Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity File Number | 001-34096 | ||
Entity Registrant Name | DIME COMMUNITY BANCSHARES, INC. | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 11-2934195 | ||
Entity Address, Address Line One | 898 VETERANS MEMORIAL HIGHWAY, SUITE 560 | ||
Entity Address, City or Town | HAUPPAUGE | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 11788 | ||
City Area Code | 631- | ||
Local Phone Number | 537-1000 | ||
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 | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 41,488,275 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000846617 | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 377,838,854 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | DCOM | ||
Security Exchange Name | NASDAQ | ||
Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock | ||
Trading Symbol | DCOMP | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 107,729 | $ 77,693 |
Interest-bearing deposits with banks | 769,099 | 39,501 |
Total cash and cash equivalents | 876,828 | 117,194 |
Securities available for sale, at fair value | 450,360 | 638,291 |
Securities held to maturity (fair value of $89,325 and $135,027, respectively) | 85,700 | 133,638 |
Total securities | 536,060 | 771,929 |
Securities, restricted | 23,362 | 32,879 |
Loans held for sale | 52,785 | 12,643 |
Loans held for investment | 4,597,403 | 3,680,285 |
Allowance for credit losses | (44,200) | (32,786) |
Loans, net | 4,553,203 | 3,647,499 |
Premises and equipment, net | 34,872 | 34,062 |
Operating lease right-of-use assets | 44,007 | 43,450 |
Accrued interest receivable | 16,566 | 10,908 |
Goodwill | 105,950 | 105,950 |
Other intangible assets | 3,378 | 3,677 |
Prepaid pension | 10,313 | 10,988 |
Bank owned life insurance | 93,900 | 91,942 |
Other assets | 83,072 | 38,399 |
Total assets | 6,434,296 | 4,921,520 |
Liabilities | ||
Demand deposits | 2,472,727 | 1,518,958 |
Savings, NOW and money market deposits | 2,728,081 | 1,987,712 |
Certificates of deposit of $100,000 or more | 216,017 | 214,093 |
Other time deposits | 72,428 | 93,884 |
Total deposits | 5,489,253 | 3,814,647 |
Repurchase agreements | 1,223 | 999 |
Federal Home Loan Bank ("FHLB") advances | 215,000 | 435,000 |
Subordinated debentures, net | 79,059 | 78,920 |
Operating lease liabilities | 46,713 | 45,977 |
Other liabilities and accrued expenses | 85,217 | 48,823 |
Total liabilities | 5,916,465 | 4,424,366 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, par value $.01 per share (2,000,000 shares authorized; none issued) | ||
Common stock, par value $.01 per share (40,000,000 shares authorized; 19,951,955 and 19,898,022 shares issued, respectively; and 19,743,710 and 19,836,797 shares outstanding, respectively) | 199 | 199 |
Surplus | 360,741 | 356,436 |
Retained earnings | 172,075 | 150,703 |
Treasury stock at cost, 208,245 and 61,225 shares, respectively | (5,056) | (1,843) |
Total stockholders' equity before accumulated other comprehensive income (loss) | 527,959 | 505,495 |
Accumulated other comprehensive loss, net of income taxes | (10,128) | (8,341) |
Total stockholders' equity | 517,831 | 497,154 |
Total liabilities and stockholders' equity | $ 6,434,296 | $ 4,921,520 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets | ||
Securities held to maturity, fair value (in dollars) | $ 89,325 | $ 135,027 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 19,951,955 | 19,898,022 |
Common stock, shares outstanding | 19,743,710 | 19,836,797 |
Treasury Stock, shares | 208,245 | 61,225 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income: | |||
Loans (including fee income) | $ 169,411 | $ 158,228 | $ 144,380 |
Mortgage-backed securities, CMOs and other asset-backed securities | 9,329 | 16,182 | 16,591 |
U.S. GSE securities | 365 | 465 | 837 |
State and municipal obligations | 1,843 | 2,234 | 2,812 |
Corporate bonds | 1,070 | 1,200 | 1,422 |
Deposits with banks | 673 | 1,697 | 1,076 |
Other interest and dividend income | 1,541 | 1,535 | 1,866 |
Total interest income | 184,232 | 181,541 | 168,984 |
Interest expense: | |||
Savings, NOW and money market deposits | 10,435 | 23,687 | 15,928 |
Certificates of deposit of $100,000 or more | 3,346 | 4,270 | 3,007 |
Other time deposits | 1,198 | 1,502 | 1,801 |
Federal funds purchased and repurchase agreements | 79 | 767 | 1,200 |
FHLB advances | 3,992 | 4,573 | 5,729 |
Subordinated debentures | 4,401 | 4,539 | 4,539 |
Total interest expense | 23,451 | 39,338 | 32,204 |
Net interest income | 160,781 | 142,203 | 136,780 |
Provision for credit losses | 11,500 | 5,700 | 1,800 |
Net interest income after provision for credit losses | 149,281 | 136,503 | 134,980 |
Non-interest income: | |||
Service charges and other fees | 8,955 | 10,059 | 9,853 |
Net securities gains (losses) | 3,525 | 201 | (7,921) |
Loss on termination of swaps | (3,403) | ||
Change in fair value of loans held for sale | (2,877) | ||
Title fees | 2,337 | 1,720 | 1,797 |
Gain on sale of Small Business Administration ("SBA") loans | 3,940 | 1,984 | 2,078 |
Bank owned life insurance | 2,186 | 2,230 | 2,219 |
Loan swap fees | 3,742 | 7,460 | 716 |
Other | 1,298 | 1,733 | 2,826 |
Total non-interest income | 19,703 | 25,387 | 11,568 |
Non-interest expense: | |||
Salaries and employee benefits | 67,159 | 56,244 | 50,458 |
Occupancy and equipment | 14,287 | 14,372 | 13,245 |
Technology and communications | 9,712 | 7,905 | 6,465 |
Marketing and advertising | 3,287 | 4,740 | 4,597 |
Professional services | 4,988 | 3,797 | 4,004 |
FDIC assessments | 1,950 | 608 | 1,665 |
Net fraud loss | 8,900 | ||
Office relocation costs | 750 | ||
Restructuring Costs | 4,452 | ||
Amortization of other intangible assets | 656 | 787 | 917 |
Other | 6,766 | 7,686 | 7,179 |
Total non-interest expense | 113,257 | 96,139 | 98,180 |
Income before income taxes | 55,727 | 65,751 | 48,368 |
Income tax expense | 13,685 | 14,060 | 9,141 |
Net income | $ 42,042 | $ 51,691 | $ 39,227 |
Basic earnings per share (in dollars per share) | $ 2.11 | $ 2.59 | $ 1.97 |
Diluted earnings per share (in dollars per share) | $ 2.11 | $ 2.59 | $ 1.97 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 42,042 | $ 51,691 | $ 39,227 |
Other comprehensive (loss) income: | |||
Change in unrealized net gains (losses) on securities available for sale, net of reclassifications and deferred income taxes | 3,916 | 10,856 | (348) |
Adjustment to pension liability, net of reclassifications and deferred income taxes | (1,865) | (410) | (832) |
Unrealized (losses) gains on cash flow hedges, net of reclassifications and deferred income taxes | (3,838) | (3,675) | 1,007 |
Total other comprehensive (loss) income | (1,787) | 6,771 | (173) |
Comprehensive income | $ 40,255 | $ 58,462 | $ 39,054 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | SurplusCumulative Effect, Period of Adoption, Adjusted Balance | Surplus | Retained EarningsEffect of adoption | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Treasury StockCumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Loss | Effect of adoption | Cumulative Effect, Period of Adoption, Adjusted Balance | Total |
Balance at Dec. 31, 2017 | $ 197 | $ 347,691 | $ 96,547 | $ (296) | $ (14,939) | $ 429,200 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 39,227 | 39,227 | ||||||||||||
Shares issued under the dividend reinvestment plan ("DRP") | 954 | 954 | ||||||||||||
Shares issued under the Employee Stock Purchase Plan ("ESPP") | 63 | 63 | ||||||||||||
Stock awards granted and distributed | 1 | (539) | 538 | |||||||||||
Stock awards forfeited | 437 | (437) | ||||||||||||
Repurchase of surrendered stock from vesting of stock plans | 586 | 586 | ||||||||||||
Share based compensation expense | 3,487 | 3,487 | ||||||||||||
Cash dividend declared | (18,342) | (18,342) | ||||||||||||
Other comprehensive (loss) income, net of deferred income taxes | (173) | (173) | ||||||||||||
Balance at Dec. 31, 2018 | 198 | 352,093 | 117,432 | (781) | (15,112) | 453,830 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 51,691 | 51,691 | ||||||||||||
Shares issued under the dividend reinvestment plan ("DRP") | 867 | 867 | ||||||||||||
Shares issued under the Employee Stock Purchase Plan ("ESPP") | 235 | 235 | ||||||||||||
Purchase of treasury stock | (625) | (625) | ||||||||||||
Stock awards granted and distributed | 1 | (988) | 987 | |||||||||||
Stock awards forfeited | 555 | (555) | ||||||||||||
Repurchase of surrendered stock from vesting of stock plans | 18 | 869 | 887 | |||||||||||
Share based compensation expense | 3,692 | 3,692 | ||||||||||||
Cash dividend declared | (18,420) | (18,420) | ||||||||||||
Other comprehensive (loss) income, net of deferred income taxes | 6,771 | 6,771 | ||||||||||||
Balance at Dec. 31, 2019 | $ 199 | 199 | $ 356,436 | 356,436 | $ (1,473) | $ 149,230 | 150,703 | $ (1,843) | (1,843) | $ (8,341) | (8,341) | $ (1,473) | $ 495,681 | 497,154 |
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 42,042 | 42,042 | ||||||||||||
Shares issued under the dividend reinvestment plan ("DRP") | 1,012 | 1,012 | ||||||||||||
Shares issued under the Employee Stock Purchase Plan ("ESPP") | 255 | 255 | ||||||||||||
Purchase of treasury stock | (4,633) | (4,633) | ||||||||||||
Stock awards granted and distributed | (4,167) | 4,167 | ||||||||||||
Stock awards forfeited | 222 | (222) | ||||||||||||
Repurchase of surrendered stock from vesting of stock plans | 656 | 2,525 | 3,181 | |||||||||||
Share based compensation expense | 7,639 | 7,639 | ||||||||||||
Cash dividend declared | (19,197) | (19,197) | ||||||||||||
Other comprehensive (loss) income, net of deferred income taxes | (1,787) | (1,787) | ||||||||||||
Balance at Dec. 31, 2020 | $ 199 | $ 360,741 | $ 172,075 | $ (5,056) | $ (10,128) | $ 517,831 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Stockholders' Equity | |||
Shares issued under the dividend reinvestment plan ("DRP") (in shares) | 39,600 | 24,529 | 25,154 |
Shares issued under the Employee Stock Purchase Plan ("ESPP") (in shares) | 11,413 | 7,888 | 3,758 |
Purchase of treasury stock (in shares) | 179,620 | 22,600 | |
Stock awards granted and distributed (in shares) | 136,662 | 82,210 | 84,910 |
Stock awards forfeited (in shares) | 6,593 | 19,531 | 15,225 |
Repurchase of surrendered stock from vesting of stock plans (in shares) | 95,892 | 26,583 | 17,073 |
Cash dividend declared (in dollars per share) | $ 0.96 | $ 0.92 | $ 0.92 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 42,042 | $ 51,691 | $ 39,227 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 11,500 | 5,700 | 1,800 |
Depreciation and amortization of premises and equipment | 4,319 | 4,253 | 3,822 |
Net (accretion) and other amortization | (940) | (1,375) | (2,093) |
Net amortization on securities | 3,585 | 4,365 | 4,009 |
Increase in cash surrender value of bank owned life insurance | (2,186) | (2,230) | (2,219) |
Amortization of other intangible assets | 656 | 787 | 917 |
Share based compensation expense | 7,639 | 3,692 | 3,487 |
Net securities (gains) losses | (3,525) | (201) | 7,921 |
Loss on termination of swaps | 3,403 | ||
Change in fair value of loans held for sale | 2,877 | ||
(Increase) decrease in accrued interest receivable | (5,658) | 328 | 416 |
SBA loans originated for sale | (47,741) | (27,419) | (28,340) |
Proceeds from sale of the guaranteed portion of SBA loans | 52,643 | 29,922 | 30,898 |
Gain on sale of the guaranteed portion of SBA loans | (3,940) | (1,984) | (2,078) |
Gain on sale of loans | (441) | ||
(Increase) decrease in other assets | (11,916) | 3,942 | (2,373) |
(Decrease) increase in other liabilities | (5,371) | (1,509) | 3,430 |
Net cash provided by operating activities | 47,387 | 69,962 | 58,383 |
Cash flows from investing activities: | |||
Purchases of securities available for sale | (363,224) | (141,297) | (255,746) |
Purchases of securities, restricted | (52,988) | (97,206) | (505,272) |
Purchases of securities held to maturity | (1,000) | ||
Proceeds from sales of securities available for sale | 152,980 | 46,478 | 230,372 |
Redemption of securities, restricted | 62,505 | 88,355 | 516,593 |
Maturities, calls and principal payments of securities available for sale | 404,093 | 149,456 | 92,818 |
Maturities, calls and principal payments of securities held to maturity | 47,505 | 25,642 | 20,851 |
Net increase in loans | (962,582) | (421,024) | (213,973) |
Proceeds from loan sale | 40,133 | ||
Proceeds from sales of other real estate owned ("OREO"), net | 297 | ||
Purchase of premises and equipment | (5,129) | (3,307) | (5,325) |
Net cash used in investing activities | (716,840) | (352,606) | (80,549) |
Cash flows from financing activities: | |||
Net increase (decrease) in deposits | 1,674,607 | (71,728) | 551,891 |
Net decrease in federal funds purchased | (50,000) | ||
Net (decrease) increase in FHLB advances | (220,000) | 194,568 | (260,855) |
Net increase (decrease) in repurchase agreements | 224 | 460 | (338) |
Net proceeds from issuance of common stock | 1,267 | 1,102 | 1,017 |
Purchase of treasury stock | (4,633) | (625) | |
Repurchase of surrendered stock from vesting of stock plans | (3,181) | (887) | (586) |
Cash dividends paid | (19,197) | (18,420) | (18,342) |
Net cash provided by financing activities | 1,429,087 | 104,470 | 222,787 |
Net increase (decrease) in cash and cash equivalents | 759,634 | (178,174) | 200,621 |
Cash and cash equivalents at beginning of period | 117,194 | 295,368 | 94,747 |
Cash and cash equivalents at end of period | 876,828 | 117,194 | 295,368 |
Cash paid for: | |||
Interest | 24,037 | 39,395 | 32,254 |
Income taxes | 12,457 | 9,158 | 2,474 |
Non-cash investing and financing activities: | |||
Transfers from portfolio loans to loans held for sale | $ 43,019 | $ 12,643 | |
Transfers from portfolio loans to other real estate owned | $ 175 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation On February 1, 2021, Dime Community Bancshares, Inc., (“Legacy Dime”) merged with and into Bridge Bancorp, Inc., (“Legacy Bridge”) (the “Merger”), with Legacy Bridge as the surviving corporation under the name “Dime Community Bancshares, Inc.” (the “Holding Company”). The consolidated financial statements include the Holding Company, which was known as “Bridge Bancorp, Inc.” prior to the Merger, a bank holding company incorporated under the laws of the State of New York, engaged in commercial banking and financial services through its wholly-owned subsidiary, Dime Community Bank, (the “Bank”), which was known as “BNB Bank” prior to the Merger, together referred to as the “Company.” The Bank’s operations include its real estate investment trust subsidiary, Bridgehampton Community, Inc.; a financial title insurance subsidiary, Bridge Abstract LLC (“Bridge Abstract”); and an investment services subsidiary, Bridge Financial Services, Inc. (“Bridge Financial Services”). Intercompany transactions and balances are eliminated in consolidation. The Company’s consolidated financial statements, including notes thereto, and accounting policies and practices are as of December 31, 2020, and do not include the operations of Legacy Dime. The Company provides financial services through its branches in its primary market areas of Suffolk and Nassau Counties on Long Island and the New York City boroughs. The Bank’s primary deposit products are time, savings and demand deposits from the consumers, businesses and local municipalities in its market area. Its primary lending products are commercial real estate, multi-family, commercial and industrial, and residential mortgage loans. There are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the area. The audited consolidated financial statements presented in this Annual Report on Form 10-K include the collective results of the Holding Company and its wholly-owned subsidiary, the Bank, which are collectively herein referred to as “we”, “us”, “our” and the “Company.” The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and general practices within the financial institution industry. The following is a description of the significant accounting policies that the Company follows in preparing its consolidated financial statements. Use of Estimates The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual future results could differ. COVID-19 Risks In December 2019, a novel coronavirus (“COVID-19”) was reported in China, and, in March 2020, the World Health Organization declared COVID-19 a pandemic. On March 12, 2020, the President of the United States declared the COVID-19 outbreak in the United States a national emergency. The Company’s audited consolidated financial statements reflect the impact of COVID-19 on the assumptions and estimates used. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 outbreak on the Company’s business. The extent of such impact will depend on future developments, which are highly uncertain, including when COVID-19 can be controlled and abated and when and how the economy may be reopened. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, the Company is subject to the following risks, any of which could have a material, adverse effect on its business, financial condition, liquidity, and results of operations: ● demand for the Company’s products and services may decline, making it difficult to grow assets and income; ● if the economy is unable to substantially reopen or remain open, and high levels of unemployment continue, for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; ● collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; ● the Company’s allowance for credit losses (“ACL”) may have to be increased if borrowers experience financial difficulties beyond forbearance periods, which will adversely affect the Company’s net income; ● the Company may recognize impairment of its goodwill; ● the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to the Company; ● as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on the Company’s assets may decline to a greater extent than the decline in its cost of interest-bearing liabilities, reducing net interest margin and spread and reducing net income; ● a material decrease in net income or a net loss over several quarters could result in a decrease in the rate of the Company’s quarterly cash dividend; ● the Company’s cyber security risks are increased as the result of an increase in the number of employees working remotely; and ● the Company relies on third party vendors for certain services and the unavailability of a critical service due to the COVID-19 outbreak could have an adverse effect on the Company. Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest- earning deposits with banks, and federal funds sold, which mature overnight. Net cash flows are reported for customer loan and deposit transactions, federal funds purchased, FHLB advances, and repurchase agreements. Securities Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting in observable price changes in orderly transactions for the identical or a similar investment. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. The Company has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest separately in accrued interest receivable in the consolidated balance sheet. A debt security is placed on non-accrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on non-accrual is reversed against interest income. There were no non-accrual debt securities at December 31, 2020 and there was no accrued interest related to debt securities reversed against interest income for the year ended December 31, 2020. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. On January 1, 2020, the Company adopted the CECL Standard, which requires that debt securities held to maturity be accounted for under the current expected credit losses model, including historical loss experience and impact of current conditions and reasonable and supportable forecasts, with an associated allowance for credit losses. In addition, while credit losses on debt securities available for sale should be measured in accordance with the other-than-temporary impairment (“OTTI”) framework under current GAAP, the amendments in the CECL Standard require that these credit losses be presented as an allowance for credit losses. For AFS debt securities, a decline in fair value due to credit loss results in recording an allowance for credit losses to the extent the fair value is less than the amortized cost basis. Held to maturity debt securities and the allowance for credit losses To the extent that debt securities in the held-to-maturity portfolio share common risk characteristics, estimated expected credit losses are calculated in a manner like that used for loans held for investment. That is, for pools of such debt securities with common risk characteristics, the historical lifetime probability of default and severity of loss in the event of default is derived or obtained from external sources and adjusted for the expected effects of reasonable and supportable forecasts over the expected lives of the securities. Expected credit loss on each debt security in the held-to-maturity portfolio that do not share common risk characteristics with any of the pools of debt securities is individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded amortized cost basis of the security. With respect to certain classes of debt securities, primarily U.S. Treasuries and securities issued by Government Sponsored Entities, the Company considers the history of credit losses, current conditions and reasonable and supportable forecasts, which may indicate that the expectation that nonpayment of the amortized cost basis is or continues to be zero, even if the U.S. government were to technically default. Therefore, for those securities, the Company does not record expected credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Available for sale debt securities and the allowance for credit losses Management evaluates available for sale debt securities for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the near-term prospects of the issuer. Impairment may result from credit deterioration of the issuer or collateral underlying the security. In performing an assessment of whether any decline in fair value is due to a credit loss, all relevant information is considered at the individual security level. For asset-backed securities performance indicators considered related to the underlying assets include default rates, delinquency rates, percentage of non-performing assets, debt-to-collateral ratios, third party guarantees, current levels of subordination, vintage, geographic concentration, analyst reports and forecasts, credit ratings and other market data. In assessing whether a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount the fair value is less than amortized cost basis. Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are excluded from earnings and reported, net of tax, in other comprehensive income (“OCI”). Management also assesses whether it intends to sell or is more likely than not that it will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. Accrued interest receivable is excluded from the estimate of credit losses. Securities, Restricted Securities, restricted represents FHLB, Federal Reserve Bank (“FRB”) and bankers’ banks stock, which are reported at cost. The Bank is a member of the FHLB system. Members are required to own a particular amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Loans Held for Sale Loans held for sale are carried at the lower of aggregate cost or estimated fair value. Any subsequent declines in fair value below the initial carrying value are recorded as a valuation allowance, which is established through a charge to earnings. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal amount outstanding, net of partial charge-offs, deferred origination costs and fees and purchase premiums and discounts. Loan origination and commitment fees and certain direct and indirect costs incurred in connection with loan originations are deferred and amortized to income over the life of the related loans as an adjustment to yield. When a loan prepays, the remaining unamortized net deferred origination fees or costs are recognized in the current year. Interest on loans is credited to income based on the principal outstanding during the period. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in accrued interest receivable on consolidated balance sheets. Past due status is based on the contractual terms of the loan. Loans that are 90 days past due are automatically placed on non-accrual and previously accrued interest is reversed and charged against interest income. However, if the loan is in the process of collection and the Bank has reasonable assurance that the loan will be fully collectable based upon an individual loan evaluation assessing such factors as collateral and collectability, accrued interest will be recognized as earned. If a payment is received when a loan is non-accrual or a troubled debt restructuring (“TDR”) loan is non-accrual, the payment is applied to the principal balance. A TDR loan performing in accordance with its modified terms is maintained on accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans that were acquired through the acquisition of Community National Bank on June 19, 2015 and First National Bank of New York on February 14, 2014 were initially recorded at fair value with no carryover of the related allowance for loan losses. After acquisition, losses are recognized through the allowance for loan losses. Determining fair value of the loans involves estimating the amount and timing of expected principal and interest cash flows to be collected on the loans and discounting those cash flows at a market interest rate. Some of the loans at the time of acquisition showed evidence of credit deterioration since origination. These loans were considered purchased credit impaired (“PCI”) loans. As of December 31, 2019, the remaining balance of PCI loans was immaterial to the Company’s financial condition and results of operations. Unless otherwise noted, the above policy is applied consistently to all loan segments. Allowance for Credit Losses On January 1, 2020, we adopted the CECL Standard, which requires that loans held for investment be accounted for under the current expected credit losses model. Although the CARES Act provided the option to delay the adoption of the current expected credit loss model until the earlier of December 31, 2020 or the termination of the current national emergency declaration related to the COVID-19 outbreak, we implemented the CECL Standard in the first quarter of 2020 as previously planned. The allowance for credit losses is established and maintained through a provision for credit losses based on expected losses inherent in our loan portfolio. Management evaluates the adequacy of the allowance on a quarterly basis. Management monitors its entire loan portfolio regularly, with consideration given to detailed analysis of classified loans, repayment patterns, past loss experience, various types of concentrations of credit, current economic conditions, and reasonable and supportable forecasts. Additions to the allowance are charged to expense and realized losses, net of recoveries, are charged against the allowance. The credit loss estimation process involves procedures to appropriately consider the unique characteristics of our loan portfolio segments. These segments are further disaggregated into loan risk ratings, the level at which credit risk is monitored. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on expected loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and provision for credit losses in those future periods. Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in our process for estimation of expected credit losses. The allowance level is influenced by loan volumes, loan risk rating migration, historic loss experience and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses has two basic components: (1) an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans; and (2) a pooled component for estimated expected credit losses for pools of loans that share similar risk characteristics. Loans that do not share similar credit risk characteristics For a loan that does not share risk characteristics with other loans, expected credit loss is measured based on net realizable value, that is, the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan. For these loans, the Company recognizes expected credit loss equal to the amount by which the net realizable value of the loan is less than the amortized cost basis of the loan (which is net of previous charge-offs), except when the loan is collateral dependent, that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated costs to sell the loan if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. The fair value of real estate collateral is determined based on recent appraised values. Appraisals are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. All appraisals undergo a second review process to ensure that the methodology employed and the values derived are reasonable. Generally, collateral values for real estate loans for which measurement of expected losses is dependent on collateral values are updated every twelve months. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the borrower and its business. Once the expected credit loss amount is determined, an allowance is provided for equal to the calculated expected credit loss and included in the allowance for credit losses. Pursuant to the Company’s policy, credit losses must be charged-off in the period the loans, or portions thereof, are deemed uncollectable. Loans that share similar credit risk characteristics In estimating the component of the allowance for credit losses for loans that share similar risk characteristics with other loans, such loans are segmented into loan types. Loans are designated into loan pools with similar risk characteristics based on product type in conjunction with other homogeneous characteristics. Loan types include commercial real estate mortgages, owner and non-owner occupied; multi-family mortgage loans; residential real estate mortgages and home equity loans; commercial, industrial and agricultural loans, real estate construction and land loans; and consumer loans. In determining the allowance for credit losses, the Company derives an estimated credit loss assumption from a model that categorizes loan pools based on loan type and further segmented by risk rating. This model is known as Probability of Default/Loss Given Default, utilizing a Transition Matrix approach. This model calculates an expected loss percentage for each loan pool by considering the probability of default, based upon the historical transition or migration of loans from performing (various pass ratings) to criticized, and classified risk ratings to default by risk rating buckets using life-of-loan analysis runout periods for all loan segments, and the historical severity of loss, based on the aggregate net lifetime losses (loss given default) per loan pool. The default trigger, which is defined as the earlier of ninety days past-due or non-accrual status, and severity factors used to calculate the allowance for credit losses for loans in pools that share similar risk characteristics with other loans, are adjusted for differences between the historical period used to calculate historical default and loss severity rates and expected conditions over the remaining lives of the loans in the portfolio. These factors include: (1) lending policies and procedures; (2) international, national, regional and local economic business conditions and developments that affect the collectability of the portfolio, including the condition of various markets; (3) the nature and volume of the loan portfolio including the terms of the loans; (4) the experience, ability, and depth of the lending management and other relevant staff; (5) the volume and severity of past due and adversely classified or graded loans and the volume of non-accrual loans; (6) the quality of our loan review system; (7) the value of underlying collateral for collateralized loans; (8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and (9) the effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio. Such factors are used to adjust the historical probabilities of default and severity of loss for current conditions that are not reflective of the model results. In addition, the economic factor includes management’s expectation of future conditions based on a reasonable and supportable forecast of the economy. To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made (currently two years), the Bank reverts immediately back to the historical rates of default and severity of loss. Management believes that this transition approach to the Probability of Default/Loss Given Default is a relevant calculation of expected credit losses as there is sufficient volume as well as movement in the risk ratings due to the initial grading system as well as timely updates to risk ratings when necessary. Credit risk ratings are based on management’s evaluation of a credit’s cash flow, collateral, guarantor support, financial disclosures, industry trends and strength of borrowers’ management. Future additions or reductions to the allowance may be necessary based on changes in economic, market or other conditions. Changes in estimates could result in a material change in the allowance. In addition, various regulatory agencies, as an integral part of the examination process, periodically review the allowance for credit losses. Such agencies may require the Bank to recognize adjustments to the allowance based on their judgments of the information available to them at the time of their examination. A loan is considered a potential charge-off when it is in default of either principal or interest for a period of 90, 120 or 180 days, depending upon the loan type, as of the end of the prior month. In addition to delinquency criteria, other triggering events may include, but are not limited to, notice of bankruptcy by the borrower or guarantor, death of the borrower, and deficiency balance from the sale of collateral. Unless otherwise noted, the above policy is applied consistently to all loan portfolio segments. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as unused lines of credit, 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 on the balance sheet when they are funded. In accordance with the CECL Standard, the Company maintains a separate reserve for off-balance sheet credit instruments, which is included in other liabilities on the consolidated statements of financial condition. Management estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Company and applying the loss factors, current conditions and forecasting adjustments used in the allowance for credit loss methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan type. No credit loss estimate is reported for off-balance sheet credit exposures that are unconditionally cancellable by the Company. At December 31, 2020, the reserve for off-balance sheet credit exposures was immaterial to the Company’s consolidated statements of financial condition and results of operations. Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with a useful life of fifty years for buildings and a range of two Improvements and major repairs are capitalized, while the cost of ordinary maintenance, repairs and minor improvements are charged to expense. Bank-Owned Life Insurance The Bank is the owner and beneficiary of life insurance policies on certain employees. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Other Real Estate Owned Real estate properties acquired through, or in lieu of, foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Goodwill and Other Intangible Assets Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and indefinite-lived intangible assets are not amortized, but tested for impairment at least annually, or more frequently if events and circumstances exist that indicate the carrying amount of the asset may be impaired. The Company has selected November 30 as the date to perform the annual impairment test. Goodwill and the BNB Bank Other intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangible assets are amortized on an accelerated method over their estimated useful lives of ten years. Other intangible assets also include servicing rights, which result from the sale of SBA loans with servicing rights retained. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Derivatives The Company records cash flow hedges at the inception of the derivative contract based on the Company’s intentions and belief as to likely effectiveness as a hedge. Cash flow hedges represent 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 other comprehensive income (“OCI”) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or 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 fair values or 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 fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
SECURITIES. | |
