Peapack-Gladstone Financial (PGC) 10-Q 8 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 01, 2018
Document And Entity Information
Entity Registrant Name	PEAPACK GLADSTONE FINANCIAL CORP
Entity Central Index Key	1,050,743
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		18,923,914
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018
Trading Symbol	PGC

CONSOLIDATED STATEMENTS OF COND

CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands		Mar. 31, 2018	Dec. 31, 2017
ASSETS
Cash and due from banks		$ 4,223	$ 4,415
Federal funds sold		101	101
Interest-earning deposits		149,192	108,931
Total cash and cash equivalents		153,516	113,447
Securities available for sale		342,553	327,633
Equity Security		4,746
FHLB and FRB stock, at cost		23,703	13,378
Loans held for sale, at fair value		344	984
Loans held for sale, at lower of cost or fair value		3,075	187
Loans		3,708,297	3,704,440
Less: Allowance for loan and lease losses		37,696	36,440
Net loans		3,670,601	3,668,000
Premises and equipment		28,923	29,476
Other real estate owned		2,090	2,090
Accrued interest receivable		7,306	9,452
Bank owned life insurance		44,779	44,586
Deferred tax assets, net		629	552
Goodwill		17,107	17,107
Other intangible assets		6,549	6,729
Other assets		30,573	26,926
TOTAL ASSETS		4,336,494	4,260,547
Deposits:
Noninterest-bearing demand deposits		536,054	539,304
Interest-bearing deposits:
Interest-bearing deposits checking	[1]	1,089,980	1,152,483
Savings		126,026	119,556
Money market accounts		1,006,540	1,091,385
Certificates of deposit - Retail		540,942	543,035
Subtotal deposits		3,299,542	3,445,763
Interest-bearing demand - Brokered		180,000	180,000
Certificates of deposit - Brokered		72,614	72,591
Total deposits		3,552,156	3,698,354
Overnight borrowings		216,000
Federal Home Loan Bank advances		22,898	37,898
Capital lease obligation		8,900	9,072
Subordinated debt, net		83,079	83,024
Accrued expenses and other liabilities		31,055	28,521
TOTAL LIABILITIES		3,914,088	3,856,869
SHAREHOLDERS' EQUITY
Preferred stock (no par value; authorized 500,000 shares; liquidation preference of $1,000 per share)
Common stock (no par value; stated value $0.83 per share; authorized 21,000,000 shares; issued shares, 19,329,292 at March 31, 2018 and 19,027,812 at December 31, 2017; outstanding shares, 18,921,114 at March 31, 2018 and 18,619,634 at December 31, 2017		16,111	15,858
Surplus		293,830	283,552
Treasury stock at cost, 408,178 shares at both March 31, 2018 and December 31, 2017		(8,988)	(8,988)
Retained earnings		124,295	114,468
Accumulated other comprehensive loss, net of income tax		(2,842)	(1,212)
TOTAL SHAREHOLDERS' EQUITY		422,406	403,678
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY		$ 4,336,494	$ 4,260,547
[1]	Interest-bearing checking includes $369.8 million at March 31, 2018 and $359.9 million at December 31, 2017 of reciprocal balances in the Reich & Tang or Promontory Demand Deposit Marketplace program.

CONSOLIDATED STATEMENTS OF CON3

CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value
Preferred stock, shares authorized	500,000	500,000
Preferred stock, liquidation preference per share	$ 1,000	$ 1,000
Common stock, stated value	$ 0.83	$ 0.83
Common stock, shares authorized	21,000,000	21,000,000
Common stock, shares issued	19,329,292	19,027,812
Common stock, shares outstanding	18,921,114	18,619,634
Treasury stock, shares	408,178	408,178

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
INTEREST INCOME
Interest and fees on loans	$ 34,667	$ 29,492
Taxable	1,925	1,504
Tax-exempt	109	121
Interest on loans held for sale	10	4
Interest on interest-earning deposits	357	264
Total interest income	37,068	31,385
INTEREST EXPENSE
Interest on savings and interest-bearing deposit accounts	3,719	1,812
Interest on certificates of deposit	2,149	1,570
Interest on borrowed funds	370	303
Interest on capital lease obligation	107	115
Interest on subordinated debt	1,221	783
Subtotal - interest expense	7,566	4,583
Interest on interest-bearing demand - brokered	680	720
Interest on certificates of deposits - brokered	429	491
Total Interest expense	8,675	5,794
NET INTEREST INCOME BEFORE PROVISION FOR LOAN AND LEASE LOSSES	28,393	25,591
Provision for loan and lease losses	1,250	1,600
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES	27,143	23,991
OTHER INCOME
Wealth management fee income	8,367	4,818
Service charges and fees	831	771
Bank owned life insurance	336	322
Gains on loans held for sale at fair value (mortgage banking)	94	47
Fee income related to loan level, back-to-back swaps	252	456
Gain on sale of SBA loans	31	155
Other income	382	450
Securities losses, net	(78)
Total other income	10,215	7,019
OPERATING EXPENSES
Compensation and employee benefits	14,579	11,913
Premises and equipment	3,270	2,816
FDIC insurance expense	580	686
Other operating expense	4,908	3,889
Total operating expenses	23,337	19,304
INCOME BEFORE INCOME TAX EXPENSE	14,021	11,706
Income tax expense	3,214	3,724
NET INCOME	$ 10,807	$ 7,982
EARNINGS PER SHARE
Basic	$ 0.58	$ 0.47
Diluted	$ 0.57	$ 0.46
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Basic	18,608,309	17,121,631
Diluted	18,908,692	17,438,907

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 10,807	$ 7,982
Unrealized gains/(loss) on available for sale securities:
Unrealized holding gains/(losses) arising during the period	(2,934)	636
Before tax	(2,934)	636
Tax effect	676	(239)
Net of tax	(2,258)	397
Unrealized gains/(loss) on cash flow hedges:
Unrealized holding gains arising during the period	741	865
Reclassification adjustment for gains included in net income	(31)
Before tax	710	865
Tax effect	(209)	(353)
Net of tax	501	512
Total other comprehensive income/(loss)	(1,757)	909
Total comprehensive income	$ 9,177	$ 8,891

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Surplus [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income/(Loss), Net of Tax [Member]	Total
Balance at Dec. 31, 2016					$ (1,531)
Net income						$ 7,982
Comprehensive loss					909	909
Balance at Mar. 31, 2017					(622)
Balance at Dec. 31, 2017	$ 15,858	$ 283,552	$ (8,988)	$ 114,468	(1,212)	$ 403,678
Shares outstanding at Dec. 31, 2017	18,619,634					18,619,634
Net income				10,807		$ 10,807
Comprehensive loss					(1,757)	(1,757)
Cumulative adjustment for equity security (ASU 2016-01)				(127)	127
Restricted stock units issued 83,659 shares	$ 70	(70)
Restricted stock units issued 83,659 shares, shares	83,659
Restricted stock awards forfeitures, (92,767) shares	$ (77)	77
Restricted stock awards forfeitures (92,767) shares, shares	(92,767)
Restricted stock units/awards repurchased on vesting to pay taxes, (38,512) shares	$ (32)	(1,305)				(1,337)
Restricted stock units/awards repurchased on vesting to pay taxes, (38,512) shares, shares	(38,512)
Amortization of restricted awards/units		976				976
Cash dividends declared on common stock (0.05 per share)				(853)		(853)
Common stock options exercised, 6,150 net of 1,541 used to exercise, 4,609 shares	$ 5	47				52
Common stock options exercised, 6,150 net of 1,541 used to exercise, 4,609 shares, shares	4,609
Sales of shares (Dividend Reinvestment Program), 317,302 shares	$ 264	10,355				10,619
Sales of shares (Dividend Reinvestment Program), 317,302 shares, shares	317,302
Issuance of shares for Employee Stock Purchase Plan, 6,363 shares	$ 6	215				221
Issuance of shares for Employee Stock Purchase Plan, 6,363 shares, shares	6,363
Issuance of common stock for acquisition 20,826 shares	$ 17	(17)
Issuance of common stock for acquisition 20,826 shares, shares	20,826
Balance at Mar. 31, 2018	$ 16,111	$ 293,830	$ (8,988)	$ 124,295	$ (2,842)	$ 422,406
Shares outstanding at Mar. 31, 2018	18,921,114					18,921,114

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical)	3 Months Ended
	Mar. 31, 2018$ / shares
Statement of Stockholders' Equity [Abstract]
Cash dividends declared on common stock, per share	$ 0.05

