Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Dec. 19, 2017 | |
Document And Entity Information (Abstract) | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 | |
Trading Symbol | mcb | |
Entity Registrant Name | Metropolitan Bank Holding Corp. | |
Entity Central Index Key | 1,476,034 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 8,199,720 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Cash and due from banks | $ 267,099 | $ 82,931 |
Investment securities available for sale, at estimated fair value | 33,922 | 37,329 |
Investment securities held to maturity (estimated fair value of $5,630 at September 30, 2017 and $6,419 at December 31, 2016) | 5,681 | 6,500 |
Other investments | 13,740 | 12,588 |
Loans | 1,381,649 | 1,055,706 |
Deferred loan fees and unamortized costs, net | (820) | (1,160) |
Allowance for loan and lease losses | (15,075) | (11,815) |
Net loans | 1,365,754 | 1,042,731 |
Accounts receivable, net | 3,825 | 5,420 |
Receivable from prepaid card programs, net | 6,977 | 7,566 |
Accrued interest receivable | 3,903 | 2,735 |
Premises and equipment, net | 6,010 | 5,035 |
Prepaid expenses and other assets | 7,013 | 7,733 |
Goodwill | 9,733 | 9,733 |
Total assets | 1,723,657 | 1,220,301 |
Deposits: | ||
Noninterest-bearing demand deposits | 826,345 | 403,402 |
Interest-bearing deposits | 662,298 | 590,378 |
Total deposits | 1,488,643 | 993,780 |
Borrowed Funds | 43,750 | 78,418 |
Trust preferred securities | 20,620 | 20,620 |
Subordinated debts, net of issuance cost | 24,468 | |
Accounts payable, accrued expenses and other liabilities | 20,411 | 10,901 |
Accrued interest payable | 547 | 227 |
Debit cardholder balances | 6,259 | 6,864 |
Total liabilities | 1,604,698 | 1,110,810 |
Stockholders' equity: | ||
Class B preferred stock, $0.01 par value, authorized 2,000,000 shares, issued and outstanding 272,636 at September 30, 2017 and 272,636 at December 31, 2016, respectively | 3 | 3 |
Common stock, $0.01 par value, authorized 10,000,000 shares, issued and outstanding 4,633,012 at September 30, 2017 and 4,604,563 at December 31, 2016 | 45 | 45 |
Additional paid in capital | 96,422 | 96,116 |
Retained earnings | 22,536 | 13,492 |
Accumulated other comprehensive loss, net of tax effect | (47) | (165) |
Total stockholders' equity | 118,959 | 109,491 |
Total liabilities and stockholders' equity | $ 1,723,657 | $ 1,220,301 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Securities held to maturity, fair value | $ 5,630 | $ 6,419 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 4,633,012 | 4,604,563 |
Common stock, shares outstanding | 4,633,012 | 4,604,563 |
Preferred Class B [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 272,636 | 272,636 |
Preferred stock, shares outstanding | 272,636 | 272,636 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INTEREST AND DIVIDEND INCOME | ||||
Loans, including fees | $ 15,537 | $ 10,922 | $ 40,771 | $ 30,874 |
Securities, Taxable | 201 | 224 | 620 | 708 |
Securities, Tax-exempt | 7 | 8 | 22 | 23 |
Money market funds and commercial paper | 82 | 11 | 215 | 54 |
Other interest and dividends | 574 | 159 | 1,261 | 565 |
Total interest and dividend income | 16,401 | 11,324 | 42,889 | 32,224 |
INTEREST EXPENSE items | ||||
Deposits | 1,588 | 1,274 | 4,316 | 3,620 |
Borrowed funds | 244 | 110 | 674 | 585 |
Trust Preferred Securities | 165 | 122 | 469 | 380 |
Subordinated debt expense | 440 | 918 | ||
Total interest expense | 2,437 | 1,506 | 6,377 | 4,585 |
Net interest income | 13,964 | 9,818 | 36,512 | 27,639 |
Provision for loan and lease losses | 1,200 | 190 | 3,560 | 2,000 |
Net interest income after provision for loan and lease losses | 12,764 | 9,628 | 32,952 | 25,639 |
NON-INTEREST INCOME | ||||
Service charges on deposit accounts | 836 | 223 | 1,633 | 627 |
Other service charges and fees | 523 | 201 | 939 | 982 |
Loan prepayment penalties | 27 | 119 | 40 | 388 |
Debit card income | 847 | 777 | 2,440 | 2,098 |
Net gains on sales of securities | 40 | |||
Total non-interest income | 2,233 | 1,320 | 5,052 | 4,135 |
NON-INTEREST EXPENSE | ||||
Compensation and benefits | 4,847 | 5,640 | 13,688 | 13,437 |
Bank premises and equipment | 1,075 | 987 | 3,185 | 2,903 |
Directors fees | 316 | 183 | 665 | 499 |
Insurance expense | 60 | 88 | 204 | 251 |
Professional fees | 976 | 407 | 1,865 | 1,184 |
FDIC assessment | 349 | 182 | 624 | 507 |
Core processing fees | 423 | 198 | 953 | 700 |
Other expenses | 544 | 741 | 1,782 | 1,851 |
Total non-interest expense | 8,590 | 8,426 | 22,966 | 21,332 |
Income before income taxes | 6,407 | 2,522 | 15,038 | 8,442 |
Income tax expense | 2,562 | 1,072 | 5,994 | 3,478 |
Net Income | $ 3,845 | $ 1,450 | $ 9,044 | $ 4,964 |
PER COMMON SHARE DATA | ||||
Earnings (Loss) per share - basic | $ 0.83 | $ (0.52) | $ 1.95 | $ 0.45 |
Earnings (Loss) per share - diluted | $ 0.82 | $ (0.52) | $ 1.94 | $ 0.45 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,845 | $ 1,450 | $ 9,044 | $ 4,964 |
Other comprehensive income, net of tax: | ||||
Net unrealized gains (losses) on securities | 42 | (87) | 204 | 585 |
Tax effect | (16) | 31 | (86) | (207) |
Net of tax | 26 | (56) | 118 | 378 |
Reclassification adjustment for net gains on sales of securities included in net income | (40) | |||
Reclassification adjustment for net gains on sales of securities included in net income, Tax effect | 17 | |||
Reclassification adjustment for net gains on sales of securities included in net income, Net of tax | (23) | |||
Total other comprehensive income (loss), net of tax | 26 | (56) | 118 | 355 |
Comprehensive income, net of tax | $ 3,871 | $ 1,394 | $ 9,162 | $ 5,319 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI (Loss), Net [Member] | Preferred Class A [Member] | Preferred Class B [Member] | Total |
Balance beginning, Shares, Preferred Stock at Dec. 31, 2015 | 391,044 | 60,000 | |||||
Balance, Shares at Dec. 31, 2015 | 3,095,784 | ||||||
Beginning balance at Dec. 31, 2015 | $ 30 | $ 63,796 | $ 12,105 | $ 16 | $ 4 | $ 1 | $ 75,952 |
Conversion of preferred stock to common stock, Shares | 60,000 | (60,000) | |||||
Conversion of preferred stock to common stock | $ 1 | $ (1) | |||||
Purchase and retirement of preferred stock, Shares | (123,924) | ||||||
Purchase and retirement of preferred stock | (1,238) | (161) | $ (1) | (1,400) | |||
Preferred stock redemption, Shares | (267,120) | ||||||
Preferred stock redemption | (2,624) | (45) | $ (3) | (2,672) | |||
Issuance of preferred stock, net, Shares | 272,636 | ||||||
Issuance of preferred stock, net | 5,519 | $ 3 | 5,522 | ||||
Issuance of common stock, net, Shares | 1,448,418 | ||||||
Issuance of common stock, net | $ 14 | 28,403 | 28,417 | ||||
Class A preferred dividend payment | (3,420) | (3,420) | |||||
Employee stock-based compensation expense | 2,250 | 2,250 | |||||
Net income | 4,964 | 4,964 | |||||
Other comprehensive income | 355 | 355 | |||||
Balance ending, Shares, Preferred Stock at Sep. 30, 2016 | 272,636 | ||||||
Balance, Shares at Sep. 30, 2016 | 4,604,202 | ||||||
Ending balance at Sep. 30, 2016 | $ 45 | 96,106 | 13,443 | 371 | $ 3 | 109,968 | |
Beginning balance at Jun. 30, 2016 | 427 | ||||||
Net income | 1,450 | ||||||
Other comprehensive income | (56) | (56) | |||||
Balance ending, Shares, Preferred Stock at Sep. 30, 2016 | 272,636 | ||||||
Balance, Shares at Sep. 30, 2016 | 4,604,202 | ||||||
Ending balance at Sep. 30, 2016 | $ 45 | 96,106 | 13,443 | 371 | $ 3 | $ 109,968 | |
Balance beginning, Shares, Preferred Stock at Dec. 31, 2016 | 272,636 | ||||||
Balance, Shares at Dec. 31, 2016 | 4,604,563 | 4,604,563 | |||||
Beginning balance at Dec. 31, 2016 | $ 45 | 96,116 | 13,492 | (165) | $ 3 | $ 109,491 | |
Restricted stock, net of forfeiture, Shares | 28,449 | ||||||
Restricted stock, net of forfeiture | (7) | (7) | |||||
Employee stock-based compensation expense | 313 | 313 | |||||
Net income | 9,044 | 9,044 | |||||
Other comprehensive income | 118 | $ 118 | |||||
Balance ending, Shares, Preferred Stock at Sep. 30, 2017 | 272,636 | ||||||
Balance, Shares at Sep. 30, 2017 | 4,633,012 | 4,633,012 | |||||
Ending balance at Sep. 30, 2017 | $ 45 | 96,422 | 22,536 | (47) | $ 3 | $ 118,959 | |
Beginning balance at Jun. 30, 2017 | (73) | ||||||
Net income | 3,845 | ||||||
Other comprehensive income | 26 | $ 26 | |||||
Balance ending, Shares, Preferred Stock at Sep. 30, 2017 | 272,636 | ||||||
Balance, Shares at Sep. 30, 2017 | 4,633,012 | 4,633,012 | |||||
Ending balance at Sep. 30, 2017 | $ 45 | $ 96,422 | $ 22,536 | $ (47) | $ 3 | $ 118,959 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 9,044 | $ 4,964 |
Adjustments to reconcile net income to net cash: | ||
Depreciation and amortization | 695 | 583 |
Net amortization (accretion) on securities | (36) | (476) |
Net gain on sale of securities | (40) | |
Provision for loan and lease losses | 3,560 | 2,000 |
Net change in deferred loan fees | (340) | 242 |
Deferred income tax benefit | 85 | 263 |
Stock-based compensation expense | 313 | 2,250 |
Forfeiture of restricted shares | (7) | |
Net change in: | ||
Accrued interest receivable | (1,168) | (55) |
Accounts payable, accrued expenses and other liabilities | 9,829 | 6,350 |
Accounts receivable, net | 1,595 | 808 |
Receivable from prepaid card programs, net | 589 | (5,591) |
Prepaid expenses and other assets | (54) | (337) |
Net cash provided by operating activities | 24,105 | 10,961 |
Cash flows from investing activities: | ||
Loan originations and payments, net | (326,243) | (142,886) |
Redemptions of other investments | 7,134 | 3,496 |
Purchases of other investments | (8,286) | (140) |
Purchase of securities available for sale | (1,434) | (1,533) |
Proceeds from sales of securities available for sale | 2,771 | |
Proceeds from paydowns and maturities of securities available for sale | 5,110 | 6,930 |
Purchase of securities held to maturity | (2,659) | |
Proceeds from paydowns of securities held to maturity | 790 | 715 |
Purchase of premises and equipment, net | (1,671) | (801) |
Net cash used in investing activities | (324,600) | (134,107) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net | 28,417 | |
Proceeds from issuance of preferred stock, net | 5,522 | |
Purchase redemption and retirement of treasury preferred stock | (4,072) | |
Payment of preferred stock dividend | (3,420) | |
Proceeds from issuance of subordinated debt, net of issuance cost | 24,468 | |
Proceeds from FHLB advances | 280,000 | |
Repayments of FHLB advances | (314,668) | (77,678) |
Net increase in deposits | 494,863 | 157,548 |
Net cash provided by financing activities | 484,663 | 106,317 |
Increase (decrease) in cash and cash equivalents | 184,168 | (16,829) |
Cash and cash equivalents at the beginning of the period | 82,931 | 65,647 |
Cash and cash equivalents at the end of the period | 267,099 | 48,818 |
Supplemental information: | ||
Cash paid during the year for: Interest | 6,057 | 4,639 |
Cash paid during the year for: Taxes | $ 4,862 | $ 3,980 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIG NIFIC ANT ACCOUNTING POLICIES Organization : Metropolitan Bank Holding Corp. (a New York C orporation) (the “Company”) is a bank holding company whose principal activity is the ownership and management of Metropolitan Commercial Bank (the “Bank”), its wholly-owned subsidiary. The Bank’s primary market is the New York metropolitan area. The Bank offers a traditional range of services to individuals, businesses and others needing banking services. Its primary lending products are commercial mortgages and commercial and industrial loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. The Bank’s primary deposit products are checking, savings, and term deposit accounts, and its deposit accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) under the maximum amounts allowed by law. The Bank commenced operations on June 22, 1999 . The Bank faces competition from numerous existing New York bank holding companies, commercial banks and savings banks which have been in business for many years and have established customer bases. Competition also comes from a variety of other non-bank businesses that offer financial services. Many of these competitors operate in the same geographic market in which the Bank operates, are well-known with long-standing relationships and businesses and individuals in the communities, and are substantially larger with greater resources than the Bank. The Company is subject to regulations of certain state and federal agencies and, accordingly, is periodically examined by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Company’s business is susceptible to being affected by state and federal legislation and regulations. A summary of the Company’s significant accounting policies consistently applied in the preparation of the accompanying financial statements follows. Basis of Presentation : The accounting and reporting policies of the Company conform with U.S generally accepted accounting principles and predominant practices within the U.S. banking industry. The consolidated financial statements include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated . The Unaudited Consolidated Financial Statements, which include the accounts of the Company and the Bank, have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The Unaudited Consolidated Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. The accounting and reporting policies of the Company conform with U.S generally accepted accounting principles and predominant practices within the U.S. banking industry . Recently Issued Accounting Standards : Pursuant to the Jumpstart Our Business Startups Act (“JOBS Act”), Emerging Growth Company (“EGC”) is permitted to elect to adopt new accounting guidance using adoption dates of nonpublic entities. The Company elected delayed effective dates of recently issued accounting standards. Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606)” implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In August 2016, the (Financial Accounting Standards Board FASB) deferred the effective date of the ASU by one year which means ASU 2014-09 will be effective for the Company on January 1, 2019. Management is in the process of evaluating revenue streams to determine the impact the ASU could have on the Company’s operating results or financial condition . NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires companies that lease valuable assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. The amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, however, early adoption is permitted. Under ASU 2016-02, the Company will recognize a right-of-use asset and a lease obligation liability on the consolidated balance sheet, which will increase the Company’s assets and liabilities. The Company is evaluating other potential impact of ASU 2016-02 on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires the measurement of all expected credit losses for financial assets held at the reporting date be based on historical experience, current condition, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. This guidance also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For the Company, this guidance is effective for fiscal years and interim periods beginning after December 31, 2020. The Company is currently evaluating this guidance to determine the impact on its consolidated financial statements. The Company expects to recognize a one-time cumulative increase to the allowance for loan and lease losses as of the beginning of the reporting period in which the ASU takes effect, but, cannot yet determine the magnitude of the impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates the second step in the goodwill impairment test which requires an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for the Company beginning January 1, 2021, with early adoption permitted for goodwill impairment tests performed after January 1, 2017. Management expects ASU 2017-04 will not have a significant impact on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount as discounts continue to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The guidance includes a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Management expects ASU 2017-08 will not have a significant impact on its consolidated financial statements. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2017 | |
