Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 07, 2019 | |
Document And Entity Information (Abstract) | ||
Entity Registrant Name | Metropolitan Bank Holding Corp. | |
Entity Central Index Key | 0001476034 | |
Trading Symbol | mcb | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 8,320,816 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 9,372 | $ 9,246 |
Overnight deposits | 346,674 | 223,704 |
Total cash and cash equivalents | 356,046 | 232,950 |
Debt securities available for sale, at fair value | 29,731 | 30,439 |
Investment securities held to maturity (estimated fair value of $4,295 and $4,403 at March 31, 2019 and December 31, 2018 respectively) | 4,392 | 4,571 |
Marketable equity investments, at fair value | 2,149 | 2,110 |
Total securities | 36,272 | 37,120 |
Other investments | 23,652 | 22,287 |
Loans, net of deferred fees and unamortized costs | 2,102,420 | 1,865,216 |
Allowance for loan losses | (20,834) | (18,942) |
Net loans | 2,081,586 | 1,846,274 |
Receivable from prepaid card programs, net | 16,516 | 8,218 |
Accrued interest receivable | 6,396 | 5,507 |
Premises and equipment, net | 6,446 | 6,877 |
Prepaid expenses and other assets | 7,599 | 8,158 |
Goodwill | 9,733 | 9,733 |
Accounts receivable, net | 940 | 5,520 |
Total assets | 2,545,186 | 2,182,644 |
Deposits: | ||
Noninterest-bearing demand deposits | 915,499 | 798,563 |
Interest-bearing deposits | 1,050,631 | 861,991 |
Total deposits | 1,966,130 | 1,660,554 |
Federal Home Loan Bank of New York advances | 215,000 | 185,000 |
Trust preferred securities | 20,620 | 20,620 |
Subordinated debt, net of issuance cost | 24,559 | 24,545 |
Accounts payable, accrued expenses and other liabilities | 28,581 | 18,439 |
Accrued interest payable | 984 | 1,282 |
Prepaid third-party debit cardholder balances | 15,525 | 7,687 |
Total liabilities | 2,271,399 | 1,918,127 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 25,000,000 shares authorized, 8,320,816 and 8,217,274 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 82 | 82 |
Additional paid in capital | 214,088 | 213,490 |
Retained earnings | 59,761 | 51,415 |
Accumulated other comprehensive loss, net of tax effect | (147) | (473) |
Total stockholders' equity | 273,787 | 264,517 |
Total liabilities and stockholders' equity | 2,545,186 | 2,182,644 |
Class B Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock | 3 | 3 |
Total stockholders' equity | $ 3 | $ 3 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Securities held to maturity | $ 4,295 | $ 4,403 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 8,320,816 | 8,217,274 |
Common stock, shares outstanding | 8,320,816 | 8,217,274 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest and dividend income: | ||
Loans, including fees | $ 25,050 | $ 17,212 |
Securities: | ||
Taxable | 243 | 186 |
Tax-exempt | 7 | 7 |
Money market funds | 54 | 119 |
Overnight deposits | 1,389 | 1,043 |
Other interest and dividends | 247 | 126 |
Total interest income | 26,990 | 18,693 |
Interest expense: | ||
Deposits | 4,331 | 1,439 |
Borrowed funds | 1,104 | 150 |
Trust preferred securities interest expense | 257 | 184 |
Subordinated debt interest expense | 405 | 404 |
Total interest expense | 6,097 | 2,177 |
Net interest income | 20,893 | 16,516 |
Provision for loan losses | (2,031) | 1,477 |
Net interest income after provision for loan losses | 22,924 | 15,039 |
Non-interest income: | ||
Service charges on deposit accounts | 819 | 1,910 |
Prepaid third-party debit card income | 1,257 | 908 |
Other service charges and fees | 278 | 2,494 |
Gains on securities, net | 39 | |
Total non-interest income | 2,393 | 5,312 |
Non-interest expense: | ||
Compensation and benefits | 7,490 | 6,317 |
Bank premises and equipment | 1,335 | 1,180 |
Professional fees | 794 | 753 |
Technology costs | 1,700 | 1,506 |
Other expenses | 1,690 | 1,482 |
Total non-interest expense | 13,009 | 11,238 |
Net income before income tax expense | 12,308 | 9,113 |
Income tax expense | 3,777 | 2,822 |
Net income | $ 8,531 | $ 6,291 |
Earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 1.03 | $ 0.77 |
Diluted earnings per common share (in dollars per share) | $ 1.01 | $ 0.75 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract] | ||
Net Income | $ 8,531 | $ 6,291 |
Other comprehensive income (loss): | ||
Unrealized holding gain (loss) arising during the period | 385 | (423) |
Tax effect | (127) | 101 |
Total unrealized gains (loss) on securities available for sale, net | 258 | (322) |
Comprehensive income | $ 8,789 | $ 5,969 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited) - USD ($) $ in Thousands | Class B Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI (Loss), Net | Total |
Balance at Dec. 31, 2017 | $ 3 | $ 81 | $ 211,145 | $ 25,861 | $ (206) | $ 236,884 |
Balance (in shares) at Dec. 31, 2017 | 272,636 | 8,196,310 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net | (33) | (33) | ||||
Repurchase of shares for exercise of stock options and tax withholding for restricted stock vesting | (72) | (72) | ||||
Repurchase of shares for exercise of stock options and tax withholding for restricted stock vesting (in shares) | (1,385) | |||||
Employee stock-based compensation | 293 | 293 | ||||
Net income | 6,291 | 6,291 | ||||
Other comprehensive income (loss) | (322) | (322) | ||||
Balance at Mar. 31, 2018 | $ 3 | $ 81 | 211,333 | 32,152 | (528) | 243,041 |
Balance (in shares) at Mar. 31, 2018 | 272,636 | 8,194,925 | ||||
Balance at Dec. 31, 2018 | $ 3 | $ 82 | 213,490 | 51,415 | (473) | 264,517 |
