Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 09, 2018 | |
Document And Entity Information (Abstract) | ||
Entity Registrant Name | Metropolitan Bank Holding Corp. | |
Entity Central Index Key | 1,476,034 | |
Trading Symbol | mcb | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 8,207,234 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 10,148 | $ 8,790 |
Overnight deposits | 240,994 | 254,441 |
Total cash and cash equivalents | 251,142 | 263,231 |
Investment securities available for sale, at fair value | 28,989 | 32,157 |
Investment securities held to maturity (estimated fair value of $4,782 and $5,330 at June 30, 2018 and December 31, 2017, respectively) | 4,985 | 5,428 |
Total securities | 33,974 | 37,585 |
Other investments | 16,770 | 11,677 |
Loans, net of deferred fees and unamortized costs | 1,599,647 | 1,419,896 |
Allowance for loan losses | (17,463) | (14,887) |
Net loans | 1,582,184 | 1,405,009 |
Receivable from prepaid card programs, net | 7,589 | 9,579 |
Accrued interest receivable | 4,449 | 4,421 |
Premises and equipment, net | 7,012 | 6,268 |
Prepaid expenses and other assets | 7,715 | 5,751 |
Goodwill | 9,733 | 9,733 |
Accounts receivable, net | 3,927 | 6,601 |
Total assets | 1,924,495 | 1,759,855 |
Deposits: | ||
Noninterest-bearing demand deposits | 878,703 | 812,497 |
Interest-bearing deposits | 661,779 | 591,858 |
Total deposits | 1,540,482 | 1,404,355 |
Federal Home Loan Bank of New York advances | 63,000 | 42,198 |
Trust preferred securities | 20,620 | 20,620 |
Subordinated debts, net of issuance cost | 24,517 | 24,489 |
Accounts payable, accrued expenses and other liabilities | 18,111 | 21,678 |
Accrued interest payable | 1,019 | 749 |
Prepaid debit cardholder balances | 7,162 | 8,882 |
Total liabilities | 1,674,911 | 1,522,971 |
Stockholders' equity: | ||
Common stock, $0.01 par value, authorized 10,000,000 shares, issued and 8,205,234 and 8,196,310 outstanding at June 30, 2018 and December 31, 2017, respectively | 81 | 81 |
Additional paid in capital | 212,100 | 211,145 |
Retained earnings | 38,017 | 25,861 |
Accumulated other comprehensive loss, net of tax effect | (617) | (206) |
Total stockholders' equity | 249,584 | 236,884 |
Total liabilities and stockholders' equity | 1,924,495 | 1,759,855 |
Class A Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock | ||
Total stockholders' equity | 0 | 0 |
Class B Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock | 3 | 3 |
Total stockholders' equity | $ 3 | $ 3 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Held to Maturity, Fair Value | $ 4,782 | $ 5,330 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 8,205,234 | 8,196,310 |
Common stock, shares outstanding | 8,205,234 | 8,196,310 |
Class A preferred stock | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class B preferred stock | ||
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 OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest and dividend income: | ||||
Loans, including fees | $ 17,996 | $ 13,367 | $ 35,143 | $ 25,234 |
Securities: | ||||
Taxable | 177 | 204 | 363 | 419 |
Tax-exempt | 8 | 8 | 15 | 15 |
Money market funds and commercial paper | 121 | 70 | 240 | 134 |
Overnight deposits | 1,534 | 293 | 2,577 | 481 |
Other interest and dividends | 162 | 105 | 288 | 206 |
Total interest income | 19,998 | 14,047 | 38,626 | 26,489 |
Interest expense: | ||||
Deposits | 1,799 | 1,468 | 3,238 | 2,728 |
Borrowed funds | 191 | 243 | 341 | 429 |
Trust preferred securities interest expense | 208 | 165 | 392 | 305 |
Subordinated debt interest expense | 405 | 405 | 809 | 478 |
Total interest expense | 2,603 | 2,281 | 4,780 | 3,940 |
Net interest income | 17,395 | 11,766 | 33,846 | 22,549 |
Provision for loan losses | 1,270 | 1,790 | 2,747 | 2,360 |
Net interest income after provision for loan losses | 16,125 | 9,976 | 31,099 | 20,189 |
Non-interest income: | ||||
Loan prepayment penalties | 13 | 65 | 13 | |
Losses on call of securities | (37) | (37) | ||
Total non-interest income | 2,649 | 1,573 | 8,026 | 2,818 |
Non-interest expense: | ||||
Compensation and benefits | 6,126 | 4,264 | 12,443 | 8,841 |
Bank premises and equipment | 1,288 | 1,037 | 2,468 | 2,110 |
Directors fees | 210 | 175 | 571 | 349 |
Insurance expense | 73 | 65 | 149 | 144 |
Professional fees | 841 | 480 | 1,619 | 890 |
FDIC assessment | 123 | 105 | 263 | 275 |
Data processing fees | 609 | 291 | 2,115 | 550 |
Other expenses | 1,005 | 724 | 1,885 | 1,216 |
Total non-interest expense | 10,275 | 7,141 | 21,513 | 14,375 |
Net income before income tax expense | 8,499 | 4,408 | 17,612 | 8,632 |
Income tax expense | 2,634 | 1,757 | 5,456 | 3,431 |
Net income | $ 5,865 | $ 2,651 | $ 12,156 | $ 5,201 |
Earnings per share: | ||||
Basic earnings (in dollars per share) | $ 0.72 | $ 0.57 | $ 1.48 | $ 1.12 |
Diluted earnings (in dollars per share) | $ 0.70 | $ 0.57 | $ 1.46 | $ 1.12 |
Service charges on deposit accounts | ||||
Non-interest income: | ||||
Non-interest income | $ 821 | $ 505 | $ 2,731 | $ 796 |
Prepaid debit card income | ||||
Non-interest income: | ||||
Non-interest income | 1,519 | 805 | 2,427 | 1,593 |
Other service charges and fees | ||||
Non-interest income: | ||||
Non-interest income | $ 346 | $ 250 | $ 2,840 | $ 416 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 5,865 | $ 2,651 | $ 12,156 | $ 5,201 |
Unrealized gains/(losses) of securities available for sale: | ||||
Unrealized holding gains/(losses) arising during the period | (166) | 28 | (588) | 161 |
Reclassification adjustment for net losses included in net income | 37 | 37 | ||
Total | (129) | 28 | (551) | 161 |
Tax effect | 40 | (12) | 140 | (69) |
Total unrealized gains/loss on securities available for sale, net of tax | (89) | 16 | (411) | 92 |
Comprehensive income | $ 5,776 | $ 2,667 | $ 11,745 | $ 5,293 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Preferred Stock, Class A | Preferred Stock, Class B | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI (Loss), Net | Total | |
Balance at Dec. 31, 2016 | $ 0 | $ 3 | $ 45 | $ 96,116 | $ 13,492 | $ (165) | $ 109,491 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Restricted stock issued, net of forfeiture | (7) | (7) | ||||||
Employee and non-employee stock-based compensation expense | 203 | 203 | ||||||
Net income | 5,201 | 5,201 | ||||||
Other comprehensive loss | 92 | 92 | ||||||
Balance at Jun. 30, 2017 | 0 | 3 | 45 | 96,312 | 18,693 | (73) | 114,980 | |
Balance at Dec. 31, 2017 | 0 | 3 | 81 | 211,145 | 25,861 | (206) | 236,884 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Restricted stock issued, net of forfeiture | 440 | 440 | ||||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting | (72) | (72) | ||||||
Employee and non-employee stock-based compensation expense | 619 | 619 | ||||||
Issuance of common stock | [1] | (33) | (33) | |||||
Net income | 12,156 | 12,156 | ||||||
Other comprehensive loss | (411) | (411) | ||||||
Balance at Jun. 30, 2018 | $ 0 | $ 3 | $ 81 | $ 212,100 | $ 38,017 | $ (617) | $ 249,584 | |
[1] | Represents costs incurred in connection with the Company's initial public offering completed in the prior period. |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - shares | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||||
Balance (shares) | 8,205,234 | 4,633,012 | 8,196,310 | 4,604,563 |
Number of shares issued for net of forfeiture | 8,987 | |||
Number of shares exercised for restricted stock vesting | 63 | |||
Number of shares grants for net of forfeiture | 28,449 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 12,156 | $ 5,201 |
Adjustments to reconcile net income to net cash: | ||
Net depreciation amortization and accretion | 850 | 420 |
Provision for loan losses | 2,747 | 2,360 |
Net Change in deferred loan fees | 940 | (338) |
Gain on sale of loans held for sale | (50) | |
Loss on call of securities | 37 | |
Deferred income tax benefit | 62 | 51 |
Proceeds from the sale of loans held for sale | 16,932 | |
Stock-based compensation expense | 619 | 203 |
Non-employee stock-based expense | 220 | |
Forfeiture of restricted shares | (7) | |
Net change in: | ||
Accrued interest receivable | (28) | (324) |
Accounts payable, accrued expenses and other liabilities | (3,567) | 5,624 |
Debit cardholder balances | (1,720) | 6 |
Accrued interest payable | 270 | |
Accounts receivable, net | 2,674 | 5,362 |
Receivable from prepaid card programs, net | 1,990 | (11) |
Prepaid expenses and other assets | (1,964) | 430 |
Net cash (used in) provided by operating activities | 32,168 | 18,977 |
Cash flows from investing activities: | ||
Loan originations and payments, net | (197,505) | (230,535) |
Redemptions of other investments | 2,120 | 208 |
Purchases of other investments | (7,213) | (886) |
Purchases of securities available for sale | (1,812) | (1,470) |
Proceeds from sales and calls of securities available for sale | 1,463 | |
Proceeds from paydowns and maturities of securities available for sale | 2,809 | 3,614 |
Proceeds from paydowns of securities held to maturity | 427 | 513 |
Purchase of premises and equipment, net | (1,370) | (1,153) |
Net cash used in investing activities | (201,081) | (229,709) |
Cash flows from financing activities: | ||
Costs incurred from issuance of common stock in prior period | (33) | |
Proceeds from issuance of subordinated debt, net of issuance cost | 24,453 | |
Proceeds from FHLB advances | 90,240 | 120,000 |
Repayments of FHLB advances | (69,438) | (124,616) |
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting | (72) | |
Net increase in deposits | 136,127 | 335,518 |
Net cash provided by financing activities | 156,824 | 355,355 |
Increase in cash and cash equivalents | (12,089) | 144,623 |
Cash and cash equivalents at the beginning of the period | 263,231 | 82,931 |
Cash and cash equivalents at the end of the period | 251,142 | 227,554 |
Cash paid for: | ||
Interest | 4,510 | 3,143 |
Income Taxes | 7,389 | $ 2,837 |
Non-cash item: | ||
Transfer of loans held for investment to held for sale | $ 16,882 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1 - ORGANIZATION Metropolitan Bank Holding Corp. (a New York Corporation) (the “Company”) is a bank holding company whose principal activity is the ownership and management of Metropolitan Commercial Bank (the “Bank”), its wholly-owned subsidiary. The 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 the cash flows from the operations of the business. 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”) up to the maximum amounts allowed by law. The Bank commenced operations on June 22, 1999. The Company and the Bank are subject to the 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. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2018 | |
Basis Of Presentation [Abstract] | |
BASIS OF PRESENTATION | NOTE 2 – 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. 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. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The Unaudited 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. Certain prior-year amounts have been reclassified to conform to current year’s presentation. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. The unaudited consolidated financial statements presented in this report should be read in conjunction with the Company’s audited consolidated financial statements and notes to audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. |
SUMMARY OF RECENT ACCOUNTING PR
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 – SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS Pursuant to the Jumpstart Our Business Startups Act (“JOBS Act”), an 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 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. In January 2016, the FASB issued ASU 2016-01, an amendment to Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10). The objectives of the ASU are to: (1) require equity investments to be measured at fair value, with changes in fair value recognized in net income, (2) simplify the impairment assessment of equity investments without readily determinable fair values, (3) eliminate the requirement to disclose methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost on the balance sheet, (4) require the use of the exit price notion when measuring the fair value of financial instruments, and (5) clarify the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Liabilities, an amendment to ASU 2016-01. The amendments clarify certain aspects of the guidance issued in ASU 2016-01. These ASUs will be effective for the Company on January 1, 2019. The Company has evaluated the impact of ASU 2016-01 and 2018-03 and has concluded that they will not have a material impact on its consolidated financial statements. 