INVESTMENT SECURITIES [Abstract] | |
INVESTMENT SECURITIES | NOTE 2 - INVESTMENT SECURITIES The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at September 30, 2017 and December 31, 2016 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses (dollars in thousands): Gross Gross Amortized Unrealized Unrealized Fair September 30, 2017 Cost Gains Losses Value Available-for-Sale Securities: Residential mortgage-backed securities $ 26,145 $ 154 $ (129) $ 26,170 Residential collateralized mortgage obligations 3,022 - (72) 2,950 Commercial mortgage backed securities guaranteed by U.S. government sponsored agencies 1,591 - (25) 1,566 Municipal bond 1,105 21 - 1,126 CRA mutual fund 2,148 - (38) 2,110 Total securities available-for-sale $ 34,011 $ 175 $ (264) $ 33,922 Held to Maturity Securities: Residential mortgage-backed securities $ 5,656 $ - $ (51) $ 5,605 Foreign government securities 25 - - 25 Total securities held-to-maturity $ 5,681 $ - $ (51) $ 5,630 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value Available-for-Sale Securities: Residential mortgage-backed securities $ 29,152 $ 165 $ (290) $ 29,027 Residential collateralized mortgage obligations 5,233 - (130) 5,103 Municipal bond 1,122 14 - 1,136 CRA mutual fund 2,115 - (52) 2,063 Total securities available-for-sale $ 37,622 $ 179 $ (472) $ 37,329 Held to Maturity Securities: Residential mortgage-backed securities $ 6,475 $ - $ (81) $ 6,394 Foreign government securities 25 - - 25 Total securities held-to-maturity $ 6,500 $ - $ (81) $ 6,419 NOTE 2 – INVESTMENT SECURITIES (Continued) The proceeds from sales and calls of securities and the associated gains and losses are listed below for the three and nine months ended September 30, 2017 and 2016 (dollars in thousands): For the three months ended September 30, 2017 2016 Proceeds $ - $ - Gross gains - - Gross losses - - For the nine months ended September 30, 2017 2016 Proceeds $ - $ 2,771 Gross gains - 40 Gross losses - - The tax provision related to the net realized gain was $17,000 in 2016. NOTE 2 – INVESTMENT SECURITIES (Continued) The amortized cost and fair value of debt securities at September 30, 2017 and December 31, 2016 are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mutual funds and mortgage-backed securities are shown separately (dollars in thousands): Held to Maturity Available for Sale Amortized Fair Amortized Fair September 30, 2017 Cost Value Cost Value Within one year $ - $ - $ - $ - One to five years 25 25 - - Five to ten years - - - - Beyond ten years - - 1,105 1,126 25 25 1,105 1,126 Residential mortgage-backed securities 5,656 5,605 26,145 26,170 Residential collateralized mortgage obligations - - 3,022 2,950 Commercial mortgage backed securities guaranteed by U.S. government sponsored agencies - - 1,591 1,566 CRA mutual fund - - 2,148 2,110 $ 5,681 $ 5,630 $ 34,011 $ 33,922 Held to Maturity Available for Sale Amortized Fair Amortized Fair December 31, 2016 Cost Value Cost Value Within one year $ - $ - $ - $ - One to five years 25 25 - - Five to ten years - - - - Beyond ten years - - 1,122 1,136 25 25 1,122 1,136 Residential mortgage-backed securities 6,475 6,394 29,152 29,027 Residential collateralized mortgage obligations - - 5,233 5,103 CRA mutual fund - - 2,115 2,063 $ 6,500 $ 6,419 $ 37,622 $ 37,329 NOTE 2 - INVESTMENT SECURITIES (Continued) There were no securities pledged at September 30, 2017 and December 31, 2016 to secure borrowings. At September 30, 2017 and December 31, 2016 , all of the mortgage-backed securities and collateralized mortgage obligations held by the Bank were issued by U.S. government-sponsored entities and agencies, primarily Fannie Mae and Freddie Mac, institutions which the government has affirmed its commitment to support. Securities with unrealized losses at September 30, 2017 and December 31, 2016 , aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands): Less than 12 Months 12 months or more Total September 30, 2017 Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Residential mortgage-backed securities $ 13,943 $ (129) $ - $ - $ 13,943 $ (129) Residential collateralized mortgage obligations 1,103 (23) 1,847 (49) 2,950 (72) Commercial mortgage backed securities - - 1,566 (25) 1,566 (25) CRA mutual fund - - 2,110 (38) 2,110 (38) Total available for sale $ 15,046 $ (152) $ 5,523 $ (112) $ 20,569 $ (264) Residential mortgage-backed securities 5,605 (51) - - 5,605 (51) Total held-to-maturity $ 5,605 $ (51) $ - $ - $ 5,605 $ (51) December 31, 2016 Residential mortgage-backed securities $ 16,733 $ (290) $ - $ - $ 16,733 $ (290) Residential collateralized mortgage obligations 2,887 (60) 2,216 (70) 5,103 (130) CRA mutual fund - - 2,063 (52) 2,063 (52) Total available for sale $ 19,620 $ (350) $ 4,279 $ (122) $ 23,899 $ (472) Residential mortgage-backed securities $ 6,394 $ (81) $ - $ - $ 6,394 $ (81) Total held-to-maturity $ 6,394 $ (81) $ - $ - $ 6,394 $ (81) Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2017 and December 31, 2016 . At September 30, 2017 and December 31, 2016 , there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2017 | |
LOANS [Abstract] | |
LOANS | NOTE 3 - LOANS Loans, net consist of the following as of September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 Real estate Commercial $ 736,487 $ 547,711 Construction 37,723 29,447 Multifamily 187,753 117,373 One-to-four family 25,777 26,480 987,740 721,011 Commercial and industrial 346,738 315,870 Consumer 47,171 18,825 Total loans 1,381,649 1,055,706 Deferred fees (820) (1,160) Allowance for loan and lease losses (15,075) (11,815) Balance at the end of the period $ 1,365,754 $ 1,042,731 The following table presents the activity in the allowance for loan and lease losses by segment for the three and nine months ending September 30, 2017 and 2016 (dollars in thousands): For the three months ended September 30, 2017 Commercial Real Estate Commercial & Industrial Construction Multifamily One-to-four Family Consumer Total Allowance for loan and lease losses: Beginning balance $ 6,487 $ 5,560 $ 557 $ 958 $ 85 $ 262 $ 13,909 Provision (credit) for loan and lease losses 637 443 (33) 34 2 117 1,200 Charge-offs - - - - - (34) (34) Recoveries - - - - - - - Total ending allowance balance $ 7,124 $ 6,003 $ 524 $ 992 $ 87 $ 345 $ 15,075 For the three months ended September 30, 2016 Commercial Real Estate Commercial & Industrial Construction Multifamily One-to-four Family Consumer Total Allowance for loan and lease losses: Beginning balance $ 4,835 $ 5,562 $ 458 $ 404 $ 385 $ 60 $ 11,704 Provision (credit) for loan and lease losses 440 (352) 33 35 5 29 190 Charge-offs - (123) - - (274) - (397) Recoveries - - - - - - - Total ending allowance balance $ 5,275 $ 5,087 $ 491 $ 439 $ 116 $ 89 $ 11,497 NOTE 3 – LOANS (Continued) For the nine months ended September 30, 2017 Commercial Real Estate Commercial & Industrial Construction Multifamily One-to-four Family Consumer Total Allowance for loan and lease losses: Beginning balance $ 5,206 $ 5,364 $ 409 $ 620 $ 109 $ 107 $ 11,815 Provision (credit) for loan and lease losses 1,918 859 115 372 (22) 318 3,560 Charge-offs - (220) - - - (80) (300) Recoveries - - - - - - - Total ending allowance balance $ 7,124 $ 6,003 $ 524 $ 992 $ 87 $ 345 $ 15,075 For the nine months ended September 30, 2016 Commercial Real Estate Commercial & Industrial Construction Multifamily One-to-four Family Consumer Total Allowance for loan and lease losses: Beginning balance $ 3,650 $ 4,254 $ 589 $ 986 $ 444 $ 19 $ 9,942 Provision (credit) for loan and lease losses 1,625 1,007 (98) (547) (57) 70 2,000 Charge-offs - (174) - - (274) - (448) Recoveries - - - - 3 - 3 Total ending allowance balance $ 5,275 $ 5,087 $ 491 $ 439 $ 116 $ 89 $ 11,497 The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans by portfolio segment based on impairment method as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 Commercial Real Estate Commercial & Industrial Construction Multifamily One-to-four Family Consumer Total Allowance for and lease loan losses: Individually evaluated for impairment $ - $ 366 $ - $ - $ - $ 63 $ 429 Collectively evaluated for impairment 7,124 5,637 524 992 87 282 14,646 Total ending allowance balance $ 7,124 $ 6,003 $ 524 $ 992 $ 87 $ 345 $ 15,075 Loans: Individually evaluated for impairment $ 6,299 $ 4,775 $ - $ - $ 3,594 $ 125 $ 14,793 Collectively evaluated for impairment 730,188 341,963 37,723 187,753 22,183 47,046 1,366,856 Total ending loan balance $ 736,487 $ 346,738 $ 37,723 $ 187,753 $ 25,777 $ 47,171 $ 1,381,649 NOTE 3 - LOANS (Continued) December 31, 2016 Commercial Real Estate Commercial & Industrial Construction Multifamily One-to-four Family Consumer Total Allowance for loan and lease losses: Individually evaluated for impairment $ - $ 366 $ - $ - $ 10 $ - $ 376 Collectively evaluated for impairment 5,206 4,998 409 620 99 107 11,439 Total ending allowance balance $ 5,206 $ 5,364 $ 409 $ 620 $ 109 $ 107 $ 11,815 Loans: Individually evaluated for impairment $ 5,504 $ 4,915 $ - $ - $ 1,130 $ - $ 11,549 Collectively evaluated for impairment 542,207 310,955 29,447 117,373 25,350 18,825 1,044,157 Total ending loan balance $ 547,711 $ 315,870 $ 29,447 $ 117,373 $ 26,480 $ 18,825 $ 1,055,706 The following table presents loans individually evaluated for impairment recognized as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 Unpaid Principal Balance Recorded Investment Allowance for Loan and Lease Losses Allocated With an allowance recorded: Commercial & industrial $ 8,783 $ 3,660 $ 366 Consumer 125 125 63 Total $ 8,908 $ 3,785 $ 429 Without an allowance recorded: Commercial real estate $ 6,768 $ 6,299 $ - Commercial & industrial 1,115 1,115 - One-to-four family 3,871 3,594 - Total $ 11,754 $ 11,008 $ - NOTE 3 - LOANS (Continued) December 31, 2016 Unpaid Principal Balance Recorded Investment Allowance for Loan and Lease Losses Allocated With an allowance recorded: Commercial & industrial $ 8,783 $ 3,660 $ 366 One-to-four family 694 565 10 Total $ 9,477 $ 4,225 $ 376 Without an allowance recorded: Commercial real estate $ 5,974 $ 5,504 $ - Commercial & industrial 1,255 1,255 - One-to-four family 713 565 - Total $ 7,942 $ 7,324 $ - The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans as of and for the three month periods ended September 30, 2017 and 2016 (in thousands): For the three months ended September 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With an allowance recorded: Commercial & industrial $ 3,660 $ - $ - $ - One-to-four family - - 564 7 Consumer 125 - - - Total $ 3,785 $ - $ 564 $ 7 Without an allowance recorded: Commercial real estate $ 6,307 $ 50 $ 11,463 $ 121 Commercial & industrial 1,130 12 1,300 13 One-to-four family 3,604 37 1,087 6 Total $ 11,041 $ 99 $ 13,850 $ 140 NOTE 3 - LOANS (Continued) The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans as of and for the nine month periods ended September 30, 2017 and 2016 (in thousands): For the nine months ended September 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With an allowance recorded: Commercial & industrial $ 3,660 $ - $ - $ - One-to-four family - - 564 16 Consumer 127 4 - - Total $ 3,787 $ 4 $ 564 $ 16 Without an allowance recorded: Commercial real estate $ 6,380 $ 227 $ 11,587 $ 382 Commercial & industrial 1,185 36 1,355 41 One-to-four family 3,616 96 1,087 17 Total $ 11,181 $ 359 $ 14,029 $ 440 Interest on non-accrual loans not recognized was $62,000 and $14,000 for the three months ended September 30, 2017 and September 30, 2016 . Interest on non-accrual loans not recognized was $173,000 and $61,000 for the nine months ended September 30, 2017 and September 30, 2016 . Non-accrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following tables present the recorded investment in non-accrual loans and loans past due over 90 days still on accrual by class of loans as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial real estate $ 841 $ - Commercial & industrial 3,660 - One-to-four family 2,466 - Consumer 125 - Total $ 7,092 $ - December 31, 2016 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ 3,660 $ - NOTE 3 - LOANS (Continued) The following tables present the aging of the recorded investment in past due loans by class of loans as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 30-59 Days 60-89 Days Greater than 90 days Total Past Due Loans not Past Due Total Commercial real estate $ - $ - $ 841 $ 841 $ 735,646 $ 736,487 Commercial & industrial 88 - 3,660 3,748 342,990 346,738 Construction - - - - 37,723 37,723 Multifamily - - - - 187,753 187,753 One-to-four family - - - - 25,777 25,777 Consumer 109 - 125 234 46,937 47,171 Total $ 197 $ - $ 4,626 $ 4,823 $ 1,376,826 $ 1,381,649 December 31, 2016 30-59 Days 60-89 Days Greater than 90 days Total Past Due Loans not Past Due Total Commercial real estate $ - $ 958 $ - $ 958 $ 546,753 $ 547,711 Commercial & industrial 14 3,922 - 3,936 311,934 315,870 Construction - - - - 29,447 29,447 Multifamily - - - - 117,373 117,373 One-to-four family - - - - 26,480 26,480 Consumer - 34 - 34 18,791 18,825 Total $ 14 $ 4,914 $ - $ 4,928 $ 1,050,778 $ 1,055,706 Troubled Debt Restructurings: Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Included in impaired loans at September 30, 2017 and December 31, 2016, were $7.7 million and $7.9 million of loans modified in troubled debt restructurings. The Bank has not allocated specific reserves to those customers with loans modified in troubled debt restructurings as of September 30, 2017, down from $10 thousand allocated at December 31, 2016. The Bank has not committed to lend additional amounts as of September 30, 2017 and December 31, 2016, to customers with outstanding loans that are classified as troubled debt restructurings. During the three and nine months ended September 30, 2017 and September 30, 2016, there were no loans modified as troubled debt restructurings, and there were no payment defaults on any loans previously identified as troubled debt restructurings for which there was a payment default within twelve months following the modification. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Bank’s internal underwriting policy . Credit Quality Indicators: The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Bank analyzes all loans individually by classifying the loans as to credit risk at least annually. An analysis is performed on a quarterly basis for loans classified as special mention, substandard, or doubtful. The Bank uses the following definitions for risk ratings: Special Mention - Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. NOTE 3 - LOANS (Continued) Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows (dollars in thousands): September 30, 2017 Pass Special Mention Substandard Doubtful Total Commercial real estate $ 727,068 $ 7,399 $ 2,020 $ - $ 736,487 Commercial & industrial 334,663 8,415 3,660 - 346,738 Construction 37,723 - - - 37,723 Multifamily 187,753 - - - 187,753 Total $ 1,287,207 $ 15,814 $ 5,680 $ - $ 1,308,701 December 31, 2016 Pass Special Mention Substandard Doubtful Total Commercial real estate $ 542,206 $ 4,293 $ 1,212 $ - $ 547,711 Commercial & industrial 309,295 2,915 3,660 - 315,870 Construction 29,447 - - - 29,447 Multifamily 117,373 - - - 117,373 Total $ 998,321 $ 7,208 $ 4,872 $ - $ 1,010,401 For one-to-four family loans and consumer loans, the Bank evaluates credit quality based on the aging status of the loan, which was previously presented, and by performance status. Non-performing loans are loans past due over 90 days or more still accruing interests and loans on non-accrual status. The following table presents the recorded investment in one-to-four family and consumer loans based on performance status as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 Performing Non-Performing Total One-to-four family $ 23,311 $ 2,466 $ 25,777 Consumer 47,046 125 47,171 Total $ 70,357 $ 2,591 $ 72,948 December 31, 2016 Performing Non-Performing Total One-to-four family $ 26,480 $ - $ 26,480 Consumer 18,825 - 18,825 Total $ 45,305 $ - $ 45,305 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2017 | |
PER COMMON SHARE DATA | |
EARNINGS PER SHARE | NOTE 4 – EARNINGS PER SHARE The computation of basic and diluted earnings per share is shown below (in thousands, except per share data): Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Net income $ 3,845 $ 1,450 $ 9,044 $ 4,964 Less: Dividends paid to preferred stockholders - (3,420) - (3,420) Less: Earnings allocated to participating securities (74) (39) (174) (35) Net income (loss) available to common stockholders 3,771 (2,009) 8,870 1,509 Common and common equivalent shares: Weighted average common shares outstanding including participating shares 4,633 3,962 4,632 3,420 Less: Weighted average participating securities (89) (78) (89) (78) Weighted average common shares outstanding 4,544 3,884 4,543 3,342 Incremental shares from assumed conversion of options 33 - 33 33 Weighted average common and common equivalent shares 4,577 3,884 4,576 3,375 Basic earnings (loss) per share $ 0.83 $ (0.52) $ 1.95 $ 0.45 Diluted earnings (loss) per share 0.82 (0.52) 1.94 0.45 Stock options for 45,500 shares of common stock were not considered in computing diluted earnings per common share for three months and nine months ended September 30, 2017 and 2016 because they were antidilutive. |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 9 Months Ended |
Sep. 30, 2017 | |
STOCK COMPENSATION PLAN [Abstract] | |
STOCK COMPENSATION PLAN | NOTE 5 - STOCK COMPENSATION PLAN The Company has two share-based compensation plans which are described below. Stock Option Plan The Company established the 1999 Stock Option Plan (the “1999 Plan”), as amended, under which certain employees and directors may receive stock options. Stock options are generally granted with an exercise price equal to 100% of the fair value of the common stock at the date of grant. As of September 30, 2017 and December 31, 2016 , there were no unissued shares of the Company’s common stock authorized for option grants under the Plan. Equity Incentive Plan In May 2009 the Company approved the 2009 Equity Incentive Plan (the “2009 Plan”) as a successor to the 1999 Plan. The 2009 Plan permits the granting of restricted shares, incentive stock options (“ISO”), nonqualified stock options, stock appreciation rights, restricted share units and other stock-based awards to employees, directors, officers, consultants, advisors, suppliers and any other persons or entity whose services are considered valuable for up to 1,183,000 shares. The authorized shares will be new issues upon exercise of any options granted. Under the terms of the 2009 Plan, each option agreement cannot have an exercise price that is less than 100% of the fair value of the shares covered by the option on the date of grant. In the case of an ISO granted to any 10% stockholder, the exercise price shall not be less than 110% of the fair value of the shares covered by the option on the date of grant . In no event shall the exercise price of an option be less than the par value of the shares for which the option is exercisable. In no event shall the exercise period exceed ten years from the date of grant of the option, except, in the case of an ISO granted to a 10% s tock holder, t he exercise period shall not exceed five years from the date of grant. In the event of a change in control, the Committee may determine that any award then outstanding shall be assumed or an equivalent award shall be substituted by the successor c ompany . NOTE 5 - STOCK COMPENSATION PLAN (Continued) The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities based on historical volatilities of the Company’s common stock are not significant. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Historically, the Company has not paid a dividend on its common shares and does not expect to do so in the near future. No options were granted during three or nine months ended September 30, 2017 and 2016 . A summary of the status of the Company’s stock option plan and the change during the nine months ended September 30, 2017 is presented below: For the nine months ended September 30, 2017 Number of Options Weighted Average Exercise Price Outstanding, beginning of period 276,500 $ 19.97 Granted - - Exercised - - Cancelled/forfeited - - Outstanding, end of year 276,500 $ 19.97 Options vested and exercisable at period-end 276,500 $ 19.97 Weighted average fair value of options granted during the year $ - Weighted average remaining contractual life (years) 5.74 There was no unrecognized compensation cost related to non-vested s tock options granted under the Plan during the three and nine months ended September 30, 2017 and September 30, 2016 . There was no compensation cost related to stock option plan for the three and nine months ended September 30, 2017. 178,600 shares of stock options were accelerated to vest as part of restructuring an executive management employment agreement, during the third quarter of 2016. Total compensation cost related to this plan was $528,000 and $621,000 for the three and nine months ended September 30, 2016 . The following table summarizes information about stock options outstanding at September 30, 2017 : Options Outstanding Weighted Range of Average Weighted Average Number Remaining Average Exercise Outstanding at Contractual Exercise Prices September 30, 2017 Life Price $10 - 20 231,000 6.64 $ 18.00 $21 - 30 45,500 1.15 $ 30.00 $10 - 30 276,500 5.74 $ 19.97 NOTE 5 - STOCK COMPENSATION PLAN (Continued) The Company issued restricted stock awards to certain key personnel under the 2009 Equity Incentive Plan. Each restricted stock award vests based on vesting schedule outlined in the reward agreement. Restricted stock awards are subject to forfeiture if the holder is not employed by the Company on the vesting date. In 2013, stock holders approved an additional 300,000 shares available under the plan, and in 2016, an additional 760,000 shares were authorized. Total shares issuable under the plan are 823,122 at September 30, 2017 . There were 31,616 shares issued in the first nine months of 2017 and none during the three months ended September 30, 2017 . The fair value of the shares granted was estimated on the date of grant based on the most recent equity offering. As of September 30, 2017 , there was $1.2 million of total unrecognized compensation expense related to the restricted stock awards. The cost is expected to be recognized over a weighted-average period of 3.33 years. Total compensation cost that has been charged against income for this plan was $109,000 and $306,000 respectively, for the three and nine months ended September 30, 2017 and $1.5 million and $1.6 million for the three and nine months ending September 30, 2016, reflecting the vesting of 66,667 shares during the third quarter of 2016. After tax amounts charged against income for this plan were $63,000 and $174,000 respectively, for the three and nine months ended September 30, 2017 and $1.2 million and $1.3 million for the three and nine months ending September 30, 2016. The following table summarizes the changes in the Company’s non-vested restricted stock awards for the nine months ended September 30, 2017 : Weighted Number of Average Grant Shares Date Fair Value Outstanding, January 1, 2017 64,638 $ 20.42 Granted 31,616 21.00 Forfeited (3,167) 18.00 Vested (4,000) 21.00 Outstanding at September 30, 2017 89,087 $ 20.69 The total fair value of shares vested was $84,000 during the nine months ended September 30, 2017 , and $1.5 million during the nine months ended September 30, 2016. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2017 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
- FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value. NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued) Investment Securities : The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to the other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3 inputs). A third party is engaged to obtain the discounted cash flows and the resulting fair value. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations. Impaired Loans : The fair value of impaired loans with specific allocations of the allowance for loan and lease losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairments and adjusted accordingly. Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands): Fair Value Measurement September 30, 2017 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Residential mortgage-backed securities $ - $ 26,170 $ - Residential collateralized mortgage obligation - 2,950 - Commercial mortgage backed securities - 1,566 - Municipal bond - 1,126 - CRA mutual fund 2,110 - - December 31, 2016 Assets: Residential mortgage-backed securities $ - $ 29,027 $ - Residential collateralized mortgage obligation - 5,103 - Municipal bond - 1,136 - CRA mutual fund 2,063 - - There were no transfers between Level 1 and Level 2 during the three and nine month periods ending September 30, 2017 and 2016 . NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued) Assets and Liabilities Measured on a Non-Recurring Basis Assets and liabilities measured at fair value on a non-recurring basis are summarized below (dollars in thousands): Fair Value Measurement September 30, 2017 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Impaired loans: Commercial and industrial $ - $ - $ 3,294 Fair Value Measurement December 31, 2016 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Impaired loans: Commercial and industrial $ - $ - $ 3,294 There were no transfers between level 1 and level 2 during the three or nine month period s ended September 30, 2017 and 2016 . The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a non-recurring basis at September 30, 2017 and December 31, 2016 : Fair Value Valuation Technique Unobservable Input Range (Weighted Average) September 30, 2017 Impaired loans – Commercial and industrial $ 3,294 Market approach Adjustments for the difference in comparable sales 10.0 % December 31, 2016 Impaired loans – Commercial and industrial $ 3,294 Market approach Adjustments for the difference in comparable sales 10.0 % NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued) As of September 30, 2017 , impaired loans with allocated allowance for loan and lease losses, which are assets measured at fair value on a non-recurring basis, using the fair value of the collateral (Level 3 inputs), had a carrying amount of $3,660,000 with a valuation allowance of $366,000 . As of December 31, 2016 , impaired loans with allocated allowance for loan and lease losses, which are assets measured at fair value on a non-recurring basis, using the fair value of the collateral (Level 3 inputs), had a carrying amount of $3,660,000 with a valuation allowance of $366,000 , resulting in an increase of provision for loan and lease loss es of $42,000 for the year then ended. Carrying amount and estimated fair values of financial instruments at year end were as follows (dollars in thousands): September 30, 2017 Fair Value Measurement Using: Carrying Amount Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Financial assets: Cash and due from banks $ 267,099 $ 267,099 $ - $ - $ 267,099 Securities available for sale 33,922 2,110 31,812 - 33,922 Securities held to maturity 5,681 - 5,630 - 5,630 Loans, net 1,365,754 - - 1,381,158 1,381,158 Other investments 13,740 N/A N/A N/A N/A Accrued interest receivable 3,903 2 135 3,766 3,903 Financial liabilities: Deposits without stated maturities 1,405,458 1,405,458 - - 1,405,458 Deposits with stated maturities 83,185 - 83,278 - 83,278 Borrowed funds 43,750 - 43,794 - 43,794 Trust preferred securities 20,620 - - 20,005 20,005 Subordinated debt, net of issuance cost 24,468 - 25,000 - 25,000 Accrued interest payable 547 17 360 170 547 NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued) December 31, 2016 Fair Value Measurement Using: Carrying Amount Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Financial assets: Cash and due from banks $ 82,931 $ 82,931 $ - $ - $ 82,931 Securities available for sale 37,329 2,063 35,266 - 37,329 Securities held to maturity 6,500 - 6,419 - 6,419 Loans, net 1,042,731 - - 1,059,333 1,059,333 Other investments 12,588 N/A N/A N/A N/A Accrued interest receivable 2,735 - 157 2,578 2,735 Financial liabilities: Deposits without stated maturities 903,267 903,267 - - 903,267 Deposits with stated maturities 90,513 - 90,559 - 90,559 Borrowed funds 78,418 - 78,872 - 78,872 Trust preferred securities 20,620 - - 19,998 19,998 Accrued interest payable 227 19 62 146 227 The methods and assumptions used to estimate fair value are described as follows: Cash and Due from Banks: Carrying amounts of cash approximate fair value, since these instruments are either payable on demand or have short-term maturities and as such are classified as Level 1. Securities Available for Sale and Held to Maturity: If available, the estimated fair values are based on independent dealer quotations on nationally recognized securities exchanges and are classified as Level 1. For securities where quoted prices are not available, fair value is based on matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities resulting in a Level 2 classification. Other Investments: It is not practicable to determine the fair value of FHLB and FRB stock, and investments in Solomon Hess SBA Loan Fund, due to restrictions placed on transferability. Loans: Fair values of loans, excluding loans held for sale are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality establishing discount factors for these types of loans and resulting in a Level 3 classification. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. Deposits without stated maturities: The f air values disclosed for demand deposits (e.g. interest and non-interest checking, savings and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the recording date (i.e., their carrying amount) resulting in a Level 1 price. NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued) Deposits with stated maturities : The estimated fair values of certificates of deposit are based on discounted cash flow calculations that use a replacement cost of funds approach to establishing discount rates for certificate of deposit maturities resulting in a Level 2 classification. Borrow ed funds : Represents FHLB advances for which the estimated fair values are based on discounted cash flow calculations that use a replacement cost of funds approach to establishing discount rates for funding maturities resulting in a Level 2 classification for all other maturity terms. Trust Preferred Securities : The estimated fair value is based on estimates using market data for similarly risk weighted items and takes into consideration the features of the debentures which is an unobservable input resulting in a Level 3 classification. Subordinated Debt, net of debt issuance costs: The fair value of subordinated debt is estimated using discounted cash flow analyses based on then current borrowing rates for similar types of borrowing arrangements (deemed a Level 2 valuation), and is provided to the Company independently by a market maker in the underlying security. Accrued Interest Receivable and Payable: For these short-term instruments, the carrying amount is a reasonable estimate of the fair value resulting in a Level 1, 2 or 3 classification consistent with the underlying asset or liability the interest is associated with. Off-Balance-Sheet Liabilities: The fair value of off-balance-sheet commitments to extend credit is estimated using fees currently charged to enter into similar agreements. The fair value is immaterial as of September 30, 2017 and December 31, 2016 . Fair value estimates are made at specific points in time and are based on existing on-and off-balance sheet financial instruments. These estimates are subjective in nature and dependent on a number of significant assumptions associated with each financial instrument or group of financial instruments, including estimates of discount rates, risks associated with specific financial instruments, estimates of future cash flows, and relevant available market information. Changes in assumptions could significantly affect the estimates. In addition, fair value estimates do not reflect the value of anticipated future business, premiums or discounts that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, or the tax consequences of realizing gains or losses on the sale of financial instruments. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2017 | |
AOCI Attributable to Parent [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 7 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present changes in A ccumulated O ther C omprehensive I ncome (Loss) , net of tax, for the three and nine months ended September 30, 2017 and 2016 : For the three months ended September 30, Available for sale securities (In thousands) 2017 2016 Beginning balance $ (73) $ 427 Net change in other comprehensive income (loss) before reclassification, net of tax 26 (56) Amounts reclassified from accumulated other comprehensive income - - Net current period other comprehensive income (loss) 26 (56) Ending balance $ (47) $ 371 NOTE 7 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (continued) For the nine months ended September 30 , Available for sale securities (In thousands) 2017 2016 Beginning balance $ (165) $ 16 Net change in other comprehensive income before reclassification, net of tax 118 378 Amounts reclassified from accumulated other comprehensive loss - (23) Net current period other comprehensive income 118 355 Ending balance $ (47) $ 371 The following represents the reclassifications out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2017 , and 2016. There were no reclassifications out of accumulated other comprehensive income (loss) for the three months ended September 30, 2017. For the nine months ended September 30, (In thousands) 2017 2016 Affected Line item in the Consolidated Statements of Income Realized gain on sale of available for sale securities $ - $ 40 Net gains on sales of securities Income tax expense - (17) Income tax expense Total reclassifications, net of income tax $ - $ 23 |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 9 Months Ended |
Sep. 30, 2017 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | NOTE 8 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The Bank had outstanding the following off-balance-sheet financial instruments whose contract amounts represent credit risk as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 December 31, 2016 Fixed Variable Fixed Variable Rate Rate Rate Rate Undrawn lines of credit $ 47,333 $ 26,386 $ 60,984 $ 9,890 Undrawn letters of credit 22,716 - 9,808 - A commitment to extend credit is a legally binding agreement to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally expire within two years. At September 30, 2017 , the Bank’s fixed rate loan commitments are to make loans with interest rates ranging from 3.75% to 9.25% and maturities of one year or more. At December 31, 2016 , the Bank’s fixed rate loan commitments are to make loans with interest rates ranging from 3.75% to 8.75% . The amount of collateral obtained, if any, by the Bank upon extension of credit is based on management’s credit evaluation of the borrower. Collateral held varies but may include mortgages on commercial and residential real estate, security interests in business assets, equipment, deposit accounts with the Bank or other financial institutions and securities. The Bank has stand-by letters of credit in the amount of $22.7 million and $9.8 million included above as of September 30, 2017 and December 31, 2016 , respectively, for which the Bank has pledged interest-bearing accounts of $1.7 million and $4.0 million as of September 30, 2017 and December 31, 2016 , respectively. The stand-by letters of credit and the time deposits mature within one year. |
SUBORDINATED DEBT
SUBORDINATED DEBT | 9 Months Ended |
Sep. 30, 2017 | |
SUBORDINATED DEBT [Abstract] | |
SUBORDINATED DEBT | NOTE 9 – SUBORDINATED DEBT On March 8, 2017, Metropolitan Bank Holding Corp. (“MBHC”) closed the issuance of its $25 million subordinated notes at 100% issue price to accredited institutional investors. The notes mature on March 15, 2027 and bear an interest rate of 6.25% per annum. The interests are paid semi-annually on March 15 and September 15 of each year th rough March 15, 2022 and quarterly thereafter on March 15, June 15, September 15 and December 15 of each year. Interest rate from March 15, 2022 to the maturity date shall reset quarterly to an interest rate per annum equal to the then current three month LIBOR (not less than zero) plus 426 basis points, payable quarterly in arrears. MBHC may redeem the subordinated notes beginning with the interest payment date of March 15, 2022 and on any scheduled interest payment date thereafter. The subordinated notes may be redeemed in whole or in part, at a redemption price equal to 100% of the principal amount of the subordinated notes plus any accrued and unpaid interest. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10 – SUBSEQUENT EVENTS On November 8, 2017, the Company completed an initial public offering (“IPO”) of its common stock and sold 3,100,000 shares of common stock at the public offering price of $35.00 per share. The Company received aggregate net proceeds of approximately $99.9 million after deducting underwriting discount and other offering related expenses. On November 10, 2017, the Company sold 465,000 additional shares of common stock at the public offering price of $35.00 per share pursuant to the underwriter’s overallotment option. The net proceeds to the Company, after deducting the underwriting discount and estimated offering expenses with the overallotment option, were approximately $15.1 million. The aggregate net proceeds to Metropolitan Bank Holding Corp . from its IPO, including the overallotment shares, after deducting the underwriting discount and estimated offering expenses were approximately $115 million. |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 9 Months Ended |
Sep. 30, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Organization | Organization : Metropolitan Bank Holding Corp. (a New York C orporation) (the “Company”) is a bank holding company whose principal activity is the ownership and management of Metropolitan Commercial Bank (the “Bank”), its wholly-owned subsidiary. The Bank’s primary market is the New York metropolitan area. The Bank offers a traditional range of services to individuals, businesses and others needing banking services. Its primary lending products are commercial mortgages and commercial and industrial loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. The Bank’s primary deposit products are checking, savings, and term deposit accounts, and its deposit accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) under the maximum amounts allowed by law. The Bank commenced operations on June 22, 1999 . The Bank faces competition from numerous existing New York bank holding companies, commercial banks and savings banks which have been in business for many years and have established customer bases. Competition also comes from a variety of other non-bank businesses that offer financial services. Many of these competitors operate in the same geographic market in which the Bank operates, are well-known with long-standing relationships and businesses and individuals in the communities, and are substantially larger with greater resources than the Bank. The Company is subject to regulations of certain state and federal agencies and, accordingly, is periodically examined by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Company’s business is susceptible to being affected by state and federal legislation and regulations. A summary of the Company’s significant accounting policies consistently applied in the preparation of the accompanying financial statements follows. |
Basis of Presentation | Basis of Presentation : The accounting and reporting policies of the Company conform with U.S generally accepted accounting principles and predominant practices within the U.S. banking industry. The consolidated financial statements include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated . The Unaudited Consolidated Financial Statements, which include the accounts of the Company and the Bank, have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The Unaudited Consolidated Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. The accounting and reporting policies of the Company conform with U.S generally accepted accounting principles and predominant practices within the U.S. banking industry . |
Recently Issued Accounting Standards | Recently Issued Accounting Standards : Pursuant to the Jumpstart Our Business Startups Act (“JOBS Act”), Emerging Growth Company (“EGC”) is permitted to elect to adopt new accounting guidance using adoption dates of nonpublic entities. The Company elected delayed effective dates of recently issued accounting standards. Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606)” implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In August 2016, the (Financial Accounting Standards Board FASB) deferred the effective date of the ASU by one year which means ASU 2014-09 will be effective for the Company on January 1, 2019. Management is in the process of evaluating revenue streams to determine the impact the ASU could have on the Company’s operating results or financial condition . NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires companies that lease valuable assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. The amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, however, early adoption is permitted. Under ASU 2016-02, the Company will recognize a right-of-use asset and a lease obligation liability on the consolidated balance sheet, which will increase the Company’s assets and liabilities. The Company is evaluating other potential impact of ASU 2016-02 on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires the measurement of all expected credit losses for financial assets held at the reporting date be based on historical experience, current condition, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. This guidance also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For the Company, this guidance is effective for fiscal years and interim periods beginning after December 31, 2020. The Company is currently evaluating this guidance to determine the impact on its consolidated financial statements. The Company expects to recognize a one-time cumulative increase to the allowance for loan and lease losses as of the beginning of the reporting period in which the ASU takes effect, but, cannot yet determine the magnitude of the impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates the second step in the goodwill impairment test which requires an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for the Company beginning January 1, 2021, with early adoption permitted for goodwill impairment tests performed after January 1, 2017. Management expects ASU 2017-04 will not have a significant impact on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount as discounts continue to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The guidance includes a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Management expects ASU 2017-08 will not have a significant impact on its consolidated financial statements. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