Balance (in shares) at Dec. 31, 2018 | 272,636 | 8,217,274 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Repurchase of shares for exercise of stock options and tax withholding for restricted stock vesting | (88) | (88) | ||||
Repurchase of shares for exercise of stock options and tax withholding for restricted stock vesting (in shares) | (2,881) | |||||
Employee and non-employee restricted stock, net of forfeiture | 686 | 686 | ||||
Employee and non-employee restricted stock, net of forfeiture (in shares) | 106,423 | |||||
Net income | 8,531 | 8,531 | ||||
Cumulative effect of adopting new accounting standard | ASU 2016-01 | (68) | 68 | ||||
Cumulative effect of adopting new accounting standard | ASU 2014-09 | (117) | (117) | ||||
Other comprehensive income (loss) | 258 | 258 | ||||
Balance at Mar. 31, 2019 | $ 3 | $ 82 | $ 214,088 | $ 59,761 | $ (147) | $ 273,787 |
Balance (in shares) at Mar. 31, 2019 | 272,636 | 8,320,816 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 8,531 | $ 6,291 |
Adjustments to reconcile net income to net cash: | ||
Net depreciation amortization and accretion | 454 | 368 |
Provision for loan losses | (2,031) | 1,477 |
Net change in deferred loan fees | 731 | 698 |
Stock-based compensation expense | 586 | 293 |
Non-employee stock-based expense | 100 | |
Change in fair value of equity securities | (39) | |
Net change in: | ||
Accrued interest receivable | (889) | 55 |
Accounts payable, accrued expenses and other liabilities | 9,205 | 1,660 |
Debit card holder balances | 7,838 | (2,067) |
Accrued interest payable | (298) | (295) |
Accounts receivable, net | 4,580 | 4,927 |
Receivable from prepaid card programs, net | (8,298) | 2,056 |
Prepaid expenses and other assets | 559 | (141) |
Net cash provided by operating activities | 21,029 | 15,322 |
Cash flows from investing activities: | ||
Loan originations, purchases and payments, net of recoveries | (233,318) | (118,967) |
Proceeds from sale of loans | 11,895 | |
Redemptions of other investments | 1,350 | 414 |
Purchases of other investments | (2,715) | (3,303) |
Proceeds from paydowns and maturities of securities available for sale | 1,042 | 1,408 |
Proceeds from paydowns of securities held to maturity | 172 | 208 |
Purchase of premises and equipment, net | 48 | (716) |
Net cash used in investing activities | (233,421) | (109,061) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net | (33) | |
Proceeds from FHLB advances | 350,000 | |
Repayments of FHLB advances | (320,000) | (9,198) |
Redemption of common stock for tax withholdings for restricted stock vesting | (88) | (72) |
Net increase in deposits | 305,576 | 212,761 |
Net cash provided by financing activities | 335,488 | 203,458 |
Increase in cash and cash equivalents | 123,096 | 109,719 |
Cash and cash equivalents at the beginning of the period | 232,950 | 261,231 |
Cash and cash equivalents at the end of the period | 356,046 | 370,950 |
Cash paid for: | ||
Interest | 6,395 | 2,472 |
Income Taxes | $ 1,200 | 4,862 |
Non-cash item: | ||
Transfer of loans held for investment to held for sale | $ 11,895 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2019 | |
ORGANIZATION [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 Company and the Bank are subject to the regulations of certain state and federal agencies and, accordingly, are 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 8 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 months ended March 31, 2019 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, 2018. |
SUMMARY OF RECENT ACCOUNTING PR
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2019 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
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 Financial Accounting Standards Board (“FASB”) deferred the effective date of the ASU by one year which means ASU 2014‑09 is effective for the Company beginning January 1, 2019. The Company adopted the new revenue guidance as January 1, 2019, using the five-step model prescribed by the ASU and described above. Management evaluated the Company’s revenue streams and recorded an adjustment to opening retained earnings of $117,000 in accordance with the modified retrospective method allowed by the ASU. 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. The Company adopted these ASUs on January 1, 2019. The Company has evaluated the impact of ASU 2016‑01 and 2018‑03 and has recorded $68,000, net of tax, as an adjustment to opening retained earnings and accumulated other comprehensive income in accordance with the modified retrospective method allowed by the ASU. 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 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 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 material 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 material impact on its consolidated financial statements. On February 14, 2018 the FASB issued final guidance in the form of ASU 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. ASU 2018-02 became effective for the Company on January 1, 2019 and the Company opted not to make the reclassification under ASU 2018-02. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized losses (dollars in thousands): Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At March 31, 2019 Cost Gains Losses Fair Value Debt securities available-for-sale Residential mortgage-backed securities $ 20,914 $ 35 $ (243) $ 20,706 Residential collateralized mortgage obligations 2,107 — (76) 2,031 Commercial mortgage-backed securities 5,859 66 — 5,925 Municipal bond 1,068 1 — 1,069 Total securities available-for-sale $ 29,948 $ 102 $ (319) $ 29,731 Held-to-maturity securities: Residential mortgage-backed securities $ 4,367 $ — $ (97) $ 4,270 Foreign government securities 25 — — 25 Total securities held-to-maturity $ 4,392 $ — $ (97) $ 4,295 Marketable equity securities: CRA Mutual Fund $ 2,220 $ — $ (71) $ 2,149 Total non-trading equity investment securities $ 2,220 $ — $ (71) $ 2,149 Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2018 Cost Gains Losses Fair Value Debt securities available-for-sale Residential mortgage-backed securities $ 21,880 $ 3 $ (486) $ 21,397 Residential collateralized mortgage obligations 2,213 — (97) 2,116 Commercial mortgage-backed securities 5,874 — (25) 5,849 Municipal bond 1,074 3 — 1,077 Total securities available-for-sale $ 31,041 $ 6 $ (608) $ 30,439 Held-to-maturity securities: Residential mortgage-backed securities $ 4,546 $ — $ (168) $ 4,378 Foreign government securities 25 — — 25 Total securities held-to-maturity $ 4,571 $ — $ (168) $ 4,403 Marketable equity securities: CRA Mutual Fund $ 2,208 $ — $ (98) $ 2,110 Total non-trading equity investment securities $ 2,208 $ — $ (98) $ 2,110 There were no sales or calls of securities for the three months ended March 31, 2019 and March 31, 2018. The amortized cost and fair value of debt securities at March 31, 2019 and December 31, 2018 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 March 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 25 $ 25 $ 256 $ 256 One to five years — — — — Five to ten years — — — — Due after ten years — — 812 813 Total $ 25 $ 25 $ 1,068 $ 1,069 Residential mortgage-backed securities $ 4,367 $ 4,270 $ 20,914 $ 20,706 Residential collateralized mortgage obligations — — 2,107 2,031 Commercial mortgage-backed securities — — 5,859 5,925 Total Securities $ 4,392 $ 4,295 $ 29,948 $ 29,731 Held to Maturity Available for Sale At December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 25 $ 25 $ 257 $ 258 One to five years — — — — Five to ten years — — — — Due after ten years — — 817 819 Total $ 25 $ 25 $ 1,074 $ 1,077 Residential mortgage-backed securities $ 4,546 $ 4,378 $ 21,880 $ 21,397 Residential collateralized mortgage obligations — — 2,213 2,116 Commercial mortgage-backed securities — — 5,874 5,849 Total Securities $ 4,571 $ 4,403 $ 31,041 $ 30,439 There were no securities pledged to secure borrowings at March 31, 2019 and December 31, 2018. At March 31, 2019 and December 31, 2018, 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. Securities with unrealized/unrecognized losses at March 31, 2019 and December 31, 2018, 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 Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At March 31, 2019 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available-for-sale Residential mortgage-backed securities $ — $ — $ 15,812 $ (243) $ 15,812 $ (243) Residential collateralized mortgage obligations — — 2,031 (76) 2,031 (76) Total securities available-for-sale $ — $ — $ 17,843 $ (319) $ 17,843 $ (319) Held-to-maturity securities: Residential mortgage-backed securities $ — $ — $ 4,270 $ (97) $ 4,270 $ (97) Total securities held-to-maturity $ — $ — $ 4,270 $ (97) $ 4,270 $ (97) Less than 12 Months 12 months or more Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At December 31, 2018 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available-for-sale Residential mortgage-backed securities $ 10,374 $ (73) $ 7,774 $ (413) $ 18,148 $ (486) Residential collateralized mortgage obligations — — 2,116 (97) 2,116 (97) Commercial mortgage-backed securities — — 5,849 (25) 5,849 (25) Total securities available-for-sale $ 10,374 $ (73) $ 15,739 $ (535) $ 26,113 $ (608) Held-to-maturity securities: Residential mortgage-backed securities $ — $ — $ 4,378 $ (168) $ 4,378 $ (168) Total securities held-to-maturity $ — $ — $ 4,378 $ (168) $ 4,378 $ (168) 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 March 31, 2019 and December 31, 2018 since the decline in market value is attributable to changes in interest rates and not credit quality. In addition, the Bank 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 three months ended March 31, 2019 and for the year ended December 31, 2018. At March 31, 2019 and December 31, 2018, 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 | 3 Months Ended |
Mar. 31, 2019 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES [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 March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Real estate Commercial $ 1,134,243 $ 949,778 Construction 46,245 42,540 Multifamily 327,456 307,126 One-to-four family 78,943 79,423 Total real estate loans 1,586,887 1,378,867 Commercial and industrial 421,503 381,692 Consumer 96,894 106,790 Total loans 2,105,284 1,867,349 Deferred fees (2,864) (2,133) Loans, net of deferred fees and unamortized costs 2,102,420 1,865,216 Allowance for loan losses (20,834) (18,942) Balance at the end of the period $ 2,081,586 $ 1,846,274 The following tables present the activity in the Allowance for Loan Losses (referred herein as “ALLL”) by segment for the three months ending March 31, 2019 and 2018 (dollars in thousands): Commercial Commercial Multi One-to-four Three months ended March 31, 2019 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Beginning balance $ 9,037 $ 6,257 $ 625 $ 2,047 $ 228 $ 748 $ 18,942 Provision for loan losses 1,848 (4,077) 22 64 80 32 (2,031) Loans charged-off — (273) — — — (74) (347) Recoveries — 4,270 — — — — 4,270 Total ending allowance balance $ 10,885 $ 6,177 $ 647 $ 2,111 $ 308 $ 706 $ 20,834 Commercial Commercial Multi One-to-four Three months ended March 31, 2018 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Beginning balance $ 7,136 $ 5,578 $ 519 $ 1,156 $ 138 $ 360 $ 14,887 Provision for loan losses 611 277 (16) 54 245 306 1,477 Loans charged-off — (71) — — — (86) (157) Recoveries 53 — — — — — 53 Total ending allowance balance $ 7,800 $ 5,784 $ 503 $ 1,210 $ 383 $ 580 $ 16,260 Net charge-offs (recoveries) were $(3.9) million and $104,000 during the three months ended March 31, 2019 and 2018. Included in the net recoveries during the three months ended March 31, 2019 were $4.2 million in recoveries related to previously charged-off taxi medallion loans. The following tables present the balance in the ALLL and the recorded investment in loans by portfolio segment based on impairment method as of March 31, 2019 and December 31, 2018 (dollars in thousands): Commercial Commercial Multi One-to-four At March 31, 2019 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ 70 $ 53 $ 123 Collectively evaluated for impairment 10,885 6,177 647 2,111 238 653 20,711 Total ending allowance balance $ 10,885 $ 6,177 $ 647 $ 2,111 $ 308 $ 706 $ 20,834 Loans: Individually evaluated for impairment $ 379 $ — $ — $ — $ 1,070 $ 106 $ 1,555 Collectively evaluated for impairment 1,133,864 421,503 46,245 327,456 77,873 96,788 2,103,729 Total ending loan balance $ 1,134,243 $ 421,503 $ 46,245 $ 327,456 $ 78,943 $ 96,894 $ 2,105,284 Commercial Commercial Multi One-to-four At December 31, 2018 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 44 $ 44 Collectively evaluated for impairment 9,037 6,257 625 2,047 228 704 18,898 Total ending allowance balance $ 9,037 $ 6,257 $ 625 $ 2,047 $ 228 $ 748 $ 18,942 Loans: Individually evaluated for impairment $ 383 $ — $ — $ — $ 1,078 $ 89 $ 1,550 Collectively evaluated for impairment 949,395 381,692 42,540 307,126 78,345 106,701 1,865,799 Total ending loan balance $ 949,778 $ 381,692 $ 42,540 $ 307,126 $ 79,423 $ 106,790 $ 1,867,349 The following table presents loans individually evaluated for impairment recognized as of March 31, 2019 and December 31, 2018 (dollars in thousands): Unpaid Principal Allowance for Loan Average Recorded Interest Income At March 31, 2019 Balance Recorded Investment Losses Allocated Investment Recognized With an allowance recorded: One-to-four family $ $ $ $ Consumer Total $ 761 $ 631 $ 123 $ 360 $ 5 Without an allowance recorded: Commercial real estate $ 379 $ 379 $ — $ 381 $ 4 One-to-four family 692 545 — 811 11 Total $ 1,071 $ 924 $ — $ 1,192 $ 15 Unpaid Principal Allowance for Loan Average Recorded Interest Income At December 31, 2018 Balance Recorded Investment Losses Allocated Investment Recognized With an allowance recorded: One-to-four family $ — $ — $ — $ 111 $ — Consumer 105 89 44 157 7 Total $ 105 $ 89 $ 44 $ 268 $ 7 Without an allowance recorded: Commercial real estate $ 1,355 $ 1,078 $ — $ 1,477 $ 59 One-to-four family 1,740 1,461 — 2,948 146 Total $ 3,094 $ 2,539 $ — $ 4,424 $ 205 The recorded investment in loans excludes accrued interest receivable and loan origination fees. Interest income was recognized on a cash basis for impaired loans. For a loan to be considered impaired, management determines after review whether it is probable that the Bank will not be able to collect all amounts due according to the contractual terms of the loan agreement. Management applies its normal loan review procedures in making these judgments. Impaired loans include individually classified nonaccrual loans and troubled debt restructurings (“TDRs”). Impairment is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For loans that are collateral dependent, the fair value of the collateral is used to determine the fair value of the loan. The fair value of the collateral is determined based on recent appraised values. The fair value of the collateral or present value of expected cash flows is compared to the carrying value to determine if any write-down or specific loan loss allowance allocation is required. The following tables present the recorded investment in non-accrual loans and loans past due over 90 days and still accruing, by class of loans, as of March 31, 2019 and December 31, 2018 (dollars in thousands): At March 31, 2019 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ — $ 1,044 Consumer 68 386 Total $ 68 $ 1,430 At December 31, 2018 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ — $ 239 Consumer 50 — Total $ 50 $ 239 Non-accrual loans and loans past due 90 days that are still accruing include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Loans that are past due 90 days and still accruing include one commercial loan that continues to make principal and interest payments but is past its maturity date. This loan was designated as a loan past due 90 days and still accruing during the first quarter of 2019. Interest on non-accrual loans not recognized was $2,000 and $1,500 for the three months ended March 31, 2019 and March 31, 2018 respectively. The following tables present the aging of the recorded investment in past due loans by class of loans as of March 31, 2019 and December 31, 2018 (dollars in thousands): Greater 30-59 60-89 than 90 Total past Current At March 31, 2019 Days Days days due loans Total Commercial real estate $ 96 $ — $ — $ 96 $ 1,134,147 $ 1,134,243 Commercial & industrial — 159 1,044 1,203 420,300 421,503 Construction — — — — 46,245 46,245 Multifamily — — — — 327,456 327,456 One-to-four family — — — — 78,943 78,943 Consumer 326 224 454 1,004 95,890 96,894 Total $ 422 $ 383 $ 1,498 $ 2,303 $ 2,102,981 $ 2,105,284 Greater 30-59 60-89 than 90 Total past Current At December 31, 2018 Days Days days due loans Total Commercial real estate $ — $ — $ — $ — $ 949,778 $ 949,778 Commercial & industrial 1,670 95 239 