SECURITIES | 2. SECURITIES The following table summarizes the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio at December 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses, respectively: December 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: State and municipal obligations $ 40,448 $ 1,650 $ (10) $ 42,088 U.S. GSE residential mortgage-backed securities 111,398 1,843 (6) 113,235 U.S. GSE residential collateralized mortgage obligations 127,369 1,661 (226) 128,804 U.S. GSE commercial mortgage-backed securities 24,920 140 (253) 24,807 U.S. GSE commercial collateralized mortgage obligations 61,102 1,286 (52) 62,336 Other asset backed securities 24,250 — (300) 23,950 Corporate bonds 56,500 195 (1,555) 55,140 Total available for sale 445,987 6,775 (2,402) 450,360 Gross Gross Estimated Amortized Unrecognized Unrecognized Fair (In thousands) Cost Gains Losses Value Held to maturity: State and municipal obligations 23,715 1,406 — 25,121 U.S. GSE residential mortgage-backed securities 6,272 227 — 6,499 U.S. GSE residential collateralized mortgage obligations 18,511 489 (9) 18,991 U.S. GSE commercial mortgage-backed securities 13,069 625 — 13,694 U.S. GSE commercial collateralized mortgage obligations 24,133 887 — 25,020 Total held to maturity 85,700 3,634 (9) 89,325 Total securities $ 531,687 $ 10,409 $ (2,411) $ 539,685 As of December 31, 2020, none of the Company’s available for sale debt securities were in an unrealized loss position due to credit and therefore no allowance for credit losses on available for sale debt securities was required. Additionally, the calculated allowance for credit losses on held to maturity securities was inconsequential given the high quality composition of the Company’s held to maturity portfolio and therefore no allowance for credit losses was recorded. Accrued interest receivable on securities totaling $1.4 million at December 31, 2020 was included in accrued interest receivable in the consolidated balance sheet and excluded from the amortized cost and estimated fair value totals in the table above. The following table summarizes the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio at December 31, 2019 and the corresponding amounts of gross unrealized gains and losses therein: December 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: U.S. Treasury securities $ 50,833 $ — $ (11) $ 50,822 U.S. GSE securities 5,000 — (5) 4,995 State and municipal obligations 34,303 704 (43) 34,964 U.S. GSE residential mortgage-backed securities 84,550 609 (468) 84,691 U.S. GSE residential collateralized mortgage obligations 278,149 1,166 (1,464) 277,851 U.S. GSE commercial mortgage-backed securities 13,656 23 (70) 13,609 U.S. GSE commercial collateralized mortgage obligations 102,722 1,723 (289) 104,156 Other asset-backed securities 24,250 — (849) 23,401 Corporate bonds 46,000 — (2,198) 43,802 Total available for sale 639,463 4,225 (5,397) 638,291 Held to maturity: State and municipal obligations 41,008 809 — 41,817 U.S. GSE residential mortgage-backed securities 8,142 5 (54) 8,093 U.S. GSE residential collateralized mortgage obligations 39,936 624 (62) 40,498 U.S. GSE commercial mortgage-backed securities 17,215 102 (82) 17,235 U.S. GSE commercial collateralized mortgage obligations 27,337 191 (144) 27,384 Total held to maturity 133,638 1,731 (342) 135,027 Total securities $ 773,101 $ 5,956 $ (5,739) $ 773,318 The following table summarizes available for sale debt securities with gross unrealized losses for which an allowance for credit losses has not been recorded at December 31, 2020, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position: December 31, 2020 Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Available for sale: State and municipal obligations $ 5,310 $ (10) $ — $ — U.S. GSE residential mortgage-backed securities — — 152 (6) U.S. GSE residential collateralized mortgage obligations 55,832 (226) — — U.S. GSE commercial mortgage-backed securities 14,994 (253) — — U.S. GSE commercial collateralized mortgage obligations 11,755 (52) — — Other asset backed securities — — 3,450 (300) Corporate bonds 7,927 (73) 29,518 (1,482) Total available for sale $ 95,818 $ (614) $ 33,120 $ (1,788) The following table summarizes securities with gross unrealized losses at December 31, 2019, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position: December 31, 2019 Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Available for sale: U.S. Treasury securities $ 50,822 $ (11) $ — $ — U.S. GSE securities — — 4,995 (5) State and municipal obligations 4,982 (42) 76 (1) U.S. GSE residential mortgage-backed securities 2,935 (30) 39,617 (438) U.S. GSE residential collateralized mortgage obligations 81,377 (480) 93,403 (984) U.S. GSE commercial mortgage-backed securities 6,648 (70) — — U.S. GSE commercial collateralized mortgage obligations 28,710 (145) 9,614 (144) Other asset-backed securities — — 23,401 (849) Corporate bonds — — 43,802 (2,198) Total available for sale $ 175,474 $ (778) $ 214,908 $ (4,619) Held to maturity: U.S. GSE residential mortgage-backed securities — — 7,268 (54) U.S. GSE residential collateralized mortgage obligations 6,750 (17) 6,105 (45) U.S. GSE commercial mortgage-backed securities — — 5,034 (82) U.S. GSE commercial collateralized mortgage obligations 13,038 (57) 4,300 (87) Total held to maturity $ 19,788 $ (74) $ 22,707 $ (268) Other-Than-Temporary Impairment Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At December 31, 2020, substantially all of the securities in an unrealized loss position had a variable interest rate and the cause of the temporary impairment was directly related to changes in interest rates. The Company generally views changes in fair value caused by changes in interest rates as temporary, which is consistent with its experience. Other asset backed securities are comprised of student loan backed bonds, which are guaranteed by the U.S. Department of Education for 97% to 100% of principal. Additionally, the bonds have credit support of 3% to 5% and have maintained their Aa3 Moody’s rating during the time the Bank has owned them. The corporate bonds within the portfolio have all maintained an investment grade rating by either Moody’s or Standard and Poor’s. None of the unrealized losses is related to credit losses. The Company does not have the intent to sell these securities and it is more likely than not that it will not be required to sell the securities before their anticipated recovery. The issuers continue to make timely principal and interest payments on the debt. The fair value is expected to recover as the securities approach maturity. Therefore, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2020. Sales and Calls of Securities There were $153.0 million of proceeds on sales of available for sale securities with gross gains of approximately $4.3 million and gross losses of approximately $0.8 million realized in 2020. There were $46.5 million of proceeds on sales of available for sale securities with gross gains of approximately $0.2 million realized in 2019. There were $230.4 million of proceeds on sales of available for sale securities with gross losses of approximately $7.9 million realized in 2018. There were $14.9 million, $20.3 million and $3.3 million of proceeds from calls of securities in 2020, 2019 and 2018, respectively. Pledged Securities Securities having a fair value of $402.8 million and $402.2 million at December 31, 2020 and 2019, respectively, were pledged to secure public deposits and FHLB and FRB overnight borrowings. Trading Securities The Company did not hold any trading securities during the years ended December 31, 2020 and 2019. Restricted Securities The Bank is a member of the FHLB of New York. Members are required to own a particular amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The Bank is a member of the Atlantic Central Banker’s Bank (“ACBB”) and is required to own ACBB stock. The Bank is also a member of the FRB system and required to own FRB stock. FHLB, ACBB and FRB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank owned $23.4 million and $32.9 million in FHLB, ACBB and FRB stock at December 31, 2020 and 2019, respectively. These amounts were reported as restricted securities in the consolidated balance sheets. As of December 31, 2020 and 2019, there was no issuer, other than the U.S. Government and its sponsored entities, where the Bank had invested holdings that exceeded 10% of consolidated stockholders’ equity. The following table summarizes the amortized cost and estimated fair value by contractual maturity of the available for sale and held to maturity investment securities portfolio at December 31, 2020. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2020 Amortized Estimated (In thousands) Cost Fair Value Maturity Available for sale: Within one year $ 4,131 $ 4,116 One to five years 58,608 58,861 Five to ten years 38,415 38,597 Beyond ten years 344,833 348,786 Total $ 445,987 $ 450,360 Held to maturity: Within one year $ 1,885 $ 1,902 One to five years 23,140 24,452 Five to ten years 11,535 12,144 Beyond ten years 49,140 50,827 Total $ 85,700 $ 89,325 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE. | |
FAIR VALUE | 3. FAIR VALUE The Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities FASB ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820-10 also 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 values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following tables summarize assets and liabilities measured at fair value on a recurring basis: December 31, 2020 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Financial assets: Available for sale securities: State and municipal obligations $ 42,088 $ 42,088 U.S. GSE residential mortgage-backed securities 113,235 113,235 U.S. GSE residential collateralized mortgage obligations 128,804 128,804 U.S. GSE commercial mortgage-backed securities 24,807 24,807 U.S. GSE commercial collateralized mortgage obligations 62,336 62,336 Other asset-backed securities 23,950 23,950 Corporate bonds 55,140 55,140 Total available for sale securities $ 450,360 $ 450,360 Derivatives $ 49,662 $ 49,662 Financial liabilities: Derivatives $ 56,417 $ 56,417 December 31, 2019 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Financial assets: Available for sale securities: U.S. Treasury securities $ 50,822 $ 50,822 U.S. GSE securities 4,995 4,995 State and municipal obligations 34,964 34,964 U.S. GSE residential mortgage-backed securities 84,691 84,691 U.S. GSE residential collateralized mortgage obligations 277,851 277,851 U.S. GSE commercial mortgage-backed securities 13,609 13,609 U.S. GSE commercial collateralized mortgage obligations 104,156 104,156 Other asset-backed securities 23,401 23,401 Corporate bonds 43,802 43,802 Total available for sale securities $ 638,291 $ 638,291 Derivatives $ 15,437 $ 15,437 Financial liabilities: Derivatives $ 16,645 $ 16,645 The following tables summarize assets measured at fair value on a non-recurring basis: December 31, 2020 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Loans held for sale $ 52,785 $ 42,785 $ 10,000 Individually evaluated loans $ 2,940 $ 2,940 December 31, 2019 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Loans held for sale $ 12,643 $ 12,643 Impaired loans $ 6,981 $ 6,981 Loans held for sale at December 31, 2020 had a carrying amount of $52.8 million which is net of a $2.9 million valuation allowance. Loans held for sale at December 31, 2019 had a carrying amount of $12.6 million with no valuation allowance recorded. Individually evaluated commercial and industrial loans with an allowance for credit losses at December 31, 2020 had a carrying amount of $2.9 million, which is made up of the outstanding balance of $9.6 million, net of a valuation allowance of $6.7 million. This resulted in an additional provision for credit losses of $2.6 million that is included in the amount reported on the consolidated statements of income for the year ended December 31, 2020. Impaired loans (prior to the adoption of the CECL standard) with an allocated allowance for loan losses at December 31, 2019 had a carrying amount of $7.0 million, which is made up of the outstanding balance of $11.7 million, net of a valuation allowance of $4.7 million. There was no other real estate owned at December 31, 2020 and 2019. Accordingly, there was no additional provision for credit losses included in the amount reported on the consolidated statements of income. The Company used the following methods and assumptions in estimating the fair value of its financial instruments: Securities Available for Sale and Held to Maturity: Derivatives: Loans Held for Sale: At December 31, 2020 the leveraged lending portfolio was reclassified to held for sale and sold in January 2021.The estimated fair values at December 31, 2020 were based on the observable market prices for the loans, resulting in a Level 1 classification. Individually Evaluated Loans with an ACL (Impaired Loans with an ACL prior to the adoption of the CECL Standard) and Other Real Estate Owned: Appraisals for collateral-dependent loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, the Appraisal and Credit Departments review the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Management also considers the appraisal values for commercial properties associated with current loan origination activity. Collectively, this information is reviewed to help assess current trends in commercial property values. For each collateral dependent loan, management considers information that relates to the type of property to determine if such properties may have appreciated or depreciated in value since the date of the most recent appraisal. Adjustments to fair value are made only when the analysis indicates a probable decline in collateral values. Adjustments made in the appraisal process are not deemed material to the overall consolidated financial statements given the level of collateral dependent loans measured at fair value on a non-recurring basis. The following tables summarize the estimated fair values and recorded carrying amounts of the Company’s financial instruments at December 31, 2020 and 2019: December 31, 2020 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Total (In thousands) Amount (Level 1) (Level 2) (Level 3) Fair Value Financial assets: Cash and due from banks $ 107,729 $ 107,729 $ — $ — $ 107,729 Interest-bearing deposits with banks 769,099 769,099 — — 769,099 Securities available for sale 450,360 — 450,360 — 450,360 Securities restricted 23,362 n/a n/a n/a n/a Securities held to maturity 85,700 — 89,325 — 89,325 Loans held for sale 52,785 42,785 — 10,000 52,785 Loans, net 4,553,203 — — 4,554,333 4,554,333 Derivatives 49,662 — 49,662 — 49,662 Accrued interest receivable 16,566 — 1,421 15,145 16,566 Financial liabilities: Certificates of deposit 288,445 — 290,971 — 290,971 Demand and other deposits 5,200,808 5,200,808 — — 5,200,808 FHLB advances 215,000 — 221,665 — 221,665 Repurchase agreements 1,223 — 1,223 — 1,223 Subordinated debentures 79,059 — 86,704 — 86,704 Derivatives 56,417 — 56,417 — 56,417 Accrued interest payable 881 — 881 — 881 December 31, 2019 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Total (In thousands) Amount (Level 1) (Level 2) (Level 3) Fair Value Financial assets: Cash and due from banks $ 77,693 $ 77,693 $ — $ — $ 77,693 Interest-bearing deposits with banks 39,501 39,501 — — 39,501 Securities available for sale 638,291 — 638,291 — 638,291 Securities restricted 32,879 n/a n/a n/a n/a Securities held to maturity 133,638 — 135,027 — 135,027 Loans held for sale 12,643 — — 12,643 12,643 Loans, net 3,647,499 — — 3,685,770 3,685,770 Derivatives 15,437 — 15,437 — 15,437 Accrued interest receivable 10,908 — 2,181 8,727 10,908 Financial liabilities: Certificates of deposit 307,977 — 308,660 — 308,660 Demand and other deposits 3,506,670 3,506,670 — — 3,506,670 FHLB advances 435,000 195,000 239,622 — 434,622 Repurchase agreements 999 — 999 — 999 Subordinated debentures 78,920 — 81,010 — 81,010 Derivatives 16,645 — 16,645 — 16,645 Accrued interest payable 1,467 — 1,467 — 1,467 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2020 | |
LOANS. | |
LOANS | 4. LOANS The following table sets forth the major classifications of loans: (In thousands) December 31, 2020 December 31, 2019 Commercial real estate mortgage loans: Owner occupied $ 557,076 $ 531,088 Non-owner occupied 1,081,443 1,034,599 Multi-family mortgage loans 899,730 812,174 Residential real estate mortgage loans 434,689 493,144 Commercial, industrial and agricultural loans 1,527,147 679,444 Real estate construction and land loans 82,479 97,311 Installment/consumer loans 23,019 24,836 Total loans 4,605,583 3,672,596 Net deferred loan (fees) costs (8,180) 7,689 Total loans held for investment 4,597,403 3,680,285 Allowance for credit losses (44,200) (32,786) Loans, net $ 4,553,203 $ 3,647,499 Included in commercial, industrial and agricultural loans at December 31, 2020 was $844.7 million of Paycheck Protection Program (“PPP”) loans. These loans are expected to be fully guaranteed by the SBA and have a nominal allowance for credit losses allocated to them based on the nature of the guarantee. The shift from net deferred loan costs at December 31, 2019 to net deferred loan fees at December 31, 2020 was the result of the net deferred loan fees associated with the PPP loans. Accrued interest receivable on loans totaling $15.1 million at December 31, 2020 and $8.7 million at December 31, 2019 was included in accrued interest receivable in the consolidated balance sheet and excluded from the table above. The increase in accrued interest receivable from December 31, 2019 relates primarily to accrued interest on PPP loans. Loans held for sale, which are not included in the table above, totaled $52.8 million at December 31, 2020 and $12.6 million at December 31, 2019. In December 2020, the Company made a decision to dispose of its $43.0 million leveraged lending portfolio which was previously included in commercial, industrial and agricultural loans. As of December 31, 2020, the leveraged lending portfolio was reclassified from loans held for investment to loans held for sale and written down by $234 thousand to the estimated fair value of the loans in this portfolio of $42.8 million through a valuation allowance which was charged against non-interest income in the consolidated statements of income. As of December 31, 2020 and 2019, one commercial real estate (“CRE”) mortgage loan totaling $10.0 million and $12.6 million, respectively, was classified as held for sale. The loan was reclassified from loans held for investment to loans held for sale and written down from $16.3 million to the loan’s estimated fair value of $12.6 million as of June 30, 2019, through a $3.7 million charge-off during the 2019 second quarter. During the 2020 second quarter, an additional write-down was recognized for the decrease in the estimated fair value of the loan by $2.6 million to $10.0 million through a valuation allowance which was charged against non-interest income in the consolidated statements of income. Lending Risk The principal business of the Bank is lending in CRE mortgage loans, multi-family mortgage loans, residential real estate mortgage loans, construction loans, home equity loans, commercial, industrial and agricultural loans, land loans and consumer loans. The Bank considers its primary lending area to be Nassau and Suffolk Counties located on Long Island and the New York City boroughs. A substantial portion of the Bank’s loans is secured by real estate in these areas. Accordingly, the ultimate collectability of the loan portfolio is susceptible to changes in market and economic conditions in this region. Commercial Real Estate Mortgages Loans in this classification include income producing investment properties and owner-occupied real estate used for business purposes. The underlying properties are located largely in the Bank’s primary market area. The cash flows of the income producing investment properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on credit quality. Generally, management seeks to obtain annual financial information for borrowers with loans in excess of $1.0 million in this category. In the case of owner-occupied real estate used for business purposes, a weakened economy and resultant decreased consumer and/or business spending will have an adverse effect on credit quality. Multi-Family Mortgages Loans in this classification include income producing residential investment properties of five or more families. Loans are made to established owners with a proven and demonstrable record of strong performance. Loans are secured by a first mortgage lien on the subject property with a loan to value ratio generally not exceeding 75%. Repayment is derived generally from the rental income generated from the property and may be supplemented by the owners’ personal cash flow. Credit risk arises with an increase in vacancy rates, property mismanagement and the predominance of non-recourse loans that are customary in the industry. Residential Real Estate Mortgages and Home Equity Loans Loans in these classifications are generally secured by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, can have an effect on the credit quality in this loan class. The Bank generally does not originate loans with a loan-to-value ratio greater than 80% and does not grant subprime loans. Commercial, Industrial and Agricultural Loans Loans in this classification are made to businesses and include term loans, lines of credit, senior secured loans to corporations, equipment financing and taxi medallion loans. Generally, these loans are secured by assets of the business and repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and/or business spending, will have an effect on the credit quality in this loan class. Real Estate Construction and Land Loans Loans in this classification primarily include land loans to local individuals, contractors and developers for developing the land for sale or for the purpose of making improvements thereon. Repayment is derived primarily from sale of the lots/units including any pre-sold units. Credit risk is affected by market conditions, time to sell at an adequate price and cost overruns. To a lesser extent, this class includes commercial development projects that the Company finances, which in most cases require interest only during construction, and then convert to permanent financing. Construction delays, cost overruns, market conditions and the availability of permanent financing, to the extent such permanent financing is not being provided by the Bank, all affect the credit risk in this loan class. Installment and Consumer Loans Loans in this classification may be either secured or unsecured. Repayment is dependent on the credit quality of the individual borrower and, if applicable, sale of the collateral securing the loan, such as automobiles. Therefore, the overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this loan class. Credit Quality Indicators The Company categorizes loans into risk categories of pass, watch, special mention, substandard and doubtful based on relevant information about the ability of borrowers to service their debt including repayment patterns, past loss experience, current economic conditions, and various types of concentrations of credit. Assigned risk rating grades are continuously updated as new information is obtained. Loans risk rated special mention, substandard and doubtful are reviewed on a quarterly basis. The Company uses the following definitions for risk rating grades: Pass: Watch: Special mention: Substandard: Doubtful: The following tables represent loans categorized by internally assigned risk grades as of December 31, 2020 and December 31, 2019. In the December 31, 2020 table, the years noted represent the year of origination for non-revolving loans. December 31, 2020 (In thousands) 2020 2019 2018 2017 2016 2015 and Prior Revolving Revolving-Term Total Commercial real estate owner occupied: Pass $ 92,053 $ 96,679 $ 47,224 $ 66,320 $ 25,852 $ 153,766 $ — $ — $ 481,894 Watch 727 1,373 8,038 10,737 3,425 23,919 — — 48,219 Special mention 1,843 — 3,875 10,857 823 4,600 — — 21,998 Substandard 469 553 — — 2,426 1,517 — — 4,965 Total commercial real estate owner occupied 95,092 98,605 59,137 87,914 32,526 183,802 — — 557,076 Commercial real estate non-owner occupied: Pass 181,811 249,782 108,086 180,235 54,252 214,620 — — 988,786 Watch 7,314 7,700 12,845 12,117 12,209 24,089 — — 76,274 Special mention — — — — — 290 — — 290 Substandard — — — 9,006 6,038 1,049 — — 16,093 Total commercial real estate non-owner occupied 189,125 257,482 120,931 201,358 72,499 240,048 — — 1,081,443 Multi-family: Pass 159,301 293,752 40,840 86,169 118,846 106,044 — — 804,952 Watch 15,436 2,724 — 19,331 35,976 12,825 — — 86,292 Special mention — — — 8,098 — 388 — — 8,486 Substandard — — — — — — — — — Total multi-family 174,737 296,476 40,840 113,598 154,822 119,257 — — 899,730 Residential real estate: Pass 20,033 32,564 71,903 95,712 23,589 106,518 53,217 7,012 410,548 Watch — — 406 321 541 1,740 — 1,145 4,153 Special mention — 1,103 758 — — 6,879 818 633 10,191 Substandard — 466 569 937 — 6,967 — 858 9,797 Total residential real estate 20,033 34,133 73,636 96,970 24,130 122,104 54,035 9,648 434,689 Commercial, industrial and agricultural: Pass 949,257 62,410 30,736 17,646 12,685 26,606 304,781 5,086 1,409,207 Watch 8,062 6,140 8,265 1,574 1,188 3,048 40,448 1,527 70,252 Special mention 2,914 838 572 1,507 545 1,323 18,984 2,073 28,756 Substandard — 905 1,233 3,514 470 9,660 200 2,950 18,932 Total commercial, industrial and agricultural 960,233 70,293 40,806 24,241 14,888 40,637 364,413 11,636 1,527,147 Real estate construction and land loans: Pass 37,684 20,948 8,229 11,308 — 1,701 — — 79,870 Watch — — — 1,150 — 270 — — 1,420 Special mention — — 1,078 — — — — — 1,078 Substandard — — — — — 111 — — 111 Total real estate construction and land loans 37,684 20,948 9,307 12,458 — 2,082 — — 82,479 Installment/consumer loans Pass 1,656 215 166 93 — 710 17,382 1,257 21,479 Watch — — — — — — 496 40 536 Special mention — — — — — — — 46 46 Substandard — — — — — — 50 908 958 Total installment/consumer loans 1,656 215 166 93 — 710 17,928 2,251 23,019 Total Loans $ 1,478,560 $ 778,152 $ 344,823 $ 536,632 $ 298,865 $ 708,640 $ 436,376 $ 23,535 $ 4,605,583 December 31, 2019 (In thousands) Pass Special Mention Substandard Doubtful Total Commercial real estate: Owner occupied $ 511,444 $ 18,426 $ 1,218 $ — $ 531,088 Non-owner occupied 1,022,208 — 12,391 — 1,034,599 Multi-family 811,770 404 — — 812,174 Residential real estate 475,949 12,400 4,795 — 493,144 Commercial, industrial and agricultural 643,413 15,670 20,361 — 679,444 Real estate construction and land loans 95,530 — 1,781 — 97,311 Installment/consumer loans 23,976 103 757 — 24,836 Total loans $ 3,584,290 $ 47,003 $ 41,303 $ — $ 3,672,596 Past Due and Non-accrual Loans The following tables represent the aging of past due loans as of December 31, 2020 and 2019: December 31, 2020 90+ Days Non-accrual 30-59 60-89 Past Due Including 90 Total Past Days Days And Days or More Due and (In thousands) Past Due Past Due Accruing Past Due Non-accrual Current Total Loans Commercial real estate: Owner occupied $ — $ — $ — $ 636 $ 636 $ 556,440 $ 557,076 Non-owner occupied — — — 6,771 6,771 1,074,672 1,081,443 Multi-family — — — — — 899,730 899,730 Residential real estate 3,567 949 — 2,897 7,413 427,276 434,689 Commercial, industrial and agricultural 2,711 4,072 — 1,597 8,380 1,518,767 1,527,147 Real estate construction and land loans 210 — — 111 321 82,158 82,479 Installment/consumer loans 100 4 — 150 254 22,765 23,019 Total loans $ 6,588 $ 5,025 $ — $ 12,162 $ 23,775 $ 4,581,808 $ 4,605,583 In the absence of other intervening factors, loans granted payment deferrals related to COVID-19 are not reported as past due or placed on non-accrual status provided the borrowers have met the criteria in the CARES Act or otherwise have met the criteria included in an interagency statement issued by bank regulatory agencies. During the year ended December 31, 2020, there was $93 thousand in interest earned on non-accrual loans and $406 thousand in accrued interest on non-accrual loans was reversed through interest income. December 31, 2019 90+ Days Non-accrual 30-59 60-89 Past Due Including 90 Total Past Days Days And Days or More Due and (In thousands) Past Due Past Due Accruing Past Due Non-accrual Current Total Loans Commercial real estate: Owner occupied $ 917 $ 433 $ — $ 225 $ 1,575 $ 529,513 $ 531,088 Non-owner occupied 98 — — 512 610 1,033,989 1,034,599 Multi-family — — — — — 812,174 812,174 Residential real estate 3,053 747 343 2,743 6,886 486,258 493,144 Commercial, industrial and agricultural 273 721 — 736 1,730 677,714 679,444 Real estate construction and land loans — — — 123 123 97,188 97,311 Installment/consumer loans 124 — — 30 154 24,682 24,836 Total loans $ 4,465 $ 1,901 $ 343 $ 4,369 $ 11,078 $ 3,661,518 $ 3,672,596 There was no other real estate owned at December 31, 2020 and 2019. Troubled Debt Restructurings The terms of certain loans were modified and are considered TDRs. The modification of the terms of such loans generally includes one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. The modification of these loans involved loans to borrowers who were experiencing financial difficulties. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed to determine if that borrower is currently in payment default under any of its obligations or whether there is a probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. The following table presents loans modified as troubled debt restructurings during the years indicated: Modifications During the Year Ended December 31, 2020 2019 2018 Pre- Post- Pre- Post- Pre- Post- Modification Modification Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Loans Investment Investment Loans Investment Investment Commercial real estate: Owner occupied — $ — $ — 3 $ 8,582 $ 8,582 — $ — $ — Non-owner occupied — — — — — — 1 926 926 Residential real estate — — — 1 338 338 1 644 644 Commercial, industrial and agricultural 3 1,138 1,138 15 12,828 12,828 10 7,649 7,649 Installment/consumer loans — — — — — — — — — Total 3 $ 1,138 $ 1,138 19 $ 21,748 $ 21,748 12 $ 9,219 $ 9,219 There were $1.7 million, $0.1 million and $0.4 million of charge-offs related to TDRs during the years ended December 31, 2020, 2019 and 2018, respectively. During the year ended December 31, 2020 there was one loan modified as a TDR for which there was a payment default within twelve months following the modification. There were two loans modified as TDRs during 2019 and one loan modified as a TDR during 2018 for which there was a payment default within twelve months following the modification. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. At December 31, 2020 and 2019, the Company had $346 thousand and $405 thousand, respectively, of non-accrual TDRs and $22.2 million and $26.3 million, respectively, of performing TDRs. The decrease in performing TDRs is primarily due to one TDR relationship which became non-accrual during the 2020 second quarter and totaled $2.7 million at June 30, 2020. In the 2020 third quarter, a settlement agreement was entered into resulting in $1.4 million in payments and a charge-off totaling $1.3 million. At December 31, 2020, three non-accrual TDRs totaling $130 thousand were unsecured and one non-accrual TDR totaling $216 thousand was secured and at December 31, 2019, the non-accrual TDRs were unsecured. The Bank has no commitment to lend additional funds to these debtors. The terms of certain other loans were modified during the year ended December 31, 2020 that did not meet the definition of a TDR. These loans have a total recorded investment at December 31, 2020 of $191.1 million. These loans were to borrowers who were not experiencing financial difficulties. In connection with the COVID-19 relief provided by the CARES Act and interagency guidance issued in March 2020, the Company is hese deferrals are not considered TDRs based on the CARES Act and/or the interagency guidance. Collateral Dependent Loans At December 31, 2020, the Company had collateral dependent loans which were individually evaluated to determine expected credit losses. Collateral dependent commercial, industrial and agricultural loans totaled $9.6 million and had a related allowance for credit losses totaling $6.7 million. The loans were secured by taxi medallions. Collateral dependent commercial real estate loans totaled $10.8 million and had no related allowance for credit losses. Impaired Loans (prior to the adoption of the CECL Standard) At December 31, 2019 the Company had individually impaired loans as defined by FASB ASC 310, “Receivables” of $27.0 million. For a loan to be considered impaired, management determines after review whether it is probable that the Bank will not be able to collect all amounts due according to the contractual terms of the loan agreement. Management applies its normal loan review procedures in making these judgments. Impaired loans include individually classified non- accrual loans and TDRs. At December 31, 2019 impaired loans included $1.1 million in other impaired performing loans related to borrowers with other performing TDRs. For impaired loans, the Bank evaluates the impairment of the loan in accordance with FASB ASC 310-10-35-22. Impairment is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For loans that are collateral dependent, the fair value of the collateral is used to determine the fair value of the loan. The fair value of the collateral is determined based on recent appraised values. The fair value of the collateral or present value of expected cash flows is compared to the carrying value to determine if any write-down or specific loan loss allowance allocation is required. The following tables set forth the recorded investment, unpaid principal balance and related allowance for individually impaired loans at December 31, 2019 and 2018. The tables also set forth the average recorded investment of individually impaired loans and interest income recognized while the loans were impaired during the years ended December 31, 2019 and 2018: December 31, 2019 Year Ended December 31, 2019 Unpaid Related Average Interest Recorded Principal Allocated Recorded Income (In thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial real estate: Owner occupied $ 3,379 $ 3,401 $ — $ 1,286 $ 41 Non-owner occupied 2,296 2,296 — 2,149 99 Residential real estate: Residential mortgages — — — — — Home equity 294 300 — 74 — Commercial, industrial and agricultural: Secured 494 494 — 287 18 Unsecured 8,863 8,863 — 6,601 411 Total with no related allowance recorded 15,326 15,354 — 10,397 569 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial, industrial and agricultural: Secured 9,612 9,612 3,435 6,189 223 Unsecured 2,045 2,051 1,241 1,838 86 Total with an allowance recorded 11,657 11,663 4,676 8,027 309 Total: Commercial real estate: Owner occupied 3,379 3,401 — 1,286 41 Non-owner occupied 2,296 2,296 — 2,149 99 Residential real estate: Residential mortgages — — — — — Home equity 294 300 — 74 — Commercial, industrial and agricultural: Secured 10,106 10,106 3,435 6,476 241 Unsecured 10,908 10,914 1,241 8,439 497 Total $ 26,983 $ 27,017 $ 4,676 $ 18,424 $ 878 December 31, 2018 Year Ended December 31, 2018 Unpaid Related Average Interest Recorded Principal Allocated Recorded Income (In thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial real estate: Owner occupied $ 268 $ 278 $ — $ 177 $ — Non-owner occupied 2,816 2,816 — 1,583 88 Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial, industrial and agricultural: Secured 8,234 8,234 — 5,644 196 Unsecured 5,316 5,316 — 5,127 284 Total with no related allowance recorded 16,634 16,644 — 12,531 568 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial, industrial and agricultural: Secured 2,721 2,721 189 2,757 91 Unsecured — — — — — Total with an allowance recorded 2,721 2,721 189 2,757 91 Total: Commercial real estate: Owner occupied 268 278 — 177 — Non-owner occupied 2,816 2,816 — 1,583 88 Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial, industrial and agricultural: Secured 10,955 10,955 189 8,401 287 Unsecured 5,316 5,316 — 5,127 284 Total $ 19,355 $ 19,365 $ 189 $ 15,288 $ 659 The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs. Related Party Loans Certain directors, executive officers, and their related parties, including their immediate families and companies in which they are principal owners, were loan customers of the Bank during 2020 and 2019. The following table sets forth selected information about related party loans for the year ended December 31, 2020: Year Ended December 31, (In thousands) 2020 Balance at beginning of period $ 12,349 New loans 724 Repayments (1,575) Balance at end of period $ 11,498 The following tables represent the changes in the allowance for credit losses for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for credit losses: Beginning balance, prior to adoption of CECL $ 12,150 $ 4,829 $ 1,882 $ 12,583 $ 1,066 $ 276 $ 32,786 Impact of adopting CECL (7,712) (3,589) 2,182 8,699 1,274 771 1,625 Charge-offs (1) — — (2,004) — (7) (2,012) Recoveries — — 3 298 — — 301 Provision (credit) for credit losses 4,097 496 (1,005) 7,787 (165) 290 11,500 Ending balance $ 8,534 $ 1,736 $ 3,062 $ 27,363 $ 2,175 $ 1,330 $ 44,200 Year Ended December 31, 2019 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for credit losses: Beginning balance $ 10,792 $ 2,566 $ 3,935 $ 12,722 $ 1,297 $ 106 $ 31,418 Charge-offs (3,670) — — (799) — (13) (4,482) Recoveries 1 — 112 25 — 12 150 Provision (credit) for credit losses 5,027 2,263 (2,165) 635 (231) 171 5,700 Ending balance $ 12,150 $ 4,829 $ 1,882 $ 12,583 $ 1,066 $ 276 $ 32,786 Year Ended December 31, 2018 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for credit losses: Beginning balance $ 11,048 $ 4,521 $ 2,438 $ 12,838 $ 740 $ 122 $ 31,707 Charge-offs — — (24) (2,806) — (11) (2,841) Recoveries — — 3 747 — 2 752 (Credit) provision for credit losses (256) (1,955) 1,518 1,943 557 (7) 1,800 Ending balance $ 10,792 $ 2,566 $ 3,935 $ 12,722 $ 1,297 $ 106 $ 31,418 The increase in allowance for credit losses in the first half of 2020 was primarily related to the reasonable and supportable forecast component of the newly adopted CECL Standard which includes the impact of the COVID-19 pandemic. The COVID-19 pandemic continues to have a profound impact on economic activity. While there have been some signs of economic improvement during the latter half of 2020, significant uncertainty remains. Management still believes that the economic recovery will continue during 2021 and 2022, however, based on the aforementioned uncertainty and negative impact the virus has had to date, the decision was made to maintain the current risk level for the reasonable and supportable forecast component of the allowance for credit losses as of December 31, 2020. The following table represents the balance in the allowance for loan losses and the recorded investment in loans, as defined under FASB ASC 310-10 (prior to adoption of the CECL Standard), and based on impairment method as of December 31, 2019: December 31, 2019 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ 4,676 $ — $ — $ 4,676 Collectively evaluated for impairment 12,150 4,829 1,882 7,907 1,066 276 28,110 Loans acquired with deteriorated credit quality — — — — — — — Total allowance for loan losses $ 12,150 $ 4,829 $ 1,882 $ 12,583 $ 1,066 $ 276 $ 32,786 Loans: Individually evaluated for impairment $ 5,675 $ — $ 294 $ 21,014 $ — $ — $ 26,983 Collectively evaluated for impairment 1,560,012 812,174 492,507 658,430 97,311 24,836 3,645,270 Loans acquired with deteriorated credit quality — — 343 — — — 343 Total loans $ 1,565,687 $ 812,174 $ 493,144 $ 679,444 $ 97,311 $ 24,836 $ 3,672,596 The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. |
PREMISES AND EQUIPMENT, NET
PREMISES AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
PREMISES AND EQUIPMENT, NET | |
PREMISES AND EQUIPMENT, NET | 5. PREMISES AND EQUIPMENT, NET The following table details the components of premises and equipment: December 31, (In thousands) 2020 2019 Land $ 7,896 $ 7,896 Building and improvements 17,391 17,271 Furniture, fixtures and equipment 28,682 25,288 Leasehold improvements 13,355 12,356 67,324 62,811 Accumulated depreciation and amortization (32,452) (28,749) Total premises and equipment, net $ 34,872 $ 34,062 Depreciation and amortization amounted to $4.3 million, $4.3 million and $3.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
LEASES | 6. LEASES The Company has operating leases for certain branch locations, corporate offices and equipment. Certain leases contain rent escalation clauses, which are reflected in the Company’s operating lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants. The components of lease cost were as follows: Year Ended December 31, (In thousands) 2020 2019 Lease cost Operating lease cost $ 7,643 $ 7,038 Sublease income (37) (95) Total lease cost $ 7,606 $ 6,943 The Company reports lease cost in occupancy and equipment expense in the consolidated statements of income. The Company subleases a portion of its leased properties to commercial sublessees. Sublease income is included in other operating income in the consolidated statements of income. Supplemental cash flow and balance sheet information related to operating leases were as follows: Year Ended December 31, (Dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 7,363 $ 7,019 Operating right-of-use assets obtained in exchange for lease liabilities $ 7,843 $ 48,101 December 31, 2020 December 31, 2019 Weighted-average remaining lease term-operating leases 7.6 years 7.8 years Weighted-average discount rate-operating leases (1) 2.91 % 3.20 % (1) The Company computes the present value of operating lease liabilities using its incremental borrowing rate as the discount rate. Certain leases contain renewal options which are not reflected in the tables below. The exercise of renewal options, which extend the lease term from five The maturities of operating lease liabilities were as follows: (In thousands) December 31, 2020 2021 $ 7,387 2022 7,260 2023 6,548 2024 6,297 2025 6,177 Thereafter 18,649 Total operating lease payments $ 52,318 Less: Interest (5,605) Present value of operating lease liabilities $ 46,713 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 7. GOODWILL AND OTHER INTANGIBLE ASSETS FASB ASC 350, Intangibles — Goodwill and Other, requires a company to perform an impairment test on goodwill annually, or more frequently if events or changes in circumstance indicate that the asset might be impaired, by comparing the fair value of such goodwill to its recorded or carrying amount. If the carrying amount of goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess. The FASB issued ASU No. 2011-08, “Testing Goodwill for Impairment,” which permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. Goodwill At December 31, 2020 and 2019, the carrying amount of the Company’s goodwill was $106.0 million. The Company tested goodwill for impairment during the fourth quarter of 2020. The Company has one reporting unit, Dime Community Bancshares, Inc., and evaluated goodwill at that reporting unit level. The Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value and no further testing was required. The results of this assessment indicated that goodwill was not impaired. Other Intangible Assets The Company’s other intangible assets consist of core deposit intangibles, a trademark, and servicing assets. At December 31, 2020 and 2019, the carrying amount of the Company’s servicing assets was $1.7 million and $1.3 million, respectively. Acquired Intangible Assets The following table reflects acquired intangible assets: December 31, 2020 2019 Gross Gross Carrying Accumulated Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Intangible assets subject to amortization: Core deposit intangibles $ 7,211 $ 5,769 $ 7,211 $ 5,113 Intangible assets not subject to amortization: Trademark 259 — 259 — Total intangible assets $ 7,470 $ 5,769 $ 7,470 $ 5,113 Aggregate amortization expense for intangible assets with finite lives for the years ended December 31, 2020, 2019, and 2018 was $0.7 million, $0.8 million, and $0.9 million, respectively. The Company acquired a trademark related to the Bank’s name change from “Bridgehampton National Bank” to “BNB Bank” during the year ended December 31, 2017. At December 31, 2020 and 2019, the carrying amount of the Company’s trademark was $259 thousand. The following table reflects estimated amortization expense for each of the next five years: (In thousands) Total 2021 $ 530 2022 413 2023 281 2024 164 2025 54 Total $ 1,442 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
