (Loss) at the dates indicated (in thousands): Gross Tax Amount Component Total At December 31, 2023 Unrealized gain (loss) on AFS Securities $ (77,783) $ 23,098 $ (54,685) Unrealized gain (loss) on Cash Flow Hedges 2,574 (825) 1,749 Total ending other comprehensive income (loss) $ (75,209) $ 22,273 $ (52,936) At December 31, 2022 Unrealized gain (loss) on AFS Securities $ (88,918) $ 27,084 $ (61,834) Unrealized gain (loss) on Cash Flow Hedges 10,787 (3,251) 7,536 Total ending other comprehensive income (loss) $ (78,131) $ 23,833 $ (54,298) At December 31, 2021 Unrealized gain (loss) on AFS Securities $ (11,984) $ 3,731 $ (8,253) Unrealized gain (loss) on Cash Flow Hedges 1,032 (283) 749 Total ending other comprehensive income (loss) $ (10,952) $ 3,448 $ (7,504) The proceeds from sales and calls of securities during the years ended December 31, 2023, 2022 and 2021 were $0.0, $0.0 and $43.2 million, respectively. The following table shows the amounts reclassified out of each component of accumulated other comprehensive income for the realized gain on the sale of securities and the realized gain on cash flow hedges (in thousands): Affected line item in the Consolidated Statements Year Ended December 31, of Operations 2023 2022 2021 Realized gain on sale of AFS securities $ — $ — $ 609 Gain on Sale of Securities Income tax (expense) benefit — — (197) Income tax expense Total reclassifications, net of income tax $ — $ — $ 412 Realized gain on cash flow hedges $ 4,864 $ 1,949 $ — Licensing fees Income tax (expense) benefit (1,494) (599) — Income tax expense Total reclassifications, net of income tax $ 3,370 $ 1,350 $ — |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 20 – REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers that are in the scope of ASC 606, Revenue from Contracts with Customers are recognized in non-interest income. The following table presents the Company’s revenue from contracts with customers (in thousands): Year ended December 31, 2023 2022 2021 Service charges on deposit accounts $ 6,071 $ 5,747 $ 4,755 Global Payments Group revenue 19,005 19,341 16,445 Other service charges and fees 2,804 1,763 1,950 Total $ 27,880 $ 26,851 $ 23,150 A description of the Company’s revenue streams accounted for under the accounting guidance 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 is charged 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 | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVES | |
DERIVATIVES | NOTE 21 – DERIVATIVES On occasion, the Company enters into derivative contracts as a part of its asset liability management strategy to help manage its interest rate risk position. At December 31, 2023, these derivatives had a notional amount of $700.0 million and contractual maturities ranging from August 1, 2025 to September 23, 2025. The notional amount of the derivatives does not represent the amount exchanged by the parties. The derivatives 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 year ended December 31, 2023. The Company expects the hedges to remain highly effective during the remaining term of the derivatives. In addition, the Company periodically enters into certain commercial loan interest rate swap agreements to provide commercial loan customers the ability to convert loans 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 December 31, 2023, these interest rate swaps have a notional amount of $69.0 million and a contractual maturity of August 15, 2028. The following tables reflect the derivatives recorded on the balance sheet (in thousands): Fair Value Notional Other Other Amount Assets Liabilities At December 31, 2023 Derivatives designated as hedges: Interest rate swaps related to customer deposits and borrowings $ 700,000 $ 1,530 $ 4,880 Derivatives not designated as hedges: Interest rate swaps $ 69,000 $ 1,157 $ 1,157 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): Year ended December 31, 2023 2022 2021 Interest rate swaps and caps related to customer deposits and borrowings Amount of gain (loss) recognized in OCI, net of tax $ (2,355) $ 6,787 $ (1,311) Amount of gain (loss) reclassified from OCI into income $ 4,864 $ 1,949 $ — Location of gain (loss) reclassified from OCI into income Licensing fees N/A N/A |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY FINANCIAL INFORMATION | |
PARENT COMPANY FINANCIAL INFORMATION | NOTE 22 — PARENT COMPANY FINANCIAL INFORMATION Condensed financial information for the Company (parent company only) is as follows (in thousands): Condensed Statements of Financial Condition At December 31, 2023 2022 Assets Cash and due from banks $ 16,946 $ 9,476 Loans, net of allowance for credit losses — 776 Investments 620 620 Investment in subsidiary bank, at equity 660,620 584,522 Other assets 2,007 1,520 Total assets 680,193 596,914 Liabilities and Stockholders’ Equity Trust preferred securities 20,620 20,620 Other liabilities 552 397 Total liabilities 21,172 21,017 Stockholders’ Equity Common stock 111 109 Surplus 395,871 389,276 Retained earnings 315,975 240,810 Accumulated other comprehensive income (loss), net of tax (52,936) (54,298) Total equity 659,021 575,897 Total liabilities and stockholders’ equity $ 680,193 $ 596,914 Condensed Statements of Operations Year Ended December 31, 2023 2022 2021 Income Loans $ 3 $ 9 $ 14 Securities and money market funds 46 25 13 Total interest income 49 34 27 Interest expense Trust preferred securities 1,514 823 438 Subordinated debt — 605 1,618 Total interest expense 1,514 1,428 2,056 Net interest expense (1,465) (1,394) (2,029) Provision for credit losses 4 — — Net interest expense after provision for credit losses (1,461) (1,394) (2,029) Other expense 5,227 2,767 1,288 Loss before undistributed earnings of subsidiary bank (6,688) (4,161) (3,317) Equity in undistributed earnings of subsidiary bank 82,101 62,357 62,798 Income before income tax benefit 75,413 58,196 59,481 Income tax benefit 1,855 1,229 1,074 Net income $ 77,268 $ 59,425 $ 60,555 Comprehensive income $ 78,630 $ 12,631 $ 52,078 Condensed Statement of Cash Flows Year Ended December 31, 2023 2022 2021 Cash Flows From Operating Activities Net income $ 77,268 $ 59,425 $ 60,555 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Undistributed earnings of subsidiary bank (82,101) (62,357) (58,798) Cash dividend from subsidiary bank 5,000 — 4,000 Other operating adjustments 9,697 6,351 (746) Net cash provided by (used in) operating activities 9,864 3,419 5,011 Cash Flows From Investing Activities Investments in subsidiary bank — — (132,000) Proceeds from loan payments 776 — — Net cash provided by (used in) investing activities 776 — (132,000) Cash Flows From Financing Activities Redemption of common stock for tax withholdings for restricted stock vesting (3,170) (1,559) (3,385) Redemption of subordinated notes — (24,712) — Proceeds from issuance of common stock, net — — 162,687 Net cash provided by (used in) financing activities (3,170) (26,271) 159,302 Increase (decrease) in cash and cash equivalents 7,470 (22,852) 32,313 Cash and cash equivalents, beginning of year 9,476 32,328 15 Cash and cash equivalents, end of year $ 16,946 $ 9,476 $ 32,328 |
SUMMARY OF RECENT ACCOUNTING _2
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
Use of Estimates | Use of Estimates In preparing the 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. Actual results could differ from those estimated. Information available that could affect these judgements include, but are not limited to, changes in interest rates, changes in the performance of the economy, and changes in the financial condition of borrowers. |
Cash Flows | Cash Flows Cash and cash equivalents are defined as cash on hand and amounts due from banks and money market funds. Net cash flows are reported for customer loan and deposit transactions, and other investments. |
Securities | Securities Debt securities are classified as HTM and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as AFS when they might be sold before maturity. Securities classified as AFS are carried at fair value, with unrealized gains and losses reported in other comprehensive income, net of tax. Equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized using the level yield method without anticipating prepayments, except for MBS where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Gains and losses on sales of securities are recognized in the consolidated statements of operations upon sale. Effective January 1, 2023, the Company estimates and recognizes an ACL for HTM debt securities pursuant to ASC 326. The Company has a zero loss expectation for nearly all of its HTM securities portfolio, and has no ACL related to these securities. For the small portion of HTM securities portfolio that does not have a zero loss expectation, the ACL is based on the amortized cost of the securities, excluding interest receivable, and represents the portion of the amortized cost that the Company does not expect to collect over the life of the securities. 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 the collateral underlying the security. If it is determined that the decline in fair value was due to credit, 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. If the Company intends to sell the AFS security, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, the Company will write down the security’s amortized cost basis to its fair value, write off any existing ACL, and recognize any incremental impairment in net income. Prior to the adoption of ASC 326 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 was 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 were 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. |
Receivable from Global Payments Business, Net | Receivable from Global Payments Business, Net Receivables from the global payments business are short-term in nature and predominantly related to prepaid debit card programs. |
Revenue Recognition | Revenue Recognition Any revenues from contracts with customers, which are not exempt from the accounting requirements under ASC 606, Revenue from Contracts with Customers, are accounted for using the five-step method prescribed by the ASC. These revenue items are debit card income, service charges on deposit accounts and other service charges. In accordance with the ASC, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these services. The Company applies the following five steps to properly recognize revenue: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The majority of the Company’s revenue is derived from interest income on loans, which is not subject to the ASC. |
Licensing Fees | Licensing Fees Licensing fees on certain deposit accounts held by bankruptcy trustees are expensed as incurred. These accounts require the use of a software interface provided by a third party. Bankruptcy accounts subject to the licensing fees amounted to $312.2 million and $425.3 million at December 31, 2023 and 2022, respectively. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Transfers of financial assets that do not meet the criteria to be accounted for as sales are recorded as secured borrowings. |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances, adjusted for any charge-offs, and any deferred fees or costs on originated loans. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on loans is accrued and credited to operations based upon the principal amounts outstanding. Loans are normally placed on non-accrual 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. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on such loans are applied as a reduction of the loan principal balance when the collectability of principal, wholly or partially, is in doubt. Interest payments received may be recognized as interest income when the principal balance of the non-accrual loan is deemed to be collectible. Interest income is recognized when all the principal and interest amounts contractually due are brought current and the loans are returned to accrual status. The following loan portfolio segments have been identified: CRE, Construction, Multi-Family, One-to Four-Family, C&I, and Consumer. The risk characteristics of each of the identified portfolio segments are as follows: Commercial Real Estate — Construction — If the estimate of value proves to be inaccurate, the value of the building may be insufficient to assure full repayment if liquidation is required. If foreclosure is required on a building before or at completion due to a default, there can be no assurance that all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs will be recovered. Multi-family — One-to Four-Family — Commercial & Industrial — Consumer — 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. See “ , 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. The Company 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 model vendor 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 ASC 326 Prior to the adoption of ASC 326, 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 (ASC 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. See “ , 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. |
Goodwill | Goodwill Goodwill and certain other intangibles generally arise from business combinations accounted for under the purchase method of accounting. Goodwill and other intangibles deemed to have indefinite lives generated from business combinations are not subject to amortization and are instead tested for impairment not less than annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. The Company changed its annual goodwill impairment testing date from December 31 to October 1 to better align with the timing of our annual planning process. Accordingly, management determined that the change in accounting principle is preferable under the circumstance. This change has been applied starting with the October 1, 2022 impairment test. This change was not material to our consolidated financial statements as it did not delay, accelerate, or avoid any potential goodwill impairment charges. The goodwill of $9.7 million is associated with a purchase of the prepaid third-party debit card business. Based on the Company’s annual impairment assessments no impairment of goodwill existed as of October 1, 2023 and 2022. |