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 impacts of ASU 2016-02 on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objectives of the ASU are to simplify the accounting for share-based payment transactions, including the income tax consequences, the treatment of forfeitures, and the classification on the statement of cash flows. The Company elected to adopt ASU 2016-09 in the second quarter of 2018 and, in accordance with the guidance, has adopted the guidance as of the beginning of the fiscal year. Under the ASU, the tax effects of awards are treated as discrete items in the reporting period in which they occur. Therefore, the tax effect of awards is not spread over the entire year through the use of the annual effective tax rate, but instead is recorded entirely in the period in which the tax deduction arose. The relevant information on restricted stock that vests and stock options that are excised is used to compare the cumulative book expense to the tax deduction. With this information, the discrete item is calculated and recorded. The Company prospectively applied the amendment in this guidance requiring recognition of excess tax benefits and deficits in the income statement resulting in a $62,000 income tax benefit recognized in the six months ended June 30, 2018, resulting in an effective tax rate of 31.1%. The amendments in the guidance that require application using a modified retrospective transition method did not have an impact on the Company’s retained earnings as there were no unrecognized tax benefits that existed prior to April 1, 2018 nor were there forfeiture estimates that were that impacted compensation expense. 2018 will be the first year of recording any excess tax deduction and these will be reported as a discrete item in the quarter in which restricted stocks/stock options will vest/be exercised. 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 15, 2020. Management has established a committee to evaluate the impact of ASU 2016-13 on the Company’s financial statements. Management has also engaged a third party vendor for a software solution, which is expected to be implemented during 2018 to begin testing models and comparing results with current incurred loss estimates. Since the Bank has been using this vendor for credit analysis and stress testing solutions for over five years, sufficient loan level information should be readily available to test the Historical Loss and Migration Analysis models, among other potential modeling solutions. The Company expects to recognize a one-time cumulative adjustment to the allowance for loan 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 that 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 that ASU 2017-08 will not have a significant impact on its consolidated financial statements. On February 14, 2018 the FASB issued final guidance in the form of Accounting Standards Update No. 2018-02, which permits - but does not require - companies to reclassify stranded tax effects caused by 2017 tax reform from accumulated other comprehensive income to retained earnings. Additionally, the ASU requires new disclosures by all companies, whether they opt to do the reclassification or not. Management expects that ASU 2018-02 will not have a significant impact on its consolidated financial statements. The amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2018; however, early adoption is permitted. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2018 | |
INVESTMENT SECURITIES [Abstract] | |
INVESTMENT SECURITIES | NOTE 4 - INVESTMENT SECURITIES The following table summarizes the amortized cost and fair value of securities available for sale and securities held to maturity at June 30, 2018 and December 31, 2017 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized losses (dollars in thousands): At June 30, 2018 Amortized Cost Gross Unrecognized Gross Unrecognized Fair Value Available for sale Residential mortgage-backed securities $ 24,133 $ 3 $ (672 ) $ 23,464 Residential collateralized mortgage obligations 2,485 - (134 ) 2,351 Municipal bond 1,086 7 - 1,093 CRA mutual fund 2,183 - (102 ) 2,081 Total securities available for sale $ 29,887 $ 10 $ (908 ) $ 28,989 Held to maturity Residential mortgage-backed securities $ 4,960 - $ (203 ) $ 4,757 Foreign government securities 25 - - 25 Total securities held to maturity $ 4,985 $ - $ (203 ) $ 4,782 At December 31, 2017 Amortized Cost Gross Gross Fair Value Available for sale Residential mortgage-backed securities $ 24,856 $ 70 $ (242 ) $ 24,684 Residential collateralized mortgage obligations 2,809 - (103 ) 2,706 Commercial collateralized mortgage obligations 1,581 - (31 ) 1,550 Municipal bond 1,098 11 - 1,109 CRA mutual fund 2,160 - (52 ) 2,108 Total securities available for sale $ 32,504 $ 81 $ (428 ) $ 32,157 Held to maturity Residential mortgage-backed securities $ 5,403 $ - $ (98 ) $ 5,305 Foreign government securities 25 - - 25 Total securities held to maturity $ 5,428 $ - $ (98 ) $ 5,330 The proceeds from sales and calls of securities and the associated gains and losses are listed below (dollars in thousands): Three and six months ended June 30, 2018 2017 Proceeds $ 1,500 $ - Gross gains $ - $ - Gross losses $ (37 ) $ - Tax impact $ 11 $ - The amortized cost and fair value of debt securities at June 30, 2018 and December 31, 2017 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 (dollars in thousands): Held to Maturity Available for Sale At June 30, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 25 $ 25 $ - $ - One to five years - - - - Five to ten years - - - - Due after ten years - - 1,086 1,093 Total $ 25 $ 25 $ 1,086 $ 1,093 Residential mortgage-backed securities $ 4,960 $ 4,757 $ 24,133 $ 23,464 Residential collateralized mortgage obligations - - 2,485 2,351 CRA mutual fund - - 2,183 2,081 Total Securities $ 4,985 $ 4,782 $ 29,887 $ 28,989 Held to Maturity Available for Sale At December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ - $ - $ - $ - One to five years 25 25 - - Five to ten years - - - - Due after ten years - - 1,098 1,109 Total $ 25 $ 25 $ 1,098 $ 1,109 Residential mortgage-backed securities $ 5,403 $ 5,305 $ 24,856 $ 24,684 Residential collateralized mortgage obligations - - 2,809 2,706 Commercial collateralized mortgage obligations - - 1,581 1,550 CRA mutual fund - - 2,160 2,108 Total Securities $ 5,428 $ 5,330 $ 32,504 $ 32,157 There were no securities pledged at June 30, 2018 and December 31, 2017 to secure borrowings. At June 30, 2018 and December 31, 2017, 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/unrecognized losses at June 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized/unrecognized loss position, are as follows (dollars in thousands): Less than 12 Months 12 months or more Total At June 30, 2018 Estimated Unrealized/ Unrecognized Estimated Unrealized/ Unrecognized Estimated Unrealized/ Unrecognized Residential mortgage-backed securities $ 15,054 $ (308 ) $ 8,148 $ (364 ) $ 23,202 $ (672 ) Residential collateralized mortgage obligations - - 2,351 (134 ) 2,351 (134 ) CRA mutual fund - - 2081 (102 ) 2,081 (102 ) Total securities available for sale $ 15,054 $ (308 ) $ 12,580 $ (600 ) $ 27,634 $ (908 ) Residential mortgage-backed securities $ 2,909 $ (95 ) $ 1,848 $ (108 ) $ 4,757 $ (203 ) Total held to maturity $ 2,909 $ (95 ) $ 1,848 $ (108 ) $ 4,757 $ (203 ) Less than 12 Months 12 months or more Total At December 31, 2017 Estimated Unrealized/ Unrecognized Estimated Unrealized/ Unrecognized Estimated Unrealized/ Unrecognized Residential mortgage-backed securities $ 9,194 $ (85 ) $ 7,738 $ (157 ) $ 16,932 $ (242 ) Residential collateralized mortgage obligations - - 2,706 (103 ) 2,706 (103 ) Commercial collateralized mortgage obligations - - 1,550 (31 ) 1,550 (31 ) CRA mutual fund - - 2,108 (52 ) 2,108 (52 ) Total securities available for sale $ 9,194 $ (85 ) $ 14,102 $ (343 ) $ 23,296 $ (428 ) Residential mortgage-backed securities $ 3,260 $ (33 ) $ 2,045 $ (65 ) $ 5,305 $ (98 ) Total held to maturity $ 3,260 $ (33 ) $ 2,045 $ (65 ) $ 5,305 $ (98 ) The unrealized losses of securities are primarily due to the changes in market interest rates subsequent to purchase. The Bank does not consider these securities to be other-than-temporarily impaired at June 30, 2018 and December 31, 2017 since the decline in market value is attributable to changes in interest rates and not credit quality. In addition, the Company does not intend to sell and does not believe that it is more likely than not that it will be required to sell these investments until there is a full recovery of the unrealized loss, which may be at maturity. As a result, no impairment loss was recognized during the six months ended June 30, 2018. At June 30, 2018 and December 31, 2017, 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 AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE 5 – LOANS AND ALLOWANCE FOR LOAN LOSSES Loans, net of deferred costs and fees, consist of the following as of June 30, 2018 and December 31, 2017 (dollars in thousands): At June 30, 2018 At December 31, 2017 Real estate Commercial $ 857,071 $ 783,745 Construction 45,974 36,960 Multifamily 233,474 190,097 One-to-four family 23,929 25,568 Total real estate loans 1,160,448 1,036,370 Commercial and industrial 354,932 340,001 Consumer 86,277 44,595 Total loans 1,601,657 1,420,966 Deferred fees (2,010 ) (1,070 ) Loans, net of deferred fees and unamortized costs 1,599,647 1,419,896 Allowance for loan losses (17,463 ) (14,887 ) Balance at the end of the period $ 1,582,184 $ 1,405,009 Non-performing loans include non-accrual loans and loans past due over 90 days and still accruing. Non-performing loans exclude troubled debt restructurings (“TDRs”) that are accruing and have been performing in accordance with the terms of their restructure agreement for at least six months. 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. There were no loans past due over 90 days and still accruing or non-accruing TDRs at June 30, 2018 and December 31, 2017. The following tables present the recorded investment in non-accrual loans by class of loans as of June 30, 2018 and December 31, 2017 (dollars in thousands): At June 30, 2018 At December 31, 2017 Commercial real estate $ - $ 787 Commercial & industrial - - One-to-four family - 2,447 Consumer 192 155 Total $ 192 $ 3,389 Interest on non-accrual loans not recognized was $1,000 and $37,000 for the three months ended June 30, 2018 and June 30, 2017, respectively. Interest on non-accrual loans not recognized was $2,500 and $77,000 for the six months ended June 30, 2018 and June 30, 2017, respectively. The following tables present the aging of the recorded investment in past due loans by class of loans as of June 30, 2018 and December 31, 2017 (dollars in thousands): At June 30, 2018 30-59 Days 60-89 Days Greater than 90 days Total Past Due Loans not Past Due Total Commercial real estate $ 96 $ - $ - $ 96 $ 856,975 $ 857,071 Commercial & industrial 114 73 - 187 354,745 354,932 Construction - - - - 45,974 45,974 Multifamily - - - - 233,474 233,474 One-to-four family - - - - 23,929 23,929 Consumer 39 - 142 181 86,096 86,277 Total $ 249 $ 73 $ 142 $ 464 $ 1,601,193 $ 1,601,657 At December 31, 2017 30-59 60-89 Greater Total Past Loans not Total Commercial real estate $ 836 $ - $ 787 $ 1,623 $ 782,122 $ 783,745 Commercial & industrial 85 142 - 227 339,774 340,001 Construction - - - - 36,960 36,960 Multifamily - - - - 190,097 190,097 One-to-four family - - - - 25,568 25,568 Consumer 149 21 155 325 44,270 44,595 Total $ 1,070 $ 163 $ 942 $ 2,175 $ 1,418,791 $ 1,420,966 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 TDRs and classified as impaired. Included in impaired loans at June 30, 2018 and December 31, 2017 were $2.6 million and $2.7 million of loans modified in TDRs, respectively. The Bank has not allocated specific reserves to those customers with loans modified in TDRs as of June 30, 2018, compared to $9,000 allocated at December 31, 2017. The Bank had not committed to lend additional amounts as of June 30, 2018 and December 31, 2017 to customers with outstanding loans that are classified as TDRs. During the three months and six months ended June 30, 2018 and 2017, there were no significant loans modified as TDRs. During the three and six months ended June 30, 2018 and June 30, 2017 there were no payment defaults on any loans previously identified as TDRs. 