DEPOSITS | |
DEPOSITS | 8. DEPOSITS Time Deposits The following table presents the remaining maturities of the Bank’s time deposits at December 31, 2020: (In thousands) Total 2021 $ 238,117 2022 26,702 2023 14,258 2024 4,897 2025 4,265 Thereafter 206 Total $ 288,445 The deposits that met or exceeded the FDIC insurance limit of $250,000 at December 31, 2020 and 2019 were $121.8 million and $129.6 million, respectively. Deposits from principal officers, directors and their affiliates at December 31, 2020 and 2019 were approximately $25.0 million and $16.7 million, respectively. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended |
Dec. 31, 2020 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE. | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 9. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase totaled $1.2 million at December 31, 2020 and $1.0 million at December 31, 2019. The repurchase agreements were collateralized by investment securities, of which 34% were U.S. GSE residential collateralized mortgage obligations and 66% were U.S. GSE residential mortgage-backed securities with a carrying amount of $2.2 million at December 31, 2020 and 17% were U.S. GSE residential collateralized mortgage obligations and 83% were U.S. GSE residential mortgage-backed securities with a carrying amount of $2.1 million at December 31, 2019. Securities sold under agreements to repurchase are financing arrangements with $1.2 million maturing during the first quarter of 2021. At maturity, the securities underlying the agreements are returned to the Company. The primary risk associated with these secured borrowings is the requirement to pledge a market value-based balance of collateral in excess of the borrowed amount. The excess collateral pledged represents an unsecured exposure to the lending counterparty. As the market value of the collateral changes, both through changes in discount rates and spreads as well as related cash flows, additional collateral may need to be pledged. In accordance with the Company’s policies, eligible counterparties are defined and monitored to minimize exposure. The following table summarizes information concerning securities sold under agreements to repurchase: Year Ended December 31, (Dollars in thousands) 2020 2019 Average daily balance during the year $ 1,529 $ 849 Average interest rate during the year 0.05 % 0.05 % Maximum month-end balance during the year $ 1,943 $ 1,037 Weighted average interest rate at year-end 0.05 % 0.05 % |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 12 Months Ended |
Dec. 31, 2020 | |
FEDERAL HOME LOAN BANK ADVANCES. | |
FEDERAL HOME LOAN BANK ADVANCES | 10. FEDERAL HOME LOAN BANK ADVANCES The following table summarizes information concerning FHLB advances: Year Ended December 31, (Dollars in thousands) 2020 2019 Average daily balance during the year $ 284,719 $ 245,283 Average interest rate during the year 1.40 % 1.86 % Maximum month-end balance during the year $ 340,000 $ 435,000 Weighted average interest rate at year-end 0.35 % 1.82 % The following tables present the contractual maturities and weighted average interest rates of FHLB advances for each of the next five years. There are no FHLB advances with contractual maturities after 2021. December 31, 2020 (Dollars in thousands) Weighted Contractual Maturity Amount Average Rate Overnight $ — — % 2021 215,000 0.35 Total FHLB advances $ 215,000 0.35 % December 31, 2019 (Dollars in thousands) Weighted Contractual Maturity Amount Average Overnight $ 195,000 1.81 % 2020 240,000 1.84 Total FHLB advances $ 435,000 1.82 % Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $1.7 billion and $1.4 billion of residential and commercial mortgage loans under a blanket lien arrangement at December 31, 2020 and 2019, respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow up to a total of $1.9 billion at December 31, 2020. |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 12 Months Ended |
Dec. 31, 2020 | |
SUBORDINATED DEBENTURES. | |
SUBORDINATED DEBENTURES | 11. SUBORDINATED DEBENTURES In September 2015, the Company issued $80.0 million in aggregate principal amount of fixed-to-floating rate subordinated debentures. $40.0 million of the subordinated debentures are callable at par after five years, have a stated maturity of September 30, 2025 and bear interest at a fixed annual rate of 5.25% per year, from and including September 21, 2015 until but excluding September 30, 2020. From and including September 30, 2020 to the maturity date or early redemption date, the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR plus 360 basis points. The remaining $40.0 million of the subordinated debentures are callable at par after ten years, have a stated maturity of September 30, 2030 and bear interest at a fixed annual rate of 5.75% per year, from and including September 21, 2015 until but excluding September 30, 2025. From and including September 30, 2025 to the maturity date or early redemption date, the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR plus 345 basis points. The subordinated debentures totaled $79.1 million at December 31, 2020 and $78.9 million at December 31, 2019. The subordinated debentures are included in tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVES. | |
DERIVATIVES | 12. DERIVATIVES During the first quarter of 2019 the Company adopted ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities The Alternative Reference Rates Committee ("ARRC") has proposed that the Secured Overnight Funding Rate ("SOFR") replace USD-LIBOR. ARRC has proposed that the transition to SOFR from USD-LIBOR will take place by the end of 2021. The Company has material contracts that are indexed to USD-LIBOR. Industry organizations are currently working on the transition plan. The Company is currently monitoring this activity and evaluating the risks involved. Cash Flow Hedges of Interest Rate Risk As part of its asset liability management, the Company utilizes interest rate swap agreements to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent the amount exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest rate swaps with notional amounts totaling $280.0 million and $290.0 million as of December 31, 2020 and 2019, respectively, were designated as cash flow hedges of certain FHLB advances. The swaps were determined to be fully effective during the periods presented. The aggregate fair value of the swaps is recorded in other assets or other liabilities with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps. The following table summarizes information about the interest rate swaps designated as cash flow hedges at December 31, 2020 and 2019: December 31, (Dollars in thousands) 2020 2019 Notional amounts $ 280,000 $ 290,000 Weighted average pay rates 1.33 % 1.84 % Weighted average receive rates 0.23 % 1.94 % Weighted average maturity 3.14 years 2.91 years Four interest rate swaps, with notional amounts totaling $125.0 million, were terminated resulting in $3.4 million in loss on termination of swaps, which is reported as a component of non-interest income, for the year ended December 31, 2020. Interest expense recorded on these swap transactions totaled $1.7 million during the year ended December 31, 2020. Interest income recorded on these swap transactions totaled $1.6 million and $1.1 million during the years ended December 31, 2019 and 2018, respectively. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income/expense as interest payments are made/received on the Company’s variable-rate assets/liabilities. During the year ended December 31, 2020, the Company had $1.7 million of reclassifications as a reduction to interest expense. During the year ended December 31, 2020, the Company accelerated the reclassification of $3.4 million loss from other comprehensive income to earnings as a result of hedged forecasted transactions becoming probable not to occur. During the next twelve months, the Company estimates that $2.1 million will be reclassified as an increase in interest expense. The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the consolidated statements of income relating to the cash flow derivative instruments for the years ended December 31, 2020, 2019 and 2018: Amount of gain (loss) Amount of gain reclassified from reclassified from Amount of (loss) gain Amount of (loss) gain Accumulated OCI Accumulated OCI (In thousands) recognized in OCI recognized in OCI into income into income Interest rate contracts included component excluded component included component excluded component Year ended December 31, 2020 $ (10,455) $ — $ (5,016) $ — Year ended December 31, 2019 (3,601) — 1,588 — Year ended December 31, 2018 2,493 — 1,068 — The following table reflects the cash flow hedges included in the consolidated balance sheets at the dates indicated: December 31, 2020 2019 Fair Fair Fair Fair (In thousands) Notional Value Value Notional Value Value Included in other assets/(liabilities): Amount Asset Liability Amount Asset Liability Interest rate swaps related to FHLB advances $ 215,000 $ — $ (6,651) $ 240,000 $ 1,233 $ (978) Forward starting interest rate swaps related to FHLB advances $ 65,000 $ 11 $ (222) $ 50,000 $ — $ (1,427) Non-Designated Hedges Derivatives not designated as hedges may be used to manage the Company’s exposure to interest rate movements or to provide service to customers but do not meet the requirements for hedge accounting under U.S. GAAP. The Company executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that the Company executes with a third party in order to minimize the net risk exposure resulting from such transactions. These interest-rate swap agreements do not qualify for hedge accounting treatment, and therefore changes in fair value are reported in current period earnings. The Company’s existing credit derivatives result from participations in interest rate swaps provided by external lenders as part of loan participation arrangements, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain lenders which participate in loans. Interest rate swaps with notional amounts totaled $1.1 billion at December 31, 2020. Of the $1.1 billion notional amounts, $548.5 million were from loan customers and $548.5 million were from bank counterparties. Interest rate swaps with notional amounts totaled $823.9 million at December 31, 2019. Of the $823.9 million notional amounts, $411.9 million were from loan customers and $411.9 million were from bank counterparties. The following table presents summary information about the interest rate swaps at December 31, 2020 and 2019: December 31, (Dollars in thousands) 2020 2019 Notional amounts $ 1,097,100 $ 823,894 Weighted average pay rates 2.94 % 3.75 % Weighted average receive rates 2.94 % 3.75 % Weighted average maturity 10.02 years 10.77 years Fair value of combined interest rate swaps $ — $ — Loan swap fees recorded on these swap transactions, which is reported as a component of non-interest income, totaled $3.7 million, $7.5 million, and $716 thousand for the years ended December 31, 2020, 2019, and 2018, respectively. Credit-Risk-Related Contingent Features As of December 31, 2020, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $57.1 million, while there were no derivatives in a net asset position. The Company has minimum collateral posting thresholds with certain of its derivative counterparties. If the termination value of derivatives is a net liability position, the Company is required to post collateral against its obligations under the agreements. However, if the termination value of derivatives is a net asset position, the counterparty is required to post collateral to the Company. At December 31, 2020, the Company posted collateral of $57.9 million to its counterparties under the agreements in a net liability position and received no collateral from its counterparties under the agreements in a net asset position. If the Company had breached any of these provisions at December 31, 2020, it could have been required to settle its obligations under the agreements at the termination value. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 13. INCOME TAXES The following table details the components of income tax expense: Year Ended December 31, (In thousands) 2020 2019 2018 Current: Federal $ 16,262 $ 12,665 $ 5,270 State 1,457 639 1,023 Total current 17,719 13,304 6,293 Deferred: Federal (3,782) (419) 3,299 State (252) 1,175 (451) Total deferred (4,034) 756 2,848 Total income tax expense $ 13,685 $ 14,060 $ 9,141 The following table is a reconciliation of the expected federal income tax expense at the statutory tax rate to the actual provision: Year Ended December 31, 2020 2019 2018 Percentage Percentage Percentage of Pre-tax of Pre-tax of Pre-tax (Dollars in thousands) Amount Earnings Amount Earnings Amount Earnings Federal income tax expense computed by applying the statutory rate to income before income taxes $ 11,703 21 % $ 13,808 21 % $ 10,157 21 % Tax-exempt income (851) (1) (920) (1) (1,002) (2) State taxes, net of federal income tax benefit 1,214 2 1,425 2 1,999 4 Other 1,619 3 (253) (1) (2,013) (4) Income tax expense $ 13,685 25 % $ 14,060 21 % $ 9,141 19 % The following table summarizes the composition of deferred tax assets and liabilities: December 31, (In thousands) 2020 2019 Deferred tax assets: Allowance for credit losses and off-balance sheet credit exposure $ 13,983 $ 10,305 Net unrealized losses on securities — 343 Compensation and related benefit obligations 1,674 2,368 Net deferred loan costs and fees 2,588 — Purchase accounting fair value adjustments 3,574 4,735 Net change in pension and other post-retirement benefits plans 3,608 2,809 Net operating loss carryforward 786 3,229 Net loss on cash flow hedges 1,905 304 Operating lease liabilities 13,684 13,444 Other 1,234 200 Total deferred tax assets 43,036 37,737 Deferred tax liabilities: Pension and SERP expense (5,366) (4,904) Net unrealized gains on securities (1,285) — Depreciation (546) (956) REIT undistributed net income (3,178) (2,403) Net deferred loan costs and fees — (2,413) State and local taxes (1,345) (1,227) Operating lease right-of-use assets (13,172) (12,934) Other (970) (835) Total deferred tax liabilities (25,862) (25,672) Net deferred tax asset $ 17,174 $ 12,065 The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the State and City of New York and the State of New Jersey. The Company is no longer subject to examination by taxing authorities for years before 2015. There are no unrecorded tax benefits, and the Company does not expect the total amount of unrecognized income tax benefits to significantly increase in the next twelve months. In connection with the acquisition of FNBNY, the Company acquired a federal net operating loss (“NOL”) carryforward subject to Internal Revenue Code Section 382. The Company recorded a deferred tax asset that it expects to realize within the carryforward period. At December 31, 2020, the remaining federal NOL carryforward was $2.9 million. At December 31, 2020, the Company had New York State NOL carryforward of $2.1 million, and recorded a deferred tax asset that it expects to recover within the carryforward period. At December 31, 2020, the Company had New York City NOL carryforward of zero. The New York State and New York City NOLs at December 31, 2020 included NOLs acquired in connection with the CNB and FNBNY acquisitions. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
PENSION AND OTHER POSTRETIREMENT PLANS. | |
PENSION AND OTHER POSTRETIREMENT PLANS | 14. PENSION AND OTHER POSTRETIREMENT PLANS Pension Plan and Supplemental Executive Retirement Plan The Bank maintains a noncontributory pension plan (the “Pension Plan”) covering all eligible employees. The Bank uses a December 31 measurement date for this plan in accordance with FASB ASC 715-30 “Compensation – Retirement Benefits – Defined Benefit Plans – Pension.” During 2012, the Company amended the Pension Plan by revising the formula for determining benefits effective January 1, 2013, except for certain grandfathered employees. Additionally, new employees hired on or after October 1, 2012 are not eligible for the Pension Plan. During 2001, the Bank adopted the Bridgehampton National Bank Supplemental Executive Retirement Plan (“SERP”). As recommended by the Compensation Committee of the Board of Directors and approved by the full Board of Directors, the SERP provides benefits to certain employees, whose benefits under the Pension Plan are limited by the applicable provisions of the Internal Revenue Code. The benefit under the SERP is equal to the additional amount the employee would be entitled to under the Pension Plan and the 401(k) Plan in the absence of such Internal Revenue Code limitations. The assets of the SERP are held in a rabbi trust to maintain the tax-deferred status of the plan and are subject to the general, unsecured creditors of the Company. As a result, the assets of the rabbi trust are reflected on the Company’s consolidated balance sheets. The following table provides information about changes in obligations and plan assets of the defined benefit Pension Plan and the defined benefit plan component of the SERP: Pension Benefits SERP Benefits Year Ended December 31, Year Ended December 31, (In thousands) 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 28,757 $ 23,611 $ 5,323 $ 3,811 Service cost 940 952 371 261 Interest cost 794 908 149 147 Benefits paid and expected expenses (609) (475) (112) (112) Assumption changes and other 3,865 3,761 238 1,216 Benefit obligation at end of year $ 33,747 $ 28,757 $ 5,969 $ 5,323 Change in plan assets: Fair value of plan assets at beginning of year $ 39,745 $ 33,874 $ — $ — Actual return on plan assets 3,764 6,346 — — Employer contribution 1,160 — 112 112 Benefits paid and actual expenses (609) (475) (112) (112) Fair value of plan assets at end of year $ 44,060 $ 39,745 $ — $ — Funded status at end of year $ 10,313 $ 10,988 $ (5,969) $ (5,323) The following table presents amounts recognized in accumulated other comprehensive income at December 31: Pension Benefits SERP Benefits December 31, December 31, (In thousands) 2020 2019 2020 2019 Net actuarial loss $ 10,572 $ 7,997 $ 2,083 $ 2,071 Prior service cost (408) (484) — — Net amount recognized $ 10,164 $ 7,513 $ 2,083 $ 2,071 As of December 31, 2020, the accumulated benefit obligation was $32.3 million for the Pension Plan and $6.0 million for the SERP. As of December 31, 2019, the accumulated benefit obligation was $27.4 million for the Pension Plan and $3.6 million for the SERP. The following table summarizes the components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: Pension Benefits SERP Benefits Year Ended December 31, Year Ended December 31, (In thousands) 2020 2019 2018 2020 2019 2018 Components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: Service cost $ 940 $ 952 $ 1,106 $ 371 $ 261 $ 290 Interest cost 794 908 794 149 147 127 Expected return on plan assets (2,905) (2,445) (2,547) — — — Amortization of net loss 431 494 335 227 70 121 Amortization of prior service credit (77) (77) (77) — — — Amortization of transition obligation — — — — — 5 Net periodic benefit (credit) cost $ (817) $ (168) $ (389) $ 747 $ 478 $ 543 Net loss (gain) $ 3,006 $ (140) $ 1,980 $ 239 $ 1,216 $ (413) Amortization of net loss (431) (494) (335) (227) (70) (121) Amortization of prior service credit 77 77 77 — — — Amortization of transition obligation — — — — — (5) Total recognized in other comprehensive income $ 2,652 $ (557) $ 1,722 $ 12 $ 1,146 $ (539) The Company's service cost component is reported in the Company's income statement in salaries and employee benefits, which is the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. All other components of net periodic benefit (credit) cost are reported in the other operating expenses income statement line. The estimated net loss and prior service credit for the defined benefit Pension Plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $650 thousand and $77 thousand, respectively. The estimated net loss for the SERP that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $257 thousand. Expected Long-Term Rate of Return The Company’s expected long-term rate of return on Pension Plan assets is a long-term rate based on anticipated Pension Plan asset returns over an extended period of time, taking into account market conditions and broad asset mix considerations. The expected rate of return is a long-term assumption and generally does not change annually. Pension Benefits SERP Benefits December 31, December 31, 2020 2019 2018 2020 2019 2018 Weighted average assumptions used to determine benefit obligations: Discount rate 2.33 % 3.10 % 4.14 % 2.28 % 3.08 % 4.13 % Rate of compensation increase 3.00 3.00 3.00 — 5.00 5.00 Weighted average assumptions used to determine net periodic benefit cost: Discount rate 3.10 % 4.14 % 3.52 % 3.08 % 4.13 % 3.50 % Rate of compensation increase 3.00 3.00 3.00 — 5.00 5.00 Expected long-term rate of return 7.25 7.25 7.25 — — — Pension Plan Assets The Pension Plan seeks to provide retirement benefits to the employees of the Bank who are entitled to receive benefits under the Pension Plan. The Pension Plan assets are overseen by a committee comprised of management, who meet semi-annually, and sets the investment policy guidelines. The Pension Plan’s overall investment strategy is to achieve a mix of approximately 97% of investments for long‐term growth and 3% for near‐term benefit payments with a wide diversification of asset types, fund strategies, and fund managers. Cash equivalents consist primarily of short-term investment funds. Equity securities primarily include investments in common stock, mutual funds, depository receipts and exchange traded funds. Fixed income securities include corporate bonds, government issues, mortgage-backed securities, high yield securities and mutual funds. The weighted average expected long-term rate of return is estimated based on current trends in Pension Plan assets, as well as projected future rates of return on those assets and reasonable actuarial assumptions based on the guidance provided by Actuarial Standard of Practice No. 27 for the real and nominal rate of investment return for a specific mix of asset classes. The long-term rate of return considers historical returns for the S&P 500 index and corporate bonds representing cumulative returns of approximately 9.5% and 5.0%, respectively. These returns were considered along with the target allocations of asset categories. The following table indicates the target allocations for Plan assets: Weighted-Average- Target Percentage of Plan Assets Expected Long- Allocation At December 31, term Rate of Asset Category 2021 2020 2019 Return Cash equivalents 0 - 5 % 5.6 % 3.6 % — % Equity securities 45 - 65 56.8 57.9 9.5 Fixed income securities 30 - 50 37.6 38.5 5.0 Total 100.0 100.0 Except for pooled vehicles and mutual funds, which are governed by the prospectus, and unless expressly authorized by management, the Pension Plan and its investment managers are prohibited from purchasing the following investments: letter stock, private placements, or direct payments; securities not readily marketable; Bridge Bancorp, Inc. stock; pledging or hypothecating securities, except for loans of securities that are fully collateralized; purchasing or selling derivative securities for speculation or leverage; and investments by the investment managers in their own securities, their affiliates or subsidiaries (excluding money market funds). Fair value is defined under FASB ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. These levels are described in Note 3 “Fair Value.” In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments valued using the Net Asset Value (“NAV”) are classified as level 2 if the Pension Plan can redeem its investment with the investee at the NAV at the measurement date. If the Pension Plan can never redeem the investment with the investee at the NAV, it is considered as level 3. If the Pension Plan can redeem the investment at the NAV at a future date, the Pension Plan’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset. In accordance with FASB ASC 715-20, the following table represents the Pension Plan’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of December 31, 2020 and 2019: December 31, 2020 Fair Value Measurements Using: Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (Dollars in thousands) Value (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 2,452 $ — $ 2,452 $ — Equities: U.S. large cap 15,449 15,449 — — U.S. mid cap/small cap 3,471 3,471 — — International 6,029 6,029 — — Equities blend 74 74 — — Total equities 25,023 25,023 — — Fixed income securities: Corporate 1,853 1,853 — — Government 2,342 — 2,342 — Mortgage-backed 2,325 — 2,325 — High yield bonds and bond funds 10,065 — 10,065 — Total fixed income securities 16,585 1,853 14,732 — Total plan assets $ 44,060 $ 26,876 $ 17,184 $ — December 31, 2019 Fair Value Measurements Using: Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (Dollars in thousands) Value (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 1,444 $ — $ 1,444 $ — Equities: U.S. large cap 12,097 12,097 — — U.S. mid cap/small cap 4,195 4,195 — — International 6,320 6,320 — — Equities blend 414 414 — — Total equities 23,026 23,026 — — Fixed income securities: Corporate 2,024 2,024 — — Government 2,926 — 2,926 — Mortgage-backed 1,033 — 1,033 — High yield bonds and bond funds 9,292 — 9,292 — Total fixed income securities 15,275 2,024 13,251 — Total plan assets $ 39,745 $ 25,050 $ 14,695 $ — The Company has no minimum required pension contribution due to the overfunded status of the plan. Estimated Future Payments The following table summarizes benefits expected to be paid under the Pension Plan and the SERP as of December 31, 2020, which reflect expected future service: Pension and SERP Year (in thousands) 2021 $ 1,093 2022 1,180 2023 1,315 2024 1,318 2025 1,395 2026-2030 10,228 401(k) Plan The Company provides a 401(k) plan, which covers substantially all current employees. Newly hired employees are automatically enrolled in the plan on the 60 th |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2020 | |
STOCK-BASED COMPENSATION PLANS. | |
STOCK-BASED COMPENSATION PLANS | 15. STOCK-BASED COMPENSATION PLANS In May 2019, the Company’s shareholders approved the Bridge Bancorp, Inc. 2019 Equity Incentive Plan (the “2019 Equity Incentive Plan”), which provides for the grant of stock-based and other incentive awards to officers, employees and directors of the Company. The 2019 Equity Incentive Plan superseded the Bridge Bancorp, Inc. 2012 Stock-Based Incentive Plan (the “2012 Equity Incentive Plan”). The 2012 Equity Incentive Plan superseded the 2006 Stock-Based Incentive Plan. The maximum number of shares of stock, in the aggregate, that may be granted under the 2019 Equity Incentive Plan as stock options, restricted stock, or restricted stock units is 370,000 plus the number of shares of stock which have been reserved but not issued under the 2012 Equity Incentive Plan, and any awards that are forfeited under the 2012 Equity Incentive Plan after the effective date of the 2019 Equity Incentive Plan. No further grants will be made under the 2012 Equity Incentive Plan. Currently outstanding grants under the 2012 Equity Incentive Plan will not be affected. The number of shares of the Company’s common stock available for stock-based awards under the 2019 Equity Incentive Plan is 370,000 plus 162,738 shares that were remaining under the 2012 Equity Incentive Plan. At December 31, 2020, 436,953 shares remain available for issuance, including shares that may be granted in the form of stock options, RSAs, or RSUs. The Compensation Committee of the Board of Directors determines awards under the 2019 Equity Incentive Plan. The Company accounts for the 2019 Equity Incentive Plan under FASB ASC 718. Stock Options Stock options may be either incentive stock options, which bestow certain tax benefits on the optionee, or non-qualified stock options, not qualifying for such benefits. All options have an exercise price that is not less than the market value of the Company's common stock on the date of the grant. The fair value of each option granted is estimated on the date of the grant using the Black-Scholes option-pricing model. The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of the Company's common stock as of the exercise or reporting date. During the years ended December 31, 2020, 2019 and 2018, in accordance with the Long Term Incentive Plan (“LTI Plan”) for Named Executive Officers (“NEOs”), the Company granted 69,360, 63,267 and 47,393 stock options, respectively, with an exercise price set to equal a 10.0% premium over the grant date stock price. All of the stock options granted vest ratably over three years. The estimated weighted-average grant-date fair value of all stock options granted in the years ended December 31, 2020, 2019 and 2018 was $4.10, $5.05 and $6.52 per stock option, respectively, using the Black-Scholes option-pricing model with assumptions as follows: Year Ended December 31, 2020 2019 2018 Dividend yield 3.03 % 2.86 % 2.80 % Expected volatility 23.11 23.80 27.53 Risk-free interest rate 1.47 2.52 2.67 Expected option life 6.0 years 6.0 years 6.5 years Compensation expense attributable to stock options was $425 thousand, $197 thousand and $91 thousand for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, there was $201 thousand of total unrecognized compensation cost related to unvested stock options. The cost is expected to be recognized over a weighted-average period of 0.1 years. The following table summarizes the status of the Company's stock options: Weighted Weighted Average Number Average Remaining Aggregate of Exercise Contractual Intrinsic (Dollars in thousands, except per share amounts) Options Price Life Value Outstanding, January 1, 2020 110,660 $ 35.71 Granted 69,360 34.87 Outstanding, December 31, 2020 180,020 35.39 8.2 years $ — Vested and Exercisable, December 31, 2020 110,660 35.71 7.7 years — Number of Exercise Options Price 69,360 $ 34.87 63,267 35.35 47,393 36.19 180,020 Restricted Stock Awards The Company's RSAs are shares of the Company's common stock that are forfeitable and are subject to restrictions on transfer prior to the vesting date. RSAs are forfeited if the award holder departs the Company before vesting. RSAs carry dividend and voting rights from the date of grant. The vesting of time-vested RSAs depends upon the award holder continuing to render services to the Company. The Company's performance-based RSAs vest subject to the achievement of the Company's corporate goals. The following table summarizes the unvested RSA activity for the year ended December 31, 2020: Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2020 293,717 $ 30.37 Granted 91,428 31.02 Vested (289,509) 30.34 Forfeited (6,593) 32.16 Unvested, December 31, 2020 89,043 31.00 During the year ended December 31, 2020, the Company granted a total of 91,428 RSAs. Of the 91,428 RSAs granted, 57,850 time-vested RSAs vest ratably over five years and 33,578 time-vested RSAs vest ratably over three years. During the year ended December 31, 2019, the Company granted RSAs of 78,952 shares. Of the 78,952 shares granted, 49,925 shares vest over five years and 29,027 shares vest over three years. During the year ended December 31, 2018, the Company granted RSAs of 83,782 shares. Of the 83,782 shares granted, 44,750 shares vest over five years, 13,915 shares vest over three years and 25,117 performance-based RSAs vest ratably over two years, subject to the achievement of the Company’s 2018 corporate goals. As of December 31, 2020, there were 89,043 unvested RSAs, all of which were time-vested RSAs and there were no performance-based RSAs. Compensation expense attributable to RSAs was $5.1 million, $2.2 million and $2.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. The total fair value of shares vested during the years ended December 31, 2020, 2019 and 2018, was $8.8 million, $2.5 million and $1.5 million, respectively. As of December 31, 2020, there was $2.2 million of total unrecognized compensation costs related to non-vested RSAs. The cost is expected to be recognized over a weighted-average period of 0.1 years. Restricted Stock Units Long Term Incentive Plan RSUs represent an obligation to deliver shares to an employee at a future date if certain vesting conditions are met. RSUs are subject to a time-based vesting schedule, or the satisfaction of performance conditions, and are settled in shares of the Company's common stock. RSUs do not provide voting rights and RSUs may provide dividend equivalent rights from the date of grant. The following table summarizes the unvested NEO RSU activity for the year ended December 31, 2020: Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2020 85,342 $ 29.59 Granted 26,556 32.13 Reinvested dividends 4,491 30.08 Added by performance factor 605 33.69 Forfeited (6,623) 28.68 Vested (72,096) 29.10 Unvested, December 31, 2020 38,275 32.57 During the year ended December 31, 2020 in accordance with the LTI plan for NEOs, the Company granted 26,556 RSUs. Of the 26,556 RSUs granted, 17,943 time-vested RSUs vest ratably over three years and 8,613 performance-based RSUs vest subject to the achievement of the Company’s three-year corporate goal for the three-year period ending December 31, 2022. During the year ended December 31, 2019 in accordance with the LTI plan for NEOs, the Company granted 22,305 RSUs. Of the 22,305 RSUs granted, 13,255 time-vested RSUs vest ratably over five years and 9,050 performance-based RSUs vest subject to the achievement of the Company’s three-year corporate goal for the three-year period ending December 31, 2021. Compensation expense attributable to LTI plan RSUs was $1.6 million, $693 thousand and $462 thousand in connection with these awards for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, there was $0.6 million of total unrecognized compensation cost related to non-vested RSUs. The cost is expected to be recognized over a weighted-average period of 0.1 years. Directors Plan In April 2009, the Company adopted a Directors Deferred Compensation Plan (“Directors Plan”). Under the Directors Plan, independent directors may elect to defer all or a portion of their annual retainer fee in the form of RSUs. In addition, directors receive a non-election retainer in the form of RSUs. These RSUs vest ratably over one year and have dividend rights but no voting rights. In connection with the Directors Plan, the Company recorded expense of $553 thousand, $570 thousand and $560 thousand for the years ended December 31, 2020, 2019 and 2018, respectively. Employee Stock Purchase Plan In May 2018, the Board of Directors adopted, and stockholders approved the Employee Stock Purchase Plan (“ESPP”). A total of 1,000,000 shares of the Company’s common stock have been initially authorized for issuance under the ESPP. Subject to any plan limitations, the ESPP allows eligible employees to contribute, normally through payroll deductions, up to $25 thousand for the purchase of the Company’s common stock at a discounted price per share for any calendar year. Eligible employees purchased 11,413 shares, 7,888 shares and 3,758 shares of the Company’s common stock under the ESPP during the years ended December 31, 2020, 2019 and 2018, respectively. No expense was recorded related to ESPP for the years ended December 31, 2020, 2019 and 2018. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE. | |
EARNINGS PER SHARE | 16. EARNINGS PER SHARE FASB ASC 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing EPS. The RSAs and certain RSUs granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities. The following table presents the computation of EPS for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, (In thousands, except per share data) 2020 2019 2018 Net income $ 42,042 $ 51,691 $ 39,227 Dividends paid on and earnings allocated to participating securities (872) (1,096) (853) Income attributable to common stock $ 41,170 $ 50,595 $ 38,374 Weighted average common shares outstanding, including participating securities 19,903 19,952 19,875 Weighted average participating securities (409) (424) (434) Weighted average common shares outstanding 19,494 19,528 19,441 Basic earnings per common share $ 2.11 $ 2.59 $ 1.97 Income attributable to common stock $ 41,170 $ 50,595 $ 38,374 Weighted average common shares outstanding 19,494 19,528 19,441 Incremental shares from assumed conversions of options and restricted stock units 55 31 27 Weighted average common and equivalent shares outstanding 19,549 19,559 19,468 Diluted earnings per common share $ 2.11 $ 2.59 $ 1.97 There were 180,020, 110,660 and 47,393 stock options outstanding at December 31, 2020, 2019 and 2018, respectively, that were not included in the computation of diluted earnings per share for the years ended December 31, 2020, 2019 and 2018 because the options’ exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. There were 8,941 RSUs that were antidilutive for the year ended December 31, 2020. There were no RSUs that were antidilutive for the year ended December 31, 2019. There were 3,156 RSUs that were antidilutive for the year ended December 31, 2018. |
COMMITMENTS AND CONTINGENCIES A
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS | |
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS | 17. COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS In the normal course of business, there are various outstanding commitments and contingent liabilities, such as claims and legal actions, guarantees and commitments to extend credit, which are not reflected in the accompanying consolidated financial statements. No material losses are anticipated as a result of these commitments and contingencies. Loan Commitments and Related Financial Instruments Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer-financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk of credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, often including obtaining collateral at exercise of the commitment. The following represents commitments outstanding: December 31, (In thousands) 2020 2019 Standby letters of credit $ 25,501 $ 23,670 Loan commitments outstanding (1) 150,515 117,044 Unused lines of credit 808,296 674,194 Total commitments outstanding $ 984,312 $ 814,908 (1) Of the $150.5 million of loan commitments outstanding at December 31, 2020, $5.1 million are fixed rate commitments and $145.4 million are variable rate commitments. Of the $117.0 million of loan commitments outstanding at December 31, 2019, $5.9 million are fixed rate commitments and $111.1 million are variable rate commitments. Litigation The Company and its subsidiaries are subject to certain pending and threatened legal actions that arise out of the normal course of business. In the opinion of management, the resolution of any such pending or threatened litigation is not expected to have a material adverse effect on the Company’s consolidated financial statements. Other Effective March 26, 2020, the FRB Board reduced the reserve requirement ratios to zero percent, which eliminated reserve requirements for all depository institutions. During 2020, the Bank invested overnight with the FRB and the average balance maintained during 2020 was $342.4 million. During 2020, the Bank maintained an overnight line of credit with the FHLB. The Bank has the ability to borrow against its unencumbered residential and commercial mortgages and investment securities owned by the Bank. At December 31, 2020, the Bank had aggregate lines of credit of $418.0 million with unaffiliated correspondent banks to provide short-term credit for liquidity requirements. Of these aggregate lines of credit, $398.0 million is available on an unsecured basis. As of December 31, 2020, the Bank had no such borrowings outstanding. In March 2001, the Bank entered into a Master Repurchase Agreement with the FHLB whereby the FHLB agrees to purchase securities from the Bank, upon the Bank’s request, with the simultaneous agreement to sell the same or similar securities back to the Bank at a future date. Securities are limited, under the agreement, to government securities, securities issued, guaranteed or collateralized by any agency or instrumentality of the U.S. Government or any government sponsored enterprise, and non-agency AA and AAA rated mortgage-backed securities. At December 31, 2020, there was up to $1.9 billion available for transactions under this agreement, assuming availability of required collateral. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