INVESTMENT SECURITIES [Abstract] | |
Schedule of Available-for-Sale Securities | Gross Gross Amortized Unrealized Unrealized Fair September 30, 2017 Cost Gains Losses Value Available-for-Sale Securities: Residential mortgage-backed securities $ 26,145 $ 154 $ (129) $ 26,170 Residential collateralized mortgage obligations 3,022 - (72) 2,950 Commercial mortgage backed securities guaranteed by U.S. government sponsored agencies 1,591 - (25) 1,566 Municipal bond 1,105 21 - 1,126 CRA Mutual Fund 2,148 - (38) 2,110 Total securities available-for-sale $ 34,011 $ 175 $ (264) $ 33,922 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value Available-for-Sale Securities: Residential mortgage-backed securities $ 29,152 $ 165 $ (290) $ 29,027 Residential collateralized mortgage obligations 5,233 - (130) 5,103 Municipal bond 1,122 14 - 1,136 CRA Mutual Fund 2,115 - (52) 2,063 Total securities available-for-sale $ 37,622 $ 179 $ (472) $ 37,329 |
Schedule of Held-to-Maturity Securities | Held to Maturity Securities: Residential mortgage-backed securities $ 5,656 $ - $ (51) $ 5,605 Foreign government securities 25 - - 25 Total securities held-to-maturity $ 5,681 $ - $ (51) $ 5,630 Gross Gross December 31, 2016 Amortized Unrealized Unrealized Fair Held to Maturity Securities: Cost Gains Losses Value Residential mortgage-backed securities $ 6,475 $ - $ (81) $ 6,394 Foreign government securities 25 - - 25 Total securities held-to-maturity $ 6,500 $ - $ (81) $ 6,419 |
Schedule of Realized Gain (Loss) on Sales and Calls of Securities | The proceeds from sales and calls of securities and the associated gains and losses are listed below for the three and nine months ended September 30, 2017 and 2016 (dollars in thousands): For the three months ended September 30, 2017 2016 Proceeds $ - $ - Gross gains - - Gross losses - - For the nine months ended September 30, 2017 2016 Proceeds $ - $ 2,771 Gross gains - 40 Gross losses - - |
Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity | Securities not due at a single maturity date, primarily mutual funds and mortgage-backed securities are shown separately (dollars in thousands): Held to Maturity Available for Sale Amortized Fair Amortized Fair September 30, 2017 Cost Value Cost Value Within one year $ - $ - $ - $ - One to five years 25 25 - - Five to ten years - - - - Beyond ten years - - 1,105 1,126 25 25 1,105 1,126 Residential mortgage-backed securities 5,656 5,605 26,145 26,170 Residential collateralized mortgage obligations - - 3,022 2,950 Commercial mortgage backed securities guaranteed by U.S. government sponsored agencies - - 1,591 1,566 CRA mutual fund - - 2,148 2,110 $ 5,681 $ 5,630 $ 34,011 $ 33,922 Held to Maturity Available for Sale Amortized Fair Amortized Fair December 31, 2016 Cost Value Cost Value Within one year $ - $ - $ - $ - One to five years 25 25 - - Five to ten years - - - - Beyond ten years - - 1,122 1,136 25 25 1,122 1,136 Residential mortgage-backed securities 6,475 6,394 29,152 29,027 Residential collateralized mortgage obligations - - 5,233 5,103 CRA mutual fund - - 2,115 2,063 $ 6,500 $ 6,419 $ 37,622 $ 37,329 |
Schedule of Securities with Unrealized Losses | Securities with unrealized losses at September 30, 2017 and December 31, 2016 , aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands): Less than 12 Months 12 months or more Total September 30, 2017 Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Residential mortgage-backed securities $ 13,943 $ (129) $ - $ - $ 13,943 $ (129) Residential collateralized mortgage obligations 1,103 (23) 1,847 (49) 2,950 (72) Commercial mortgage backed securities - - 1,566 (25) 1,566 (25) CRA mutual fund - - 2,110 (38) 2,110 (38) Total available for sale $ 15,046 $ (152) $ 5,523 $ (112) $ 20,569 $ (264) Residential mortgage-backed securities 5,605 (51) - - 5,605 (51) Total held-to-maturity $ 5,605 $ (51) $ - $ - $ 5,605 $ (51) December 31, 2016 Residential mortgage-backed securities $ 16,733 $ (290) $ - $ - $ 16,733 $ (290) Residential collateralized mortgage obligations 2,887 (60) 2,216 (70) 5,103 (130) CRA mutual fund - - 2,063 (52) 2,063 (52) Total available for sale $ 19,620 $ (350) $ 4,279 $ (122) $ 23,899 $ (472) Residential mortgage-backed securities $ 6,394 $ (81) $ - $ - $ 6,394 $ (81) Total held-to-maturity $ 6,394 $ (81) $ - $ - $ 6,394 $ (81) |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
LOANS [Abstract] | |
Schedule of Loans Receivable | Loans, net consist of the following as of September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 Real estate Commercial $ 736,487 $ 547,711 Construction 37,723 29,447 Multifamily 187,753 117,373 One-to-four family 25,777 26,480 987,740 721,011 Commercial and industrial 346,738 315,870 Consumer 47,171 18,825 Total loans 1,381,649 1,055,706 Deferred fees (820) (1,160) Allowance for loan and lease losses (15,075) (11,815) Balance at the end of the period $ 1,365,754 $ 1,042,731 |
Activity in the Allowance for Loan Losses by Segment | The following table presents the activity in the allowance for loan and lease losses by segment for the three and nine months ending September 30, 2017 and 2016 (dollars in thousands): For the three months ended September 30, 2017 Commercial Real Estate Commercial & Industrial Construction Multifamily One-to-four Family Consumer Total Allowance for loan and lease losses: Beginning balance $ 6,487 $ 5,560 $ 557 $ 958 $ 85 $ 262 $ 13,909 Provision (credit) for loan and lease losses 637 443 (33) 34 2 117 1,200 Charge-offs - - - - - (34) (34) Recoveries - - - - - - - Total ending allowance balance $ 7,124 $ 6,003 $ 524 $ 992 $ 87 $ 345 $ 15,075 For the three months ended September 30, 2016 Commercial Real Estate Commercial & Industrial Construction Multifamily One-to-four Family Consumer Total Allowance for loan and lease losses: Beginning balance $ 4,835 $ 5,562 $ 458 $ 404 $ 385 $ 60 $ 11,704 Provision (credit) for loan and lease losses 440 (352) 33 35 5 29 190 Charge-offs - (123) - - (274) - (397) Recoveries - - - - - - - Total ending allowance balance $ 5,275 $ 5,087 $ 491 $ 439 $ 116 $ 89 $ 11,497 NOTE 3 – LOANS (Continued) For the nine months ended September 30, 2017 Commercial Real Estate Commercial & Industrial Construction Multifamily One-to-four Family Consumer Total Allowance for loan and lease losses: Beginning balance $ 5,206 $ 5,364 $ 409 $ 620 $ 109 $ 107 $ 11,815 Provision (credit) for loan and lease losses 1,918 859 115 372 (22) 318 3,560 Charge-offs - (220) - - - (80) (300) Recoveries - - - - - - - Total ending allowance balance $ 7,124 $ 6,003 $ 524 $ 992 $ 87 $ 345 $ 15,075 For the nine months ended September 30, 2016 Commercial Real Estate Commercial & Industrial Construction Multifamily One-to-four Family Consumer Total Allowance for loan and lease losses: Beginning balance $ 3,650 $ 4,254 $ 589 $ 986 $ 444 $ 19 $ 9,942 Provision (credit) for loan and lease losses 1,625 1,007 (98) (547) (57) 70 2,000 Charge-offs - (174) - - (274) - (448) Recoveries - - - - 3 - 3 Total ending allowance balance $ 5,275 $ 5,087 $ 491 $ 439 $ 116 $ 89 $ 11,497 |
Allowance for Loan Losses and the Recorded Investment in Loans | The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans by portfolio segment based on impairment method as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 Commercial Real Estate Commercial & Industrial Construction Multifamily One-to-four Family Consumer Total Allowance for and lease loan losses: Individually evaluated for impairment $ - $ 366 $ - $ - $ - $ 63 $ 429 Collectively evaluated for impairment 7,124 5,637 524 992 87 282 14,646 Total ending allowance balance $ 7,124 $ 6,003 $ 524 $ 992 $ 87 $ 345 $ 15,075 Loans: Individually evaluated for impairment $ 6,299 $ 4,775 $ - $ - $ 3,594 $ 125 $ 14,793 Collectively evaluated for impairment 730,188 341,963 37,723 187,753 22,183 47,046 1,366,856 Total ending loan balance $ 736,487 $ 346,738 $ 37,723 $ 187,753 $ 25,777 $ 47,171 $ 1,381,649 NOTE 3 - LOANS (Continued) December 31, 2016 Commercial Real Estate Commercial & Industrial Construction Multifamily One-to-four Family Consumer Total Allowance for loan and lease losses: Individually evaluated for impairment $ - $ 366 $ - $ - $ 10 $ - $ 376 Collectively evaluated for impairment 5,206 4,998 409 620 99 107 11,439 Total ending allowance balance $ 5,206 $ 5,364 $ 409 $ 620 $ 109 $ 107 $ 11,815 Loans: Individually evaluated for impairment $ 5,504 $ 4,915 $ - $ - $ 1,130 $ - $ 11,549 Collectively evaluated for impairment 542,207 310,955 29,447 117,373 25,350 18,825 1,044,157 Total ending loan balance $ 547,711 $ 315,870 $ 29,447 $ 117,373 $ 26,480 $ 18,825 $ 1,055,706 |
Loans Individually Evaluated for Impairment | The following table presents loans individually evaluated for impairment recognized as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 Unpaid Principal Balance Recorded Investment Allowance for Loan and Lease Losses Allocated With an allowance recorded: Commercial & industrial $ 8,783 $ 3,660 $ 366 Consumer 125 125 63 Total $ 8,908 $ 3,785 $ 429 Without an allowance recorded: Commercial real estate $ 6,768 $ 6,299 $ - Commercial & industrial 1,115 1,115 - One-to-four family 3,871 3,594 - Total $ 11,754 $ 11,008 $ - NOTE 3 - LOANS (Continued) December 31, 2016 Unpaid Principal Balance Recorded Investment Allowance for Loan and Lease Losses Allocated With an allowance recorded: Commercial & industrial $ 8,783 $ 3,660 $ 366 One-to-four family 694 565 10 Total $ 9,477 $ 4,225 $ 376 Without an allowance recorded: Commercial real estate $ 5,974 $ 5,504 $ - Commercial & industrial 1,255 1,255 - One-to-four family 713 565 - Total $ 7,942 $ 7,324 $ - The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans as of and for the three month periods ended September 30, 2017 and 2016 (in thousands): For the three months ended September 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With an allowance recorded: Commercial & industrial $ 3,660 $ - $ - $ - One-to-four family - - 564 7 Consumer 125 - - - Total $ 3,785 $ - $ 564 $ 7 Without an allowance recorded: Commercial real estate $ 6,307 $ 50 $ 11,463 $ 121 Commercial & industrial 1,130 12 1,300 13 One-to-four family 3,604 37 1,087 6 Total $ 11,041 $ 99 $ 13,850 $ 140 NOTE 3 - LOANS (Continued) The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans as of and for the nine month periods ended September 30, 2017 and 2016 (in thousands): For the nine months ended September 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With an allowance recorded: Commercial & industrial $ 3,660 $ - $ - $ - One-to-four family - - 564 16 Consumer 127 4 - - Total $ 3,787 $ 4 $ 564 $ 16 Without an allowance recorded: Commercial real estate $ 6,380 $ 227 $ 11,587 $ 382 Commercial & industrial 1,185 36 1,355 41 One-to-four family 3,616 96 1,087 17 Total $ 11,181 $ 359 $ 14,029 $ 440 |
Schedule of Recorded Investment in Non-Accrual Loans | The following tables present the recorded investment in non-accrual loans and loans past due over 90 days still on accrual by class of loans as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial real estate $ 841 $ - Commercial & industrial 3,660 - One-to-four family 2,466 - Consumer 125 - Total $ 7,092 $ - |
Aging of the Recorded Investment in Past Due Loans | NOTE 3 - LOANS (Continued) The following tables present the aging of the recorded investment in past due loans by class of loans as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 30-59 Days 60-89 Days Greater than 90 days Total Past Due Loans not Past Due Total Commercial real estate $ - $ - $ 841 $ 841 $ 735,646 $ 736,487 Commercial & industrial 88 - 3,660 3,748 342,990 346,738 Construction - - - - 37,723 37,723 Multifamily - - - - 187,753 187,753 One-to-four family - - - - 25,777 25,777 Consumer 109 - 125 234 46,937 47,171 Total $ 197 $ - $ 4,626 $ 4,823 $ 1,376,826 $ 1,381,649 December 31, 2016 30-59 Days 60-89 Days Greater than 90 days Total Past Due Loans not Past Due Total Commercial real estate $ - $ 958 $ - $ 958 $ 546,753 $ 547,711 Commercial & industrial 14 3,922 - 3,936 311,934 315,870 Construction - - - - 29,447 29,447 Multifamily - - - - 117,373 117,373 One-to-four family - - - - 26,480 26,480 Consumer - 34 - 34 18,791 18,825 Total $ 14 $ 4,914 $ - $ 4,928 $ 1,050,778 $ 1,055,706 |
Risk Category of Loans by Class of loans | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows (dollars in thousands): September 30, 2017 Pass Special Mention Substandard Doubtful Total Commercial real estate $ 727,068 $ 7,399 $ 2,020 $ - $ 736,487 Commercial & industrial 334,663 8,415 3,660 - 346,738 Construction 37,723 - - - 37,723 Multifamily 187,753 - - - 187,753 Total $ 1,287,207 $ 15,814 $ 5,680 $ - $ 1,308,701 December 31, 2016 Pass Special Mention Substandard Doubtful Total Commercial real estate $ 542,206 $ 4,293 $ 1,212 $ - $ 547,711 Commercial & industrial 309,295 2,915 3,660 - 315,870 Construction 29,447 - - - 29,447 Multifamily 117,373 - - - 117,373 Total $ 998,321 $ 7,208 $ 4,872 $ - $ 1,010,401 |
Schedule of Recorded Investment in Family and Consumer Notes, Loans and Financing Receivables by Class [Table Text Block] | For one-to-four family loans and consumer loans, the Bank evaluates credit quality based on the aging status of the loan, which was previously presented, and by performance status. Non-performing loans are loans past due over 90 days or more still accruing interests and loans on non-accrual status. The following table presents the recorded investment in one-to-four family and consumer loans based on performance status as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 Performing Non-Performing Total One-to-four family $ 23,311 $ 2,466 $ 25,777 Consumer 47,046 125 47,171 Total $ 70,357 $ 2,591 $ 72,948 December 31, 2016 Performing Non-Performing Total One-to-four family $ 26,480 $ - $ 26,480 Consumer 18,825 - 18,825 Total $ 45,305 $ - $ 45,305 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