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
OPERATING ACTIVITIES:
Net income		$ 10,807	$ 7,982
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		799	787
Amortization of premium and accretion of discount on securities, net		368	399
Amortization of restricted stock		976	814
Amortization of intangible		180	31
Amortization of subordinated debt costs		55	32
Provision of loan and lease losses		1,250	1,600
Deferred tax expense/(benefit)		391	(596)
Stock-based compensation and employee stock purchase plan expense		53	35
Fair value adjustment for equity security		78
Loans originated for sale	[1]	(10,875)	(4,494)
Proceeds from sales of loans held for sale	[1]	8,752	6,157
Gain on loans held for sale	[1]	(125)	(202)
Increase in cash surrender value of life insurance, net		(193)	(186)
Decrease in accrued interest receivable		2,146	1,330
Decrease in other assets		1,744	8,715
(Decrease)/increase in accrued expenses, capital lease obligations and other liabilities		(2,324)	1,104
NET CASH PROVIDED BY OPERATING ACTIVITIES		14,082	23,508
INVESTING ACTIVITIES:
Principal repayments, maturities and calls of securities available for sale		15,817	17,828
Redemptions for FHLB & FRB stock		20,846	450
Purchase of securities available for sale		(38,912)	(12,435)
Purchase of FHLB & FRB stock		(31,171)	(2,073)
Net increase in loans, net of participations sold		(3,851)	(127,841)
Purchase of premises and equipment		(246)	(529)
NET CASH USED IN INVESTING ACTIVITIES		(37,517)	(124,600)
FINANCING ACTIVITIES:
Net (decrease)/increase in deposits		(146,198)	18,807
Net increase in overnight borrowings se in overnight borrowings		216,000	34,550
Repayments of Federal Home Loan Bank advances		(15,000)	(3,000)
Dividends paid on common stock		(853)	(863)
Exercise of Stock Options, net of stock swaps		52	184
Restricted stock repurchased on vesting to pay taxes		(1,337)	(1,323)
Sales of common shares (Dividend Reinvestment Program)		10,619	8,839
Issuance of shares for employee stock purchase plan		221	171
NET CASH PROVIDED BY IN FINANCING ACTIVITIES		63,504	57,365
Net increase/(decrease) in cash and cash equivalents		40,069	(43,727)
Cash and cash equivalents at beginning of period		113,447	162,691
Cash and cash equivalents at end of period		153,516	118,964
Cash paid during the year for:
Interest		6,917	5,051
Income tax, net		529	749
Transfer of loans to other real estate owned			$ 137
[1]	Includes mortgage loans originated with the intent to sell which are carried at fair value. In addition, this includes the guaranteed portion of SBA loans which are carried at the lower of cost or fair value.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Certain information and footnote disclosures normally included in the audited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the period ended December 31, 2017 for Peapack-Gladstone Financial Corporation (the “Corporation” or the “Company”). In the opinion of the management of the Corporation, the accompanying unaudited Consolidated Interim Financial Statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of March 31, 2018, the results of operations and comprehensive income for the three months ended March 31, 2018 and 2017, shareholders’ equity for the three months ended March 31, 2018 and cash flow statements for the three months ended March 31, 2018 and 2017. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for any future period. Principles of Consolidation and Organization: Basis of Financial Statement Presentation Segment Information The Banking segment includes commercial, commercial real estate, multifamily, residential and consumer lending activities; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support services. Peapack-Gladstone Bank’s Private Wealth Management Division includes: asset management services provided for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian; corporate trust services including services as trustee for pension and profit sharing plans; and other financial planning and advisory services. This segment also includes the activity from the Delaware subsidiary, PGB Trust and Investments of Delaware, MCM and Quadrant. Income is recognized as earned. Cash and Cash Equivalents: Interest-Earning Deposits in Other Financial Institutions Securities Interest income includes amortization of purchase premiums and discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated and premiums on callable debt securities which will be amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant. For securities in an unrealized loss position, Management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) other-than-temporary impairment related to credit loss, which must be recognized in the income statement and 2) other-than-temporary impairment related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock: The Bank is also a member of the Federal Reserve Bank System and required to own a certain amount of FRB stock. FRB stock is carried at cost and classified as a restricted security. Both cash and stock dividends are reported as income. Loans Held for Sale: Mortgage loans held for sale are generally sold with servicing rights released; therefore, no servicing rights are recorded. Gains and losses on sales of mortgage loans, shown as gain on sale of loans at fair value on the Statements of Income, are based on the difference between the selling price and the carrying value of the related loan sold. SBA loans originated with the intent to sell in the secondary market are carried at the lower of cost or fair value. SBA loans are generally sold with the servicing rights retained. Gains and losses on the sale of SBA loans are based on the difference between the selling price and the carrying value of the related loan sold. Total SBA loans serviced totaled $20.0 million and $20.1 million as of March 31, 2018 and December 31, 2017, respectively. SBA loans held for sale totaled $3.1 million and $187 thousand at March 31, 2018 and December 31, 2017, respectively. Loans originated with the intent to hold and subsequently transferred to loans held for sale are carried at the lower of cost or fair value. These are loans that the Company no longer has the intent to hold for the foreseeable future. Loans: Loans are considered past due when they are not paid in accordance with contractual terms. The accrual of income on loans, including impaired loans, is discontinued if, in the opinion of Management, principal or interest is not likely to be paid in accordance with the terms of the loan agreement, or when principal or interest is past due 90 days or more and collateral, if any, is insufficient to cover principal and interest. All interest accrued but not received for loans placed on nonaccrual are reversed against interest income. Payments received on nonaccrual loans are recorded as principal payments. A nonaccrual loan is returned to accrual status only when interest and principal payments are brought current and future payments are reasonably assured, generally when the Bank receives contractual payments for a minimum of six months. Commercial loans are generally charged off after an analysis is completed which indicates that collectability of the full principal balance is in doubt. Consumer loans are generally charged off after they become 120 days past due. Subsequent payments are credited to income only if collection of principal is not in doubt. If principal and interest payments are brought contractually current and future collectability is reasonably assured, loans are returned to accrual status. Nonaccrual mortgage loans are generally charged off when the value of the underlying collateral does not cover the outstanding principal balance. The majority of the Company’s loans are secured by real estate in New Jersey and New York. Allowance for Loan and Lease Losses: The allowance consists of specific and general components. The specific component of the allowance relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by Management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans are individually evaluated for impairment when they are classified as substandard by Management. If a loan is considered impaired, a portion of the allowance may be allocated so that the loan is reported, net, of the present value of estimated future cash flows using the loan’s existing rate or if repayment is expected solely from the underlying collateral, the loan principal balance is compared to the fair value of collateral less estimated disposition costs to determine the need, if any, for a charge off. A troubled debt restructuring (“TDR”) is a modified loan with concessions made by the lender to a borrower who is experiencing financial difficulty. TDRs are impaired and are generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is a collateral dependent loan, the loan is reported, net, of the fair value of the collateral, less estimated disposition costs. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan and lease losses. The general component of the allowance covers non-impaired loans and is based primarily on the Bank’s historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experience by the Company on a weighted average basis over the previous three years. This actual loss experience is adjusted by other qualitative factors based on the risks present for each portfolio segment. These qualitative factors include consideration of the following: levels of and trends in delinquencies and impaired loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; ability and depth of lending management and other relevant staffing and experience; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. For loans that are graded as non-impaired, the Company allocates a higher general reserve percentage than pass-rated loans using a multiple that is calculated annually through a migration analysis. At March 31, 2018 and at December 31, 2017 the multiple was 4.0 times for non-impaired substandard loans and 2.0 times for non-impaired special mention loans. In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on Federal call report codes, which are based on collateral or purpose. The following portfolio classes have been identified: Primary Residential Mortgages Home Equity Lines of Credit Junior Lien Loan on Residence Multifamily and Commercial Real Estate Loans Commercial and Industrial Loans Leasing and Equipment Finance Asset risk in PCC’s portfolio is generally recognized through changes to loan income, or though changes to lease related income streams due to fluctuations in lease rates. Changes to lease income can occur when the existing lease contract expires, the asset comes off lease or the business seeks to enter a new lease agreement. Asset risk may also change depreciation, resulting from changes in the residual value of the operating lease asset or through impairment of the asset carrying value, which can occur at any time during the life of the asset. Credit risk in PCC’s portfolio generally results from the potential default of borrowers or lessees, which may be driven by customer specific or broader industry related conditions. Credit losses can impact multiple parts of the income statement including loss of interest/lease/rental income and/or via higher costs and expenses related to the repossession, refurbishment, re-marketing and or re-leasing of assets. Consumer and Other Derivatives: 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 fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. 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 terminated, 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 which the hedged transactions will affect earnings. Stock-Based Compensation: Upon adoption of Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting” the Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. For the three months ended March 31, 2018, there was no unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company’s stock incentive plans. For the three months ended March 31, 2017, the Company recorded $5 thousand of unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company’s stock incentive plans. There was no recognized tax benefit for the three months ended March 31, 2018 and 2017. For the Company’s stock option plans, changes in options outstanding during the three months ended March 31, 2018 were as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Term (In thousands) Balance, January 1, 2018 120,083 14.41 Exercised (6,150 ) 17.27 Expired (315 ) 28.10 Forfeited (2,950 ) 23.66 Balance, March 31, 2018 110,668 13.97 3.33 years $ 2,149 Vested and expected to vest 110,668 13.97 3.33 years $ 2,149 Exercisable at March 31, 2018 110,668 13.97 3.33 years $ 2,149 The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the first quarter of 2018 and the exercise price, multiplied by the number of in-the-money options). The Company’s closing stock price on March 31, 2018 was $33.39. There were no stock options granted in the three months ended March 31, 2018. The Company has previously granted performance based and service based restricted stock awards/units. Service based awards/units vest ratably over a one, three or five-year period. There were 225,148 restricted stock units granted in the first quarter of 2018. The performance based awards that were granted in previous periods are dependent upon the Company meeting certain performance criteria and cliff vest at the end of the performance period. During the fourth quarter of 2015, the Company concluded that the performance targets will no longer be met. The Company did not meet the performance criteria by the end of the performance period at end of year 2017. Therefore, as of March 31, 2018, the Company forfeited 92,767 performance based awards. Changes in non-vested shares dependent on performance criteria for the three months ended March 31, 2018 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2018 92,767 $ 18.12 Granted — — Vested — — Forfeited (92,767 ) 18.12 Balance, March 31, 2018 — $ — Changes in service based restricted stock awards/units for the three months ended March 31, 2018 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2018 308,625 $ 23.96 Granted 225,861 35.15 Vested (133,747 ) 21.84 Forfeited (99 ) 30.08 Balance, March 31, 2018 400,640 $ 30.97 As of March 31, 2018, there was $436 thousand of total unrecognized compensation cost related to service based awards. That cost is expected to be recognized over a weighted average period of 0.55 years. As of March 31, 2018, there was $10.6 million of total unrecognized compensation cost related to service based units. That cost is expected to be recognized over a weighted average period of 1.43 years. Stock compensation expense recorded for the first quarters of 2018 and 2017 totaled $1.1 million and $835 thousand, respectively. Employee Stock Purchase Plan (“ESPP”): The Company recorded $53 thousand and $30 thousand of expense in salaries and employee benefits expense for the three months ended March 31, 2018 and 2017, respectively, related to the ESPP. Total shares issued under the ESPP during the first quarters of 2018 and 2017 were 6,363 and 5,334, respectively. Earnings per share – Basic and Diluted: Three Months Ended March 31, (Dollars in thousands, except per share data) 2018 2017 Net income to shareholders $ 10,807 $ 7,982 Basic weighted-average shares outstanding 18,608,309 17,121,631 Plus: common stock equivalents 300,383 317,276 Diluted weighted-average shares outstanding 18,908,692 17,438,907 Net income per share Basic $ 0.58 $ 0.47 Diluted 0.57 0.46 As of March 31, 2018 and March 31, 2017, all stock options and warrants were included in the computation of diluted earnings per share because they were all dilutive. Income Taxes: The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its financial statements or tax returns. The measurement of deferred tax assets and liabilities is based on the enacted tax rates. Such tax assets and liabilities are adjusted for the effect of a change in tax rates in the period of enactment. The Company recognizes a tax position 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 percent likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company is no longer subject to examination by the U.S. Federal tax authorities for years prior to 2014 or by New Jersey tax authorities for years prior to 2013. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Loss Contingencies: Restrictions on Cash: Comprehensive Income: Transfers of Financial Assets: Goodwill and Other Intangible Assets: Other intangible assets which primarily consist of customer relationship intangible assets arising from acquisition, are amortized on an accelerated method over their estimated useful lives, which range from 5 to 15 years.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	3 Months Ended
	Mar. 31, 2018
INVESTMENT SECURITIES AVAILABLE FOR SALE [Abstract]
INVESTMENT SECURITIES AVAILABLE FOR SALE	2. INVESTMENT SECURITIES A summary of amortized cost and approximate fair value of investment securities available for sale included in the consolidated statements of condition as of March 31, 2018 and December 31, 2017 follows: March 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. government-sponsored agencies $ 68,415 $ 1 $ (1,540 ) $ 66,876 Mortgage-backed securities – residential 244,780 449 (4,389 ) 240,840 SBA pool securities 5,052 — (57 ) 4,995 State and political subdivisions 24,041 52 (207 ) 23,886 Corporate bond 3,000 69 — 3,069 Single-issuer trust preferred security 2,999 — (112 ) 2,887 Total $ 348,287 $ 571 $ (6,305 ) $ 342,553 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. government-sponsored agencies $ 44,476 $ — $ (775 ) $ 43,701 Mortgage-backed securities – residential 244,913 583 (2,380 ) 243,116 SBA pool securities 5,262 — (57 ) 5,205 State and political subdivisions 24,910 87 (129 ) 24,868 Corporate bond 3,000 82 — 3,082 Single-issuer trust preferred security 2,999 — (162 ) 2,837 CRA investment fund 5,000 — (176 ) 4,824 Total $ 330,560 $ 752 $ (3,679 ) $ 327,633 The following tables present the Corporation’s available for sale securities with continuous unrealized losses and the approximate fair value of these investments as of March 31, 2018 and December 31, 2017. March 31, 2018 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses U.S. government- sponsored agencies $ 40,549 $ (872 ) $ 21,326 $ (668 ) $ 61,875 $ (1,540 ) Mortgage-backed securities-residential 142,698 (2,311 ) 67,884 (2,078 ) 210,582 (4,389 ) SBA pool securities — — 4,995 (57 ) 4,995 (57 ) State and political subdivisions 5,952 (155 ) 3,720 (52 ) 9,672 (207 ) Single-issuer trust preferred security — — 2,887 (112 ) 2,887 (112 ) Total $ 189,199 $ (3,338 ) $ 100,812 $ (2,967 ) $ 290,011 $ (6,305 ) December 31, 2017 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses U.S. government- sponsored agencies $ 32,166 $ (317 ) $ 11,535 $ (458 ) $ 43,701 $ (775 ) Mortgage-backed securities-residential 116,774 (1,000 ) 71,646 (1,380 ) 188,420 (2,380 ) SBA pool securities — — 5,205 (57 ) 5,205 (57 ) State and political subdivisions 5,628 (97 ) 3,760 (32 ) 9,388 (129 ) Single-issuer trust preferred security — — 2,837 (162 ) 2,837 (162 ) CRA investment fund — — 4,824 (176 ) 4,824 (176 ) Total $ 154,568 $ (1,414 ) $ 99,807 $ (2,265 ) $ 254,375 $ (3,679 ) Management believes that the unrealized losses on investment securities available for sale are temporary and are due to interest rate fluctuations and/or volatile market conditions rather than the creditworthiness of the issuers. As of March 31, 2018, the Company does not intend to sell these securities nor is it likely that it will be required to sell the securities before their anticipated recovery; therefore, none of the securities in an unrealized loss position were determined to be other-than-temporarily impaired. During the first quarter of 2018, the Company adopted ASU 2016-01 “Financial Instruments” which resulted in the reclassification of the Company’s investment in the CRA investment fund from available for sale to equity securities. The Company recognized a loss of $78 thousand for the three months ended March 31, 2018. This amount is included in securities losses on the Consolidated Statements of Income.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
LOANS	3. LOANS Loans outstanding, excluding those held for sale, by general ledger classification, as of March 31, 2018 and December 31, 2017, consisted of the following: % of % of March 31, Totals December 31, Total (In thousands) 2018 Loans 2017 Loans Residential mortgage $ 567,541 15.30 % $ 576,356 15.56 % Multifamily mortgage 1,366,712 36.86 1,388,958 37.49 Commercial mortgage 643,761 17.36 626,656 16.92 Commercial loans 993,713 26.80 958,294 25.87 Home equity lines of credit 64,570 1.74 67,497 1.82 Consumer loans, including fixed rate home equity loans 71,580 1.93 86,277 2.33 Other loans 420 0.01 402 0.01 Total loans $ 3,708,297 100.00 % $ 3,704,440 100.00 % In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on federal call report codes. The following portfolio classes have been identified as of March 31, 2018 and December 31, 2017: % of % of March 31, Totals December 31, Total (In thousands) 2018 Loans 2017 Loans Primary residential mortgage $ 596,718 16.10 % $ 605,569 16.35 % Home equity lines of credit 64,570 1.74 67,497 1.82 Junior lien loan on residence 7,147 0.19 7,073 0.19 Multifamily property 1,366,712 36.88 1,388,958 37.51 Owner-occupied commercial real estate 251,165 6.78 253,492 6.85 Investment commercial real estate 883,775 23.85 874,098 23.61 Commercial and industrial 360,127 9.72 316,294 8.54 Lease Financing 104,606 2.82 90,052 2.43 Farmland/agricultural production 156 0.01 160 0.01 Commercial construction loans 91 — 92 0.01 Consumer and other loans 70,813 1.91 99,247 2.68 Total loans $ 3,705,880 100.00 % $ 3,702,532 100.00 % Net deferred costs 2,417 1,908 Total loans including net deferred costs $ 3,708,297 $ 3,704,440 The following tables present the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance for loan and lease losses (ALLL) as of March 31, 2018 and December 31, 2017: March 31, 2018 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALL Primary residential mortgage $ 9,454 $ 374 $ 587,264 $ 4,029 $ 596,718 $ 4,403 Home equity lines of credit 26 — 64,544 192 64,570 192 Junior lien loan on residence 50 — 7,097 16 7,147 16 Multifamily property — — 1,366,712 9,140 1,366,712 9,140 Owner-occupied commercial real estate 2,231 — 248,934 2,364 251,165 2,364 Investment commercial real estate 9,462 — 874,313 12,367 883,775 12,367 Commercial and industrial — — 360,127 7,753 360,127 7,753 Lease financing — — 104,606 1,036 104,606 1,036 Secured by farmland and agricultural production — — 156 2 156 2 Commercial construction — — 91 1 91 1 Consumer and other — — 70,813 422 70,813 422 Total ALLL $ 21,223 $ 374 $ 3,684,657 $ 37,322 $ 3,705,880 $ 37,696 December 31, 2017 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALLL Primary residential mortgage $ 9,802 $ 482 $ 595,767 $ 3,603 $ 605,569 $ 4,085 Home equity lines of credit 27 — 67,470 221 67,497 221 Junior lien loan on residence 52 — 7,021 12 7,073 12 Multifamily property — — 1,388,958 10,007 1,388,958 10,007 Owner-occupied commercial real estate 2,503 — 250,989 2,385 253,492 2,385 Investment commercial real estate 10,681 40 863,417 11,893 874,098 11,933 Commercial and industrial — — 316,294 6,563 316,294 6,563 Lease financing — — 90,052 884 90,052 884 Secured by farmland and agricultural production production — — 160 — 160 — Commercial construction — — 92 1 92 1 Consumer and other — — 99,247 349 99,247 349 Total ALLL $ 23,065 $ 522 $ 3,679,467 $ 35,918 $ 3,702,532 $ 36,440 Impaired loans include nonaccrual loans of $13.3 million at March 31, 2018 and $13.5 million at December 31, 2017. Impaired loans also include performing TDR loans of $7.9 million at March 31, 2018 and $9.5 million at December 31, 2017. At March 31, 2018, the allowance allocated to TDR loans totaled $278 thousand, of which $170 thousand was allocated to nonaccrual loans. At December 31, 2017, the allowance allocated to TDR loans totaled $423 thousand of which $173 thousand was allocated to nonaccrual loans. All accruing TDR loans were paying in accordance with restructured terms as of March 31, 2018. The Company has not committed to lend additional amounts as of March 31, 2018 to customers with outstanding loans that are classified as TDR loans. The following tables present loans individually evaluated for impairment by class of loans as of March 31, 2018 and December 31, 2017 (The average impaired loans on the following tables represent year to date impaired loans.): March 31, 2018 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 9,658 $ 8,308 $ — $ 8,495 Owner-occupied commercial real estate 3,001 2,231 — 2,323 Investment commercial real estate 9,526 9,462 — 10,260 Home equity lines of credit 28 26 — 26 Junior lien loan on residence 109 50 — 50 Total loans with no related allowance $ 22,322 $ 20,077 $ — $ 21,154 With related allowance recorded: Primary residential mortgage $ 1,167 $ 1,146 $ 374 $ 1,150 Total loans with related allowance $ 1,167 $ 1,146 $ 374 $ 1,150 Total loans individually evaluated for Impairment $ 23,489 $ 21,223 $ 374 $ 22,304 December 31, 2017 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 9,607 $ 8,388 $ — $ 10,847 Owner-occupied commercial real estate 3,238 2,503 — 1,568 Investment commercial real estate 9,564 9,500 — 9,971 Home equity lines of credit 29 27 — 38 Junior lien loan on residence 110 52 — 92 Total loans with no related allowance $ 22,548 $ 20,470 $ — $ 22,516 With related allowance recorded: Primary residential mortgage $ 1,435 $ 1,414 $ 482 $ 1,399 Investment commercial real estate 1,181 1,181 40 1,198 Total loans with related allowance $ 2,616 $ 2,595 $ 522 $ 2,597 Total loans individually evaluated for impairment $ 25,164 $ 23,065 $ 522 $ 25,113 Interest income recognized on impaired loans for the quarters ended March 31, 2018 and 2017 was not material. The Company did not recognize any income on nonaccruing impaired loans for the three months ended March 31, 2018 and 2017. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2018 and December 31, 2017: March 31, 2018 Loans Past Due Over 90 Days And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 6,114 $ — Home equity lines of credit 5 — Junior lien loan on residence 50 — Owner-occupied commercial real estate 2,232 — Investment commercial real estate 4,913 — Total $ 13,314 $ — December 31, 2017 Loans Past Due Over 90 Days And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 6,056 $ — Home equity lines of credit 6 — Junior lien loan on residence 52 — Owner-occupied commercial real estate 2,503 — Investment commercial real estate 4,913 — Total $ 13,530 $ — The following tables present the aging of the recorded investment in past due loans as of March 31, 2018 and December 31, 2017 by class of loans, excluding nonaccrual loans: March 31, 2018 30-59 60-89 Greater Than Days Days 90 Days Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 638 $ — $ — $ 638 Junior lien loan on residence 16 — — 16 Commercial and industrial 20 — — 20 Total $ 674 $ — $ — $ 674 December 31, 2017 30-59 60-89 Greater Than Days Days 90 Days Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 216 $ — $ — $ 216 Consumer and other 30 — — 30 Total $ 246 $ — $ — $ 246 Credit Quality Indicators: The Company places all commercial loans into various credit risk rating categories based on an assessment of the expected ability of the borrowers to properly service their debt. The assessment considers numerous factors including, but not limited to, debt service capacity, current financial information on the borrower, historical payment experience, strength of any guarantor, nature of and value of any collateral, acceptability of the loan structure and documentation, relevant public information and current economic trends. This credit risk rating analysis is performed when the loan is initially underwritten and then annually based on set criteria in the loan policy. In addition, the Bank has engaged an independent loan review firm to validate risk ratings and to ensure compliance with our policies and procedures. This review of the following types of loans is performed quarterly: · A majority of relationships or new lending to existing relationships greater than $1,000,000; · All criticized and classified rated borrowers with relationship exposure of more than $500,000; · A random sample of borrowers with relationships less than $1,000,000; · All leveraged loans; · At least two borrowing relationships managed by each commercial banker; · Any new Regulation "O" loan commitments over $1,000,000; · Any other credits requested by Bank senior management or a member of the Board of Directors and any borrower for which the reviewer determines a review is warranted based upon knowledge of the portfolio, local events, industry stresses etc. The Company uses the following regulatory definitions for criticized and classified risk ratings: Special Mention: Substandard: Doubtful: Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. Loans that are considered to be impaired are individually evaluated for potential loss and allowance adequacy. Loans not deemed impaired are collectively evaluated for potential loss and allowance adequacy. As of March 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 586,522 $ 687 $ 9,509 $ — Home equity lines of credit 64,544 — 26 — Junior lien loan on residence 7,097 — 50 — Multifamily property 1,351,352 14,989 371 — Owner-occupied commercial real estate 246,464 1,088 3,613 — Investment commercial real estate 834,991 9,236 39,548 — Commercial and industrial 334,544 24,842 741 — Lease financing 104,606 — — — Farmland 156 — — — Commercial construction — 91 — — Consumer and other loans 68,726 — 2,087 — Total $ 3,599,002 $ 50,933 $ 55,945 $ — As of December 31, 2017, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 594,846 $ 866 $ 9,857 $ — Home equity lines of credit 67,470 — 27 — Junior lien loan on residence 7,021 — 52 — Multifamily property 1,371,825 16,755 378 — Owner-occupied commercial real estate 249,003 837 3,652 — Investment commercial real estate 827,558 23,377 23,163 — Commercial and industrial 306,341 7,488 2,465 — Lease financing 90,052 — — Secured by farmland and agricultural 160 — — — Commercial construction — 92 — — Consumer and other loans 97,135 — 2,112 — Total $ 3,611,411 $ 49,415 $ 41,706 $ — At March 31, 2018, $21.1 million of substandard loans were also considered impaired compared to December 31, 2017, when $21.8 million of substandard loans were also impaired. The activity in the allowance for loan and lease losses for the three months ended March 31, 2018 is summarized below: January 1, March 31, 2018 2018 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 4,085 $ (77 ) $ — $ 395 $ 4,403 Home equity lines of credit 221 — 2 (31 ) 192 Junior lien loan on residence 12 — 9 (5 ) 16 Multifamily property 10,007 — — (867 ) 9,140 Owner-occupied commercial real estate 2,385 — 66 (87 ) 2,364 Investment commercial real estate 11,933 — — 434 12,367 Commercial and industrial 6,563 — 16 1,174 7,753 Lease financing 884 — — 152 1,036 Secured by farmland and agricultural — — — 2 2 Commercial construction 1 — — — 1 Consumer and other loans 349 (11 ) 1 83 422 Total ALLL $ 36,440 $ (88 ) $ 94 $ 1,250 $ 37,696 The activity in the allowance for loan and lease losses for the three months ended March 31, 2017 is summarized below: January 1, March 31, 2017 2017 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 3,666 $ (138 ) $ 1 $ 399 $ 3,928 Home equity lines of credit 233 — 4 (6 ) 231 Junior lien loan on residence 16 (57 ) 6 50 15 Multifamily property 11,192 — — 575 11,767 Owner-occupied commercial real estate 1,774 — — 461 2,235 Investment commercial real estate 10,909 — 4 (30 ) 10,883 Commercial and industrial 4,164 (24 ) 9 163 4,312 Secured by farmland and agricultural production 2 — — — 2 Commercial construction 9 — — (8 ) 1 Consumer and other loans 243 (3 ) — (4 ) 236 Total ALLL $ 32,208 $ (222 ) $ 24 $ 1,600 $ 33,610 Troubled Debt Restructurings: The Company has allocated $278 thousand and $423 thousand of specific reserves on TDRs to customers whose loan terms have been modified in TDRs as of March 31, 2018 and December 31, 2017, respectively. There were no unfunded commitments to lend additional amounts to customers with outstanding loans that are classified as TDRs. The terms of certain loans were modified as TDRs when one or a combination of the following occurred: a reduction of the stated interest rate of the loan was reduced; the maturity date was extended; or some other modification or extension occurred which would not be readily available in the market. No loans were modified as TDRs during the three-month period ended March 31, 2018. The following table presents loans by class modified as TDRs during the three-month period ended March 31, 2017: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Contracts Investment Investment Primary residential mortgage 3 $ 611 $ 611 Total 3 $ 611 $ 611 The identification of the TDRs did not have a significant impact on the allowance for loan and lease losses. The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at March 31, 2018: Number of Recorded (Dollars in thousands) Contracts Investment Primary residential mortgage 1 $ 336 Total 1 $ 336 There were no loans that were modified as TDRs for which there was a payment default, within twelve months of modification, during the three months ended March 31, 2017. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. The modification of the terms of such loans may include one or more of the following: (1) a reduction of the stated interest rate of the loan to a rate that is lower than the current market rate for new debt with similar risk; (2) an extension of an interest only period for a predetermined period of time; (3) an extension of the maturity date; or (4) an extension of the amortization period over which future payments will be computed. At the time a loan is restructured, the Bank performs a full re-underwriting analysis, which includes, at a minimum, obtaining current financial statements and tax returns, copies of all leases, and an updated independent appraisal of the property. A loan will continue to accrue interest if it can be reasonably determined that the borrower should be able to perform under the modified terms, that the loan has not been chronically delinquent (both to debt service and real estate taxes) or in nonaccrual status since its inception, and that there have been no charge-offs on the loan. Restructured loans with previous charge-offs would not accrue interest at the time of the TDR. At a minimum, six months of contractual payments would need to be made on a restructured loan before returning it to accrual status. Once a loan is classified as a TDR, the loan is reported as a TDR until the loan is paid in full, sold or charged-off. In rare circumstances, a loan may be removed from TDR status if it meets the requirements of ASC 310-40-50-2.