2,004 379,688 381,692 Construction — — — — 42,540 42,540 Multifamily — — — — 307,126 307,126 One-to-four family 870 — — 870 78,553 79,423 Consumer 119 43 50 212 106,578 106,790 Total $ 2,659 $ 138 $ 289 $ 3,086 $ 1,864,263 $ 1,867,349 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 both March 31, 2019 and December 31, 2018 were $1.5 million of loans modified in TDRs. The Bank has allocated $89,000 in specific reserves to those customers with loans modified in TDRs as of March 31, 2019, compared to $19,000 allocated at December 31, 2018. There were no loans modified as a TDR during the three months ended March 31, 2019. There was one consumer loan in the amount of $39,000 that was modified as a TDR during the year ended December 31, 2018. The Bank has not committed to lend additional amounts as of March 31, 2019 to customers with outstanding loans that are classified as TDRs. During the three months ended March 31, 2019 and March 31, 2018 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. The following tables present the recorded investment in TDRs by class of loans as of March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Troubled debt restructurings: Real Estate: Commercial $ 379 $ 383 One-to-four family 1,070 1,078 Consumer 38 39 Total troubled debt restructurings $ 1,487 $ 1,500 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 generally analyzes all loans over $500,000, other than one-to-four family and consumer loans, individually by classifying the loans as to credit risk at least annually. For one-to-four family loans and consumer loans, the Bank evaluates credit quality based on the aging status of the loan and by performance status. An analysis is performed on a quarterly basis for loans classified as special mention, substandard, or doubtful. The Bank uses the following definitions for risk ratings: Special Mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above 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): Special At March 31, 2019 Pass Mention Substandard Total Commercial real estate $ 1,133,864 $ 379 $ — $ 1,134,243 Commercial & industrial 420,459 — 1,044 421,503 Construction 46,245 — — 46,245 Multifamily 327,456 — — 327,456 Total $ 1,928,024 $ 379 $ 1,044 $ 1,929,447 Special At December 31, 2018 Pass Mention Substandard Total Commercial real estate $ 949,395 $ 383 $ — $ 949,778 Commercial & industrial 380,196 1,496 — 381,692 Construction 42,540 — — 42,540 Multifamily 307,126 — — 307,126 Total $ 1,679,257 $ 1,879 $ — $ 1,681,136 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Basic Net income per consolidated statements of income $ 8,531 $ 6,291 Less: Earnings allocated to participating securities (135) (53) Net income available to common stockholders $ 8,396 $ 6,238 Weighted average common shares outstanding including participating securities 8,281,325 8,192,798 Less: Weighted average participating securities (130,873) (68,770) Weighted average common shares outstanding 8,150,452 8,124,028 Basic earnings per common share $ 1.03 $ 0.77 Diluted Net income allocated to common stockholders $ 8,396 $ 6,238 Weighted average common shares outstanding for basic earnings per common share 8,150,452 8,124,028 Add: Dilutive effects of assumed exercise of stock options 114,740 151,215 Add: Dilutive effects of assumed vesting of performance based restricted stock 20,028 — Average shares and dilutive potential common shares 8,285,220 8,275,243 Dilutive earnings per common share $ 1.01 $ 0.75 All stock options were considered in computing diluted earnings per common share for the three months ended March 31, 2019 and 2018. |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 3 Months Ended |
Mar. 31, 2019 | |
STOCK COMPENSATION PLAN [Abstract] | |
STOCK COMPENSATION PLAN | NOTE 7 - STOCK COMPENSATION 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 1,483,000 shares. Total remaining shares issuable under the 2009 Plan are 628,719 at March 31, 2019. The 2009 Plan expires on May 18, 2019. 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 three months ended March 31, 2019 and 2018. A summary of the status of the Company’s stock options and the change during the three months ended March 31, 2019 is presented below: Three Months Ended March 31, 2019 Number of Weighted Average Options Exercise Price Outstanding, beginning of period 231,000 $ 18.00 Granted — — Exercised — — Cancelled/forfeited — — Outstanding, end of period 231,000 $ 18.00 Options vested and exercisable at end of period 231,000 $ 18.00 Weighted average remaining contractual life (years) 5.13 There was no unrecognized compensation cost related to stock options granted under the 2009 Plan at March 31, 2019 and December 31, 2018. There was no compensation cost related to stock option plan for the three months ended March 31, 2019 and 2018. The following table summarizes information about stock options outstanding at March 31, 2019: Options Outstanding Range of Average Number Outstanding at Weighted Average Weighted Average Exercise Prices March 31, 2019 Remaining Contractual Life Exercise Price $10 – 20 231,000 5.13 $ 18.00 $21 – 30 — — $ — $10 – 30 231,000 5.13 $ 18.00 There were no stock options exercised during the three months ended March 31, 2019 and 2018. Restricted Stock Awards The Company issued restricted stock awards to certain key personnel under the 2009 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. As of March 31, 2019, there was $2.9 million of total unrecognized compensation expense related to the restricted stock awards. The cost is expected to be recognized over a weighted-average period of 2.63 years. As of March 31, 