PER COMMON SHARE DATA | |
Computation of Basic and Diluted Earnings per Share | The computation of basic and diluted earnings per share is shown below (in thousands, except per share data): Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Net income $ 3,845 $ 1,450 $ 9,044 $ 4,964 Less: Dividends paid to preferred stockholders - (3,420) - (3,420) Less: Earnings allocated to participating securities (74) (39) (174) (35) Net income (loss) available to common stockholders 3,771 (2,009) 8,870 1,509 Common and common equivalent shares: Weighted average common shares outstanding including participating shares 4,633 3,962 4,632 3,420 Less: Weighted average participating securities (89) (78) (89) (78) Weighted average common shares outstanding 4,544 3,884 4,543 3,342 Incremental shares from assumed conversion of options 33 - 33 33 Weighted average common and common equivalent shares 4,577 3,884 4,576 3,375 Basic earnings (loss) per share $ 0.83 $ (0.52) $ 1.95 $ 0.45 Diluted earnings (loss) per share 0.82 (0.52) 1.94 0.45 |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
STOCK COMPENSATION PLAN [Abstract] | |
Summary of the Status of the Stock Option Plan | A summary of the status of the Company’s stock option plan and the change during the nine months ended September 30, 2017 is presented below: For the nine months ended September 30, 2017 Number of Options Weighted Average Exercise Price Outstanding, beginning of period 276,500 $ 19.97 Granted - - Exercised - - Cancelled/forfeited - - Outstanding, end of year 276,500 $ 19.97 Options vested and exercisable at period-end 276,500 $ 19.97 Weighted average fair value of options granted during the year $ - Weighted average remaining contractual life (years) 5.74 |
Summary of Stock Options Outstanding | The following table summarizes information about stock options outstanding at September 30, 2017 : Options Outstanding Weighted Range of Average Weighted Average Number Remaining Average Exercise Outstanding at Contractual Exercise Prices September 30, 2017 Life Price $10 - 20 231,000 6.64 $ 18.00 $21 - 30 45,500 1.15 $ 30.00 $10 - 30 276,500 5.74 $ 19.97 |
Summary of Non-Vested Restricted Stock Awards | The following table summarizes the changes in the Company’s non-vested restricted stock awards for the nine months ended September 30, 2017 : Weighted Number of Average Grant Shares Date Fair Value Outstanding, January 1, 2017 64,638 $ 20.42 Granted 31,616 21.00 Forfeited (3,167) 18.00 Vested (4,000) 21.00 Outstanding at September 30, 2017 89,087 $ 20.69 |
FAIR VALUE OF FINANCIAL INSTR23
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands): Fair Value Measurement September 30, 2017 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Residential mortgage-backed securities $ - $ 26,170 $ - Residential collateralized mortgage obligation - 2,950 - Commercial mortgage backed securities - 1,566 - Municipal bond - 1,126 - CRA mutual fund 2,110 - - December 31, 2016 Assets: Residential mortgage-backed securities $ - $ 29,027 $ - Residential collateralized mortgage obligation - 5,103 - Municipal bond - 1,136 - CRA mutual fund 2,063 - - |
Assets and Liabilities Measured on a Non-Recurring Basis | Assets and liabilities measured at fair value on a non-recurring basis are summarized below (dollars in thousands): Fair Value Measurement September 30, 2017 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Impaired loans: Commercial and industrial $ - $ - $ 3,294 Fair Value Measurement December 31, 2016 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Impaired loans: Commercial and industrial $ - $ - $ 3,294 |
Quantitative Information About Level 3 Fair Value Measurements for Assets | The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a non-recurring basis at September 30, 2017 and December 31, 2016 : Fair Value Valuation Technique Unobservable Input Range (Weighted Average) September 30, 2017 Impaired loans – Commercial and industrial $ 3,294 Market approach Adjustments for the difference in comparable sales 10.0 % December 31, 2016 Impaired loans – Commercial and industrial $ 3,294 Market approach Adjustments for the difference in comparable sales 10.0 % |
Carrying Amount and Estimated Fair Values of Financial Instruments | Carrying amount and estimated fair values of financial instruments at year end were as follows (dollars in thousands): September 30, 2017 Fair Value Measurement Using: Carrying Amount Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Financial assets: Cash and due from banks $ 267,099 $ 267,099 $ - $ - $ 267,099 Securities available for sale 33,922 2,110 31,812 - 33,922 Securities held to maturity 5,681 - 5,630 - 5,630 Loans, net 1,365,754 - - 1,381,158 1,381,158 Other investments 13,740 N/A N/A N/A N/A Accrued interest receivable 3,903 2 135 3,766 3,903 Financial liabilities: Deposits without stated maturities 1,405,458 1,405,458 - - 1,405,458 Deposits with stated maturities 83,185 - 83,278 - 83,278 Borrowed funds 43,750 - 43,794 - 43,794 Trust preferred securities 20,620 - - 20,005 20,005 Subordinated debt, net of issuance cost 24,468 - 25,000 - 25,000 Accrued interest payable 547 17 360 170 547 NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued) December 31, 2016 Fair Value Measurement Using: Carrying Amount Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Financial assets: Cash and due from banks $ 82,931 $ 82,931 $ - $ - $ 82,931 Securities available for sale 37,329 2,063 35,266 - 37,329 Securities held to maturity 6,500 - 6,419 - 6,419 Loans, net 1,042,731 - - 1,059,333 1,059,333 Other investments 12,588 N/A N/A N/A N/A Accrued interest receivable 2,735 - 157 2,578 2,735 Financial liabilities: Deposits without stated maturities 903,267 903,267 - - 903,267 Deposits with stated maturities 90,513 - 90,559 - 90,559 Borrowed funds 78,418 - 78,872 - 78,872 Trust preferred securities 20,620 - - 19,998 19,998 Accrued interest payable 227 19 62 146 227 |
ACCUMULATED OTHER COMPREHENSI24
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
AOCI Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables present changes in A ccumulated O ther C omprehensive I ncome (Loss) , net of tax, for the three and nine months ended September 30, 2017 and 2016 : For the three months ended September 30, Available for sale securities (In thousands) 2017 2016 Beginning balance $ (73) $ 427 Net change in other comprehensive income (loss) before reclassification, net of tax 26 (56) Amounts reclassified from accumulated other comprehensive income - - Net current period other comprehensive income (loss) 26 (56) Ending balance $ (47) $ 371 NOTE 7 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (continued) For the nine months ended September 30 , Available for sale securities (In thousands) 2017 2016 Beginning balance $ (165) $ 16 Net change in other comprehensive income before reclassification, net of tax 118 378 Amounts reclassified from accumulated other comprehensive loss - (23) Net current period other comprehensive income 118 355 Ending balance $ (47) $ 371 |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The following represents the reclassifications out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2017 , and 2016. There were no reclassifications out of accumulated other comprehensive income (loss) for the three months ended September 30, 2017. For the nine months ended September 30, (In thousands) 2017 2016 Affected Line item in the Consolidated Statements of Income Realized gain on sale of available for sale securities $ - $ 40 Net gains on sales of securities Income tax expense - (17) Income tax expense Total reclassifications, net of income tax $ - $ 23 |
FINANCIAL INSTRUMENTS WITH OF25
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK [Abstract] | |
Schedule of off-balance-sheet financial instruments | The Bank had outstanding the following off-balance-sheet financial instruments whose contract amounts represent credit risk as of September 30, 2017 and December 31, 2016 (dollars in thousands): September 30, 2017 December 31, 2016 Fixed Variable Fixed Variable Rate Rate Rate Rate Undrawn lines of credit $ 47,333 $ 26,386 $ 60,984 $ 9,890 Undrawn letters of credit 22,716 - 9,808 - |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Operations commenced date | Jun. 22, 1999 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
INVESTMENT SECURITIES [Abstract] | |
Tax provision on net realized gains on securities and calls | $ 17,000 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of Available-for-Sale Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 34,011 | $ 37,622 |
Gross Unrealized Gains | 175 | 179 |
Gross Unrealized Losses | (264) | (472) |
Fair Value | 33,922 | 37,329 |
Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 26,145 | 29,152 |
Gross Unrealized Gains | 154 | 165 |
Gross Unrealized Losses | (129) | (290) |
Fair Value | 26,170 | 29,027 |
Residential Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,022 | 5,233 |
Gross Unrealized Losses | (72) | (130) |
Fair Value | 2,950 | 5,103 |
Commercial Mortgage-Backed Securities, Guaranteed by US Government Sponsored Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,591 | |
Gross Unrealized Losses | (25) | |
Fair Value | 1,566 | |
Municipal Bond [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,105 | 1,122 |
Gross Unrealized Gains | 21 | 14 |
Fair Value | 1,126 | 1,136 |
CRA Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,148 | 2,115 |
Gross Unrealized Losses | (38) | (52) |
Fair Value | $ 2,110 | $ 2,063 |
INVESTMENT SECURITIES (Schedu29
INVESTMENT SECURITIES (Schedule of Held-to-Maturity Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,681 | $ 6,500 |
Gross Unrealized Losses | (51) | (81) |
Fair Value | 5,630 | 6,419 |
Residential Mortgage Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 5,656 | 6,475 |
Gross Unrealized Losses | (51) | (81) |
Fair Value | 5,605 | 6,394 |
Foreign Government Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 25 | 25 |
Fair Value | $ 25 | $ 25 |
INVESTMENT SECURITIES (Schedu30
INVESTMENT SECURITIES (Schedule of Realized Gain (Loss) on Sales and Calls of Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INVESTMENT SECURITIES [Abstract] | ||||
Proceeds | $ 2,771 | |||
Gross gains | $ 40 | |||
Gross losses |
INVESTMENT SECURITIES (Schedu31
INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Available-for-sale Securities [Abstract] | ||
Beyond ten years, Amortized Cost | $ 1,105 | $ 1,122 |
With single maturity date, Amortized Cost, total | 1,105 | 1,122 |
Amortized Cost, total | 34,011 | 37,622 |
Beyond ten years, Fair Value | 1,126 | 1,136 |
With Single maturity date, Fair Value, total | 1,126 | 1,136 |
Fair Value, total | 33,922 | 37,329 |
Held-to-maturity Securities [Abstract] | ||
One to five years, Amortized Cost | 25 | 25 |
With single maturity date, Amortized Cost, total | 25 | 25 |
Amortized Cost | 5,681 | 6,500 |
One to Five Years, Fair Value | 25 | 25 |
With single maturity date, Fair Value, total | 25 | 25 |
Fair Value, Total | 5,630 | 6,419 |
Residential Mortgage Backed Securities [Member] | ||
Available-for-sale Securities [Abstract] | ||
Without single maturity date, Amortized Cost | 26,145 | 29,152 |
Without single maturity date, Fair Value | 26,170 | 29,027 |
Held-to-maturity Securities [Abstract] | ||
Without single maturity date, Amortized Cost | 5,656 | 6,475 |
Amortized Cost | 5,656 | 6,475 |
Without single maturity date, Fair Value | 5,605 | 6,394 |
Fair Value, Total | 5,605 | 6,394 |
Residential Collateralized Mortgage Obligations [Member] | ||
Available-for-sale Securities [Abstract] | ||
Without single maturity date, Amortized Cost | 3,022 | 5,233 |
Without single maturity date, Fair Value | 2,950 | 5,103 |
Commercial Mortgage-Backed Securities, Guaranteed by US Government Sponsored Agencies [Member] | ||
Available-for-sale Securities [Abstract] | ||
Without single maturity date, Amortized Cost | 1,591 | |
Without single maturity date, Fair Value | 1,566 | |
CRA Mutual Fund [Member] | ||
Available-for-sale Securities [Abstract] | ||
Without single maturity date, Amortized Cost | 2,148 | 2,115 |
Without single maturity date, Fair Value | $ 2,110 | $ 2,063 |
INVESTMENT SECURITIES (Schedu32
INVESTMENT SECURITIES (Schedule of Securities with Unrealized Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Available-for-sale Securities [Abstract] | ||
Less than 12 Months, Estimated Fair Value | $ 15,046 | $ 19,620 |
12 months or more, Estimated Fair Value | 5,523 | 4,279 |
Total, Estimated Fair Value | 20,569 | 23,899 |
Less than 12 Months, Unrealized Losses | (152) | (350) |
12 months or more, Unrealized Losses | (112) | (122) |
Total, Unrealized Losses | (264) | (472) |
Held-to-maturity Securities [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 5,605 | 6,394 |
Total, Estimated Fair Value | 5,605 | 6,394 |
Less than 12 Months, Unrealized Losses | (51) | (81) |
Total, Unrealized Losses | (51) | (81) |
Residential Mortgage Backed Securities [Member] | ||
Available-for-sale Securities [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 13,943 | 16,733 |
Total, Estimated Fair Value | 13,943 | 16,733 |
Less than 12 Months, Unrealized Losses | (129) | (290) |
Total, Unrealized Losses | (129) | (290) |
Held-to-maturity Securities [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 5,605 | 6,394 |
Total, Estimated Fair Value | 5,605 | 6,394 |
Less than 12 Months, Unrealized Losses | (51) | (81) |
Total, Unrealized Losses | (51) | (81) |
Residential Collateralized Mortgage Obligations [Member] | ||
Available-for-sale Securities [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 1,103 | 2,887 |
12 months or more, Estimated Fair Value | 1,847 | 2,216 |
Total, Estimated Fair Value | 2,950 | 5,103 |
Less than 12 Months, Unrealized Losses | (23) | (60) |
12 months or more, Unrealized Losses | (49) | (70) |
Total, Unrealized Losses | (72) | (130) |
Commercial Mortgage-Backed Securities, Guaranteed by US Government Sponsored Agencies [Member] | ||
Available-for-sale Securities [Abstract] | ||
12 months or more, Estimated Fair Value | 1,566 | |
Total, Estimated Fair Value | 1,566 | |
12 months or more, Unrealized Losses | (25) | |
Total, Unrealized Losses | (25) | |
CRA Mutual Fund [Member] | ||