DEPOSITS

DEPOSITS	3 Months Ended
	Mar. 31, 2018
Deposits:
DEPOSITS	4. DEPOSITS Certificates of deposit, excluding brokered certificates of deposit over $250,000, totaled $159.8 million and $160.0 million at March 31, 2018 and December 31, 2017, respectively. The following table sets forth the details of total deposits as of March 31, 2018 and December 31, 2017: March 31, December 31, 2018 2017 (In thousands) $ % $ % Noninterest-bearing demand deposits $ 536,054 15.09 % $ 539,304 14.59 % Interest-bearing checking (1) 1,089,980 30.68 1,152,483 31.16 Savings 126,026 3.55 119,556 3.23 Money market 1,006,540 28.34 1,091,385 29.51 Certificates of deposit 540,942 15.23 543,035 14.68 Subtotal deposits 3,299,542 92.89 3,445,763 93.17 Interest-bearing demand - Brokered 180,000 5.07 180,000 4.87 Certificates of deposit - Brokered 72,614 2.04 72,591 1.96 Total deposits $ 3,552,156 100.00 % $ 3,698,354 100.00 % (1) Interest-bearing checking includes $369.8 million at March 31, 2018 and $359.9 million at December 31, 2017 of reciprocal balances in the Reich & Tang or Promontory Demand Deposit Marketplace program. The scheduled maturities of certificates of deposit, including brokered certificates of deposit, as of March 31, 2018 are as follows: (In thousands) 2018 $ 266,979 2019 179,831 2020 65,767 2021 18,040 2022 15,828 Over 5 Years 67,111 Total $ 613,556

FEDERAL HOME LOAN BANK ADVANCES

FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS	5. FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS Advances from the FHLB totaled $22.9 million with a weighted average interest rate of 2.03 percent and $37.9 million with a weighted average interest rate of 2.20 percent at March 31, 2018 and December 31, 2017, respectively. At March 31, 2018, advances totaling $22.9 million with a weighted average interest rate of 2.03 percent had fixed maturity dates. The fixed maturity date advances at December 31, 2017 totaled $28.9 million with a weighted average interest rate of 1.96 percent. The fixed rate advances are secured by blanket pledges of certain 1-4 family residential mortgages totaling $523.6 million and multifamily mortgages totaling $1.1 billion at March 31, 2018, while at December 31, 2017 the fixed rate advances are secured by blanket pledges of certain 1-4 family residential mortgages totaling $550.0 million and multifamily mortgages totaling $1.1 billion. At December 31, 2017, the Company had $9.0 million in variable rate advances, with a weighted average interest rate of 2.95 percent, that are noncallable for two or three years and then callable quarterly with final maturities of ten years from the original date of the advance. All of these advances are beyond their initial noncallable periods. The final maturity dates of the FHLB advances are scheduled as follows: (In thousands) 2018 $ 19,898 2019 3,000 Total $ 22,898 There were overnight borrowings of $216.0 million as of March 31, 2018 with a weighted average rate of 2.0 percent at the FHLB. There were no overnight borrowings as of December 31, 2017. At March 31, 2018, unused short-term overnight borrowing commitments totaled $1.1 billion from FHLB, $22.0 million from correspondent banks and $839.0 million at the FRB.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
BUSINESS SEGMENTS	6. BUSINESS SEGMENTS The Corporation assesses its results among two operating segments, Banking and Peapack-Gladstone Bank’s Private Wealth Management Division. Management uses certain methodologies to allocate income and expense to the business segments. A funds transfer pricing methodology is used to assign interest income and interest expense. Certain indirect expenses are allocated to segments. These include support unit expenses such as technology and operations and other support functions. Taxes are allocated to each segment based on the effective rate for the period shown. Banking The Banking segment includes commercial, commercial real estate, multifamily, residential and consumer lending activities; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support and sales. Private Wealth Management Division Peapack-Gladstone Bank’s Private Wealth Management Division, including PGB Trust & Investments of Delaware, MCM and Quadrant, which includes asset management services provided for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian; corporate trust services including services as trustee for pension and profit sharing plans; and other financial planning and advisory services. The following tables present the statements of income and total assets for the Corporation’s reportable segments for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 Wealth Management (In thousands) Banking Division Total Net interest income $ 26,848 $ 1,545 $ 28,393 Noninterest income 1,627 8,588 10,215 Total income 28,475 10,133 38,608 Provision for loan and lease losses 1,250 — 1,250 Compensation and benefits 10,331 4,248 14,579 Premises and equipment expense 2,839 431 3,270 FDIC expense 580 — 580 Other noninterest expense 2,660 2,248 4,908 Total noninterest expense 17,660 6,927 24,587 Income before income tax expense 10,815 3,206 14,021 Income tax expense 2,479 735 3,214 Net income $ 8,336 $ 2,471 $ 10,807 Total assets for period end $ 4,278,010 $ 58,484 $ 4,336,494 Three Months Ended March 31, 2017 Wealth Management (In thousands) Banking Division Total Net interest income $ 24,031 $ 1,560 $ 25,591 Noninterest income 2,094 4,925 7,019 Total income 26,125 6,485 32,610 Provision for loan and lease losses 1,600 — 1,600 Compensation and benefits 9,314 2,599 11,913 Premises and equipment expense 2,537 279 2,816 FDIC Expense 686 — 686 Other noninterest expense 2,016 1,873 3,889 Total noninterest expense 16,153 4,751 20,904 Income before income tax expense 9,972 1,734 11,706 Income tax expense 3,173 551 3,724 Net income $ 6,799 $ 1,183 $ 7,982 Total assets for period end $ 3,901,134 $ 46,428 $ 3,947,562

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE	7. FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair 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 company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability. The Company used the following methods and significant assumptions to estimate the fair value: Investment Securities: Loans Held for Sale, at Fair Value: Derivatives Impaired Loans: Other Real Estate Owned: Appraisals for both collateral-dependent impaired loans and other real estate owned 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 Management. Once received, a third party conducts a review of the appraisal for compliance with the Uniform Standards of Professional Appraisal Practice and appropriate analysis methods for the type of property. Subsequently, a member of the Credit Department reviews 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. Appraisals on collateral dependent impaired loans and other real estate owned (consistent for all loan types) are obtained on an annual basis, unless a significant change in the market or other factors warrants a more frequent appraisal. On an annual basis, Management compares the actual selling price of any collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value for other properties. The most recent analysis performed indicated that a discount up to 15 percent should be applied to appraisals on properties. The discount is determined based on the nature of the underlying properties, aging of appraisals and other factors. For each collateral-dependent impaired loan, we consider other factors, such as certain indices or other market information, as well as property specific circumstances to determine if an adjustment to the appraised value is needed. In situations where there is evidence of change in value, the Bank will determine if there is a need for an adjustment to the specific reserve on the collateral dependent impaired loans. When the Bank applies an interim adjustment, it generally shows the adjustment as an incremental specific reserve against the loan until it has received the full updated appraisal. All collateral-dependent impaired loans and other real estate owned valuations were supported by an appraisal less than 12 months old or in the process of obtaining an appraisal as of March 31, 2018. The following table summarizes, for the periods indicated, assets measured at fair value on a recurring basis, including financial assets for which the Corporation has elected the fair value option: Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Markets Significant For Other Significant Identical Observable Unobservable March 31, Assets Inputs Inputs (In thousands) 2018 (Level 1) (Level 2) (Level 3) Assets: Available for sale: U.S. government-sponsored agencies $ 66,876 $ — $ 66,876 $ — Mortgage-backed securities- residential 240,840 — 240,840 — SBA pool securities 4,995 — 4,995 — State and political subdivisions 23,886 — 23,886 — Corporate bond 3,069 — 3,069 — Single-issuer trust preferred security 2,887 — 2,887 — CRA investment fund 4,746 4,746 — — Loans held for sale, at fair value 344 — 344 — Derivatives: Cash flow hedges 2,024 — 2,024 — Loan level swaps 7,600 — 7,600 — Total $ 357,267 $ 4,746 $ 352,521 $ Liabilities: Derivatives: Cash flow hedges $ (196 ) $ — $ (196 ) $ — Loan level swaps (7,600 ) — (7,600 ) — Total $ (7,796 ) $ — $ (7,796 ) $ — Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Markets Significant For Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs (In thousands) 2017 (Level 1) (Level 2) (Level 3) Assets: Securities available for sale: U.S. government-sponsored agencies $ 43,701 $ — $ 43,701 $ — Mortgage-backed securities-residential 243,116 — 243,116 — SBA pool securities 5,205 — 5,205 — State and political subdivisions 24,868 — 24,868 — Corporate bond 3,082 — 3,082 — Single-issuer trust preferred security 2,837 — 2,837 — CRA investment fund 4,824 4,824 — — Loans held for sale, at fair value 984 — 984 — Derivatives: Cash flow hedges 1,394 — 1,394 — Loan level swaps 3,131 — 3,131 — Total $ 333,142 $ 4,824 $ 328,318 $ — Liabilities: Derivatives: Loan level swaps $ (3,131 ) $ — $ (3,131 ) $ — Total $ (3,131 ) $ — $ (3,131 ) $ — The Company has elected the fair value option for certain loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment. None of these loans are 90 days or more past due nor on nonaccrual as of March 31, 2018 and December 31, 2017. The following tables present residential loans held for sale, at fair value for the periods indicated: (In thousands) March 31, 2018 December 31, 2017 Residential loans contractual balance $ 342 $ 972 Fair value adjustment 2 12 Total fair value of residential loans held for sale $ 344 $ 984 There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2018. There were no loans measured for impairment using the fair value of collateral as of March 31, 2018 and December 31, 2017. The carrying amounts and estimated fair values of financial instruments at March 31, 2018 are as follows: Fair Value Measurements at March 31, 2018 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 153,516 $ 153,516 $ — $ — $ 153,516 Securities available for sale 342,553 — 342,553 — 342,553 CRA investment fund 4,746 4,746 — — 4,746 FHLB and FRB stock 23,703 — — — N/A Loans held for sale, at fair value 344 — 344 — 344 Loans held for sale, at lower of cost or fair value 3,075 — 3,366 — 3,366 Loans, net of allowance for loan and lease losses 3,670,601 — — 3,642,137 3,642,137 Accrued interest receivable 7,306 1,405 5,901 — 7,306 Cash flow hedges 2,024 — 2,024 — 2,024 Loan level swaps 7,600 — 7,600 — 7,600 Financial liabilities Deposits $ 3,552,156 $ 2,938,600 $ 607,416 $ — $ 3,546,016 Overnight borrowings 216,000 — 216,000 — 216,000 Federal home loan bank advances 22,898 — 22,864 — 22,864 Subordinated debt 83,079 — — 83,990 83,990 Accrued interest payable 3,406 259 1,912 1,235 3,406 Cash flow hedge 196 — 196 — 196 Loan level swap 7,600 — 7,600 — 7,600 The carrying amounts and estimated fair values of financial instruments at December 31, 2017 are as follows: Fair Value Measurements at December 31, 2017 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 113,447 $ 113,447 $ — $ — $ 113,447 Securities available for sale 327,633 4,824 322,809 — 327,633 FHLB and FRB stock 13,378 — — — N/A Loans held for sale, at fair value 984 — 984 — 984 Loans held for sale, at lower of cost or fair value 187 — 206 — 206 Loans, net of allowance for loan and lease losses 3,668,000 — — 3,649,132 3,649,132 Accrued interest receivable 9,452 — 1,041 8,411 9,452 Cash flow Hedges 1,394 — 1,394 — 1,394 Loan level swaps 3,131 — 3,131 — 3,131 Financial liabilities Deposits $ 3,698,354 $ 3,082,728 $ 612,591 $ — $ 3,695,319 Federal home loan bank advances 37,898 — 37,907 — 37,907 Subordinated debt 83,024 — — 84,150 84,150 Accrued interest payable 1,756 192 1,495 69 1,756 Loan level swaps 3,131 — 3,131 — 3,131

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	8. REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the sources of noninterest income for the periods indicated: Three Months Ended March 31, (In thousands) 2018 2017 Service charges on deposits Overdraft fees $ 181 $ 176 Interchange income 290 266 Other 360 329 Wealth management fees 8,152 4,572 Investment brokerage fees 215 246 Gains/(losses) on sales of OREO — — Other (a) 1,017 1,430 Total noninterest other income $ 10,215 $ 7,019 (a) All of the other category is outside the scope of ASC 606. The following table presents the sources of noninterest income by operating segment for the periods indicated: Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Revenue by Operating Wealth Wealth Segment Banking Management Total Banking Management Total Service charges on deposits Overdraft fees $ 181 $ — $ 181 $ 176 $ — $ 176 Interchange income 290 — 290 266 — 266 Other 360 — 360 329 — 329 Wealth management fees — 8,152 8,152 — 4,572 4,572 Investment brokerage fees — 215 215 — 246 246 Gains/(losses) on sales of OREO — — — — — — Other (a) 796 221 1,017 1,323 107 1,430 Total noninterest income $ 1,627 $ 8,588 $ 10,215 $ 2,094 $ 4,925 $ 7,019 (a) All of the other category is outside the scope of ASC 606. A description of the Company’s revenue streams accounted for under ASC 606 follows: Service charges on deposit accounts Interchange income Wealth management fees (gross) Investment brokerage fees (net) th Gains/(losses) on sales of OREO Other

OTHER OPERATING EXPENSES

OTHER OPERATING EXPENSES	3 Months Ended
	Mar. 31, 2018
Other Income and Expenses [Abstract]
OTHER OPERATING EXPENSES	9. OTHER OPERATING EXPENSES The following table presents the major components of other operating expenses for the periods indicated: Three Months Ended March 31, (In thousands) 2018 2017 Wealth management division other expense $ 702 $ 702 Professional and legal fees 1,114 862 Advertising 311 163 Other operating expenses 2,781 2,162 Total other operating expenses $ 4,908 $ 3,889

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME	10. ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME The following is a summary of the accumulated other comprehensive income/(loss) balances, net of tax, for the three months ended March 31, 2018 and 2017: Amount Other Reclassified Comprehensive Cumulative Other From Income/(Loss) Adjustment Comprehensive Accumulated Three Months Balance at For Equity Income/(Loss) Other Ended Balance at January 1, Security Before Comprehensive March 31, March 31, (In thousands) 2018 (ASU 2016-1) Reclassifications Income/(Loss) 2017 2018 Net unrealized holding loss on securities available for sale,net of tax $ (2,214 ) $ 127 $ (2,258 ) $ — $ (2,258 ) $ (4,345 ) Gains on cash flow hedges 1,002 — 525 (24 ) 501 1,503 Accumulated other comprehensive loss, net of tax $ (1,212 ) $ 127 $ (1,733 ) $ (24 ) $ (1,757 ) $ (2,842 ) Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at January 1, Before Comprehensive March 31, March 31, (In thousands) 2017 Reclassifications Income/(Loss) 2017 2017 Net unrealized holding (loss) on securities available for sale, net of tax $ (1,091 ) $ 397 $ — $ 397 $ (694 ) Gains /(loss) on cash flow hedges (440 ) 512 — 512 72 Accumulated other comprehensive loss, net of tax $ (1,531 ) $ 909 $ — $ 909 $ (622 ) The following represents the reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2017: Three Months Ended March 31, (In thousands) 2018 2017 Affected Line Item in Income Unrealized (gains) on cash flow hedge derivatives: Realized net gains on cash flow hedges $ (31 ) $ — Cash flow hedge gains, net Income tax expense 7 — Income tax expense Total reclassifications, net of tax $ (24 ) $ —

DERIVATIVES

DERIVATIVES	3 Months Ended
	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	11. DERIVATIVES The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts 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 Designated as Cash Flow Hedges: The following information about the interest rate swaps designated as cash flow hedges as of March 31, 2018 and December 31, 2017 is presented in the following table: (Dollars in thousands) March 31, 2018 December 31, 2017 Notional amount $ 180,000 $ 180,000 Weighted average pay rate 1.83 % 1.64 % Weighted average receive rate 1.58 % 1.33 % Weighted average maturity 2.76 years 2.25 years Unrealized gain, net $ 1,828 $ 1,394 Number of contracts 9 9 Net interest expense recorded on these swap transactions totaled $20 thousand and $361 thousand for the three months ended March 31, 2018 and 2017, respectively, and is reported as a component of interest expense. Cash Flow Hedges The following table presents the net gain recorded in accumulated other comprehensive (loss)/income and the consolidated financial statements relating to the cash flow derivative instruments for the three months ended March 31, 2018 (after tax): Amount of Amount of Amount of Gain/(Loss) Gain/(Loss) Gain/(Loss) Recognized in Recognized Reclassified Other Non-Interest In OCI From OCI to Expense (In thousands) (Effective Portion) Interest Expense (Ineffective Portion) Interest rate contracts $ 501 $ 31 $ — The Company recognized an unrealized after-tax gain of $220 thousand in accumulated other comprehensive income/(loss) at March 31, 2018 related to the termination of two interest rate swaps designated as cash flow hedges. The gain will be amortized into earnings over the remaining life of the terminated swaps. The Company recognized pre-tax interest income of $31 thousand for the three months ended March 31, 2018 related to the amortization of the gain on the terminated interest rate swaps designated as cash flow hedges. The following table presents the net gain recorded in accumulated other comprehensive income/(loss) and the consolidated financial statements relating to the cash flow derivative instruments for the three months ended March 31, 2017 (after tax): Amount of Amount of Amount of Gain/(Loss) Gain/(Loss) Gain/(Loss) Recognized in Recognized Reclassified Other Non-Interest In OCI From OCI to Expense (In thousands) (Effective Portion) Interest Expense (Ineffective Portion) Interest rate contracts $ 512 $ — $ — The following tables reflect the cash flow hedges included in the financial statements as of March 31, 2018 and December 31, 2017: March 31, 2018 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing demand brokered deposits $ 180,000 $ 1,828 Total included in other assets $ 130,000 $ 2,024 Total included in other liabilities $ 50,000 $ (196 ) December 31, 2017 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing demand brokered deposits $ 180,000 $ 1,394 Total included in other assets $ 180,000 $ 1,394 Derivatives Not Designated as Accounting Hedges: Information about these swaps is as follows: (Dollars in thousands) March 31, 2018 December 31, 2017 Notional amount $ 333,210 $ 317,363 Fair value $ 7,600 $ 3,131 Weighted average pay rates 4.15 % 4.11 % Weighted average receive rates 3.73 % 3.43 % Weighted average maturity 7.4 years 7.6 years Number of contracts 46 42

SUBORDINATED DEBT

SUBORDINATED DEBT	3 Months Ended
	Mar. 31, 2018
Subordinated Debt [Abstract]
SUBORDINATED DEBT	12. SUBORDINATED DEBT During June 2016, the Company issued $50.0 million in aggregate principal amount of fixed-to-floating subordinated notes (the “2016 Notes”) to certain institutional investors. The 2016 Notes are non-callable for five years, have a stated maturity of June 30, 2026, and bear interest at a fixed rate of 6.0% per year until June 30, 2021. From June 30, 2021 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month LIBOR rate plus 485 basis points, payable quarterly in arrears. Debt issuance costs incurred totaled $1.3 million and are being amortized to maturity. Approximately $40.0 million of the net proceeds from the sale of the 2016 Notes were contributed by the Company to the Bank in the second quarter of 2016. The remaining funds (approximately $10 million) were retained by the Company for operational purposes. During December 2017, the Company issued $35.0 million in aggregate principal amount of fixed-to-floating subordinated notes (the “2017 Notes”) to certain institutional investors. The 2017 Notes are non-callable for five years, have a stated maturity of December 15, 2027, and bear interest at a fixed rate of 4.75% per year until December 15, 2022. From December 16, 2022 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month LIBOR rate plus 254 basis points, payable quarterly in arrears. Debt issuance costs incurred totaled $875 thousand and are being amortized to maturity. Approximately $29.1 million of the net proceeds from the sale of the 2017 Notes were contributed by the Company to the Bank in the fourth quarter of 2017. The remaining funds of approximately $5 million, representing three years of interest payments, were retained by the Company for operational purposes. Subordinated debt is presented net of issuance costs on the Consolidated Statements of Condition. The subordinated debt issuances are included in the Company’s regulatory total capital amount and ratio. In connection with the issuance of the 2017 Notes, the Company obtained ratings from Kroll Bond Rating Agency (“KBRA”). KBRA assigned investment grade rating of BBB- for the Company’s subordinated debt.