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 - Substandard - Doubtful Loans not meeting the criteria above 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): At June 30, 2018 Pass Special Mention Substandard Doubtful Total Commercial real estate $ 855,536 $ 392 $ 1,143 $ - $ 857,071 Commercial & industrial 347,278 7,654 - - 354,932 Construction 45,974 - - - 45,974 Multifamily 233,474 - - - 233,474 Total $ 1,482,262 $ 8,046 $ 1,143 $ - $ 1,491,451 At December 31, 2017 Pass Special Substandard Doubtful Total Commercial real estate $ 777,410 $ 4,369 $ 1,966 $ - $ 783,745 Commercial & industrial 331,775 8,226 - - 340,001 Construction 36,960 - - - 36,960 Multifamily 190,097 - - - 190,097 Total $ 1,336,242 $ 12,595 $ 1,966 $ - $ 1,350,803 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 interest 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 June 30, 2018 and December 31, 2017 (dollars in thousands): At June 30, 2018 Performing Non-Performing Total One-to-four family $ 23,929 $ - $ 23,929 Consumer 86,085 192 86,277 Total $ 110,014 $ 192 $ 110,206 At December 31, 2017 Performing Non-Performing Total One-to-four family $ 23,121 $ 2,447 $ 25,568 Consumer 44,440 155 44,595 Total $ 67,561 $ 2,602 $ 70,163 The following table presents the activity in the Allowance for Loan Losses (referred herein as “ALLL”) by segment for the three and six months ending June 30, 2018 and 2017 (dollars in thousands): Three months ended Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 7,800 $ 5,784 $ 503 $ 1,210 $ 383 $ 580 16,260 Provision/(credit) for loan losses 339 269 163 347 (3 ) 155 1,270 Loans charged-off - - - - - (67 ) (67 ) Recoveries - - - - - - - Total ending allowance balance $ 8,139 $ 6,053 $ 666 $ 1,557 $ 380 $ 668 $ 17,463 Three months ended Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 5,853 $ 4,963 $ 502 $ 687 $ 105 $ 126 12,236 Provision for loan losses 605 713 55 255 (3 ) 165 1,790 Loans charged-off - (88 ) - - - (29 ) (117 ) Recoveries - - - - - - - Total ending allowance balance $ 6,458 $ 5,588 $ 557 $ 942 $ 102 $ 262 $ 13,909 Six months ended June Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 7,136 $ 5,578 $ 519 $ 1,156 $ 138 $ 360 $ 14,887 Provision/(credit) for loan losses 950 546 147 401 242 461 2,747 Loans charged-off - (71 ) - - - (153 ) (224 ) Recoveries 53 - - - - - 53 Total ending allowance balance $ 8,139 $ 6,053 $ 666 $ 1,557 $ 380 $ 668 $ 17,463 Six months ended June Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 5,206 $ 5,364 $ 409 $ 620 $ 109 $ 107 11,815 Provision/(credit) for loan losses 1,252 444 148 322 (7 ) 201 2,360 Loans charged-off - (220 ) - - - (46 ) (266 ) Recoveries - - - - - - - Total ending allowance balance $ 6,458 $ 5,588 $ 557 $ 942 $ 102 $ 262 $ 13,909 The following tables present the balance in the ALLL and the recorded investment in loans by portfolio segment based on impairment method as of June 30, 2018 and December 31, 2017 (dollars in thousands): At June 30, 2018 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Individually evaluated for impairment $ - $ - $ - $ - $ - $ 96 $ 96 Collectively evaluated for impairment 8,139 6,053 666 1,557 380 572 17,367 Total ending allowance balance $ 8,139 $ 6,053 $ 666 $ 1,557 $ 380 $ 668 $ 17,463 Loans: Individually evaluated for impairment $ 1,535 $ - $ - $ - $ 1,099 $ 192 $ 2,826 Collectively evaluated for impairment 855,536 354,932 45,974 233,474 22,830 86,085 1,598,831 Total ending loan balance $ 857,071 $ 354,932 $ 45,974 $ 233,474 $ 23,929 $ 86,277 $ 1,601,657 At December 31, 2017 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Individually evaluated for impairment $ - $ - $ - $ - $ 9 $ 77 $ 86 Collectively evaluated for impairment 7,136 5,578 519 1,156 129 283 $ 14,801 Total ending allowance balance $ 7,136 $ 5,578 $ 519 $ 1,156 $ 138 $ 360 $ 14,887 Loans: Individually evaluated for impairment $ 2,368 $ - $ - $ - $ 3,566 $ 155 $ 6,089 Collectively evaluated for impairment 781,377 340,001 36,960 190,097 22,002 44,440 1,414,877 Total ending loan balance $ 783,745 $ 340,001 $ 36,960 $ 190,097 $ 25,568 $ 44,595 $ 1,420,966 A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Management applies its normal loan review procedures in making these judgments. Impaired loans include individually classified nonaccrual loans and TDRs. The following table presents loans individually evaluated for impairment recognized as of June 30, 2018 and December 31, 2017 (dollars in thousands): At June 30, 2018 Unpaid Principal Recorded Investment Allowance for Loan With an allowance recorded: One-to-four family $ - $ - $ - Consumer 210 192 96 Total $ 210 $ 192 $ 96 Without an allowance recorded: Commercial real estate $ 2,004 $ 1,535 $ - One-to-four family 1,376 1,099 - Total $ 3,380 $ 2,634 $ - At December 31, 2017 Unpaid Principal Recorded Investment Allowance for Loan With an allowance recorded: One-to-four family $ 686 $ 556 $ 9 Consumer 155 155 77 Total $ 841 $ 711 $ 86 Without an allowance recorded: Commercial real estate $ 2,890 $ 2,368 $ - One-to-four family 3,157 3,010 - Total $ 6,047 $ 5,378 $ - 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 June 30, 2018 and 2017 (in thousands): Three months ended June 30, 2018 Average Recorded Interest Income With an allowance recorded: One-to-four family $ - $ - Consumer 138 - Total $ 138 $ - Without an allowance recorded: Commercial real estate $ 1,540 $ 16 One-to-four family 1,104 $ 14 Total $ 2,644 $ 30 Three months ended June 30, 2017 Average Recorded Interest Income With an allowance recorded: One-to-four family $ 847 $ 9 Commercial and industrial 3,660 - Consumer 48 - Total $ 4,555 $ 9 Without an allowance recorded: Commercial real estate $ 6,331 $ 68 Commercial and industrial 1,160 12 One-to-four family 283 26 Total $ 7,774 $ 106 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 six month periods ended June 30, 2018 and 2017 (in thousands): Six months ended June 30, 2018 Average Recorded Interest Income With an allowance recorded: One-to-four family $ 185 $ - Consumer 144 2 Total $ 329 $ 2 Without an allowance recorded: Commercial real estate $ 1,816 $ 62 One-to-four family 1,373 28 Total $ 3,189 $ 90 Six months ended June 30, 2017 Average Recorded Investment Interest Income Recognized With an allowance recorded: One-to-four family $ 753 $ 18 Commercial and industrial 3,660 - Consumer 32 1 Total $ 4,445 $ 19 Without an allowance recorded: Commercial real estate $ 6,056 $ 112 Commercial and industrial 1,192 26 One-to-four family 377 - Total $ 7,625 $ 138 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 6 – EARNINGS PER SHARE The computation of basic and diluted earnings per share is shown below (dollars in thousands, except share data): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Basic Net income per consolidated statements of operations $ 5,865 $ 2,651 $ 12,156 $ 5,201 Less: Earnings allocated to participating securities (49 ) (51 ) (102 ) (100 ) Net income available to common stockholders $ 5,816 $ 2,600 $ 12,054 $ 5,101 Weighted average common shares outstanding including participating securities 8,198,257 4,629,004 8,195,542 4,629,004 Less: Weighted average participating securities (68,770 ) (89,079 ) (68,770 ) (89,079 ) Weighted average common shares outstanding 8,129,487 4,539,925 8,126,772 4,539,925 Basic earnings per common share $ 0.72 $ 0.57 $ 1.48 $ 1.12 Diluted Net income allocated to common stockholders $ 5,816 $ 2,600 $ 12,054 $ 5,101 Weighted average common shares outstanding for basic earnings per common share 8,129,487 4,539,925 8,126,772 4,539,925 Add: Dilutive effects of assumed exercise of stock options 160,561 33,000 156,834 33,000 Average shares and dilutive potential common shares 8,290,048 4,572,925 8,283,606 4,572,925 Dilutive earnings per common share $ 0.70 $ 0.57 $ 1.46 $ 1.12 All stock options for shares of common stock were considered in computing diluted earnings per common share for three months and six months ended June 30, 2018 and 2017, as no options were anti-dilutive. |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 6 Months Ended |
Jun. 30, 2018 | |
STOCK COMPENSATION PLAN [Abstract] | |
STOCK COMPENSATION PLAN | NOTE 7 - 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 June 30, 2018 and December 31, 2017, 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. 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% stockholder, the exercise period shall not exceed five years from the date of grant. In the event of a change in control, the Company may determine that any award then outstanding shall be assumed or an equivalent award shall be substituted by the successor company. 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. No options were granted during three and six months ended June 30, 2018 and 2017. A summary of the status of the Company’s stock option plan and the change during the six months ended June 30, 2018 is presented below: Six Months Ended June 30, 2018 Number of Weighted Average Outstanding, beginning of period 271,500 19.79 Granted - - Exercised (3,000 ) 30.00 Cancelled/forfeited - - Outstanding, end of period 268,500 $ 19.68 Options vested and exercisable at end of period 268,500 $ 19.68 Weighted average remaining contractual life (years) 5.13 Options exercised during the six months ended June 30, 2018 were a cashless exercise. There was no unrecognized compensation cost related to non-vested stock options granted under the 2009 Plan at June 30, 2018 and December 31, 2017. There was no compensation cost related to stock option plan for the three and six months ended June 30, 2018 and 2017. The following table summarizes information about stock options outstanding at June 30, 2018: Options Outstanding Range of Average Number Outstanding at Weighted Average Weighted Average $10 – 20 231,000 5.89 $ 18.00 $21 – 30 37,500 0.45 $ 30.00 $10 – 30 268,500 5.13 $ 19.68 Restricted Stock Awards 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, stockholders approved an additional 300,000 shares available under the plan, and in 2016, an additional 760,000 shares were authorized. Total remaining shares issuable under the plan are 724,642 at June 30, 2018, which includes performance based stock awards discussed below. There were 8,987 restricted shares granted to the Board of Directors as directors’ fees during the three months ended June 30, 2018 . As of June 30, 2018, there was $817,000 of total unrecognized compensation expense related to the restricted stock awards. The cost is expected to be recognized over a weighted-average period of 2.82 years. Total compensation cost that has been charged against income for this plan was $98,000 and $161,000 for the three and six months ended June 30, 2018; and $92,000 and $204,000 for the three and six months ended June 30, 2017, respectively. The following table summarizes the changes in the Company’s non-vested restricted stock awards for the six months ended June 30, 2018: Six Months Ended June 30, 2018 Number of Shares Weighted Average Outstanding, beginning of period 76,104 $ 20.61 Granted 8,987 48.99 Forfeited - - Vested (16,321 ) 35.06 Outstanding at end of period 68,770 $ 23.61 The total fair value of shares vested was $742,000 during the six months ended June 30, 2018, respectively. Performance Based Stock Awards During the six months ended June 30, 2018, the Company established a long term incentive award program under the 2009 Equity Incentive Plan. For each award, threshold target Performance Restricted Share Units (“PRSUs”) are eligible to be earned over a three-year performance period based on the Company’s relative performance on certain measurement goals that were established at the onset of the performance period. These awards were accounted for in accordance with on guidance prescribed in ASC Topic 718, Compensation – Stock Compensation. For the six months ended Weighted average service inception date fair value of award shares $ 4,125,300 Minimum aggregate share payout 12,000 Maximum aggregate share payout 90,000 Likely aggregate share payout 90,000 Compensation expense recognized $ 561,412 Total compensation cost that has been charged against income for this plan was $382,000 and $561,000 for the three and six months ended June 30, 2018, respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 8 - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. The Company did not have any liabilities that were measured at fair value at June 30, 2018 and December 31, 2017. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as certain impaired loans and goodwill. These non-recurring fair value adjustments generally involve the write-down of individual assets due to impairment losses. Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Assets and Liabilities Measured on a Recurring Basis Assets measured on a recurring basis are limited to the Bank’s available-for-sale securities (“AFS”) portfolio. The AFS portfolio is carried at estimated fair value with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income or loss in shareholders’ equity. The fair values for substantially all of these securities are obtained monthly from an independent nationally recognized pricing service. On a monthly basis, the Bank assesses the reasonableness of the fair values obtained by reference to a second independent nationally recognized pricing service. Based on the nature of these securities, the Bank’s independent pricing service provides prices which are categorized as Level 2 since quoted prices in active markets for identical assets are generally not available for the majority of securities in the Bank’s portfolio. Various modeling techniques are used to determine pricing for the Bank’s mortgage-backed securities, including option pricing and discounted cash flow models. The inputs to these models include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. On an annual basis, the Bank obtains the models, inputs and assumptions utilized by its pricing service and reviews them for reasonableness. The Bank also owns equity securities with a carrying value of $2.1 million at both June 30, 2018 and December 31, 2017, for which fair values are obtained from quoted market prices in active markets and, as such, are classified as Level 1. Assets measured at fair value on a recurring basis are summarized below (dollars in thousands): 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) At June 30, 2018 Residential mortgage-backed securities $ 23,464 $ - $ 23,464 $ - Residential collateralized mortgage obligation 2,351 - 2,351 - Municipal bond 1,093 - 1,093 - CRA Mutual Fund 2,081 2,081 - - At December 31, 2017 Residential mortgage-backed securities $ 24,684 $ - $ 24,684 $ - Residential collateralized mortgage obligation 2,706 - 2,706 - Commercial collateralized mortgage obligations 1,550 - 1,550 - Municipal bond 1,109 - 1,109 - CRA Mutual Fund 2,108 2,108 - - There were no transfers between Level 1 and Level 2 during 2018. There were no assets measured at fair value on a non-recurring basis at June 30, 2018 and December 31, 2017. Carrying amount and estimated fair values of financial instruments at June 30, 2018 and December 31, 2017 were as follows (dollars in thousands): Fair Value Measurement