Stock-Based Compensation | Stock-Based Compensation Compensation cost is recognized for stock options, restricted stock awards and restricted stock units, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of options. The market price of the Company’s common stock at the date of grant is used for restricted stock awards and restricted stock units. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with time-based vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company also awards PRSUs to certain employees. The PRSUs are classified as either equity or a liability, depending on certain criteria provided in ASC 718, Stock Based Compensation. This classification affects whether the measurement of fair value is fixed (i.e., measured only once) on the grant date or whether fair value will be remeasured each reporting period until settled. On the grant date, the estimate of equity-classified awards’ fair value would be fixed, the cumulative amount of previously recognized compensation cost would be adjusted, and the Company would no longer have to remeasure the award. If the award is liability-classified, the awards would continue to be marked to fair value each reporting period until settlement. The Company recognizes compensation cost for awards with performance conditions if and when it concludes that it is probable that the performance conditions will be achieved. The Company assesses the probability of vesting (i.e., that the performance conditions will be met) at each reporting period and, if required, adjusts compensation cost based on its probability assessment. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of temporary cash investments including due from banks, interest-bearing deposits with banks and real estate loans receivable. A significant portion of real estate loans are collateralized by property in the New York metropolitan area. The ultimate collectability of these loans may be susceptible to changes in the real estate market in this area. |
Leases | Leases As of December 31, 2022, the Company follows ASC 842, Leases. The Company’s real estate leases are recognized as operating leases. The related ROU lease assets and liabilities are recognized to reflect our right to use the underlying assets and contractual obligations associated with future rent payments. ROU assets are included in other assets and lease liabilities are included in other liabilities on the consolidated statements of financial condition. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. On a periodic basis, ROU assets are assessed for impairment and an impairment loss would be recognized if the carrying amount of the ROU asset is not recoverable. See “ , Prior to 2022, operating leases were not recognized on the Company’s consolidated statements of financial condition. Operating lease expense for lease payments were recognized on a straight-line basis over the lease term in the Company’s consolidated statements of operations. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed over the estimated useful lives of the assets by the straight-line method with useful lives ranging from three |
Other Investments | Other Investments Other investments include FRB and FHLB stock. The Company is a member of the FRB and the FHLB systems. FHLB members are required to own membership stock and purchase activity-based stock that is based on the level of outstanding borrowings. FRB and FHLB stock are carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Company held FRB and FHLB stock of $11.4 million and $25.6 million, respectively, as of December 31, 2023. As of December 31, 2022, the Company held FRB and FHLB stock of $11.4 million and $9.2 million, respectively. Other investments at December 31, 2023 and 2022 also includes a $1.5 million and $1.0 million investment in The Disability Opportunity Fund, respectively, which is an equity equivalent investment in a community development financial institution. |
Derivatives | Derivatives On occasion, the Company enters into derivative contracts as a part of its asset liability management strategy to help manage its interest rate risk position. The derivatives are designated as cash flow hedges. A cash flow hedge is a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in accumulated other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of the derivative that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. The amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedged transactions at the inception of the hedging relationship. The documentation includes linking the cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions or group of forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, or treatment of the derivative as a hedge is no longer appropriate or intended. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were in accumulated other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. If the forecasted transaction is deemed probable to not occur, the derivative gain or loss reported in accumulated other comprehensive income is reclassified into current earnings. The Company also periodically enters into certain commercial loan interest rate swap agreements to provide commercial loan customers the ability to convert loans from variable to fixed interest rates. These derivative instruments are marked to market in earnings with changes in fair value reported as non-interest income. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses and reclassification to earnings related to AFS securities and unrealized gain (loss) related to the cash flow hedges. |
Restrictions on Cash | Restrictions on Cash At December 31, 2023 and 2022, Overnight deposits included $236.4 million and $226.7 million, respectively, of cash on hand or on deposit with the FRB to meet regulatory reserve and clearing requirements. Also included in cash was $11.5 million and $13.3 million of cash held in escrow and collateral accounts for third-party debit card program managers at December 31, 2023 and 2022, respectively. Additionally, there was $726,000 and $693,000 of cash pledged for a related collateral account at December 31, 2023 and 2022, respectively. |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding during the applicable period, including outstanding participating securities. Diluted earnings per common share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. Unvested share-based awards and preferred shares that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. |
Income Taxes | Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. A valuation allowance is recorded, as necessary, to reduce deferred tax assets to an estimated amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of liquid markets for certain items. Changes in assumptions or in market conditions could significantly affect the estimates. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
Reclassifications | Reclassifications 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. |
Operating Segment | Operating Segment While department heads monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENT SECURITIES | |
Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity | The following tables summarizes 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 December 31, 2023 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,997 $ — $ (6,222) $ 61,775 U.S. State and Municipal securities 11,496 — (1,797) 9,699 Residential MBS 419,331 1,198 (68,609) 351,920 Commercial MBS 36,879 71 (2,366) 34,584 Asset-backed securities 3,287 — (58) 3,229 Total securities available-for-sale $ 538,990 $ 1,269 $ (79,052) $ 461,207 Held-to-Maturity Securities: U.S. Treasury securities $ 29,895 $ — $ (1,412) $ 28,483 U.S. State and Municipal securities 15,569 — (1,574) 13,995 Residential MBS 415,306 — (60,556) 354,750 Commercial MBS 8,090 — (1,066) 7,024 Total securities held-to-maturity $ 468,860 $ — $ (64,608) $ 404,252 Equity Investments: CRA Mutual Fund $ 2,410 $ — $ (287) $ 2,123 Total equity investment securities $ 2,410 $ — $ (287) $ 2,123 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 proceeds from sales and calls of securities and associated gains | The following table summarizes the proceeds and associated gains and (losses) from sales and calls of securities (in thousands): Year ended December 31, 2023 2022 2021 Proceeds $ — $ — $ 43,241 Gross gains $ — $ — $ 609 Tax impact $ — $ — $ (197) |
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 investment 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 December 31, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 37,984 35,507 65,822 60,757 After 5 years through 10 years 1,112 1,044 22,163 21,174 After 10 years 429,764 367,701 451,005 379,276 Total Securities $ 468,860 $ 404,252 $ 538,990 $ 461,207 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 December 31, 2023, debt securities with unrealized/unrecognized 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, 2023 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: U.S. Government agency securities $ — $ — $ 61,775 $ (6,222) $ 61,775 $ (6,222) U.S. State and Municipal securities — — 9,699 (1,797) 9,699 (1,797) Residential MBS — — 292,970 (68,609) 292,970 (68,609) Commercial MBS 10,873 (198) 13,322 (2,168) 24,195 (2,366) Asset-backed securities — — 3,229 (58) 3,229 (58) Total securities available-for-sale $ 10,873 $ (198) $ 380,995 $ (78,854) $ 391,868 $ (79,052) Held-to-Maturity Securities: U.S. Treasury securities $ — $ — $ 28,483 $ (1,412) $ 28,483 $ (1,412) U.S. State and Municipal securities — — 13,995 (1,574) 13,995 (1,574) Residential MBS — — 354,750 (60,556) 354,750 (60,556) Commercial MBS — — 7,024 (1,066) 7,024 (1,066) Total securities held-to-maturity $ — $ — $ 404,252 $ (64,608) $ 404,252 $ (64,608) At December 31, 2022, debt securities with unrealized/unrecognized 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 (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loans and Leases Receivable Disclosure [Line Items] | |
Schedule of net loans | Loans, net of deferred fees and costs, consist of the following (in thousands): At December 31, At December 31, 2023 2022 Real estate Commercial $ 3,857,711 $ 3,254,508 Construction 153,512 143,693 Multi-family 467,536 468,540 One-to four-family 94,704 53,207 Total real estate loans 4,573,463 3,919,948 Commercial and industrial 1,051,463 908,616 Consumer 17,086 24,931 Total loans 5,642,012 4,853,495 Deferred fees, net of origination costs (17,215) (12,972) Loans, net of deferred fees and costs 5,624,797 4,840,523 Allowance for credit losses (57,965) (44,876) Net loans $ 5,566,832 $ 4,795,647 |
Schedule of changes in the allowance for loan losses by portfolio segment | The following tables present the activity in the ACL by segment. The portfolio segments represent the categories that the Company uses to determine its ACL (in thousands): Commercial Commercial One-to four- Year ended December 31, 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 6,091 1,408 (642) 4,687 377 137 12,058 Loans charged-off — (946) — — — (273) (1,219) Recoveries — — — — — — — Total ending allowance balance $ 35,635 $ 11,207 $ 1,765 $ 8,215 $ 663 $ 480 $ 57,965 Commercial Commercial One-to four- Year ended December 31, 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 7,280 2,540 (122) 667 (35) (214) 10,116 Loans charged-off — — — — — — — Recoveries — 26 — — — 5 31 Total ending allowance balance $ 29,496 $ 10,274 $ 1,983 $ 2,823 $ 105 $ 195 $ 44,876 |
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 impairment method (in thousands): Commercial Commercial One-to four- At December 31, 2023 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Individually assessed $ — $ — $ — $ 5,002 $ — $ 64 $ 5,066 Collectively assessed 35,635 11,207 1,765 3,213 663 416 52,899 Total ending allowance balance $ 35,635 $ 11,207 $ 1,765 $ 8,215 $ 663 $ 480 $ 57,965 Loans: Individually assessed $ 40,955 $ 6,934 $ — $ 20,939 $ — $ 104 $ 68,932 Collectively assessed 3,816,756 1,044,529 153,512 446,597 94,704 16,982 5,573,080 Total ending loan balance $ 3,857,711 $ 1,051,463 $ 153,512 $ 467,536 $ 94,704 $ 17,086 $ 5,642,012 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, 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 December 31, 2023 Nonaccrual ACL Still Accruing Commercial real estate $ 24,000 $ 24,000 $ — Commercial & industrial 6,934 6,934 — Multi-family 20,939 — — Consumer 24 — — Total $ 51,897 $ 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 table presents 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 December 31, 2023 Days Days greater due loans Total Commercial real estate $ — $ — $ 24,000 $ 24,000 $ 3,833,711 $ 3,857,711 Commercial & industrial 20 18 6,934 6,973 1,044,490 1,051,463 Construction — — — — 153,512 153,512 Multi-family — — 20,939 20,939 446,597 467,536 One-to four-family 612 — — 612 94,092 94,704 Consumer — — 24 24 17,062 17,086 Total $ 632 $ 18 $ 51,897 $ 52,548 $ 5,589,464 $ 5,642,012 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 December 31, 2023 (in thousands): 2023 2022 2021 2020 2019 2018 & Prior Revolving Total CRE Pass $ 1,500,873 $ 1,268,550 $ 512,497 $ 128,320 $ 200,304 $ 83,309 $ 44,672 $ 3,738,525 Special Mention 24,500 38,867 14,561 304 — — — 78,232 Substandard — 40,954 — — — — — 40,954 Total $ 1,525,373 $ 1,348,371 $ 527,058 $ 128,624 $ 200,304 $ 83,309 $ 44,672 $ 3,857,711 Construction Pass $ 84,881 $ 56,065 $ — $ — $ — $ — $ 12,566 $ 153,512 Total $ 84,881 $ 56,065 $ — $ — $ — $ — $ 12,566 $ 153,512 Multi-family Pass $ 115,761 $ 114,652 $ 51,768 $ 23,655 $ 34,533 $ 69,510 $ 6,415 $ 416,294 Special Mention — 30,303 — — — — — 30,303 Substandard — — 20,939 — — — — 20,939 Total $ 115,761 $ 144,955 $ 72,707 $ 23,655 $ 34,533 $ 69,510 $ 6,415 $ 467,536 One-to four-family Current $ 45,000 $ 4,081 $ — $ 9,784 $ 12,157 $ 23,682 $ — $ 94,704 Total $ 45,000 $ 4,081 $ — $ 9,784 $ 12,157 $ 23,682 $ — $ 94,704 Commercial and industrial Pass $ 178,814 $ 252,359 $ 98,753 $ 23,943 $ 14,390 $ 5,904 $ 402,247 $ 976,410 Special Mention 3,840 33,918 — 2,080 — — 28,281 68,119 Substandard 3,435 — — — — — 3,499 6,934 Total $ 186,089 $ 286,277 $ 98,753 $ 26,023 $ 14,390 $ 5,904 $ 434,027 $ 1,051,463 Consumer Current $ — $ — $ — $ — $ — $ 17,062 $ — $ 17,062 Past due — — — — — 24 — 24 Total $ — $ — $ — $ — $ — $ 17,086 $ — $ 17,086 Charge-offs Commercial and industrial $ — $ — $ 915 $ — $ — $ 31 $ — $ 946 Consumer — — — — — 273 — 273 $ — $ — $ 915 $ — $ — $ 304 $ — $ 1,219 The following tables present loans individually evaluated for impairment pursuant to the disclosure requirements prior to the adoption of ASC 326 on January 1, 2023 (in thousands). 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 At December 31, 2022 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 (in thousands). The recorded investment in loans excludes accrued interest receivable and loan origination fees. At December 31, 2022 Year ended December 31, 2022 Allowance Unpaid for Loan Average Interest Principal Recorded Losses Recorded Income Balance Investment Allocated Investment Recognized With an allowance recorded: Consumer $ 24 $ 24 $ 24 $ 79 $ — Total $ 24 $ 24 $ 24 $ 79 $ — Without an allowance recorded: One-to four-family $ 1,176 $ 899 $ — $ 832 $ 31 CRE 27,984 26,740 — 30,142 1,041 Total $ 29,160 $ 27,639 $ — $ 30,974 $ 1,072 At December 31, 2021 Year ended December 31, 2021 Allowance Unpaid for Loan Average Interest Principal Recorded Losses Recorded Income Balance Investment Allocated Investment Recognized With an allowance recorded: One-to four-family $ 577 $ 447 $ 26 $ 462 $ 21 Consumer 302 302 170 1,766 84 C&I — — — 2,726 — Total $ 879 $ 749 $ 196 $ 4,954 $ 105 Without an allowance recorded: One-to four-family $ 646 $ 499 $ — $ 509 $ 26 CRE 38,518 38,518 — 15,975 325 C&I — — — 77 — Total $ 39,164 $ 39,017 $ — $ 16,561 $ 351 |