ACCOUNTING PRONOUNCEMENTS

ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
ACCOUNTING PRONOUNCEMENTS	13. ACCOUNTING PRONOUNCEMENTS On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” and all subsequent amendments to the ASU (collectively, “ASC 606”). The majority of the Company’s revenues come from interest income, income from bank owned life insurance, gains on sales of loans and securities and derivatives income that are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 include wealth management fee income, investment brokerage fees, service charges and fees, sale of OREO and other income are presented within Non-Interest Income. Refer to footnote 8 “Revenue from Contracts with Customers” for further discussion on the Company’s accounting policies for revenue sources within the scope of ASC 606. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments”. This guidance amends existing guidance to improve accounting standards for financial instruments including clarification and simplification of accounting and disclosure requirements and the requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The Company recorded a cumulative effect adjustment for its sole equity instrument to the balance sheet as of January 1, 2018 in the amount of $127 thousand, representing the unrealized loss of $176 thousand at December 31, 2017 net of taxes of $49 thousand. The Company adopted the guidance effective January 1, 2018. Upon adoption, the fair value of the Company’s loan portfolio is now presented using an exit price method. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. The standard requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. For lessees, virtually all leases will be required to be recognized on the balance sheet by recording a right-of-use asset and lease liability. Subsequent accounting for leases varies depending on whether the lease is an operating lease or a finance lease. The ASU requires additional qualitative and quantitative disclosures with the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. T On June 16, 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This ASU replaces the incurred loss model with an expected loss model, referred to as “current expected credit loss” (CECL) model. It will significantly change estimates for credit losses related to financial assets measured at amortized cost, including loans receivable, held-to-maturity (HTM) debt securities and certain other contracts. The largest impact will be on lenders and the allowance for loan and lease losses (ALLL). This ASU will be effective for public business entities (PBEs) in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has reviewed the potential impact to our securities portfolio, which primarily consists of U.S. government sponsored entities, mortgage-backed securities and municipal securities which have no history of credit loss and have strong credit ratings. The Company does not expect the standard to have a material impact on its financial statements as it relates to the Company’s securities portfolio. The Company is also currently evaluating the impact the CECL model will have on our accounting and allowance for loans losses. The Company is in the process of evaluating third party firms to assist in the development of a CECL program, and has selected an in-house software model to assist in the calculation of the allowance for loan and lease losses in preparation for the change to the expected loss model. The Company expects to recognize a one-time cumulative-effect adjustment to our allowance for loan and lease losses as of the beginning of the first reporting period in which the new standard is effective, consistent with regulatory expectations set forth in interagency guidance issued at the end of 2016. The Company cannot yet determine the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on our financial condition or results of operations. On August 26, 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments)”. This ASU addresses the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This amendment is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. There is no material impact on our statement of cash flows as a result of the adoption of this ASU. In January 2017, the FASB issued ASU 2017-04: “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. This accounting standard updated simplifies the subsequent measurement of goodwill, by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this update on a prospective basis. A public business entity that is a SEC filer should adopt the amendments in this update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this ASU will not have a material impact to the consolidated financial statements at this time. In May 2017, the FASB issued ASU 2017-09: “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting”. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: 1.) The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. 2.) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. 3.) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this update. The amendments in this update are effective for public business entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods. The Company does not anticipate a material impact to the consolidated financial statements at this time. In August 2017, the FASB issued ASU 2017-12: “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company plans to adopt ASU 2017-12 on January 1, 2019. ASU 2017-12 requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. While the Company continues to assess all potential impacts of the standard, the Company does not anticipate a material impact to the consolidated financial statements at this time. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The ASU required a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate as a result of the Tax Cuts and Jobs Act. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted twenty-one percent corporate income tax rate. The Company chose to early adopt the new standard for the year ending December 31, 2017, as allowed under the new standard. The amount of the reclassification for the Company was $215 thousand.

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Principles of Consolidation and Organization	Principles of Consolidation and Organization:
Basis of Financial Presentation	Basis of Financial Statement Presentation
Segment Information	Segment Information The Banking segment includes commercial, commercial real estate, multifamily, residential and consumer lending activities; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support services. Peapack-Gladstone Bank’s Private Wealth Management Division includes: asset management services provided for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian; corporate trust services including services as trustee for pension and profit sharing plans; and other financial planning and advisory services. This segment also includes the activity from the Delaware subsidiary, PGB Trust and Investments of Delaware, MCM and Quadrant. Income is recognized as earned.
Cash and Cash Equivalents	Cash and Cash Equivalents:
Interest-Earning Deposits in Other Financial Institutions	Interest-Earning Deposits in Other Financial Institutions
Securities	Securities Interest income includes amortization of purchase premiums and discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated and premiums on callable debt securities which will be amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant. For securities in an unrealized loss position, Management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) other-than-temporary impairment related to credit loss, which must be recognized in the income statement and 2) other-than-temporary impairment related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis.
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock	Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock: The Bank is also a member of the Federal Reserve Bank System and required to own a certain amount of FRB stock. FRB stock is carried at cost and classified as a restricted security. Both cash and stock dividends are reported as income.
Loans Held for Sale	Loans Held for Sale: Mortgage loans held for sale are generally sold with servicing rights released; therefore, no servicing rights are recorded. Gains and losses on sales of mortgage loans, shown as gain on sale of loans at fair value on the Statements of Income, are based on the difference between the selling price and the carrying value of the related loan sold. SBA loans originated with the intent to sell in the secondary market are carried at the lower of cost or fair value. SBA loans are generally sold with the servicing rights retained. Gains and losses on the sale of SBA loans are based on the difference between the selling price and the carrying value of the related loan sold. Total SBA loans serviced totaled $20.0 million and $20.1 million as of March 31, 2018 and December 31, 2017, respectively. SBA loans held for sale totaled $3.1 million and $187 thousand at March 31, 2018 and December 31, 2017, respectively. Loans originated with the intent to hold and subsequently transferred to loans held for sale are carried at the lower of cost or fair value. These are loans that the Company no longer has the intent to hold for the foreseeable future.
Loans	Loans: Loans are considered past due when they are not paid in accordance with contractual terms. The accrual of income on loans, including impaired loans, is discontinued if, in the opinion of Management, principal or interest is not likely to be paid in accordance with the terms of the loan agreement, or when principal or interest is past due 90 days or more and collateral, if any, is insufficient to cover principal and interest. All interest accrued but not received for loans placed on nonaccrual are reversed against interest income. Payments received on nonaccrual loans are recorded as principal payments. A nonaccrual loan is returned to accrual status only when interest and principal payments are brought current and future payments are reasonably assured, generally when the Bank receives contractual payments for a minimum of six months. Commercial loans are generally charged off after an analysis is completed which indicates that collectability of the full principal balance is in doubt. Consumer loans are generally charged off after they become 120 days past due. Subsequent payments are credited to income only if collection of principal is not in doubt. If principal and interest payments are brought contractually current and future collectability is reasonably assured, loans are returned to accrual status. Nonaccrual mortgage loans are generally charged off when the value of the underlying collateral does not cover the outstanding principal balance. The majority of the Company’s loans are secured by real estate in New Jersey and New York.
Allowance for Loan and Lease Losses	Allowance for Loan and Lease Losses: The allowance consists of specific and general components. The specific component of the allowance relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by Management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans are individually evaluated for impairment when they are classified as substandard by Management. If a loan is considered impaired, a portion of the allowance may be allocated so that the loan is reported, net, of the present value of estimated future cash flows using the loan’s existing rate or if repayment is expected solely from the underlying collateral, the loan principal balance is compared to the fair value of collateral less estimated disposition costs to determine the need, if any, for a charge off. A troubled debt restructuring (“TDR”) is a modified loan with concessions made by the lender to a borrower who is experiencing financial difficulty. TDRs are impaired and are generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is a collateral dependent loan, the loan is reported, net, of the fair value of the collateral, less estimated disposition costs. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan and lease losses. The general component of the allowance covers non-impaired loans and is based primarily on the Bank’s historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experience by the Company on a weighted average basis over the previous three years. This actual loss experience is adjusted by other qualitative factors based on the risks present for each portfolio segment. These qualitative factors include consideration of the following: levels of and trends in delinquencies and impaired loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; ability and depth of lending management and other relevant staffstaffing and experience; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. For loans that are graded as non-impaired, the Company allocates a higher general reserve percentage than pass-rated loans using a multiple that is calculated annually through a migration analysis. At March 31, 2018 and at December 31, 2017 the multiple was 4.0 times for non-impaired substandard loans and 2.0 times for non-impaired special mention loans. In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on Federal call report codes, which are based on collateral or purpose. The following portfolio classes have been identified: Primary Residential Mortgages Home Equity Lines of Credit Junior Lien Loan on Residence Multifamily and Commercial Real Estate Loans Commercial and Industrial Loans Leasing and Equipment Finance Asset risk in PCC’s portfolio is generally recognized through changes to loan income, or though changes to lease related income streams due to fluctuations in lease rates. Changes to lease income can occur when the existing lease contract expires, the asset comes off lease or the business seeks to enter a new lease agreement. Asset risk may also change depreciation, resulting from changes in the residual value of the operating lease asset or through impairment of the asset carrying value, which can occur at any time during the life of the asset. Credit risk in PCC’s portfolio generally results from the potential default of borrowers or lessees, which may be driven by customer specific or broader industry related conditions. Credit losses can impact multiple parts of the income statement including loss of interest/lease/rental income and/or via higher costs and expenses related to the repossession, refurbishment, re-marketing and or re-leasing of assets. Consumer and Other
Derivatives	Derivatives: 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 fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. 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 terminated, 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 which the hedged transactions will affect earnings.
Stock-Based Compensation	Stock-Based Compensation: Upon adoption of Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting” the Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. For the three months ended March 31, 2018, there was no unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company’s stock incentive plans. For the three months ended March 31, 2017, the Company recorded $5 thousand of unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company’s stock incentive plans. There was no recognized tax benefit for the three months ended March 31, 2018 and 2017. For the Company’s stock option plans, changes in options outstanding during the three months ended March 31, 2018 were as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Term (In thousands) Balance, January 1, 2018 120,083 14.41 Exercised (6,150 ) 17.27 Expired (315 ) 28.10 Forfeited (2,950 ) 23.66 Balance, March 31, 2018 110,668 13.97 3.33 years $ 2,149 Vested and expected to vest 110,668 13.97 3.33 years $ 2,149 Exercisable at March 31, 2018 110,668 13.97 3.33 years $ 2,149 The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the first quarter of 2018 and the exercise price, multiplied by the number of in-the-money options). The Company’s closing stock price on March 31, 2018 was $33.39. There were no stock options granted in the three months ended March 31, 2018. The Company has previously granted performance based and service based restricted stock awards/units. Service based awards/units vest ratably over a one, three or five-year period. There were 225,148 restricted stock units granted in the first quarter of 2018. The performance based awards that were granted in previous periods are dependent upon the Company meeting certain performance criteria and cliff vest at the end of the performance period. During the fourth quarter of 2015, the Company concluded that the performance targets will no longer be met. The Company did not meet the performance criteria by the end of the performance period at end of year 2017. Therefore, as of March 31, 2018, the Company forfeited 92,767 performance based awards. Changes in non-vested shares dependent on performance criteria for the three months ended March 31, 2018 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2018 92,767 $ 18.12 Granted — — Vested — — Forfeited (92,767 ) 18.12 Balance, March 31, 2018 — $ — Changes in service based restricted stock awards/units for the three months ended March 31, 2018 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2018 308,625 $ 23.96 Granted 225,861 35.15 Vested (133,747 ) 21.84 Forfeited (99 ) 30.08 Balance, March 31, 2018 400,640 $ 30.97 As of March 31, 2018, there was $436 thousand of total unrecognized compensation cost related to service based awards. That cost is expected to be recognized over a weighted average period of 0.55 years. As of March 31, 2018, there was $10.6 million of total unrecognized compensation cost related to service based units. That cost is expected to be recognized over a weighted average period of 1.43 years. Stock compensation expense recorded for the first quarters of 2018 and 2017 totaled $1.1 million and $835 thousand, respectively.
Employee Stock Purchase Plan	Employee Stock Purchase Plan (“ESPP”): The Company recorded $53 thousand and $30 thousand of expense in salaries and employee benefits expense for the three months ended March 31, 2018 and 2017, respectively, related to the ESPP. Total shares issued under the ESPP during the first quarters of 2018 and 2017 were 6,363 and 5,334, respectively.
Earnings per share - Basic and Diluted	Earnings per share – Basic and Diluted: Three Months Ended March 31, (Dollars in thousands, except per share data) 2018 2017 Net income to shareholders $ 10,807 $ 7,982 Basic weighted-average shares outstanding 18,608,309 17,121,631 Plus: common stock equivalents 300,383 317,276 Diluted weighted-average shares outstanding 18,908,692 17,438,907 Net income per share Basic $ 0.58 $ 0.47 Diluted 0.57 0.46 As of March 31, 2018 and March 31, 2017, all stock options and warrants were included in the computation of diluted earnings per share because they were all dilutive.
Income Taxes	Income Taxes: The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its financial statements or tax returns. The measurement of deferred tax assets and liabilities is based on the enacted tax rates. Such tax assets and liabilities are adjusted for the effect of a change in tax rates in the period of enactment. The Company recognizes a tax position 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 percent likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company is no longer subject to examination by the U.S. Federal tax authorities for years prior to 2014 or by New Jersey tax authorities for years prior to 2013. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
Loss Contingencies	Loss Contingencies:
Restrictions on cash	Restrictions on Cash:
Comprehensive Income	Comprehensive Income:
Transfers of Financial Assets	Transfers of Financial Assets:
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets: Other intangible assets which primarily consist of customer relationship intangible assets arising from acquisition, are amortized on an accelerated method over their estimated useful lives, which range from 5 to 15 years.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Schedule of stock option plans, changes in options outstanding	For the Company’s stock option plans, changes in options outstanding during the three months ended March 31, 2018 were as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Term (In thousands) Balance, January 1, 2018 120,083 14.41 Exercised (6,150 ) 17.27 Expired (315 ) 28.10 Forfeited (2,950 ) 23.66 Balance, March 31, 2018 110,668 13.97 3.33 years $ 2,149 Vested and expected to vest 110,668 13.97 3.33 years $ 2,149 Exercisable at March 31, 2018 110,668 13.97 3.33 years $ 2,149
Schedule of changes in nonvested performance-based shares	Changes in non-vested shares dependent on performance criteria for the three months ended March 31, 2018 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2018 92,767 $ 18.12 Granted — — Vested — — Forfeited (92,767 ) 18.12 Balance, March 31, 2018 — $ —
Schedule of changes in nonvested shares	Changes in service based restricted stock awards/units for the three months ended March 31, 2018 were as follows: Weighted Average Number of Grant Date Shares Fair Value Balance, January 1, 2018 308,625 $ 23.96 Granted 225,861 35.15 Vested (133,747 ) 21.84 Forfeited (99 ) 30.08 Balance, March 31, 2018 400,640 $ 30.97
Schedule of calculation of basic and diluted earnings per share	The following is a reconciliation of the calculation of basic and diluted earnings per share. Basic net income per share is calculated by dividing net income available to shareholders by the weighted average shares outstanding during the reporting period. Diluted net income per share is computed similarly to that of basic net income per share, except that the denominator is increased to include the number of additional shares that would have been outstanding utilizing the Treasury Stock Method if all shares underlying potentially dilutive stock options were issued and all restricted stock, stock warrants or restricted stock units were to vest during the reporting period. Three Months Ended March 31, (Dollars in thousands, except per share data) 2018 2017 Net income to shareholders $ 10,807 $ 7,982 Basic weighted-average shares outstanding 18,608,309 17,121,631 Plus: common stock equivalents 300,383 317,276 Diluted weighted-average shares outstanding 18,908,692 17,438,907 Net income per share Basic $ 0.58 $ 0.47 Diluted 0.57 0.46