Using: At June 30, 2018 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 Assets: Cash and due from banks $ 10,148 $ 10,148 $ - $ - $ 10,148 Overnight deposits 240,994 240,994 - - 240,994 Securities available for sale 28,989 2,081 26,908 - 28,989 Securities held to maturity 4,985 - 4,782 - 4,782 Loans, net 1,582,184 - - 1,628,843 1,628,843 Other investments - - - - - FRB Stock 7,223 N/A N/A N/A N/A FHLB Stock 4,047 N/A N/A N/A N/A SBA Loan Fund 5,000 N/A N/A N/A N/A Disability Opportunity Fund 500 - - 500 500 Accrued interest receivable 4,449 30 112 4,307 4,449 Liabilities: Deposits without stated maturities $ 1,450,766 $ 1,450,766 $ - $ - $ 1,450,766 Deposits with stated maturities 89,716 - 88,954 - 88,954 Federal Home Loan Bank of New York advances 63,000 - 62,979 - 62,979 Trust preferred securities payable 20,620 - - 20,001 20,001 Subordinated debt, net of issuance cost 24,517 - 25,313 - 25,313 Accrued interest payable 1,019 21 787 211 1,019 Fair Value Measurement Using: At December 31, 2017 Carrying Amount Quoted Prices in Active Markets for Identica l Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Assets: Cash and due from banks $ 8,790 $ 8,790 $ - $ - $ 8,790 Overnight deposits 254,441 254,441 - - 254,441 Securities available for sale 32,157 2,108 30,049 - 32,157 Securities held to maturity 5,428 - 5,330 - 5,330 Loans, net 1,405,009 - - 1,410,860 1,410,860 Other investments FRB Stock 3,911 N/A N/A N/A N/A FHLB Stock 2,766 N/A N/A N/A N/A SBA Loan Fund 5,000 N/A N/A N/A N/A Certificates of deposit 2,000 2,000 - - 2,000 Accrued interest receivable 4,421 11 116 4,294 4,421 Liabilities: Deposits without stated maturities $ 1,324,110 $ 1,324,110 $ - $ - 1,324,110 Deposits with stated maturities 80,245 - 80,079 - 80,079 Borrowed funds 42,198 - 42,188 - 42,188 Trust preferred securities payable 20,620 - - 19,997 19,997 Subordinated debt, net of issuance cost 24,489 - 25,500 - 25,500 Accrued interest payable 749 27 258 464 749 The methods and assumptions used to estimate fair value are described as follows: Cash and Due from Banks: Securities Available for Sale and Held to Maturity: Other Investments: Loans: Deposits without stated maturities: Deposits with stated maturities Borrowed funds: Trust Preferred Securities: Subordinated Debt, net of debt issuance costs: Accrued Interest Receivable and Payable: Stock based compensation liability: Off-Balance-Sheet Liabilities: 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) | 6 Months Ended |
Jun. 30, 2018 | |
AOCI Attributable to Parent [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 9 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents changes in Accumulated Other Comprehensive Income (Loss), net of tax, for the three and six months ended June 30, 2018 and 2017 (dollars in thousands): Three months ended Six months ended 2018 2017 2018 2017 Beginning balance $ (528 ) $ (89 ) $ (206 ) $ (165 ) Net change in other comprehensive income (loss) before reclassification (166 ) 28 (588 ) 161 Amounts reclassified from accumulated other comprehensive income 37 - 37 - Tax effect 40 (12 ) 140 (69 ) Net current period other comprehensive loss (89 ) 16 (411 ) 92 Ending balance $ (617 ) $ (73 ) $ (617 ) $ (73 ) |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 6 Months Ended |
Jun. 30, 2018 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | NOTE 10 - 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 at June 30, 2018 and December 31, 2017 (dollars in thousands): At June 30, 2018 At December 31, 2017 Fixed Rate Variable Fixed Rate Variable Undrawn lines of credit $ 36,193 $ 104,844 $ 39,651 $ 76,008 Letters of credit 24,915 - 23,741 - $ 61,108 $ 104,844 $ 63,392 $ 76,008 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 June 30, 2018, the Bank’s fixed rate loan commitments are to make loans with interest rates ranging from 3.0% to 5.7% and maturities of one year or more. At December 31, 2017, the Bank’s fixed rate loan commitments had interest rates ranging from 3.5% to 9.5% and maturities of one year or more. 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 $24.9 million and $23.7 million included above as of June 30, 2018 and December 31, 2017, respectively, for which the Bank has pledged interest-bearing accounts of $0.9 million and $1.7 million as of June 30, 2018 and December 31, 2017, respectively. The stand-by letters of credit mature within one year. |
SUBORDINATED DEBT
SUBORDINATED DEBT | 6 Months Ended |
Jun. 30, 2018 | |
Debt and Capital Lease Obligations [Abstract] | |
SUBORDINATED DEBT | NOTE 11 – SUBORDINATED DEBT On March 8, 2017, the Company completed 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 interest is paid semiannually on March 15 and September 15 of each year through 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. The Company 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. |
SUMMARY OF RECENT ACCOUNTING 20
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
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. 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. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The Unaudited 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. Certain prior-year amounts have been reclassified to conform to current year’s presentation. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. The unaudited consolidated financial statements presented in this report should be read in conjunction with the Company’s audited consolidated financial statements and notes to audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS Pursuant to the Jumpstart Our Business Startups Act (“JOBS Act”), an 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 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. In January 2016, the FASB issued ASU 2016-01, an amendment to Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10). The objectives of the ASU are to: (1) require equity investments to be measured at fair value, with changes in fair value recognized in net income, (2) simplify the impairment assessment of equity investments without readily determinable fair values, (3) eliminate the requirement to disclose methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost on the balance sheet, (4) require the use of the exit price notion when measuring the fair value of financial instruments, and (5) clarify the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Liabilities, an amendment to ASU 2016-01. The amendments clarify certain aspects of the guidance issued in ASU 2016-01. These ASUs will be effective for the Company on January 1, 2019. The Company has evaluated the impact of ASU 2016-01 and 2018-03 and has concluded that they will not have a material impact on its consolidated financial statements. 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 impacts of ASU 2016-02 on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objectives of the ASU are to simplify the accounting for share-based payment transactions, including the income tax consequences, the treatment of forfeitures, and the classification on the statement of cash flows. The Company elected to adopt ASU 2016-09 in the second quarter of 2018 and, in accordance with the guidance, has adopted the guidance as of the beginning of the fiscal year. Under the ASU, the tax effects of awards are treated as discrete items in the reporting period in which they occur. Therefore, the tax effect of awards is not spread over the entire year through the use of the annual effective tax rate, but instead is recorded entirely in the period in which the tax deduction arose. The relevant information on restricted stock that vests and stock options that are excised is used to compare the cumulative book expense to the tax deduction. With this information, the discrete item is calculated and recorded. The Company prospectively applied the amendment in this guidance requiring recognition of excess tax benefits and deficits in the income statement resulting in a $62,000 income tax benefit recognized in the six months ended June 30, 2018, resulting in an effective tax rate of 31.1%. The amendments in the guidance that require application using a modified retrospective transition method did not have an impact on the Company’s retained earnings as there were no unrecognized tax benefits that existed prior to April 1, 2018 nor were there forfeiture estimates that were that impacted compensation expense. 2018 will be the first year of recording any excess tax deduction and these will be reported as a discrete item in the quarter in which restricted stocks/stock options will vest/be exercised. 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 15, 2020. Management has established a committee to evaluate the impact of ASU 2016-13 on the Company’s financial statements. Management has also engaged a third party vendor for a software solution, which is expected to be implemented during 2018 to begin testing models and comparing results with current incurred loss estimates. Since the Bank has been using this vendor for credit analysis and stress testing solutions for over five years, sufficient loan level information should be readily available to test the Historical Loss and Migration Analysis models, among other potential modeling solutions. The Company expects to recognize a one-time cumulative adjustment to the allowance for loan 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 that 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 that ASU 2017-08 will not have a significant impact on its consolidated financial statements. On February 14, 2018 the FASB issued final guidance in the form of Accounting Standards Update No. 2018-02, which permits - but does not require - companies to reclassify stranded tax effects caused by 2017 tax reform from accumulated other comprehensive income to retained earnings. Additionally, the ASU requires new disclosures by all companies, whether they opt to do the reclassification or not. Management expects that ASU 2018-02 will not have a significant impact on its consolidated financial statements. The amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2018; however, early adoption is permitted. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
INVESTMENT SECURITIES [Abstract] | |
Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity | At June 30, 2018 Amortized Cost Gross Unrecognized Gross Unrecognized Fair Value Available for sale Residential mortgage-backed securities $ 24,133 $ 3 $ (672 ) $ 23,464 Residential collateralized mortgage obligations 2,485 - (134 ) 2,351 Municipal bond 1,086 7 - 1,093 CRA mutual fund 2,183 - (102 ) 2,081 Total securities available for sale $ 29,887 $ 10 $ (908 ) $ 28,989 Held to maturity Residential mortgage-backed securities $ 4,960 - $ (203 ) $ 4,757 Foreign government securities 25 - - 25 Total securities held to maturity $ 4,985 $ - $ (203 ) $ 4,782 At December 31, 2017 Amortized Cost Gross Gross Fair Value Available for sale Residential mortgage-backed securities $ 24,856 $ 70 $ (242 ) $ 24,684 Residential collateralized mortgage obligations 2,809 - (103 ) 2,706 Commercial collateralized mortgage obligations 1,581 - (31 ) 1,550 Municipal bond 1,098 11 - 1,109 CRA mutual fund 2,160 - (52 ) 2,108 Total securities available for sale $ 32,504 $ 81 $ (428 ) $ 32,157 Held to maturity Residential mortgage-backed securities $ 5,403 $ - $ (98 ) $ 5,305 Foreign government securities 25 - - 25 Total securities held to maturity $ 5,428 $ - $ (98 ) $ 5,330 |
Schedule of Realized Gain (Loss) on Sales and Calls of Securities | Three and six months ended June 30, 2018 2017 Proceeds $ 1,500 $ - Gross gains $ - $ - Gross losses $ (37 ) $ - Tax impact $ 11 $ - |
Schedule of amortized cost and fair value of debt securities classified by contractual maturity | Held to Maturity Available for Sale At June 30, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 25 $ 25 $ - $ - One to five years - - - - Five to ten years - - - - Due after ten years - - 1,086 1,093 Total $ 25 $ 25 $ 1,086 $ 1,093 Residential mortgage-backed securities $ 4,960 $ 4,757 $ 24,133 $ 23,464 Residential collateralized mortgage obligations - - 2,485 2,351 CRA mutual fund - - 2,183 2,081 Total Securities $ 4,985 $ 4,782 $ 29,887 $ 28,989 Held to Maturity Available for Sale At December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ - $ - $ - $ - One to five years 25 25 - - Five to ten years - - - - Due after ten years - - 1,098 1,109 Total $ 25 $ 25 $ 1,098 $ 1,109 Residential mortgage-backed securities $ 5,403 $ 5,305 $ 24,856 $ 24,684 Residential collateralized mortgage obligations - - 2,809 2,706 Commercial collateralized mortgage obligations - - 1,581 1,550 CRA mutual fund - - 2,160 2,108 Total Securities $ 5,428 $ 5,330 $ 32,504 $ 32,157 |