Available-for-sale Securities [Abstract] | ||
12 months or more, Estimated Fair Value | 2,110 | 2,063 |
Total, Estimated Fair Value | 2,110 | 2,063 |
12 months or more, Unrealized Losses | (38) | (52) |
Total, Unrealized Losses | $ (38) | $ (52) |
LOANS (Narrative) (Details)
LOANS (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
LOANS [Abstract] | ||||
Interest on non-accrual loans not recognized | $ 62,000 | $ 14,000 | $ 173,000 | $ 61,000 |
LOANS (Activity in the Allowanc
LOANS (Activity in the Allowance for Loan Losses by Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans | $ 1,381,649 | $ 1,055,706 | ||||
Deferred loan fees and unamortized costs, net | (820) | (1,160) | ||||
Allowance for loan and lease losses | (15,075) | $ (13,909) | (11,815) | $ (11,497) | $ (11,704) | $ (9,942) |
Net loans | 1,365,754 | 1,042,731 | ||||
Real Estate Loan [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans | 987,740 | 721,011 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans | 736,487 | 547,711 | ||||
Allowance for loan and lease losses | (7,124) | (6,487) | (5,206) | (5,275) | (4,835) | (3,650) |
Commercial Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans | 346,738 | 315,870 | ||||
Allowance for loan and lease losses | (6,003) | (5,560) | (5,364) | (5,087) | (5,562) | (4,254) |
Construction Loans [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans | 37,723 | 29,447 | ||||
Allowance for loan and lease losses | (524) | (557) | (409) | (491) | (458) | (589) |
Residential, Multifamily Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans | 187,753 | 117,373 | ||||
Allowance for loan and lease losses | (992) | (958) | (620) | (439) | (404) | (986) |
Residential, One to Four Family Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans | 25,777 | 26,480 | ||||
Allowance for loan and lease losses | (87) | (85) | (109) | (116) | (385) | (444) |
Consumer Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans | 47,171 | 18,825 | ||||
Allowance for loan and lease losses | $ (345) | $ (262) | $ (107) | $ (89) | $ (60) | $ (19) |
LOANS (Schedule of Allowance fo
LOANS (Schedule of Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan losses, Beginning Balance | $ 13,909 | $ 11,704 | $ 11,815 | $ 9,942 |
Provision (credit) for loan and lease losses | 1,200 | 190 | 3,560 | 2,000 |
Charge-off | (34) | (397) | (300) | (448) |
Recoveries | 3 | |||
Allowance for loan losses, Ending Balance | 15,075 | 11,497 | 15,075 | 11,497 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan losses, Beginning Balance | 6,487 | 4,835 | 5,206 | 3,650 |
Provision (credit) for loan and lease losses | 637 | 440 | 1,918 | 1,625 |
Allowance for loan losses, Ending Balance | 7,124 | 5,275 | 7,124 | 5,275 |
Commercial Portfolio Segment [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan losses, Beginning Balance | 5,560 | 5,562 | 5,364 | 4,254 |
Provision (credit) for loan and lease losses | 443 | (352) | 859 | 1,007 |
Charge-off | (123) | (220) | (174) | |
Allowance for loan losses, Ending Balance | 6,003 | 5,087 | 6,003 | 5,087 |
Construction Loans [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan losses, Beginning Balance | 557 | 458 | 409 | 589 |
Provision (credit) for loan and lease losses | (33) | 33 | 115 | (98) |
Allowance for loan losses, Ending Balance | 524 | 491 | 524 | 491 |
Residential, Multifamily Portfolio Segment [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan losses, Beginning Balance | 958 | 404 | 620 | 986 |
Provision (credit) for loan and lease losses | 34 | 35 | 372 | (547) |
Allowance for loan losses, Ending Balance | 992 | 439 | 992 | 439 |
Residential, One to Four Family Portfolio Segment [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan losses, Beginning Balance | 85 | 385 | 109 | 444 |
Provision (credit) for loan and lease losses | 2 | 5 | (22) | (57) |
Charge-off | (274) | (274) | ||
Recoveries | 3 | |||
Allowance for loan losses, Ending Balance | 87 | 116 | 87 | 116 |
Consumer Portfolio Segment [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan losses, Beginning Balance | 262 | 60 | 107 | 19 |
Provision (credit) for loan and lease losses | 117 | 29 | 318 | 70 |
Charge-off | (34) | (80) | ||
Allowance for loan losses, Ending Balance | $ 345 | $ 89 | $ 345 | $ 89 |
LOANS (Schedule of Loans by Imp
LOANS (Schedule of Loans by Impairment Method) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Allowance: Individually evaluated for impairment | $ 429 | $ 376 | ||||
Allowance: Collectively evaluated for impairment | 14,646 | 11,439 | ||||
Loans and Leases Receivable, Allowance, Total | 15,075 | $ 13,909 | 11,815 | $ 11,497 | $ 11,704 | $ 9,942 |
Loans: Individually evaluated for impairment | 14,793 | 11,549 | ||||
Loans: Collectively evaluated for impairment | 1,366,856 | 1,044,157 | ||||
Loans and Leases Receivable, Gross, Total | 1,381,649 | 1,055,706 | ||||
Real Estate Loan [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans and Leases Receivable, Gross, Total | 987,740 | 721,011 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Allowance: Collectively evaluated for impairment | 7,124 | 5,206 | ||||
Loans and Leases Receivable, Allowance, Total | 7,124 | 6,487 | 5,206 | 5,275 | 4,835 | 3,650 |
Loans: Individually evaluated for impairment | 6,299 | 5,504 | ||||
Loans: Collectively evaluated for impairment | 730,188 | 542,207 | ||||
Loans and Leases Receivable, Gross, Total | 736,487 | 547,711 | ||||
Commercial Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Allowance: Individually evaluated for impairment | 366 | 366 | ||||
Allowance: Collectively evaluated for impairment | 5,637 | 4,998 | ||||
Loans and Leases Receivable, Allowance, Total | 6,003 | 5,560 | 5,364 | 5,087 | 5,562 | 4,254 |
Loans: Individually evaluated for impairment | 4,775 | 4,915 | ||||
Loans: Collectively evaluated for impairment | 341,963 | 310,955 | ||||
Loans and Leases Receivable, Gross, Total | 346,738 | 315,870 | ||||
Construction Loans [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Allowance: Collectively evaluated for impairment | 524 | 409 | ||||
Loans and Leases Receivable, Allowance, Total | 524 | 557 | 409 | 491 | 458 | 589 |
Loans: Collectively evaluated for impairment | 37,723 | 29,447 | ||||
Loans and Leases Receivable, Gross, Total | 37,723 | 29,447 | ||||
Residential, Multifamily Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Allowance: Collectively evaluated for impairment | 992 | 620 | ||||
Loans and Leases Receivable, Allowance, Total | 992 | 958 | 620 | 439 | 404 | 986 |
Loans: Collectively evaluated for impairment | 187,753 | 117,373 | ||||
Loans and Leases Receivable, Gross, Total | 187,753 | 117,373 | ||||
Residential, One to Four Family Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Allowance: Individually evaluated for impairment | 10 | |||||
Allowance: Collectively evaluated for impairment | 87 | 99 | ||||
Loans and Leases Receivable, Allowance, Total | 87 | 85 | 109 | 116 | 385 | 444 |
Loans: Individually evaluated for impairment | 3,594 | 1,130 | ||||
Loans: Collectively evaluated for impairment | 22,183 | 25,350 | ||||
Loans and Leases Receivable, Gross, Total | 25,777 | 26,480 | ||||
Consumer Portfolio Segment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Allowance: Individually evaluated for impairment | 63 | |||||
Allowance: Collectively evaluated for impairment | 282 | 107 | ||||
Loans and Leases Receivable, Allowance, Total | 345 | $ 262 | 107 | $ 89 | $ 60 | $ 19 |
Loans: Individually evaluated for impairment | 125 | |||||
Loans: Collectively evaluated for impairment | 47,046 | 18,825 | ||||
Loans and Leases Receivable, Gross, Total | $ 47,171 | $ 18,825 |
LOANS (Schedule of Loans Indivi
LOANS (Schedule of Loans Individually Evaluated for Impairment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | $ 8,908 | $ 9,477 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 11,754 | 7,942 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 3,785 | 4,225 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 11,008 | 7,324 |
Impaired Financing Receivable, Related Allowance | 429 | 376 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 6,768 | 5,974 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 6,299 | 5,504 |
Commercial Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 8,783 | 8,783 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,115 | 1,255 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 3,660 | 3,660 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,115 | 1,255 |
Impaired Financing Receivable, Related Allowance | 366 | 366 |
Residential, One to Four Family Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 694 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 3,871 | 713 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 565 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,594 | 565 |
Impaired Financing Receivable, Related Allowance | $ 10 | |
Consumer Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 125 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 125 | |
Impaired Financing Receivable, Related Allowance | $ 63 |
LOANS (Schedule of Loans Indi38
LOANS (Schedule of Loans Individually Evaluated for Impairment II) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | $ 3,785 | $ 564 | $ 3,787 | $ 564 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 11,041 | 13,850 | 11,181 | 14,029 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 7 | 4 | 16 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 99 | 140 | 359 | 440 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 6,307 | 11,463 | 6,380 | 11,587 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 50 | 121 | 227 | 382 |
Commercial Portfolio Segment [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 3,660 | 3,660 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,130 | 1,300 | 1,185 | 1,355 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 12 | 13 | 36 | 41 |
Residential, Multifamily Portfolio Segment [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 564 | |||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 7 | |||
Residential, One to Four Family Portfolio Segment [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 564 | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 3,604 | 1,087 | 3,616 | 1,087 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 16 | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 37 | $ 6 | 96 | $ 17 |
Consumer Portfolio Segment [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | $ 125 | 127 | ||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 4 |
LOANS (Schedule of Non-accrual
LOANS (Schedule of Non-accrual Loans)(Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 7,092 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 841 | |
Commercial Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 3,660 | $ 3,660 |
Loans Past Due Over 90 Days Still Accruing | ||
Residential, One to Four Family Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 2,466 | |
Consumer Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 125 |
LOANS (Schedule of Past Due Loa
LOANS (Schedule of Past Due Loans)(Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 4,823 | $ 4,928 |
Financing Receivable, Recorded Investment, Current | 1,376,826 | 1,050,778 |
Loans and Leases Receivable, Gross, Total | 1,381,649 | 1,055,706 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 197 | 14 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4,914 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4,626 | |
Real Estate Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and Leases Receivable, Gross, Total | 987,740 | 721,011 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 841 | 958 |
Financing Receivable, Recorded Investment, Current | 735,646 | 546,753 |
Loans and Leases Receivable, Gross, Total | 736,487 | 547,711 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 958 | |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 841 | |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,748 | 3,936 |
Financing Receivable, Recorded Investment, Current | 342,990 | 311,934 |
Loans and Leases Receivable, Gross, Total | 346,738 | 315,870 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 88 | 14 |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,922 | |
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,660 | |
Construction Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Current | 37,723 | 29,447 |
Loans and Leases Receivable, Gross, Total | 37,723 | 29,447 |
Residential, Multifamily Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Current | 187,753 | 117,373 |
Loans and Leases Receivable, Gross, Total | 187,753 | 117,373 |
Residential, One to Four Family Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Current | 25,777 | 26,480 |
Loans and Leases Receivable, Gross, Total | 25,777 | 26,480 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 234 | 34 |
Financing Receivable, Recorded Investment, Current | 46,937 | 18,791 |
Loans and Leases Receivable, Gross, Total | 47,171 | 18,825 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 109 | |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 34 | |
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 125 |
LOANS (Schedule of Loans by Ris
LOANS (Schedule of Loans by Risk Category)(Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | $ 1,308,701 | $ 1,010,401 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 1,287,207 | 998,321 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 15,814 | 7,208 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 5,680 | 4,872 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 736,487 | 547,711 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 727,068 | 542,206 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 7,399 | 4,293 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 2,020 | 1,212 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 346,738 | 315,870 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 334,663 | 309,295 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 8,415 | 2,915 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 3,660 | 3,660 |
Construction Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 37,723 | 29,447 |
Construction Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 37,723 | 29,447 |
Residential, Multifamily Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 187,753 | 117,373 |
Residential, Multifamily Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 187,753 | 117,373 |
Residential, One to Four Family Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 25,777 | 26,480 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | $ 47,171 | $ 18,825 |
LOANS (Schedule of Loans on the