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2018
INVESTMENT SECURITIES AVAILABLE FOR SALE [Abstract]
Schedule of Amortized Cost and Approximate Fair Value of Securities Available for Sale	A summary of amortized cost and approximate fair value of investment securities available for sale included in the consolidated statements of condition as of March 31, 2018 and December 31, 2017 follows: March 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. government-sponsored agencies $ 68,415 $ 1 $ (1,540 ) $ 66,876 Mortgage-backed securities – residential 244,780 449 (4,389 ) 240,840 SBA pool securities 5,052 — (57 ) 4,995 State and political subdivisions 24,041 52 (207 ) 23,886 Corporate bond 3,000 69 — 3,069 Single-issuer trust preferred security 2,999 — (112 ) 2,887 Total $ 348,287 $ 571 $ (6,305 ) $ 342,553 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. government-sponsored agencies $ 44,476 $ — $ (775 ) $ 43,701 Mortgage-backed securities – residential 244,913 583 (2,380 ) 243,116 SBA pool securities 5,262 — (57 ) 5,205 State and political subdivisions 24,910 87 (129 ) 24,868 Corporate bond 3,000 82 — 3,082 Single-issuer trust preferred security 2,999 — (162 ) 2,837 CRA investment fund 5,000 — (176 ) 4,824 Total $ 330,560 $ 752 $ (3,679 ) $ 327,633
Schedule of Continuous Unrealized Losses and the Approximate Fair Value of these Investments	The following tables present the Corporation’s available for sale securities with continuous unrealized losses and the approximate fair value of these investments as of March 31, 2018 and December 31, 2017. March 31, 2018 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses U.S. government- sponsored agencies $ 40,549 $ (872 ) $ 21,326 $ (668 ) $ 61,875 $ (1,540 ) Mortgage-backed securities-residential 142,698 (2,311 ) 67,884 (2,078 ) 210,582 (4,389 ) SBA pool securities — — 4,995 (57 ) 4,995 (57 ) State and political subdivisions 5,952 (155 ) 3,720 (52 ) 9,672 (207 ) Single-issuer trust preferred security — — 2,887 (112 ) 2,887 (112 ) Total $ 189,199 $ (3,338 ) $ 100,812 $ (2,967 ) $ 290,011 $ (6,305 ) December 31, 2017 Duration of Unrealized Loss Less Than 12 Months 12 Months or Longer Total Approximate Approximate Approximate Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses U.S. government- sponsored agencies $ 32,166 $ (317 ) $ 11,535 $ (458 ) $ 43,701 $ (775 ) Mortgage-backed securities-residential 116,774 (1,000 ) 71,646 (1,380 ) 188,420 (2,380 ) SBA pool securities — — 5,205 (57 ) 5,205 (57 ) State and political subdivisions 5,628 (97 ) 3,760 (32 ) 9,388 (129 ) Single-issuer trust preferred security — — 2,837 (162 ) 2,837 (162 ) CRA investment fund — — 4,824 (176 ) 4,824 (176 ) Total $ 154,568 $ (1,414 ) $ 99,807 $ (2,265 ) $ 254,375 $ (3,679 )

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Schedule of composition of loans categorized by the type of loan	Loans outstanding, excluding those held for sale, by general ledger classification, as of March 31, 2018 and December 31, 2017, consisted of the following: % of % of March 31, Totals December 31, Total (In thousands) 2018 Loans 2017 Loans Residential mortgage $ 567,541 15.30 % $ 576,356 15.56 % Multifamily mortgage 1,366,712 36.86 1,388,958 37.49 Commercial mortgage 643,761 17.36 626,656 16.92 Commercial loans 993,713 26.80 958,294 25.87 Home equity lines of credit 64,570 1.74 67,497 1.82 Consumer loans, including fixed rate home equity loans 71,580 1.93 86,277 2.33 Other loans 420 0.01 402 0.01 Total loans $ 3,708,297 100.00 % $ 3,704,440 100.00 % In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on federal call report codes. The following portfolio classes have been identified as of March 31, 2018 and December 31, 2017: % of % of March 31, Totals December 31, Total (In thousands) 2018 Loans 2017 Loans Primary residential mortgage $ 596,718 16.10 % $ 605,569 16.35 % Home equity lines of credit 64,570 1.74 67,497 1.82 Junior lien loan on residence 7,147 0.19 7,073 0.19 Multifamily property 1,366,712 36.88 1,388,958 37.51 Owner-occupied commercial real estate 251,165 6.78 253,492 6.85 Investment commercial real estate 883,775 23.85 874,098 23.61 Commercial and industrial 360,127 9.72 316,294 8.54 Lease Financing 104,606 2.82 90,052 2.43 Farmland/agricultural production 156 0.01 160 0.01 Commercial construction loans 91 — 92 0.01 Consumer and other loans 70,813 1.91 99,247 2.68 Total loans $ 3,705,880 100.00 % $ 3,702,532 100.00 % Net deferred costs 2,417 1,908 Total loans including net deferred costs $ 3,708,297 $ 3,704,440
Schedule of loan balances by portfolio segment, based on impairment method, and the corresponding balances in the allowance for loan losses	The following tables present the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance for loan and lease losses (ALLL) as of March 31, 2018 and December 31, 2017: March 31, 2018 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALL Primary residential mortgage $ 9,454 $ 374 $ 587,264 $ 4,029 $ 596,718 $ 4,403 Home equity lines of credit 26 — 64,544 192 64,570 192 Junior lien loan on residence 50 — 7,097 16 7,147 16 Multifamily property — — 1,366,712 9,140 1,366,712 9,140 Owner-occupied commercial real estate 2,231 — 248,934 2,364 251,165 2,364 Investment commercial real estate 9,462 — 874,313 12,367 883,775 12,367 Commercial and industrial — — 360,127 7,753 360,127 7,753 Lease financing — — 104,606 1,036 104,606 1,036 Secured by farmland and agricultural production — — 156 2 156 2 Commercial construction — — 91 1 91 1 Consumer and other — — 70,813 422 70,813 422 Total ALLL $ 21,223 $ 374 $ 3,684,657 $ 37,322 $ 3,705,880 $ 37,696 December 31, 2017 Total Ending ALLL Total Ending ALLL Loans Attributable Loans Attributable Individually To Loans Collectively To Loans Evaluated Individually Evaluated Collectively Total For Evaluated for For Evaluated for Total Ending (In thousands) Impairment Impairment Impairment Impairment Loans ALLL Primary residential mortgage $ 9,802 $ 482 $ 595,767 $ 3,603 $ 605,569 $ 4,085 Home equity lines of credit 27 — 67,470 221 67,497 221 Junior lien loan on residence 52 — 7,021 12 7,073 12 Multifamily property — — 1,388,958 10,007 1,388,958 10,007 Owner-occupied commercial real estate 2,503 — 250,989 2,385 253,492 2,385 Investment commercial real estate 10,681 40 863,417 11,893 874,098 11,933 Commercial and industrial — — 316,294 6,563 316,294 6,563 Lease financing — — 90,052 884 90,052 884 Secured by farmland and agricultural production production — — 160 — 160 — Commercial construction — — 92 1 92 1 Consumer and other — — 99,247 349 99,247 349 Total ALLL $ 23,065 $ 522 $ 3,679,467 $ 35,918 $ 3,702,532 $ 36,440
Schedule of loans individually evaluated for impairment	The following tables present loans individually evaluated for impairment by class of loans as of March 31, 2018 and December 31, 2017 (The average impaired loans on the following tables represent year to date impaired loans.): March 31, 2018 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 9,658 $ 8,308 $ — $ 8,495 Owner-occupied commercial real estate 3,001 2,231 — 2,323 Investment commercial real estate 9,526 9,462 — 10,260 Home equity lines of credit 28 26 — 26 Junior lien loan on residence 109 50 — 50 Total loans with no related allowance $ 22,322 $ 20,077 $ — $ 21,154 With related allowance recorded: Primary residential mortgage $ 1,167 $ 1,146 $ 374 $ 1,150 Total loans with related allowance $ 1,167 $ 1,146 $ 374 $ 1,150 Total loans individually evaluated for Impairment $ 23,489 $ 21,223 $ 374 $ 22,304 December 31, 2017 Unpaid Average Principal Recorded Specific Impaired (In thousands) Balance Investment Reserves Loans With no related allowance recorded: Primary residential mortgage $ 9,607 $ 8,388 $ — $ 10,847 Owner-occupied commercial real estate 3,238 2,503 — 1,568 Investment commercial real estate 9,564 9,500 — 9,971 Home equity lines of credit 29 27 — 38 Junior lien loan on residence 110 52 — 92 Total loans with no related allowance $ 22,548 $ 20,470 $ — $ 22,516 With related allowance recorded: Primary residential mortgage $ 1,435 $ 1,414 $ 482 $ 1,399 Investment commercial real estate 1,181 1,181 40 1,198 Total loans with related allowance $ 2,616 $ 2,595 $ 522 $ 2,597 Total loans individually evaluated for impairment $ 25,164 $ 23,065 $ 522 $ 25,113
Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual	The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2018 and December 31, 2017: March 31, 2018 Loans Past Due Over 90 Days And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 6,114 $ — Home equity lines of credit 5 — Junior lien loan on residence 50 — Owner-occupied commercial real estate 2,232 — Investment commercial real estate 4,913 — Total $ 13,314 $ — December 31, 2017 Loans Past Due Over 90 Days And Still (In thousands) Nonaccrual Accruing Interest Primary residential mortgage $ 6,056 $ — Home equity lines of credit 6 — Junior lien loan on residence 52 — Owner-occupied commercial real estate 2,503 — Investment commercial real estate 4,913 — Total $ 13,530 $ —
Schedule of aging of past due loans	The following tables present the aging of the recorded investment in past due loans as of March 31, 2018 and December 31, 2017 by class of loans, excluding nonaccrual loans: March 31, 2018 30-59 60-89 Greater Than Days Days 90 Days Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 638 $ — $ — $ 638 Junior lien loan on residence 16 — — 16 Commercial and industrial 20 — — 20 Total $ 674 $ — $ — $ 674 December 31, 2017 30-59 60-89 Greater Than Days Days 90 Days Total (In thousands) Past Due Past Due Past Due Past Due Primary residential mortgage $ 216 $ — $ — $ 216 Consumer and other 30 — — 30 Total $ 246 $ — $ — $ 246
Schedule of the risk category of loans by class of loans	As of March 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 586,522 $ 687 $ 9,509 $ — Home equity lines of credit 64,544 — 26 — Junior lien loan on residence 7,097 — 50 — Multifamily property 1,351,352 14,989 371 — Owner-occupied commercial real estate 246,464 1,088 3,613 — Investment commercial real estate 834,991 9,236 39,548 — Commercial and industrial 334,544 24,842 741 — Lease financing 104,606 — — — Farmland 156 — — — Commercial construction — 91 — — Consumer and other loans 68,726 — 2,087 — Total $ 3,599,002 $ 50,933 $ 55,945 $ — As of December 31, 2017, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (In thousands) Pass Mention Substandard Doubtful Primary residential mortgage $ 594,846 $ 866 $ 9,857 $ — Home equity lines of credit 67,470 — 27 — Junior lien loan on residence 7,021 — 52 — Multifamily property 1,371,825 16,755 378 — Owner-occupied commercial real estate 249,003 837 3,652 — Investment commercial real estate 827,558 23,377 23,163 — Commercial and industrial 306,341 7,488 2,465 — Lease financing 90,052 — — Secured by farmland and agricultural 160 — — — Commercial construction — 92 — — Consumer and other loans 97,135 — 2,112 — Total $ 3,611,411 $ 49,415 $ 41,706 $ —
Schedule of Activity in Allowance for Loan and Lease Losses	The activity in the allowance for loan and lease losses for the three months ended March 31, 2018 is summarized below: January 1, March 31, 2018 2018 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 4,085 $ (77 ) $ — $ 395 $ 4,403 Home equity lines of credit 221 — 2 (31 ) 192 Junior lien loan on residence 12 — 9 (5 ) 16 Multifamily property 10,007 — — (867 ) 9,140 Owner-occupied commercial real estate 2,385 — 66 (87 ) 2,364 Investment commercial real estate 11,933 — — 434 12,367 Commercial and industrial 6,563 — 16 1,174 7,753 Lease financing 884 — — 152 1,036 Secured by farmland and agricultural — — — 2 2 Commercial construction 1 — — — 1 Consumer and other loans 349 (11 ) 1 83 422 Total ALLL $ 36,440 $ (88 ) $ 94 $ 1,250 $ 37,696 The activity in the allowance for loan and lease losses for the three months ended March 31, 2017 is summarized below: January 1, March 31, 2017 2017 Beginning Provision Ending (In thousands) ALLL Charge-offs Recoveries (Credit) ALLL Primary residential mortgage $ 3,666 $ (138 ) $ 1 $ 399 $ 3,928 Home equity lines of credit 233 — 4 (6 ) 231 Junior lien loan on residence 16 (57 ) 6 50 15 Multifamily property 11,192 — — 575 11,767 Owner-occupied commercial real estate 1,774 — — 461 2,235 Investment commercial real estate 10,909 — 4 (30 ) 10,883 Commercial and industrial 4,164 (24 ) 9 163 4,312 Secured by farmland and agricultural production 2 — — — 2 Commercial construction 9 — — (8 ) 1 Consumer and other loans 243 (3 ) — (4 ) 236 Total ALLL $ 32,208 $ (222 ) $ 24 $ 1,600 $ 33,610
Schedule of loans modified as troubled debt restructurings	The following table presents loans by class modified as TDRs during the three-month period ended March 31, 2017: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Contracts Investment Investment Primary residential mortgage 3 $ 611 $ 611 Total 3 $ 611 $ 611 The identification of the TDRs did not have a significant impact on the allowance for loan and lease losses. The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at March 31, 2018: Number of Recorded (Dollars in thousands) Contracts Investment Primary residential mortgage 1 $ 336 Total 1 $ 336

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
	Mar. 31, 2018
Deposits:
Schedule of deposit liabilities	The following table sets forth the details of total deposits as of March 31, 2018 and December 31, 2017: March 31, December 31, 2018 2017 (In thousands) $ % $ % Noninterest-bearing demand deposits $ 536,054 15.09 % $ 539,304 14.59 % Interest-bearing checking (1) 1,089,980 30.68 1,152,483 31.16 Savings 126,026 3.55 119,556 3.23 Money market 1,006,540 28.34 1,091,385 29.51 Certificates of deposit 540,942 15.23 543,035 14.68 Subtotal deposits 3,299,542 92.89 3,445,763 93.17 Interest-bearing demand - Brokered 180,000 5.07 180,000 4.87 Certificates of deposit - Brokered 72,614 2.04 72,591 1.96 Total deposits $ 3,552,156 100.00 % $ 3,698,354 100.00 % (1) Interest-bearing checking includes $369.8 million at March 31, 2018 and $359.9 million at December 31, 2017 of reciprocal balances in the Reich & Tang or Promontory Demand Deposit Marketplace program.
Schedule of maturities of time deposits	The scheduled maturities of certificates of deposit, including brokered certificates of deposit, as of March 31, 2018 are as follows: (In thousands) 2018 $ 266,979 2019 179,831 2020 65,767 2021 18,040 2022 15,828 Over 5 Years 67,111 Total $ 613,556

FEDERAL HOME LOAN BANK ADVANC27

FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of maturity dates of the advances and other borrowings	The final maturity dates of the FHLB advances are scheduled as follows: (In thousands) 2018 $ 19,898 2019 3,000 Total $ 22,898

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Schedule of income and total assets for reportable segments	The following tables present the statements of income and total assets for the Corporation’s reportable segments for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 Wealth Management (In thousands) Banking Division Total Net interest income $ 26,848 $ 1,545 $ 28,393 Noninterest income 1,627 8,588 10,215 Total income 28,475 10,133 38,608 Provision for loan and lease losses 1,250 — 1,250 Compensation and benefits 10,331 4,248 14,579 Premises and equipment expense 2,839 431 3,270 FDIC expense 580 — 580 Other noninterest expense 2,660 2,248 4,908 Total noninterest expense 17,660 6,927 24,587 Income before income tax expense 10,815 3,206 14,021 Income tax expense 2,479 735 3,214 Net income $ 8,336 $ 2,471 $ 10,807 Total assets for period end $ 4,278,010 $ 58,484 $ 4,336,494 Three Months Ended March 31, 2017 Wealth Management (In thousands) Banking Division Total Net interest income $ 24,031 $ 1,560 $ 25,591 Noninterest income 2,094 4,925 7,019 Total income 26,125 6,485 32,610 Provision for loan and lease losses 1,600 — 1,600 Compensation and benefits 9,314 2,599 11,913 Premises and equipment expense 2,537 279 2,816 FDIC Expense 686 — 686 Other noninterest expense 2,016 1,873 3,889 Total noninterest expense 16,153 4,751 20,904 Income before income tax expense 9,972 1,734 11,706 Income tax expense 3,173 551 3,724 Net income $ 6,799 $ 1,183 $ 7,982 Total assets for period end $ 3,901,134 $ 46,428 $ 3,947,562