Schedule of securities with unrealized/unrecognized losses | Less than 12 Months 12 months or more Total At June 30, 2018 Estimated Unrealized/ Unrecognized Estimated Unrealized/ Unrecognized Estimated Unrealized/ Unrecognized Residential mortgage-backed securities $ 15,054 $ (308 ) $ 8,148 $ (364 ) $ 23,202 $ (672 ) Residential collateralized mortgage obligations - - 2,351 (134 ) 2,351 (134 ) CRA mutual fund - - 2081 (102 ) 2,081 (102 ) Total securities available for sale $ 15,054 $ (308 ) $ 12,580 $ (600 ) $ 27,634 $ (908 ) Residential mortgage-backed securities $ 2,909 $ (95 ) $ 1,848 $ (108 ) $ 4,757 $ (203 ) Total held to maturity $ 2,909 $ (95 ) $ 1,848 $ (108 ) $ 4,757 $ (203 ) Less than 12 Months 12 months or more Total At December 31, 2017 Estimated Unrealized/ Unrecognized Estimated Unrealized/ Unrecognized Estimated Unrealized/ Unrecognized Residential mortgage-backed securities $ 9,194 $ (85 ) $ 7,738 $ (157 ) $ 16,932 $ (242 ) Residential collateralized mortgage obligations - - 2,706 (103 ) 2,706 (103 ) Commercial collateralized mortgage obligations - - 1,550 (31 ) 1,550 (31 ) CRA mutual fund - - 2,108 (52 ) 2,108 (52 ) Total securities available for sale $ 9,194 $ (85 ) $ 14,102 $ (343 ) $ 23,296 $ (428 ) Residential mortgage-backed securities $ 3,260 $ (33 ) $ 2,045 $ (65 ) $ 5,305 $ (98 ) Total held to maturity $ 3,260 $ (33 ) $ 2,045 $ (65 ) $ 5,305 $ (98 ) |
LOANS AND ALLOWANCE FOR LOAN 22
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of loans, net of deferred costs and fees | At June 30, 2018 At December 31, 2017 Real estate Commercial $ 857,071 $ 783,745 Construction 45,974 36,960 Multifamily 233,474 190,097 One-to-four family 23,929 25,568 Total real estate loans 1,160,448 1,036,370 Commercial and industrial 354,932 340,001 Consumer 86,277 44,595 Total loans 1,601,657 1,420,966 Deferred fees (2,010 ) (1,070 ) Loans, net of deferred fees and unamortized costs 1,599,647 1,419,896 Allowance for loan losses (17,463 ) (14,887 ) Balance at the end of the period $ 1,582,184 $ 1,405,009 |
Schedule of recorded investment in non-accrual loans | At June 30, 2018 At December 31, 2017 Commercial real estate - $ 787 Commercial & industrial - - One-to-four family - 2,447 Consumer 192 155 Total $ 192 $ 3,389 |
Schedule of aging of the recorded investment in past due loans | At June 30, 2018 30-59 Days 60-89 Days Greater than 90 days Total Past Due Loans not Past Due Total Commercial real estate $ 96 $ - $ - $ 96 $ 856,975 $ 857,071 Commercial & industrial 114 73 - 187 354,745 354,932 Construction - - - - 45,974 45,974 Multifamily - - - - 233,474 233,474 One-to-four family - - - - 23,929 23,929 Consumer 39 - 142 181 86,096 86,277 Total $ 249 $ 73 $ 142 $ 464 $ 1,601,193 $ 1,601,657 At December 31, 2017 30-59 60-89 Greater Total Past Loans not Total Commercial real estate $ 836 $ - $ 787 $ 1,623 $ 782,122 $ 783,745 Commercial & industrial 85 142 - 227 339,774 340,001 Construction - - - - 36,960 36,960 Multifamily - - - - 190,097 190,097 One-to-four family - - - - 25,568 25,568 Consumer 149 21 155 325 44,270 44,595 Total $ 1,070 $ 163 $ 942 $ 2,175 $ 1,418,791 $ 1,420,966 |
Schedule of risk category of loans by class of loans | At June 30, 2018 Pass Special Mention Substandard Doubtful Total Commercial real estate $ 855,536 $ 392 $ 1,143 $ - $ 857,071 Commercial & industrial 347,278 7,654 - - 354,932 Construction 45,974 - - - 45,974 Multifamily 233,474 - - - 233,474 Total $ 1,482,262 $ 8,046 $ 1,143 $ - $ 1,491,451 At December 31, 2017 Pass Special Substandard Doubtful Total Commercial real estate $ 777,410 $ 4,369 $ 1,966 $ - $ 783,745 Commercial & industrial 331,775 8,226 - - 340,001 Construction 36,960 - - - 36,960 Multifamily 190,097 - - - 190,097 Total $ 1,336,242 $ 12,595 $ 1,966 $ - $ 1,350,803 |
Schedule of recorded investment based on performance status | At June 30, 2018 Performing Non-Performing Total One-to-four family $ 23,929 $ - $ 23,929 Consumer 86,085 192 86,277 Total $ 110,014 $ 192 $ 110,206 At December 31, 2017 Performing Non-Performing Total One-to-four family $ 23,121 $ 2,447 $ 25,568 Consumer 44,440 155 44,595 Total $ 67,561 $ 2,602 $ 70,163 |
Schedule of activity in the allowance for loan losses by segment | Three months ended Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 7,800 $ 5,784 $ 503 $ 1,210 $ 383 $ 580 16,260 Provision/(credit) for loan losses 339 269 163 347 (3 ) 155 1,270 Loans charged-off - - - - - (67 ) (67 ) Recoveries - - - - - - - Total ending allowance balance $ 8,139 $ 6,053 $ 666 $ 1,557 $ 380 $ 668 $ 17,463 Three months ended Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 5,853 $ 4,963 $ 502 $ 687 $ 105 $ 126 12,236 Provision for loan losses 605 713 55 255 (3 ) 165 1,790 Loans charged-off - (88 ) - - - (29 ) (117 ) Recoveries - - - - - - - Total ending allowance balance $ 6,458 $ 5,588 $ 557 $ 942 $ 102 $ 262 $ 13,909 Six months ended June Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 7,136 $ 5,578 $ 519 $ 1,156 $ 138 $ 360 $ 14,887 Provision/(credit) for loan losses 950 546 147 401 242 461 2,747 Loans charged-off - (71 ) - - - (153 ) (224 ) Recoveries 53 - - - - - 53 Total ending allowance balance $ 8,139 $ 6,053 $ 666 $ 1,557 $ 380 $ 668 $ 17,463 Six months ended June Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Beginning balance $ 5,206 $ 5,364 $ 409 $ 620 $ 109 $ 107 11,815 Provision/(credit) for loan losses 1,252 444 148 322 (7 ) 201 2,360 Loans charged-off - (220 ) - - - (46 ) (266 ) Recoveries - - - - - - - Total ending allowance balance $ 6,458 $ 5,588 $ 557 $ 942 $ 102 $ 262 $ 13,909 |
Schedule of allowance for loan losses and the recorded investment in loans | At June 30, 2018 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Individually evaluated for impairment $ - $ - $ - $ - $ - $ 96 $ 96 Collectively evaluated for impairment 8,139 6,053 666 1,557 380 572 17,367 Total ending allowance balance $ 8,139 $ 6,053 $ 666 $ 1,557 $ 380 $ 668 $ 17,463 Loans: Individually evaluated for impairment $ 1,535 $ - $ - $ - $ 1,099 $ 192 $ 2,826 Collectively evaluated for impairment 855,536 354,932 45,974 233,474 22,830 86,085 1,598,831 Total ending loan balance $ 857,071 $ 354,932 $ 45,974 $ 233,474 $ 23,929 $ 86,277 $ 1,601,657 At December 31, 2017 Commercial Commercial Construction Multi One-to-four Consumer Total Allowance for loan losses: Individually evaluated for impairment $ - $ - $ - $ - $ 9 $ 77 $ 86 Collectively evaluated for impairment 7,136 5,578 519 1,156 129 283 $ 14,801 Total ending allowance balance $ 7,136 $ 5,578 $ 519 $ 1,156 $ 138 $ 360 $ 14,887 Loans: Individually evaluated for impairment $ 2,368 $ - $ - $ - $ 3,566 $ 155 $ 6,089 Collectively evaluated for impairment 781,377 340,001 36,960 190,097 22,002 44,440 1,414,877 Total ending loan balance $ 783,745 $ 340,001 $ 36,960 $ 190,097 $ 25,568 $ 44,595 $ 1,420,966 |
Schedule of impaired by class of loans | At June 30, 2018 Unpaid Principal Recorded Investment Allowance for Loan With an allowance recorded: One-to-four family $ - $ - $ - Consumer 210 192 96 Total $ 210 $ 192 $ 96 Without an allowance recorded: Commercial real estate $ 2,004 $ 1,535 $ - One-to-four family 1,376 1,099 - Total $ 3,380 $ 2,634 $ - At December 31, 2017 Unpaid Principal Recorded Investment Allowance for Loan With an allowance recorded: One-to-four family $ 686 $ 556 $ 9 Consumer 155 155 77 Total $ 841 $ 711 $ 86 Without an allowance recorded: Commercial real estate $ 2,890 $ 2,368 $ - One-to-four family 3,157 3,010 - Total $ 6,047 $ 5,378 $ - Three months ended June 30, 2018 Average Recorded Interest Income With an allowance recorded: One-to-four family $ - $ - Consumer 138 0 Total $ 138 $ - Without an allowance recorded: Commercial real estate $ 1,540 $ 16 One-to-four family 1,104 $ 14 Total $ 2,644 $ 30 Three months ended June 30, 2017 Average Recorded Interest Income With an allowance recorded: One-to-four family $ 847 $ 9 Commercial and industrial 3,660 - Consumer 48 0 Total $ 4,555 $ 9 Without an allowance recorded: Commercial real estate $ 6,331 $ 68 Commercial and industrial 1,160 12 One-to-four family 283 26 Total $ 7,774 $ 106 Six months ended June 30, 2018 Average Recorded Interest Income With an allowance recorded: One-to-four family $ 185 $ - Consumer 144 2 Total $ 329 $ 2 Without an allowance recorded: Commercial real estate $ 1,816 $ 62 One-to-four family 1,373 28 Total $ 3,189 $ 90 Six months ended June 30, 2017 Average Recorded Investment Interest Income Recognized With an allowance recorded: One-to-four family $ 753 $ 18 Commercial and industrial 3,660 - Consumer 32 1 Total $ 4,445 $ 19 Without an allowance recorded: Commercial real estate $ 6,056 $ 112 Commercial and industrial 1,192 26 One-to-four family 377 - Total $ 7,625 $ 138 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Basic Net income per consolidated statements of operations $ 5,865 $ 2,651 $ 12,156 $ 5,201 Less: Earnings allocated to participating securities (49 ) (51 ) (102 ) (100 ) Net income available to common stockholders $ 5,816 $ 2,600 $ 12,054 $ 5,101 Weighted average common shares outstanding including participating securities 8,198,257 4,629,004 8,195,542 4,629,004 Less: Weighted average participating securities (68,770 ) (89,079 ) (68,770 ) (89,079 ) Weighted average common shares outstanding 8,129,487 4,539,925 8,126,772 4,539,925 Basic earnings per common share $ 0.72 $ 0.57 $ 1.48 $ 1.12 Diluted Net income allocated to common stockholders $ 5,816 $ 2,600 $ 12,054 $ 5,101 Weighted average common shares outstanding for basic earnings per common share 8,129,487 4,539,925 8,126,772 4,539,925 Add: Dilutive effects of assumed exercise of stock options 160,561 33,000 156,834 33,000 Average shares and dilutive potential common shares 8,290,048 4,572,925 8,283,606 4,572,925 Dilutive earnings per common share $ 0.70 $ 0.57 $ 1.46 $ 1.12 |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
STOCK COMPENSATION PLAN [Abstract] | |
Schedule of status of the stock option plan | Six Months Ended June 30, 2018 Number of Weighted Average Outstanding, beginning of period 271,500 19.79 Granted - - Exercised (3,000 ) 30.00 Cancelled/forfeited - - Outstanding, end of period 268,500 $ 19.68 Options vested and exercisable at end of period 268,500 $ 19.68 Weighted average remaining contractual life (years) 5.13 |
Schedule of summary of stock options outstanding | Options Outstanding Range of Average Number Outstanding at Weighted Average Weighted Average $10 – 20 231,000 5.89 $ 18.00 $21 – 30 37,500 0.45 $ 30.00 $10 – 30 268,500 5.13 $ 19.68 |
Schedule of non-vested restricted stock awards | Six Months Ended June 30, 2018 Number of Shares Weighted Average Outstanding, beginning of period 76,104 $ 20.61 Granted 8,987 48.99 Forfeited - - Vested (16,321 ) 35.06 Outstanding at end of period 68,770 $ 23.61 |
Schedule of share-based compensation performance restricted stock units | For the six months ended Weighted average service inception date fair value of award shares $ 4,125,300 Minimum aggregate share payout 12,000 Maximum aggregate share payout 90,000 Likely aggregate share payout 90,000 Compensation expense recognized $ 561,412 |
FAIR VALUE OF FINANCIAL INSTR25
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair Value on recurring Basis | 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) At June 30, 2018 Residential mortgage-backed securities $ 23,464 $ - $ 23,464 $ - Residential collateralized mortgage obligation 2,351 - 2,351 - Municipal bond 1,093 - 1,093 - CRA Mutual Fund 2,081 2,081 - - At December 31, 2017 Residential mortgage-backed securities $ 24,684 $ - $ 24,684 $ - Residential collateralized mortgage obligation 2,706 - 2,706 - Commercial collateralized mortgage obligations 1,550 - 1,550 - Municipal bond 1,109 - 1,109 - CRA Mutual Fund 2,108 2,108 - - |
Schedule of carrying amount and estimated fair values of financial instruments | Fair Value Measurement Using: At June 30, 2018 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 Assets: Cash and due from banks $ 10,148 $ 10,148 $ - $ - $ 10,148 Overnight deposits 240,994 240,994 - - 240,994 Securities available for sale 28,989 2,081 26,908 - 28,989 Securities held to maturity 4,985 - 4,782 - 4,782 Loans, net 1,582,184 - - 1,628,843 1,628,843 Other investments - - - - - FRB Stock 7,223 N/A N/A N/A N/A FHLB Stock 4,047 N/A N/A N/A N/A SBA Loan Fund 5,000 N/A N/A N/A N/A Disability Opportunity Fund 500 - - 500 500 Accrued interest receivable 4,449 30 112 4,307 4,449 Liabilities: Deposits without stated maturities $ 1,450,766 $ 1,450,766 $ - $ - $ 1,450,766 Deposits with stated maturities 89,716 - 88,954 - 88,954 Federal Home Loan Bank of New York advances 63,000 - 62,979 - 62,979 Trust preferred securities payable 20,620 - - 20,001 20,001 Subordinated debt, net of issuance cost 24,517 - 25,313 - 25,313 Accrued interest payable 1,019 21 787 211 1,019 Fair Value Measurement Using: At December 31, 2017 Carrying Amount Quoted Prices in Active Markets for Identica l Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Assets: Cash and due from banks $ 8,790 $ 8,790 $ - $ - $ 8,790 Overnight deposits 254,441 254,441 - - 254,441 Securities available for sale 32,157 2,108 30,049 - 32,157 Securities held to maturity 5,428 - 5,330 - 5,330 Loans, net 1,405,009 - - 1,410,860 1,410,860 Other investments FRB Stock 3,911 N/A N/A N/A N/A FHLB Stock 2,766 N/A N/A N/A N/A SBA Loan Fund 5,000 N/A N/A N/A N/A Certificates of deposit 2,000 2,000 - - 2,000 Accrued interest receivable 4,421 11 116 4,294 4,421 Liabilities: Deposits without stated maturities $ 1,324,110 $ 1,324,110 $ - $ - 1,324,110 Deposits with stated maturities 80,245 - 80,079 - 80,079 Borrowed funds 42,198 - 42,188 - 42,188 Trust preferred securities payable 20,620 - - 19,997 19,997 Subordinated debt, net of issuance cost 24,489 - 25,500 - 25,500 Accrued interest payable 749 27 258 464 749 |
ACCUMULATED OTHER COMPREHENSI26
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