REGULATORY CAPITAL REQUIREMENTS | |
REGULATORY CAPITAL REQUIREMENTS | 18. REGULATORY CAPITAL REQUIREMENTS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital requirements that involve quantitative measures of the Company’s and Bank’s assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classifications also are subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total, tier 1, and common equity tier 1 capital to risk-weighted assets and of tier 1 capital to average assets. Tier 1 capital, risk-weighted assets and average assets are as defined by regulation. The required minimums for the Company and Bank are set forth in the tables that follow. The Company and the Bank met all capital adequacy requirements at December 31, 2020 and 2019. Under the Basel III Capital Rules the Company and the Bank are subject to the following minimum capital to risk-weighted assets ratios: a) 4.5% based on common equity tier 1 capital ("CET1"); b) 6.0% based on tier 1 capital; and c) 8.0% based on total regulatory capital. A minimum leverage ratio (tier 1 capital as a percentage of total average assets) of 4.0% is also required under the Basel III Capital Rules. The Basel III Capital Rules additionally require institutions to retain a capital conservation buffer, composed of CET1, of 2.5% above these required minimum capital ratio levels. Including the capital conservation buffer, the Company and the Bank effectively have the following minimum capital to risk-weighted assets ratios: a) 7.0% based on CET1; b) 8.5% based on tier 1 capital; and c) 10.5% based on total regulatory capital. The Company and the Bank made the one-time, permanent election to continue to exclude the effects of accumulated other comprehensive income or loss items included in stockholders’ equity for the purposes of determining the regulatory capital ratios. As of December 31, 2020, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” the Bank must maintain minimum total risk-based, tier 1 risk-based, common equity tier 1 risk-based, and tier 1 leverage ratios as set forth in the tables below. Since that notification, there are no conditions or events that management believes have changed the institution’s category. The following tables present actual capital levels and minimum required levels for the Company and the Bank under Basel III rules at December 31, 2020 and 2019: December 31, 2020 Minimum Capital Minimum To Be Well Minimum Capital Adequacy Requirement with Capitalized Under Prompt Actual Capital Adequacy Requirement Capital Conservation Buffer Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Common equity tier 1 capital to risk-weighted assets: Consolidated $ 424,652 10.3 % $ 185,479 4.5 % $ 288,523 7.0 % n/a n/a Bank 503,524 12.2 185,465 4.5 288,502 7.0 $ 267,895 6.5 % Total capital to risk-weighted assets: Consolidated 537,664 13.0 329,740 8.0 432,784 10.5 n/a n/a Bank 544,536 13.2 329,716 8.0 432,753 10.5 412,145 10.0 Tier 1 capital to risk-weighted assets: Consolidated 424,652 10.3 247,305 6.0 350,349 8.5 n/a n/a Bank 503,524 12.2 247,287 6.0 350,324 8.5 329,716 8.0 Tier 1 capital to average assets: Consolidated 424,652 6.8 249,502 4.0 n/a n/a n/a n/a Bank 503,524 8.1 249,389 4.0 n/a n/a 311,737 5.0 December 31, 2019 Minimum Capital Minimum To Be Well Minimum Capital Adequacy Requirement with Capitalized Under Prompt Actual Capital Adequacy Requirement Capital Conservation Buffer Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Common equity tier 1 capital to risk-weighted assets: Consolidated $ 397,800 10.2 % $ 176,121 4.5 % $ 273,967 7.0 % n/a n/a Bank 474,056 12.1 176,114 4.5 273,954 7.0 $ 254,386 6.5 % Total capital to risk-weighted assets: Consolidated 510,862 13.1 313,105 8.0 410,950 10.5 n/a n/a Bank 507,118 13.0 313,091 8.0 410,932 10.5 391,363 10.0 Tier 1 capital to risk-weighted assets: Consolidated 397,800 10.2 234,828 6.0 332,674 8.5 n/a n/a Bank 474,056 12.1 234,818 6.0 332,659 8.5 313,091 8.0 Tier 1 capital to average assets: Consolidated 397,800 8.5 187,386 4.0 n/a n/a n/a n/a Bank 474,056 10.1 187,377 4.0 n/a n/a 234,222 5.0 |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 19. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed financial information of Dime Community Bancshares, Inc. (Parent Company only) follows: Condensed Balance Sheets December 31, (In thousands) 2020 2019 Assets: Cash and cash equivalents $ 280 $ 3,663 Other assets 554 174 Investment in the Bank 596,703 573,410 Total assets $ 597,537 $ 577,247 Liabilities and stockholders’ equity: Subordinated debentures $ 79,059 $ 78,920 Other liabilities 647 1,173 Total liabilities 79,706 80,093 Total stockholders’ equity 517,831 497,154 Total liabilities and stockholders’ equity $ 597,537 $ 577,247 Condensed Statements of Income Year Ended December 31, (In thousands) 2020 2019 2018 Dividends from the Bank $ 26,500 $ 24,500 $ 15,000 Interest expense 4,401 4,539 4,539 Non-interest expense 252 104 135 Income before income taxes and equity in undistributed earnings of the Bank 21,847 19,857 10,326 Income tax benefit (1,280) (994) (1,005) Income before equity in undistributed earnings of the Bank 23,127 20,851 11,331 Equity in undistributed earnings of the Bank 18,915 30,840 27,896 Net income $ 42,042 $ 51,691 $ 39,227 Condensed Statements of Cash Flows Year Ended December 31, (In thousands) 2020 2019 2018 Cash flows from operating activities: Net income $ 42,042 $ 51,691 $ 39,227 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of the Bank (18,915) (30,840) (27,896) Amortization 139 139 140 (Increase) decrease in other assets (379) (73) 108 (Decrease) increase in other liabilities (526) 39 11 Net cash provided by operating activities 22,361 20,956 11,590 Cash flows from financing activities: Net proceeds from issuance of common stock 1,267 1,102 1,017 Purchase of treasury stock (4,633) (625) — Repurchase of surrendered stock from vesting of stock plans (3,181) (887) (586) Cash dividends paid (19,197) (18,420) (18,342) Net cash used in financing activities (25,744) (18,830) (17,911) Net (decrease) increase in cash and cash equivalents (3,383) 2,126 (6,321) Cash and cash equivalents at beginning of year 3,663 1,537 7,858 Cash and cash equivalents at end of year $ 280 $ 3,663 $ 1,537 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 20. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the components of other comprehensive (loss) income and related income tax effects: Year Ended December 31, (In thousands) 2020 2019 2018 Unrealized holding gains (losses) on available for sale securities $ 9,069 $ 15,524 $ (8,429) Reclassification adjustments for (gains) losses realized in income (3,525) (201) 7,921 Income tax effect (1,628) (4,467) 160 Net change in unrealized gains (losses) on available for sale securities 3,916 10,856 (348) Unrealized net losses arising during the period (3,245) (1,076) (1,567) Reclassification adjustments for amortization realized in income 581 487 384 Income tax effect 799 179 351 Net change in post-retirement obligation (1,865) (410) (832) Change in fair value of derivatives used for cash flow hedges (10,455) (3,601) 2,493 Reclassification adjustments for losses (gains) realized in income 5,016 (1,588) (1,068) Income tax effect 1,601 1,514 (418) Net change in unrealized (losses) gains on cash flow hedges (3,838) (3,675) 1,007 Other comprehensive (loss) income $ (1,787) $ 6,771 $ (173) The following is a summary of the accumulated other comprehensive (loss) income balances, net of income taxes, at the dates indicated: Other December 31, Comprehensive December 31, (In thousands) 2019 Income (Loss) 2020 Unrealized (losses) gains on available for sale securities $ (829) $ 3,916 $ 3,087 Unrealized losses on pension benefits (6,775) (1,865) (8,640) Unrealized losses on cash flow hedges (737) (3,838) (4,575) Accumulated other comprehensive loss, net of income taxes $ (8,341) $ (1,787) $ (10,128) The following represents the reclassifications out of accumulated other comprehensive (loss) income: Year Ended December 31, Affected Line Item in the (In thousands) 2020 2019 2018 Consolidated Statements of Income Realized gains (losses) on sale of available for sale securities $ 3,525 $ 201 $ (7,921) Net securities gains (losses) Amortization of defined benefit pension plan and defined benefit plan component of the SERP: Prior service credit 77 77 77 Other operating expenses Transition obligation — — (5) Other operating expenses Actuarial losses (658) (564) (456) Other operating expenses Realized (losses) gains on cash flow hedges (1,651) 1,588 1,068 Interest expense Realized loss on the termination of swaps (3,365) — — Loss on termination of swaps Total reclassifications, before income tax (2,072) 1,302 (7,237) Income tax benefit (expense) 606 (380) 2,105 Income tax expense Total reclassifications, net of income tax $ (1,466) $ 922 $ (5,132) |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2020 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 21. QUARTERLY FINANCIAL DATA (UNAUDITED) Selected Consolidated Quarterly Financial Data follows: 2020 Quarter Ended (In thousands, except per share amounts) March 31, June 30, September 30, December 31, Interest income $ 44,602 $ 45,850 $ 46,296 $ 47,484 Interest expense 7,952 5,418 5,589 4,492 Net interest income 36,650 40,432 40,707 42,992 Provision for credit losses 5,000 4,500 1,500 500 Net interest income after provision for credit losses 31,650 35,932 39,207 42,492 Non-interest income 5,217 2,252 6,790 5,444 Non-interest expense 24,843 24,399 28,937 (1) 35,078 (2) Income before income taxes 12,024 13,785 17,060 12,858 Income tax expense 2,676 3,129 3,999 3,881 Net income $ 9,348 $ 10,656 $ 13,061 $ 8,977 Basic earnings per share $ 0.47 $ 0.54 $ 0.66 $ 0.45 Diluted earnings per share $ 0.47 $ 0.54 $ 0.66 $ 0.45 2019 Quarter Ended (In thousands, except per share amounts) March 31, June 30, September 30, December 31, Interest income $ 44,515 $ 46,352 $ 46,354 $ 44,320 Interest expense 10,192 10,835 9,639 8,672 Net interest income 34,323 35,517 36,715 35,648 Provision for loan losses 600 3,500 1,000 600 Net interest income after provision for loan losses 33,723 32,017 35,715 35,048 Non-interest income 5,218 5,499 6,244 8,426 Non-interest expense 22,599 24,004 24,204 25,332 Income before income taxes 16,342 13,512 17,755 18,142 Income tax expense 3,415 2,859 3,852 3,934 Net income $ 12,927 $ 10,653 $ 13,903 $ 14,208 Basic earnings per share $ 0.65 $ 0.53 $ 0.70 $ 0.71 Diluted earnings per share $ 0.65 $ 0.53 $ 0.70 $ 0.71 (1) 2020 amount includes pre-tax merger expenses of $2.4 million. (2) 2020 amount includes pre-tax merger expenses of $2.1 million. |
NET FRAUD LOSS
NET FRAUD LOSS | 12 Months Ended |
Dec. 31, 2020 | |
NET FRAUD LOSS | |
NET FRAUD LOSS | 22. NET FRAUD LOSS The Company incurred a pre-tax charge of $8.9 million in the year ended December 31, 2018 relating to the fraudulent conduct of a business customer through its deposit accounts at the Bank. The Company continues to work with the appropriate law enforcement authorities in connection with this matter. The customer has filed a petition pursuant to Chapter 11 of the bankruptcy code. In September 2020, the Company resolved its claim for the loss with its insurance carrier to the full extent of the available coverage. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENT. | |
SUBSEQUENT EVENT | 23. SUBSEQUENT EVENT Merger Agreement with Dime Community Bancshares, Inc. On July 1, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Legacy Dime. Pursuant to the Merger Agreement, on February 1, 2021, Legacy Dime merged with and into Bridge, with Bridge as the surviving corporation under the name “Dime Community Bancshares, Inc.” At the Effective Time, each outstanding share of Legacy Dime common stock, par value $0.01 per share, was converted into the right to receive 0.6480 shares of the Company’s common stock, par value $0.01 per share. The Company issued 21,232,920 shares of its common stock to Legacy Dime shareholders in connection with the Merger. At the Effective Time, each outstanding share of Legacy Dime’s Series A preferred stock, par value $0.01 (the “Dime Preferred Stock”) was converted into the right to receive one share of a newly created series of Company preferred stock having the same powers, preferences and rights as the Dime Preferred Stock. The Company issued 5,299,200 shares of its 5.50% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A to Dime Preferred Stock holders in connection with the Merger. Immediately following the Merger, Dime Community Bank, a New York-chartered commercial bank and a wholly-owned subsidiary of Legacy Dime, merged with and into BNB Bank, a New York-chartered commercial bank and a wholly-owned subsidiary of the Company, with BNB Bank as the surviving bank, under the name “Dime Community Bank.” In connection with the Merger, the Company assumed $115.0 million in aggregate principal amount of 4.50% Fixed-to-Floating Rate Subordinated Debentures due 2027 of Legacy Dime. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
BASIS OF PRESENTATION. | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation On February 1, 2021, Dime Community Bancshares, Inc., (“Legacy Dime”) merged with and into Bridge Bancorp, Inc., (“Legacy Bridge”) (the “Merger”), with Legacy Bridge as the surviving corporation under the name “Dime Community Bancshares, Inc.” (the “Holding Company”). The consolidated financial statements include the Holding Company, which was known as “Bridge Bancorp, Inc.” prior to the Merger, a bank holding company incorporated under the laws of the State of New York, engaged in commercial banking and financial services through its wholly-owned subsidiary, Dime Community Bank, (the “Bank”), which was known as “BNB Bank” prior to the Merger, together referred to as the “Company.” The Bank’s operations include its real estate investment trust subsidiary, Bridgehampton Community, Inc.; a financial title insurance subsidiary, Bridge Abstract LLC (“Bridge Abstract”); and an investment services subsidiary, Bridge Financial Services, Inc. (“Bridge Financial Services”). Intercompany transactions and balances are eliminated in consolidation. The Company’s consolidated financial statements, including notes thereto, and accounting policies and practices are as of December 31, 2020, and do not include the operations of Legacy Dime. The Company provides financial services through its branches in its primary market areas of Suffolk and Nassau Counties on Long Island and the New York City boroughs. The Bank’s primary deposit products are time, savings and demand deposits from the consumers, businesses and local municipalities in its market area. Its primary lending products are commercial real estate, multi-family, commercial and industrial, and residential mortgage loans. There are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the area. The audited consolidated financial statements presented in this Annual Report on Form 10-K include the collective results of the Holding Company and its wholly-owned subsidiary, the Bank, which are collectively herein referred to as “we”, “us”, “our” and the “Company.” The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and general practices within the financial institution industry. The following is a description of the significant accounting policies that the Company follows in preparing its consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual future results could differ. |
COVID-19 Risks | COVID-19 Risks In December 2019, a novel coronavirus (“COVID-19”) was reported in China, and, in March 2020, the World Health Organization declared COVID-19 a pandemic. On March 12, 2020, the President of the United States declared the COVID-19 outbreak in the United States a national emergency. The Company’s audited consolidated financial statements reflect the impact of COVID-19 on the assumptions and estimates used. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 outbreak on the Company’s business. The extent of such impact will depend on future developments, which are highly uncertain, including when COVID-19 can be controlled and abated and when and how the economy may be reopened. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, the Company is subject to the following risks, any of which could have a material, adverse effect on its business, financial condition, liquidity, and results of operations: ● demand for the Company’s products and services may decline, making it difficult to grow assets and income; ● if the economy is unable to substantially reopen or remain open, and high levels of unemployment continue, for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; ● collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; ● the Company’s allowance for credit losses (“ACL”) may have to be increased if borrowers experience financial difficulties beyond forbearance periods, which will adversely affect the Company’s net income; ● the Company may recognize impairment of its goodwill; ● the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to the Company; ● as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on the Company’s assets may decline to a greater extent than the decline in its cost of interest-bearing liabilities, reducing net interest margin and spread and reducing net income; ● a material decrease in net income or a net loss over several quarters could result in a decrease in the rate of the Company’s quarterly cash dividend; ● the Company’s cyber security risks are increased as the result of an increase in the number of employees working remotely; and ● the Company relies on third party vendors for certain services and the unavailability of a critical service due to the COVID-19 outbreak could have an adverse effect on the Company. |
Cash Flows | Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest- earning deposits with banks, and federal funds sold, which mature overnight. Net cash flows are reported for customer loan and deposit transactions, federal funds purchased, FHLB advances, and repurchase agreements. |
Securities | Securities Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting in observable price changes in orderly transactions for the identical or a similar investment. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. The Company has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest separately in accrued interest receivable in the consolidated balance sheet. A debt security is placed on non-accrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on non-accrual is reversed against interest income. There were no non-accrual debt securities at December 31, 2020 and there was no accrued interest related to debt securities reversed against interest income for the year ended December 31, 2020. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. On January 1, 2020, the Company adopted the CECL Standard, which requires that debt securities held to maturity be accounted for under the current expected credit losses model, including historical loss experience and impact of current conditions and reasonable and supportable forecasts, with an associated allowance for credit losses. In addition, while credit losses on debt securities available for sale should be measured in accordance with the other-than-temporary impairment (“OTTI”) framework under current GAAP, the amendments in the CECL Standard require that these credit losses be presented as an allowance for credit losses. For AFS debt securities, a decline in fair value due to credit loss results in recording an allowance for credit losses to the extent the fair value is less than the amortized cost basis. |
Held to maturity debt securities and the allowance for credit losses | Held to maturity debt securities and the allowance for credit losses To the extent that debt securities in the held-to-maturity portfolio share common risk characteristics, estimated expected credit losses are calculated in a manner like that used for loans held for investment. That is, for pools of such debt securities with common risk characteristics, the historical lifetime probability of default and severity of loss in the event of default is derived or obtained from external sources and adjusted for the expected effects of reasonable and supportable forecasts over the expected lives of the securities. Expected credit loss on each debt security in the held-to-maturity portfolio that do not share common risk characteristics with any of the pools of debt securities is individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded amortized cost basis of the security. With respect to certain classes of debt securities, primarily U.S. Treasuries and securities issued by Government Sponsored Entities, the Company considers the history of credit losses, current conditions and reasonable and supportable forecasts, which may indicate that the expectation that nonpayment of the amortized cost basis is or continues to be zero, even if the U.S. government were to technically default. Therefore, for those securities, the Company does not record expected credit losses. Accrued interest receivable is excluded from the estimate of credit losses. |
Available for sale debt securities and the allowance for credit losses | Available for sale debt securities and the allowance for credit losses Management evaluates available for sale debt securities for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the near-term prospects of the issuer. Impairment may result from credit deterioration of the issuer or collateral underlying the security. In performing an assessment of whether any decline in fair value is due to a credit loss, all relevant information is considered at the individual security level. For asset-backed securities performance indicators considered related to the underlying assets include default rates, delinquency rates, percentage of non-performing assets, debt-to-collateral ratios, third party guarantees, current levels of subordination, vintage, geographic concentration, analyst reports and forecasts, credit ratings and other market data. In assessing whether a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount the fair value is less than amortized cost basis. Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are excluded from earnings and reported, net of tax, in other comprehensive income (“OCI”). Management also assesses whether it intends to sell or is more likely than not that it will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. Accrued interest receivable is excluded from the estimate of credit losses. |
Securities, Restricted | Securities, Restricted Securities, restricted represents FHLB, Federal Reserve Bank (“FRB”) and bankers’ banks stock, which are reported at cost. The Bank is a member of the FHLB system. Members are required to own a particular amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Loans Held for Sale | Loans Held for Sale Loans held for sale are carried at the lower of aggregate cost or estimated fair value. Any subsequent declines in fair value below the initial carrying value are recorded as a valuation allowance, which is established through a charge to earnings. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal amount outstanding, net of partial charge-offs, deferred origination costs and fees and purchase premiums and discounts. Loan origination and commitment fees and certain direct and indirect costs incurred in connection with loan originations are deferred and amortized to income over the life of the related loans as an adjustment to yield. When a loan prepays, the remaining unamortized net deferred origination fees or costs are recognized in the current year. Interest on loans is credited to income based on the principal outstanding during the period. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in accrued interest receivable on consolidated balance sheets. Past due status is based on the contractual terms of the loan. Loans that are 90 days past due are automatically placed on non-accrual and previously accrued interest is reversed and charged against interest income. However, if the loan is in the process of collection and the Bank has reasonable assurance that the loan will be fully collectable based upon an individual loan evaluation assessing such factors as collateral and collectability, accrued interest will be recognized as earned. If a payment is received when a loan is non-accrual or a troubled debt restructuring (“TDR”) loan is non-accrual, the payment is applied to the principal balance. A TDR loan performing in accordance with its modified terms is maintained on accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans that were acquired through the acquisition of Community National Bank on June 19, 2015 and First National Bank of New York on February 14, 2014 were initially recorded at fair value with no carryover of the related allowance for loan losses. After acquisition, losses are recognized through the allowance for loan losses. Determining fair value of the loans involves estimating the amount and timing of expected principal and interest cash flows to be collected on the loans and discounting those cash flows at a market interest rate. Some of the loans at the time of acquisition showed evidence of credit deterioration since origination. These loans were considered purchased credit impaired (“PCI”) loans. As of December 31, 2019, the remaining balance of PCI loans was immaterial to the Company’s financial condition and results of operations. Unless otherwise noted, the above policy is applied consistently to all loan segments. |
Allowance for Credit Losses | Allowance for Credit Losses On January 1, 2020, we adopted the CECL Standard, which requires that loans held for investment be accounted for under the current expected credit losses model. Although the CARES Act provided the option to delay the adoption of the current expected credit loss model until the earlier of December 31, 2020 or the termination of the current national emergency declaration related to the COVID-19 outbreak, we implemented the CECL Standard in the first quarter of 2020 as previously planned. The allowance for credit losses is established and maintained through a provision for credit losses based on expected losses inherent in our loan portfolio. Management evaluates the adequacy of the allowance on a quarterly basis. Management monitors its entire loan portfolio regularly, with consideration given to detailed analysis of classified loans, repayment patterns, past loss experience, various types of concentrations of credit, current economic conditions, and reasonable and supportable forecasts. Additions to the allowance are charged to expense and realized losses, net of recoveries, are charged against the allowance. The credit loss estimation process involves procedures to appropriately consider the unique characteristics of our loan portfolio segments. These segments are further disaggregated into loan risk ratings, the level at which credit risk is monitored. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on expected loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and provision for credit losses in those future periods. Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in our process for estimation of expected credit losses. The allowance level is influenced by loan volumes, loan risk rating migration, historic loss experience and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses has two basic components: (1) an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans; and (2) a pooled component for estimated expected credit losses for pools of loans that share similar risk characteristics. |
Loans that do not share similar credit risk characteristics | Loans that do not share similar credit risk characteristics For a loan that does not share risk characteristics with other loans, expected credit loss is measured based on net realizable value, that is, the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan. For these loans, the Company recognizes expected credit loss equal to the amount by which the net realizable value of the loan is less than the amortized cost basis of the loan (which is net of previous charge-offs), except when the loan is collateral dependent, that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated costs to sell the loan if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. The fair value of real estate collateral is determined based on recent appraised values. Appraisals are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. All appraisals undergo a second review process to ensure that the methodology employed and the values derived are reasonable. Generally, collateral values for real estate loans for which measurement of expected losses is dependent on collateral values are updated every twelve months. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the borrower and its business. Once the expected credit loss amount is determined, an allowance is provided for equal to the calculated expected credit loss and included in the allowance for credit losses. Pursuant to the Company’s policy, credit losses must be charged-off in the period the loans, or portions thereof, are deemed uncollectable. |
Loans that share similar credit risk characteristics | Loans that share similar credit risk characteristics In estimating the component of the allowance for credit losses for loans that share similar risk characteristics with other loans, such loans are segmented into loan types. Loans are designated into loan pools with similar risk characteristics based on product type in conjunction with other homogeneous characteristics. Loan types include commercial real estate mortgages, owner and non-owner occupied; multi-family mortgage loans; residential real estate mortgages and home equity loans; commercial, industrial and agricultural loans, real estate construction and land loans; and consumer loans. In determining the allowance for credit losses, the Company derives an estimated credit loss assumption from a model that categorizes loan pools based on loan type and further segmented by risk rating. This model is known as Probability of Default/Loss Given Default, utilizing a Transition Matrix approach. This model calculates an expected loss percentage for each loan pool by considering the probability of default, based upon the historical transition or migration of loans from performing (various pass ratings) to criticized, and classified risk ratings to default by risk rating buckets using life-of-loan analysis runout periods for all loan segments, and the historical severity of loss, based on the aggregate net lifetime losses (loss given default) per loan pool. The default trigger, which is defined as the earlier of ninety days past-due or non-accrual status, and severity factors used to calculate the allowance for credit losses for loans in pools that share similar risk characteristics with other loans, are adjusted for differences between the historical period used to calculate historical default and loss severity rates and expected conditions over the remaining lives of the loans in the portfolio. These factors include: (1) lending policies and procedures; (2) international, national, regional and local economic business conditions and developments that affect the collectability of the portfolio, including the condition of various markets; (3) the nature and volume of the loan portfolio including the terms of the loans; (4) the experience, ability, and depth of the lending management and other relevant staff; (5) the volume and severity of past due and adversely classified or graded loans and the volume of non-accrual loans; (6) the quality of our loan review system; (7) the value of underlying collateral for collateralized loans; (8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and (9) the effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio. Such factors are used to adjust the historical probabilities of default and severity of loss for current conditions that are not reflective of the model results. In addition, the economic factor includes management’s expectation of future conditions based on a reasonable and supportable forecast of the economy. To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made (currently two years), the Bank reverts immediately back to the historical rates of default and severity of loss. Management believes that this transition approach to the Probability of Default/Loss Given Default is a relevant calculation of expected credit losses as there is sufficient volume as well as movement in the risk ratings due to the initial grading system as well as timely updates to risk ratings when necessary. Credit risk ratings are based on management’s evaluation of a credit’s cash flow, collateral, guarantor support, financial disclosures, industry trends and strength of borrowers’ management. Future additions or reductions to the allowance may be necessary based on changes in economic, market or other conditions. Changes in estimates could result in a material change in the allowance. In addition, various regulatory agencies, as an integral part of the examination process, periodically review the allowance for credit losses. Such agencies may require the Bank to recognize adjustments to the allowance based on their judgments of the information available to them at the time of their examination. A loan is considered a potential charge-off when it is in default of either principal or interest for a period of 90, 120 or 180 days, depending upon the loan type, as of the end of the prior month. In addition to delinquency criteria, other triggering events may include, but are not limited to, notice of bankruptcy by the borrower or guarantor, death of the borrower, and deficiency balance from the sale of collateral. Unless otherwise noted, the above policy is applied consistently to all loan portfolio segments. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as unused lines of credit, 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 on the balance sheet when they are funded. In accordance with the CECL Standard, the Company maintains a separate reserve for off-balance sheet credit instruments, which is included in other liabilities on the consolidated statements of financial condition. Management estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Company and applying the loss factors, current conditions and forecasting adjustments used in the allowance for credit loss methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan type. No credit loss estimate is reported for off-balance sheet credit exposures that are unconditionally cancellable by the Company. At December 31, 2020, the reserve for off-balance sheet credit exposures was immaterial to the Company’s consolidated statements of financial condition and results of operations. |
Premises and Equipment | Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with a useful life of fifty years for buildings and a range of two Improvements and major repairs are capitalized, while the cost of ordinary maintenance, repairs and minor improvements are charged to expense. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Bank is the owner and beneficiary of life insurance policies on certain employees. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Other Real Estate Owned | Other Real Estate Owned Real estate properties acquired through, or in lieu of, foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. |
Goodwill and other Intangible Assets | Goodwill and Other Intangible Assets Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and indefinite-lived intangible assets are not amortized, but tested for impairment at least annually, or more frequently if events and circumstances exist that indicate the carrying amount of the asset may be impaired. The Company has selected November 30 as the date to perform the annual impairment test. Goodwill and the BNB Bank Other intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangible assets are amortized on an accelerated method over their estimated useful lives of ten years. Other intangible assets also include servicing rights, which result from the sale of SBA loans with servicing rights retained. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. |
Derivatives | Derivatives The Company records cash flow hedges at the inception of the derivative contract based on the Company’s intentions and belief as to likely effectiveness as a hedge. Cash flow hedges represent 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 other comprehensive income (“OCI”) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or 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 fair values or 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 fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. |
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 the expected future tax amounts for temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. It is management’s position, as currently supported by the facts and circumstances, that no valuation allowance is necessary against any of the Company’s deferred tax assets at December 31, 2020. 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. There are no such tax positions in the Company’s financial statements at December 31, 2020 and 2019. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. The Company did not have any amounts accrued for interest and penalties at December 31, 2020 and 2019. |
Treasury Stock | Treasury Stock Repurchases of common stock are recorded as treasury stock at cost. Treasury stock is reissued using the first in, first out method. |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) Basic EPS is net income attributable to common shareholders divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted EPS includes the dilutive effect of additional potential common shares issuable under stock options. |
Dividend Restriction | Dividend Restriction Cash available for distribution of dividends to stockholders of the Company is primarily derived from cash and cash equivalents of the Company and dividends paid by the Bank to the Company. Prior regulatory approval is required if the total of all dividends declared by the Bank in any calendar year exceeds the total of the Bank’s net income of that year combined with its retained net income of the preceding two years. Dividends from the Bank to the Company at January 1, 2021 are limited to $49.8 million, which represents the Bank’s net retained earnings from the previous two years. During 2020, the Bank paid $26.5 million in cash dividends to the Company. |
Segment Reporting | Segment Reporting While management monitors the revenue streams of the various products and services, the identifiable segments are not material and 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. |
Stock-Based Compensation | Stock-Based Compensation Compensation cost is recognized for stock options, restricted stock awards (“RSAs”), and restricted stock units (“RSUs”) issued to employees and independent directors, based on the fair value of these awards at the date of the grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used to estimate the fair value for RSAs and RSUs. Compensation cost is recognized as expense over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s accounting policy is to recognize forfeitures as they occur. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on available for sale securities, unrealized gains and losses on cash flow hedges, and changes in the funded status of the pension plan, which are also recognized as separate components of equity. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation. |