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): Year ended December 31, 2023 2022 Balance at the beginning of period $ 180 $ 180 Cumulative effect of changes in accounting principle 777 — Provision/(credit) for credit losses 225 — Total ending allowance balance $ 1,182 $ 180 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
Schedule of components of lease costs | The Company leases its corporate office, banking centers and loan production offices. The following tables present the Company’s lease cost and other information related to its operating leases (dollars in thousands): At December 31, 2023 2022 Supplemental balance sheet information: Lease assets $ 42,245 $ 44,339 Lease liabilities $ 46,430 $ 48,364 Weighted average remaining lease term in years 10.5 11.2 Weighted average discount rate 2.44 % 2.26 % Components of lease cost: Operating lease cost $ 5,290 $ 5,405 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 5,191 $ 4,864 Non-cash activity related to lease assets: Lease assets obtained from new operating lease liabilities $ 2,036 $ — |
Schedule of remaining maturity of lease liabilities as well as the reconciliation of undiscounted lease payments to the discounted operating lease liabilities | The following table presents the remaining maturity of lease liabilities as well as the reconciliation of undiscounted lease payments to the discounted operating lease liabilities (in thousands): At December 31, 2023 2022 Lease liabilities maturing in: 2024 $ 5,012 $ 5,202 2025 5,257 4,976 2026 5,274 4,990 2027 4,899 5,008 2028 4,486 4,632 Thereafter 27,953 30,276 Total $ 52,881 $ 55,084 Less: Present value discount (6,451) (6,720) Total lease liabilities $ 46,430 $ 48,364 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PREMISES AND EQUIPMENT | |
Schedule of premises and equipment | Premises and equipment are summarized as follows (in thousands): At December 31, 2023 2022 Furniture and Equipment $ 16,175 $ 14,451 Land, buildings and improvements 13,479 13,479 Leasehold Improvements 24,636 20,595 Total Premises and Equipment 54,290 48,525 Less accumulated depreciation and amortization (19,225) (16,656) Total Premises and Equipment, net $ 35,065 $ 31,869 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DEPOSITS | |
Schedule of deposits | Deposits consisted of the following (in thousands): At December 31, 2023 2022 Noninterest bearing demand accounts $ 1,837,874 $ 2,422,151 Money market 3,856,975 2,792,554 Savings accounts 7,043 11,144 Time deposits 35,400 52,063 Total deposits $ 5,737,292 $ 5,277,912 |
Schedule of time deposits maturities | The following table presents the scheduled annual maturities of time deposits (in thousands): At December 31, 2023 2024 $ 31,835 2025 2,614 2026 349 2027 479 2028 123 Total time deposits $ 35,400 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BORROWINGS | |
Schedule of federal funds purchased and FHLBNY advances | Federal funds purchased and FHLBNY advances consisted of the following (in thousands): Interest Expense At December 31, At December 31, Year Ended December 31, 2023 2022 2023 2022 2021 Federal funds purchased and securities sold under agreements to repurchase $ 99,000 $ 150,000 $ 5,651 $ 601 $ — Federal Home Loan Bank of New York advances $ 440,000 $ 100,000 $ 17,321 $ 292 $ — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of components of income taxes | Income tax expense consisted of the following (in thousands): Year Ended December 31, 2023 2022 2021 Current Federal $ 21,503 $ 27,311 $ 16,883 State and local 10,947 14,162 12,252 Total current 32,450 41,473 29,135 Deferred Federal (2,662) (1,919) (405) State and local (138) (2,081) 285 Total deferred (2,800) (4,000) (120) Total income tax expense $ 29,650 $ 37,473 $ 29,015 |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities consist of the following (in thousands): At December 31, 2023 2022 Deferred tax assets: Allowance for credit losses $ 17,219 $ 13,698 Lease liabilities 13,793 14,782 Net unrealized loss on securities available for sale 23,098 27,084 Off balance sheet reserves 351 55 Restricted stock 1,666 1,140 Tangible asset 3 7 Non-qualified stock options — 285 Other 147 95 Total gross deferred tax assets 56,277 57,146 Deferred tax liabilities: Right of use lease asset 12,550 13,551 Depreciation and amortization 4,024 4,390 Net unrealized gain on interest rate derivatives 825 3,302 Prepaid assets 748 548 Other — — Total gross deferred tax liabilities 18,147 21,791 Net deferred tax asset, included in other assets $ 38,130 $ 35,355 |
Schedule of reconciliation of statutory federal income tax rate | The following is a reconciliation of the Company’s statutory federal income tax rate to its effective tax rate (in thousands): For the year ended December 31, 2023 2022 2021 Tax expense/ Tax expense/ Tax expense/ (benefit) Rate (benefit) Rate (benefit) Rate Pretax income at statutory rates $ 22,453 21.00 % $ 20,349 21.00 % $ 18,810 21.00 % State and local taxes, net of federal income tax benefit 8,539 7.99 9,544 9.85 9,904 11.06 Nondeductible expenses (940) (0.88) 8,175 8.44 680 0.76 Equity compensation (1,063) (0.99) (302) (0.31) (467) (0.52) Tax-exempt income, net (104) (0.10) (106) (0.11) (51) (0.06) Other 765 0.71 (187) (0.20) 139 0.15 Effective income tax expense/rate $ 29,650 27.73 % $ 37,473 38.67 % $ 29,015 32.39 % |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) At December 31, 2023 U.S. Government agency securities $ 61,775 $ — $ 61,775 $ — U.S. State and Municipal securities 9,699 — 9,699 — Residential mortgage securities 351,920 — 351,920 — Commercial mortgage securities 34,584 — 34,584 — Asset-backed securities 3,229 — 3,229 — CRA Mutual Fund 2,123 2,123 — — Derivative assets 2,687 — 2,687 — Derivative liabilities 6,037 — 6,037 — 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 assets and liabilities measured on a non-recurring basis | Carrying amount and estimated fair values of financial instruments not carried at fair value were as follows (in thousands): Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At December 31, 2023 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 31,973 $ 31,973 $ — $ — $ 31,973 Overnight deposits 237,492 237,492 — — 237,492 Securities held-to-maturity 468,860 — 404,252 — 404,252 Loans, net 5,566,832 — — 5,474,238 5,474,238 Other investments FRB Stock 11,410 N/A N/A N/A N/A FHLB Stock 25,558 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 87,648 — — 87,648 87,648 Accrued interest receivable 31,948 — 2,007 29,941 31,948 Financial Liabilities: Non-interest-bearing demand deposits $ 1,837,874 $ 1,837,874 $ — $ — $ 1,837,874 Money market and savings deposits 3,864,018 3,864,018 — — 3,864,018 Time deposits 35,400 — 35,011 — 35,011 Federal funds purchased 99,000 — 99,000 — 99,000 Federal Home Loan Bank of New York advances 440,000 — 440,000 — 440,000 Trust preferred securities payable 20,620 — — 20,007 20,007 Prepaid debit cardholder balances 10,178 — — 10,178 10,178 Accrued interest payable 1,894 1,028 475 391 1,894 Secured borrowings 7,585 — 7,585 — 7,585 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 |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
STOCK COMPENSATION PLAN | |
Schedule of status of the stock option plan | Year ended December 31, 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 | Year ended December 31, 2023 December 31, 2022 December 31, 2021 Weighted Weighted Weighted Average Average Average Number of Grant Date Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Shares Fair Value Outstanding, beginning of period 129,562 $ 86.01 90,999 $ 47.35 76,289 $ 37.01 Granted 198,498 56.04 83,151 102.49 78,582 50.80 Forfeited (29,218) 62.53 (578) 92.44 (10,200) 48.09 Vested (64,990) 84.28 (44,010) 37.12 (53,672) 37.57 Outstanding at end of period 233,852 $ 63.98 129,562 $ 86.01 90,999 $ 47.35 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2023 At December 31, 2022 Fixed Variable Fixed Variable Rate Rate Rate Rate Unused commitments $ 67,418 $ 527,730 $ 40,685 $ 364,908 Standby and commercial letters of credit 59,532 — 53,947 — $ 126,950 $ 527,730 $ 94,632 $ 364,908 |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REGULATORY CAPITAL | |
Schedule of requirements for minimum capital adequacy and classification | Actual and required capital amounts and ratios are presented below at year end (dollars in thousands): For To be Well Minimum Capital Capitalized under Capital Adequacy Prompt Corrective Conservation Actual Purposes Action Regulations Buffer Amount Ratio Amount Ratio Amount Ratio Ratio At December 31, 2023 The Company Tier 1 leverage ratio (Tier 1 capital to average assets) $ 722,844 10.6 % $ 274,064 4.0 % $ N/A N/A — % Tier 1 common equity (to risk-weighted assets) $ 702,224 11.5 % $ 274,867 4.5 % $ N/A N/A 2.5 % Tier 1 capital (to risk-weighted assets) $ 722,844 11.8 % $ 366,490 6.0 % $ N/A N/A 2.5 % Total capital (to risk-weighted assets) $ 781,991 12.8 % $ 488,653 8.0 % $ N/A N/A 2.5 % The Bank Tier 1 leverage ratio (Tier 1 capital to average assets) $ 703,823 10.3 % $ 274,055 4.0 % $ 342,569 5.0 % — % Tier 1 common equity (to risk-weighted assets) $ 703,823 11.5 % $ 274,838 4.5 % $ 396,989 6.5 % 2.5 % Tier 1 capital (to risk-weighted assets) $ 703,823 11.5 % $ 366,451 6.0 % $ 488,601 8.0 % 2.5 % Total capital (to risk-weighted assets) $ 762,969 12.5 % $ 488,601 8.0 % $ 610,752 10.0 % 2.5 % At December 31, 2022 The Company Tier 1 leverage ratio (Tier 1 capital to average assets) $ 641,082 10.2 % $ 250,963 4.0 % $ N/A N/A — % Tier 1 common equity (to risk-weighted assets) $ 620,462 12.1 % $ 230,879 4.5 % $ N/A N/A 2.5 % Tier 1 capital (to risk-weighted assets) $ 641,082 12.5 % $ 307,838 6.0 % $ N/A N/A 2.5 % Total capital (to risk-weighted assets) $ 686,139 13.4 % $ 410,451 8.0 % $ N/A N/A 2.5 % The Bank Tier 1 leverage ratio (Tier 1 capital to average assets) $ 628,825 10.0 % $ 250,920 4.0 % $ 313,650 5.0 % — % Tier 1 common equity (to risk-weighted assets) $ 628,825 12.3 % $ 230,815 4.5 % $ 333,399 6.5 % 2.5 % Tier 1 capital (to risk-weighted assets) $ 628,825 12.3 % $ 307,753 6.0 % $ 410,337 8.0 % 2.5 % Total capital (to risk-weighted assets) $ 673,876 13.1 % $ 410,337 8.0 % $ 512,922 10.0 % 2.5 % |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER COMMON SHARE | |
Schedule of earnings per share | The factors used in the earnings per share calculation are as follows (in thousands, except per share data). Year Ended December 31, 2023 2022 2021 Basic Net income per consolidated statements of income $ 77,268 $ 59,425 $ 60,555 Less: Earnings allocated to participating securities (365) (141) (739) Net income available to common stockholders $ 76,903 $ 59,284 $ 59,816 Weighted average common shares outstanding including participating securities 11,112,572 10,955,077 9,123,037 Less: Weighted average participating securities (52,462) (26,056) (111,337) Weighted average common shares outstanding 11,060,110 10,929,021 9,011,700 Basic earnings per common share 6.95 5.42 6.64 Diluted Net income allocated to common stockholders $ 76,903 $ 59,284 $ 59,816 Weighted average common shares outstanding for basic earnings per common share 11,060,110 10,929,021 9,011,700 Add: Dilutive effects of assumed exercise of stock options — 170,648 170,792 Add: Dilutive effects of assumed vesting of performance based restricted stock 69,790 56,711 51,581 Add: Dilutive effects of assumed vesting of restricted stock units — 43,804 38,749 Average shares and dilutive potential common shares 11,129,900 11,200,184 9,272,822 Dilutive earnings per common share $ 6.91 $ 5.29 $ 6.45 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Schedule of changes in accumulated other comprehensive income (loss), net of tax | The following table summarizes the changes in Accumulated Other Comprehensive Income (Loss) balances, net of tax effects at the dates indicated (in thousands): Total Accumulated Other AFS Cash Flow Comprehensive Securities Hedge Income (Loss) Balance at January 1, 2023 $ (61,834) $ 7,536 $ (54,298) Unrealized gain (loss) arising during the period, net of tax 7,149 (2,417) 4,732 Reclassification adjustment for gain included in net income, net of tax — (3,370) (3,370) Other comprehensive income (loss), net of tax 7,149 (5,787) 1,362 Balance at December 31, 2023 $ (54,685) $ 1,749 $ (52,936) Balance at January 1, 2022 $ (8,253) $ 749 $ (7,504) Unrealized gain (loss) arising during the period, net of tax (53,581) 8,137 (45,444) Reclassification adjustment for gain included in net income, net of tax — (1,350) (1,350) Other comprehensive income (loss), net of tax (53,581) 6,787 (46,794) Balance at December 31, 2022 $ (61,834) $ 7,536 $ (54,298) Balance at January 1, 2021 $ 2,283 $ (1,310) $ 973 Unrealized gain (loss) arising during the period, net of tax (10,124) 2,059 (8,065) Reclassification adjustment for gain included in net income, net of tax (412) — (412) Other comprehensive income (loss), net of tax (10,536) 2,059 (8,477) Balance at December 31, 2021 $ (8,253) $ 749 $ (7,504) The following table presents the tax effects allocated to each component of Accumulated Other Comprehensive Income (Loss) at the dates indicated (in thousands): Gross Tax Amount Component Total At December 31, 2023 Unrealized gain (loss) on AFS Securities $ (77,783) $ 23,098 $ (54,685) Unrealized gain (loss) on Cash Flow Hedges 2,574 (825) 1,749 Total ending other comprehensive income (loss) $ (75,209) $ 22,273 $ (52,936) At December 31, 2022 Unrealized gain (loss) on AFS Securities $ (88,918) $ 27,084 $ (61,834) Unrealized gain (loss) on Cash Flow Hedges 10,787 (3,251) 7,536 Total ending other comprehensive income (loss) $ (78,131) $ 23,833 $ (54,298) At December 31, 2021 Unrealized gain (loss) on AFS Securities $ (11,984) $ 3,731 $ (8,253) Unrealized gain (loss) on Cash Flow Hedges 1,032 (283) 749 Total ending other comprehensive income (loss) $ (10,952) $ 3,448 $ (7,504) |