AOCI Attributable to Parent [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss), net of tax | Three months ended Six months ended 2018 2017 2018 2017 Beginning balance $ (528 ) $ (89 ) $ (206 ) $ (165 ) Net change in other comprehensive income (loss) before reclassification (166 ) 28 (588 ) 161 Amounts reclassified from accumulated other comprehensive income 37 - 37 - Tax effect 40 (12 ) 140 (69 ) Net current period other comprehensive loss (89 ) 16 (411 ) 92 Ending balance $ (617 ) $ (73 ) $ (617 ) $ (73 ) |
FINANCIAL INSTRUMENTS WITH OF27
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK [Abstract] | |
Schedule of off-balance-sheet financial instruments | At June 30, 2018 At December 31, 2017 Fixed Rate Variable Fixed Rate Variable Undrawn lines of credit $ 36,193 $ 104,844 $ 39,651 $ 76,008 Letters of credit 24,915 - 23,741 - $ 61,108 $ 104,844 $ 63,392 $ 76,008 |
SUMMARY OF RECENT ACCOUNTING 28
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Detail Textuals) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Income tax benefit recognized | $ 62,000 |
Effective tax rate | 31.10% |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of amortized cost and fair value of securities available-for-sale (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 29,887 | $ 32,504 |
Gross Unrealized/Unrecognized Gains | 10 | 81 |
Gross Unrealized/Unrecognized Losses | (908) | (428) |
Fair Value | 28,989 | 32,157 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 24,133 | 24,856 |
Gross Unrealized/Unrecognized Gains | 3 | 70 |
Gross Unrealized/Unrecognized Losses | (672) | (242) |
Fair Value | 23,464 | 24,684 |
Residential collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,485 | 2,809 |
Gross Unrealized/Unrecognized Gains | 0 | 0 |
Gross Unrealized/Unrecognized Losses | (134) | (103) |
Fair Value | 2,351 | 2,706 |
Commercial collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,581 | |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (31) | |
Fair Value | 1,550 | |
Municipal bond | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,086 | 1,098 |
Gross Unrealized/Unrecognized Gains | 7 | 11 |
Gross Unrealized/Unrecognized Losses | 0 | 0 |
Fair Value | 1,093 | 1,109 |
CRA mutual fund | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,183 | 2,160 |
Gross Unrealized/Unrecognized Gains | 0 | 0 |
Gross Unrealized/Unrecognized Losses | (102) | (52) |
Fair Value | $ 2,081 | $ 2,108 |
INVESTMENT SECURITIES - Sched30
INVESTMENT SECURITIES - Schedule of amortized cost and fair value of securities held-to-maturity (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 4,985 | $ 5,428 |
Gross Unrealized/Unrecognized Gains | 0 | 0 |
Gross Unrealized/Unrecognized Losses | (203) | (98) |
Total Securities | 4,782 | 5,330 |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 4,960 | 5,403 |
Gross Unrealized/Unrecognized Gains | 0 | 0 |
Gross Unrealized/Unrecognized Losses | (203) | (98) |
Total Securities | 4,757 | 5,305 |
Foreign government securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 25 | 25 |
Gross Unrealized/Unrecognized Gains | 0 | 0 |
Gross Unrealized/Unrecognized Losses | 0 | 0 |
Total Securities | $ 25 | $ 25 |
INVESTMENT SECURITIES - Sched31
INVESTMENT SECURITIES - Schedule of proceeds from sales and calls of securities and associated gains and losses (Details2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
INVESTMENT SECURITIES [Abstract] | ||||
Proceeds | $ 1,500 | $ 0 | $ 1,463 | |
Gross gains | 0 | 0 | 0 | $ 0 |
Gross losses | (37) | 0 | (37) | 0 |
Tax Impact | $ 11 | $ 0 | $ 11 | $ 0 |
INVESTMENT SECURITIES - Sched32
INVESTMENT SECURITIES - Schedule of contractual maturity of Held to Maturity (Details 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Held to Maturity, Amortized Cost | ||
Within one year | $ 25 | $ 0 |
One to five years | 0 | 25 |
Five to ten years | 0 | 0 |
Due after ten years | 0 | 0 |
Amortized Cost, total | 25 | 25 |
Held to Maturity, Amortized Cost | 4,985 | 5,428 |
Held to Maturity, Fair Value | ||
Within one year | 25 | 0 |
One to five years | 0 | 25 |
Five to ten years | 0 | 0 |
Due after ten years | 0 | 0 |
Fair Value, total | 25 | 25 |
Held to Maturity, Fair Value | 4,782 | 5,330 |
Residential mortgage-backed securities | ||
Held to Maturity, Amortized Cost | ||
Held to Maturity, Amortized Cost | 4,960 | 5,403 |
Held to Maturity, Fair Value | ||
Held to Maturity, Fair Value | 4,757 | 5,305 |
Residential collateralized mortgage obligations | ||
Held to Maturity, Amortized Cost | ||
Held to Maturity, Amortized Cost | 0 | 0 |
Held to Maturity, Fair Value | ||
Held to Maturity, Fair Value | 0 | 0 |
Commercial collateralized mortgage obligations | ||
Held to Maturity, Amortized Cost | ||
Held to Maturity, Amortized Cost | 0 | |
Held to Maturity, Fair Value | ||
Held to Maturity, Fair Value | 0 | |
CRA mutual fund | ||
Held to Maturity, Amortized Cost | ||
Held to Maturity, Amortized Cost | 0 | 0 |
Held to Maturity, Fair Value | ||
Held to Maturity, Fair Value | $ 0 | $ 0 |
INVESTMENT SECURITIES - Sched33
INVESTMENT SECURITIES - Schedule of contractual maturity of Available for Sale (Details 4) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available for Sale, Amortized Cost | ||
Within one year | $ 0 | $ 0 |
One to five years | 0 | 0 |
Five to ten years | 0 | 0 |
Due after ten years | 1,086 | 1,098 |
Amortized Cost, total | 1,086 | 1,098 |
Available for Sale, Amortized Cost | 29,887 | 32,504 |
Available for Sale, Fair Value | ||
Within one year | 0 | 0 |
One to five years | 0 | 0 |
Five to ten years | 0 | 0 |
Due after ten years | 1,093 | 1,109 |
Fair Value, total | 1,093 | 1,109 |
Available for Sale, Fair Value | 28,989 | 32,157 |
Residential mortgage-backed securities | ||
Available for Sale, Amortized Cost | ||
Available for Sale, Amortized Cost | 24,133 | 24,856 |
Available for Sale, Fair Value | ||
Available for Sale, Fair Value | 23,464 | 24,684 |
Residential collateralized mortgage obligations | ||
Available for Sale, Amortized Cost | ||
Available for Sale, Amortized Cost | 2,485 | 2,809 |
Available for Sale, Fair Value | ||
Available for Sale, Fair Value | 2,351 | 2,706 |
Commercial collateralized mortgage obligations | ||
Available for Sale, Amortized Cost | ||
Available for Sale, Amortized Cost | 1,581 | |
Available for Sale, Fair Value | ||
Available for Sale, Fair Value | 1,550 | |
CRA mutual fund | ||
Available for Sale, Amortized Cost | ||
Available for Sale, Amortized Cost | 2,183 | 2,160 |
Available for Sale, Fair Value | ||
Available for Sale, Fair Value | $ 2,081 | $ 2,108 |
INVESTMENT SECURITIES - Sched34
INVESTMENT SECURITIES - Schedule of unrealized/unrecognized loss position of securities available-for-sale (Details 5) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-sale Securities [Abstract] | ||
Less than 12 Months, Estimated Fair Value | $ 15,054 | $ 9,194 |
Less than 12 Months, Unrealized/Unrecognized Losses | (308) | (85) |
12 months or more, Estimated Fair Value | 12,580 | 14,102 |
12 months or more, Unrealized/Unrecognized Losses | (600) | (343) |
Total, Estimated Fair Value | 27,634 | 23,296 |
Total, Unrealized/Unrecognized Losses | (908) | (428) |
Residential mortgage-backed securities | ||
Available-for-sale Securities [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 15,054 | 9,194 |
Less than 12 Months, Unrealized/Unrecognized Losses | (308) | (85) |
12 months or more, Estimated Fair Value | 8,148 | 7,738 |
12 months or more, Unrealized/Unrecognized Losses | (364) | (157) |
Total, Estimated Fair Value | 23,202 | 16,932 |
Total, Unrealized/Unrecognized Losses | (672) | (242) |
Residential collateralized mortgage obligations | ||
Available-for-sale Securities [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 0 | 0 |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | 0 |
12 months or more, Estimated Fair Value | 2,351 | 2,706 |
12 months or more, Unrealized/Unrecognized Losses | (134) | (103) |
Total, Estimated Fair Value | 2,351 | 2,706 |
Total, Unrealized/Unrecognized Losses | (134) | (103) |
Commercial collateralized mortgage obligations | ||
Available-for-sale Securities [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 0 | |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | |
12 months or more, Estimated Fair Value | 1,550 | |
12 months or more, Unrealized/Unrecognized Losses | (31) | |
Total, Estimated Fair Value | 1,550 | |
Total, Unrealized/Unrecognized Losses | (31) | |
CRA mutual fund | ||
Available-for-sale Securities [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 0 | 0 |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | 0 |
12 months or more, Estimated Fair Value | 2,081 | 2,108 |
12 months or more, Unrealized/Unrecognized Losses | (102) | (52) |
Total, Estimated Fair Value | 2,081 | 2,108 |
Total, Unrealized/Unrecognized Losses | $ (102) | $ (52) |
INVESTMENT SECURITIES - Sched35
INVESTMENT SECURITIES - Schedule of unrealized/unrecognized loss position of held-to-maturity (Details 6) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Held-to-maturity Securities [Abstract] | ||
Less than 12 Months, Estimated Fair Value | $ 2,909 | $ 3,260 |
Less than 12 Months, Unrealized/Unrecognized Losses | (95) | (33) |
12 months or more, Estimated Fair Value | 1,848 | 2,045 |
12 months or more, Unrealized/Unrecognized Losses | (108) | (65) |
Total, Estimated Fair Value | 4,757 | 5,305 |
Total, Unrealized/Unrecognized Losses | (203) | (98) |
Residential mortgage-backed securities | ||
Held-to-maturity Securities [Abstract] | ||
Less than 12 Months, Estimated Fair Value | 2,909 | 3,260 |
Less than 12 Months, Unrealized/Unrecognized Losses | (95) | (33) |
12 months or more, Estimated Fair Value | 1,848 | 2,045 |
12 months or more, Unrealized/Unrecognized Losses | (108) | (65) |
Total, Estimated Fair Value | 4,757 | 5,305 |
Total, Unrealized/Unrecognized Losses | $ (203) | $ (98) |
LOANS (Schedule of Loan Receiva
LOANS (Schedule of Loan Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | $ 1,601,657 | $ 1,420,966 | ||||
Deferred fees | (2,010) | (1,070) | ||||
Loans, net of deferred fees and unamortized costs | 1,599,647 | 1,419,896 | ||||
Allowance for loan losses | (17,463) | $ (16,260) | (14,887) | $ (13,909) | $ (12,236) | $ (11,815) |
Net loans | 1,582,184 | 1,405,009 | ||||
Real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 1,160,448 | 1,036,370 | ||||
Real estate | Commercial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 857,071 | 783,745 | ||||
Allowance for loan losses | (8,139) | (7,800) | (7,136) | (6,458) | (5,853) | (5,206) |
Real estate | Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 45,974 | 36,960 | ||||
Allowance for loan losses | (666) | (503) | (519) | (557) | (502) | (409) |
Real estate | Multifamily | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 233,474 | 190,097 | ||||
Allowance for loan losses | (1,557) | (1,210) | (1,156) | (942) | (687) | (620) |
Real estate | One to four family | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 23,929 | 25,568 | ||||
Allowance for loan losses | (380) | (383) | (138) | (102) | (105) | (109) |
Commercial and industrial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 354,932 | 340,001 | ||||
Allowance for loan losses | (6,053) | (5,784) | (5,578) | (5,588) | (4,963) | (5,364) |
Consumer | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans | 86,277 | 44,595 | ||||
Allowance for loan losses | $ (668) | $ (580) | $ (360) | $ (262) | $ (126) | $ (107) |
LOANS (Schedule of Non-accrual
LOANS (Schedule of Non-accrual Loans) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 192 | $ 3,389 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 0 | 787 |
Real estate | One to four family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 0 | 2,447 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 0 | 0 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 192 | $ 155 |
LOANS (Schedule of Past Due Loa
LOANS (Schedule of Past Due Loans) (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 464 | $ 2,175 |
Loans not Past Due | 1,601,193 | 1,418,791 |
Total loans | 1,601,657 | 1,420,966 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 249 | 1,070 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 73 | 163 |
Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 142 | 942 |
Real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,160,448 | 1,036,370 |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 96 | 1,623 |
Loans not Past Due | 856,975 | 782,122 |
Total loans | 857,071 | 783,745 |
Real estate | Commercial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 96 | 836 |
Real estate | Commercial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | Commercial | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 787 |
Real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Loans not Past Due | 45,974 | 36,960 |
Total loans | 45,974 | 36,960 |
Real estate | Construction | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | Construction | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | Construction | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Loans not Past Due | 233,474 | 190,097 |
Total loans | 233,474 | 190,097 |
Real estate | Multifamily | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | Multifamily | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | Multifamily | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | One to four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Loans not Past Due | 23,929 | 25,568 |
Total loans | 23,929 | 25,568 |
Real estate | One to four family | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | One to four family | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | One to four family | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 187 | 227 |