Standards Effective in 2020 | Standards Effective in 2020 ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) Effective for periods after December 31, 2019, the Company adopted Accounting Standards Update (“ASU”) No 2016-13, Financial Instruments – Credit Losses (Topic 326), which replaced the long-standing incurred loss model used in calculating the allowance for loan and lease losses with a more forward-looking, current expected credit loss model (“CECL” or the “CECL Standard”). Furthermore, the CECL Standard requires financial institutions to measure all expected credit losses for in-scope financial assets held at amortized cost at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts, including estimates of prepayments. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. Accordingly, financial institutions will now leverage forward-looking information to better inform their credit loss estimates. For the Company, this standard applies to loans held for investment, unfunded commitments, and securities held to maturity. In addition, the CECL Standard made changes to the accounting for available for sale debt securities. Credit losses on available for sale debt securities under the CECL Standard should be measured in a manner similar to legacy GAAP. However, the amendments in the CECL Standard require that credit losses be presented as an allowance for credit losses rather than as a write-down. The CECL Standard approach is an improvement because an entity is able to record reversals of credit losses (in situations in which the estimate of credit losses declines) in current period net income, which in turn should align the income statement recognition of credit losses with the reporting period in which changes occur. Although the Coronavirus Aid, Relief, and Economic Security Act (the “CARES” Act) provided the option to delay the adoption of the CECL Standard until the earlier of December 31, 2020 or the termination of the current national emergency declaration related to the COVID-19 outbreak, the Company adopted the CECL Standard in the first quarter of 2020 as previously planned using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the CECL Standard resulted in an initial increase of $1.6 million to the allowance for credit losses and $0.5 million to the reserve for unfunded commitments. The after-tax cumulative-effect adjustment of $1.5 million was recorded in retained earnings as of January 1, 2020. Based on the credit quality of the Company's securities portfolio, there was no initial adjustment to retained earnings for credit losses associated with debt securities held to maturity. Results for reporting periods beginning after January 1, 2020 are presented under the CECL Standard while prior period amounts will continue to be reported in accordance with previously applicable GAAP. ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB amended existing guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments are effective for public business entities that are an SEC filer, like the Company, for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendments should be applied prospectively. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition in the first annual period when the entity initially adopts the amendments. The adoption of ASU 2017-04 did not have an effect on the Company's consolidated financial statements. ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15 to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in this ASU are effective for public business entities, like the Company, for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption of the amendments in this ASU is permitted, including adoption in any interim period. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The adoption of ASU 2018-15 did not have a material effect on the Company's consolidated financial statements. |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SECURITIES. | |
Schedule of amortized cost and fair value of the available for sale and held to maturity | The following table summarizes the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio at December 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses, respectively: December 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: State and municipal obligations $ 40,448 $ 1,650 $ (10) $ 42,088 U.S. GSE residential mortgage-backed securities 111,398 1,843 (6) 113,235 U.S. GSE residential collateralized mortgage obligations 127,369 1,661 (226) 128,804 U.S. GSE commercial mortgage-backed securities 24,920 140 (253) 24,807 U.S. GSE commercial collateralized mortgage obligations 61,102 1,286 (52) 62,336 Other asset backed securities 24,250 — (300) 23,950 Corporate bonds 56,500 195 (1,555) 55,140 Total available for sale 445,987 6,775 (2,402) 450,360 Gross Gross Estimated Amortized Unrecognized Unrecognized Fair (In thousands) Cost Gains Losses Value Held to maturity: State and municipal obligations 23,715 1,406 — 25,121 U.S. GSE residential mortgage-backed securities 6,272 227 — 6,499 U.S. GSE residential collateralized mortgage obligations 18,511 489 (9) 18,991 U.S. GSE commercial mortgage-backed securities 13,069 625 — 13,694 U.S. GSE commercial collateralized mortgage obligations 24,133 887 — 25,020 Total held to maturity 85,700 3,634 (9) 89,325 Total securities $ 531,687 $ 10,409 $ (2,411) $ 539,685 As of December 31, 2020, none of the Company’s available for sale debt securities were in an unrealized loss position due to credit and therefore no allowance for credit losses on available for sale debt securities was required. Additionally, the calculated allowance for credit losses on held to maturity securities was inconsequential given the high quality composition of the Company’s held to maturity portfolio and therefore no allowance for credit losses was recorded. Accrued interest receivable on securities totaling $1.4 million at December 31, 2020 was included in accrued interest receivable in the consolidated balance sheet and excluded from the amortized cost and estimated fair value totals in the table above. The following table summarizes the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio at December 31, 2019 and the corresponding amounts of gross unrealized gains and losses therein: December 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: U.S. Treasury securities $ 50,833 $ — $ (11) $ 50,822 U.S. GSE securities 5,000 — (5) 4,995 State and municipal obligations 34,303 704 (43) 34,964 U.S. GSE residential mortgage-backed securities 84,550 609 (468) 84,691 U.S. GSE residential collateralized mortgage obligations 278,149 1,166 (1,464) 277,851 U.S. GSE commercial mortgage-backed securities 13,656 23 (70) 13,609 U.S. GSE commercial collateralized mortgage obligations 102,722 1,723 (289) 104,156 Other asset-backed securities 24,250 — (849) 23,401 Corporate bonds 46,000 — (2,198) 43,802 Total available for sale 639,463 4,225 (5,397) 638,291 Held to maturity: State and municipal obligations 41,008 809 — 41,817 U.S. GSE residential mortgage-backed securities 8,142 5 (54) 8,093 U.S. GSE residential collateralized mortgage obligations 39,936 624 (62) 40,498 U.S. GSE commercial mortgage-backed securities 17,215 102 (82) 17,235 U.S. GSE commercial collateralized mortgage obligations 27,337 191 (144) 27,384 Total held to maturity 133,638 1,731 (342) 135,027 Total securities $ 773,101 $ 5,956 $ (5,739) $ 773,318 |
Schedule of securities having a continuous unrealized loss position aggregated by a period of time less than or greater than 12 months | The following table summarizes available for sale debt securities with gross unrealized losses for which an allowance for credit losses has not been recorded at December 31, 2020, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position: December 31, 2020 Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Available for sale: State and municipal obligations $ 5,310 $ (10) $ — $ — U.S. GSE residential mortgage-backed securities — — 152 (6) U.S. GSE residential collateralized mortgage obligations 55,832 (226) — — U.S. GSE commercial mortgage-backed securities 14,994 (253) — — U.S. GSE commercial collateralized mortgage obligations 11,755 (52) — — Other asset backed securities — — 3,450 (300) Corporate bonds 7,927 (73) 29,518 (1,482) Total available for sale $ 95,818 $ (614) $ 33,120 $ (1,788) The following table summarizes securities with gross unrealized losses at December 31, 2019, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position: December 31, 2019 Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Available for sale: U.S. Treasury securities $ 50,822 $ (11) $ — $ — U.S. GSE securities — — 4,995 (5) State and municipal obligations 4,982 (42) 76 (1) U.S. GSE residential mortgage-backed securities 2,935 (30) 39,617 (438) U.S. GSE residential collateralized mortgage obligations 81,377 (480) 93,403 (984) U.S. GSE commercial mortgage-backed securities 6,648 (70) — — U.S. GSE commercial collateralized mortgage obligations 28,710 (145) 9,614 (144) Other asset-backed securities — — 23,401 (849) Corporate bonds — — 43,802 (2,198) Total available for sale $ 175,474 $ (778) $ 214,908 $ (4,619) Held to maturity: U.S. GSE residential mortgage-backed securities — — 7,268 (54) U.S. GSE residential collateralized mortgage obligations 6,750 (17) 6,105 (45) U.S. GSE commercial mortgage-backed securities — — 5,034 (82) U.S. GSE commercial collateralized mortgage obligations 13,038 (57) 4,300 (87) Total held to maturity $ 19,788 $ (74) $ 22,707 $ (268) |
Schedule of amortized cost, fair value and maturities of the available for sale and held to maturity investment securities portfolio | December 31, 2020 Amortized Estimated (In thousands) Cost Fair Value Maturity Available for sale: Within one year $ 4,131 $ 4,116 One to five years 58,608 58,861 Five to ten years 38,415 38,597 Beyond ten years 344,833 348,786 Total $ 445,987 $ 450,360 Held to maturity: Within one year $ 1,885 $ 1,902 One to five years 23,140 24,452 Five to ten years 11,535 12,144 Beyond ten years 49,140 50,827 Total $ 85,700 $ 89,325 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE. | |
Schedule of assets and liabilities measured on a recurring basis | December 31, 2020 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Financial assets: Available for sale securities: State and municipal obligations $ 42,088 $ 42,088 U.S. GSE residential mortgage-backed securities 113,235 113,235 U.S. GSE residential collateralized mortgage obligations 128,804 128,804 U.S. GSE commercial mortgage-backed securities 24,807 24,807 U.S. GSE commercial collateralized mortgage obligations 62,336 62,336 Other asset-backed securities 23,950 23,950 Corporate bonds 55,140 55,140 Total available for sale securities $ 450,360 $ 450,360 Derivatives $ 49,662 $ 49,662 Financial liabilities: Derivatives $ 56,417 $ 56,417 December 31, 2019 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Financial assets: Available for sale securities: U.S. Treasury securities $ 50,822 $ 50,822 U.S. GSE securities 4,995 4,995 State and municipal obligations 34,964 34,964 U.S. GSE residential mortgage-backed securities 84,691 84,691 U.S. GSE residential collateralized mortgage obligations 277,851 277,851 U.S. GSE commercial mortgage-backed securities 13,609 13,609 U.S. GSE commercial collateralized mortgage obligations 104,156 104,156 Other asset-backed securities 23,401 23,401 Corporate bonds 43,802 43,802 Total available for sale securities $ 638,291 $ 638,291 Derivatives $ 15,437 $ 15,437 Financial liabilities: Derivatives $ 16,645 $ 16,645 |
Schedule of assets measured at fair value on a non-recurring basis | December 31, 2020 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Loans held for sale $ 52,785 $ 42,785 $ 10,000 Individually evaluated loans $ 2,940 $ 2,940 December 31, 2019 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Loans held for sale $ 12,643 $ 12,643 Impaired loans $ 6,981 $ 6,981 |
Schedule of estimated fair values and recorded carrying values of financial instruments | December 31, 2020 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Total (In thousands) Amount (Level 1) (Level 2) (Level 3) Fair Value Financial assets: Cash and due from banks $ 107,729 $ 107,729 $ — $ — $ 107,729 Interest-bearing deposits with banks 769,099 769,099 — — 769,099 Securities available for sale 450,360 — 450,360 — 450,360 Securities restricted 23,362 n/a n/a n/a n/a Securities held to maturity 85,700 — 89,325 — 89,325 Loans held for sale 52,785 42,785 — 10,000 52,785 Loans, net 4,553,203 — — 4,554,333 4,554,333 Derivatives 49,662 — 49,662 — 49,662 Accrued interest receivable 16,566 — 1,421 15,145 16,566 Financial liabilities: Certificates of deposit 288,445 — 290,971 — 290,971 Demand and other deposits 5,200,808 5,200,808 — — 5,200,808 FHLB advances 215,000 — 221,665 — 221,665 Repurchase agreements 1,223 — 1,223 — 1,223 Subordinated debentures 79,059 — 86,704 — 86,704 Derivatives 56,417 — 56,417 — 56,417 Accrued interest payable 881 — 881 — 881 December 31, 2019 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Total (In thousands) Amount (Level 1) (Level 2) (Level 3) Fair Value Financial assets: Cash and due from banks $ 77,693 $ 77,693 $ — $ — $ 77,693 Interest-bearing deposits with banks 39,501 39,501 — — 39,501 Securities available for sale 638,291 — 638,291 — 638,291 Securities restricted 32,879 n/a n/a n/a n/a Securities held to maturity 133,638 — 135,027 — 135,027 Loans held for sale 12,643 — — 12,643 12,643 Loans, net 3,647,499 — — 3,685,770 3,685,770 Derivatives 15,437 — 15,437 — 15,437 Accrued interest receivable 10,908 — 2,181 8,727 10,908 Financial liabilities: Certificates of deposit 307,977 — 308,660 — 308,660 Demand and other deposits 3,506,670 3,506,670 — — 3,506,670 FHLB advances 435,000 195,000 239,622 — 434,622 Repurchase agreements 999 — 999 — 999 Subordinated debentures 78,920 — 81,010 — 81,010 Derivatives 16,645 — 16,645 — 16,645 Accrued interest payable 1,467 — 1,467 — 1,467 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of the major classifications of loans | (In thousands) December 31, 2020 December 31, 2019 Commercial real estate mortgage loans: Owner occupied $ 557,076 $ 531,088 Non-owner occupied 1,081,443 1,034,599 Multi-family mortgage loans 899,730 812,174 Residential real estate mortgage loans 434,689 493,144 Commercial, industrial and agricultural loans 1,527,147 679,444 Real estate construction and land loans 82,479 97,311 Installment/consumer loans 23,019 24,836 Total loans 4,605,583 3,672,596 Net deferred loan (fees) costs (8,180) 7,689 Total loans held for investment 4,597,403 3,680,285 Allowance for credit losses (44,200) (32,786) Loans, net $ 4,553,203 $ 3,647,499 |
Schedule of loans by class categorized by internally assigned credit risk grades | The following tables represent loans categorized by internally assigned risk grades as of December 31, 2020 and December 31, 2019. In the December 31, 2020 table, the years noted represent the year of origination for non-revolving loans. December 31, 2020 (In thousands) 2020 2019 2018 2017 2016 2015 and Prior Revolving Revolving-Term Total Commercial real estate owner occupied: Pass $ 92,053 $ 96,679 $ 47,224 $ 66,320 $ 25,852 $ 153,766 $ — $ — $ 481,894 Watch 727 1,373 8,038 10,737 3,425 23,919 — — 48,219 Special mention 1,843 — 3,875 10,857 823 4,600 — — 21,998 Substandard 469 553 — — 2,426 1,517 — — 4,965 Total commercial real estate owner occupied 95,092 98,605 59,137 87,914 32,526 183,802 — — 557,076 Commercial real estate non-owner occupied: Pass 181,811 249,782 108,086 180,235 54,252 214,620 — — 988,786 Watch 7,314 7,700 12,845 12,117 12,209 24,089 — — 76,274 Special mention — — — — — 290 — — 290 Substandard — — — 9,006 6,038 1,049 — — 16,093 Total commercial real estate non-owner occupied 189,125 257,482 120,931 201,358 72,499 240,048 — — 1,081,443 Multi-family: Pass 159,301 293,752 40,840 86,169 118,846 106,044 — — 804,952 Watch 15,436 2,724 — 19,331 35,976 12,825 — — 86,292 Special mention — — — 8,098 — 388 — — 8,486 Substandard — — — — — — — — — Total multi-family 174,737 296,476 40,840 113,598 154,822 119,257 — — 899,730 Residential real estate: Pass 20,033 32,564 71,903 95,712 23,589 106,518 53,217 7,012 410,548 Watch — — 406 321 541 1,740 — 1,145 4,153 Special mention — 1,103 758 — — 6,879 818 633 10,191 Substandard — 466 569 937 — 6,967 — 858 9,797 Total residential real estate 20,033 34,133 73,636 96,970 24,130 122,104 54,035 9,648 434,689 Commercial, industrial and agricultural: Pass 949,257 62,410 30,736 17,646 12,685 26,606 304,781 5,086 1,409,207 Watch 8,062 6,140 8,265 1,574 1,188 3,048 40,448 1,527 70,252 Special mention 2,914 838 572 1,507 545 1,323 18,984 2,073 28,756 Substandard — 905 1,233 3,514 470 9,660 200 2,950 18,932 Total commercial, industrial and agricultural 960,233 70,293 40,806 24,241 14,888 40,637 364,413 11,636 1,527,147 Real estate construction and land loans: Pass 37,684 20,948 8,229 11,308 — 1,701 — — 79,870 Watch — — — 1,150 — 270 — — 1,420 Special mention — — 1,078 — — — — — 1,078 Substandard — — — — — 111 — — 111 Total real estate construction and land loans 37,684 20,948 9,307 12,458 — 2,082 — — 82,479 Installment/consumer loans Pass 1,656 215 166 93 — 710 17,382 1,257 21,479 Watch — — — — — — 496 40 536 Special mention — — — — — — — 46 46 Substandard — — — — — — 50 908 958 Total installment/consumer loans 1,656 215 166 93 — 710 17,928 2,251 23,019 Total Loans $ 1,478,560 $ 778,152 $ 344,823 $ 536,632 $ 298,865 $ 708,640 $ 436,376 $ 23,535 $ 4,605,583 December 31, 2019 (In thousands) Pass Special Mention Substandard Doubtful Total Commercial real estate: Owner occupied $ 511,444 $ 18,426 $ 1,218 $ — $ 531,088 Non-owner occupied 1,022,208 — 12,391 — 1,034,599 Multi-family 811,770 404 — — 812,174 Residential real estate 475,949 12,400 4,795 — 493,144 Commercial, industrial and agricultural 643,413 15,670 20,361 — 679,444 Real estate construction and land loans 95,530 — 1,781 — 97,311 Installment/consumer loans 23,976 103 757 — 24,836 Total loans $ 3,584,290 $ 47,003 $ 41,303 $ — $ 3,672,596 |
Schedule of the aging of the recorded investment in past due loans by class of loans | December 31, 2020 90+ Days Non-accrual 30-59 60-89 Past Due Including 90 Total Past Days Days And Days or More Due and (In thousands) Past Due Past Due Accruing Past Due Non-accrual Current Total Loans Commercial real estate: Owner occupied $ — $ — $ — $ 636 $ 636 $ 556,440 $ 557,076 Non-owner occupied — — — 6,771 6,771 1,074,672 1,081,443 Multi-family — — — — — 899,730 899,730 Residential real estate 3,567 949 — 2,897 7,413 427,276 434,689 Commercial, industrial and agricultural 2,711 4,072 — 1,597 8,380 1,518,767 1,527,147 Real estate construction and land loans 210 — — 111 321 82,158 82,479 Installment/consumer loans 100 4 — 150 254 22,765 23,019 Total loans $ 6,588 $ 5,025 $ — $ 12,162 $ 23,775 $ 4,581,808 $ 4,605,583 In the absence of other intervening factors, loans granted payment deferrals related to COVID-19 are not reported as past due or placed on non-accrual status provided the borrowers have met the criteria in the CARES Act or otherwise have met the criteria included in an interagency statement issued by bank regulatory agencies. During the year ended December 31, 2020, there was $93 thousand in interest earned on non-accrual loans and $406 thousand in accrued interest on non-accrual loans was reversed through interest income. December 31, 2019 90+ Days Non-accrual 30-59 60-89 Past Due Including 90 Total Past Days Days And Days or More Due and (In thousands) Past Due Past Due Accruing Past Due Non-accrual Current Total Loans Commercial real estate: Owner occupied $ 917 $ 433 $ — $ 225 $ 1,575 $ 529,513 $ 531,088 Non-owner occupied 98 — — 512 610 1,033,989 1,034,599 Multi-family — — — — — 812,174 812,174 Residential real estate 3,053 747 343 2,743 6,886 486,258 493,144 Commercial, industrial and agricultural 273 721 — 736 1,730 677,714 679,444 Real estate construction and land loans — — — 123 123 97,188 97,311 Installment/consumer loans 124 — — 30 154 24,682 24,836 Total loans $ 4,465 $ 1,901 $ 343 $ 4,369 $ 11,078 $ 3,661,518 $ 3,672,596 |
Schedule of loans receivable by class modified as troubled debt restructurings | Modifications During the Year Ended December 31, 2020 2019 2018 Pre- Post- Pre- Post- Pre- Post- Modification Modification Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Loans Investment Investment Loans Investment Investment Commercial real estate: Owner occupied — $ — $ — 3 $ 8,582 $ 8,582 — $ — $ — Non-owner occupied — — — — — — 1 926 926 Residential real estate — — — 1 338 338 1 644 644 Commercial, industrial and agricultural 3 1,138 1,138 15 12,828 12,828 10 7,649 7,649 Installment/consumer loans — — — — — — — — — Total 3 $ 1,138 $ 1,138 19 $ 21,748 $ 21,748 12 $ 9,219 $ 9,219 |
Schedule of individually impaired loans by class | December 31, 2019 Year Ended December 31, 2019 Unpaid Related Average Interest Recorded Principal Allocated Recorded Income (In thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial real estate: Owner occupied $ 3,379 $ 3,401 $ — $ 1,286 $ 41 Non-owner occupied 2,296 2,296 — 2,149 99 Residential real estate: Residential mortgages — — — — — Home equity 294 300 — 74 — Commercial, industrial and agricultural: Secured 494 494 — 287 18 Unsecured 8,863 8,863 — 6,601 411 Total with no related allowance recorded 15,326 15,354 — 10,397 569 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial, industrial and agricultural: Secured 9,612 9,612 3,435 6,189 223 Unsecured 2,045 2,051 1,241 1,838 86 Total with an allowance recorded 11,657 11,663 4,676 8,027 309 Total: Commercial real estate: Owner occupied 3,379 3,401 — 1,286 41 Non-owner occupied 2,296 2,296 — 2,149 99 Residential real estate: Residential mortgages — — — — — Home equity 294 300 — 74 — Commercial, industrial and agricultural: Secured 10,106 10,106 3,435 6,476 241 Unsecured 10,908 10,914 1,241 8,439 497 Total $ 26,983 $ 27,017 $ 4,676 $ 18,424 $ 878 December 31, 2018 Year Ended December 31, 2018 Unpaid Related Average Interest Recorded Principal Allocated Recorded Income (In thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial real estate: Owner occupied $ 268 $ 278 $ — $ 177 $ — Non-owner occupied 2,816 2,816 — 1,583 88 Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial, industrial and agricultural: Secured 8,234 8,234 — 5,644 196 Unsecured 5,316 5,316 — 5,127 284 Total with no related allowance recorded 16,634 16,644 — 12,531 568 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial, industrial and agricultural: Secured 2,721 2,721 189 2,757 91 Unsecured — — — — — Total with an allowance recorded 2,721 2,721 189 2,757 91 Total: Commercial real estate: Owner occupied 268 278 — 177 — Non-owner occupied 2,816 2,816 — 1,583 88 Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial, industrial and agricultural: Secured 10,955 10,955 189 8,401 287 Unsecured 5,316 5,316 — 5,127 284 Total $ 19,355 $ 19,365 $ 189 $ 15,288 $ 659 |
Schedule of selected information about related party loans | Year Ended December 31, (In thousands) 2020 Balance at beginning of period $ 12,349 New loans 724 Repayments (1,575) Balance at end of period $ 11,498 |
Schedule of allowance of credit losses | Year Ended December 31, 2020 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for credit losses: Beginning balance, prior to adoption of CECL $ 12,150 $ 4,829 $ 1,882 $ 12,583 $ 1,066 $ 276 $ 32,786 Impact of adopting CECL (7,712) (3,589) 2,182 8,699 1,274 771 1,625 Charge-offs (1) — — (2,004) — (7) (2,012) Recoveries — — 3 298 — — 301 Provision (credit) for credit losses 4,097 496 (1,005) 7,787 (165) 290 11,500 Ending balance $ 8,534 $ 1,736 $ 3,062 $ 27,363 $ 2,175 $ 1,330 $ 44,200 Year Ended December 31, 2019 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for credit losses: Beginning balance $ 10,792 $ 2,566 $ 3,935 $ 12,722 $ 1,297 $ 106 $ 31,418 Charge-offs (3,670) — — (799) — (13) (4,482) Recoveries 1 — 112 25 — 12 150 Provision (credit) for credit losses 5,027 2,263 (2,165) 635 (231) 171 5,700 Ending balance $ 12,150 $ 4,829 $ 1,882 $ 12,583 $ 1,066 $ 276 $ 32,786 Year Ended December 31, 2018 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for credit losses: Beginning balance $ 11,048 $ 4,521 $ 2,438 $ 12,838 $ 740 $ 122 $ 31,707 Charge-offs — — (24) (2,806) — (11) (2,841) Recoveries — — 3 747 — 2 752 (Credit) provision for credit losses (256) (1,955) 1,518 1,943 557 (7) 1,800 Ending balance $ 10,792 $ 2,566 $ 3,935 $ 12,722 $ 1,297 $ 106 $ 31,418 |
ASU 2016-13 | As previously reported | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of allowance of credit losses | December 31, 2019 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ 4,676 $ — $ — $ 4,676 Collectively evaluated for impairment 12,150 4,829 1,882 7,907 1,066 276 28,110 Loans acquired with deteriorated credit quality — — — — — — — Total allowance for loan losses $ 12,150 $ 4,829 $ 1,882 $ 12,583 $ 1,066 $ 276 $ 32,786 Loans: Individually evaluated for impairment $ 5,675 $ — $ 294 $ 21,014 $ — $ — $ 26,983 Collectively evaluated for impairment 1,560,012 812,174 492,507 658,430 97,311 24,836 3,645,270 Loans acquired with deteriorated credit quality — — 343 — — — 343 Total loans $ 1,565,687 $ 812,174 $ 493,144 $ 679,444 $ 97,311 $ 24,836 $ 3,672,596 |
PREMISES AND EQUIPMENT, NET (Ta
PREMISES AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PREMISES AND EQUIPMENT, NET | |
Schedule of components of premises and equipment | December 31, (In thousands) 2020 2019 Land $ 7,896 $ 7,896 Building and improvements 17,391 17,271 Furniture, fixtures and equipment 28,682 25,288 Leasehold improvements 13,355 12,356 67,324 62,811 Accumulated depreciation and amortization (32,452) (28,749) Total premises and equipment, net $ 34,872 $ 34,062 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
Summary of lease costs | Year Ended December 31, (In thousands) 2020 2019 Lease cost Operating lease cost $ 7,643 $ 7,038 Sublease income (37) (95) Total lease cost $ 7,606 $ 6,943 |
Summary of supplemental cash flow and balance sheet information related to operating leases | Year Ended December 31, (Dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 7,363 $ 7,019 Operating right-of-use assets obtained in exchange for lease liabilities $ 7,843 $ 48,101 December 31, 2020 December 31, 2019 Weighted-average remaining lease term-operating leases 7.6 years 7.8 years Weighted-average discount rate-operating leases (1) 2.91 % 3.20 % (1) The Company computes the present value of operating lease liabilities using its incremental borrowing rate as the discount rate. |
Summary of maturities of operating lease liabilities | (In thousands) December 31, 2020 2021 $ 7,387 2022 7,260 2023 6,548 2024 6,297 2025 6,177 Thereafter 18,649 Total operating lease payments $ 52,318 Less: Interest (5,605) Present value of operating lease liabilities $ 46,713 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of acquired intangible assets | December 31, 2020 2019 Gross Gross Carrying Accumulated Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Intangible assets subject to amortization: Core deposit intangibles $ 7,211 $ 5,769 $ 7,211 $ 5,113 Intangible assets not subject to amortization: Trademark 259 — 259 — Total intangible assets $ 7,470 $ 5,769 $ 7,470 $ 5,113 |
Schedule of estimated amortization expense | (In thousands) Total 2021 $ 530 2022 413 2023 281 2024 164 2025 54 Total $ 1,442 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DEPOSITS | |
Schedule of the remaining maturities of the Bank's time deposits | (In thousands) Total 2021 $ 238,117 2022 26,702 2023 14,258 2024 4,897 2025 4,265 Thereafter 206 Total $ 288,445 |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE. | |
Schedule of summary of information concerning the securities sold under agreements to repurchase | Year Ended December 31, (Dollars in thousands) 2020 2019 Average daily balance during the year $ 1,529 $ 849 Average interest rate during the year 0.05 % 0.05 % Maximum month-end balance during the year $ 1,943 $ 1,037 Weighted average interest rate at year-end 0.05 % 0.05 % |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FEDERAL HOME LOAN BANK ADVANCES. | |
Schedule of FHLB advances | Year Ended December 31, (Dollars in thousands) 2020 2019 Average daily balance during the year $ 284,719 $ 245,283 Average interest rate during the year 1.40 % 1.86 % Maximum month-end balance during the year $ 340,000 $ 435,000 Weighted average interest rate at year-end 0.35 % 1.82 % |
Schedule of contractual maturities and weighted average interest rates of FHLB advances | December 31, 2020 (Dollars in thousands) Weighted Contractual Maturity Amount Average Rate Overnight $ — — % 2021 215,000 0.35 Total FHLB advances $ 215,000 0.35 % December 31, 2019 (Dollars in thousands) Weighted Contractual Maturity Amount Average Overnight $ 195,000 1.81 % 2020 240,000 1.84 Total FHLB advances $ 435,000 1.82 % |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVES. | |
Schedule of information about the interest rate swap designated as a cash flow hedge | December 31, (Dollars in thousands) 2020 2019 Notional amounts $ 280,000 $ 290,000 Weighted average pay rates 1.33 % 1.84 % Weighted average receive rates 0.23 % 1.94 % Weighted average maturity 3.14 years 2.91 years |
Schedule of the net gains (losses) recorded, net of income tax, in accumulated other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments | Amount of gain (loss) Amount of gain reclassified from reclassified from Amount of (loss) gain Amount of (loss) gain Accumulated OCI Accumulated OCI (In thousands) recognized in OCI recognized in OCI into income into income Interest rate contracts included component excluded component included component excluded component Year ended December 31, 2020 $ (10,455) $ — $ (5,016) $ — Year ended December 31, 2019 (3,601) — 1,588 — Year ended December 31, 2018 2,493 — 1,068 — |
Schedule of cash flow hedge included in the Consolidated Balance Sheets | December 31, 2020 2019 Fair Fair Fair Fair (In thousands) Notional Value Value Notional Value Value Included in other assets/(liabilities): Amount Asset Liability Amount Asset Liability Interest rate swaps related to FHLB advances $ 215,000 $ — $ (6,651) $ 240,000 $ 1,233 $ (978) Forward starting interest rate swaps related to FHLB advances $ 65,000 $ 11 $ (222) $ 50,000 $ — $ (1,427) |
Schedule of information about interest rate swaps | December 31, (Dollars in thousands) 2020 2019 Notional amounts $ 1,097,100 $ 823,894 Weighted average pay rates 2.94 % 3.75 % Weighted average receive rates 2.94 % 3.75 % Weighted average maturity 10.02 years 10.77 years Fair value of combined interest rate swaps $ — $ — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of components of income tax expense | Year Ended December 31, (In thousands) 2020 2019 2018 Current: Federal $ 16,262 $ 12,665 $ 5,270 State 1,457 639 1,023 Total current 17,719 13,304 6,293 Deferred: Federal (3,782) (419) 3,299 State (252) 1,175 (451) Total deferred (4,034) 756 2,848 Total income tax expense $ 13,685 $ 14,060 $ 9,141 |
Schedule of reconciliation of the expected Federal income tax expense at the statutory tax rate to the actual provision | Year Ended December 31, 2020 2019 2018 Percentage Percentage Percentage of Pre-tax of Pre-tax of Pre-tax (Dollars in thousands) Amount Earnings Amount Earnings Amount Earnings Federal income tax expense computed by applying the statutory rate to income before income taxes $ 11,703 21 % $ 13,808 21 % $ 10,157 21 % Tax-exempt income (851) (1) (920) (1) (1,002) (2) State taxes, net of federal income tax benefit 1,214 2 1,425 2 1,999 4 Other 1,619 3 (253) (1) (2,013) (4) Income tax expense $ 13,685 25 % $ 14,060 21 % $ 9,141 19 % |
Schedule of components of deferred tax assets and liabilities | December 31, (In thousands) 2020 2019 Deferred tax assets: Allowance for credit losses and off-balance sheet credit exposure $ 13,983 $ 10,305 Net unrealized losses on securities — 343 Compensation and related benefit obligations 1,674 2,368 Net deferred loan costs and fees 2,588 — Purchase accounting fair value adjustments 3,574 4,735 Net change in pension and other post-retirement benefits plans 3,608 2,809 Net operating loss carryforward 786 3,229 Net loss on cash flow hedges 1,905 304 Operating lease liabilities 13,684 13,444 Other 1,234 200 Total deferred tax assets 43,036 37,737 Deferred tax liabilities: Pension and SERP expense (5,366) (4,904) Net unrealized gains on securities (1,285) — Depreciation (546) (956) REIT undistributed net income (3,178) (2,403) Net deferred loan costs and fees — (2,413) State and local taxes (1,345) (1,227) Operating lease right-of-use assets (13,172) (12,934) Other (970) (835) Total deferred tax liabilities (25,862) (25,672) Net deferred tax asset $ 17,174 $ 12,065 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PENSION AND OTHER POSTRETIREMENT PLANS. | |
Schedule of information about changes in obligations and plan assets of the defined benefit pension plan and the defined benefit plan component of the SERP | Pension Benefits SERP Benefits Year Ended December 31, Year Ended December 31, (In thousands) 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 28,757 $ 23,611 $ 5,323 $ 3,811 Service cost 940 952 371 261 Interest cost 794 908 149 147 Benefits paid and expected expenses (609) (475) (112) (112) Assumption changes and other 3,865 3,761 238 1,216 Benefit obligation at end of year $ 33,747 $ 28,757 $ 5,969 $ 5,323 Change in plan assets: Fair value of plan assets at beginning of year $ 39,745 $ 33,874 $ — $ — Actual return on plan assets 3,764 6,346 — — Employer contribution 1,160 — 112 112 Benefits paid and actual expenses (609) (475) (112) (112) Fair value of plan assets at end of year $ 44,060 $ 39,745 $ — $ — Funded status at end of year $ 10,313 $ 10,988 $ (5,969) $ (5,323) |
Schedule of amounts recognized in accumulated other comprehensive income | Pension Benefits SERP Benefits December 31, December 31, (In thousands) 2020 2019 2020 2019 Net actuarial loss $ 10,572 $ 7,997 $ 2,083 $ 2,071 Prior service cost (408) (484) — — Net amount recognized $ 10,164 $ 7,513 $ 2,083 $ 2,071 |
Schedule of net periodic benefit cost and other amounts recognized in other comprehensive income | Pension Benefits SERP Benefits Year Ended December 31, Year Ended December 31, (In thousands) 2020 2019 2018 2020 2019 2018 Components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: Service cost $ 940 $ 952 $ 1,106 $ 371 $ 261 $ 290 Interest cost 794 908 794 149 147 127 Expected return on plan assets (2,905) (2,445) (2,547) — — — Amortization of net loss 431 494 335 227 70 121 Amortization of prior service credit (77) (77) (77) — — — Amortization of transition obligation — — — — — 5 Net periodic benefit (credit) cost $ (817) $ (168) $ (389) $ 747 $ 478 $ 543 Net loss (gain) $ 3,006 $ (140) $ 1,980 $ 239 $ 1,216 $ (413) Amortization of net loss (431) (494) (335) (227) (70) (121) Amortization of prior service credit 77 77 77 — — — Amortization of transition obligation — — — — — (5) Total recognized in other comprehensive income $ 2,652 $ (557) $ 1,722 $ 12 $ 1,146 $ (539) |
Schedule of average assumptions used to determine benefit obligations and net periodic benefit cost | Pension Benefits SERP Benefits December 31, December 31, 2020 2019 2018 2020 2019 2018 Weighted average assumptions used to determine benefit obligations: Discount rate 2.33 % 3.10 % 4.14 % 2.28 % 3.08 % 4.13 % Rate of compensation increase 3.00 3.00 3.00 — 5.00 5.00 Weighted average assumptions used to determine net periodic benefit cost: Discount rate 3.10 % 4.14 % 3.52 % 3.08 % 4.13 % 3.50 % Rate of compensation increase 3.00 3.00 3.00 — 5.00 5.00 Expected long-term rate of return 7.25 7.25 7.25 — — — |
Schedule of target allocations for Plan assets | Weighted-Average- Target Percentage of Plan Assets Expected Long- Allocation At December 31, term Rate of Asset Category 2021 2020 2019 Return Cash equivalents 0 - 5 % 5.6 % 3.6 % — % Equity securities 45 - 65 56.8 57.9 9.5 Fixed income securities 30 - 50 37.6 38.5 5.0 Total 100.0 100.0 |
Schedule of the Plan's fair value hierarchy for its financial assets measured at fair value on a recurring basis | December 31, 2020 Fair Value Measurements Using: Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (Dollars in thousands) Value (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 2,452 $ — $ 2,452 $ — Equities: U.S. large cap 15,449 15,449 — — U.S. mid cap/small cap 3,471 3,471 — — International 6,029 6,029 — — Equities blend 74 74 — — Total equities 25,023 25,023 — — Fixed income securities: Corporate 1,853 1,853 — — Government 2,342 — 2,342 — Mortgage-backed 2,325 — 2,325 — High yield bonds and bond funds 10,065 — 10,065 — Total fixed income securities 16,585 1,853 14,732 — Total plan assets $ 44,060 $ 26,876 $ 17,184 $ — December 31, 2019 Fair Value Measurements Using: Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (Dollars in thousands) Value (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 1,444 $ — $ 1,444 $ — Equities: U.S. large cap 12,097 12,097 — — U.S. mid cap/small cap 4,195 4,195 — — International 6,320 6,320 — — Equities blend 414 414 — — Total equities 23,026 23,026 — — Fixed income securities: Corporate 2,024 2,024 — — Government 2,926 — 2,926 — Mortgage-backed 1,033 — 1,033 — High yield bonds and bond funds 9,292 — 9,292 — Total fixed income securities 15,275 2,024 13,251 — Total plan assets $ 39,745 $ 25,050 $ 14,695 $ — |
Schedule of payments, which reflect expected future service, expected to be paid | Pension and SERP Year (in thousands) 2021 $ 1,093 2022 1,180 2023 1,315 2024 1,318 2025 1,395 2026-2030 10,228 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of granted stock options, Black-Scholes option-pricing model assumptions | Year Ended December 31, 2020 2019 2018 Dividend yield 3.03 % 2.86 % 2.80 % Expected volatility 23.11 23.80 27.53 Risk-free interest rate 1.47 2.52 2.67 Expected option life 6.0 years 6.0 years 6.5 years |
Schedule of company's stock options | Weighted Weighted Average Number Average Remaining Aggregate of Exercise Contractual Intrinsic (Dollars in thousands, except per share amounts) Options Price Life Value Outstanding, January 1, 2020 110,660 $ 35.71 Granted 69,360 34.87 Outstanding, December 31, 2020 180,020 35.39 8.2 years $ — Vested and Exercisable, December 31, 2020 110,660 35.71 7.7 years — Number of Exercise Options Price 69,360 $ 34.87 63,267 35.35 47,393 36.19 180,020 |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of status of unvested restricted stock | Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2020 293,717 $ 30.37 Granted 91,428 31.02 Vested (289,509) 30.34 Forfeited (6,593) 32.16 Unvested, December 31, 2020 89,043 31.00 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of status of unvested restricted stock | Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2020 85,342 $ 29.59 Granted 26,556 32.13 Reinvested dividends 4,491 30.08 Added by performance factor 605 33.69 Forfeited (6,623) 28.68 Vested (72,096) 29.10 Unvested, December 31, 2020 38,275 32.57 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE. | |
Schedule of computation of EPS | Year Ended December 31, (In thousands, except per share data) 2020 2019 2018 Net income $ 42,042 $ 51,691 $ 39,227 Dividends paid on and earnings allocated to participating securities (872) (1,096) (853) Income attributable to common stock $ 41,170 $ 50,595 $ 38,374 Weighted average common shares outstanding, including participating securities 19,903 19,952 19,875 Weighted average participating securities (409) (424) (434) Weighted average common shares outstanding 19,494 19,528 19,441 Basic earnings per common share $ 2.11 $ 2.59 $ 1.97 Income attributable to common stock $ 41,170 $ 50,595 $ 38,374 Weighted average common shares outstanding 19,494 19,528 19,441 Incremental shares from assumed conversions of options and restricted stock units 55 31 27 Weighted average common and equivalent shares outstanding 19,549 19,559 19,468 Diluted earnings per common share $ 2.11 $ 2.59 $ 1.97 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS | |
Schedule of commitments outstanding | December 31, (In thousands) 2020 2019 Standby letters of credit $ 25,501 $ 23,670 Loan commitments outstanding (1) 150,515 117,044 Unused lines of credit 808,296 674,194 Total commitments outstanding $ 984,312 $ 814,908 (1) Of the $150.5 million of loan commitments outstanding at December 31, 2020, $5.1 million are fixed rate commitments and $145.4 million are variable rate commitments. Of the $117.0 million of loan commitments outstanding at December 31, 2019, $5.9 million are fixed rate commitments and $111.1 million are variable rate commitments. |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REGULATORY CAPITAL REQUIREMENTS | |