2019, there was $1.1 million of unrecognized expense related to Directors’ fees. The cost is expected to be recognized over a weighted-average period of 2.75 years. Total compensation cost that has been charged against income for restricted stock awards was $229,000 and $293,000 for the three months ended March 31, 2019 and March 31, 2018, respectively. In addition, 35,900 restricted shares were granted were to the Board of Directors in lieu of retainer fees for three years of service. These shares vest one-third each year over the years. Total expense for these awards was $100,000 in the first quarter of 2019. The following table summarizes the changes in the Company’s non-vested restricted stock awards for the three months ended March 31, 2019: Three Months Ended March 31, 2019 Weighted Average Number of Shares Grant Date Fair Value Outstanding, beginning of period 53,957 $ 21.46 Granted 106,423 35.36 Forfeited — — Vested (12,998) 22.09 Outstanding at end of period 147,382 $ 31.44 The total fair value of shares vested was $429,000 during the three months ended March 31, 2019. Performance Based Stock Awards During the first quarter of 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 personal performance and 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 guidance prescribed in ASC Topic 718, Compensation – Stock Compensation. During 2018, 90,000 PRSUs were awarded under the program. The earned units will be granted at the end of the three year performance period. There were no additional PRSUs awarded during the three months ended March 31, 2019. The following table summarizes the changes in the Company’s non-vested PRSU awards for the three months ended March 31, 2019 (dollars in thousands, except share information): For the three months ended March 31, 2019 Weighted average service inception date fair value of award shares $ 4,064,295 Minimum aggregate share payout 12,000 Maximum aggregate share payout 90,000 Likely aggregate share payout 90,000 Compensation expense recognized $ 357,503 Total compensation cost that has been charged against income for this plan was $358,000 for the three months ended March 31, 2019. No compensation cost related to PRSUs was recognized in the first quarter of 2018. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 9 - ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents changes in Accumulated Other Comprehensive Loss, net of tax, for the three months ended March 31, 2019 and 2018 (dollars in thousands): Three Months Ended March 31, 2019 2018 Beginning balance $ (473) $ (206) Cumulative effect of adopting new accounting standard ASU 2016-01, net of taxes 68 — Balance net of cumulative effect of adopting ASU 2016-01 (405) (206) Total unrealized gains/loss on securities available for sale, net of taxes 258 (322) Net current period other comprehensive income (loss) 258 (322) Ending balance $ (147) $ (528) |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 3 Months Ended |
Mar. 31, 2019 | |
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 non-performance 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 following off-balance-sheet financial instruments, whose contract amounts represent credit risk, are outstanding at March 31, 2019 and December 31, 2018 (dollars in thousands): At March 31, 2019 At December 31, 2018 Variable Variable Fixed Rate Rate Fixed Rate Rate Undrawn lines of credit $ 13,655 $ 170,430 $ 7,737 $ 130,547 Letters of credit 36,231 — 34,351 — $ 49,886 $ 170,430 $ 42,088 $ 130,547 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 March 31, 2019, the Bank’s fixed rate loan commitments had interest rates ranging from 3.0% to 5.6% and the Bank’s variable rate loan commitments had interest rates ranging from 4.5% to 9.5%, with a maturity of one year or more. At December 31, 2018, the Bank’s fixed rate loan commitments had interest rates ranging from 3.0% to 5.6% and the Bank’s variable rate loan commitments had interest rates ranging from 4.5% to 9.5%, with a maturity 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’s stand-by letters of credit of $36.2 million and $34.4 million as of March 31, 2019 and December 31, 2018, respectively, are collateralized by interest-bearing accounts of $29.8 and $23.0 million as of those respective years. The stand-by letters of credit mature within one year. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2019 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 11 – REVENUE FROM CONTRACTS WITH CUSTOMERS The Company adopted ASU 2014-09, Revenue from Contracts with Customers, as of January 1, 2019. All of the Company’s revenue from contracts with customers that are in the scope of the accounting guidance are recognized in non-interest income. The following table presents the Company’s sources of non-interest income, within the scope of the ASU, for the three months ended March 31 2019 and 2018 (dollars in thousands) : Quarter Ended March 31, 2019 2018 (1) Service charges on deposit accounts $ 819 $ 1,910 Prepaid third-party debit card income 1,257 908 Other service charges and fees 278 2,494 Total $ 2,354 $ 5,312 (1) The Company elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation. A description of the Company’s revenue streams accounted for under the accounting guidance follows: Debit card income: The Bank serves as a debit card issuer to and contracts with various program managers to issue debit cards to support various products including, but not limited to, healthcare marketing, general purpose reloadable cards, payroll cards, disbursement of government payments, payment of federal benefits and E-Wallet and push payments