Loans not Past Due | 354,745 | 339,774 |
Total loans | 354,932 | 340,001 |
Commercial and industrial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 114 | 85 |
Commercial and industrial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 73 | 142 |
Commercial and industrial | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 181 | 325 |
Loans not Past Due | 86,096 | 44,270 |
Total loans | 86,277 | 44,595 |
Consumer | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 39 | 149 |
Consumer | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 21 |
Consumer | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 142 | $ 155 |
LOANS (Schedule of Loans by Ris
LOANS (Schedule of Loans by Risk Category) (Details 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 1,601,657 | $ 1,420,966 |
Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,482,262 | 1,336,242 |
Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 8,046 | 12,595 |
Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,143 | 1,966 |
Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Pass rated loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,491,451 | 1,350,803 |
Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,160,448 | 1,036,370 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 857,071 | 783,745 |
Real estate | Commercial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 855,536 | 777,410 |
Real estate | Commercial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 392 | 4,369 |
Real estate | Commercial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,143 | 1,966 |
Real estate | Commercial | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 45,974 | 36,960 |
Real estate | Construction | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 45,974 | 36,960 |
Real estate | Construction | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | Construction | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | Construction | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | Multifamily | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 233,474 | 190,097 |
Real estate | Multifamily | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 233,474 | 190,097 |
Real estate | Multifamily | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | Multifamily | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate | Multifamily | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 354,932 | 340,001 |
Commercial and industrial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 347,278 | 331,775 |
Commercial and industrial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 7,654 | 8,226 |
Commercial and industrial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Commercial and industrial | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 0 | $ 0 |
LOANS (Schedule of Loans on the
LOANS (Schedule of Loans on the basis of Performance) (Details 4) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 110,206 | $ 70,163 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 110,014 | 67,561 |
Non-Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 192 | 2,602 |
Real estate | One to four family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 23,929 | 25,568 |
Real estate | One to four family | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 23,929 | 23,121 |
Real estate | One to four family | Non-Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 2,447 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 86,277 | 44,595 |
Consumer | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 86,085 | 44,440 |
Consumer | Non-Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 192 | $ 155 |
LOANS (Schedule of Activity in
LOANS (Schedule of Activity in the Allowance for Loan Losses by Segment) (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 16,260 | $ 12,236 | $ 14,887 | $ 11,815 |
Provision/(credit) for loan losses | 1,270 | 1,790 | 2,747 | 2,360 |
Loans charged-off | (67) | (117) | (224) | (266) |
Recoveries | 0 | 0 | 53 | 0 |
Total ending allowance balance | 17,463 | 13,909 | 17,463 | 13,909 |
Real estate | Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 7,800 | 5,853 | 7,136 | 5,206 |
Provision/(credit) for loan losses | 339 | 605 | 950 | 1,252 |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 53 | 0 |
Total ending allowance balance | 8,139 | 6,458 | 8,139 | 6,458 |
Real estate | Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 503 | 502 | 519 | 409 |
Provision/(credit) for loan losses | 163 | 55 | 147 | 148 |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Total ending allowance balance | 666 | 557 | 666 | 557 |
Real estate | Multifamily | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 1,210 | 687 | 1,156 | 620 |
Provision/(credit) for loan losses | 347 | 255 | 401 | 322 |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Total ending allowance balance | 1,557 | 942 | 1,557 | 942 |
Real estate | One to four family | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 383 | 105 | 138 | 109 |
Provision/(credit) for loan losses | (3) | (3) | 242 | (7) |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Total ending allowance balance | 380 | 102 | 380 | 102 |
Commercial and industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 5,784 | 4,963 | 5,578 | 5,364 |
Provision/(credit) for loan losses | 269 | 713 | 546 | 444 |
Loans charged-off | 0 | (88) | (71) | (220) |
Recoveries | 0 | 0 | 0 | 0 |
Total ending allowance balance | 6,053 | 5,588 | 6,053 | 5,588 |
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 580 | 126 | 360 | 107 |
Provision/(credit) for loan losses | 155 | 165 | 461 | 201 |
Loans charged-off | (67) | (29) | (153) | (46) |
Recoveries | 0 | 0 | 0 | 0 |
Total ending allowance balance | $ 668 | $ 262 | $ 668 | $ 262 |
LOANS (Schedule of Loans by Imp
LOANS (Schedule of Loans by Impairment Method) (Details 6) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment, Allowance for loan losses | $ 96 | $ 86 | ||||
Collectively evaluated for impairment, Allowance for loan losses | 17,367 | 14,801 | ||||
Total ending allowance balance | 17,463 | $ 16,260 | 14,887 | $ 13,909 | $ 12,236 | $ 11,815 |
Individually evaluated for impairment, Loans | 2,826 | 6,089 | ||||
Collectively evaluated for impairment, Loans | 1,598,831 | 1,414,877 | ||||
Total ending loan balance | 1,601,657 | 1,420,966 | ||||
Real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total ending loan balance | 1,160,448 | 1,036,370 | ||||
Real estate | Commercial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment, Allowance for loan losses | 0 | |||||
Collectively evaluated for impairment, Allowance for loan losses | 8,139 | 7,136 | ||||
Total ending allowance balance | 8,139 | 7,800 | 7,136 | 6,458 | 5,853 | 5,206 |
Individually evaluated for impairment, Loans | 1,535 | 2,368 | ||||
Collectively evaluated for impairment, Loans | 855,536 | 781,377 | ||||
Total ending loan balance | 857,071 | 783,745 | ||||
Real estate | Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment, Allowance for loan losses | 0 | 0 | ||||
Collectively evaluated for impairment, Allowance for loan losses | 666 | 519 | ||||
Total ending allowance balance | 666 | 503 | 519 | 557 | 502 | 409 |
Individually evaluated for impairment, Loans | 0 | 0 | ||||
Collectively evaluated for impairment, Loans | 45,974 | 36,960 | ||||
Total ending loan balance | 45,974 | 36,960 | ||||
Real estate | Multifamily | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment, Allowance for loan losses | 0 | 0 | ||||
Collectively evaluated for impairment, Allowance for loan losses | 1,557 | 1,156 | ||||
Total ending allowance balance | 1,557 | 1,210 | 1,156 | 942 | 687 | 620 |
Individually evaluated for impairment, Loans | 0 | 0 | ||||
Collectively evaluated for impairment, Loans | 233,474 | 190,097 | ||||
Total ending loan balance | 233,474 | 190,097 | ||||
Real estate | One to four family | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment, Allowance for loan losses | 0 | 9 | ||||
Collectively evaluated for impairment, Allowance for loan losses | 380 | 129 | ||||
Total ending allowance balance | 380 | 383 | 138 | 102 | 105 | 109 |
Individually evaluated for impairment, Loans | 1,099 | 3,566 | ||||
Collectively evaluated for impairment, Loans | 22,830 | 22,002 | ||||
Total ending loan balance | 23,929 | 25,568 | ||||
Commercial and industrial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment, Allowance for loan losses | 0 | 0 | ||||
Collectively evaluated for impairment, Allowance for loan losses | 6,053 | 5,578 | ||||
Total ending allowance balance | 6,053 | 5,784 | 5,578 | 5,588 | 4,963 | 5,364 |
Individually evaluated for impairment, Loans | 0 | 0 | ||||
Collectively evaluated for impairment, Loans | 354,932 | 340,001 | ||||
Total ending loan balance | 354,932 | 340,001 | ||||
Consumer | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Individually evaluated for impairment, Allowance for loan losses | 96 | 77 | ||||
Collectively evaluated for impairment, Allowance for loan losses | 572 | 283 | ||||
Total ending allowance balance | 668 | $ 580 | 360 | $ 262 | $ 126 | $ 107 |
Individually evaluated for impairment, Loans | 192 | 155 | ||||
Collectively evaluated for impairment, Loans | 86,085 | 44,440 | ||||
Total ending loan balance | $ 86,277 | $ 44,595 |
LOANS (Schedule of Impaired by
LOANS (Schedule of Impaired by Class of Loans) (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
With an allowance recorded: | |||||
Unpaid Principal Balance | $ 210 | $ 210 | $ 841 | ||
Recorded Investment | 192 | 192 | 711 | ||
Allowance for Loan Losses Allocated | 96 | 96 | 86 | ||
Average Recorded Investment | 138 | $ 4,555 | 329 | $ 4,445 | |
Interest Income Recognized | 0 | 9 | 2 | 19 | |
With no related allowance recorded: | |||||
Unpaid Principal Balance | 3,380 | 3,380 | 6,047 | ||
Recorded Investment | 2,634 | 2,634 | 5,378 | ||
Average Recorded Investment | 2,644 | 7,774 | 3,189 | 7,625 | |
Interest Income Recognized | 30 | 106 | 90 | 138 | |
Real estate | Commercial | |||||
With no related allowance recorded: | |||||
Unpaid Principal Balance | 2,004 | 2,004 | 2,890 | ||
Recorded Investment | 1,535 | 1,535 | 2,368 | ||
Average Recorded Investment | 1,540 | 6,331 | 1,816 | 6,056 | |
Interest Income Recognized | 16 | 68 | 62 | 112 | |
Real estate | One to four family | |||||
With an allowance recorded: | |||||
Unpaid Principal Balance | 0 | 0 | 686 | ||
Recorded Investment | 0 | 0 | 556 | ||
Allowance for Loan Losses Allocated | 0 | 0 | 9 | ||
Average Recorded Investment | 0 | 847 | 185 | 753 | |
Interest Income Recognized | 0 | 9 | 0 | 18 | |
With no related allowance recorded: | |||||
Unpaid Principal Balance | 1,376 | 1,376 | 3,157 | ||
Recorded Investment | 1,099 | 1,099 | 3,010 | ||
Average Recorded Investment | 1,104 | 283 | 1,373 | 377 | |
Interest Income Recognized | 14 | 26 | 28 | 0 | |
Commercial and industrial | |||||
With an allowance recorded: | |||||
Average Recorded Investment | 3,660 | 3,660 | |||
Interest Income Recognized | 0 | 0 | |||
With no related allowance recorded: | |||||
Average Recorded Investment | 1,160 | 1,192 | |||
Interest Income Recognized | 12 | 26 | |||
Consumer | |||||
With an allowance recorded: | |||||
Unpaid Principal Balance | 210 | 210 | 155 | ||
Recorded Investment | 192 | 192 | 155 | ||
Allowance for Loan Losses Allocated | 96 | 96 | $ 77 | ||
Average Recorded Investment | 138 | 48 | 144 | 32 | |
Interest Income Recognized | $ 0 | $ 0 | $ 2 | $ 1 |
LOANS (Detail Textuals)
LOANS (Detail Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Interest on non-accrual loans not recognized | $ 1,000 | $ 37,000 | $ 2,500 | $ 77,000 | |
Loans modified in troubled debt restructurings | $ 2,600,000 | $ 2,600,000 | $ 2,700,000 | ||
Specific reserves modified in troubled debt restructurings | $ 9,000 |
EARNINGS PER COMMON SHARE (Comp
EARNINGS PER COMMON SHARE (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic | ||||
Net income per consolidated statements of operations | $ 5,865 | $ 2,651 | $ 12,156 | $ 5,201 |
Less: Earnings allocated to participating securities | (49) | (51) | (102) | (100) |
Net income available to common stockholders | $ 5,816 | $ 2,600 | $ 12,054 | $ 5,101 |
Weighted average common shares outstanding including participating securities | 8,198,257 | 4,629,004 | 8,195,542 | 4,629,004 |
Less: Weighted average participating securities | (68,770) | (89,079) | (68,770) | (89,079) |
Weighted average common shares outstanding | 8,129,487 | 4,539,925 | 8,126,772 | 4,539,925 |
Basic earnings per common share | $ 0.72 | $ 0.57 | $ 1.48 | $ 1.12 |
Diluted | ||||
Net income allocated to common stockholders | $ 5,816 | $ 2,600 | $ 12,054 | $ 5,101 |
Weighted average common shares outstanding for basic earnings per common share | 8,129,487 | 4,539,925 | 8,126,772 | 4,539,925 |
Add: Dilutive effects of assumed exercise of stock options | 160,561 | 33,000 | 156,834 | 33,000 |
Average shares and dilutive potential common shares | 8,290,048 | 4,572,925 | 8,283,606 | 4,572,925 |
Dilutive earnings per common share | $ 0.70 | $ 0.57 | $ 1.46 | $ 1.12 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Detail Textuals) - shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||
Number of antidilutive shares not considered in computing diluted earnings per share | 0 | 0 |
STOCK COMPENSATION PLAN (Summar