Schedule of the Company's and Bank's actual capital amounts and ratios | December 31, 2020 Minimum Capital Minimum To Be Well Minimum Capital Adequacy Requirement with Capitalized Under Prompt Actual Capital Adequacy Requirement Capital Conservation Buffer Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Common equity tier 1 capital to risk-weighted assets: Consolidated $ 424,652 10.3 % $ 185,479 4.5 % $ 288,523 7.0 % n/a n/a Bank 503,524 12.2 185,465 4.5 288,502 7.0 $ 267,895 6.5 % Total capital to risk-weighted assets: Consolidated 537,664 13.0 329,740 8.0 432,784 10.5 n/a n/a Bank 544,536 13.2 329,716 8.0 432,753 10.5 412,145 10.0 Tier 1 capital to risk-weighted assets: Consolidated 424,652 10.3 247,305 6.0 350,349 8.5 n/a n/a Bank 503,524 12.2 247,287 6.0 350,324 8.5 329,716 8.0 Tier 1 capital to average assets: Consolidated 424,652 6.8 249,502 4.0 n/a n/a n/a n/a Bank 503,524 8.1 249,389 4.0 n/a n/a 311,737 5.0 December 31, 2019 Minimum Capital Minimum To Be Well Minimum Capital Adequacy Requirement with Capitalized Under Prompt Actual Capital Adequacy Requirement Capital Conservation Buffer Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Common equity tier 1 capital to risk-weighted assets: Consolidated $ 397,800 10.2 % $ 176,121 4.5 % $ 273,967 7.0 % n/a n/a Bank 474,056 12.1 176,114 4.5 273,954 7.0 $ 254,386 6.5 % Total capital to risk-weighted assets: Consolidated 510,862 13.1 313,105 8.0 410,950 10.5 n/a n/a Bank 507,118 13.0 313,091 8.0 410,932 10.5 391,363 10.0 Tier 1 capital to risk-weighted assets: Consolidated 397,800 10.2 234,828 6.0 332,674 8.5 n/a n/a Bank 474,056 12.1 234,818 6.0 332,659 8.5 313,091 8.0 Tier 1 capital to average assets: Consolidated 397,800 8.5 187,386 4.0 n/a n/a n/a n/a Bank 474,056 10.1 187,377 4.0 n/a n/a 234,222 5.0 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | December 31, (In thousands) 2020 2019 Assets: Cash and cash equivalents $ 280 $ 3,663 Other assets 554 174 Investment in the Bank 596,703 573,410 Total assets $ 597,537 $ 577,247 Liabilities and stockholders’ equity: Subordinated debentures $ 79,059 $ 78,920 Other liabilities 647 1,173 Total liabilities 79,706 80,093 Total stockholders’ equity 517,831 497,154 Total liabilities and stockholders’ equity $ 597,537 $ 577,247 |
Schedule of condensed statements of income | Year Ended December 31, (In thousands) 2020 2019 2018 Dividends from the Bank $ 26,500 $ 24,500 $ 15,000 Interest expense 4,401 4,539 4,539 Non-interest expense 252 104 135 Income before income taxes and equity in undistributed earnings of the Bank 21,847 19,857 10,326 Income tax benefit (1,280) (994) (1,005) Income before equity in undistributed earnings of the Bank 23,127 20,851 11,331 Equity in undistributed earnings of the Bank 18,915 30,840 27,896 Net income $ 42,042 $ 51,691 $ 39,227 |
Schedule of condensed statements of cash flows | Year Ended December 31, (In thousands) 2020 2019 2018 Cash flows from operating activities: Net income $ 42,042 $ 51,691 $ 39,227 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of the Bank (18,915) (30,840) (27,896) Amortization 139 139 140 (Increase) decrease in other assets (379) (73) 108 (Decrease) increase in other liabilities (526) 39 11 Net cash provided by operating activities 22,361 20,956 11,590 Cash flows from financing activities: Net proceeds from issuance of common stock 1,267 1,102 1,017 Purchase of treasury stock (4,633) (625) — Repurchase of surrendered stock from vesting of stock plans (3,181) (887) (586) Cash dividends paid (19,197) (18,420) (18,342) Net cash used in financing activities (25,744) (18,830) (17,911) Net (decrease) increase in cash and cash equivalents (3,383) 2,126 (6,321) Cash and cash equivalents at beginning of year 3,663 1,537 7,858 Cash and cash equivalents at end of year $ 280 $ 3,663 $ 1,537 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Schedule of other comprehensive (loss) income and related income tax effects | Year Ended December 31, (In thousands) 2020 2019 2018 Unrealized holding gains (losses) on available for sale securities $ 9,069 $ 15,524 $ (8,429) Reclassification adjustments for (gains) losses realized in income (3,525) (201) 7,921 Income tax effect (1,628) (4,467) 160 Net change in unrealized gains (losses) on available for sale securities 3,916 10,856 (348) Unrealized net losses arising during the period (3,245) (1,076) (1,567) Reclassification adjustments for amortization realized in income 581 487 384 Income tax effect 799 179 351 Net change in post-retirement obligation (1,865) (410) (832) Change in fair value of derivatives used for cash flow hedges (10,455) (3,601) 2,493 Reclassification adjustments for losses (gains) realized in income 5,016 (1,588) (1,068) Income tax effect 1,601 1,514 (418) Net change in unrealized (losses) gains on cash flow hedges (3,838) (3,675) 1,007 Other comprehensive (loss) income $ (1,787) $ 6,771 $ (173) |
Schedule of accumulated other comprehensive (loss) income balances, net of income taxes | Other December 31, Comprehensive December 31, (In thousands) 2019 Income (Loss) 2020 Unrealized (losses) gains on available for sale securities $ (829) $ 3,916 $ 3,087 Unrealized losses on pension benefits (6,775) (1,865) (8,640) Unrealized losses on cash flow hedges (737) (3,838) (4,575) Accumulated other comprehensive loss, net of income taxes $ (8,341) $ (1,787) $ (10,128) |
Schedule of reclassifications out of accumulated other comprehensive (loss) income | Year Ended December 31, Affected Line Item in the (In thousands) 2020 2019 2018 Consolidated Statements of Income Realized gains (losses) on sale of available for sale securities $ 3,525 $ 201 $ (7,921) Net securities gains (losses) Amortization of defined benefit pension plan and defined benefit plan component of the SERP: Prior service credit 77 77 77 Other operating expenses Transition obligation — — (5) Other operating expenses Actuarial losses (658) (564) (456) Other operating expenses Realized (losses) gains on cash flow hedges (1,651) 1,588 1,068 Interest expense Realized loss on the termination of swaps (3,365) — — Loss on termination of swaps Total reclassifications, before income tax (2,072) 1,302 (7,237) Income tax benefit (expense) 606 (380) 2,105 Income tax expense Total reclassifications, net of income tax $ (1,466) $ 922 $ (5,132) |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
Schedule of Selected Consolidated Quarterly Financial Data | Selected Consolidated Quarterly Financial Data follows: 2020 Quarter Ended (In thousands, except per share amounts) March 31, June 30, September 30, December 31, Interest income $ 44,602 $ 45,850 $ 46,296 $ 47,484 Interest expense 7,952 5,418 5,589 4,492 Net interest income 36,650 40,432 40,707 42,992 Provision for credit losses 5,000 4,500 1,500 500 Net interest income after provision for credit losses 31,650 35,932 39,207 42,492 Non-interest income 5,217 2,252 6,790 5,444 Non-interest expense 24,843 24,399 28,937 (1) 35,078 (2) Income before income taxes 12,024 13,785 17,060 12,858 Income tax expense 2,676 3,129 3,999 3,881 Net income $ 9,348 $ 10,656 $ 13,061 $ 8,977 Basic earnings per share $ 0.47 $ 0.54 $ 0.66 $ 0.45 Diluted earnings per share $ 0.47 $ 0.54 $ 0.66 $ 0.45 2019 Quarter Ended (In thousands, except per share amounts) March 31, June 30, September 30, December 31, Interest income $ 44,515 $ 46,352 $ 46,354 $ 44,320 Interest expense 10,192 10,835 9,639 8,672 Net interest income 34,323 35,517 36,715 35,648 Provision for loan losses 600 3,500 1,000 600 Net interest income after provision for loan losses 33,723 32,017 35,715 35,048 Non-interest income 5,218 5,499 6,244 8,426 Non-interest expense 22,599 24,004 24,204 25,332 Income before income taxes 16,342 13,512 17,755 18,142 Income tax expense 3,415 2,859 3,852 3,934 Net income $ 12,927 $ 10,653 $ 13,903 $ 14,208 Basic earnings per share $ 0.65 $ 0.53 $ 0.70 $ 0.71 Diluted earnings per share $ 0.65 $ 0.53 $ 0.70 $ 0.71 (1) 2020 amount includes pre-tax merger expenses of $2.4 million. (2) 2020 amount includes pre-tax merger expenses of $2.1 million. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020USD ($)segment | Jan. 01, 2021USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Summary Of Accounting Policies [Line Items] | ||||||
Non-accrual debt securities | $ 0 | |||||
Accrued interest related to debt securities | $ 0 | |||||
Reasonable and supportable forecast, period | 2 years | |||||
Income Taxes | ||||||
Unrecognized Tax Benefits | $ 0 | $ 0 | ||||
Dividend Restriction | ||||||
Period from which net retained earnings are available for dividend payment from the Bank to the Parent Company | 2 years | |||||
Cash dividends paid to the Company | $ 26,500 | |||||
Segment Reporting | ||||||
Number of reportable operating segment | segment | 1 | |||||
Standards Effective in 2020 | ||||||
Allowance for credit losses | $ 44,200 | 32,786 | $ 31,418 | $ 31,707 | ||
Retained earnings | 172,075 | $ 150,703 | ||||
Forecast | ||||||
Dividend Restriction | ||||||
Dividends from Bank to the Company, available amount | $ 49,800 | |||||
ASU 2016-13 | Effect of adoption | ||||||
Standards Effective in 2020 | ||||||
Allowance for credit losses | 1,625 | $ 1,600 | ||||
Reserve for unfunded commitments | 500 | |||||
Retained earnings | $ 1,500 | $ 0 | ||||
Core deposit intangibles | ||||||
Summary Of Accounting Policies [Line Items] | ||||||
Core deposit intangible assets, useful life (in years) | 10 years | |||||
Buildings | ||||||
Summary Of Accounting Policies [Line Items] | ||||||
Useful life | 50 years | |||||
Equipment, computer hardware and software and furniture and fixtures | Minimum | ||||||
Summary Of Accounting Policies [Line Items] | ||||||
Useful life | 2 years | |||||
Equipment, computer hardware and software and furniture and fixtures | Maximum | ||||||
Summary Of Accounting Policies [Line Items] | ||||||
Useful life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans and Allowance for Loan Losses (Details) $ in Thousands | Dec. 31, 2019USD ($) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Balance of loans individually evaluated for impairment | $ 26,983 |
SECURITIES - Summary of Availab
SECURITIES - Summary of Available for Sale Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available for sale: | ||
Amortized Cost | $ 445,987 | $ 639,463 |
Gross Unrealized Gains | 6,775 | 4,225 |
Gross Unrealized Losses | (2,402) | (5,397) |
Estimated Fair Value | 450,360 | 638,291 |
U.S. Treasury securities | ||
Available for sale: | ||
Amortized Cost | 50,833 | |
Gross Unrealized Losses | (11) | |
Estimated Fair Value | 50,822 | |
U.S. GSE securities | ||
Available for sale: | ||
Amortized Cost | 5,000 | |
Gross Unrealized Losses | (5) | |
Estimated Fair Value | 4,995 | |
State and municipal obligations | ||
Available for sale: | ||
Amortized Cost | 40,448 | 34,303 |
Gross Unrealized Gains | 1,650 | 704 |
Gross Unrealized Losses | (10) | (43) |
Estimated Fair Value | 42,088 | 34,964 |
U.S. GSE residential mortgage-backed securities | ||
Available for sale: | ||
Amortized Cost | 111,398 | 84,550 |
Gross Unrealized Gains | 1,843 | 609 |
Gross Unrealized Losses | (6) | (468) |
Estimated Fair Value | 113,235 | 84,691 |
U.S. GSE residential collateralized mortgage obligations | ||
Available for sale: | ||
Amortized Cost | 127,369 | 278,149 |
Gross Unrealized Gains | 1,661 | 1,166 |
Gross Unrealized Losses | (226) | (1,464) |
Estimated Fair Value | 128,804 | 277,851 |
U.S. GSE commercial mortgage-backed securities | ||
Available for sale: | ||
Amortized Cost | 24,920 | 13,656 |
Gross Unrealized Gains | 140 | 23 |
Gross Unrealized Losses | (253) | (70) |
Estimated Fair Value | 24,807 | 13,609 |
U.S. GSE commercial collateralized mortgage obligations | ||
Available for sale: | ||
Amortized Cost | 61,102 | 102,722 |
Gross Unrealized Gains | 1,286 | 1,723 |
Gross Unrealized Losses | (52) | (289) |
Estimated Fair Value | 62,336 | 104,156 |
Other asset backed securities | ||
Available for sale: | ||
Amortized Cost | 24,250 | 24,250 |
Gross Unrealized Losses | (300) | (849) |
Estimated Fair Value | 23,950 | 23,401 |
Corporate | ||
Available for sale: | ||
Amortized Cost | 56,500 | 46,000 |
Gross Unrealized Gains | 195 | |
Gross Unrealized Losses | (1,555) | (2,198) |
Estimated Fair Value | $ 55,140 | $ 43,802 |
SECURITIES - Summary of Held to
SECURITIES - Summary of Held to Maturity Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Held to maturity: | ||
Amortized Cost | $ 85,700 | $ 133,638 |
Gross Unrealized Gains | 3,634 | 1,731 |
Gross Unrealized Losses | (9) | (342) |
Estimated Fair Value | 89,325 | 135,027 |
State and municipal obligations | ||
Held to maturity: | ||
Amortized Cost | 23,715 | 41,008 |
Gross Unrealized Gains | 1,406 | 809 |
Estimated Fair Value | 25,121 | 41,817 |
U.S. GSE residential mortgage-backed securities | ||
Held to maturity: | ||
Amortized Cost | 6,272 | 8,142 |
Gross Unrealized Gains | 227 | 5 |
Gross Unrealized Losses | (54) | |
Estimated Fair Value | 6,499 | 8,093 |
U.S. GSE residential collateralized mortgage obligations | ||
Held to maturity: | ||
Amortized Cost | 18,511 | 39,936 |
Gross Unrealized Gains | 489 | 624 |
Gross Unrealized Losses | (9) | (62) |
Estimated Fair Value | 18,991 | 40,498 |
U.S. GSE commercial mortgage-backed securities | ||
Held to maturity: | ||
Amortized Cost | 13,069 | 17,215 |
Gross Unrealized Gains | 625 | 102 |
Gross Unrealized Losses | (82) | |
Estimated Fair Value | 13,694 | 17,235 |
U.S. GSE commercial collateralized mortgage obligations | ||
Held to maturity: | ||
Amortized Cost | 24,133 | 27,337 |
Gross Unrealized Gains | 887 | 191 |
Gross Unrealized Losses | (144) | |
Estimated Fair Value | $ 25,020 | $ 27,384 |
SECURITIES - Total Available fo
SECURITIES - Total Available for Sale and Held to Maturity Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Total securities | ||
Amortized Cost | $ 531,687 | $ 773,101 |
Gross Unrealized Gains | 10,409 | 5,956 |
Gross Unrealized Losses | (2,411) | (5,739) |
Total securities | $ 539,685 | $ 773,318 |
SECURITIES - Available for Sale
SECURITIES - Available for Sale Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available for sale: | ||
Less than 12 months, Estimated Fair Value | $ 95,818 | $ 175,474 |
Less than 12 months, Gross Unrealized Losses | (614) | (778) |
Greater than 12 months, Estimated Fair Value | 33,120 | 214,908 |
Greater than 12 months, Gross Unrealized Losses | (1,788) | (4,619) |
U.S. Treasury securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 50,822 | |
Less than 12 months, Gross Unrealized Losses | (11) | |
U.S. GSE securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 0 | |
Less than 12 months, Gross Unrealized Losses | 0 | |
Greater than 12 months, Estimated Fair Value | 4,995 | |
Greater than 12 months, Gross Unrealized Losses | (5) | |
State and municipal obligations | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 5,310 | 4,982 |
Less than 12 months, Gross Unrealized Losses | (10) | (42) |
Greater than 12 months, Estimated Fair Value | 76 | |
Greater than 12 months, Gross Unrealized Losses | (1) | |
U.S. GSE residential mortgage-backed securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 2,935 | |
Less than 12 months, Gross Unrealized Losses | (30) | |
Greater than 12 months, Estimated Fair Value | 152 | 39,617 |
Greater than 12 months, Gross Unrealized Losses | (6) | (438) |
U.S. GSE residential collateralized mortgage obligations | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 55,832 | 81,377 |
Less than 12 months, Gross Unrealized Losses | (226) | (480) |
Greater than 12 months, Estimated Fair Value | 93,403 | |
Greater than 12 months, Gross Unrealized Losses | (984) | |
U.S. GSE commercial mortgage-backed securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 14,994 | 6,648 |
Less than 12 months, Gross Unrealized Losses | (253) | (70) |
Greater than 12 months, Estimated Fair Value | 0 | |
Greater than 12 months, Gross Unrealized Losses | 0 | |
U.S. GSE commercial collateralized mortgage obligations | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 11,755 | 28,710 |
Less than 12 months, Gross Unrealized Losses | (52) | (145) |
Greater than 12 months, Estimated Fair Value | 9,614 | |
Greater than 12 months, Gross Unrealized Losses | (144) | |
Other asset backed securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 0 | |
Less than 12 months, Gross Unrealized Losses | 0 | |
Greater than 12 months, Estimated Fair Value | 3,450 | 23,401 |
Greater than 12 months, Gross Unrealized Losses | (300) | (849) |
Corporate | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 7,927 | 0 |
Less than 12 months, Gross Unrealized Losses | (73) | 0 |
Greater than 12 months, Estimated Fair Value | 29,518 | 43,802 |
Greater than 12 months, Gross Unrealized Losses | $ (1,482) | $ (2,198) |
SECURITIES - Held to Maturity S
SECURITIES - Held to Maturity Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Held to maturity: | |
Less than 12 months, Estimated Fair Value | $ 19,788 |
Less than 12 months, Gross Unrealized losses | (74) |
Greater than 12 months, Estimated Fair Value | 22,707 |
Greater than 12 months, Gross Unrealized losses | (268) |
U.S. GSE residential mortgage-backed securities | |
Held to maturity: | |
Less than 12 months, Estimated Fair Value | 0 |
Less than 12 months, Gross Unrealized losses | 0 |
Greater than 12 months, Estimated Fair Value | 7,268 |
Greater than 12 months, Gross Unrealized losses | (54) |
U.S. GSE residential collateralized mortgage obligations | |
Held to maturity: | |
Less than 12 months, Estimated Fair Value | 6,750 |
Less than 12 months, Gross Unrealized losses | (17) |
Greater than 12 months, Estimated Fair Value | 6,105 |
Greater than 12 months, Gross Unrealized losses | (45) |
U.S. GSE commercial mortgage-backed securities | |
Held to maturity: | |
Less than 12 months, Estimated Fair Value | 0 |
Less than 12 months, Gross Unrealized losses | 0 |
Greater than 12 months, Estimated Fair Value | 5,034 |
Greater than 12 months, Gross Unrealized losses | (82) |
U.S. GSE commercial collateralized mortgage obligations | |
Held to maturity: | |
Less than 12 months, Estimated Fair Value | 13,038 |
Less than 12 months, Gross Unrealized losses | (57) |
Greater than 12 months, Estimated Fair Value | 4,300 |
Greater than 12 months, Gross Unrealized losses | $ (87) |
SECURITIES - Available for Sa_2
SECURITIES - Available for Sale Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost, Available for sale: | ||
Within one year | $ 4,131 | |
One to five years | 58,608 | |
Five to ten years | 38,415 | |
Beyond ten years | 344,833 | |
Total | 445,987 | $ 639,463 |
Estimated Fair Value, Available for sale: | ||
Within one year | 4,116 | |
One to five years | 58,861 | |
Five to ten years | 38,597 | |
Beyond ten years | 348,786 | |
Estimated Fair Value | 450,360 | 638,291 |
U.S. Treasury securities | ||
Amortized Cost, Available for sale: | ||
Total | 50,833 | |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 50,822 | |
U.S. GSE securities | ||
Amortized Cost, Available for sale: | ||
Total | 5,000 | |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 4,995 | |
State and municipal obligations | ||
Amortized Cost, Available for sale: | ||
Total | 40,448 | 34,303 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 42,088 | 34,964 |
U.S. GSE residential mortgage-backed securities | ||
Amortized Cost, Available for sale: | ||
Total | 111,398 | 84,550 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 113,235 | 84,691 |
U.S. GSE residential collateralized mortgage obligations | ||
Amortized Cost, Available for sale: | ||
Total | 127,369 | 278,149 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 128,804 | 277,851 |
U.S. GSE commercial mortgage-backed securities | ||
Amortized Cost, Available for sale: | ||
Total | 24,920 | 13,656 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 24,807 | 13,609 |
U.S. GSE commercial collateralized mortgage obligations | ||
Amortized Cost, Available for sale: | ||
Total | 61,102 | 102,722 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 62,336 | 104,156 |
Other asset backed securities | ||
Amortized Cost, Available for sale: | ||
Total | 24,250 | 24,250 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 23,950 | 23,401 |
Corporate | ||
Amortized Cost, Available for sale: | ||
Total | 56,500 | 46,000 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | $ 55,140 | $ 43,802 |
SECURITIES - Held to Maturity I
SECURITIES - Held to Maturity Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost, Held to maturity: | ||
Within one year | $ 1,885 | |
One to five years | 23,140 | |
Five to ten years | 11,535 | |
Beyond ten years | 49,140 | |
Total | 85,700 | $ 133,638 |
Estimated Fair Value, Held to maturity: | ||
Within one year | 1,902 | |
One to five years | 24,452 | |
Five to ten years | 12,144 | |
Beyond ten years | 50,827 | |
Estimated Fair Value | 89,325 | 135,027 |
State and municipal obligations | ||
Amortized Cost, Held to maturity: | ||
Total | 23,715 | 41,008 |
Estimated Fair Value, Held to maturity: | ||
Estimated Fair Value | 25,121 | 41,817 |
U.S. GSE residential mortgage-backed securities | ||
Amortized Cost, Held to maturity: | ||
Total | 6,272 | 8,142 |
Estimated Fair Value, Held to maturity: | ||
Estimated Fair Value | 6,499 | 8,093 |
U.S. GSE residential collateralized mortgage obligations | ||
Amortized Cost, Held to maturity: | ||
Total | 18,511 | 39,936 |
Estimated Fair Value, Held to maturity: | ||
Estimated Fair Value | 18,991 | 40,498 |
U.S. GSE commercial mortgage-backed securities | ||
Amortized Cost, Held to maturity: | ||
Total | 13,069 | 17,215 |
Estimated Fair Value, Held to maturity: | ||
Estimated Fair Value | 13,694 | 17,235 |
U.S. GSE commercial collateralized mortgage obligations | ||
Amortized Cost, Held to maturity: | ||
Total | 24,133 | 27,337 |
Estimated Fair Value, Held to maturity: | ||
Estimated Fair Value | $ 25,020 | $ 27,384 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
OTTI, Sales and Calls, Pledged, Trading and Restricted Securities | |||
Number of securities in unrealized loss position | security | 0 | ||
Debt securities available for sale, allowance of credit losses | $ 0 | ||
Allowance for credit losses | $ 0 | ||
Guaranteed portion of student loan backed bonds | student loan backed bonds, which are guaranteed by the U.S. Department of Education for 97% to 100% of principal | ||
Credit support for student loan backed bonds description | the bonds have credit support of 3% to 5% | ||
Proceeds from sales of securities available for sale | $ 152,980 | $ 46,478 | $ 230,372 |
Gross gains realized on sale of securities available for sale | 4,300 | 200 | |
Gross losses realized on sale of securities available for sale | 800 | (7,900) | |
Debt and Equity Securities, Gain (Loss) | 3,525 | 201 | (7,921) |
Proceeds from calls of securities | 14,900 | 20,300 | $ 3,300 |
Fair value of securities pledged to secure public deposits and FHLB and FRB overnight borrowings | 402,800 | 402,200 | |
Trading securities | $ 0 | $ 0 | |
Threshold for disclosure percentage | 10.00% | 10.00% | |
Amount owned in FHLB, ACBB and FRB stock | $ 23,362 | $ 32,879 | |
Other Assets | |||
OTTI, Sales and Calls, Pledged, Trading and Restricted Securities | |||
Accrued interest receivable on securities | $ 1,400 |
FAIR VALUE - Summary of Assets
FAIR VALUE - Summary of Assets and Liabilities measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets measured at fair value on recurring basis | ||
Available for sale securities | $ 450,360 | $ 638,291 |
Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 450,360 | 638,291 |
Financial Assets: Derivatives | 49,662 | 15,437 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 56,417 | 16,645 |
Fair Value | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 450,360 | 638,291 |
Financial Assets: Derivatives | 49,662 | 15,437 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 56,417 | 16,645 |
U.S. Treasury securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 50,822 | |
U.S. GSE securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 4,995 | |
State and municipal obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 42,088 | 34,964 |
U.S. GSE residential mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 113,235 | 84,691 |
U.S. GSE residential collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 128,804 | 277,851 |
U.S. GSE commercial mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 24,807 | 13,609 |
U.S. GSE commercial collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 62,336 | 104,156 |
Other asset backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 23,950 | 23,401 |
Corporate | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 55,140 | 43,802 |
Significant Other Observable Inputs (Level 2) | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 450,360 | 638,291 |
Financial Assets: Derivatives | 49,662 | 15,437 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 56,417 | 16,645 |
Recurring basis | Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 450,360 | 638,291 |
Recurring basis | U.S. Treasury securities | Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 50,822 | |
Recurring basis | U.S. GSE securities | Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 4,995 | |
Recurring basis | State and municipal obligations | Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 42,088 | 34,964 |
Recurring basis | U.S. GSE residential mortgage-backed securities | Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 113,235 | 84,691 |
Recurring basis | U.S. GSE residential collateralized mortgage obligations | Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 128,804 | 277,851 |
Recurring basis | U.S. GSE commercial mortgage-backed securities | Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 24,807 | 13,609 |
Recurring basis | U.S. GSE commercial collateralized mortgage obligations | Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 62,336 | 104,156 |
Recurring basis | Other asset backed securities | Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 23,950 | 23,401 |
Recurring basis | Corporate | Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 55,140 | 43,802 |
Recurring basis | Derivatives | Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Financial Assets: Derivatives | 49,662 | 15,437 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 56,417 | 16,645 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 450,360 | 638,291 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 50,822 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 4,995 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 42,088 | 34,964 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE residential mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 113,235 | 84,691 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE residential collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 128,804 | 277,851 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE commercial mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 24,807 | 13,609 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE commercial collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 62,336 | 104,156 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Other asset backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 23,950 | 23,401 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 55,140 | 43,802 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivatives | ||
Assets measured at fair value on recurring basis | ||
Financial Assets: Derivatives | 49,662 | 15,437 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | $ 56,417 | $ 16,645 |
FAIR VALUE - Summary of Asset_2
FAIR VALUE - Summary of Assets and Liabilities measured on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | $ 52,800 | $ 12,600 |
Other real estate owned | 0 | |
Carrying Amount | ||
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | 52,785 | 12,643 |
Fair Value | ||
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | 52,785 | 12,643 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | 42,785 | |
Significant Unobservable Inputs (Level 3) | ||
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | 10,000 | 12,643 |
Non-recurring basis | Carrying Amount | ||
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | 52,785 | 12,643 |
Individually evaluated loans | 2,940 | |
Impaired loans | 6,981 | |
Non-recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | Fair Value | ||
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | 42,785 | |
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Fair Value | ||
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | 10,000 | 12,643 |
Individually evaluated loans | $ 2,940 | |
Impaired loans | $ 6,981 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Additional provision for loan losses | $ 500 | $ 1,500 | $ 4,500 | $ 5,000 | $ 600 | $ 1,000 | $ 3,500 | $ 600 | $ 11,500 | $ 5,700 | $ 1,800 |
Assets measured at fair value on non-recurring basis | |||||||||||
Outstanding balance of impaired loans with an allowance recorded | 11,657 | 11,657 | 2,721 | ||||||||
Valuation allowance on impaired loans | 4,676 | 4,676 | $ 189 | ||||||||
Loans held for sale | 52,800 | 12,600 | 52,800 | 12,600 | |||||||
Other Real Estate | 0 | 0 | |||||||||
Real estate owned additional provision | 0 | 0 | |||||||||
Non-recurring basis | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Additional provision for loan losses | 2,600 | ||||||||||
Assets measured at fair value on non-recurring basis | |||||||||||
Outstanding balance of impaired loans with an allowance recorded | 9,600 | 11,700 | 9,600 | 11,700 | |||||||
Valuation allowance on impaired loans | 6,700 | 4,700 | 6,700 | 4,700 | |||||||
Carrying Amount | |||||||||||
Assets measured at fair value on non-recurring basis | |||||||||||
Loans held for sale | 52,785 | 12,643 | 52,785 | 12,643 | |||||||
Carrying Amount | Non-recurring basis | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Carrying amount of impaired loans | 6,981 | 6,981 | |||||||||
Individually evaluated commercial and industrial loans | 2,940 | 2,940 | |||||||||
Assets measured at fair value on non-recurring basis | |||||||||||
Valuation allowance on impaired loans | 2,900 | 0 | 2,900 | 0 | |||||||
Loans held for sale | $ 52,785 | $ 12,643 | $ 52,785 | $ 12,643 |
FAIR VALUE - Summary of Estimat
FAIR VALUE - Summary of Estimated Fair Values and Carrying Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Cash and due from banks | $ 107,729 | $ 77,693 |
Interest-bearing deposits with banks | 769,099 | 39,501 |
Securities available for sale | 450,360 | 638,291 |
Securities held to maturity | 89,325 | 135,027 |
Loans held for sale | 52,800 | 12,600 |
Accrued interest receivable | 16,566 | 10,908 |
Financial liabilities: | ||
Certificates of deposit | 288,445 | |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 107,729 | 77,693 |
Interest-bearing deposits with banks | 769,099 | 39,501 |
Securities available for sale | 450,360 | 638,291 |
Securities restricted | 23,362 | 32,879 |
Securities held to maturity | 85,700 | 133,638 |
Loans held for sale | 52,785 | 12,643 |
Loans, net | 4,553,203 | 3,647,499 |
Derivatives | 49,662 | 15,437 |
Accrued interest receivable | 16,566 | 10,908 |
Financial liabilities: | ||
Certificates of deposit | 288,445 | 307,977 |
Demand and other deposits | 5,200,808 | 3,506,670 |
FHLB advances | 215,000 | 435,000 |
Repurchase agreements | 1,223 | 999 |
Subordinated debentures | 79,059 | 78,920 |
Derivatives | 56,417 | 16,645 |
Accrued interest payable | 881 | 1,467 |
Fair Value | ||
Financial assets: | ||
Cash and due from banks | 107,729 | 77,693 |
Interest-bearing deposits with banks | 769,099 | 39,501 |
Securities available for sale | 450,360 | 638,291 |
Securities held to maturity | 89,325 | 135,027 |
Loans held for sale | 52,785 | 12,643 |
Loans, net | 4,554,333 | 3,685,770 |
Derivatives | 49,662 | 15,437 |
Accrued interest receivable | 16,566 | 10,908 |
Financial liabilities: | ||
Certificates of deposit | 290,971 | 308,660 |
Demand and other deposits | 5,200,808 | 3,506,670 |
FHLB advances | 221,665 | 434,622 |
Repurchase agreements | 1,223 | 999 |
Subordinated debentures | 86,704 | 81,010 |
Derivatives | 56,417 | 16,645 |
Accrued interest payable | 881 | 1,467 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and due from banks | 107,729 | 77,693 |
Interest-bearing deposits with banks | 769,099 | 39,501 |
Loans held for sale | 42,785 | |
Loans, net | 0 | |
Financial liabilities: | ||
Demand and other deposits | 5,200,808 | 3,506,670 |
FHLB advances | 195,000 | |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available for sale | 450,360 | 638,291 |
Securities held to maturity | 89,325 | 135,027 |
Loans, net | 0 | |
Derivatives | 49,662 | 15,437 |
Accrued interest receivable | 1,421 | 2,181 |
Financial liabilities: | ||
Certificates of deposit | 290,971 | 308,660 |
FHLB advances | 221,665 | 239,622 |
Repurchase agreements | 1,223 | 999 |
Subordinated debentures | 86,704 | 81,010 |
Derivatives | 56,417 | 16,645 |
Accrued interest payable | 881 | 1,467 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Loans held for sale | 10,000 | 12,643 |
Loans, net | 4,554,333 | 3,685,770 |
Accrued interest receivable | $ 15,145 | $ 8,727 |
LOANS - Major Classifications o
LOANS - Major Classifications of Loans (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2020USD ($)family | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Classifications of loans | ||||||
Total loans | $ 4,605,583 | $ 3,672,596 | ||||
Net deferred loan (fees) costs | (8,180) | 7,689 | ||||
Total loans held for investment | 4,597,403 | 3,680,285 | ||||
Allowance for credit losses | (44,200) | (32,786) | $ (31,418) | $ (31,707) | ||
Loans, net | 4,553,203 | 3,647,499 | ||||
Accrued interest receivable | 16,566 | 10,908 | ||||
Loans held for sale | 52,800 | 12,600 | ||||
Decrease in loan held for sale | (2,877) | |||||
Other Assets | ||||||
Classifications of loans | ||||||
Accrued interest receivable | 15,100 | 8,700 | ||||
Commercial Real Estate | Mortgage loans | ||||||
Classifications of loans | ||||||
Total loans | 1,565,687 | |||||
Allowance for credit losses | (8,534) | (12,150) | (10,792) | (11,048) | ||
Loans held for investment to loans held for sale and written down | $ 16,300 | |||||
Loans held for sale | 12,600 | 10,000 | 12,600 | |||
Mortgage loan, charge-off recognized | $ 3,700 | |||||
Lending Risk | ||||||
Loan amount beyond which annual financial information is sought | 1,000 | |||||
Owner occupied | ||||||
Classifications of loans | ||||||
Total loans | 557,076 | 531,088 | ||||
Non-owner occupied | ||||||
Classifications of loans | ||||||
Total loans | 1,081,443 | 1,034,599 | ||||
Multi-family | ||||||
Classifications of loans | ||||||
Total loans | 812,174 | |||||
Allowance for credit losses | (1,736) | (4,829) | (2,566) | (4,521) | ||
Multi-family | Mortgage loans | ||||||
Classifications of loans | ||||||
Total loans | $ 899,730 | 812,174 | ||||
Lending Risk | ||||||
Number of families having income producing residential investment properties | family | 5 | |||||
Residential Real Estate Loans | ||||||
Classifications of loans | ||||||
Total loans | $ 434,689 | 493,144 | ||||
Residential Real Estate Loans | Mortgage loans | ||||||
Classifications of loans | ||||||
Total loans | 434,689 | 493,144 | ||||
Allowance for credit losses | (3,062) | (1,882) | (3,935) | (2,438) | ||
Commercial, industrial and agricultural: | ||||||
Classifications of loans | ||||||
Total loans | 1,527,147 | 679,444 | ||||
Allowance for credit losses | (27,363) | (12,583) | (12,722) | (12,838) | ||
Real estate construction and land loans | ||||||
Classifications of loans | ||||||
Total loans | 82,479 | 97,311 | ||||
Allowance for credit losses | (2,175) | (1,066) | (1,297) | (740) | ||
Installment/consumer loans | ||||||
Classifications of loans | ||||||
Total loans | 23,019 | 24,836 | ||||
Allowance for credit losses | (1,330) | (276) | $ (106) | $ (122) | ||
Leveraged lending portfolio | ||||||
Classifications of loans | ||||||
Leveraged lending portfolio disposed | 43,000 | |||||
Mortgage loan, charge-off recognized | 42,800 | |||||
Decrease in loan held for sale | $ 234 | |||||
Maximum | Multi-family | Mortgage loans | ||||||
Lending Risk | ||||||
Loan-to-value ratio (as a percent) | 75.00% | |||||
Home equity | Minimum | Residential Real Estate Loans | Mortgage loans | ||||||
Lending Risk | ||||||
Loan-to-value ratio (as a percent) | 80.00% | |||||
Paycheck Protection Program | ||||||
Classifications of loans | ||||||
Loans, net | $ 844,700 | |||||
Carrying Amount | ||||||
Classifications of loans | ||||||
Accrued interest receivable | 16,566 | 10,908 | ||||
Loans held for sale | $ 52,785 | $ 12,643 | ||||
Mortgage loan, charge-off recognized | $ 10,000 | |||||
Decrease in loan held for sale | $ 2,600 |
LOANS - Categorized by Internal
LOANS - Categorized by Internally Assigned Risk Grades (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans by class categorized by internally assigned risk grades | ||
Total loans | $ 4,605,583 | $ 3,672,596 |
2020 | 1,478,560 | |
2019 | 778,152 | |
2018 | 344,823 | |
2017 | 536,632 | |
2016 | 298,865 | |
2015 and prior | 708,640 | |
Revolving | 436,376 | |
Revolving Term | 23,535 | |
Total | 4,605,583 | |
Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 3,584,290 | |
Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 47,003 | |
Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 41,303 | |
Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Commercial Real Estate | Mortgage loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,565,687 | |
Commercial Real Estate | Mortgage loans | Owner occupied | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 557,076 | 531,088 |
2020 | 95,092 | |
2019 | 98,605 | |
2018 | 59,137 | |
2017 | 87,914 | |
2016 | 32,526 | |
2015 and prior | 183,802 | |
Total | 557,076 | |
Commercial Real Estate | Mortgage loans | Owner occupied | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 511,444 | |
2020 | 92,053 | |
2019 | 96,679 | |
2018 | 47,224 | |
2017 | 66,320 | |
2016 | 25,852 | |
2015 and prior | 153,766 | |
Total | 481,894 | |
Commercial Real Estate | Mortgage loans | Owner occupied | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
2020 | 727 | |
2019 | 1,373 | |
2018 | 8,038 | |
2017 | 10,737 | |
2016 | 3,425 | |
2015 and prior | 23,919 | |
Total | 48,219 | |
Commercial Real Estate | Mortgage loans | Owner occupied | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 18,426 | |
2020 | 1,843 | |
2018 | 3,875 | |
2017 | 10,857 | |
2016 | 823 | |
2015 and prior | 4,600 | |
Total | 21,998 | |
Commercial Real Estate | Mortgage loans | Owner occupied | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,218 | |
2020 | 469 | |
2019 | 553 | |
2016 | 2,426 | |
2015 and prior | 1,517 | |
Total | 4,965 | |
Commercial Real Estate | Mortgage loans | Owner occupied | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Commercial Real Estate | Mortgage loans | Non-owner occupied | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,081,443 | 1,034,599 |
2020 | 189,125 | |
2019 | 257,482 | |
2018 | 120,931 | |
2017 | 201,358 | |
2016 | 72,499 | |
2015 and prior | 240,048 | |
Total | 1,081,443 | |
Commercial Real Estate | Mortgage loans | Non-owner occupied | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,022,208 | |
2020 | 181,811 | |
2019 | 249,782 | |
2018 | 108,086 | |
2017 | 180,235 | |
2016 | 54,252 | |
2015 and prior | 214,620 | |
Total | 988,786 | |
Commercial Real Estate | Mortgage loans | Non-owner occupied | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
2020 | 7,314 | |
2019 | 7,700 | |
2018 | 12,845 | |
2017 | 12,117 | |
2016 | 12,209 | |
2015 and prior | 24,089 | |
Total | 76,274 | |
Commercial Real Estate | Mortgage loans | Non-owner occupied | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
2015 and prior | 290 | |
Total | 290 | |
Commercial Real Estate | Mortgage loans | Non-owner occupied | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 12,391 | |
2017 | 9,006 | |
2016 | 6,038 | |
2015 and prior | 1,049 | |
Total | 16,093 | |
Commercial Real Estate | Mortgage loans | Non-owner occupied | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Multi-family | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 812,174 | |
2020 | 174,737 | |
2019 | 296,476 | |
2018 | 40,840 | |
2017 | 113,598 | |
2016 | 154,822 | |
2015 and prior | 119,257 | |
Total | 899,730 | |
Multi-family | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
2020 | 159,301 | |
2019 | 293,752 | |
2018 | 40,840 | |