LOANS (Schedule of Loans on the basis of Performance)(Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | $ 1,308,701 | $ 1,010,401 |
Residential One To Four Family Portfolio And Consumer Portfolo Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 72,948 | 45,305 |
Residential One To Four Family Portfolio And Consumer Portfolo Segment [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 70,357 | 45,305 |
Residential One To Four Family Portfolio And Consumer Portfolo Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 2,591 | |
Residential, One to Four Family Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 25,777 | 26,480 |
Residential, One to Four Family Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 23,311 | 26,480 |
Residential, One to Four Family Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 2,466 | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 47,171 | 18,825 |
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 47,046 | $ 18,825 |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | $ 125 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
PER COMMON SHARE DATA | ||||
Number of antidilutive shares not considered in computing diluted earnings per share | 45,500 | 45,500 | 45,500 | 45,500 |
EARNINGS PER SHARE (Computation
EARNINGS PER SHARE (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
PER COMMON SHARE DATA | ||||
Net income | $ 3,845 | $ 1,450 | $ 9,044 | $ 4,964 |
Less: Dividends paid to preferred stockholders | (3,420) | (3,420) | ||
Less: Earnings allocated to participating securities | (74) | (39) | (174) | (35) |
Net income available to common stockholders | $ 3,771 | $ (2,009) | $ 8,870 | $ 1,509 |
Weighted average common shares outstanding including participating securities | 4,633 | 3,962 | 4,632 | 3,420 |
Less: Weighted average participating securities | (89) | (78) | (89) | (78) |
Weighted average common shares outstanding | 4,544 | 3,884 | 4,543 | 3,342 |
Incremental shares from assumed conversion of options | 33 | 33 | 33 | |
Weighted average common and common equivalent shares | 4,577 | 3,884 | 4,576 | 3,375 |
Earnings (Loss) per share - basic | $ 0.83 | $ (0.52) | $ 1.95 | $ 0.45 |
Earnings (Loss) per share - diluted | $ 0.82 | $ (0.52) | $ 1.94 | $ 0.45 |
STOCK COMPENSATION PLAN (Narrat
STOCK COMPENSATION PLAN (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2013 | |
Executive Management [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested accerlerated shares | 178,600 | |||||
Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment award, description | Stock options are generally granted with an exercise price equal to 100% of the fair value of the common stock at the date of grant. | |||||
Unrecognized compensation cost related to non-vested stock options | $ 0 | $ 0 | $ 0 | $ 0 | ||
Compensation cost related to stock award plan | $ 0 | 528,000 | $ 0 | 621,000 | ||
Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment award, description | Under the terms of the 2009 Plan, each option agreement cannot have an exercise price that is less than 100% of the fair value of the shares covered by the option on the date of grant. In the case of an ISO granted to any 10% stockholder, the exercise price shall not be less than 110% of the fair value of the shares covered by the option on the date of grant | |||||
Share-based payment award, shares authorized, maximum | 1,183,000 | 1,183,000 | ||||
Share-based payment award, exercise period from the grant date | 10 years | |||||
Incentive Stock Options (ISO) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment award, exercise period from the grant date | 5 years | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment award, shares authorized, maximum | 823,122 | 823,122 | ||||
Unrecognized compensation cost related to non-vested stock options | $ 1,200,000 | $ 1,200,000 | ||||
Compensation cost related to stock award plan | 109,000 | 1,500,000 | 306,000 | 1,600,000 | ||
Compensation cost related to stock award plan, net of tax | $ 63,000 | $ 1,200,000 | $ 174,000 | 1,300,000 | ||
Number of additional shares authorized | 760,000 | 300,000 | ||||
Number of shares issued | 31,616 | |||||
Unrecognized compensation expense recognition period | 3 years 3 months 29 days | |||||
Number of shares, Vested | 66,667 | 4,000 | ||||
Fair value of shares vested | $ 84,000 | $ 1,500,000 |
STOCK COMPENSATION PLAN (Summar
STOCK COMPENSATION PLAN (Summary of the Status of the Stock Option Plan) (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
STOCK COMPENSATION PLAN [Abstract] | |
Number of Options, Outstanding, beginning of period | shares | 276,500 |
Number of Options, outstanding, end of period | shares | 276,500 |
Number of Options vested and exerciseable at period end | shares | 276,500 |
Weighted Average Exercise Price, beginning of period | $ / shares | $ 19.97 |
Weighted Average Exercise Price, end of period | $ / shares | 19.97 |
Weighted Average Exercise Price, Options vested and exercisable at period-end | $ / shares | $ 19.97 |
Weighted average remaining contractual life (years) | 5 years 8 months 26 days |
STOCK COMPENSATION PLAN (Summ47
STOCK COMPENSATION PLAN (Summary of Stock Options Outstanding) (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
$10 - 20 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Average Exercise Prices, Lower Limit | $ 10 |
Range of Average Exercise Prices, Upper Limit | $ 20 |
Number of Options Outstanding | shares | 231,000 |
Weighted Average Remaining Contractual Life | 6 years 7 months 21 days |
Weighted Average Exercise Price | $ 18 |
$21 - 30 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Average Exercise Prices, Lower Limit | 21 |
Range of Average Exercise Prices, Upper Limit | $ 30 |
Number of Options Outstanding | shares | 45,500 |
Weighted Average Remaining Contractual Life | 1 year 1 month 24 days |
Weighted Average Exercise Price | $ 30 |
$10 - 30 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Average Exercise Prices, Lower Limit | 10 |
Range of Average Exercise Prices, Upper Limit | $ 30 |
Number of Options Outstanding | shares | 276,500 |
Weighted Average Remaining Contractual Life | 5 years 8 months 26 days |
Weighted Average Exercise Price | $ 19.97 |
STOCK COMPENSATION PLAN (Summ48
STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Outstanding, January 1, 2017 | 64,638 | |
Number of shares, Granted | 31,616 | |
Number of shares, Forfeited | (3,167) | |
Number of shares, Vested | (66,667) | (4,000) |
Number of shares, Outstanding, September 30, 3017 | 89,087 | |
Weighted Average Grant Date fair Value, January 1, 2017 | $ 20.42 | |
Weighted Average Grant Date fair Value, Granted | 21 | |
Weighted Average Grant Date fair Value, Forfeited | 18 | |
Weighted Average Grant Date fair Value, Vested | 21 | |
Weighted Average Grant Date fair Value, September 30, 2017 | $ 20.69 |
FAIR VALUE OF FINANCIAL INSTR49
FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 | ||
Impaired loans with allocated allowance for loan losses, carrying amount | $ 9,477,000 | $ 8,908,000 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Impaired loans with allocated allowance for loan losses, carrying amount | 3,660,000,000 | 3,660,000,000 | ||
Valuation allowance | 366,000,000 | $ 366,000,000 | ||
Increase of provision for loan loss | $ 42,000,000 |
FAIR VALUE OF FINANCIAL INSTR50
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Inputs, Level 1 [Member] | CRA Mutual Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | $ 2,110 | $ 2,063 |
Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 26,170 | 29,027 |
Fair Value, Inputs, Level 2 [Member] | Residential Collateralized Mortgage Obligation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 2,950 | 5,103 |
Fair Value, Inputs, Level 2 [Member] | Commercial Mortgage-Backed Securities, Guaranteed by US Government Sponsored Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | 1,566 | |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a recurring basis | $ 1,126 | $ 1,136 |
FAIR VALUE OF FINANCIAL INSTR51
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Inputs, Level 3 [Member] | Commercial and Industrial Sector [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on a non-recurring basis | $ 3,294 | $ 3,294 |
FAIR VALUE OF FINANCIAL INSTR52
FAIR VALUE OF FINANCIAL INSTRUMENTS (Quantitative Information About Level 3 Fair Value Measurements for Assets) (Details) - Commercial and Industrial Sector [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value of assets on a non-recurring basis | $ 3,294 | $ 3,294 |
Market Approach Valuation Technique [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value of assets on a non-recurring basis | $ 3,294 | $ 3,294 |
Range (Weighted Average) | 10.00% | 10.00% |
FAIR VALUE OF FINANCIAL INSTR53
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Investment securities available for sale, at estimated fair value | $ 33,922 | $ 37,329 |
Securities held to maturity, fair value | 5,630 | 6,419 |
Carrying Amount [Member] | ||
Financial assets: | ||
Cash and due from banks | 267,099 | 82,931 |
Investment securities available for sale, at estimated fair value | 33,922 | 37,329 |
Securities held to maturity, fair value | 5,681 | 6,500 |
Loans, net | 1,365,754 | 1,042,731 |
Other investments | 13,740 | 12,588 |
Accrued interest receivable | 3,903 | 2,735 |
Financial liabilities: | ||
Deposits without stated maturities | 1,405,458 | 903,267 |
Deposits with stated maturities | 83,185 | 90,513 |
Borrowed funds | 43,750 | 78,418 |
Junior subordinated debentures | 20,620 | |
Trust preferred securities | 20,620 | |
Subordinated debt, net of issurance cost | 24,468 | |
Accrued interest payable | 547 | 227 |
Estimated Fair Value Measurements [Member] | ||
Financial assets: | ||
Cash and due from banks | 267,099 | 82,931 |
Investment securities available for sale, at estimated fair value | 33,922 | 37,329 |
Securities held to maturity, fair value | 5,630 | 6,419 |
Loans, net | 1,381,158 | 1,059,333 |
Accrued interest receivable | 3,903 | 2,735 |
Financial liabilities: | ||
Deposits without stated maturities | 1,405,458 | 903,267 |
Deposits with stated maturities | 83,278 | 90,559 |
Borrowed funds | 43,794 | 78,872 |
Junior subordinated debentures | 19,998 | |
Trust preferred securities | 20,005 | |
Subordinated debt, net of issurance cost | 25,000 | |
Accrued interest payable | 547 | 227 |
Fair Value, Inputs, Level 1 [Member] | Estimated Fair Value Measurements [Member] | ||
Financial assets: | ||
Cash and due from banks | 267,099 | 82,931 |
Investment securities available for sale, at estimated fair value | 2,110 | 2,063 |
Accrued interest receivable | 2 | |
Financial liabilities: | ||
Deposits without stated maturities | 1,405,458 | 903,267 |
Accrued interest payable | 17 | 19 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value Measurements [Member] | ||
Financial assets: | ||
Investment securities available for sale, at estimated fair value | 31,812 | 35,266 |
Securities held to maturity, fair value | 5,630 | 6,419 |
Accrued interest receivable | 135 | 157 |
Financial liabilities: | ||
Deposits with stated maturities | 83,278 | 90,559 |
Borrowed funds | 43,794 | 78,872 |
Subordinated debt, net of issurance cost | 25,000 | |
Accrued interest payable | 360 | 62 |
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value Measurements [Member] | ||
Financial assets: | ||
Loans, net | 1,381,158 | 1,059,333 |
Accrued interest receivable | 3,766 | 2,578 |
Financial liabilities: | ||
Junior subordinated debentures | 19,998 | |
Trust preferred securities | 20,005 | |
Accrued interest payable | $ 170 | $ 146 |
ACCUMULATED OTHER COMPREHENSI54
ACCUMULATED OTHER COMPREHENSIVE INCOME (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 109,491 | $ 75,952 | ||
Total other comprehensive income (loss), net of tax | $ 26 | $ (56) | 118 | 355 |
Ending balance | 118,959 | 109,968 | 118,959 | 109,968 |
AOCI (Loss), Net [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (73) | 427 | (165) | 16 |
Net change in other comprehensive income (loss) before reclassification, net of tax | 26 | (56) | 118 | 378 |
Amounts reclassified from accumulated other comprehensive income for loss on call of securities, net of tax expense of $0, $1, $0 and $1 respectively | (23) | |||
Total other comprehensive income (loss), net of tax | 26 | (56) | 118 | 355 |
Ending balance | $ (47) | $ 371 | $ (47) | $ 371 |
ACCUMULATED OTHER COMPREHENSI55
ACCUMULATED OTHER COMPREHENSIVE INCOME (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | $ (2,562) | $ (1,072) | $ (5,994) | $ (3,478) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized gain on securities sales | 40 | |||
Income tax expense | (17) | |||
Total reclassifications, net of tax | $ 23 |
FINANCIAL INSTRUMENTS WITH OF56
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 22.7 | $ 9.8 |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability | $ 1.7 | $ 4 |
Minimum [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans and Leases Receivable, Commitments, Fixed Rates, Interest Rate Percentage | 3.75% | 3.75% |
Maximum [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans and Leases Receivable, Commitments, Fixed Rates, Interest Rate Percentage | 9.25% | 8.75% |
FINANCIAL INSTRUMENTS WITH OF57
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Schedule of Off-Balance-sheet Risk) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Unused lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans and Leases Receivable, Commitments, Fixed Rates | $ 47,333 | $ 60,984 |
Loans and Leases Receivable, Commitments, Variable Rates | 26,386 | 9,890 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans and Leases Receivable, Commitments, Fixed Rates | $ 22,716 | $ 9,808 |
SUBORDINATED DEBT (Narrative) (
SUBORDINATED DEBT (Narrative) (Details) - Subordinated Debt [Member] | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 25,000,000 |
Debt Instrument, Interest Rate During Period | 6.25% |
Debt Instrument, Redemption Price, Percentage | 100.00% |
London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 4.26% |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions | Nov. 10, 2017 | Nov. 10, 2017 | Nov. 08, 2017 |
Subsequent Event [Line Items] | |||
Stock issued during period, shares, new issues | 3,100,000 | ||
Shares issued, price per share | $ 35 | ||
Proceeds from issuance initial public offering | $ 115 | $ 99.9 | |
Underwriters Overallotment Option [Member] | |||
Subsequent Event [Line Items] | |||
Stock issued during period, shares, new issues | 465,000 | ||
Shares issued, price per share | $ 35 | $ 35 | |
Proceeds from issuance initial public offering | $ 15.1 |