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	The following table summarizes, for the periods indicated, assets measured at fair value on a recurring basis, including financial assets for which the Corporation has elected the fair value option: Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Markets Significant For Other Significant Identical Observable Unobservable March 31, Assets Inputs Inputs (In thousands) 2018 (Level 1) (Level 2) (Level 3) Assets: Available for sale: U.S. government-sponsored agencies $ 66,876 $ — $ 66,876 $ — Mortgage-backed securities- residential 240,840 — 240,840 — SBA pool securities 4,995 — 4,995 — State and political subdivisions 23,886 — 23,886 — Corporate bond 3,069 — 3,069 — Single-issuer trust preferred security 2,887 — 2,887 — CRA investment fund 4,746 4,746 — — Loans held for sale, at fair value 344 — 344 — Derivatives: Cash flow hedges 2,024 — 2,024 — Loan level swaps 7,600 — 7,600 — Total $ 357,267 $ 4,746 $ 352,521 $ Liabilities: Derivatives: Cash flow hedges $ (196 ) $ — $ (196 ) $ — Loan level swaps (7,600 ) — (7,600 ) — Total $ (7,796 ) $ — $ (7,796 ) $ — Assets Measured on a Recurring Basis Fair Value Measurements Using Quoted Prices in Active Markets Significant For Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs (In thousands) 2017 (Level 1) (Level 2) (Level 3) Assets: Securities available for sale: U.S. government-sponsored agencies $ 43,701 $ — $ 43,701 $ — Mortgage-backed securities-residential 243,116 — 243,116 — SBA pool securities 5,205 — 5,205 — State and political subdivisions 24,868 — 24,868 — Corporate bond 3,082 — 3,082 — Single-issuer trust preferred security 2,837 — 2,837 — CRA investment fund 4,824 4,824 — — Loans held for sale, at fair value 984 — 984 — Derivatives: Cash flow hedges 1,394 — 1,394 — Loan level swaps 3,131 — 3,131 — Total $ 333,142 $ 4,824 $ 328,318 $ — Liabilities: Derivatives: Loan level swaps $ (3,131 ) $ — $ (3,131 ) $ — Total $ (3,131 ) $ — $ (3,131 ) $ —
Schedule of residential loans held for sale	The following tables present residential loans held for sale, at fair value for the periods indicated: (In thousands) March 31, 2018 December 31, 2017 Residential loans contractual balance $ 342 $ 972 Fair value adjustment 2 12 Total fair value of residential loans held for sale $ 344 $ 984
Schedule of carrying amounts and estimated fair values of financial instruments	The carrying amounts and estimated fair values of financial instruments at March 31, 2018 are as follows: Fair Value Measurements at March 31, 2018 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 153,516 $ 153,516 $ — $ — $ 153,516 Securities available for sale 342,553 — 342,553 — 342,553 CRA investment fund 4,746 4,746 — — 4,746 FHLB and FRB stock 23,703 — — — N/A Loans held for sale, at fair value 344 — 344 — 344 Loans held for sale, at lower of cost or fair value 3,075 — 3,366 — 3,366 Loans, net of allowance for loan and lease losses 3,670,601 — — 3,642,137 3,642,137 Accrued interest receivable 7,306 1,405 5,901 — 7,306 Cash flow hedges 2,024 — 2,024 — 2,024 Loan level swaps 7,600 — 7,600 — 7,600 Financial liabilities Deposits $ 3,552,156 $ 2,938,600 $ 607,416 $ — $ 3,546,016 Overnight borrowings 216,000 — 216,000 — 216,000 Federal home loan bank advances 22,898 — 22,864 — 22,864 Subordinated debt 83,079 — — 83,990 83,990 Accrued interest payable 3,406 259 1,912 1,235 3,406 Cash flow hedge 196 — 196 — 196 Loan level swap 7,600 — 7,600 — 7,600 The carrying amounts and estimated fair values of financial instruments at December 31, 2017 are as follows: Fair Value Measurements at December 31, 2017 using Carrying (In thousands) Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 113,447 $ 113,447 $ — $ — $ 113,447 Securities available for sale 327,633 4,824 322,809 — 327,633 FHLB and FRB stock 13,378 — — — N/A Loans held for sale, at fair value 984 — 984 — 984 Loans held for sale, at lower of cost or fair value 187 — 206 — 206 Loans, net of allowance for loan and lease losses 3,668,000 — — 3,649,132 3,649,132 Accrued interest receivable 9,452 — 1,041 8,411 9,452 Cash flow Hedges 1,394 — 1,394 — 1,394 Loan level swaps 3,131 — 3,131 — 3,131 Financial liabilities Deposits $ 3,698,354 $ 3,082,728 $ 612,591 $ — $ 3,695,319 Federal home loan bank advances 37,898 — 37,907 — 37,907 Subordinated debt 83,024 — — 84,150 84,150 Accrued interest payable 1,756 192 1,495 69 1,756 Loan level swaps 3,131 — 3,131 — 3,131

REVENUE FROM CONTRACTS WITH C30

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Noninterest Income	The following table presents the sources of noninterest income for the periods indicated: Three Months Ended March 31, (In thousands) 2018 2017 Service charges on deposits Overdraft fees $ 181 $ 176 Interchange income 290 266 Other 360 329 Wealth management fees 8,152 4,572 Investment brokerage fees 215 246 Gains/(losses) on sales of OREO — — Other (a) 1,017 1,430 Total noninterest other income $ 10,215 $ 7,019 (a) All of the other category is outside the scope of ASC 606.
Schedule of noninterest income by operating segment	The following table presents the sources of noninterest income by operating segment for the periods indicated: Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Revenue by Operating Wealth Wealth Segment Banking Management Total Banking Management Total Service charges on deposits Overdraft fees $ 181 $ — $ 181 $ 176 $ — $ 176 Interchange income 290 — 290 266 — 266 Other 360 — 360 329 — 329 Wealth management fees — 8,152 8,152 — 4,572 4,572 Investment brokerage fees — 215 215 — 246 246 Gains/(losses) on sales of OREO — — — — — — Other (a) 796 221 1,017 1,323 107 1,430 Total noninterest income $ 1,627 $ 8,588 $ 10,215 $ 2,094 $ 4,925 $ 7,019 (a) All of the other category is outside the scope of ASC 606.

OTHER OPERATING EXPENSES (Table

OTHER OPERATING EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2018
Other Income and Expenses [Abstract]
Schedule of components of other operating expenses	The following table presents the major components of other operating expenses for the periods indicated: Three Months Ended March 31, (In thousands) 2018 2017 Wealth management division other expense $ 702 $ 702 Professional and legal fees 1,114 862 Advertising 311 163 Other operating expenses 2,781 2,162 Total other operating expenses $ 4,908 $ 3,889

ACCUMULATED OTHER COMPREHENSI32

ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME (Tables)	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
Schedule of accumulated other comprehensive income balances, net of tax	The following is a summary of the accumulated other comprehensive income/(loss) balances, net of tax, for the three months ended March 31, 2018 and 2017: Amount Other Reclassified Comprehensive Cumulative Other From Income/(Loss) Adjustment Comprehensive Accumulated Three Months Balance at For Equity Income/(Loss) Other Ended Balance at January 1, Security Before Comprehensive March 31, March 31, (In thousands) 2018 (ASU 2016-1) Reclassifications Income/(Loss) 2017 2018 Net unrealized holding loss on securities available for sale,net of tax $ (2,214 ) $ 127 $ (2,258 ) $ — $ (2,258 ) $ (4,345 ) Gains on cash flow hedges 1,002 — 525 (24 ) 501 1,503 Accumulated other comprehensive loss, net of tax $ (1,212 ) $ 127 $ (1,733 ) $ (24 ) $ (1,757 ) $ (2,842 ) Amount Other Reclassified Comprehensive Other From Income/(Loss) Comprehensive Accumulated Three Months Balance at Income/(Loss) Other Ended Balance at January 1, Before Comprehensive March 31, March 31, (In thousands) 2017 Reclassifications Income/(Loss) 2017 2017 Net unrealized holding (loss) on securities available for sale, net of tax $ (1,091 ) $ 397 $ — $ 397 $ (694 ) Gains /(loss) on cash flow hedges (440 ) 512 — 512 72 Accumulated other comprehensive loss, net of tax $ (1,531 ) $ 909 $ — $ 909 $ (622 )
Schedule of the reclassifications out of accumulated other comprehensive income	The following represents the reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2017: Three Months Ended March 31, (In thousands) 2018 2017 Affected Line Item in Income Unrealized (gains) on cash flow hedge derivatives: Realized net gains on cash flow hedges $ (31 ) $ — Cash flow hedge gains, net Income tax expense 7 — Income tax expense Total reclassifications, net of tax $ (24 ) $ —

DERIVATIVES (Tables)

DERIVATIVES (Tables)	3 Months Ended
	Mar. 31, 2018
Schedule of Information about Derivatives	The following information about the interest rate swaps designated as cash flow hedges as of March 31, 2018 and December 31, 2017 is presented in the following table: (Dollars in thousands) March 31, 2018 December 31, 2017 Notional amount $ 180,000 $ 180,000 Weighted average pay rate 1.83 % 1.64 % Weighted average receive rate 1.58 % 1.33 % Weighted average maturity 2.76 years 2.25 years Unrealized gain, net $ 1,828 $ 1,394 Number of contracts 9 9
Schedule of Net Gains/(Losses)	The following table presents the net gain recorded in accumulated other comprehensive (loss)/income and the consolidated financial statements relating to the cash flow derivative instruments for the three months ended March 31, 2018 (after tax): Amount of Amount of Amount of Gain/(Loss) Gain/(Loss) Gain/(Loss) Recognized in Recognized Reclassified Other Non-Interest In OCI From OCI to Expense (In thousands) (Effective Portion) Interest Expense (Ineffective Portion) Interest rate contracts $ 501 $ 31 $ — The following table presents the net gain recorded in accumulated other comprehensive income/(loss) and the consolidated financial statements relating to the cash flow derivative instruments for the three months ended March 31, 2017 (after tax): Amount of Amount of Amount of Gain/(Loss) Gain/(Loss) Gain/(Loss) Recognized in Recognized Reclassified Other Non-Interest In OCI From OCI to Expense (In thousands) (Effective Portion) Interest Expense (Ineffective Portion) Interest rate contracts $ 512 $ — $ —
Schedule of Notional Amount and Fair Value	The following tables reflect the cash flow hedges included in the financial statements as of March 31, 2018 and December 31, 2017: March 31, 2018 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing demand brokered deposits $ 180,000 $ 1,828 Total included in other assets $ 130,000 $ 2,024 Total included in other liabilities $ 50,000 $ (196 ) December 31, 2017 Notional Fair (In thousands) Amount Value Interest rate swaps related to interest-bearing demand brokered deposits $ 180,000 $ 1,394 Total included in other assets $ 180,000 $ 1,394
Not Designated as Hedging Instrument [Member]
Schedule of Information about Derivatives	Information about these swaps is as follows: (Dollars in thousands) March 31, 2018 December 31, 2017 Notional amount $ 333,210 $ 317,363 Fair value $ 7,600 $ 3,131 Weighted average pay rates 4.15 % 4.11 % Weighted average receive rates 3.73 % 3.43 % Weighted average maturity 7.4 years 7.6 years Number of contracts 46 42

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative - Other) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)shares	Mar. 31, 2017USD ($)shares	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Amount of loans serviced	$ 20,000		$ 20,100
Threshold for determining nonaccrual status	90 days
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	5 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	15 years
Substandard [Member]
Loan reserve multiple	4		4
Special Mention [Member]
Loan reserve multiple	2		2
Consumer and Other [Member]
Threshold for determining nonaccrual status	120 days
Small Business Administration Loans [Member]
Loans held for sale	$ 3,100			$ 187
Employee Stock [Member]
Number of share purchase rights authorized | shares	150,000
Percentage of closing market price on purchase date	85.00%
Compensation cost	$ 53	$ 30
Issuance of shares for Employee Stock Purchase Plan, shares | shares	6,363	5,334
Employee Stock [Member] | Minimum [Member]
Percentage of compensation contributable	1.00%
Employee Stock [Member] | Maximum [Member]
Percentage of compensation contributable	15.00%

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Stock-Based Compensation Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Closing stock price of common stock	$ 33.39
Employee Stock Option [Member]
Option term	10 years
Vesting term	5 years
Unrecognized compensation cost	$ 5
Total compensation cost
Restricted stock [Member]
Shares available for grant	225,148
Unrecognized compensation cost	$ 436
Weighted average period, unrecognized compensation expected to be recognized (in years)	6 months 18 days
Total compensation cost	$ 1,100	$ 835
Restricted Stock Units [Member]
Unrecognized compensation cost	$ 10,600
Weighted average period, unrecognized compensation expected to be recognized (in years)	1 year 5 months 5 days
Performance Shares [Member]
Shares available for grant	92,767

SUMMARY OF SIGNIFICANT ACCOUN36

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Changes in Options Outstanding) (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)$ / sharesshares
Number of Options
Balance | shares	120,083
Exercised | shares	(6,150)
Expired | shares	(315)
Forfeited | shares	(2,950)
Balance | shares	110,668
Vested and expected to vest | shares	110,668
Exercisable | shares	110,668
Weighted Average Exercise Price
Balance | $ / shares	$ 14.41
Exercised | $ / shares	17.27
Expired | $ / shares	28.10
Forfeited | $ / shares	23.66
Balance | $ / shares	13.97
Vested and expected to vest | $ / shares	13.97
Exercisable | $ / shares	$ 13.97
Weighted Average Remaining Contractual Term
Balance	3 years 3 months 29 days
Vested and Expected to Vest	3 years 3 months 29 days
Exercisable	3 years 3 months 29 days
Aggregate Intrinsic Value
Balance | $	$ 2,149
Vested and expected to vest | $	2,149
Exercisable | $	$ 2,149

SUMMARY OF SIGNIFICANT ACCOUN37

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Changes in Restricted Common Shares) (Details)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Performance Shares [Member]
Number of Shares
Balance at Beginning | shares	92,767
Granted | shares
Vested | shares
Forfeited | shares	(92,767)
Balance at end | shares
Weighted Average Grant Date Fair Value
Balance at Beginning | $ / shares	$ 18.12
Granted | $ / shares
Vested | $ / shares
Forfeited | $ / shares	18.12
Balance at end | $ / shares
Restricted stock [Member]
Number of Shares
Balance at Beginning | shares	308,625
Granted | shares	225,861
Vested | shares	(133,747)
Forfeited | shares	(99)
Balance at end | shares	400,640
Weighted Average Grant Date Fair Value
Balance at Beginning | $ / shares	$ 23.96
Granted | $ / shares	35.15
Vested | $ / shares	21.84
Forfeited | $ / shares	30.08
Balance at end | $ / shares	$ 30.97

SUMMARY OF SIGNIFICANT ACCOUN38

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Earnings per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accounting Policies [Abstract]
Net income to shareholders	$ 10,807	$ 7,982
Basic weighted-average shares outstanding	18,608,309	17,121,631
Plus: common stock equivalents	300,383	317,276
Diluted weighted-average shares outstanding	18,908,692	17,438,907
Net Income Per Share
Basic	$ 0.58	$ 0.47
Diluted	$ 0.57	$ 0.46

INVESTMENT SECURITIES (Schedule

INVESTMENT SECURITIES (Schedule of Amortized Cost and Approximate Fair Value) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Amortized Cost	$ 348,287	$ 330,560
Gross Unrealized Gains	571	752
Gross Unrealized Losses	(6,305)	(3,679)
Fair Value	342,553	327,633
U.S. Government-Sponsored Entities [Member]
Amortized Cost	68,415	44,476
Gross Unrealized Gains	1
Gross Unrealized Losses	(1,540)	(775)
Fair Value	66,876	43,701
Mortgage-Backed Securities-Residential [Member]
Amortized Cost	244,780	244,913
Gross Unrealized Gains	449	583
Gross Unrealized Losses	(4,389)	(2,380)
Fair Value	240,840	243,116
SBA Pool Securities [Member]
Amortized Cost	5,052	5,262
Gross Unrealized Gains
Gross Unrealized Losses	(57)	(57)
Fair Value	4,995	5,205
State and Political Subdivisions [Member]
Amortized Cost	24,041	24,910
Gross Unrealized Gains	52	87
Gross Unrealized Losses	(207)	(129)
Fair Value	23,886	24,868
Corporate Bond [Member]
Amortized Cost	3,000	3,000
Gross Unrealized Gains	69	82
Gross Unrealized Losses
Fair Value	3,069	3,082
Single-Issuer Trust Preferred Security [Member]
Amortized Cost	2,999	2,999
Gross Unrealized Gains
Gross Unrealized Losses	(112)	(162)
Fair Value	2,887	2,837
CRA Investment Fund [Member]
Amortized Cost		5,000
Gross Unrealized Gains
Gross Unrealized Losses		(176)
Fair Value	$ 4,859	$ 4,824

INVESTMENT SECURITIES (Schedu40

INVESTMENT SECURITIES (Schedule of Securities with Continuous Unrealized Losses) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Approximate Fair Value
Less Than 12 Months	$ 189,199	$ 154,568
12 Months or Longer	100,812	99,807
Total	290,011	254,375
Unrealized Losses
Less Than 12 Months	(3,338)	(1,414)
12 Months or Longer	(2,967)	(2,265)
Total	(6,305)	(3,679)
U.S. Government-Sponsored Entities [Member]
Approximate Fair Value
Less Than 12 Months	40,549	32,166
12 Months or Longer	21,326	11,535
Total	61,875	43,701
Unrealized Losses
Less Than 12 Months	(872)	(317)
12 Months or Longer	(668)	(458)
Total	(1,540)	(775)
Mortgage-Backed Securities-Residential [Member]
Approximate Fair Value
Less Than 12 Months	142,698	116,774
12 Months or Longer	67,884	71,646
Total	210,582	188,420
Unrealized Losses
Less Than 12 Months	(2,311)	(1,000)
12 Months or Longer	(2,078)	(1,380)
Total	(4,389)	(2,380)
SBA Pool Securities [Member]
Approximate Fair Value
Less Than 12 Months
12 Months or Longer	4,995	5,205
Total	4,995	5,205
Unrealized Losses
Less Than 12 Months
12 Months or Longer	(57)	(57)
Total	(57)	(57)
State and Political Subdivisions [Member]
Approximate Fair Value
Less Than 12 Months	5,952	5,628
12 Months or Longer	3,720	3,760
Total	9,672	9,388
Unrealized Losses
Less Than 12 Months	(155)	(97)
12 Months or Longer	(52)	(32)
Total	(207)	(129)
Single-Issuer Trust Preferred Security [Member]
Approximate Fair Value
Less Than 12 Months
12 Months or Longer	2,887	2,837
Total	2,887	2,837
Unrealized Losses
Less Than 12 Months
12 Months or Longer	(112)	(162)
Total	$ (112)	(162)
CRA Investment Fund [Member]
Approximate Fair Value
Less Than 12 Months
12 Months or Longer		4,824
Total		4,824
Unrealized Losses
Less Than 12 Months
12 Months or Longer		(176)
Total		$ (176)

LOANS (Narrative) (Details)

LOANS (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Receivables [Abstract]
Impaired non-accrual loans	$ 13,314	$ 13,530
Impaired non-accrual loans performing troubled debt restructured	7,900	9,500
Allowance allocated to troubled debt restructured loans	278	423
Allowance allocated to non accrual loans	170	173
Troubled debt restructurings specific reserves to customers	$ 278	$ 423

LOANS (Schedule of Loans Outsta

LOANS (Schedule of Loans Outstanding, by Classification) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Total loans	$ 3,708,297	$ 3,704,440
Residential Portfolio Segment [Member] | Residential Mortgage [Member]
Total loans	567,541	576,356
Residential Portfolio Segment [Member] | Multifamily Property [Member]
Total loans	1,366,712	1,388,958
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member]
Total loans	64,570	67,497
Commercial Real Estate Portfolio Segment [Member] | Commercial Mortgage [Member]
Total loans	643,761	626,656
Commercial Portfolio Segment [Member] | Commercial Loans [Member]
Total loans	993,713	958,294
Consumer and Other [Member] | Consumer Loans, Including Home Equity Loans [Member]
Total loans	71,580	86,277
Unallocated Financing Receivables [Member]
Total loans	$ 420	$ 402
Loans and Finance Receivables [Member]
Total loans (in percent)	100.00%	100.00%
Loans and Finance Receivables [Member] | Residential Portfolio Segment [Member] | Residential Mortgage [Member]
Total loans (in percent)	15.30%	15.56%
Loans and Finance Receivables [Member] | Residential Portfolio Segment [Member] | Multifamily Property [Member]
Total loans (in percent)	36.86%	37.49%
Loans and Finance Receivables [Member] | Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member]
Total loans (in percent)	1.74%	1.82%
Loans and Finance Receivables [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Mortgage [Member]
Total loans (in percent)	17.36%	16.92%
Loans and Finance Receivables [Member] | Commercial Portfolio Segment [Member] | Commercial Loans [Member]
Total loans (in percent)	26.80%	25.87%
Loans and Finance Receivables [Member] | Consumer and Other [Member] | Consumer Loans, Including Home Equity Loans [Member]
Total loans (in percent)	1.93%	2.33%
Loans and Finance Receivables [Member] | Unallocated Financing Receivables [Member]
Total loans (in percent)	0.01%	0.01%