2017 | 86,169 | |
2016 | 118,846 | |
2015 and prior | 106,044 | |
Total | 804,952 | |
Multi-family | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
2020 | 15,436 | |
2019 | 2,724 | |
2017 | 19,331 | |
2016 | 35,976 | |
2015 and prior | 12,825 | |
Total | 86,292 | |
Multi-family | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
2017 | 8,098 | |
2015 and prior | 388 | |
Total | 8,486 | |
Multi-family | Mortgage loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 899,730 | 812,174 |
Multi-family | Mortgage loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 811,770 | |
Multi-family | Mortgage loans | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 404 | |
Multi-family | Mortgage loans | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Multi-family | Mortgage loans | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Residential Real Estate Loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 434,689 | 493,144 |
2020 | 20,033 | |
2019 | 34,133 | |
2018 | 73,636 | |
2017 | 96,970 | |
2016 | 24,130 | |
2015 and prior | 122,104 | |
Revolving | 54,035 | |
Revolving Term | 9,648 | |
Total | 434,689 | |
Residential Real Estate Loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 475,949 | |
2020 | 20,033 | |
2019 | 32,564 | |
2018 | 71,903 | |
2017 | 95,712 | |
2016 | 23,589 | |
2015 and prior | 106,518 | |
Revolving | 53,217 | |
Revolving Term | 7,012 | |
Total | 410,548 | |
Residential Real Estate Loans | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
2018 | 406 | |
2017 | 321 | |
2016 | 541 | |
2015 and prior | 1,740 | |
Revolving Term | 1,145 | |
Total | 4,153 | |
Residential Real Estate Loans | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 12,400 | |
2019 | 1,103 | |
2018 | 758 | |
2015 and prior | 6,879 | |
Revolving | 818 | |
Revolving Term | 633 | |
Total | 10,191 | |
Residential Real Estate Loans | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 4,795 | |
2019 | 466 | |
2018 | 569 | |
2017 | 937 | |
2015 and prior | 6,967 | |
Revolving Term | 858 | |
Total | 9,797 | |
Residential Real Estate Loans | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Residential Real Estate Loans | Mortgage loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 434,689 | 493,144 |
Commercial, industrial and agricultural: | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,527,147 | 679,444 |
2020 | 960,233 | |
2019 | 70,293 | |
2018 | 40,806 | |
2017 | 24,241 | |
2016 | 14,888 | |
2015 and prior | 40,637 | |
Revolving | 364,413 | |
Revolving Term | 11,636 | |
Total | 1,527,147 | |
Commercial, industrial and agricultural: | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 643,413 | |
2020 | 949,257 | |
2019 | 62,410 | |
2018 | 30,736 | |
2017 | 17,646 | |
2016 | 12,685 | |
2015 and prior | 26,606 | |
Revolving | 304,781 | |
Revolving Term | 5,086 | |
Total | 1,409,207 | |
Commercial, industrial and agricultural: | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
2020 | 8,062 | |
2019 | 6,140 | |
2018 | 8,265 | |
2017 | 1,574 | |
2016 | 1,188 | |
2015 and prior | 3,048 | |
Revolving | 40,448 | |
Revolving Term | 1,527 | |
Total | 70,252 | |
Commercial, industrial and agricultural: | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 15,670 | |
2020 | 2,914 | |
2019 | 838 | |
2018 | 572 | |
2017 | 1,507 | |
2016 | 545 | |
2015 and prior | 1,323 | |
Revolving | 18,984 | |
Revolving Term | 2,073 | |
Total | 28,756 | |
Commercial, industrial and agricultural: | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 20,361 | |
2019 | 905 | |
2018 | 1,233 | |
2017 | 3,514 | |
2016 | 470 | |
2015 and prior | 9,660 | |
Revolving | 200 | |
Revolving Term | 2,950 | |
Total | 18,932 | |
Commercial, industrial and agricultural: | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Real estate construction and land loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 82,479 | 97,311 |
2020 | 37,684 | |
2019 | 20,948 | |
2018 | 9,307 | |
2017 | 12,458 | |
2015 and prior | 2,082 | |
Total | 82,479 | |
Real estate construction and land loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 95,530 | |
2020 | 37,684 | |
2019 | 20,948 | |
2018 | 8,229 | |
2017 | 11,308 | |
2015 and prior | 1,701 | |
Total | 79,870 | |
Real estate construction and land loans | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
2017 | 1,150 | |
2015 and prior | 270 | |
Total | 1,420 | |
Real estate construction and land loans | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
2018 | 1,078 | |
Total | 1,078 | |
Real estate construction and land loans | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,781 | |
2015 and prior | 111 | |
Total | 111 | |
Real estate construction and land loans | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Installment/consumer loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 23,019 | 24,836 |
2020 | 1,656 | |
2019 | 215 | |
2018 | 166 | |
2017 | 93 | |
2015 and prior | 710 | |
Revolving | 17,928 | |
Revolving Term | 2,251 | |
Total | 23,019 | |
Installment/consumer loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 23,976 | |
2020 | 1,656 | |
2019 | 215 | |
2018 | 166 | |
2017 | 93 | |
2015 and prior | 710 | |
Revolving | 17,382 | |
Revolving Term | 1,257 | |
Total | 21,479 | |
Installment/consumer loans | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
Revolving | 496 | |
Revolving Term | 40 | |
Total | 536 | |
Installment/consumer loans | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 103 | |
Revolving Term | 46 | |
Total | 46 | |
Installment/consumer loans | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 757 | |
Revolving | 50 | |
Revolving Term | 908 | |
Total | $ 958 | |
Installment/consumer loans | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | $ 0 |
LOANS - Past Due and Nonaccrual
LOANS - Past Due and Nonaccrual Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | $ 0 | $ 343 |
Nonaccrual Including 90 Days or More Past Due | 12,162 | 4,369 |
Total Past Due and Nonaccrual | 23,775 | 11,078 |
Current | 4,581,808 | 3,661,518 |
Total Loans | 4,605,583 | 3,672,596 |
Interest earned on non-accrual loans | 93 | |
Accrued interest on non-accrual loans | 406 | |
30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 6,588 | 4,465 |
60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 5,025 | 1,901 |
Commercial Real Estate | Mortgage loans | ||
Past Due and Nonaccrual Loans | ||
Total Loans | 1,565,687 | |
Commercial Real Estate | Mortgage loans | Owner occupied | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 636 | 225 |
Total Past Due and Nonaccrual | 636 | 1,575 |
Current | 556,440 | 529,513 |
Total Loans | 557,076 | 531,088 |
Commercial Real Estate | Mortgage loans | Owner occupied | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 917 |
Commercial Real Estate | Mortgage loans | Owner occupied | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 433 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 6,771 | 512 |
Total Past Due and Nonaccrual | 6,771 | 610 |
Current | 1,074,672 | 1,033,989 |
Total Loans | 1,081,443 | 1,034,599 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 98 |
Multi-family | ||
Past Due and Nonaccrual Loans | ||
Total Loans | 812,174 | |
Multi-family | Mortgage loans | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 0 |
Current | 899,730 | 812,174 |
Total Loans | 899,730 | 812,174 |
Multi-family | Mortgage loans | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 0 |
Multi-family | Mortgage loans | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 0 |
Residential Real Estate Loans | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 343 |
Nonaccrual Including 90 Days or More Past Due | 2,897 | 2,743 |
Total Past Due and Nonaccrual | 7,413 | 6,886 |
Current | 427,276 | 486,258 |
Total Loans | 434,689 | 493,144 |
Residential Real Estate Loans | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 3,567 | 3,053 |
Residential Real Estate Loans | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 949 | 747 |
Residential Real Estate Loans | Mortgage loans | ||
Past Due and Nonaccrual Loans | ||
Total Loans | 434,689 | 493,144 |
Commercial, industrial and agricultural: | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 1,597 | 736 |
Total Past Due and Nonaccrual | 8,380 | 1,730 |
Current | 1,518,767 | 677,714 |
Total Loans | 1,527,147 | 679,444 |
Commercial, industrial and agricultural: | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 2,711 | 273 |
Commercial, industrial and agricultural: | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 4,072 | 721 |
Real estate construction and land loans | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 111 | 123 |
Total Past Due and Nonaccrual | 321 | 123 |
Current | 82,158 | 97,188 |
Total Loans | 82,479 | 97,311 |
Real estate construction and land loans | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 210 | 0 |
Real estate construction and land loans | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 0 |
Installment/consumer loans | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 150 | 30 |
Total Past Due and Nonaccrual | 254 | 154 |
Current | 22,765 | 24,682 |
Total Loans | 23,019 | 24,836 |
Installment/consumer loans | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 100 | 124 |
Installment/consumer loans | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | $ 4 | $ 0 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings (Details) $ in Thousands | Jan. 21, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($)item | Dec. 31, 2020USD ($)itemloan | Dec. 31, 2019USD ($)itemloan | Dec. 31, 2018USD ($)itemloan |
Troubled Debt Restructurings | ||||||
Number of Loans | loan | 3 | 19 | 12 | |||
Pre-Modification Outstanding Recorded Investment | $ 1,138 | $ 21,748 | $ 9,219 | |||
Post-Modification Outstanding Recorded Investment | $ 1,138 | 21,748 | 9,219 | |||
Period of modified contractually past due loans to be considered as payment default | 30 days | |||||
Charge offs relating to TDRs | $ 1,700 | $ 100 | $ 400 | |||
Number of loans modified as TDRs for which there was a payment default within twelve months following the modification | item | 1 | 2 | 1 | |||
Nonaccrual TDRs loans | $ 346 | $ 405 | ||||
Increase (decrease) in non accrual troubled debt restructuring | $ 2,700 | |||||
Amount of performing TDR loans | 22,200 | 26,300 | ||||
Post-Modification of other than TDRs, recorded investment | $ 191,100 | |||||
Payment deferral | ||||||
Troubled Debt Restructurings | ||||||
Number of loans granted payment moratoriums, COVID-19 | item | 500 | |||||
Loans granted payment moratoriums, COVID-19 | $ 635,000 | |||||
Loans and leases receivable deferral term, COVID-19 | 3 months | |||||
Payment deferral | Forecast | ||||||
Troubled Debt Restructurings | ||||||
Loans granted payment moratoriums, COVID-19 | $ 76,100 | |||||
Settlement Agreement | ||||||
Troubled Debt Restructurings | ||||||
Charge offs relating to TDRs | $ 1,300 | |||||
Settlement agreement, payments received | $ 1,400 | |||||
Secured | ||||||
Troubled Debt Restructurings | ||||||
Nonaccrual TDRs loans | $ 216 | |||||
Number of non-accrual TDRs | item | 1 | |||||
Unsecured | ||||||
Troubled Debt Restructurings | ||||||
Nonaccrual TDRs loans | $ 130 | |||||
Number of non-accrual TDRs | item | 1 | 3 | ||||
Commercial Real Estate | Owner occupied | ||||||
Troubled Debt Restructurings | ||||||
Number of Loans | item | 3 | |||||
Pre-Modification Outstanding Recorded Investment | $ 8,582 | |||||
Post-Modification Outstanding Recorded Investment | $ 8,582 | |||||
Commercial Real Estate | Non-owner occupied | ||||||
Troubled Debt Restructurings | ||||||
Number of Loans | item | 1 | |||||
Pre-Modification Outstanding Recorded Investment | $ 926 | |||||
Post-Modification Outstanding Recorded Investment | $ 926 | |||||
Residential Real Estate Loans | ||||||
Troubled Debt Restructurings | ||||||
Number of Loans | item | 1 | 1 | ||||
Pre-Modification Outstanding Recorded Investment | $ 338 | $ 644 | ||||
Post-Modification Outstanding Recorded Investment | $ 338 | $ 644 | ||||
Commercial, industrial and agricultural: | ||||||
Troubled Debt Restructurings | ||||||
Number of Loans | item | 3 | 15 | 10 | |||
Pre-Modification Outstanding Recorded Investment | $ 1,138 | $ 12,828 | $ 7,649 | |||
Post-Modification Outstanding Recorded Investment | $ 1,138 | 12,828 | $ 7,649 | |||
Taxi medallion loans | ||||||
Troubled Debt Restructurings | ||||||
Post-Modification Outstanding Recorded Investment | $ 1,100 |
LOANS - Collateral Dependent Lo
LOANS - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated loans | $ 26,983 | |
Individually evaluated loans, related allowance for credit losses | 4,676 | |
Commercial, industrial and agricultural: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated loans | 21,014 | |
Individually evaluated loans, related allowance for credit losses | $ 4,676 | |
Commercial, industrial and agricultural: | Collateral Dependent Loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated loans | $ 9,600 | |
Individually evaluated loans, related allowance for credit losses | 6,700 | |
Commercial Real Estate | Collateral Dependent Loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated loans | 10,800 | |
Individually evaluated loans, related allowance for credit losses | $ 0 |
LOANS - Impaired Loans (prior t
LOANS - Impaired Loans (prior to the adoption of Topic 326) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
LOANS. | |||
Individually impaired loans | $ 18,424 | $ 15,288 | |
Impaired loans | $ 1,138 | $ 21,748 | $ 9,219 |
LOANS - Impaired Loans (Details
LOANS - Impaired Loans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | |
Impaired loans | |||
Post-Modification Outstanding Recorded Investment | $ 1,138 | $ 21,748 | $ 9,219 |
Recorded Investment | |||
With no related allowance recorded | 15,326 | 16,634 | |
With an allowance recorded | 11,657 | 2,721 | |
Total impaired loans | 26,983 | 19,355 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 15,354 | 16,644 | |
With an allowance recorded | 11,663 | 2,721 | |
Total impaired loans | 27,017 | 19,365 | |
Related Allocated Allowance | |||
With an allowance recorded | 4,676 | 189 | |
Total impaired loans | 4,676 | 189 | |
Average Recorded Investment | |||
With no related allowance recorded | 10,397 | 12,531 | |
With an allowance recorded | 8,027 | 2,757 | |
Average recorded investment in impaired loans | 18,424 | 15,288 | |
Interest Income Recognized | |||
With no related allowance recorded | 569 | 568 | |
With an allowance recorded | 309 | 91 | |
Total impaired loans | $ 878 | $ 659 | |
Other real estate | $ 0 | ||
Number of loans modified as TDRs for which there was a payment default within twelve months following the modification | item | 1 | 2 | 1 |
Commercial Real Estate | Owner occupied | |||
Impaired loans | |||
Post-Modification Outstanding Recorded Investment | $ 8,582 | ||
Recorded Investment | |||
With no related allowance recorded | 3,379 | $ 268 | |
Total impaired loans | 3,379 | 268 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 3,401 | 278 | |
Total impaired loans | 3,401 | 278 | |
Average Recorded Investment | |||
With no related allowance recorded | 1,286 | 177 | |
Average recorded investment in impaired loans | 1,286 | 177 | |
Interest Income Recognized | |||
With no related allowance recorded | 41 | ||
Total impaired loans | 41 | ||
Commercial Real Estate | Non-owner occupied | |||
Impaired loans | |||
Post-Modification Outstanding Recorded Investment | 926 | ||
Recorded Investment | |||
With no related allowance recorded | 2,296 | 2,816 | |
Total impaired loans | 2,296 | 2,816 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 2,296 | 2,816 | |
Total impaired loans | 2,296 | 2,816 | |
Average Recorded Investment | |||
With no related allowance recorded | 2,149 | 1,583 | |
Average recorded investment in impaired loans | 2,149 | 1,583 | |
Interest Income Recognized | |||
With no related allowance recorded | 99 | 88 | |
Total impaired loans | 99 | 88 | |
Residential Real Estate Loans | |||
Impaired loans | |||
Post-Modification Outstanding Recorded Investment | 338 | 644 | |
Residential Real Estate Loans | Home equity | |||
Recorded Investment | |||
With no related allowance recorded | 294 | ||
Total impaired loans | 294 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 300 | ||
Total impaired loans | 300 | ||
Average Recorded Investment | |||
With no related allowance recorded | 74 | ||
Average recorded investment in impaired loans | 74 | ||
Residential Real Estate Loans | Secured | |||
Recorded Investment | |||
With no related allowance recorded | 8,234 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 8,234 | ||
Average Recorded Investment | |||
With no related allowance recorded | 5,644 | ||
Interest Income Recognized | |||
With no related allowance recorded | 196 | ||
Residential Real Estate Loans | Unsecured | |||
Recorded Investment | |||
With no related allowance recorded | 5,316 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 5,316 | ||
Average Recorded Investment | |||
With no related allowance recorded | 5,127 | ||
Interest Income Recognized | |||
With no related allowance recorded | 284 | ||
Commercial, industrial and agricultural: | |||
Impaired loans | |||
Post-Modification Outstanding Recorded Investment | $ 1,138 | 12,828 | 7,649 |
Commercial, industrial and agricultural: | Secured | |||
Recorded Investment | |||
With no related allowance recorded | 494 | ||
With an allowance recorded | 9,612 | 2,721 | |
Total impaired loans | 10,106 | 10,955 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 494 | ||
With an allowance recorded | 9,612 | 2,721 | |
Total impaired loans | 10,106 | 10,955 | |
Related Allocated Allowance | |||
With an allowance recorded | 3,435 | 189 | |
Total impaired loans | 3,435 | 189 | |
Average Recorded Investment | |||
With no related allowance recorded | 287 | ||
With an allowance recorded | 6,189 | 2,757 | |
Average recorded investment in impaired loans | 6,476 | 8,401 | |
Interest Income Recognized | |||
With no related allowance recorded | 18 | ||
With an allowance recorded | 223 | 91 | |
Total impaired loans | 241 | 287 | |
Commercial, industrial and agricultural: | Unsecured | |||
Recorded Investment | |||
With no related allowance recorded | 8,863 | ||
With an allowance recorded | 2,045 | ||
Total impaired loans | 10,908 | 5,316 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 8,863 | ||
With an allowance recorded | 2,051 | ||
Total impaired loans | 10,914 | 5,316 | |
Related Allocated Allowance | |||
With an allowance recorded | 1,241 | ||
Total impaired loans | 1,241 | ||
Average Recorded Investment | |||
With no related allowance recorded | 6,601 | ||
With an allowance recorded | 1,838 | ||
Average recorded investment in impaired loans | 8,439 | 5,127 | |
Interest Income Recognized | |||
With no related allowance recorded | 411 | ||
With an allowance recorded | 86 | ||
Total impaired loans | 497 | $ 284 | |
Taxi medallion loans | |||
Impaired loans | |||
Post-Modification Outstanding Recorded Investment | 1,100 | ||
Non-recurring basis | |||
Recorded Investment | |||
With an allowance recorded | 9,600 | 11,700 | |
Related Allocated Allowance | |||
With an allowance recorded | 6,700 | 4,700 | |
Non-recurring basis | Carrying Amount | |||
Related Allocated Allowance | |||
With an allowance recorded | 2,900 | 0 | |
Non-recurring basis | Carrying Amount | Other real estate owned | |||
Interest Income Recognized | |||
Other real estate | $ 0 | $ 0 |
LOANS - Related Party Loans (De
LOANS - Related Party Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Selected information about related party loans | |
Balance at beginning of period | $ 12,349 |
New loans | 724 |
Repayments | (1,575) |
Balance at end of period | $ 11,498 |
LOANS - Changes in the Allowanc
LOANS - Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Loan Losses | |||||||||||
Beginning balance | $ 32,786 | $ 31,418 | $ 32,786 | $ 31,418 | $ 31,707 | ||||||
Charge-offs | (2,012) | (4,482) | (2,841) | ||||||||
Recoveries | 301 | 150 | 752 | ||||||||
Provision for credit losses | $ 500 | $ 1,500 | $ 4,500 | 5,000 | $ 600 | $ 1,000 | $ 3,500 | 600 | 11,500 | 5,700 | 1,800 |
Ending balance | 44,200 | 32,786 | 44,200 | 32,786 | 31,418 | ||||||
Commercial Real Estate | Mortgage loans | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning balance | 12,150 | 10,792 | 12,150 | 10,792 | 11,048 | ||||||
Charge-offs | (1) | (3,670) | |||||||||
Recoveries | 1 | ||||||||||
Provision for credit losses | 4,097 | 5,027 | (256) | ||||||||
Ending balance | 8,534 | 12,150 | 8,534 | 12,150 | 10,792 | ||||||
Multi-family | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning balance | 4,829 | 2,566 | 4,829 | 2,566 | 4,521 | ||||||
Provision for credit losses | 496 | 2,263 | (1,955) | ||||||||
Ending balance | 1,736 | 4,829 | 1,736 | 4,829 | 2,566 | ||||||
Residential Real Estate Loans | Mortgage loans | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning balance | 1,882 | 3,935 | 1,882 | 3,935 | 2,438 | ||||||
Charge-offs | (24) | ||||||||||
Recoveries | 3 | 112 | 3 | ||||||||
Provision for credit losses | (1,005) | (2,165) | 1,518 | ||||||||
Ending balance | 3,062 | 1,882 | 3,062 | 1,882 | 3,935 | ||||||
Commercial, industrial and agricultural: | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning balance | 12,583 | 12,722 | 12,583 | 12,722 | 12,838 | ||||||
Charge-offs | (2,004) | (799) | (2,806) | ||||||||
Recoveries | 298 | 25 | 747 | ||||||||
Provision for credit losses | 7,787 | 635 | 1,943 | ||||||||
Ending balance | 27,363 | 12,583 | 27,363 | 12,583 | 12,722 | ||||||
Real estate construction and land loans | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning balance | 1,066 | 1,297 | 1,066 | 1,297 | 740 | ||||||
Provision for credit losses | (165) | (231) | 557 | ||||||||
Ending balance | 2,175 | 1,066 | 2,175 | 1,066 | 1,297 | ||||||
Installment/consumer loans | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning balance | $ 276 | $ 106 | 276 | 106 | 122 | ||||||
Charge-offs | (7) | (13) | (11) | ||||||||
Recoveries | 12 | 2 | |||||||||
Provision for credit losses | 290 | 171 | (7) | ||||||||
Ending balance | 1,330 | $ 276 | 1,330 | $ 276 | $ 106 | ||||||
Effect of adoption | ASU 2016-13 | |||||||||||
Allowance for Loan Losses | |||||||||||
Ending balance | 1,625 | 1,625 | |||||||||
Effect of adoption | Commercial Real Estate | Mortgage loans | ASU 2016-13 | |||||||||||
Allowance for Loan Losses | |||||||||||
Ending balance | (7,712) | (7,712) | |||||||||
Effect of adoption | Multi-family | ASU 2016-13 | |||||||||||
Allowance for Loan Losses | |||||||||||
Ending balance | (3,589) | (3,589) | |||||||||
Effect of adoption | Residential Real Estate Loans | Mortgage loans | ASU 2016-13 | |||||||||||
Allowance for Loan Losses | |||||||||||
Ending balance | 2,182 | 2,182 | |||||||||
Effect of adoption | Commercial, industrial and agricultural: | ASU 2016-13 | |||||||||||
Allowance for Loan Losses | |||||||||||
Ending balance | 8,699 | 8,699 | |||||||||
Effect of adoption | Real estate construction and land loans | ASU 2016-13 | |||||||||||
Allowance for Loan Losses | |||||||||||
Ending balance | 1,274 | 1,274 | |||||||||
Effect of adoption | Installment/consumer loans | ASU 2016-13 | |||||||||||
Allowance for Loan Losses | |||||||||||
Ending balance | $ 771 | $ 771 |
LOANS - Balances in Allowance f
LOANS - Balances in Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | $ 4,676 | |||
Collectively evaluated for impairment | 28,110 | |||
Total Allowance for Loan Losses | $ 44,200 | 32,786 | $ 31,418 | $ 31,707 |
Loans: | ||||
Individually evaluated for impairment | 26,983 | |||
Collectively evaluated for impairment | 3,645,270 | |||
Loans acquired with deteriorated credit quality | 343 | |||
Total Loans | 4,605,583 | 3,672,596 | ||
Commercial Real Estate | Mortgage loans | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 12,150 | |||
Total Allowance for Loan Losses | 8,534 | 12,150 | 10,792 | 11,048 |
Loans: | ||||
Individually evaluated for impairment | 5,675 | |||
Collectively evaluated for impairment | 1,560,012 | |||
Total Loans | 1,565,687 | |||
Multi-family | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 4,829 | |||
Total Allowance for Loan Losses | 1,736 | 4,829 | 2,566 | 4,521 |
Loans: | ||||
Collectively evaluated for impairment | 812,174 | |||
Total Loans | 812,174 | |||
Multi-family | Mortgage loans | ||||
Loans: | ||||
Total Loans | 899,730 | 812,174 | ||
Residential Real Estate Loans | ||||
Loans: | ||||
Total Loans | 434,689 | 493,144 | ||
Residential Real Estate Loans | Mortgage loans | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 1,882 | |||
Total Allowance for Loan Losses | 3,062 | 1,882 | 3,935 | 2,438 |
Loans: | ||||
Individually evaluated for impairment | 294 | |||
Collectively evaluated for impairment | 492,507 | |||
Loans acquired with deteriorated credit quality | 343 | |||
Total Loans | 434,689 | 493,144 | ||
Commercial, industrial and agricultural: | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 4,676 | |||
Collectively evaluated for impairment | 7,907 | |||
Total Allowance for Loan Losses | 27,363 | 12,583 | 12,722 | 12,838 |
Loans: | ||||
Individually evaluated for impairment | 21,014 | |||
Collectively evaluated for impairment | 658,430 | |||
Total Loans | 1,527,147 | 679,444 | ||
Real estate construction and land loans | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 1,066 | |||
Total Allowance for Loan Losses | 2,175 | 1,066 | 1,297 | 740 |
Loans: | ||||
Collectively evaluated for impairment | 97,311 | |||
Total Loans | 82,479 | 97,311 | ||
Installment/consumer loans | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 276 | |||
Total Allowance for Loan Losses | 1,330 | 276 | $ 106 | $ 122 |
Loans: | ||||
Collectively evaluated for impairment | 24,836 | |||
Total Loans | $ 23,019 | $ 24,836 |
PREMISES AND EQUIPMENT, NET - C
PREMISES AND EQUIPMENT, NET - Components of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
PREMISES AND EQUIPMENT, NET | ||
Land | $ 7,896 | $ 7,896 |
Building and improvements | 17,391 | 17,271 |
Furniture, fixtures and equipment | 28,682 | 25,288 |
Leasehold improvements | 13,355 | 12,356 |
Premises and equipment, gross | 67,324 | 62,811 |
Accumulated depreciation and amortization | (32,452) | (28,749) |
Total premises and equipment, net | $ 34,872 | $ 34,062 |
PREMISES AND EQUIPMENT, NET - D
PREMISES AND EQUIPMENT, NET - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PREMISES AND EQUIPMENT, NET | |||
Depreciation and amortization of premises and equipment | $ 4,319 | $ 4,253 | $ 3,822 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease cost | ||
Operating lease cost | $ 7,643 | $ 7,038 |
Sublease income | (37) | (95) |
Total lease cost | 7,606 | 6,943 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | 7,363 | 7,019 |
Operating right-of-use assets obtained in exchange for lease liabilities | $ 7,843 | $ 48,101 |
Weighted-average remaining lease term-operating leases | 7 years 7 months 6 days | 7 years 9 months 18 days |
Weighted-average discount rate-operating leases | 2.91% | 3.20% |
Renewal options | true | |
Minimum | ||
Lease cost | ||
Renewal term | 5 years | |
Maximum | ||
Lease cost | ||
Renewal term | 10 years |
LEASES - Maturities of operatin
LEASES - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of operating lease liabilities | ||
2021 | $ 7,387 | |
2022 | 7,260 | |
2023 | 6,548 | |
2024 | 6,297 | |
2025 | 6,177 | |
Thereafter | 18,649 | |
Total operating lease payments | 52,318 | |
Less: Interest | (5,605) | |
Present value of operating lease liabilities | $ 46,713 | $ 45,977 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Goodwill | ||
Goodwill carrying amount | $ 105,950 | $ 105,950 |
Number of reporting unit | item | 1 | |
Core deposit intangibles, a trademark, and servicing assets | $ 1,700 | $ 1,300 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired intangible assets: | |||
Aggregate amortization expense | $ 700 | $ 800 | $ 900 |
Intangible assets | |||
Carrying amount of the Company's trademark | 259 | 259 | |
Acquired intangible assets | |||
Acquired intangible assets: | |||
Gross Carrying Amount | 7,470 | 7,470 | |
Aggregate amortization expense | 5,769 | 5,113 | |
Core deposit intangibles | |||
Acquired intangible assets: | |||
Gross Carrying Amount | 7,211 | 7,211 | |
Aggregate amortization expense | 5,769 | 5,113 | |
Trademark | |||
Acquired intangible assets: | |||
Gross Carrying Amount | $ 259 | $ 259 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expense for Next Five Years (Details) $ in Thousands | Dec. 31, 2020USD ($) |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
2021 | $ 530 |
2022 | 413 |
2023 | 281 |
2024 | 164 |
2025 | 54 |
Total | $ 1,442 |
DEPOSITS (Details)
DEPOSITS (Details) $ in Thousands | Dec. 31, 2020USD ($) |
DEPOSITS | |
2021 | $ 238,117 |
2022 | 26,702 |
2023 | 14,258 |
2024 | 4,897 |
2025 | 4,265 |
Thereafter | 206 |
Time Deposits, Total | $ 288,445 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Time deposits | ||
Deposits from principal officers, directors and their affiliates | $ 25 | $ 16.7 |
$250,000 or Greater | ||
Time deposits | ||
Deposits in excess of the FDIC limit | $ 121.8 | $ 129.6 |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) - Securities sold under agreement to repurchase - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Securities sold under agreements to repurchase | ||
Average daily balance during the year | $ 1,529 | $ 849 |
Average interest rate during the year (as a percent) | 0.05% | 0.05% |
Maximum month-end balance during the year | $ 1,943 | $ 1,037 |
Weighted average interest rate at year-end (as a percent) | 0.05% | 0.05% |
SECURITIES SOLD UNDER AGREEME_4
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Securities sold under agreements to repurchase | ||
Repurchase agreements | $ 1,223 | $ 999 |
Carrying amount of U.S. GSE residential collateralized mortgage obligations and U.S. GSE residential mortgage-backed securities | 2,200 | $ 2,100 |
First quarter of 2021 | ||
Securities sold under agreements to repurchase | ||
Repurchase agreements | $ 1,200 | |
U.S. GSE residential collateralized mortgage obligations | ||
Securities sold under agreements to repurchase | ||
Percentage of investment securities held as collateral | 34.00% | 17.00% |
U.S. GSE residential mortgage-backed securities | ||
Securities sold under agreements to repurchase | ||
Percentage of investment securities held as collateral | 66.00% | 83.00% |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
FEDERAL HOME LOAN BANK ADVANCES. | ||
Average daily balance during the year | $ 284,719 | $ 245,283 |
Average interest rate during the year (as a percent) | 1.40% | 1.86% |
Maximum month-end balance during the year | $ 340,000 | $ 435,000 |
Weighted average interest rate at year-end (as a percent) | 0.35% | 1.82% |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES - Contractual Maturities and Weighted Average Interest Rates of FHLB Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Contractual Maturity, Amount | ||
Overnight | $ 195,000 | |
Due within a year | $ 215,000 | 240,000 |
Total FHLB advances | $ 215,000 | $ 435,000 |
Weighted Average Rate | ||
Overnight (as a percent) | 1.81% | |
Weighted Average Rate (as a percent) | 0.35% | 1.84% |
Weighted Average Rate for total FHLB advances (as a percent) | 0.35% | 1.82% |
FEDERAL HOME LOAN BANK ADVANC_5
FEDERAL HOME LOAN BANK ADVANCES - Narrative (Details) - USD ($) $ in Billions | Dec. 31, 2020 | Dec. 31, 2019 |
FEDERAL HOME LOAN BANK ADVANCES. | ||
Advances collateralized amount | $ 1.7 | $ 1.4 |
Maximum borrowing amount from FHLB term advances | 1.9 | |
FHLB advances with contractual maturities after 2021 | $ 0 |
SUBORDINATED DEBENTURES (Detail
SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Fixed-to-floating rate subordinated debentures | $ 80,000 | $ 80,000 | ||
Subordinated debentures, net | $ 79,059 | $ 78,920 | ||
Subordinated Debentures | Callable Notes After Five Years | ||||
Debt Instrument [Line Items] | ||||
Fixed-to-floating rate subordinated debentures | $ 40,000 | $ 40,000 | ||
Debt Instrument, Term | 5 years | |||
Fixed annual interest rate | 5.25% | 5.25% | ||
Debt instrument variable rate description | three-month LIBOR | |||
Basis points | 3.60% | |||
Subordinated Debentures | Callable Notes After Ten Years | ||||
Debt Instrument [Line Items] | ||||
Fixed-to-floating rate subordinated debentures | $ 40,000 | $ 40,000 | ||
Debt Instrument, Term | 10 years | |||
Fixed annual interest rate | 5.75% | 5.75% | ||
Debt instrument variable rate description | three-month LIBOR | |||
Basis points | 3.45% |
DERIVATIVES - Interest Rate Swa
DERIVATIVES - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives | ||
Notional amounts | $ 1,100,000 | $ 823,900 |
Interest rate swaps | Derivative designated as a cash flow hedge | ||
Derivatives | ||
Notional amounts | $ 280,000 | $ 290,000 |
Weighted average pay rates (as a percent) | 1.33% | 1.84% |
Weighted average receive rates (as a percent) | 0.23% | 1.94% |
Weighted average maturity | 3 years 1 month 20 days | 2 years 10 months 28 days |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |||
Notional amounts | $ 1,100,000 | $ 823,900 | |
Derivative liability position net | 0 | ||
Derivative asset position net | 57,100 | ||
Collateral received against obligations in net asset position | 57,900 | ||
Collateral posted in net liability position | 0 | ||
Derivative designated as a cash flow hedge | Amount Reclassified from Accumulated Other Comprehensiven (loss) Income | |||
Derivative [Line Items] | |||
Accelerated reclassification, loss from other comprehensive income to earnings as a result of the hedged forecasted transactions becoming probable not to occur | 3,400 | ||
Interest rate swaps | Derivative designated as a cash flow hedge | |||
Derivative [Line Items] | |||
Notional amounts | 280,000 | 290,000 | |
Notional amount terminated | $ 125,000 | ||
Derivative, number of terminations | contract | 4 | ||
Loss on termination of swaps, reported in non-interest income | $ 3,400 | ||
Interest income (expense) on derivative | 1,700 | $ 1,600 | $ 1,100 |
Interest rate swaps | Derivative designated as a cash flow hedge | Federal Home Loan Bank of New York | |||
Derivative [Line Items] | |||
Reclassified as an increase to interest expense during the next twelve months | 2,100 | ||
Interest rate swaps | Derivative designated as a cash flow hedge | Federal Home Loan Bank of New York | Amount Reclassified from Accumulated Other Comprehensiven (loss) Income | |||
Derivative [Line Items] | |||
Increase to interest expense | $ 1,700 |
DERIVATIVES - Net Gains (Losses
DERIVATIVES - Net Gains (Losses) Relating to the Cash Flow Derivative Instruments (Details) - Derivative designated as a cash flow hedge - Interest rate swaps - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income | |||
Interest rate contracts, Amount of (loss) gain recognized in OCI included component | $ (10,455) | $ (3,601) | $ 2,493 |
Interest rate contracts, Amount of gain (loss) reclassified from Accumulated OCI into income included component | $ (5,016) | $ 1,588 | $ 1,068 |
DERIVATIVES - Cash Flow Hedges
DERIVATIVES - Cash Flow Hedges included in the Consolidated Balance Sheets (Details) - Derivative designated as a cash flow hedge - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Interest rate swaps | Federal Home Loan Bank of New York | Forward contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 65,000 | $ 50,000 |
Fair Value Asset | 11 | |
Fair Value Liability | (222) | (1,427) |
Interest rate swaps related to FHLB advances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 215,000 | 240,000 |
Fair Value Asset | 1,233 | |
Fair Value Liability | $ (6,651) | $ (978) |
DERIVATIVES - Non-Designated He
DERIVATIVES - Non-Designated Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives | |||
Notional amounts | $ 1,100,000 | $ 823,900 | |
Loan Swap Fees | 3,742 | 7,460 | $ 716 |
Loan customers | |||
Derivatives | |||
Notional amounts | 548,500 | 411,900 | |
Bank counterparties | |||
Derivatives | |||
Notional amounts | 548,500 | 411,900 | |
Interest rate swaps | Non-Designated Hedges | |||
Derivatives | |||
Notional amounts | $ 1,097,100 | $ 823,894 | |
Weighted average pay rates (as a percent) | 2.94% | 3.75% | |
Weighted average receive rates (as a percent) | 2.94% | 3.75% | |
Weighted average maturity | 10 years 7 days | 10 years 9 months 7 days | |
Fair value of combined interest rate swaps | $ 0 | $ 0 |
INCOME TAXES - Components (Deta
INCOME TAXES - Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||||||||||
Federal | $ 16,262 | $ 12,665 | $ 5,270 | ||||||||
State | 1,457 | 639 | 1,023 | ||||||||
Total current | 17,719 | 13,304 | 6,293 | ||||||||
Deferred: | |||||||||||
Federal | (3,782) | (419) | 3,299 | ||||||||
State | (252) | 1,175 | (451) | ||||||||
Total deferred | (4,034) | 756 | 2,848 | ||||||||
Total income tax expense | $ 3,881 | $ 3,999 | $ 3,129 | $ 2,676 | $ 3,934 | $ 3,852 | $ 2,859 | $ 3,415 | $ 13,685 | $ 14,060 | $ 9,141 |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amount | |||||||||||
Federal income tax expense computed by applying the statutory rate to income before income taxes | $ 11,703 | $ 13,808 | $ 10,157 | ||||||||
Tax exempt interest | (851) | (920) | (1,002) | ||||||||
State taxes, net of federal income tax benefit | 1,214 | 1,425 | 1,999 | ||||||||
Other | 1,619 | (253) | (2,013) | ||||||||
Total income tax expense | $ 3,881 | $ 3,999 | $ 3,129 | $ 2,676 | $ 3,934 | $ 3,852 | $ 2,859 | $ 3,415 | $ 13,685 | $ 14,060 | $ 9,141 |
Percentage of Pre-tax Earnings | |||||||||||
Federal income tax expense computed by applying the statutory rate to income before income taxes (as a percent) | 21.00% | 21.00% | 21.00% | ||||||||
Tax exempt interest (as a percent) | (1.00%) | (1.00%) | (2.00%) | ||||||||
State taxes, net of federal income tax benefit (as a percent) | 2.00% | 2.00% | 4.00% | ||||||||
Other (as a percent) | 3.00% | (1.00%) | (4.00%) | ||||||||
Income tax expense (as a percent) | 25.00% | 21.00% | 19.00% |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for credit losses and off-balance sheet credit exposure | $ 13,983 | $ 10,305 |
Net unrealized losses on securities | 343 | |
Compensation and related benefit obligations | 1,674 | 2,368 |
Net deferred loan costs and fees | 2,588 | |
Purchase accounting fair value adjustments | 3,574 | 4,735 |
Net change in pension and other post-retirement benefits plans | 3,608 | 2,809 |
Net operating loss carryforward | 786 | 3,229 |
Net loss on cash flow hedges | 1,905 | 304 |
Operating lease liabilities | 13,684 | 13,444 |
Other | 1,234 | 200 |
Total deferred tax assets | 43,036 | 37,737 |
Deferred tax liabilities: | ||
Pension and SERP expense | (5,366) | (4,904) |
Net unrealized gains on securities | (1,285) | |
Depreciation | (546) | (956) |
REIT undistributed net income | (3,178) | (2,403) |
Net deferred loan costs and fees | (2,413) | |
State and local taxes | (1,345) | (1,227) |
Operating lease right-of-use assets | (13,172) | (12,934) |
Other | (970) | (835) |
Total deferred tax liabilities | (25,862) | (25,672) |
Net deferred tax asset | $ 17,174 | $ 12,065 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | Dec. 31, 2020USD ($) |
Operating Loss Carryforwards [Line Items] | |
NOL carryforward | $ 2.9 |
New York State Division of Taxation and Finance | CNB | |
Operating Loss Carryforwards [Line Items] | |
NOL carryforward | 2.1 |
New York City Division Of Taxation | CNB | |
Operating Loss Carryforwards [Line Items] | |
NOL carryforward | $ 0 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT PLANS - Changes in Obligations and Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 28,757 | $ 23,611 | |
Service cost | 940 | 952 | $ 1,106 |
Interest cost | 794 | 908 | 794 |
Benefits paid and expected expenses | (609) | (475) | |
Assumption changes and other | 3,865 | 3,761 | |
Benefit obligation at end of year | 33,747 | 28,757 | 23,611 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 39,745 | 33,874 | |
Actual return on plan assets | 3,764 | 6,346 | |
Employer contribution to the plan | 1,160 | ||
Benefits paid and actual expenses | (609) | (475) | |
Fair value of plan assets at end of year | 44,060 | 39,745 | 33,874 |
Funded status at end of year | 10,313 | 10,988 | |
SERP Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 5,323 | 3,811 | |
Service cost | 371 | 261 | 290 |
Interest cost | 149 | 147 | 127 |
Benefits paid and expected expenses | (112) | (112) | |
Assumption changes and other | 238 | 1,216 | |
Benefit obligation at end of year | 5,969 | 5,323 | $ 3,811 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Actual return on plan assets | 0 | 0 | |