Schedule of reclassifications out of accumulated other comprehensive income | The following table shows the amounts reclassified out of each component of accumulated other comprehensive income for the realized gain on the sale of securities and the realized gain on cash flow hedges (in thousands): Affected line item in the Consolidated Statements Year Ended December 31, of Operations 2023 2022 2021 Realized gain on sale of AFS securities $ — $ — $ 609 Gain on Sale of Securities Income tax (expense) benefit — — (197) Income tax expense Total reclassifications, net of income tax $ — $ — $ 412 Realized gain on cash flow hedges $ 4,864 $ 1,949 $ — Licensing fees Income tax (expense) benefit (1,494) (599) — Income tax expense Total reclassifications, net of income tax $ 3,370 $ 1,350 $ — |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 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): Year ended December 31, 2023 2022 2021 Service charges on deposit accounts $ 6,071 $ 5,747 $ 4,755 Global Payments Group revenue 19,005 19,341 16,445 Other service charges and fees 2,804 1,763 1,950 Total $ 27,880 $ 26,851 $ 23,150 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2023 Derivatives designated as hedges: Interest rate swaps related to customer deposits and borrowings $ 700,000 $ 1,530 $ 4,880 Derivatives not designated as hedges: Interest rate swaps $ 69,000 $ 1,157 $ 1,157 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): Year ended December 31, 2023 2022 2021 Interest rate swaps and caps related to customer deposits and borrowings Amount of gain (loss) recognized in OCI, net of tax $ (2,355) $ 6,787 $ (1,311) Amount of gain (loss) reclassified from OCI into income $ 4,864 $ 1,949 $ — Location of gain (loss) reclassified from OCI into income Licensing fees N/A N/A |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | Condensed Statements of Financial Condition At December 31, 2023 2022 Assets Cash and due from banks $ 16,946 $ 9,476 Loans, net of allowance for credit losses — 776 Investments 620 620 Investment in subsidiary bank, at equity 660,620 584,522 Other assets 2,007 1,520 Total assets 680,193 596,914 Liabilities and Stockholders’ Equity Trust preferred securities 20,620 20,620 Other liabilities 552 397 Total liabilities 21,172 21,017 Stockholders’ Equity Common stock 111 109 Surplus 395,871 389,276 Retained earnings 315,975 240,810 Accumulated other comprehensive income (loss), net of tax (52,936) (54,298) Total equity 659,021 575,897 Total liabilities and stockholders’ equity $ 680,193 $ 596,914 |
Schedule of condensed statements of income | Condensed Statements of Operations Year Ended December 31, 2023 2022 2021 Income Loans $ 3 $ 9 $ 14 Securities and money market funds 46 25 13 Total interest income 49 34 27 Interest expense Trust preferred securities 1,514 823 438 Subordinated debt — 605 1,618 Total interest expense 1,514 1,428 2,056 Net interest expense (1,465) (1,394) (2,029) Provision for credit losses 4 — — Net interest expense after provision for credit losses (1,461) (1,394) (2,029) Other expense 5,227 2,767 1,288 Loss before undistributed earnings of subsidiary bank (6,688) (4,161) (3,317) Equity in undistributed earnings of subsidiary bank 82,101 62,357 62,798 Income before income tax benefit 75,413 58,196 59,481 Income tax benefit 1,855 1,229 1,074 Net income $ 77,268 $ 59,425 $ 60,555 Comprehensive income $ 78,630 $ 12,631 $ 52,078 |
Schedule of condensed statement of cash flows | Condensed Statement of Cash Flows Year Ended December 31, 2023 2022 2021 Cash Flows From Operating Activities Net income $ 77,268 $ 59,425 $ 60,555 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Undistributed earnings of subsidiary bank (82,101) (62,357) (58,798) Cash dividend from subsidiary bank 5,000 — 4,000 Other operating adjustments 9,697 6,351 (746) Net cash provided by (used in) operating activities 9,864 3,419 5,011 Cash Flows From Investing Activities Investments in subsidiary bank — — (132,000) Proceeds from loan payments 776 — — Net cash provided by (used in) investing activities 776 — (132,000) Cash Flows From Financing Activities Redemption of common stock for tax withholdings for restricted stock vesting (3,170) (1,559) (3,385) Redemption of subordinated notes — (24,712) — Proceeds from issuance of common stock, net — — 162,687 Net cash provided by (used in) financing activities (3,170) (26,271) 159,302 Increase (decrease) in cash and cash equivalents 7,470 (22,852) 32,313 Cash and cash equivalents, beginning of year 9,476 32,328 15 Cash and cash equivalents, end of year $ 16,946 $ 9,476 $ 32,328 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | 12 Months Ended | |||||
Oct. 01, 2023 USD ($) | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Jan. 01, 2023 USD ($) | Jan. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Bankruptcy accounts subject to the licensing fees | $ 312,200,000 | $ 425,300,000 | ||||
Goodwill | 9,700,000 | |||||
Impairment of goodwill | $ 0 | 0 | ||||
Investment in Disability Opportunity Fund | 1,500,000 | 1,000,000 | ||||
Investment in FRB | 11,400,000 | 11,400,000 | ||||
Investment in FHLB | 25,600,000 | 9,200,000 | ||||
Deposit with Federal Reserve Bank | 236,400,000 | 226,700,000 | ||||
Cash pledged as collateral | 726,000 | 693,000 | ||||
Escrow deposit | $ 11,500,000 | 13,300,000 | ||||
Number of reportable operating segment | segment | 1 | |||||
Loan commitments | $ 57,965,000 | 44,876,000 | $ 34,729,000 | |||
Retained earnings | $ 315,975,000 | 240,810,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Loan commitments | $ 2,250,000 | |||||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-02 | ||||||
Retained earnings | $ 0 | |||||
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 | |||||
Minimum | ||||||
Premises and equipment useful life | 3 years | |||||
Maximum | ||||||
Premises and equipment useful life | 30 years |
SUMMARY OF RECENT ACCOUNTING _3
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) | Jan. 01, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Lease assets | $ 42,245,000 | $ 44,339,000 | |||
Lease liabilities | 46,430,000 | 48,364,000 | |||
Retained earnings | 315,975,000 | 240,810,000 | |||
Cumulative effect of changes in accounting principle | $ 57,965,000 | 44,876,000 | $ 34,729,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Cumulative effect of changes in accounting principle | $ 2,250,000 | ||||
ASU 2016-02 | |||||
Lease assets | $ 44,300,000 | ||||
Lease liabilities | 48,400,000 | ||||
Right-of-use asset obtained in exchange for operating lease liability | 4,100,000 | ||||
ASU 2016-02 | Cumulative Effect, Period of Adoption, Adjustment | |||||
Retained earnings | $ 0 | ||||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||||
Retained earnings | $ 2,100,000 | ||||
Deferred tax assets | 777,000 | ||||
Cumulative effect of changes in accounting principle | $ 3,000,000 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities available-for-sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities | ||
Investment securities available-for-sale, at fair value | $ 461,207 | $ 445,747 |
Available-for-sale Securities. | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 538,990 | 534,665 |
Gross Unrealized/Unrecognized Gains | 1,269 | 289 |
Gross Unrealized/Unrecognized Losses | (79,052) | (89,207) |
Investment securities available-for-sale, at fair value | 461,207 | 445,747 |
Available-for-sale Securities. | U.S. Government agency securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 67,997 | 67,996 |
Gross Unrealized/Unrecognized Losses | (6,222) | (8,624) |
Investment securities available-for-sale, at fair value | 61,775 | 59,372 |
Available-for-sale Securities. | U.S. State and Municipal securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 11,496 | 11,649 |
Gross Unrealized/Unrecognized Losses | (1,797) | (2,437) |
Investment securities available-for-sale, at fair value | 9,699 | 9,212 |
Available-for-sale Securities. | Residential MBS | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 419,331 | 413,998 |
Gross Unrealized/Unrecognized Gains | 1,198 | 279 |
Gross Unrealized/Unrecognized Losses | (68,609) | (75,729) |
Investment securities available-for-sale, at fair value | 351,920 | 338,548 |
Available-for-sale Securities. | Commercial MBS | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 36,879 | 37,069 |
Gross Unrealized/Unrecognized Gains | 71 | 10 |
Gross Unrealized/Unrecognized Losses | (2,366) | (2,229) |
Investment securities available-for-sale, at fair value | 34,584 | 34,850 |
Available-for-sale Securities. | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 3,287 | 3,953 |
Gross Unrealized/Unrecognized Losses | (58) | (188) |
Investment securities available-for-sale, at fair value | $ 3,229 | $ 3,765 |
INVESTMENT SECURITIES (Schedu_2
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities held-to-maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities | ||
Amortized Cost | $ 468,860 | $ 510,425 |
Total Securities | 404,300 | 437,300 |
Held-to-maturity Securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 468,860 | 510,425 |
Gross Unrealized/Unrecognized Losses | (64,608) | (73,135) |
Total Securities | 404,252 | 437,290 |
Held-to-maturity Securities | US Treasury Securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 29,895 | 29,852 |
Gross Unrealized/Unrecognized Losses | (1,412) | (2,223) |
Total Securities | 28,483 | 27,629 |
Held-to-maturity Securities | U.S. State and Municipal securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 15,569 | 15,814 |
Gross Unrealized/Unrecognized Losses | (1,574) | (2,609) |
Total Securities | 13,995 | 13,205 |
Held-to-maturity Securities | Residential MBS | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 415,306 | 456,648 |
Gross Unrealized/Unrecognized Losses | (60,556) | (67,027) |
Total Securities | 354,750 | 389,621 |
Held-to-maturity Securities | Commercial MBS | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 8,090 | 8,111 |
Gross Unrealized/Unrecognized Losses | (1,066) | (1,276) |
Total Securities | $ 7,024 | $ 6,835 |
INVESTMENT SECURITIES (Schedu_3
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of marketable equity securities) (Details) - Equity securities - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Marketable Securities | ||
Amortized Cost | $ 2,410 | $ 2,358 |
Gross Unrealized/Unrecognized Losses | (287) | (310) |
Fair Value | $ 2,123 | $ 2,048 |
INVESTMENT SECURITIES (Proceeds
INVESTMENT SECURITIES (Proceeds from sales and calls of securities and associated gains and losses) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
INVESTMENT SECURITIES | |
Proceeds | $ 43,241 |
Gross gains | 609 |
Tax impact | $ (197) |
INVESTMENT SECURITIES (Schedu_4
INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Held-to-maturity Securities, Amortized Cost | ||
After 1 year through 5 years | $ 37,984 | $ 29,852 |
After 5 years though 10 years | 1,112 | 9,505 |
After 10 years | 429,764 | 471,068 |
Amortized Cost, total | 468,860 | 510,425 |
Held-to-maturity Securities, Fair Value | ||
After 1 year through 5 years | 35,507 | 27,630 |
After 5 years though 10 years | 1,044 | 8,130 |
After 10 years | 367,701 | 401,530 |
Fair Value, total | 404,252 | 437,290 |
Available-for-sale Securities, Amortized Cost | ||
After 1 year through 5 years | 65,822 | 54,736 |
After 5 years though 10 years | 22,163 | 36,043 |
After 10 years | 451,005 | 443,886 |
Amortized Cost, total | 538,990 | 534,665 |
Available-for-sale Securities, Fair Value | ||
After 1 year through 5 years | 60,757 | 48,959 |
After 5 years though 10 years | 21,174 | 32,872 |
After 10 years | 379,276 | 363,916 |
Fair Value, total | 461,207 | 445,747 |
Securities pledged | $ 845,700 | $ 25,000 |
INVESTMENT SECURITIES (Schedu_5
INVESTMENT SECURITIES (Schedule of Securities with Unrealized Losses) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 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 | 10,873 | 35,528 |
Less than 12 Months, Unrealized/Unrecognized Losses | (198) | (2,379) |
12 months or more, Estimated Fair Value | 380,995 | 387,125 |
12 months or more, Unrealized/Unrecognized Losses | (78,854) | (86,828) |
Total, Estimated Fair Value | 391,868 | 422,653 |
Total, Unrealized/Unrecognized Losses | (79,052) | (89,207) |
Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 194,848 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (23,599) | |
12 months or more, Estimated Fair Value | 404,252 | 242,442 |
12 months or more, Unrealized/Unrecognized Losses | (64,608) | (49,536) |
Total, Estimated Fair Value | 404,252 | 437,290 |
Total, Unrealized Losses | (64,608) | (73,135) |
U.S. Government agency securities | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
12 months or more, Estimated Fair Value | 61,775 | 59,372 |
12 months or more, Unrealized/Unrecognized Losses | (6,222) | (8,624) |
Total, Estimated Fair Value | 61,775 | 59,372 |
Total, Unrealized/Unrecognized Losses | (6,222) | (8,624) |
U.S. State and Municipal securities | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 2,546 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (527) | |
12 months or more, Estimated Fair Value | 9,699 | 6,666 |
12 months or more, Unrealized/Unrecognized Losses | (1,797) | (1,910) |
Total, Estimated Fair Value | 9,699 | 9,212 |
Total, Unrealized/Unrecognized Losses | (1,797) | (2,437) |
U.S. State and Municipal securities | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 13,205 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (2,609) | |
12 months or more, Estimated Fair Value | 13,995 | |
12 months or more, Unrealized/Unrecognized Losses | (1,574) | |
Total, Estimated Fair Value | 13,995 | 13,205 |
Total, Unrealized Losses | (1,574) | (2,609) |
Residential MBS | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 19,576 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (1,654) | |
12 months or more, Estimated Fair Value | 292,970 | 305,936 |
12 months or more, Unrealized/Unrecognized Losses | (68,609) | (74,075) |
Total, Estimated Fair Value | 292,970 | 325,512 |
Total, Unrealized/Unrecognized Losses | (68,609) | (75,729) |
Residential MBS | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 162,960 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (19,625) | |
12 months or more, Estimated Fair Value | 354,750 | 226,661 |
12 months or more, Unrealized/Unrecognized Losses | (60,556) | (47,402) |
Total, Estimated Fair Value | 354,750 | 389,621 |
Total, Unrealized Losses | (60,556) | (67,027) |
Commercial MBS | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 10,873 | 13,406 |
Less than 12 Months, Unrealized/Unrecognized Losses | (198) | (198) |
12 months or more, Estimated Fair Value | 13,322 | 11,386 |
12 months or more, Unrealized/Unrecognized Losses | (2,168) | (2,031) |
Total, Estimated Fair Value | 24,195 | 24,792 |