for sellers in online marketplaces. The Bank earns initial set-up fees for these programs as well as fees for transactions processed. The Bank receives transaction data at the end of each month for debit card services rendered, at which time revenue is recognized. Prior to the adoption of the ASU, at December 31, 2018, upfront fees were recognized under the percentage of completion method. Since the performance obligation of setting up the program to go live is satisfied at a point in time, the revenue is deemed to be recognized once the performance obligation has been completed and the program is live, thereby creating an asset available for the customer to use. The ASU provides the option to elect the modified retrospective method as a transition approach and the Bank has elected to use this method to comply with the new guidance under the ASU. Accordingly, the Company recorded an adjustment to opening retained earnings of $117,000 to reflect the change in accounting under the ASU. Beginning January 1, 2019 initial set-up fees will be deferred until the program goes live. Service charges on deposit accounts: The Bank offers business and personal retail products and services, which include, but are not limited to: online banking, mobile banking, ACH, and remote deposit capture. A standard deposit contract exists between the Bank and all deposit customers. The Bank earns fees from its deposit customers for transaction-based (such as ATM use fees, stop payment charges, statement rendering, and ACH fees), account maintenance, and overdraft services. Transaction-based fees are recognized at the time the transaction is executed as that is the point in time the Bank fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Other service charges: The primary component of other service charges relates to foreign exchange (“FX”) conversion fees. The Bank ‘outsources’ FX conversion for foreign currency transactions to 3 different banks, namely, PNC, BVBA and PCBB. The Bank earns a portion of FX conversion fee that the customer charges to process an FX transaction. Revenue is recognized at the end of the month, once the customer has remitted the transaction information to the Bank. |
SUMMARY OF RECENT ACCOUNTING _2
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
ORGANIZATION | 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 Company and the Bank are subject to the regulations of certain state and federal agencies and, accordingly, are 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 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 8 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 months ended March 31, 2019 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, 2018. |
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 Financial Accounting Standards Board (“FASB”) deferred the effective date of the ASU by one year which means ASU 2014‑09 is effective for the Company beginning January 1, 2019. The Company adopted the new revenue guidance as January 1, 2019, using the five-step model prescribed by the ASU and described above. Management evaluated the Company’s revenue streams and recorded an adjustment to opening retained earnings of $117,000 in accordance with the modified retrospective method allowed by the ASU. 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. The Company adopted these ASUs on January 1, 2019. The Company has evaluated the impact of ASU 2016‑01 and 2018‑03 and has recorded $68,000, net of tax, as an adjustment to opening retained earnings and accumulated other comprehensive income in accordance with the modified retrospective method allowed by the ASU. 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 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 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 material 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 material impact on its consolidated financial statements. On February 14, 2018 the FASB issued final guidance in the form of ASU 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. ASU 2018-02 became effective for the Company on January 1, 2019 and the Company opted not to make the reclassification under ASU 2018-02. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
INVESTMENT SECURITIES [Abstract] | |
Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity | Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At March 31, 2019 Cost Gains Losses Fair Value Debt securities available-for-sale Residential mortgage-backed securities $ 20,914 $ 35 $ (243) $ 20,706 Residential collateralized mortgage obligations 2,107 — (76) 2,031 Commercial mortgage-backed securities 5,859 66 — 5,925 Municipal bond 1,068 1 — 1,069 Total securities available-for-sale $ 29,948 $ 102 $ (319) $ 29,731 Held-to-maturity securities: Residential mortgage-backed securities $ 4,367 $ — $ (97) $ 4,270 Foreign government securities 25 — — 25 Total securities held-to-maturity $ 4,392 $ — $ (97) $ 4,295 Marketable equity securities: CRA Mutual Fund $ 2,220 $ — $ (71) $ 2,149 Total non-trading equity investment securities $ 2,220 $ — $ (71) $ 2,149 Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2018 Cost Gains Losses Fair Value Debt securities available-for-sale Residential mortgage-backed securities $ 21,880 $ 3 $ (486) $ 21,397 Residential collateralized mortgage obligations 2,213 — (97) 2,116 Commercial mortgage-backed securities 5,874 — (25) 5,849 Municipal bond 1,074 3 — 1,077 Total securities available-for-sale $ 31,041 $ 6 $ (608) $ 30,439 Held-to-maturity securities: Residential mortgage-backed securities $ 4,546 $ — $ (168) $ 4,378 Foreign government securities 25 — — 25 Total securities held-to-maturity $ 4,571 $ — $ (168) $ 4,403 Marketable equity securities: CRA Mutual Fund $ 2,208 $ — $ (98) $ 2,110 Total non-trading equity investment securities $ 2,208 $ — $ (98) $ 2,110 |