Employer contribution to the plan | 112 | 112 | |
Benefits paid and actual expenses | (112) | (112) | |
Fair value of plan assets at end of year | 0 | 0 | |
Funded status at end of year | $ (5,969) | $ (5,323) |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT PLANS - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amounts recognized in accumulated other comprehensive income | ||
Net amount recognized | $ 8,640 | $ 6,775 |
Pension Benefits | ||
Amounts recognized in accumulated other comprehensive income | ||
Net actuarial loss | 10,572 | 7,997 |
Prior service cost | (408) | (484) |
Net amount recognized | 10,164 | 7,513 |
SERP Benefits | ||
Amounts recognized in accumulated other comprehensive income | ||
Net actuarial loss | 2,083 | 2,071 |
Prior service cost | 0 | 0 |
Net amount recognized | $ 2,083 | $ 2,071 |
PENSION AND POSTRETIREMENT PLAN
PENSION AND POSTRETIREMENT PLANS - Components of Net Periodic Benefit Cost (Credit) - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: | |||
Service cost | $ 940 | $ 952 | $ 1,106 |
Interest cost | 794 | 908 | 794 |
Expected return on plan assets | (2,905) | (2,445) | (2,547) |
Amortization of net loss | 431 | 494 | 335 |
Amortization of prior service credit | (77) | (77) | (77) |
Amortization of transition obligation | 0 | 0 | 0 |
Net periodic benefit (credit) cost | (817) | (168) | (389) |
SERP Benefits | |||
Components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: | |||
Service cost | 371 | 261 | 290 |
Interest cost | 149 | 147 | 127 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net loss | 227 | 70 | 121 |
Amortization of prior service credit | 0 | 0 | 0 |
Amortization of transition obligation | 0 | 0 | 5 |
Net periodic benefit (credit) cost | $ 747 | $ 478 | $ 543 |
PENSION AND POSTRETIREMENT PL_2
PENSION AND POSTRETIREMENT PLANS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to the plan | $ 112 | $ 112 |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT PLANS - Components of Net Periodic Benefit (Credit) Cost and Other Amounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: | |||
Total recognized in other comprehensive income | $ 3,245 | $ 1,076 | $ 1,567 |
Pension Benefits | |||
Components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: | |||
Service cost | 940 | 952 | 1,106 |
Interest cost | 794 | 908 | 794 |
Expected return on plan assets | (2,905) | (2,445) | (2,547) |
Amortization of net loss | 431 | 494 | 335 |
Amortization of prior service credit | (77) | (77) | (77) |
Amortization of transition obligation | 0 | 0 | 0 |
Net periodic benefit (credit) cost | (817) | (168) | (389) |
Net loss (gain) | 3,006 | (140) | 1,980 |
Amortization of net loss | (431) | (494) | (335) |
Amortization of prior service credit | 77 | 77 | 77 |
Amortization of transition obligation | 0 | 0 | 0 |
Total recognized in other comprehensive income | 2,652 | (557) | 1,722 |
SERP Benefits | |||
Components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: | |||
Service cost | 371 | 261 | 290 |
Interest cost | 149 | 147 | 127 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net loss | 227 | 70 | 121 |
Amortization of prior service credit | 0 | 0 | 0 |
Amortization of transition obligation | 0 | 0 | 5 |
Net periodic benefit (credit) cost | 747 | 478 | 543 |
Net loss (gain) | 239 | 1,216 | (413) |
Amortization of net loss | (227) | (70) | (121) |
Amortization of prior service credit | 0 | 0 | 0 |
Amortization of transition obligation | 0 | 0 | (5) |
Total recognized in other comprehensive income | $ 12 | $ 1,146 | $ (539) |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT PLANS - Expected Long-Term Rate-of-Return (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Weighted average assumptions used to determine benefit obligations: | |||
Discount rate (as a percent) | 2.33% | 3.10% | 4.14% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
Weighted average assumptions used to determine net periodic benefit cost: | |||
Discount rate (as a percent) | 3.10% | 4.14% | 3.52% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
Expected long-term rate of return (as a percent) | 7.25% | 7.25% | 7.25% |
SERP Benefits | |||
Weighted average assumptions used to determine benefit obligations: | |||
Discount rate (as a percent) | 2.28% | 3.08% | 4.13% |
Rate of compensation increase (as a percent) | 5.00% | 5.00% | |
Weighted average assumptions used to determine net periodic benefit cost: | |||
Discount rate (as a percent) | 3.08% | 4.13% | 3.50% |
Rate of compensation increase (as a percent) | 5.00% | 5.00% | |
Expected long-term rate of return (as a percent) | 0.00% | 0.00% | 0.00% |
PENSION AND OTHER POSTRETIREM_7
PENSION AND OTHER POSTRETIREMENT PLANS - Target Allocations for Plan Assets (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Target allocations for Plan assets | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Cash and cash equivalents | ||
Target allocations for Plan assets | ||
Percentage of Plan Assets | 5.60% | 3.60% |
Weighted-Average Expected Long-term Rate of Return (as a percent) | 0.00% | |
Cash and cash equivalents | Minimum | ||
Target allocations for Plan assets | ||
Target Allocation 2021 (as a percent) | 0.00% | |
Cash and cash equivalents | Maximum | ||
Target allocations for Plan assets | ||
Target Allocation 2021 (as a percent) | 5.00% | |
Equity Securities | ||
Target allocations for Plan assets | ||
Percentage of Plan Assets | 56.80% | 57.90% |
Weighted-Average Expected Long-term Rate of Return (as a percent) | 9.50% | |
Equity Securities | Minimum | ||
Target allocations for Plan assets | ||
Target Allocation 2021 (as a percent) | 45.00% | |
Equity Securities | Maximum | ||
Target allocations for Plan assets | ||
Target Allocation 2021 (as a percent) | 65.00% | |
Fixed income securities | ||
Target allocations for Plan assets | ||
Percentage of Plan Assets | 37.60% | 38.50% |
Weighted-Average Expected Long-term Rate of Return (as a percent) | 5.00% | |
Fixed income securities | Minimum | ||
Target allocations for Plan assets | ||
Target Allocation 2021 (as a percent) | 30.00% | |
Fixed income securities | Maximum | ||
Target allocations for Plan assets | ||
Target Allocation 2021 (as a percent) | 50.00% |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT PLANS - Financial Assets Measured At Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Benefits | |||
Employee benefits | |||
Total plan assets | $ 44,060 | $ 39,745 | $ 33,874 |
Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 44,060 | 39,745 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 26,876 | 25,050 | |
Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 17,184 | 14,695 | |
Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Cash and cash equivalents | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 2,452 | 1,444 | |
Cash and cash equivalents | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 2,452 | 1,444 | |
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Equity Securities | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 25,023 | 23,026 | |
Equity Securities | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 25,023 | 23,026 | |
Equity Securities | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Equity Securities | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
U.S. large cap | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 15,449 | 12,097 | |
U.S. large cap | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 15,449 | 12,097 | |
U.S. large cap | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
U.S. large cap | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
U.S. Mid cap/small cap | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 3,471 | 4,195 | |
U.S. Mid cap/small cap | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 3,471 | 4,195 | |
U.S. Mid cap/small cap | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
U.S. Mid cap/small cap | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
International | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 6,029 | 6,320 | |
International | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 6,029 | 6,320 | |
International | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
International | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Equities blend | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 74 | 414 | |
Equities blend | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 74 | 414 | |
Equities blend | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Equities blend | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Fixed income securities | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 16,585 | 15,275 | |
Fixed income securities | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 1,853 | 2,024 | |
Fixed income securities | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 14,732 | 13,251 | |
Fixed income securities | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Corporate | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 1,853 | 2,024 | |
Corporate | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 1,853 | 2,024 | |
Corporate | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Corporate | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Government | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 2,342 | 2,926 | |
Government | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Government | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 2,342 | 2,926 | |
Government | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Mortgage-backed | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 2,325 | 1,033 | |
Mortgage-backed | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Mortgage-backed | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 2,325 | 1,033 | |
Mortgage-backed | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
High yield bonds and bond funds | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 10,065 | 9,292 | |
High yield bonds and bond funds | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
High yield bonds and bond funds | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 10,065 | 9,292 | |
High yield bonds and bond funds | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | $ 0 | $ 0 |
PENSION AND OTHER POSTRETIREM_9
PENSION AND OTHER POSTRETIREMENT PLANS - Benefits Expected to be Paid (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Estimated future Pension Plan and SERP payments | |
2021 | $ 1,093 |
2022 | 1,180 |
2023 | 1,315 |
2024 | 1,318 |
2025 | 1,395 |
2026-2030 | $ 10,228 |
PENSION AND OTHER POSTRETIRE_10
PENSION AND OTHER POSTRETIREMENT PLANS - 401k Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PENSION AND OTHER POSTRETIREMENT PLANS. | |||
Participants contribution | $ 19,500 | ||
Description of Defined Contribution Pension and Other Postretirement Plans | 100% of each employee’s contributions up to 1% of each employee’s compensation plus 50% of each employee’s contributions over 1% but not in excess of 6% of each employee’s compensation for a maximum contribution of 3.5% of a participating employee’s compensation | ||
Minimum employee contribution percentage | 1.00% | ||
Percentage of employer matching contribution | 50.00% | ||
Threshold limit percentage of employee compensation | 6.00% | ||
Maximum percentage of annual contribution per employee | 3.50% | ||
Cash contributions by the Bank | $ 1,400,000 | $ 1,100,000 | $ 1,000,000 |
Discretionary profit sharing contribution | $ 546,000 | $ 583,000 | $ 497,000 |
PENSION AND OTHER POSTRETIRE_11
PENSION AND OTHER POSTRETIREMENT PLANS - Additional Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | ||
Investments for long-term growth (as a percent) | 97.00% | |
Investments for near-term benefit payments (as a percent) | 3.00% | |
Cumulative historical returns for the S&P 500 index (as a percent) | 9.50% | |
Cumulative historical returns for the long term corporate bonds (as a percent) | 5.00% | |
Pension Benefits | ||
Employee benefits | ||
Accumulated benefit obligation | $ 32,300 | $ 27,400 |
Amortization from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | ||
Estimated net loss | 650 | |
Estimated prior service credit | 77 | |
SERP Benefits | ||
Employee benefits | ||
Accumulated benefit obligation | 6,000 | $ 3,600 |
Amortization from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | ||
Estimated net loss | $ 257 |
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 69,360 | |||
Stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 425 | $ 197 | $ 91 | |
Unrecognized compensation cost related to unvested stock options | $ 201 | |||
Cost is expected to be recognized period | 1 month 6 days | |||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards granted | 91,428 | |||
Number of restricted stock awards unvested | 89,043 | 293,717 | ||
Directors | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 1 year | |||
Deferred compensation expense | $ 553 | $ 570 | 560 | |
2012 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 0 | |||
2012 Plan | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 5,100 | $ 2,200 | $ 2,400 | |
Number of restricted stock awards granted | 78,952 | 83,782 | ||
Total fair value of shares vested | 8,800 | $ 2,500 | $ 1,500 | |
Unrecognized compensation cost related to non-vested RSAs | $ 2,200 | |||
Cost is expected to be recognized period | 1 month 6 days | |||
2012 Plan | Restricted stock | Five year specified vesting schedule | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards granted | 57,850 | 49,925 | 44,750 | |
Vesting period (in years) | 5 years | 5 years | ||
Year in vesting schedule in which one-third of the awards vest, period one | 5 years | |||
2012 Plan | Restricted stock | Three year specified vesting schedule | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards granted | 29,027 | 13,915 | ||
Vesting period (in years) | 3 years | |||
Year in vesting schedule in which one-third of the awards vest, period one | 3 years | |||
2012 Plan | Restricted stock | Three year ratable vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards granted | 33,578 | |||
Vesting period (in years) | 3 years | |||
2012 Plan | Restricted stock | Two year ratable vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards granted | 25,117 | |||
Vesting period (in years) | 2 years | |||
LTI Plan | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 1,600 | $ 693 | $ 462 | |
Number of restricted stock awards granted | 26,556 | |||
Number of restricted stock awards unvested | 38,275 | 85,342 | ||
Unrecognized compensation cost related to non-vested RSAs | $ 600 | |||
Cost is expected to be recognized period | 1 month 6 days | |||
LTI Plan | Restricted stock units | Time-vested RSAs vest ratably over five years | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards granted | 17,943 | |||
Vesting period (in years) | 3 years | |||
LTI Plan | Restricted stock units | Performance-based RSAs vest | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards granted | 8,613 | |||
Vesting period (in years) | 3 years | |||
LTI Plan | NEOs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 69,360 | 63,267 | 47,393 | |
Percentage premium over the grant date stock price | 10.00% | 10.00% | 10.00% | |
Vesting period (in years) | 3 years | 3 years | 3 years | |
Weighted-average grant-date fair value | $ 4.10 | $ 5.05 | $ 6.52 | |
Method used | Black-Scholes option-pricing model | |||
LTI Plan | NEOs | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards granted | 22,305 | |||
LTI Plan | NEOs | Restricted stock units | Time-vested RSAs vest ratably over five years | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards granted | 13,255 | |||
Vesting period (in years) | 5 years | |||
LTI Plan | NEOs | Restricted stock units | Performance-based RSAs vest | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards granted | 9,050 | |||
Vesting period (in years) | 3 years |
STOCK BASED COMPENSATION PLAN_2
STOCK BASED COMPENSATION PLANS - Incentive Plans (Details) - shares | 1 Months Ended | 12 Months Ended |
May 31, 2019 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards granted and distributed (in shares) | 69,360 | |
Common Stock, Capital Shares Reserved for Future Issuance | 436,953 | |
2012 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards granted and distributed (in shares) | 0 | |
Share Based Compensation Arrangement By Share Based Payment Award Number Of Remaining Shares Available For Grant | 162,738 | |
2012 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 370,000 | |
Shares available for grant | 370,000 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Schedule of Share Based Compensation Arrangement By Share Based Payment Award Grants in Period Fair Value Assumptions (Details) - LTI Plan - NEOs | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 3.03% | 2.86% | 2.80% |
Expected volatility rate | 23.11% | 23.80% | 27.53% |
Risk-free interest rate | 1.47% | 2.52% | 2.67% |
Expected option life | 6 years | 6 years | 6 years 6 months |
STOCK BASED COMPENSATION PLAN_3
STOCK BASED COMPENSATION PLANS - Status of Company's Stock Options (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Number of Options | |
Outstanding, January 1, 2020 | shares | 110,660 |
Granted | shares | 69,360 |
Outstanding, December 31, 2020 | shares | 180,020 |
Vested and Exercisable, December 31, 2020 | shares | 110,660 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, January 1, 2020 | $ / shares | $ 35.71 |
Granted | $ / shares | 34.87 |
Weighted Average Exercise Price, December 31, 2020 | $ / shares | 35.39 |
Vested and Exercisable, December 31, 2020 | $ / shares | $ 35.71 |
Weighted Average Remaining Contractual Life, Outstanding | 8 years 2 months 12 days |
Weighted Average Remaining Contractual Life, Vested and Exercisable | 7 years 8 months 12 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 0 |
Aggregate Intrinsic Value, Vested and Exercisable | $ | $ 0 |
STOCK BASED COMPENSATION PLAN_4
STOCK BASED COMPENSATION PLANS - Exercise Prices (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options | 180,020 | 110,660 |
Exercise Price | $ 35.39 | $ 35.71 |
$34.87 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options | 69,360 | |
Exercise Price | $ 34.87 | |
$35.35 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options | 63,267 | |
Exercise Price | $ 35.35 | |
36.19 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options | 47,393 | |
Exercise Price | $ 36.19 |
STOCK BASED COMPENSATION PLAN_5
STOCK BASED COMPENSATION PLANS - Restricted Stock Awards (Details) - Restricted stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares | |||
Unvested, January 1, 2020 | 293,717 | ||
Granted | 91,428 | ||
Vested | (289,509) | ||
Forfeited | (6,593) | ||
Unvested, December 31, 2020 | 89,043 | 293,717 | |
Weighted Average Grant-Date Fair Value | |||
Unvested, January 1, 2020 | $ 30.37 | ||
Granted | 31.02 | ||
Vested | 30.34 | ||
Forfeited | 32.16 | ||
Unvested, December 31, 2020 | $ 31 | $ 30.37 | |
2012 Plan | |||
Shares | |||
Granted | 78,952 | 83,782 |
STOCK BASED COMPENSATION PLAN_6
STOCK BASED COMPENSATION PLANS - Restricted Stock Units (Details) - LTI Plan - Restricted stock units | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Shares | |
Unvested, January 1, 2020 | shares | 85,342 |
Granted | shares | 26,556 |
Reinvested dividends | shares | 4,491 |
Added by performance factor | shares | 605 |
Forfeited | shares | (6,623) |
Vested | shares | (72,096) |
Unvested, December 31, 2020 | shares | 38,275 |
Weighted Average Grant-Date Fair Value | |
Unvested, January 1, 2020 | $ / shares | $ 29.59 |
Granted | $ / shares | 32.13 |
Reinvested dividends | $ / shares | 30.08 |
Added by performance factor | $ / shares | 33.69 |
Forfeited | $ / shares | 28.68 |
Vested | $ / shares | 29.10 |
Unvested, December 31, 2020 | $ / shares | $ 32.57 |
STOCK BASED COMPENSATION PLAN_7
STOCK BASED COMPENSATION PLANS - Employee Stock Purchase Plan (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
STOCK-BASED COMPENSATION PLANS. | ||||
Common stock initially authorized for issuance under the ESPP, Shares | 1,000,000 | |||
Maximum contribution from employees | $ 25,000 | |||
Shares of common stock purchased under the ESPP | 11,413 | 7,888 | 3,758 | |
Expense recorded related to ESPP | $ 0 | $ 0 | $ 0 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
EARNINGS PER SHARE. | |||||||||||
Net income | $ 8,977 | $ 13,061 | $ 10,656 | $ 9,348 | $ 14,208 | $ 13,903 | $ 10,653 | $ 12,927 | $ 42,042 | $ 51,691 | $ 39,227 |
Dividends paid on and earnings allocated to participating securities | (872) | (1,096) | (853) | ||||||||
Income attributable to common stock | $ 41,170 | $ 50,595 | $ 38,374 | ||||||||
Weighted average common shares outstanding, including participating securities | 19,903 | 19,952 | 19,875 | ||||||||
Weighted average participating securities (in shares) | (409) | (424) | (434) | ||||||||
Weighted average common shares outstanding | 19,494 | 19,528 | 19,441 | ||||||||
Basic earnings per common share (in dollars per share) | $ 0.45 | $ 0.66 | $ 0.54 | $ 0.47 | $ 0.71 | $ 0.70 | $ 0.53 | $ 0.65 | $ 2.11 | $ 2.59 | $ 1.97 |
Income attributable to common stock | $ 41,170 | $ 50,595 | $ 38,374 | ||||||||
Weighted average common shares outstanding | 19,494 | 19,528 | 19,441 | ||||||||
Incremental shares from assumed conversions of options and restricted stock units | 55 | 31 | 27 | ||||||||
Weighted average common and equivalent shares outstanding (in shares) | 19,549 | 19,559 | 19,468 | ||||||||
Diluted earnings per common share (in dollars per share) | $ 0.45 | $ 0.66 | $ 0.54 | $ 0.47 | $ 0.71 | $ 0.70 | $ 0.53 | $ 0.65 | $ 2.11 | $ 2.59 | $ 1.97 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 180,020 | 110,660 | 47,393 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 8,941 | 0 | 3,156 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS - Commitments Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments outstanding | ||
Total commitments outstanding | $ 984,312 | $ 814,908 |
Standby letters of credit | ||
Commitments outstanding | ||
Total commitments outstanding | 25,501 | 23,670 |
Loan commitments outstanding | ||
Commitments outstanding | ||
Total commitments outstanding | 150,515 | 117,044 |
Unused lines of credit | ||
Commitments outstanding | ||
Total commitments outstanding | $ 808,296 | $ 674,194 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS - Fixed Rate Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments outstanding | $ 984,312 | $ 814,908 |
Fixed rate loan commitments outstanding | 5,100 | 5,900 |
Variable rate loan commitments outstanding | 145,400 | 111,100 |
Loan commitments outstanding | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments outstanding | $ 150,515 | $ 117,044 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS - Narrative (Details) - BNB Bank (Bank) $ in Millions | Dec. 31, 2020USD ($) |
Commitments and Contingencies [Line Items] | |
Average balance maintained | $ 342.4 |
Lines of credit with unaffiliated correspondent banks to provide short-term credit | 418 |
Amount available for transactions under Master Repurchase Agreement | 1,900 |
Federal Home Loan Bank Advances | |
Commitments and Contingencies [Line Items] | |
Lines of credit available on an unsecured basis | 398 |
Federal funds purchased | $ 0 |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS - Narratives (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Regulatory capital requirements | ||
Actual, Ratio (as a percent) | 4.5 | 7 |
Actual, Ratio (as a percent) | 6 | 8.5 |
Actual, Ratio (as a percent) | 8 | 10.5 |
Basel III | ||
Regulatory capital requirements | ||
Additional capital conservation buffer (as a percentage) | 2.50% | |
Actual, Ratio (as a percent) | 10.3 | 10.2 |
Actual, Ratio (as a percent) | 10.3 | 10.2 |
Actual, Ratio (as a percent) | 13 | 13.1 |
REGULATORY CAPITAL REQUIREMEN_4
REGULATORY CAPITAL REQUIREMENTS (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Common equity tier 1 capital to risk weighted assets: | ||
Actual, Ratio (as a percent) | 4.5 | 7 |
Total Capital (to risk weighted assets) | ||
Actual, Ratio (as a percent) | 8 | 10.5 |
Tier 1 Capital (to risk weighted assets) | ||
Actual, Ratio (as a percent) | 6 | 8.5 |
Basel III | ||
Common equity tier 1 capital to risk weighted assets: | ||
Actual, Amount | $ 424,652 | $ 397,800 |
Actual, Ratio (as a percent) | 10.3 | 10.2 |
Minimum Capital Adequacy Requirement, Amount | $ 185,479 | $ 176,121 |
Minimum Capital Adequacy Requirement, Ratio (as a percent) | 4.50% | 4.50% |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer, Amount | $ 288,523 | $ 273,967 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer (as a percent) | 7.00% | 7.00% |
Total Capital (to risk weighted assets) | ||
Actual, Amount | $ 537,664 | $ 510,862 |
Actual, Ratio (as a percent) | 13 | 13.1 |
Minimum Capital Adequacy Requirement, Amount | $ 329,740 | $ 313,105 |
Minimum Capital Adequacy Requirement (as a percent) | 8 | 8 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer, Amount | $ 432,784 | $ 410,950 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer (as a percent) | 10.50% | 10.50% |
Tier 1 Capital (to risk weighted assets) | ||
Actual, Amount | $ 424,652 | $ 397,800 |
Actual, Ratio (as a percent) | 10.3 | 10.2 |
For Capital Adequacy Purposes, Amount | $ 247,305 | $ 234,828 |
For Capital Adequacy Purposes, Ratio (as a percent) | 6 | 6 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer, Amount | $ 350,349 | $ 332,674 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer (as a percent) | 8.50% | 8.50% |
Tier 1 Capital (to average assets) | ||
Actual, Amount | $ 424,652 | $ 397,800 |
Actual, Ratio (as a percent) | 6.8 | 8.5 |
For Capital Adequacy Purposes, Amount | $ 249,502 | $ 187,386 |
For Capital Adequacy Purposes, Ratio (as a percent) | 4 | 4 |
BNB Bank (Bank) | Basel III | ||
Common equity tier 1 capital to risk weighted assets: | ||
Actual, Amount | $ 503,524 | $ 474,056 |
Actual, Ratio (as a percent) | 12.2 | 12.1 |
Minimum Capital Adequacy Requirement, Amount | $ 185,465 | $ 176,114 |
Minimum Capital Adequacy Requirement, Ratio (as a percent) | 4.50% | 4.50% |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer, Amount | $ 288,502 | $ 273,954 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer (as a percent) | 7.00% | 7.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 267,895 | $ 254,386 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 6.50% | 6.50% |
Total Capital (to risk weighted assets) | ||
Actual, Amount | $ 544,536 | $ 507,118 |
Actual, Ratio (as a percent) | 13.2 | 13 |
Minimum Capital Adequacy Requirement, Amount | $ 329,716 | $ 313,091 |
Minimum Capital Adequacy Requirement (as a percent) | 8 | 8 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer, Amount | $ 432,753 | $ 410,932 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer (as a percent) | 10.50% | 10.50% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 412,145 | $ 391,363 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (as a percent) | 10 | 10 |
Tier 1 Capital (to risk weighted assets) | ||
Actual, Amount | $ 503,524 | $ 474,056 |
Actual, Ratio (as a percent) | 12.2 | 12.1 |
For Capital Adequacy Purposes, Amount | $ 247,287 | $ 234,818 |
For Capital Adequacy Purposes, Ratio (as a percent) | 6 | 6 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer, Amount | $ 350,324 | $ 332,659 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer (as a percent) | 8.50% | 8.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 329,716 | $ 313,091 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 8 | 8 |
Tier 1 Capital (to average assets) | ||
Actual, Amount | $ 503,524 | $ 474,056 |
Actual, Ratio (as a percent) | 8.1 | 10.1 |
For Capital Adequacy Purposes, Amount | $ 249,389 | $ 187,377 |
For Capital Adequacy Purposes, Ratio (as a percent) | 4 | 4 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 311,737 | $ 234,222 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 5 | 5 |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Cash and cash equivalents | $ 876,828 | $ 117,194 | $ 295,368 | $ 94,747 |
Other assets | 83,072 | 38,399 | ||
Total assets | 6,434,296 | 4,921,520 | ||
Liabilities and stockholders' equity: | ||||
Subordinated debentures, net | 79,059 | 78,920 | ||
Total liabilities | 5,916,465 | 4,424,366 | ||
Total stockholders' equity | 517,831 | 497,154 | 453,830 | 429,200 |
Total liabilities and stockholders' equity | 6,434,296 | 4,921,520 | ||
Parent Company | ||||
Assets: | ||||
Cash and cash equivalents | 280 | 3,663 | $ 1,537 | $ 7,858 |
Other assets | 554 | 174 | ||
Investment in the Bank | 596,703 | 573,410 | ||
Total assets | 597,537 | 577,247 | ||
Liabilities and stockholders' equity: | ||||
Subordinated debentures, net | 79,059 | 78,920 | ||
Other liabilities | 647 | 1,173 | ||
Total liabilities | 79,706 | 80,093 | ||
Total stockholders' equity | 517,831 | 497,154 | ||
Total liabilities and stockholders' equity | $ 597,537 | $ 577,247 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed financial information | |||||||||||
Interest expense | $ 4,492 | $ 5,589 | $ 5,418 | $ 7,952 | $ 8,672 | $ 9,639 | $ 10,835 | $ 10,192 | $ 23,451 | $ 39,338 | $ 32,204 |
Non-interest expense | 35,078 | 28,937 | 24,399 | 24,843 | 25,332 | 24,204 | 24,004 | 22,599 | 113,257 | 96,139 | 98,180 |
Income tax benefit | 3,881 | 3,999 | 3,129 | 2,676 | 3,934 | 3,852 | 2,859 | 3,415 | 13,685 | 14,060 | 9,141 |
Net income | $ 8,977 | $ 13,061 | $ 10,656 | $ 9,348 | $ 14,208 | $ 13,903 | $ 10,653 | $ 12,927 | 42,042 | 51,691 | 39,227 |
Parent Company | |||||||||||
Condensed financial information | |||||||||||
Dividends from the Bank | 26,500 | 24,500 | 15,000 | ||||||||
Interest expense | 4,401 | 4,539 | 4,539 | ||||||||
Non-interest expense | 252 | 104 | 135 | ||||||||
Income before income taxes and equity in undistributed earnings of the Bank | 21,847 | 19,857 | 10,326 | ||||||||
Income tax benefit | (1,280) | (994) | (1,005) | ||||||||
Income before equity in undistributed earnings of the Bank | 23,127 | 20,851 | 11,331 | ||||||||
Equity in undistributed earnings of the Bank | 18,915 | 30,840 | 27,896 | ||||||||
Net income | $ 42,042 | $ 51,691 | $ 39,227 |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 42,042 | $ 51,691 | $ 39,227 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
(Increase) decrease in other assets | (11,916) | 3,942 | (2,373) |
(Decrease) increase in other liabilities | (5,371) | (1,509) | 3,430 |
Net cash provided by operating activities | 47,387 | 69,962 | 58,383 |
Cash flows from investing activities: | |||
Net cash used in investing activities | (716,840) | (352,606) | (80,549) |
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | 1,267 | 1,102 | 1,017 |
Purchase of treasury stock | (4,633) | (625) | |
Repurchase of surrendered stock from vesting of stock plans | (3,181) | (887) | (586) |
Cash dividends paid | (19,197) | (18,420) | (18,342) |
Net cash provided by financing activities | 1,429,087 | 104,470 | 222,787 |
Net increase (decrease) in cash and cash equivalents | 759,634 | (178,174) | 200,621 |
Cash and cash equivalents at beginning of period | 117,194 | 295,368 | 94,747 |
Cash and cash equivalents at end of period | 876,828 | 117,194 | 295,368 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 42,042 | 51,691 | 39,227 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed earnings of the Bank | (18,915) | (30,840) | (27,896) |
Amortization | 139 | 139 | 140 |
(Increase) decrease in other assets | (379) | (73) | 108 |
(Decrease) increase in other liabilities | (526) | 39 | 11 |
Net cash provided by operating activities | 22,361 | 20,956 | 11,590 |
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | 1,267 | 1,102 | 1,017 |
Purchase of treasury stock | (4,633) | (625) | |
Repurchase of surrendered stock from vesting of stock plans | (3,181) | (887) | (586) |
Cash dividends paid | (19,197) | (18,420) | (18,342) |
Net cash provided by financing activities | (25,744) | (18,830) | (17,911) |
Net increase (decrease) in cash and cash equivalents | (3,383) | 2,126 | (6,321) |
Cash and cash equivalents at beginning of period | 3,663 | 1,537 | 7,858 |
Cash and cash equivalents at end of period | $ 280 | $ 3,663 | $ 1,537 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components and Related Income Tax Effects (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||
Unrealized holding gains (losses) on available for sale securities | $ 9,069 | $ 15,524 | $ (8,429) |
Reclassification adjustments for (gains) losses realized in income | (3,525) | (201) | 7,921 |
Income tax effect | (1,628) | (4,467) | 160 |
Net change in unrealized (losses) gains on available for sale securities | 3,916 | 10,856 | (348) |
Unrealized net losses arising during the period | 3,245 | 1,076 | 1,567 |
Reclassification adjustments for amortization realized in income | 581 | 487 | 384 |
Income tax effect | 799 | 179 | 351 |
Net change in post-retirement obligation | (1,865) | (410) | (832) |
Change in fair value of derivatives used for cash flow hedges | (10,455) | (3,601) | 2,493 |
Reclassification adjustments for losses (gains) realized in income | 5,016 | (1,588) | (1,068) |
Income tax effect | 1,601 | 1,514 | (418) |
Net change in unrealized (losses) gains on cash flow hedges | (3,838) | (3,675) | 1,007 |
Other comprehensive income (loss) | $ (1,787) | $ 6,771 | $ (173) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Summary of the Accumulated Other Comprehensive (Loss) Income Balances, Net of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrealized (losses) gains on available for sale securities | |||
Balance at the beginning of the period | $ (829) | ||
Current Period Change | 3,916 | $ 10,856 | $ (348) |
Balance at the end of the period | (3,087) | (829) | |
Unrealized losses on pension benefits | |||
Balance at the beginning of the period | (6,775) | ||
Current Period Change | (1,865) | (410) | (832) |
Balance at the end of the period | (8,640) | (6,775) | |
Unrealized losses on cash flow hedges | |||
Balance at the beginning of the period | (737) | ||
Current Period Change | (3,838) | (3,675) | 1,007 |
Balance at the end of the period | (4,575) | (737) | |
Accumulated other comprehensive loss, net of income taxes | |||
Balance at the beginning of the period | (8,341) | ||
Current Period Change | (1,787) | 6,771 | $ (173) |
Balance at the end of the period | $ (10,128) | $ (8,341) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassifications out of accumulated other comprehensive (loss) income | |||||||||||
Interest expense | $ 4,492 | $ 5,589 | $ 5,418 | $ 7,952 | $ 8,672 | $ 9,639 | $ 10,835 | $ 10,192 | $ 23,451 | $ 39,338 | $ 32,204 |
Loss on termination of swaps | (3,403) | ||||||||||
Income tax benefit (expense) | (3,881) | (3,999) | (3,129) | (2,676) | (3,934) | (3,852) | (2,859) | (3,415) | (13,685) | (14,060) | (9,141) |
Net income | $ 8,977 | $ 13,061 | $ 10,656 | $ 9,348 | $ 14,208 | $ 13,903 | $ 10,653 | $ 12,927 | 42,042 | 51,691 | 39,227 |
Amount Reclassified from Accumulated Other Comprehensiven (loss) Income | |||||||||||
Reclassifications out of accumulated other comprehensive (loss) income | |||||||||||
Total reclassifications, before income tax | (2,072) | 1,302 | (7,237) | ||||||||
Net income | (1,466) | 922 | (5,132) | ||||||||
Amount Reclassified from Accumulated Other Comprehensiven (loss) Income | Loss on termination of swaps | |||||||||||
Reclassifications out of accumulated other comprehensive (loss) income | |||||||||||
Loss on termination of swaps | (3,365) | ||||||||||
Amount Reclassified from Accumulated Other Comprehensiven (loss) Income | Income tax expense | |||||||||||
Reclassifications out of accumulated other comprehensive (loss) income | |||||||||||
Income tax benefit (expense) | 606 | (380) | 2,105 | ||||||||
Amount Reclassified from Accumulated Other Comprehensiven (loss) Income | Realized gains (losses) on sale of available for sale securities | Net securities gains (losses) | |||||||||||
Reclassifications out of accumulated other comprehensive (loss) income | |||||||||||
Net securities gains | 3,525 | 201 | (7,921) | ||||||||
Amount Reclassified from Accumulated Other Comprehensiven (loss) Income | Prior service credit | Other operating expenses | |||||||||||
Reclassifications out of accumulated other comprehensive (loss) income | |||||||||||
Other operating expenses | 77 | 77 | 77 | ||||||||
Amount Reclassified from Accumulated Other Comprehensiven (loss) Income | Transition obligation | Other operating expenses | |||||||||||
Reclassifications out of accumulated other comprehensive (loss) income | |||||||||||
Other operating expenses | (5) | ||||||||||
Amount Reclassified from Accumulated Other Comprehensiven (loss) Income | Actuarial losses | Other operating expenses | |||||||||||
Reclassifications out of accumulated other comprehensive (loss) income | |||||||||||
Other operating expenses | (658) | (564) | (456) | ||||||||
Amount Reclassified from Accumulated Other Comprehensiven (loss) Income | Realized (losses) gains on cash flow hedges | Interest expense. | |||||||||||
Reclassifications out of accumulated other comprehensive (loss) income | |||||||||||
Interest expense | $ (1,651) | $ 1,588 | $ 1,068 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||
Interest income | $ 47,484 | $ 46,296 | $ 45,850 | $ 44,602 | $ 44,320 | $ 46,354 | $ 46,352 | $ 44,515 | $ 184,232 | $ 181,541 | $ 168,984 |
Interest expense | 4,492 | 5,589 | 5,418 | 7,952 | 8,672 | 9,639 | 10,835 | 10,192 | 23,451 | 39,338 | 32,204 |
Net interest income | 42,992 | 40,707 | 40,432 | 36,650 | 35,648 | 36,715 | 35,517 | 34,323 | 160,781 | 142,203 | 136,780 |
Provision for credit losses | 500 | 1,500 | 4,500 | 5,000 | 600 | 1,000 | 3,500 | 600 | 11,500 | 5,700 | 1,800 |
Net interest income after provision for credit losses | 42,492 | 39,207 | 35,932 | 31,650 | 35,048 | 35,715 | 32,017 | 33,723 | 149,281 | 136,503 | 134,980 |
Non-interest income (loss) | 5,444 | 6,790 | 2,252 | 5,217 | 8,426 | 6,244 | 5,499 | 5,218 | 19,703 | 25,387 | 11,568 |
Non-interest expense | 35,078 | 28,937 | 24,399 | 24,843 | 25,332 | 24,204 | 24,004 | 22,599 | 113,257 | 96,139 | 98,180 |
Income before income taxes | 12,858 | 17,060 | 13,785 | 12,024 | 18,142 | 17,755 | 13,512 | 16,342 | 55,727 | 65,751 | 48,368 |
Income tax expense | 3,881 | 3,999 | 3,129 | 2,676 | 3,934 | 3,852 | 2,859 | 3,415 | 13,685 | 14,060 | 9,141 |
Net income | $ 8,977 | $ 13,061 | $ 10,656 | $ 9,348 | $ 14,208 | $ 13,903 | $ 10,653 | $ 12,927 | $ 42,042 | $ 51,691 | $ 39,227 |
Basic earnings per share (in dollars per share) | $ 0.45 | $ 0.66 | $ 0.54 | $ 0.47 | $ 0.71 | $ 0.70 | $ 0.53 | $ 0.65 | $ 2.11 | $ 2.59 | $ 1.97 |
Diluted earnings per share (in dollars per share) | $ 0.45 | $ 0.66 | $ 0.54 | $ 0.47 | $ 0.71 | $ 0.70 | $ 0.53 | $ 0.65 | $ 2.11 | $ 2.59 | $ 1.97 |
QUARTERLY FINANCIAL DATA (UNA_4
QUARTERLY FINANCIAL DATA (UNAUDITED) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||
Merger expenses | $ 2.1 | $ 2.4 |
NET FRAUD LOSS (Details)
NET FRAUD LOSS (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
NET FRAUD LOSS | |
Net fraud loss | $ 8,900 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) $ / shares in Units, $ in Millions | Feb. 01, 2021USD ($)$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | Sep. 30, 2015USD ($) |
Subsequent Event [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock issued to Legacy Dime shareholders in connection with the Merger | shares | 19,951,955 | 19,898,022 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, shares issued | shares | 0 | 0 | ||
Aggregate principal amount of 4.50% Fixed-to-Floating Rate Debentures due 2027 | $ | $ 80 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.01 | |||
Share conversion ratio | 0.6480 | |||
Subsequent Event | Legacy Dime | ||||
Subsequent Event [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.01 | |||
Common stock issued to Legacy Dime shareholders in connection with the Merger | shares | 21,232,920 | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | |||
Subsequent Event | Subordinated Debentures | Legacy Dime | ||||
Subsequent Event [Line Items] | ||||
Aggregate principal amount of 4.50% Fixed-to-Floating Rate Debentures due 2027 | $ | $ 115 | |||
Fixed interest rate of debentures | 4.50% | |||
Preferred Stock | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Share conversion ratio | 1 | |||
Non-Cumulative Perpetual Preferred Stock, Series A | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Preferred stock, shares issued | shares | 5,299,200 | |||
Preferred stock fixed-rate | 5.50% |