Total, Unrealized/Unrecognized Losses | (2,366) | (2,229) |
Commercial MBS | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
12 months or more, Estimated Fair Value | 7,024 | 6,835 |
12 months or more, Unrealized/Unrecognized Losses | (1,066) | (1,276) |
Total, Estimated Fair Value | 7,024 | 6,835 |
Total, Unrealized Losses | (1,066) | (1,276) |
Asset-backed Securities | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
12 months or more, Estimated Fair Value | 3,229 | 3,765 |
12 months or more, Unrealized/Unrecognized Losses | (58) | (188) |
Total, Estimated Fair Value | 3,229 | 3,765 |
Total, Unrealized/Unrecognized Losses | (58) | (188) |
US Treasury Securities | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 18,683 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (1,365) | |
12 months or more, Estimated Fair Value | 28,483 | 8,946 |
12 months or more, Unrealized/Unrecognized Losses | (1,412) | (858) |
Total, Estimated Fair Value | 28,483 | 27,629 |
Total, Unrealized Losses | $ (1,412) | $ (2,223) |
LOANS (Schedule of Loan Receiva
LOANS (Schedule of Loan Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 5,642,012 | $ 4,853,495 | |
Deferred fees, net of origination costs | (17,215) | (12,972) | |
Total ending loan balance | 5,624,797 | 4,840,523 | |
Allowance for credit losses | (57,965) | (44,876) | $ (34,729) |
Net loans | 5,566,832 | 4,795,647 | |
Asset Pledged as Collateral | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loan pledged | 3,300,000 | 2,400,000 | |
Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 4,573,463 | 3,919,948 | |
Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 1,051,463 | 908,616 | |
Total ending loan balance | 1,051,463 | ||
Allowance for credit losses | (11,207) | (10,274) | (7,708) |
Commercial and industrial | Paycheck Protection Program loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Net loans | 54,000 | 97,000 | |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 17,086 | 24,931 | |
Total ending loan balance | 17,086 | ||
Allowance for credit losses | (480) | (195) | (404) |
Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total ending loan balance | 3,857,711 | ||
Commercial | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 3,857,711 | 3,254,508 | |
Allowance for credit losses | (35,635) | (29,496) | (22,216) |
Commercial | Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 908,616 | ||
Construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 143,693 | ||
Total ending loan balance | 153,512 | ||
Construction | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 153,512 | 143,693 | |
Allowance for credit losses | (1,765) | (1,983) | (2,105) |
Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 468,540 | ||
Total ending loan balance | 467,536 | ||
Multifamily | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 467,536 | 468,540 | |
Allowance for credit losses | (8,215) | (2,823) | (2,156) |
One to four family | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total ending loan balance | 94,704 | ||
One to four family | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 94,704 | 53,207 | |
Allowance for credit losses | $ (663) | $ (105) | $ (140) |
LOANS (Schedule of Activity in
LOANS (Schedule of Activity in the Allowance for Loan Losses by Segment) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | $ 44,876,000 | $ 34,729,000 |
Provision for credit losses | 12,058,000 | 10,116,000 |
Loans charged-off | (1,219,000) | |
Recoveries | 31,000 | |
Total ending allowance balance | 57,965,000 | 44,876,000 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 2,250,000 | |
Total ending allowance balance | 2,250,000 | |
Real estate | Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 29,496,000 | 22,216,000 |
Provision for credit losses | 6,091,000 | 7,280,000 |
Total ending allowance balance | 35,635,000 | 29,496,000 |
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 | |
Total ending allowance balance | 48,000 | |
Real estate | Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 1,983,000 | 2,105,000 |
Provision for credit losses | (642,000) | (122,000) |
Total ending allowance balance | 1,765,000 | 1,983,000 |
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 | |
Total ending allowance balance | 424,000 | |
Real estate | Multifamily | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 2,823,000 | 2,156,000 |
Provision for credit losses | 4,687,000 | 667,000 |
Total ending allowance balance | 8,215,000 | 2,823,000 |
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 | |
Total ending allowance balance | 705,000 | |
Real estate | One to four family | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 105,000 | 140,000 |
Provision for credit losses | 377,000 | (35,000) |
Total ending allowance balance | 663,000 | 105,000 |
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 | |
Total ending allowance balance | 181,000 | |
Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 10,274,000 | 7,708,000 |
Provision for credit losses | 1,408,000 | 2,540,000 |
Loans charged-off | (946,000) | |
Recoveries | 26,000 | |
Total ending allowance balance | 11,207,000 | 10,274,000 |
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 | |
Total ending allowance balance | 471,000 | |
Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 195,000 | 404,000 |
Provision for credit losses | 137,000 | (214,000) |
Loans charged-off | (273,000) | |
Recoveries | 5,000 | |
Total ending allowance balance | 480,000 | 195,000 |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | $ 421,000 | |
Total ending allowance balance | $ 421,000 |
LOANS (Unfunded loan commitment
LOANS (Unfunded loan commitment allowances activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Activity in the ACL for unfunded loan commitments | ||
Balance at the beginning of period | $ 44,876 | $ 34,729 |
Provision/(credit) for credit losses | 12,058 | 10,116 |
Total ending allowance balance | 57,965 | 44,876 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Activity in the ACL for unfunded loan commitments | ||
Balance at the beginning of period | 2,250 | |
Total ending allowance balance | 2,250 | |
Unfunded loan commitment | ||
Activity in the ACL for unfunded loan commitments | ||
Balance at the beginning of period | 180 | 180 |
Provision/(credit) for credit losses | 225 | |
Total ending allowance balance | 1,182 | $ 180 |
Unfunded loan commitment | Cumulative Effect, Period of Adoption, Adjustment | ||
Activity in the ACL for unfunded loan commitments | ||
Total ending allowance balance | $ 777 |
LOANS (Schedule of Loans by Imp
LOANS (Schedule of Loans by Impairment Method) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment, Allowance for loan losses | $ 5,066 | $ 24 | |
Collectively evaluated for impairment, Allowance for loan losses | 52,899 | 44,852 | |
Total ending loan balance | 57,965 | 44,876 | $ 34,729 |
Individually evaluated for impairment, Loans | 68,932 | 27,663 | |
Collectively evaluated for impairment, Loans | 5,573,080 | 4,825,832 | |
Total ending loan balance | 5,642,012 | 4,853,495 | |
Construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total ending loan balance | 143,693 | ||
Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total ending loan balance | 468,540 | ||
Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total ending loan balance | 4,573,463 | 3,919,948 | |
Real estate | Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Collectively evaluated for impairment, Allowance for loan losses | 35,635 | 29,496 | |
Total ending loan balance | 35,635 | 29,496 | 22,216 |
Individually evaluated for impairment, Loans | 40,955 | 26,740 | |
Collectively evaluated for impairment, Loans | 3,816,756 | 3,227,768 | |
Total ending loan balance | 3,857,711 | 3,254,508 | |
Real estate | Construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Collectively evaluated for impairment, Allowance for loan losses | 1,765 | 1,983 | |
Total ending loan balance | 1,765 | 1,983 | 2,105 |
Collectively evaluated for impairment, Loans | 153,512 | 143,693 | |
Total ending loan balance | 153,512 | 143,693 | |
Real estate | Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment, Allowance for loan losses | 5,002 | ||
Collectively evaluated for impairment, Allowance for loan losses | 3,213 | 2,823 | |
Total ending loan balance | 8,215 | 2,823 | 2,156 |
Individually evaluated for impairment, Loans | 20,939 | ||
Collectively evaluated for impairment, Loans | 446,597 | 468,540 | |
Total ending loan balance | 467,536 | 468,540 | |
Real estate | One to four family | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment, Allowance for loan losses | 0 | ||
Collectively evaluated for impairment, Allowance for loan losses | 663 | 105 | |
Total ending loan balance | 663 | 105 | 140 |
Individually evaluated for impairment, Loans | 0 | 899 | |
Collectively evaluated for impairment, Loans | 94,704 | 52,308 | |
Total ending loan balance | 94,704 | 53,207 | |
Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment, Allowance for loan losses | 0 | ||
Collectively evaluated for impairment, Allowance for loan losses | 11,207 | 10,274 | |
Total ending loan balance | 11,207 | 10,274 | 7,708 |
Individually evaluated for impairment, Loans | 6,934 | ||
Collectively evaluated for impairment, Loans | 1,044,529 | 908,616 | |
Total ending loan balance | 1,051,463 | 908,616 | |
Commercial and industrial | Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total ending loan balance | 908,616 | ||
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment, Allowance for loan losses | 64 | 24 | |
Collectively evaluated for impairment, Allowance for loan losses | 416 | 171 | |
Total ending loan balance | 480 | 195 | $ 404 |
Individually evaluated for impairment, Loans | 104 | 24 | |
Collectively evaluated for impairment, Loans | 16,982 | 24,907 | |
Total ending loan balance | $ 17,086 | $ 24,931 |
LOANS (Schedule of Non-accrual
LOANS (Schedule of Non-accrual Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 51,897 | $ 24 |
Nonaccrual without an ACL | 30,934 | |
Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 24,000 | |
Nonaccrual without an ACL | 24,000 | |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 6,934 | |
Nonaccrual without an ACL | 6,934 | |
Multifamily | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 20,939 | |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 24 | $ 24 |
LOANS (Schedule of Past Due Loa
LOANS (Schedule of Past Due Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | $ 5,624,797 | $ 4,840,523 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 632 | 8,058 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 18 | 24,000 |
90 days and greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 51,897 | 24 |
Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 52,548 | 32,082 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 5,589,464 | 4,821,413 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 3,857,711 | |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 153,512 | |
Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 467,536 | |
One to four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 94,704 | |
One to four family | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 94,704 | |
Real estate | Commercial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 24,000 | |
Real estate | Commercial | 90 days and greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 24,000 | |
Real estate | Commercial | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 24,000 | 24,000 |
Real estate | Commercial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 3,833,711 | 3,230,508 |
Real estate | Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 153,512 | 143,693 |
Real estate | Multifamily | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 8,000 | |
Real estate | Multifamily | 90 days and greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 20,939 | |
Real estate | Multifamily | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 20,939 | 8,000 |
Real estate | Multifamily | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 446,597 | 460,540 |
Real estate | One to four family | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 612 | |
Real estate | One to four family | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 612 | |
Real estate | One to four family | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 94,092 | 53,207 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 1,051,463 | |
Commercial and industrial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 20 | 37 |
Commercial and industrial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 18 | |
Commercial and industrial | 90 days and greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 6,934 | |
Commercial and industrial | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 6,973 | 37 |
Commercial and industrial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 1,044,490 | 908,579 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 17,086 | |
Consumer | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 21 | |
Consumer | 90 days and greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 24 | 24 |
Consumer | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | 24 | 45 |
Consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of deferred fees and costs | $ 17,062 | $ 24,886 |
LOANS (Schedule of Loans by Ris
LOANS (Schedule of Loans by Risk Category) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 5,642,012 | $ 4,853,495 |
Number of TDR loans during the period | 0 | |
Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 4,681,312 | |
Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 67,630 | |
Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 26,415 | |
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 | |
Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 4,573,463 | 3,919,948 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 3,857,711 | 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 | 153,512 | 143,693 |
Real estate | Multifamily | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | 467,536 | 468,540 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 1,051,463 | 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 (Credit Quality Indicator
LOANS (Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | $ 5,624,797 | $ 4,840,523 |
Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 52,548 | 32,082 |
Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 5,589,464 | 4,821,413 |
Commercial and industrial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 186,089 | |
2022 | 286,277 | |
2021 | 98,753 | |
2020 | 26,023 | |