STOCK COMPENSATION PLAN (Summary of the Status of the Stock Option Plan) (Details) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Number of Options | |
Outstanding, beginning of period | shares | 271,500 |
Granted | shares | 0 |
Exercised | shares | (3,000) |
Cancelled/forfeited | shares | 0 |
Outstanding, end of period | shares | 268,500 |
Options vested and exercisable at end of period | shares | 268,500 |
Weighted Average Exercise Price | |
Outstanding, beginning of period | $ / shares | $ 19.79 |
Granted | $ / shares | 0 |
Exercised | $ / shares | 30 |
Cancelled/forfeited | $ / shares | 0 |
Outstanding, end of period | $ / shares | 19.68 |
Options vested and exercisable at end of period | $ / shares | $ 19.68 |
Weighted average remaining contractual life (years) | 5 years 1 month 17 days |
STOCK COMPENSATION PLAN (Summ48
STOCK COMPENSATION PLAN (Summary of Stock Options Outstanding) (Details 1) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
$10 - 20 | |
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 | 5 years 10 months 21 days |
Weighted Average Exercise Price | $ 18 |
$21 - 30 | |
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 | 37,500 |
Weighted Average Remaining Contractual Life | 5 months 12 days |
Weighted Average Exercise Price | $ 30 |
$10 - 30 | |
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 | 268,500 |
Weighted Average Remaining Contractual Life | 5 years 1 month 17 days |
Weighted Average Exercise Price | $ 19.68 |
STOCK COMPENSATION PLAN (Summ49
STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details 2) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Weighted Average Grant Date Fair Value | |
Vested | $ 742,000 |
Non-vested restricted stock | |
Number of Shares | |
Outstanding, beginning of period | shares | 76,104 |
Granted | shares | 8,987 |
Forfeited | shares | 0 |
Vested | shares | (16,321) |
Outstanding at end of period | shares | 68,770 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning of period | $ 20.61 |
Granted | 48.99 |
Forfeited | 0 |
Vested | 35.06 |
Outstanding at end of period | $ 23.61 |
STOCK COMPENSATION PLAN (Detail
STOCK COMPENSATION PLAN (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate share payout | 12,000 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate share payout | 90,000 | |
Performance Restricted Share Units ("PRSUs") | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average service inception date fair value of award shares | $ 4,125,300 | |
Likely aggregate share payout | 90,000 | |
Compensation expense recognized | $ 382,000 | $ 561,412 |
STOCK COMPENSATION PLAN (Deta51
STOCK COMPENSATION PLAN (Detail Textuals) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2013 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total fair value of shares vested | $ 742,000 | ||||||
Stock Option | |||||||
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 | ||||
Compensation cost related to stock award plan | $ 0 | $ 0 | $ 0 | $ 0 | |||
Equity Incentive Plan | |||||||
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 | |||||
Equity Incentive Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment award, exercise period from the grant date | 10 years | ||||||
Incentive stock options | Maximum | |||||||
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 awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment award, shares authorized, maximum | 724,642 | 724,642 | |||||
Unrecognized compensation cost related to non-vested stock options | $ 817,000 | $ 817,000 | |||||
Compensation cost related to stock award plan | 98,000 | $ 204,000 | $ 161,000 | $ 92,000 | |||
Number of additional shares authorized | 760,000 | 300,000 | |||||
Unrecognized compensation expense recognition period | 2 years 9 months 26 days | ||||||
Number of shares, Vested | 16,321 | ||||||
Restricted shares granted to the Board of Directors | 8,987 | ||||||
Fair value of shares vested | 0 | $ 302,000 | |||||
Performance Restricted Share Units ("PRSUs") | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of PRSUs awarded | 90,000 | ||||||
Threshold target performance period | 3 years | ||||||
Compensation expense recognized | $ 382,000 | $ 561,412 |
FAIR VALUE OF FINANCIAL INSTR52
FAIR VALUE OF FINANCIAL INSTRUMENTS - Assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 28,989 | $ 32,157 |
Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 23,464 | 24,684 |
Commercial collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,550 | |
CRA Mutual Fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,081 | 2,108 |
Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,081 | 2,108 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 26,908 | 30,049 |
level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 29,887 | 32,157 |
Recurring basis | Quoted Prices in Active Markets For Identical Assets (Level 1) | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets For Identical Assets (Level 1) | Residential collateralized mortgage obligation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets For Identical Assets (Level 1) | Commercial collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring basis | Quoted Prices in Active Markets For Identical Assets (Level 1) | Municipal bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets For Identical Assets (Level 1) | CRA Mutual Fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,081 | 2,108 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 23,464 | 24,684 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential collateralized mortgage obligation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,351 | 2,706 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,550 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,093 | 1,109 |
Recurring basis | Significant Other Observable Inputs (Level 2) | CRA Mutual Fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis | level 3 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis | level 3 | Residential collateralized mortgage obligation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis | level 3 | Commercial collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring basis | level 3 | Municipal bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis | level 3 | CRA Mutual Fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis | Carrying Amount | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 24,133 | 24,684 |
Recurring basis | Carrying Amount | Residential collateralized mortgage obligation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,351 | 2,706 |
Recurring basis | Carrying Amount | Commercial collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,550 | |
Recurring basis | Carrying Amount | Municipal bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,093 | 1,109 |
Recurring basis | Carrying Amount | CRA Mutual Fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 2,081 | $ 2,108 |
FAIR VALUE OF FINANCIAL INSTR53
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Securities available for sale | $ 28,989 | $ 32,157 |
Securities held to maturity | 4,782 | 5,330 |
Carrying Amount | ||
Assets: | ||
Cash and due from banks | 10,148 | 8,790 |
Overnight deposits | 240,994 | 254,441 |
Securities available for sale | 28,989 | 32,157 |
Securities held to maturity | 4,985 | 5,428 |
Loans, net | 1,582,184 | 1,405,009 |
Other investments | ||
FRB Stock | 7,223 | 3,911 |
FHLB Stock | 4,047 | 2,766 |
SBA Loan Fund | 5,000 | 5,000 |
Certificates of deposit | 2,000 | |
Disability Opportunity Fund | 500 | |
Accrued interest receivable | 4,449 | 4,421 |
Liabilities: | ||
Deposits without stated maturities | 1,450,766 | 1,324,110 |
Deposits with stated maturities | 89,716 | 80,245 |
Borrowed Funds | 42,198 | |
Federal Home Loan Bank of New York advances | 63,000 | |
Trust preferred securities payable | 20,620 | 20,620 |
Subordinated debt, net of issuance cost | 24,517 | 24,489 |
Accrued interest payable | 1,019 | 749 |
Total Fair Value | ||
Assets: | ||
Cash and due from banks | 10,148 | 8,790 |
Overnight deposits | 240,994 | 252,441 |
Securities available for sale | 28,989 | 32,157 |
Securities held to maturity | 4,782 | 5,330 |
Loans, net | 1,628,843 | 1,410,860 |
Other investments | ||
Certificates of deposit | 2,000 | |
Disability Opportunity Fund | 500 | |
Accrued interest receivable | 4,449 | 4,421 |
Liabilities: | ||
Deposits without stated maturities | 1,450,766 | 1,324,110 |
Deposits with stated maturities | 88,954 | 80,079 |
Borrowed Funds | 42,188 | |
Federal Home Loan Bank of New York advances | 62,979 | |
Trust preferred securities payable | 20,001 | 19,997 |
Subordinated debt, net of issuance cost | 25,313 | 25,500 |
Accrued interest payable | 1,019 | 749 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Cash and due from banks | 10,148 | 8,790 |
Overnight deposits | 240,994 | 252,441 |
Securities available for sale | 2,081 | 2,108 |
Securities held to maturity | 0 | 0 |
Loans, net | 0 | 0 |
Other investments | ||
Certificates of deposit | 2,000 | |
Accrued interest receivable | 30 | 11 |
Liabilities: | ||
Deposits without stated maturities | 1,450,766 | 1,324,110 |
Deposits with stated maturities | 0 | 0 |
Borrowed Funds | 0 | |
Federal Home Loan Bank of New York advances | 0 | |
Trust preferred securities payable | 0 | 0 |
Subordinated debt, net of issuance cost | 0 | 0 |
Accrued interest payable | 21 | 27 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Overnight deposits | 0 | 0 |
Securities available for sale | 26,908 | 30,049 |
Securities held to maturity | 4,782 | 5,330 |
Loans, net | 0 | 0 |
Other investments | ||
Certificates of deposit | 0 | |
Accrued interest receivable | 112 | 116 |
Liabilities: | ||
Deposits without stated maturities | 0 | 0 |
Deposits with stated maturities | 88,954 | 80,079 |
Borrowed Funds | 42,188 | |
Federal Home Loan Bank of New York advances | 62,979 | |
Trust preferred securities payable | 0 | 0 |
Subordinated debt, net of issuance cost | 25,313 | 25,500 |
Accrued interest payable | 787 | 258 |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Overnight deposits | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Loans, net | 1,628,843 | 1,410,860 |
Other investments | ||
Certificates of deposit | 0 | |
Disability Opportunity Fund | 500 | |
Accrued interest receivable | 4,307 | 4,294 |
Liabilities: | ||
Deposits without stated maturities | 0 | 0 |
Deposits with stated maturities | 0 | 0 |
Borrowed Funds | 0 | |
Federal Home Loan Bank of New York advances | 0 | |
Trust preferred securities payable | 20,001 | 19,997 |
Subordinated debt, net of issuance cost | 0 | 0 |
Accrued interest payable | $ 211 | $ 464 |
FAIR VALUE OF FINANCIAL INSTR54
FAIR VALUE OF FINANCIAL INSTRUMENTS (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Reserves for loans | $ 1,270 | $ 1,790 | $ 2,747 | $ 2,360 | |
Carrying Reported Amount Fair Value Disclosure [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Disability Opportunity Fund | 500 | 500 | |||
Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying value of equity securities | $ 2,100 | $ 2,100 | $ 2,100 |
ACCUMULATED OTHER COMPREHENSI55
ACCUMULATED OTHER COMPREHENSIVE INCOME (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (206) | |||
Tax effect | $ 40 | $ (12) | 140 | $ (69) |
Ending balance | (617) | (617) | ||
AOCI (Loss), Net | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (528) | (89) | (206) | (165) |
Net change in other comprehensive income (loss) before reclassification, net of tax | (166) | 28 | (588) | 161 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 37 | 0 | 37 | 0 |
Tax effect | 40 | (12) | 140 | (69) |
Net current period other comprehensive loss | (89) | 16 | (411) | 92 |
Ending balance | $ (617) | $ (73) | $ (617) | $ (73) |
FINANCIAL INSTRUMENTS WITH OF56
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Outstanding following off-balance-sheet financial instruments) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 61,108 | $ 63,392 |
Variable Rate | 104,844 | 76,008 |
Undrawn lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 36,193 | 39,651 |
Variable Rate | 104,844 | 76,008 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 24,915 | 23,741 |
Variable Rate | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS WITH OF57
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Detail Textuals) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments term | 2 years | |
Amount of off-balance-sheet financial instruments | $ 61,108 | $ 63,392 |
Maturity of stand by letters of credit and time deposits | within one year | |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed interest rate off-balance-sheet financial instruments | 3.00% | 3.50% |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed interest rate off-balance-sheet financial instruments | 5.70% | 9.50% |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 24,915 | $ 23,741 |
Amount of off-balance-sheet financial instruments pledged | $ 900 | $ 1,700 |
SUBORDINATED DEBT (Detail Textu
SUBORDINATED DEBT (Detail Textuals) - Subordinated Debt $ in Millions | Mar. 08, 2017USD ($) |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 25 |
Interest rate during period | 6.25% |
Debt instrument issuance price percentage | 100.00% |
Redemption price for subordinate notes | 100.00% |
London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Basis spread on LIBOR variable rate | 4.26% |
Description of variable rate basis | three month LIBOR |