LOANS (Schedule of Loan Balance

LOANS (Schedule of Loan Balances by Portfolio Class) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Total loans	$ 3,705,880	$ 3,702,532
Net deferred fees	2,417	1,908
Total loans including net deferred costs	3,708,297	3,704,440
Residential Portfolio Segment [Member] | Junior Lien [Member]
Total loans	7,147	7,073
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member]
Total loans	596,718	605,569
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member]
Total loans	64,570	67,497
Total loans including net deferred costs	64,570	67,497
Residential Portfolio Segment [Member] | Multifamily Property [Member]
Total loans	1,366,712	1,388,958
Total loans including net deferred costs	1,366,712	1,388,958
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member]
Total loans	251,165	253,492
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member]
Total loans	883,775	874,098
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Total loans	91	92
Consumer and Other [Member]
Total loans	70,813	99,247
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member]
Total loans	360,127	316,294
Lease Financing [Member]
Total loans	104,606	90,052
Lease Financing [Member] | Commercial Portfolio Segment [Member]
Total loans	104,606		$ 90,052
Agricultural Sector [Member]
Total loans	$ 156	$ 160
Loans and Finance Receivables, Gross [Member]
Total loans (in percent)	100.00%	100.00%
Loans and Finance Receivables, Gross [Member] | Residential Portfolio Segment [Member] | Junior Lien [Member]
Total loans (in percent)	0.19%	0.19%
Loans and Finance Receivables, Gross [Member] | Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member]
Total loans (in percent)	16.10%	16.35%
Loans and Finance Receivables, Gross [Member] | Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member]
Total loans (in percent)	1.74%	1.82%
Loans and Finance Receivables, Gross [Member] | Residential Portfolio Segment [Member] | Multifamily Property [Member]
Total loans (in percent)	36.88%	37.51%
Loans and Finance Receivables, Gross [Member] | Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member]
Total loans (in percent)	6.78%	6.85%
Loans and Finance Receivables, Gross [Member] | Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member]
Total loans (in percent)	23.85%	23.61%
Loans and Finance Receivables, Gross [Member] | Commercial Portfolio Segment [Member] | Construction Loans [Member]
Total loans (in percent)		0.01%
Loans and Finance Receivables, Gross [Member] | Consumer and Other [Member]
Total loans (in percent)	1.91%	2.68%
Loans and Finance Receivables, Gross [Member] | Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member]
Total loans (in percent)	9.72%	8.54%
Loans and Finance Receivables, Gross [Member] | Lease Financing [Member] | Commercial Portfolio Segment [Member]
Total loans (in percent)	2.82%	2.43%
Loans and Finance Receivables, Gross [Member] | Agricultural Sector [Member]
Total loans (in percent)	0.01%	0.01%

LOANS (Schedule of Balances by

LOANS (Schedule of Balances by Portfolio Class, Based on Impairment Method) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Total Loans Individually Evaluated for Impairment	$ 21,223	$ 23,065
Ending ALLL Attributable to Loans Individually Evaluated for Impairment	374	522
Total Loans Collectively Evaluated for Impairment	3,684,657	3,679,467
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment	37,322	35,918
Total Loans	3,705,880	3,702,532
Total Ending ALLL	37,696	36,440	$ 33,610	$ 32,208
Residential Portfolio Segment [Member] | Junior Lien [Member]
Total Loans Individually Evaluated for Impairment	50	52
Ending ALLL Attributable to Loans Individually Evaluated for Impairment
Total Loans Collectively Evaluated for Impairment	7,097	7,021
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment	16	12
Total Loans	7,147	7,073
Total Ending ALLL	16	12	15	16
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member]
Total Loans Individually Evaluated for Impairment	9,454	9,802
Ending ALLL Attributable to Loans Individually Evaluated for Impairment	374	482
Total Loans Collectively Evaluated for Impairment	587,264	595,767
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment	4,029	3,603
Total Loans	596,718	605,569
Total Ending ALLL	4,403	4,085	3,928	3,666
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member]
Total Loans Individually Evaluated for Impairment	26	27
Ending ALLL Attributable to Loans Individually Evaluated for Impairment
Total Loans Collectively Evaluated for Impairment	64,544	67,470
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment	192	221
Total Loans	64,570	67,497
Total Ending ALLL	192	221	231	233
Residential Portfolio Segment [Member] | Multifamily Property [Member]
Total Loans Individually Evaluated for Impairment
Ending ALLL Attributable to Loans Individually Evaluated for Impairment
Total Loans Collectively Evaluated for Impairment	1,366,712	1,388,958
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment	9,140	10,007
Total Loans	1,366,712	1,388,958
Total Ending ALLL	9,140	10,007	11,767	11,192
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member]
Total Loans Individually Evaluated for Impairment	2,231	2,503
Ending ALLL Attributable to Loans Individually Evaluated for Impairment
Total Loans Collectively Evaluated for Impairment	248,934	250,989
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment	2,364	2,385
Total Loans	251,165	253,492
Total Ending ALLL	2,364	2,385	2,235	1,774
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member]
Total Loans Individually Evaluated for Impairment	9,462	10,681
Ending ALLL Attributable to Loans Individually Evaluated for Impairment		40
Total Loans Collectively Evaluated for Impairment	874,313	863,417
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment	12,367	11,893
Total Loans	883,775	874,098
Total Ending ALLL	12,367	11,933	10,883	10,909
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Total Loans Individually Evaluated for Impairment
Ending ALLL Attributable to Loans Individually Evaluated for Impairment
Total Loans Collectively Evaluated for Impairment	91	92
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment	1	1
Total Loans	91	92
Total Ending ALLL	1	1	1	9
Consumer and Other [Member]
Total Loans Individually Evaluated for Impairment
Ending ALLL Attributable to Loans Individually Evaluated for Impairment
Total Loans Collectively Evaluated for Impairment	70,813	99,247
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment	422	349
Total Loans	70,813	99,247
Total Ending ALLL	422	349	236	243
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member]
Total Loans Individually Evaluated for Impairment
Ending ALLL Attributable to Loans Individually Evaluated for Impairment
Total Loans Collectively Evaluated for Impairment	360,127	316,294
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment	7,753	6,563
Total Loans	360,127	316,294
Total Ending ALLL	7,753	6,563	$ 4,312	4,164
Lease Financing [Member]
Total Loans Individually Evaluated for Impairment
Ending ALLL Attributable to Loans Individually Evaluated for Impairment
Total Loans Collectively Evaluated for Impairment	104,606	90,052
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment	1,036	884
Total Loans	104,606	90,052
Total Ending ALLL	1,036	884
Lease Financing [Member] | Commercial Portfolio Segment [Member]
Total Loans	104,606			$ 90,052
Agricultural Sector [Member]
Total Loans Individually Evaluated for Impairment
Ending ALLL Attributable to Loans Individually Evaluated for Impairment
Total Loans Collectively Evaluated for Impairment	156	160
Ending ALLL Attributable to Loans Collectively Evaluated for Impairment	2
Total Loans	156	160
Total Ending ALLL	$ 2

LOANS (Schedule of Schedule of

LOANS (Schedule of Schedule of Loans Individually Evaluated for Impairment) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Unpaid Principal Balance
With no related allowance recorded	$ 22,322	$ 22,548
With related allowance recorded	1,167	2,616
Total loans individually evaluated impairment	23,489	25,164
Recorded Investment
With no related allowance recorded	20,077	20,470
With related allowance recorded	1,146	2,595
Total loans individually evaluated impairment	21,223	23,065
Specific Reserves	374	522
Average Impaired Loans
With no related allowance recorded	21,154	22,516
With related allowance recorded	1,150	2,597
Total loans individually evaluated impairment	22,304	25,113
Residential Portfolio Segment [Member] | Junior Lien [Member]
Unpaid Principal Balance
With no related allowance recorded	109	110
Recorded Investment
With no related allowance recorded	50	52
Average Impaired Loans
With no related allowance recorded	50	92
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member]
Unpaid Principal Balance
With no related allowance recorded	9,658	9,607
With related allowance recorded	1,167	1,435
Recorded Investment
With no related allowance recorded	8,308	8,388
With related allowance recorded	1,146	1,414
Specific Reserves	374	482
Average Impaired Loans
With no related allowance recorded	8,495	10,847
With related allowance recorded	1,150	1,399
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member]
Unpaid Principal Balance
With no related allowance recorded	28	29
Recorded Investment
With no related allowance recorded	26	27
Average Impaired Loans
With no related allowance recorded	26	38
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member]
Unpaid Principal Balance
With no related allowance recorded	3,001	3,238
Recorded Investment
With no related allowance recorded	1,576	2,503
Average Impaired Loans
With no related allowance recorded	8,495	1,568
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member]
Unpaid Principal Balance
With no related allowance recorded	9,526	9,564
With related allowance recorded		1,181
Recorded Investment
With no related allowance recorded	9,462	9,500
With related allowance recorded		1,181
Specific Reserves		40
Average Impaired Loans
With no related allowance recorded	$ 10,260	9,971
With related allowance recorded		$ 1,198

LOANS (Schedule of Investment i

LOANS (Schedule of Investment in Nonaccrual and Loans Past Due Over 90 Days) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Impaired non-accrual loans	$ 13,314	$ 13,530
Loans Past Due Over 90 Days And Still Accruing Interest
Residential Portfolio Segment [Member] | Junior Lien [Member]
Impaired non-accrual loans	50	52
Loans Past Due Over 90 Days And Still Accruing Interest
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member]
Impaired non-accrual loans	6,114	6,056
Loans Past Due Over 90 Days And Still Accruing Interest
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member]
Impaired non-accrual loans	5	6
Loans Past Due Over 90 Days And Still Accruing Interest
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member]
Impaired non-accrual loans	2,232	2,503
Loans Past Due Over 90 Days And Still Accruing Interest
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member]
Impaired non-accrual loans	4,913	4,913
Loans Past Due Over 90 Days And Still Accruing Interest

LOANS (Schedule of Schedule o47

LOANS (Schedule of Schedule of Aging of Past Due Loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Total Past Due	$ 674	$ 246
30 to 59 Days Past Due [Member]
Total Past Due	674	246
60 to 89 Days Past Due [Member]
Total Past Due
Greater Than 90 Days [Member]
Total Past Due
Residential Portfolio Segment [Member] | Junior Lien [Member]
Total Past Due	16
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member]
Total Past Due	638	216
Residential Portfolio Segment [Member] | 30 to 59 Days Past Due [Member] | Junior Lien [Member]
Total Past Due	16
Residential Portfolio Segment [Member] | 30 to 59 Days Past Due [Member] | Primary Residential Mortgages [Member]
Total Past Due	638	216
Residential Portfolio Segment [Member] | 60 to 89 Days Past Due [Member] | Junior Lien [Member]
Total Past Due
Residential Portfolio Segment [Member] | 60 to 89 Days Past Due [Member] | Primary Residential Mortgages [Member]
Total Past Due
Residential Portfolio Segment [Member] | Greater Than 90 Days [Member] | Junior Lien [Member]
Total Past Due
Residential Portfolio Segment [Member] | Greater Than 90 Days [Member] | Primary Residential Mortgages [Member]
Total Past Due
Commercial and Industrial Sector [Member] | Consumer and Other [Member]
Total Past Due		30
Commercial and Industrial Sector [Member] | Consumer and Other [Member] | 30 to 59 Days Past Due [Member]
Total Past Due		30
Commercial and Industrial Sector [Member] | Consumer and Other [Member] | 60 to 89 Days Past Due [Member]
Total Past Due
Commercial and Industrial Sector [Member] | Consumer and Other [Member] | Greater Than 90 Days [Member]
Total Past Due
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member]
Total Past Due	20
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | 30 to 59 Days Past Due [Member]
Total Past Due	20
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | 60 to 89 Days Past Due [Member]
Total Past Due
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | Greater Than 90 Days [Member]
Total Past Due

LOANS (Schedule of Schedule o48

LOANS (Schedule of Schedule of Risk Category of Loans by Class of Loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Total Loans	$ 3,705,880	$ 3,702,532
Impaired loans	23,489	25,164
Pass [Member]
Total Loans	3,599,002	3,611,411
Special Mention [Member]
Total Loans	50,933	49,415
Substandard [Member]
Total Loans	55,945	41,706
Impaired loans	21,100	21,800
Residential Portfolio Segment [Member] | Junior Lien [Member]
Total Loans	7,147	7,073
Residential Portfolio Segment [Member] | Pass [Member] | Junior Lien [Member]
Total Loans	7,097	7,021
Residential Portfolio Segment [Member] | Substandard [Member] | Junior Lien [Member]
Total Loans	50	52
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member]
Total Loans	596,718	605,569
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Pass [Member]
Total Loans	586,522	594,846
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Special Mention [Member]
Total Loans	687	866
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member] | Substandard [Member]
Total Loans	9,509	9,857
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member]
Total Loans	64,570	67,497
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | Pass [Member]
Total Loans	64,544	67,470
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | Substandard [Member]
Total Loans	26	27
Residential Portfolio Segment [Member] | Multifamily Property [Member]
Total Loans	1,366,712	1,388,958
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Pass [Member]
Total Loans	1,351,352	1,371,825
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Special Mention [Member]
Total Loans	14,989	16,755
Residential Portfolio Segment [Member] | Multifamily Property [Member] | Substandard [Member]
Total Loans	371	378
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member]
Total Loans	251,165	253,492
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Pass [Member]
Total Loans	246,464	249,003
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Special Mention [Member]
Total Loans	1,088	837
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member] | Substandard [Member]
Total Loans	3,613	3,652
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member]
Total Loans	883,775	874,098
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Pass [Member]
Total Loans	834,991	827,558
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Special Mention [Member]
Total Loans	9,236	23,377
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member] | Substandard [Member]
Total Loans	39,548	23,163
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Total Loans	91	92
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member]
Total Loans
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member]
Total Loans	91	92
Consumer and Other [Member]
Total Loans	70,813	99,247
Consumer and Other [Member] | Pass [Member]
Total Loans	68,726	97,135
Consumer and Other [Member] | Substandard [Member]
Total Loans	2,087	2,112
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member]
Total Loans	360,127	316,294
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | Pass [Member]
Total Loans	334,544	306,341
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | Special Mention [Member]
Total Loans	24,842	7,488
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | Substandard [Member]
Total Loans	741	2,465
Lease Financing [Member]
Total Loans	104,606	90,052
Lease Financing [Member] | Pass [Member]
Total Loans	104,606	90,052
Lease Financing [Member] | Commercial Portfolio Segment [Member]
Total Loans	104,606		$ 90,052
Agricultural Sector [Member]
Total Loans	156	160
Agricultural Sector [Member] | Pass [Member]
Total Loans	$ 156	$ 160

LOANS (Schedule of Activity in

LOANS (Schedule of Activity in Allowance for Loan Losses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Allowance for loan losses
Beginning ALLL	$ 36,440	$ 32,208
Charge-Offs	(88)	(222)
Recoveries	94	24
Provision (Credit)	1,250	1,600
Ending ALLL	37,696	33,610
Residential Portfolio Segment [Member] | Junior Lien [Member]
Allowance for loan losses
Beginning ALLL	12	16
Charge-Offs		(57)
Recoveries	9	6
Provision (Credit)	(5)	50
Ending ALLL	16	15
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member]
Allowance for loan losses
Beginning ALLL	4,085	3,666
Charge-Offs	(77)	(138)
Recoveries		1
Provision (Credit)	395	399
Ending ALLL	4,403	3,928
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member]
Allowance for loan losses
Beginning ALLL	221	233
Charge-Offs
Recoveries	2	4
Provision (Credit)	(31)	(6)
Ending ALLL	192	231
Residential Portfolio Segment [Member] | Multifamily Property [Member]
Allowance for loan losses
Beginning ALLL	10,007	11,192
Charge-Offs
Recoveries
Provision (Credit)	(867)	575
Ending ALLL	9,140	11,767
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Property [Member]
Allowance for loan losses
Beginning ALLL	2,385	1,774
Charge-Offs
Recoveries	66
Provision (Credit)	(87)	461
Ending ALLL	2,364	2,235
Commercial Real Estate Portfolio Segment [Member] | Investment Property [Member]
Allowance for loan losses
Beginning ALLL	11,933	10,909
Charge-Offs
Recoveries		4
Provision (Credit)	434	(30)
Ending ALLL	12,367	10,883
Commercial Portfolio Segment [Member] | Lease Financing [Member]
Allowance for loan losses
Beginning ALLL	884
Charge-Offs
Recoveries
Provision (Credit)	152
Ending ALLL	1,036
Commercial Portfolio Segment [Member] | Agricultural Sector [Member]
Allowance for loan losses
Beginning ALLL		2
Charge-Offs
Recoveries
Provision (Credit)	2
Ending ALLL	2	2
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Allowance for loan losses
Beginning ALLL	1	9
Charge-Offs
Recoveries
Provision (Credit)		(8)
Ending ALLL	1	1
Consumer and Other [Member]
Allowance for loan losses
Beginning ALLL	349	243
Charge-Offs	(11)	(3)
Recoveries	1
Provision (Credit)	83	(4)
Ending ALLL	422	236
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member]
Allowance for loan losses
Beginning ALLL	6,563	4,164
Charge-Offs		(24)
Recoveries	16	9
Provision (Credit)	1,174	163
Ending ALLL	$ 7,753	$ 4,312

LOANS (Schedule of Loans Modifi

LOANS (Schedule of Loans Modified as Troubled Debt Restructurings) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)N	Mar. 31, 2017USD ($)N
Number of Contracts | N	1	3
Pre-Modification Outstanding Recorded Investment	$ 336	$ 611
Post-Modification Outstanding Recorded Investment		$ 611
Residential Portfolio Segment [Member] | Primary Residential Mortgages [Member]
Number of Contracts | N	1	3
Pre-Modification Outstanding Recorded Investment	$ 336	$ 611
Post-Modification Outstanding Recorded Investment		$ 611

DEPOSITS (Details of Total Depo

DEPOSITS (Details of Total Deposits) (Details) - USD ($) $ in Thousands		Mar. 31, 2018	Dec. 31, 2017
Deposits:
Time deposits over $250,000		$ 159,800	$ 160,000
Deposits:
Noninterest-bearing demand deposits		536,054	539,304
Interest-bearing checking	[1]	1,089,980	1,152,483
Savings		126,026	119,556
Money market		1,006,540	1,091,385
Certificates of deposit		540,942	543,035
Subtotal deposits		3,299,542	3,445,763
Interest-bearing demand - Brokered		180,000	180,000
Certificates of deposit - Brokered		72,614	72,591
Total deposits		3,552,156	3,698,354
Reciprocal balances		$ 369,800	$ 359,900
%
Noninterest-bearing demand deposits		15.09%	14.59%
Interest-bearing checking	[1]	30.68%	31.16%
Savings		3.55%	3.23%
Money market		28.34%	29.51%
Certificates of deposit		15.23%	14.68%
Subtotal deposits		92.89%	93.17%
Interest-bearing demand - Brokered		5.07%	4.87%
Certificates of deposit - Brokered		2.04%	1.96%
Total deposits		100.00%	100.00%
[1]	Interest-bearing checking includes $369.8 million at March 31, 2018 and $359.9 million at December 31, 2017 of reciprocal balances in the Reich & Tang or Promontory Demand Deposit Marketplace program.