2019 | 14,390 | |
2018 & Prior | 5,904 | |
Revolving | 434,027 | |
Loans, net of deferred fees and costs | 1,051,463 | |
Commercial and industrial | Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 6,973 | 37 |
Commercial and industrial | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 1,044,490 | 908,579 |
Consumer | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2018 & Prior | 17,086 | |
Loans, net of deferred fees and costs | 17,086 | |
Consumer | Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2018 & Prior | 24 | |
Loans, net of deferred fees and costs | 24 | 45 |
Consumer | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2018 & Prior | 17,062 | |
Loans, net of deferred fees and costs | 17,062 | 24,886 |
Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 1,525,373 | |
2022 | 1,348,371 | |
2021 | 527,058 | |
2020 | 128,624 | |
2019 | 200,304 | |
2018 & Prior | 83,309 | |
Revolving | 44,672 | |
Loans, net of deferred fees and costs | 3,857,711 | |
Commercial | Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 41,000 | |
Commercial | Real estate | Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 24,000 | 24,000 |
Commercial | Real estate | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 3,833,711 | 3,230,508 |
Construction | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 84,881 | |
2022 | 56,065 | |
Revolving | 12,566 | |
Loans, net of deferred fees and costs | 153,512 | |
Construction | Real estate | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 153,512 | 143,693 |
Multifamily | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 115,761 | |
2022 | 144,955 | |
2021 | 72,707 | |
2020 | 23,655 | |
2019 | 34,533 | |
2018 & Prior | 69,510 | |
Revolving | 6,415 | |
Loans, net of deferred fees and costs | 467,536 | |
Multifamily | Multifamily | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 20,900 | |
Multifamily | Real estate | Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 20,939 | 8,000 |
Multifamily | Real estate | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 446,597 | 460,540 |
One to four family | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 45,000 | |
2022 | 4,081 | |
2020 | 9,784 | |
2019 | 12,157 | |
2018 & Prior | 23,682 | |
Loans, net of deferred fees and costs | 94,704 | |
One to four family | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 45,000 | |
2022 | 4,081 | |
2020 | 9,784 | |
2019 | 12,157 | |
2018 & Prior | 23,682 | |
Loans, net of deferred fees and costs | 94,704 | |
One to four family | Real estate | Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 612 | |
One to four family | Real estate | Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans, net of deferred fees and costs | 94,092 | $ 53,207 |
Charge-offs | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2021 | 915 | |
2018 & Prior | 304 | |
Loans, net of deferred fees and costs | 1,219 | |
Charge-offs | Commercial and industrial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2021 | 915 | |
2018 & Prior | 31 | |
Loans, net of deferred fees and costs | 946 | |
Charge-offs | Consumer | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2018 & Prior | 273 | |
Loans, net of deferred fees and costs | 273 | |
Pass | Commercial and industrial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 178,814 | |
2022 | 252,359 | |
2021 | 98,753 | |
2020 | 23,943 | |
2019 | 14,390 | |
2018 & Prior | 5,904 | |
Revolving | 402,247 | |
Loans, net of deferred fees and costs | 976,410 | |
Pass | Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 1,500,873 | |
2022 | 1,268,550 | |
2021 | 512,497 | |
2020 | 128,320 | |
2019 | 200,304 | |
2018 & Prior | 83,309 | |
Revolving | 44,672 | |
Loans, net of deferred fees and costs | 3,738,525 | |
Pass | Construction | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 84,881 | |
2022 | 56,065 | |
Revolving | 12,566 | |
Loans, net of deferred fees and costs | 153,512 | |
Pass | Multifamily | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 115,761 | |
2022 | 114,652 | |
2021 | 51,768 | |
2020 | 23,655 | |
2019 | 34,533 | |
2018 & Prior | 69,510 | |
Revolving | 6,415 | |
Loans, net of deferred fees and costs | 416,294 | |
Special Mention | Commercial and industrial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 3,840 | |
2022 | 33,918 | |
2020 | 2,080 | |
Revolving | 28,281 | |
Loans, net of deferred fees and costs | 68,119 | |
Special Mention | Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 24,500 | |
2022 | 38,867 | |
2021 | 14,561 | |
2020 | 304 | |
Loans, net of deferred fees and costs | 78,232 | |
Special Mention | Multifamily | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2022 | 30,303 | |
Loans, net of deferred fees and costs | 30,303 | |
Substandard | Commercial and industrial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2023 | 3,435 | |
Revolving | 3,499 | |
Loans, net of deferred fees and costs | 6,934 | |
Substandard | Commercial | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2022 | 40,954 | |
Loans, net of deferred fees and costs | 40,954 | |
Substandard | Multifamily | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
2021 | 20,939 | |
Loans, net of deferred fees and costs | $ 20,939 |
LOANS (Schedule of Impaired by
LOANS (Schedule of Impaired by Class of Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
With an allowance recorded: | ||
Unpaid Principal Balance | $ 24 | $ 879 |
Recorded Investment | 24 | 749 |
Allowance for Loan Losses Allocated | 24 | 196 |
Average Recorded Investment | 79 | 4,954 |
Interest Income Recognized | 105 | |
Without an allowance recorded: | ||
Unpaid Principal Balance | 29,160 | 39,164 |
Recorded Investment | 27,639 | 39,017 |
Average Recorded Investment | 30,974 | 16,561 |
Interest Income Recognized | 1,072 | 351 |
One to four family | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 577 | |
Recorded Investment | 447 | |
Allowance for Loan Losses Allocated | 26 | |
Average Recorded Investment | 462 | |
Interest Income Recognized | 31 | 21 |
Without an allowance recorded: | ||
Unpaid Principal Balance | 1,176 | |
Recorded Investment | 899 | |
Average Recorded Investment | 832 | |
Real estate | One to four family | ||
Without an allowance recorded: | ||
Unpaid Principal Balance | 646 | |
Recorded Investment | 499 | |
Average Recorded Investment | 509 | |
Interest Income Recognized | 26 | |
Real estate | Commercial | ||
With an allowance recorded: | ||
Interest Income Recognized | 1,041 | |
Without an allowance recorded: | ||
Unpaid Principal Balance | 27,984 | 38,518 |
Recorded Investment | 26,740 | 38,518 |
Average Recorded Investment | 30,142 | 15,975 |
Interest Income Recognized | 325 | |
Commercial and industrial | ||
With an allowance recorded: | ||
Average Recorded Investment | 2,726 | |
Without an allowance recorded: | ||
Average Recorded Investment | 77 | |
Consumer | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 24 | 302 |
Recorded Investment | 24 | 302 |
Allowance for Loan Losses Allocated | 24 | 170 |
Average Recorded Investment | $ 79 | 1,766 |
Interest Income Recognized | $ 84 |
LOANS (COVID-19 Loan Modificati
LOANS (COVID-19 Loan Modifications) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of TDR loans during the period | 0 | |
COVID 19 - Impact | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of TDR loans during the period | 1 | |
Loan restructuring amount | $ 20.8 | |
Percentage of loans receivable | 0.43% |
LEASES (Lease Cost and Cash Flo
LEASES (Lease Cost and Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
LEASES | ||
Lease assets | $ 42,245 | $ 44,339 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Lease liabilities | $ 46,430 | $ 48,364 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Weighted average remaining lease term in years | 10 years 6 months | 11 years 2 months 12 days |
Weighted average discount rate | 2.44% | 2.26% |
Operating lease cost | $ 5,290 | $ 5,405 |
Operating cash outflows from operating leases | 5,191 | $ 4,864 |
Lease assets obtained from new operating lease liabilities | $ 2,036 |
LEASES (Maturity of lease liabi
LEASES (Maturity of lease liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | |||
2024 | $ 5,012 | $ 5,202 | |
2025 | 5,257 | 4,976 | |
2026 | 5,274 | 4,990 | |
2027 | 4,899 | 5,008 | |
2028 | 4,486 | 4,632 | |
Thereafter | 27,953 | 30,276 | |
Total | 52,881 | 55,084 | |
Less: Present value discount | (6,451) | (6,720) | |
Total lease liabilities | $ 46,430 | $ 48,364 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities | |
Rent expense | $ 4,900 |
PREMISES AND EQUIPMENT (Schedul
PREMISES AND EQUIPMENT (Schedule of Premises and equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | $ 54,290 | $ 48,525 |
Less accumulated depreciation and amortization | (19,225) | (16,656) |
Total Premises and Equipment, net | 35,065 | 31,869 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | 16,175 | 14,451 |
Land, building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | 13,479 | 13,479 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | $ 24,636 | $ 20,595 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
PREMISES AND EQUIPMENT | |||
Depreciation and amortization expense | $ 2.6 | $ 2.5 | $ 2.4 |
DEPOSITS (Schedule of Deposits)
DEPOSITS (Schedule of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
DEPOSITS | ||
Noninterest bearing demand accounts | $ 1,837,874 | $ 2,422,151 |
Money market | 3,856,975 | 2,792,554 |
Savings accounts | 7,043 | 11,144 |
Time deposits | 35,400 | 52,063 |
Total deposits | $ 5,737,292 | $ 5,277,912 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
DEPOSITS | ||
Time deposits greater than $250,000 | $ 21.2 | $ 30.8 |
DEPOSITS (Schedule maturities o
DEPOSITS (Schedule maturities of time deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
DEPOSITS | ||
2024 | $ 31,835 | |
2025 | 2,614 | |
2026 | 349 | |
2027 | 479 | |
2028 | 123 | |
Total time deposits | $ 35,400 | $ 52,063 |
BORROWINGS (Advances from the F
BORROWINGS (Advances from the FHLB) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
BORROWINGS | ||
Federal funds purchased and securities sold under agreements to repurchase | $ 99,000,000 | $ 150,000,000 |
Federal Home Loan Bank of New York advances | 440,000,000 | 100,000,000 |
Interest expense, Federal funds purchased and securities sold under agreements to repurchase | 5,651,000 | 601,000 |
Interest Expense, Federal home loan bank of New York advance | $ 17,321,000 | $ 292,000 |
Weighted average Interest rate | 5.53% | 5.54% |
Securities sold under agreements | $ 0 | $ 0 |
Available borrowing capacity from the FHLB | $ 3,100,000,000 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) | 12 Months Ended | ||||
Mar. 08, 2017 | Jul. 14, 2006 | Dec. 07, 2005 | Dec. 31, 2023 | Dec. 31, 2022 | |
Federal Home Loan Bank, Advances [Line Items] | |||||
Available collateral to borrow an additional amount from FHLB | $ 3,100,000,000 | ||||
Redemption of subordinated debt | $ 24,712,000 | ||||
Floating Rate Junior Subordinated Debentures (the "Debentures") | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Description of periodic payment | twenty consecutive quarterly payments | ||||
Period for periodic payment | 5 years | ||||
Subordinated Debt | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Debt instrument face amount | $ 25,000,000 | ||||
Maturity date | Mar. 15, 2027 | ||||
Interest rate | 6.25% | ||||
Metbank Capital Trust I | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Investment in common securities of the trust | $ 310,000 | ||||
Trust preferred securities issued | 10,000,000 | ||||
Metbank Capital Trust I | Floating Rate Junior Subordinated Debentures (the "Debentures") | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Debt instrument face amount | $ 10,300,000 | ||||
Maturity date | Dec. 09, 2035 | ||||
Interest rate during period | 7.51% | 5.93% | |||
Metbank Capital Trust I | Floating Rate Junior Subordinated Debentures (the "Debentures") | London Interbank Offered Rate (LIBOR) | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Description of LIBOR rate basis | three-month LIBOR | ||||
Basis spread on LIBOR variable rate | 1.85% | ||||
Metbank Capital Trust I | Floating Rate Junior Subordinated Debentures (the "Debentures") | Secured Overnight Financing Rate (SOFR) | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Description of LIBOR rate basis | three-month SOFR | ||||
Basis spread on LIBOR variable rate | 1.85% | ||||
Metbank Capital Trust II | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Investment in common securities of the trust | $ 310,000 | ||||
Trust preferred securities issued | 10,000,000 | ||||
Metbank Capital Trust II | Floating Rate Junior Subordinated Debentures (the "Debentures") | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Debt instrument face amount | $ 10,300,000 | ||||
Maturity date | Oct. 07, 2036 | ||||
Interest rate during period | 7.66% | 6.08% | |||
Metbank Capital Trust II | Floating Rate Junior Subordinated Debentures (the "Debentures") | London Interbank Offered Rate (LIBOR) | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Description of LIBOR rate basis | three-month LIBOR | ||||
Basis spread on LIBOR variable rate | 2% | ||||
Metbank Capital Trust II | Floating Rate Junior Subordinated Debentures (the "Debentures") | Secured Overnight Financing Rate (SOFR) | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Description of LIBOR rate basis | three-month SOFR | ||||
Basis spread on LIBOR variable rate | 2% |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income tax expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 21,503 | $ 27,311 | $ 16,883 |
State and local | 10,947 | 14,162 | 12,252 |
Total current | 32,450 | 41,473 | 29,135 |
Deferred | |||
Federal | (2,662) | (1,919) | (405) |
State and local | (138) | (2,081) | 285 |
Total deferred | (2,800) | (4,000) | (120) |
Total income tax expense | $ 29,650 | $ 37,473 | $ 29,015 |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred tax assets and liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for loan losses | $ 17,219 | $ 13,698 |
Lease Liabilities | 13,793 | 14,782 |
Net unrealized loss on securities available for sale | 23,098 | 27,084 |
Off balance sheet reserves | 351 | 55 |
Restricted stock | 1,666 | 1,140 |
Tangible asset | 3 | 7 |
Non-qualified stock options | 285 | |
Other | 147 | 95 |
Total gross deferred tax assets | 56,277 | 57,146 |
Deferred tax liabilities: | ||
Right of use lease asset | 12,550 | 13,551 |
Depreciation and amortization | 4,024 | 4,390 |
Net unrealized gain on interest rate derivatives | 825 | 3,302 |
Prepaid assets | 748 | 548 |
Total gross deferred tax liabilities | 18,147 | 21,791 |
Net deferred tax asset, included in other assets | $ 38,130 | $ 35,355 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of statutory federal income tax rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | |||
Pretax income at statutory, amount | $ 22,453 | $ 20,349 | $ 18,810 |
Pretax income at statutory rates | 21% | 21% | 21% |
State and local taxes, net of federal income tax benefit, amount | $ 8,539 | $ 9,544 | $ 9,904 |
State and local taxes, net of federal income tax benefit, rate | 7.99% | 9.85% | 11.06% |
Nondeductible expenses, amount | $ (940) | $ 8,175 | $ 680 |
Nondeductible expenses, rate | (0.88%) | 8.44% | 0.76% |
Equity compensation | $ (1,063) | $ (302) | $ (467) |
Equity compensation, rate | (0.99%) | (0.31%) | (0.52%) |
Tax-exempt income, net amount | $ (104) | $ (106) | $ (51) |
Tax-exempt income, net rate | (0.10%) | (0.11%) | (0.06%) |
Other, amount | $ 765 | $ (187) | $ 139 |
Other, rate | 0.71% | (0.20%) | 0.15% |
Total income tax expense | $ 29,650 | $ 37,473 | $ 29,015 |
Effective income tax expense, rate | 27.73% | 38.67% | 32.39% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
INCOME TAXES | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Net deferred tax asset | 38,130,000 | $ 35,355,000 |
Valuation allowance for deferred tax assets | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Dec. 31, 2023 | Mar. 06, 2023 | Dec. 31, 2022 | Aug. 15, 2016 | |
Debt Instrument [Line Items] | |||||
Deposits | $ 5,737,292,000 | $ 5,277,912,000 | |||
Amount of loan | $ 5,642,012,000 | 4,853,495,000 | |||
Exercise of stock options (in shares) | 220,200 | ||||
Executive officer | |||||
Debt Instrument [Line Items] | |||||
Amount of loan | $ 7,500,000 | $ 780,000 | |||
Interest rate on loan to related party | 5.70% | 2.10% | |||
Exercise of stock options (in shares) | 220,200 | ||||
Number of shares issued (in shares) | 71,655 | ||||
Equity Incentive Plan | |||||
Debt Instrument [Line Items] | |||||
Amount of loan | $ 0 | 780,000 | |||
PASL Holding LLC | Management | Principal officers, directors, and their affiliates | |||||
Debt Instrument [Line Items] | |||||
Deposits | $ 769,000 | $ 4,600,000 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 932,190 | $ 958,220 |
Assets amount transfer from level 1 to level 2 | 0 | 0 |
Assets amount transfer from level 2 to level 1 | 0 | 0 |
Liabilities 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 | 61,775 | 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 | 9,699 | 9,212 |
Carrying Amount | Residential MBS | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 351,920 | 338,548 |
Carrying Amount | Commercial MBS | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 34,584 | 34,850 |
Carrying Amount | Asset-backed Securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3,229 | 3,765 |
Carrying Amount | CRA mutual fund | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 2,123 | 2,048 |
Carrying Amount | Derivatives assets | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2,687 | |
Carrying Amount | Derivative liabilities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 6,037 | |
Fair Value, Inputs, Level 1 | CRA mutual fund | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 2,123 | 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 | 61,775 | 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 | 9,699 | 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 | 351,920 | 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 | 34,584 | 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 | 3,229 | $ 3,765 |
Fair Value, Inputs, Level 2 | Derivatives assets | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 2,687 | |
Fair Value, Inputs, Level 2 | Derivative liabilities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 6,037 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Securities held to maturity | $ 404,300 | $ 437,300 |
Other investments | ||
FRB Stock | 11,400 | 11,400 |
FHLB Stock | 25,600 | 9,200 |
Receivable from global payments business, net | 87,648 | 85,605 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 1,837,874 | 2,422,151 |
Time deposits | 35,400 | 52,063 |
Federal funds purchased | 99,000 | 150,000 |
Federal Home Loan Bank of New York advances | 440,000 | 100,000 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 31,973 | 26,780 |
Overnight deposits | 237,492 | 230,638 |
Securities held to maturity | 468,860 | 510,425 |
Loans, net | 5,566,832 | 4,795,647 |
Other investments | ||
FRB Stock | 11,410 | 11,421 |
FHLB Stock | 25,558 | 9,191 |
Disability Fund | 1,500 | 1,000 |
Time deposits at banks | 498 | 498 |
Receivable from global payments business, net | 87,648 | 85,605 |
Accrued interest receivable | 31,948 | 24,107 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 1,837,874 | 2,422,151 |
Money market and savings deposits | 3,864,018 | 2,803,698 |
Time deposits | 35,400 | 52,063 |
Federal funds purchased | 99,000 | 150,000 |
Federal Home Loan Bank of New York advances | 440,000 | 100,000 |
Trust preferred securities payable | 20,620 | 20,620 |
Prepaid debit cardholder balances | 10,178 | 10,579 |
Accrued interest payable | 1,894 | 728 |
Secured Borrowings | 7,585 | 7,725 |
Total Fair Value | ||
Financial assets: | ||
Cash and due from banks | 31,973 | 26,780 |
Overnight deposits | 237,492 | 230,638 |
Securities held to maturity | 404,252 | 437,290 |
Loans, net | 5,474,238 | 4,737,007 |
Other investments | ||
Disability Fund | 1,500 | 1,000 |
Time deposits at banks | 498 | 498 |
Receivable from global payments business, net | 87,648 | 85,605 |
Accrued interest receivable | 31,948 | 24,107 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 1,837,874 | 2,422,151 |
Money market and savings deposits | 3,864,018 | 2,803,698 |
Time deposits | 35,011 | 51,058 |
Federal funds purchased | 99,000 | 150,000 |
Federal Home Loan Bank of New York advances | 440,000 | 100,000 |
Trust preferred securities payable | 20,007 | 19,953 |
Prepaid debit cardholder balances | 10,178 | 10,579 |
Accrued interest payable | 1,894 | 728 |
Secured Borrowings | 7,585 | 7,725 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Cash and due from banks | 31,973 | 26,780 |
Overnight deposits | 237,492 | 230,638 |
Other investments | ||
Time deposits at banks | 498 | 498 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 1,837,874 | 2,422,151 |
Money market and savings deposits | 3,864,018 | 2,803,698 |
Accrued interest payable | 1,028 | 112 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Securities held to maturity | 404,252 | 437,290 |
Other investments | ||
Disability Fund | 1,500 | 1,000 |
Accrued interest receivable | 2,007 | 964 |
Financial liabilities: | ||
Time deposits | 35,011 | 51,058 |
Federal funds purchased | 99,000 | 150,000 |
Federal Home Loan Bank of New York advances | 440,000 | 100,000 |
Accrued interest payable | 475 | 293 |
Secured Borrowings | 7,585 | 7,725 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Loans, net | 5,474,238 | 4,737,007 |
Other investments | ||
Receivable from global payments business, net | 87,648 | 85,605 |
Accrued interest receivable | 29,941 | 23,143 |
Financial liabilities: | ||
Trust preferred securities payable | 20,007 | 19,953 |
Prepaid debit cardholder balances | 10,178 | 10,579 |
Accrued interest payable | $ 391 | $ 323 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2021 | |
Stockholders Equity Note [Line Items] | ||
Redemption of subordinated notes | $ 162,687 | |
Series F, Class B Non-voting Preferred Stock | ||
Stockholders Equity Note [Line Items] | ||
Preferred stock, par value | $ 0.01 | |
Preferred stock, shares outstanding | 272,636 | |
Common Stock | ||
Stockholders Equity Note [Line Items] | ||
Net issuance of common stock under stock compensation plans (in shares) | 2,300,000 | 2,300,000 |
Stock price | $ 75 | |
Redemption of subordinated notes | $ 162,700 |
STOCK COMPENSATION PLAN (Summar
STOCK COMPENSATION PLAN (Summary of the Status of the Stock Option Plan) (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of Options | |
Outstanding, beginning of year | shares | 220,200 |
Exercised | shares | (220,200) |
Weighted Average Exercise Price | |
Outstanding, beginning of year | $ / shares | $ 18 |
Exercised | $ / shares | $ 18 |
STOCK COMPENSATION PLAN (Summ_2
STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details) - Restricted stock awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted stock awards - Number of shares (Roll-forward): | |||
Number of shares, Outstanding, beginning of period | 129,562 | 90,999 | 76,289 |
Number of shares, Granted (in shares) | 198,498 | 83,151 | 78,582 |
Number of shares, Forfeited | (29,218) | (578) | (10,200) |
Number of shares, Vested | (64,990) | (44,010) | (53,672) |
Number of shares, Outstanding at end of period | 233,852 | 129,562 | 90,999 |
Restricted stock awards - Weighted Average Grant Date Fair Value (Roll-Forward): | |||
Weighted Average Grant Date fair Value, beginning of period | $ 86.01 | $ 47.35 | $ 37.01 |
Weighted Average Grant Date fair Value, Granted | 56.04 | 102.49 | 50.80 |
Weighted Average Grant Date fair Value, Forfeited | 62.53 | 92.44 | 48.09 |
Weighted Average Grant Date fair Value, Vested | 84.28 | 37.12 | 37.57 |
Weighted Average Grant Date fair Value, at end of period | $ 63.98 | $ 86.01 | $ 47.35 |
STOCK COMPENSATION PLAN (Detail
STOCK COMPENSATION PLAN (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2019 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Intrinsic value of exercises | $ 4,600,000 | $ 417,000 | ||||||||||
Restricted stock awards | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation cost related to non-vested awards | 7,800,000 | |||||||||||
Compensation cost related to stock awards | $ 6,000,000 | $ 4,500,000 | $ 2,400,000 | |||||||||
Number of shares, Granted (in shares) | 198,498 | 83,151 | 78,582 | |||||||||
Number of PRSUs forfeited (in shares) | 29,218 | 578 | 10,200 | |||||||||
Remaining unrecognized compensation expense recognition period (in years) | 1 year 9 months 18 days | |||||||||||
Fair value of shares vested | $ 3,700,000 | $ 3,600,000 | $ 2,000,000 | |||||||||
Restricted stock awards | Key Personnel | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares, Granted (in shares) | 170,998 | 72,025 | 78,582 | |||||||||
Vesting percentage | 33% | |||||||||||
Vesting period (in years) | 3 years | |||||||||||
Restricted stock awards | Members of the Board of Directors | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation cost related to non-vested awards | $ 0 | |||||||||||
Compensation cost related to stock awards | 1,600,000 | 300,000 | 410,000 | |||||||||
Number of shares, Granted (in shares) | 27,500 | 11,126 | 38,900 | 1,785 | ||||||||
Service period (in years) | 3 years | |||||||||||
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 | |||||||||||
Compensation expense recognized | $ 2,200,000 | 1,900,000 | 1,900,000 | |||||||||
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 (in shares) | 90,000 | |||||||||||
Equity Incentive Plan 2022 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based payment award, shares authorized, maximum | 189,298 | |||||||||||
Compensation cost related to stock awards | $ 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 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation cost related to non-vested awards | $ 0 | $ 0 | ||||||||||
Equity Incentive Plan 2022 | Employee Stock Option | 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 | Employee Stock Option | 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 (in shares) | 20,800 | |||||||||||
Vested accelerated shares (in 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 (in 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 (in shares) | 30,800 |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
EMPLOYEE BENEFIT PLAN | |||
Employer discretionary contribution amount | $ 1,000,000 | $ 889,000 | $ 774,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Outstanding following off-balance-sheet financial instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 126,950 | $ 94,632 |
Variable Rate | 527,730 | 364,908 |
Unused commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 67,418 | 40,685 |
Variable Rate | 527,730 | 364,908 |
Standby and commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 59,532 | 53,947 |
Variable Rate | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 126,950 | $ 94,632 |
FRB Consent Order | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Civil money penalty | 14,500 | |
NYSDFS Consent Order | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Civil money penalty | $ 15,000 | |
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 | $ 59,532 | $ 53,947 |
Amount of off-balance-sheet financial instruments collateral received | $ 36,200 | $ 28,700 |
REGULATORY CAPITAL (Summary of
REGULATORY CAPITAL (Summary of actual capital amounts and ratios) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage ratio (to average assets), Actual Amount | $ 722,844 | $ 641,082 |
Tier 1 leverage ratio (to average assets), Actual Ratio | 0.106 | 0.102 |
Tier 1 leverage ratio (to average assets), For Capital Adequacy Amount | $ 274,064 | $ 250,963 |
Tier 1 leverage ratio (to average assets), For Capital Adequacy Ratio | 0.040 | 0.040 |
Tier 1 common equity (to risk-weighted assets), Actual Amount | $ 702,224 | $ 620,462 |
Tier 1 common equity (to risk-weighted assets), Actual Ratio | 0.115 | 0.121 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Amount | $ 274,867 | $ 230,879 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Ratio | 0.045 | 0.045 |
Tier 1 common equity (to risk-weighted assets), Minimum Capital Conservation Buffer | 0.025 | 0.025 |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 722,844 | $ 641,082 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 0.118 | 0.125 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Amount | $ 366,490 | $ 307,838 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Ratio | 0.060 | 0.060 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Conservation Buffer | 0.025 | 0.025 |
Total capital (to risk-weighted assets), Actual Amount | $ 781,991 | $ 686,139 |
Total capital (to risk-weighted assets), Actual Ratio | 0.128 | 0.134 |
Total capital (to risk-weighted assets), For Capital Adequacy Amount | $ 488,653 | $ 410,451 |
Total capital (to risk-weighted assets), For Capital Adequacy Ratio | 0.080 | 0.080 |
Total capital (to risk-weighted assets), Minimum Capital Conservation Buffer | 0.025 | 0.025 |
Percentage of capital conversion buffer | 4.80% | 5.40% |
Metropolitan Commercial Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage ratio (to average assets), Actual Amount | $ 703,823 | $ 628,825 |