DEPOSITS (Scheduled Maturities

DEPOSITS (Scheduled Maturities of Time Deposits) (Details) $ in Thousands	Mar. 31, 2018USD ($)
Scheduled maturities of time deposits
2,018	$ 266,979
2,019	179,831
2,020	65,767
2,021	18,040
2,022	15,828
Over 5 Years	67,111
Total	$ 613,556

FEDERAL HOME LOAN BANK ADVANC53

FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Advances from Federal Home Loan Banks	$ 22,898	$ 37,900
FHLB interest rate	2.03%	2.20%
Advances with fixed maturity dates	$ 22,900	$ 28,900
Weighted average interest rate on fixed maturity advances	2.03%	1.96%
Residential mortgages pledged as collateral for advances	$ 523,600	$ 1,100,000
Multifamily mortgage loans pledged as collateral for advances	550,000	1,100,000
Callable variable rate advances		$ 9,000
Weighted average interest rate on variable advances (in percent)		2.95%
Overnight borrowings of debt	$ 216,000
Average interest rate of FHLB advances	2.00%
Unused commitments from FHLB	$ 1,100,000
Unused short-term or overnight borrowings from correspondent banks	22,000
Unused short-term or overnight borrowings from FRB	$ 839,000

FEDERAL HOME LOAN BANK ADVANC54

FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS (Schedule of Maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Federal Home Loan Bank Advances Maturities Summary
2,018	$ 19,898
2,019	3,000
Total	$ 22,898	$ 37,900

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)segments	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Number of Operating Segments | segments	2
Net interest income	$ 28,393	$ 25,591
Noninterest income	10,215	7,019
Total income	38,608	32,610
Provision for loan and lease losses	1,250	1,600
Compensation and benefits	14,579	11,913
Premises and equipment expense	3,270	2,816
FDIC expense	580	686
Other noninterest expense	4,908	3,889
Total noninterest expense	24,587	20,904
INCOME BEFORE INCOME TAX EXPENSE	14,021	11,706
Income tax expense	3,214	3,724
NET INCOME	10,807	7,982
Total assets at period end	4,336,494	3,947,562	$ 4,260,547
Banking [Member]
Net interest income	26,848	24,031
Noninterest income	1,627	2,094
Total income	28,475	26,125
Provision for loan and lease losses	1,250	1,600
Compensation and benefits	10,331	9,314
Premises and equipment expense	2,839	2,537
FDIC expense	580	686
Other noninterest expense	2,660	2,016
Total noninterest expense	17,660	16,153
INCOME BEFORE INCOME TAX EXPENSE	10,815	9,972
Income tax expense	2,479	3,173
NET INCOME	8,336	6,799
Total assets at period end	4,278,010	3,901,134
Wealth Management Division [Member]
Net interest income	1,545	1,560
Noninterest income	8,588	4,925
Total income	10,133	6,485
Provision for loan and lease losses
Compensation and benefits	4,248	2,599
Premises and equipment expense	431	279
FDIC expense
Other noninterest expense	2,248	1,873
Total noninterest expense	6,927	4,751
INCOME BEFORE INCOME TAX EXPENSE	3,206	1,734
Income tax expense	735	551
NET INCOME	2,471	1,183
Total assets at period end	$ 58,484	$ 46,428

FAIR VALUE (Narrative) (Details

FAIR VALUE (Narrative) (Details) - Loans Receivable [Member] - Property A [Member]	3 Months Ended
	Mar. 31, 2018
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate	15.00%
Age of appraisal	12 months

FAIR VALUE (Schedule of Assets

FAIR VALUE (Schedule of Assets Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Securities available for sale	$ 342,553	$ 327,633
Loans held for sale, at fair value	344	984
U.S. Government-Sponsored Entities [Member]
Securities available for sale	66,876	43,701
Mortgage-Backed Securities-Residential [Member]
Securities available for sale	240,840	243,116
SBA Pool Securities [Member]
Securities available for sale	4,995	5,205
State and Political Subdivisions [Member]
Securities available for sale	23,886	24,868
Corporate Bond [Member]
Securities available for sale	3,069	3,082
Single-Issuer Trust Preferred Security [Member]
Securities available for sale	2,887	2,837
CRA Investment Fund [Member]
Securities available for sale	4,859	4,824
Recurring Basis [Member]
Loans held for sale, at fair value	344	984
Total	357,267	333,142
Derivatives	(7,796)	(3,131)
Recurring Basis [Member] | Quoted Prices in Active Market For Identical Assets (Level 1) [Member]
Loans held for sale, at fair value
Total	4,746	4,824
Derivatives
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Loans held for sale, at fair value	344	984
Total	352,521	328,318
Derivatives	(7,796)	(3,131)
Recurring Basis [Member] | Designated as Hedging Instrument [Member]
Derivatives	2,024	1,394
Derivatives	(196)
Recurring Basis [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member]
Derivatives	2,024	1,394
Derivatives	(196)
Recurring Basis [Member] | Not Designated as Hedging Instrument [Member]
Derivatives	7,600	3,131
Derivatives	(7,600)	(3,131)
Recurring Basis [Member] | Not Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member]
Derivatives	7,600	3,131
Derivatives	(7,600)	(3,131)
Recurring Basis [Member] | U.S. Government-Sponsored Entities [Member]
Securities available for sale	66,876	43,701
Recurring Basis [Member] | U.S. Government-Sponsored Entities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Securities available for sale	66,876	43,701
Recurring Basis [Member] | Mortgage-Backed Securities-Residential [Member]
Securities available for sale	240,840	243,116
Recurring Basis [Member] | Mortgage-Backed Securities-Residential [Member] | Significant Other Observable Inputs (Level 2) [Member]
Securities available for sale	240,840	243,116
Recurring Basis [Member] | SBA Pool Securities [Member]
Securities available for sale	4,995	5,205
Recurring Basis [Member] | SBA Pool Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Securities available for sale	4,995	5,205
Recurring Basis [Member] | State and Political Subdivisions [Member]
Securities available for sale	23,886	24,868
Recurring Basis [Member] | State and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member]
Securities available for sale	23,886	24,868
Recurring Basis [Member] | Corporate Bond [Member]
Securities available for sale	3,069	3,082
Recurring Basis [Member] | Corporate Bond [Member] | Significant Other Observable Inputs (Level 2) [Member]
Securities available for sale	3,069	3,082
Recurring Basis [Member] | Single-Issuer Trust Preferred Security [Member]
Securities available for sale	2,887	2,837
Recurring Basis [Member] | Single-Issuer Trust Preferred Security [Member] | Significant Other Observable Inputs (Level 2) [Member]
Securities available for sale	2,887	2,837
Recurring Basis [Member] | CRA Investment Fund [Member]
Securities available for sale	4,746	4,824
Recurring Basis [Member] | CRA Investment Fund [Member] | Quoted Prices in Active Market For Identical Assets (Level 1) [Member]
Securities available for sale	$ 4,746	$ 4,824

FAIR VALUE (Schedule of Residen

FAIR VALUE (Schedule of Residential Loans Held for Sale, at Fair Value) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Residential loans contractual balance	$ 342	$ 972
Fair value adjustment	2	12
Total fair value of residential loans held for sale	$ 344	$ 984

FAIR VALUE (Schedule of Financi

FAIR VALUE (Schedule of Financial Instruments) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financial Assets:
Securities available for sale	$ 342,553	$ 327,633
FHLB and FRB Stock	23,703	13,378
Loans held for sale, at fair value	344	984
Loans held for sale, at lower of cost or fair value	3,075	187
Accrued interest receivable	7,306	9,452
Financial Liabilities:
Federal home loan bank advances	22,898	37,900
Carrying Value [Member]
Financial Assets:
Cash and cash equivalents	153,516	113,447
Securities available for sale	342,553	327,633
CRA investment fund	4,746
FHLB and FRB Stock	23,703	13,378
Loans held for sale, at fair value	344	984
Loans held for sale, at lower of cost or fair value	3,075	187
Loans, net of allowance for loan and lease losses	3,670,601	3,668,000
Accrued interest receivable	7,306	9,452
Financial Liabilities:
Deposits	3,552,156	3,698,354
Overnight borrowings	216,000
Federal home loan bank advances	22,898	37,898
Subordinated debt	83,079	83,024
Accrued interest payable	3,406	1,756
Carrying Value [Member] | Designated as Hedging Instrument [Member]
Financial Assets:
Derivatives		1,394
Financial Liabilities:
Derivatives	196
Carrying Value [Member] | Not Designated as Hedging Instrument [Member]
Financial Assets:
Derivatives	7,600	3,131
Financial Liabilities:
Derivatives	7,600	3,131
Fair value [Member]
Financial Assets:
Cash and cash equivalents	153,516	113,447
Securities available for sale	342,553	327,633
CRA investment fund	4,746
FHLB and FRB Stock
Loans held for sale, at fair value	344	984
Loans held for sale, at lower of cost or fair value	3,366	206
Loans, net of allowance for loan and lease losses	3,642,137	3,649,132
Accrued interest receivable	7,306	9,452
Financial Liabilities:
Deposits	3,546,016	3,695,319
Overnight borrowings	216,000
Federal home loan bank advances	22,864	37,907
Subordinated debt	83,990	84,150
Accrued interest payable	3,406	1,756
Fair value [Member] | Quoted Prices in Active Market For Identical Assets (Level 1) [Member]
Financial Assets:
Cash and cash equivalents	153,516	113,447
Securities available for sale		4,824
CRA investment fund	4,746
FHLB and FRB Stock
Loans held for sale, at fair value
Loans held for sale, at lower of cost or fair value
Loans, net of allowance for loan and lease losses
Accrued interest receivable	1,405
Financial Liabilities:
Deposits	2,938,600	3,082,728
Overnight borrowings
Federal home loan bank advances
Subordinated debt
Accrued interest payable	259	192
Fair value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial Assets:
Cash and cash equivalents
Securities available for sale	342,553	322,809
CRA investment fund
FHLB and FRB Stock
Loans held for sale, at fair value	344	984
Loans held for sale, at lower of cost or fair value	3,366	206
Loans, net of allowance for loan and lease losses
Accrued interest receivable	5,901	1,041
Financial Liabilities:
Deposits	607,416	612,591
Overnight borrowings	216,000
Federal home loan bank advances	22,864	37,907
Subordinated debt
Accrued interest payable	1,912	1,495
Fair value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Financial Assets:
Cash and cash equivalents
Securities available for sale
CRA investment fund
FHLB and FRB Stock
Loans held for sale, at fair value
Loans held for sale, at lower of cost or fair value
Loans, net of allowance for loan and lease losses	3,642,137	3,649,132
Accrued interest receivable		8,411
Financial Liabilities:
Deposits
Overnight borrowings
Federal home loan bank advances
Subordinated debt	83,990	84,150
Accrued interest payable	1,235	69
Fair value [Member] | Designated as Hedging Instrument [Member]
Financial Assets:
Derivatives	2,024	1,394
Financial Liabilities:
Derivatives	196
Fair value [Member] | Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial Assets:
Derivatives	2,024	1,394
Financial Liabilities:
Derivatives	196
Fair value [Member] | Not Designated as Hedging Instrument [Member]
Financial Assets:
Derivatives	7,600	3,131
Financial Liabilities:
Derivatives	7,600	3,131
Fair value [Member] | Not Designated as Hedging Instrument [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial Assets:
Derivatives	7,600	3,131
Financial Liabilities:
Derivatives	$ 7,600	$ 3,131

REVENUE FROM CONTRACTS WITH C60

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interchange income	$ 290	$ 266
Cardholder rewards [Memebr]
Interchange income	$ 30	$ 30

REVENUE FROM CONTRACTS WITH C61

REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of Noninterest Income) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Service charges on deposits
Overdraft fees		$ 181	$ 176
Interchange income		290	266
Other		360	329
Wealth management fees		8,152	4,572
Investment brokerage fees		215	246
Gains/(losses) on sales of OREO
Other	[1]	1,017	1,430
Total noninterest other income		$ 10,215	$ 7,019
[1]	All of the other category is outside the scope of ASC 606.

REVENUE FROM CONTRACTS WITH C62

REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of Noninterest Income by Operating Segment) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Service charges on deposits
Overdraft fees		$ 181	$ 176
Interchange income		290	266
Other		360	329
Wealth management fees		8,152	4,572
Investment brokerage fees		215	246
Gains/(losses) on sales of OREO
Other	[1]	1,017	1,430
Total noninterest other income		10,215	7,019
Banking [Member]
Service charges on deposits
Overdraft fees		181	176
Interchange income		290	266
Other		360	329
Wealth management fees
Investment brokerage fees
Gains/(losses) on sales of OREO
Other	[1]	796	1,323
Total noninterest other income		1,627	2,094
Wealth Management Division [Member]
Service charges on deposits
Overdraft fees
Interchange income
Other
Wealth management fees		8,152	4,572
Investment brokerage fees		215	246
Gains/(losses) on sales of OREO
Other	[1]	221	107
Total noninterest other income		$ 8,588	$ 4,925
[1]	All of the other category is outside the scope of ASC 606.

OTHER OPERATING EXPENSES (Detai

OTHER OPERATING EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other operating expenses
Wealth management division other expense	$ 702	$ 702
Professional and legal fees	1,114	862
Advertising	311	163
Other operating expenses	2,781	2,162
Total other operating expenses	$ 4,908	$ 3,889

ACCUMULATED OTHER COMPREHENSI64

ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME (Schedule of Accumulated Other Comprehensive Income Balances, Net of Tax) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 403,678
Total other comprehensive income/(loss)	(1,757)	$ 909
Balance	422,406
Gains/(Losses) on Cash Flow Hedge [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	1,002	(440)
Cumulative Adjustment Security (ASU 2016-1)
Other Comprehensive Income/(Loss) Before Reclassifications	525	512
Amount Reclassified From Accumulated Other Comprehensive Income/(Loss)	(24)
Total other comprehensive income/(loss)	501	512
Balance	1,503	72
Net Unrealized Holding Gain/(Loss) on Securities Available for Sale, Net of Tax [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(2,214)	(1,091)
Cumulative Adjustment Security (ASU 2016-1)	127
Other Comprehensive Income/(Loss) Before Reclassifications	(2,258)	397
Amount Reclassified From Accumulated Other Comprehensive Income/(Loss)
Total other comprehensive income/(loss)	(2,258)	397
Balance	(4,345)	(694)
Accumulated Other Comprehensive Income/(Loss), Net of Tax [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(1,212)	(1,531)
Cumulative Adjustment Security (ASU 2016-1)	127
Other Comprehensive Income/(Loss) Before Reclassifications	(1,733)	909
Amount Reclassified From Accumulated Other Comprehensive Income/(Loss)	(24)
Total other comprehensive income/(loss)	(1,757)	909
Balance	$ (2,842)	$ (622)

ACCUMULATED OTHER COMPREHENSI65

ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME (Schedule of Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Securities gains, net	$ (78)
Income tax expense	(3,214)	(3,724)
Net income	10,807	7,982
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Securities gains, net
Income tax expense	7
Net income	(24)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Unrealized Holding Gain/(Loss) on Securities Available for Sale, Net of Tax [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Securities gains, net	$ (31)
Income tax expense
Net income

DERIVATIVES (Details)

DERIVATIVES (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)N	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)N
Derivative [Line Items]
Interest expense	$ 8,675	$ 5,794
Amount of Gain/(Loss) Recognized In OCI (Effective Portion)	741	$ 865
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	$ 180,000		$ 180,000
Weighted average pay rate	1.83%		1.64%
Weighted average receive rate	1.58%		1.33%
Weighted average maturity	2 years 9 months 3 days		2 years 2 months 30 days
Unrealized gain	$ 1,828
Number of contracts | N	9		9
Interest expense	$ 20		$ 361
Interest income	31
Amount of Gain/(Loss) Recognized In OCI (Effective Portion)	501		512
Amount of Gain/(Loss) Reclassified From OCI to Interest Expense	31
Amount of Gain/(Loss) Recognized in Other Non-Interest Expense (Ineffective Portion)
Fair Value	1,828		1,394
Unrealized after-tax gain of accumulated other comprehensive income loss	220
Loan Level Swaps [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	$ 333,210		$ 317,363
Weighted average pay rate	4.15%		4.11%
Weighted average receive rate	3.73%		3.43%
Weighted average maturity	7 years 8 months 12 days		7 years 7 months 6 days
Unrealized gain	$ 1,394
Number of contracts | N	46		42
Fair Value	$ 7,600		$ 3,131
Other Assets [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	130,000		180,000
Fair Value	2,024		$ 1,394
Other Liabilities [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	50,000
Fair Value	$ (196)

SUBORDINATED DEBT (Details)

SUBORDINATED DEBT (Details) - USD ($) $ in Thousands	1 Months Ended
	Dec. 31, 2017	Jun. 30, 2016
Subordinated Debt [Member]
Debt Instrument [Line Items]
Principal amount	$ 35,000	$ 50,000
Non-callable term	5 years	5 years
Notes maturity date	Dec. 15, 2027	Jun. 30, 2026
Fixed interest rate	4.75%	6.00%
LIBOR spread	2.54%	4.85%
Debt issuance costs	$ 875	$ 1,300
Parent Company [Member]
Debt Instrument [Line Items]
Net proceeds used to contribute to the Bank	29,100	40,000
Proceeds from debt retained by parent	$ 5,000	$ 10,000

ACCOUNTING PRONOUNCEMENTS (Deta

ACCOUNTING PRONOUNCEMENTS (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Business Combinations [Abstract]
Income tax benefit	$ 49
Cumulative effect adjustment on equity instrument	127
Unrealized loss	$ 176