Tier 1 leverage ratio (to average assets), Actual Ratio | 0.103 | 0.100 |
Tier 1 leverage ratio (to average assets), For Capital Adequacy Amount | $ 274,055 | $ 250,920 |
Tier 1 leverage ratio (to average assets), For Capital Adequacy Ratio | 0.040 | 0.040 |
Tier 1 leverage ratio (to average assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 342,569 | $ 313,650 |
Tier 1 leverage ratio (to average assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 0.050 | 0.050 |
Tier 1 common equity (to risk-weighted assets), Actual Amount | $ 703,823 | $ 628,825 |
Tier 1 common equity (to risk-weighted assets), Actual Ratio | 0.115 | 0.123 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Amount | $ 274,838 | $ 230,815 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Ratio | 0.045 | 0.045 |
Tier 1 common equity (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 396,989 | $ 333,399 |
Tier 1 common equity (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 0.065 | 0.065 |
Tier 1 common equity (to risk-weighted assets), Minimum Capital Conservation Buffer | 0.025 | 0.025 |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 703,823 | $ 628,825 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 0.115 | 0.123 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Amount | $ 366,451 | $ 307,753 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Ratio | 0.060 | 0.060 |
Tier 1 capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 488,601 | $ 410,337 |
Tier 1 capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 0.080 | 0.080 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Conservation Buffer | 0.025 | 0.025 |
Total capital (to risk-weighted assets), Actual Amount | $ 762,969 | $ 673,876 |
Total capital (to risk-weighted assets), Actual Ratio | 0.125 | 0.131 |
Total capital (to risk-weighted assets), For Capital Adequacy Amount | $ 488,601 | $ 410,337 |
Total capital (to risk-weighted assets), For Capital Adequacy Ratio | 0.080 | 0.080 |
Total capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 610,752 | $ 512,922 |
Total capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 0.100 | 0.100 |
Total capital (to risk-weighted assets), Minimum Capital Conservation Buffer | 0.025 | 0.025 |
Percentage of capital conversion buffer | 4.50% | 5.10% |
EARNINGS PER COMMON SHARE (Comp
EARNINGS PER COMMON SHARE (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic | |||
Net Income (Loss) | $ 77,268 | $ 59,425 | $ 60,555 |
Less: Earnings allocated to participating securities | (365) | (141) | (739) |
Net income available to common stockholders | $ 76,903 | $ 59,284 | $ 59,816 |
Weighted average common shares outstanding including participating securities | 11,112,572 | 10,955,077 | 9,123,037 |
Less: Weighted average participating securities | (52,462) | (26,056) | (111,337) |
Weighted average common shares outstanding | 11,060,110 | 10,929,021 | 9,011,700 |
Basic earnings (in dollars per share) | $ 6.95 | $ 5.42 | $ 6.64 |
Diluted | |||
Net income allocated to common shareholders | $ 76,903 | $ 59,284 | $ 59,816 |
Weighted average common shares outstanding for basic earnings per common share | 11,060,110 | 10,929,021 | 9,011,700 |
Average shares and dilutive potential common shares | 11,129,900 | 11,200,184 | 9,272,822 |
Diluted earnings (in dollars per share) | $ 6.91 | $ 5.29 | $ 6.45 |
Employee Stock Option | |||
Diluted | |||
Add: Dilutive effects of assumed exercise of stock options | 170,648 | 170,792 | |
Performance-Based Restricted Stock Units (PRSUs) | |||
Diluted | |||
Add: Dilutive effects of assumed vesting units | 69,790 | 56,711 | 51,581 |
Restricted stock units | |||
Calculations of basic and diluted earnings per share | |||
Number of antidilutive shares not considered in computing diluted earnings per share | 248,234 | ||
Diluted | |||
Add: Dilutive effects of assumed vesting units | 43,804 | 38,749 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Changes in Accumulated Comprehensive Income Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance | $ 575,897 | $ 556,989 | $ 340,787 |
Other comprehensive income (loss), net of tax | 1,362 | (46,794) | (8,477) |
Balance | 659,021 | 575,897 | 556,989 |
AOCI (Loss), Net | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance | (54,298) | (7,504) | 973 |
Unrealized gain (loss) arising during the period, net of tax | 4,732 | (45,444) | (8,065) |
Reclassification adjustment for gain included in net income, net of tax | (3,370) | (1,350) | (412) |
Other comprehensive income (loss), net of tax | 1,362 | (46,794) | (8,477) |
Balance | (52,936) | (54,298) | (7,504) |
AFS Securities | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance | (61,834) | (8,253) | 2,283 |
Unrealized gain (loss) arising during the period, net of tax | 7,149 | (53,581) | (10,124) |
Reclassification adjustment for gain included in net income, net of tax | (412) | ||
Other comprehensive income (loss), net of tax | 7,149 | (53,581) | (10,536) |
Balance | (54,685) | (61,834) | (8,253) |
Cash Flow Hedges | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance | 7,536 | 749 | (1,310) |
Unrealized gain (loss) arising during the period, net of tax | (2,417) | 8,137 | 2,059 |
Reclassification adjustment for gain included in net income, net of tax | (3,370) | (1,350) | |
Other comprehensive income (loss), net of tax | (5,787) | 6,787 | 2,059 |
Balance | $ 1,749 | $ 7,536 | $ 749 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of Accumulated Comprehensive Income Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Gross Amount | $ (75,209) | $ (78,131) | $ (10,952) |
Other Comprehensive Income (Loss), Tax Component | 22,273 | 23,833 | 3,448 |
Other Comprehensive Income (Loss), Total | (52,936) | (54,298) | (7,504) |
AFS Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Gross Amount | (77,783) | (88,918) | (11,984) |
Other Comprehensive Income (Loss), Tax Component | 23,098 | 27,084 | 3,731 |
Other Comprehensive Income (Loss), Total | (54,685) | (61,834) | (8,253) |
Cash Flow Hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Gross Amount | 2,574 | 10,787 | 1,032 |
Other Comprehensive Income (Loss), Tax Component | (825) | (3,251) | (283) |
Other Comprehensive Income (Loss), Total | $ 1,749 | $ 7,536 | $ 749 |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Licensing fees | $ (12,818) | $ (10,477) | $ (8,606) |
Income tax (expense) benefit | (29,650) | (37,473) | (29,015) |
Total reclassifications, net of income tax | 77,268 | 59,425 | 60,555 |
Reclassifications out of accumulated other comprehensive (loss) income | AFS Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gain on Sale of Securities | 609 | ||
Income tax (expense) benefit | (197) | ||
Total reclassifications, net of income tax | $ 412 | ||
Reclassifications out of accumulated other comprehensive (loss) income | Cash Flow Hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Licensing fees | 4,864 | 1,949 | |
Income tax (expense) benefit | (1,494) | (599) | |
Total reclassifications, net of income tax | $ 3,370 | $ 1,350 |
ACCUMULATED OTHER COMPREHENSI_6
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Proceeds from sales and calls of securities and associated gains and losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||
Proceeds from Sales and Calls of Securities | $ 0 | $ 0 | $ 43.2 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of non-interest income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Non-interest income | $ 27,880 | $ 26,851 | $ 23,150 |
Service charges on deposit accounts | |||
Non-interest income | 6,071 | 5,747 | 4,755 |
Global Payments Group revenue | |||
Non-interest income | 19,005 | 19,341 | 16,445 |
Other service charges and fees | |||
Non-interest income | $ 2,804 | $ 1,763 | $ 1,950 |
DERIVATIVES - (Derivative posit
DERIVATIVES - (Derivative position) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount, derivative asset | $ 700,000 | |
Interest rate swaps and caps related to customer deposits and borrowings | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount, derivative asset | $ 700,000 | |
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 | $ 700,000 | |
Fair Value, Other Assets | 1,530 | |
Fair Value, Other Liabilities | 4,880 | |
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 | 1,157 | |
Fair Value, Other Liabilities | $ 1,157 |
DERIVATIVES (Cash flow hedge ac
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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of gain (loss) recognized in OCI, net of tax | $ (2,355) | $ 6,787 | $ (1,311) |
Amount of gain (loss) reclassified from OCI into income | $ 4,864 | $ 1,949 | |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Licensing Fees |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||||
Cash and due from banks | $ 31,973 | $ 26,780 | ||
Loans, net of allowance for loan losses | 5,566,832 | 4,795,647 | ||
Other assets | 172,571 | 148,337 | ||
Total assets | 7,067,672 | 6,267,337 | ||
Liabilities and Stockholders' Equity | ||||
Trust preferred securities | 20,620 | 20,620 | ||
Other liabilities | 93,976 | 124,604 | ||
Total liabilities | 6,408,651 | 5,691,440 | ||
Stockholders' equity: | ||||
Common stock | 111 | 109 | ||
Surplus | 395,871 | 389,276 | ||
Retained earnings | 315,975 | 240,810 | ||
Accumulated other comprehensive income (loss), net of tax | (52,936) | (54,298) | $ (7,504) | |
Total equity | 659,021 | 575,897 | $ 556,989 | $ 340,787 |
Total liabilities and stockholders' equity | 7,067,672 | 6,267,337 | ||
Parent Company | ||||
Assets | ||||
Cash and due from banks | 16,946 | 9,476 | ||
Loans, net of allowance for loan losses | 776 | |||
Investments | 620 | 620 | ||
Investment in subsidiary bank, at equity | 660,620 | 584,522 | ||
Other assets | 2,007 | 1,520 | ||
Total assets | 680,193 | 596,914 | ||
Liabilities and Stockholders' Equity | ||||
Trust preferred securities | 20,620 | 20,620 | ||
Other liabilities | 552 | 397 | ||
Total liabilities | 21,172 | 21,017 | ||
Stockholders' equity: | ||||
Common stock | 111 | 109 | ||
Surplus | 395,871 | 389,276 | ||
Retained earnings | 315,975 | 240,810 | ||
Accumulated other comprehensive income (loss), net of tax | (52,936) | (54,298) | ||
Total equity | 659,021 | 575,897 | ||
Total liabilities and stockholders' equity | $ 680,193 | $ 596,914 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION (Condensed Statements of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income: | |||
Loans | $ 345,039 | $ 231,851 | $ 164,528 |
Total interest income | 375,405 | 260,739 | 173,284 |
Interest expense | |||
Trust preferred securities | 1,468 | 799 | 424 |
Subordinated debt | 605 | 1,618 | |
Total interest expense | 152,569 | 31,581 | 16,283 |
Net interest expense | 222,836 | 229,158 | 157,001 |
Provision/(credit) for credit losses | 12,058 | 10,116 | |
Net interest expense after provision for loan losses | 210,553 | 219,042 | 153,185 |
Other expense | 15,855 | 13,354 | 8,940 |
Income before income tax expense | 106,918 | 96,898 | 89,570 |
Income tax benefit | 29,650 | 37,473 | 29,015 |
Net Income | 77,268 | 59,425 | 60,555 |
Comprehensive income | 78,630 | 12,631 | 52,078 |
Parent Company | |||
Income: | |||
Loans | 3 | 9 | 14 |
Securities and money market funds | 46 | 25 | 13 |
Total interest income | 49 | 34 | 27 |
Interest expense | |||
Trust preferred securities | 1,514 | 823 | 438 |
Subordinated debt | 605 | 1,618 | |
Total interest expense | 1,514 | 1,428 | 2,056 |
Net interest expense | (1,465) | (1,394) | (2,029) |
Provision/(credit) for credit losses | 4 | ||
Net interest expense after provision for loan losses | (1,461) | (1,394) | (2,029) |
Other expense | 5,227 | 2,767 | 1,288 |
Loss before undistributed earnings of subsidiary bank | (6,688) | (4,161) | (3,317) |
Equity in undistributed earnings of subsidiary bank | 82,101 | 62,357 | 62,798 |
Income before income tax expense | 75,413 | 58,196 | 59,481 |
Income tax benefit | 1,855 | 1,229 | 1,074 |
Net Income | 77,268 | 59,425 | 60,555 |
Comprehensive income | $ 78,630 | $ 12,631 | $ 52,078 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION (Condensed Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities | |||
Net Income | $ 77,268 | $ 59,425 | $ 60,555 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Cash dividend from subsidiary bank | (52) | (33) | (22) |
Other assets | (30,019) | 3,407 | 6,167 |
Increase (decrease) in other liabilities | (28,694) | 43,179 | (25,200) |
Net cash provided by (used in) operating activities | 42,426 | 85,891 | 37,277 |
Cash Flows From Investing Activities | |||
Net cash provided by (used in) investing activities | (775,449) | (1,229,350) | (1,302,997) |
Cash Flows From Financing Activities: | |||
Redemption of common stock for tax withholdings for restricted stock vesting | (3,170) | (1,559) | (3,385) |
Redemption of subordinated debt | 24,712 | ||
Proceeds from issuance of common stock, net | 162,687 | ||
Proceeds from exercise of stock options | 194 | ||
Net cash provided by (used in) financing activities | 745,070 | (958,473) | 2,760,765 |
Increase (decrease) in cash and cash equivalents | 12,047 | (2,101,932) | 1,495,045 |
Cash and cash equivalents at the beginning of the period | 257,418 | 2,359,350 | 864,305 |
Cash and cash equivalents at the end of the period | 269,465 | 257,418 | 2,359,350 |
Parent Company | |||
Cash Flows From Operating Activities | |||
Net Income | 77,268 | 59,425 | 60,555 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Undistributed earnings of subsidiary bank | (82,101) | (62,357) | (58,798) |
Cash dividend from subsidiary bank | 5,000 | 4,000 | |
Other operating adjustments | 9,697 | 6,351 | (746) |
Net cash provided by (used in) operating activities | 9,864 | 3,419 | 5,011 |
Cash Flows From Investing Activities | |||
Investments in subsidiary bank | (132,000) | ||
Proceeds from loan payments | 776 | ||
Net cash provided by (used in) investing activities | 776 | (132,000) | |
Cash Flows From Financing Activities: | |||
Redemption of common stock for tax withholdings for restricted stock vesting | (3,170) | (1,559) | (3,385) |
Redemption of subordinated debt | (24,712) | ||
Proceeds from issuance of common stock, net | 162,687 | ||
Net cash provided by (used in) financing activities | (3,170) | (26,271) | 159,302 |
Increase (decrease) in cash and cash equivalents | 7,470 | (22,852) | 32,313 |
Cash and cash equivalents at the beginning of the period | 9,476 | 32,328 | 15 |
Cash and cash equivalents at the end of the period | $ 16,946 | $ 9,476 | $ 32,328 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 77,268 | $ 59,425 | $ 60,555 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 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 |