Schedule of amortized cost and fair value of debt securities classified by contractual maturity | Held to Maturity Available for Sale At March 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 25 $ 25 $ 256 $ 256 One to five years — — — — Five to ten years — — — — Due after ten years — — 812 813 Total $ 25 $ 25 $ 1,068 $ 1,069 Residential mortgage-backed securities $ 4,367 $ 4,270 $ 20,914 $ 20,706 Residential collateralized mortgage obligations — — 2,107 2,031 Commercial mortgage-backed securities — — 5,859 5,925 Total Securities $ 4,392 $ 4,295 $ 29,948 $ 29,731 Held to Maturity Available for Sale At December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 25 $ 25 $ 257 $ 258 One to five years — — — — Five to ten years — — — — Due after ten years — — 817 819 Total $ 25 $ 25 $ 1,074 $ 1,077 Residential mortgage-backed securities $ 4,546 $ 4,378 $ 21,880 $ 21,397 Residential collateralized mortgage obligations — — 2,213 2,116 Commercial mortgage-backed securities — — 5,874 5,849 Total Securities $ 4,571 $ 4,403 $ 31,041 $ 30,439 |
Schedule of securities with unrealized/unrecognized losses | Less than 12 Months 12 months or more Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At March 31, 2019 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available-for-sale Residential mortgage-backed securities $ — $ — $ 15,812 $ (243) $ 15,812 $ (243) Residential collateralized mortgage obligations — — 2,031 (76) 2,031 (76) Total securities available-for-sale $ — $ — $ 17,843 $ (319) $ 17,843 $ (319) Held-to-maturity securities: Residential mortgage-backed securities $ — $ — $ 4,270 $ (97) $ 4,270 $ (97) Total securities held-to-maturity $ — $ — $ 4,270 $ (97) $ 4,270 $ (97) Less than 12 Months 12 months or more Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At December 31, 2018 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available-for-sale Residential mortgage-backed securities $ 10,374 $ (73) $ 7,774 $ (413) $ 18,148 $ (486) Residential collateralized mortgage obligations — — 2,116 (97) 2,116 (97) Commercial mortgage-backed securities — — 5,849 (25) 5,849 (25) Total securities available-for-sale $ 10,374 $ (73) $ 15,739 $ (535) $ 26,113 $ (608) Held-to-maturity securities: Residential mortgage-backed securities $ — $ — $ 4,378 $ (168) $ 4,378 $ (168) Total securities held-to-maturity $ — $ — $ 4,378 $ (168) $ 4,378 $ (168) |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |
Schedule of Loans Receivable | March 31, 2019 December 31, 2018 Real estate Commercial $ 1,134,243 $ 949,778 Construction 46,245 42,540 Multifamily 327,456 307,126 One-to-four family 78,943 79,423 Total real estate loans 1,586,887 1,378,867 Commercial and industrial 421,503 381,692 Consumer 96,894 106,790 Total loans 2,105,284 1,867,349 Deferred fees (2,864) (2,133) Loans, net of deferred fees and unamortized costs 2,102,420 1,865,216 Allowance for loan losses (20,834) (18,942) Balance at the end of the period $ 2,081,586 $ 1,846,274 |
Schedule of activity in the allowance for loan losses by segment | Commercial Commercial Multi One-to-four Three months ended March 31, 2019 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Beginning balance $ 9,037 $ 6,257 $ 625 $ 2,047 $ 228 $ 748 $ 18,942 Provision for loan losses 1,848 (4,077) 22 64 80 32 (2,031) Loans charged-off — (273) — — — (74) (347) Recoveries — 4,270 — — — — 4,270 Total ending allowance balance $ 10,885 $ 6,177 $ 647 $ 2,111 $ 308 $ 706 $ 20,834 Commercial Commercial Multi One-to-four Three months ended March 31, 2018 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Beginning balance $ 7,136 $ 5,578 $ 519 $ 1,156 $ 138 $ 360 $ 14,887 Provision for loan losses 611 277 (16) 54 245 306 1,477 Loans charged-off — (71) — — — (86) (157) Recoveries 53 — — — — — 53 Total ending allowance balance $ 7,800 $ 5,784 $ 503 $ 1,210 $ 383 $ 580 $ 16,260 |
Schedule of allowance for loan losses and the recorded investment in loans | Commercial Commercial Multi One-to-four At March 31, 2019 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ 70 $ 53 $ 123 Collectively evaluated for impairment 10,885 6,177 647 2,111 238 653 20,711 Total ending allowance balance $ 10,885 $ 6,177 $ 647 $ 2,111 $ 308 $ 706 $ 20,834 Loans: Individually evaluated for impairment $ 379 $ — $ — $ — $ 1,070 $ 106 $ 1,555 Collectively evaluated for impairment 1,133,864 421,503 46,245 327,456 77,873 96,788 2,103,729 Total ending loan balance $ 1,134,243 $ 421,503 $ 46,245 $ 327,456 $ 78,943 $ 96,894 $ 2,105,284 Commercial Commercial Multi One-to-four At December 31, 2018 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 44 $ 44 Collectively evaluated for impairment 9,037 6,257 625 2,047 228 704 18,898 Total ending allowance balance $ 9,037 $ 6,257 $ 625 $ 2,047 $ 228 $ 748 $ 18,942 Loans: Individually evaluated for impairment $ 383 $ — $ — $ — $ 1,078 $ 89 $ 1,550 Collectively evaluated for impairment 949,395 381,692 42,540 307,126 78,345 106,701 1,865,799 Total ending loan balance $ 949,778 $ 381,692 $ 42,540 $ 307,126 $ 79,423 $ 106,790 $ 1,867,349 |
Schedule of impaired by class of loans | Unpaid Principal Allowance for Loan Average Recorded Interest Income At March 31, 2019 Balance Recorded Investment Losses Allocated Investment Recognized With an allowance recorded: One-to-four family $ $ $ $ Consumer Total $ 761 $ 631 $ 123 $ 360 $ 5 Without an allowance recorded: Commercial real estate $ 379 $ 379 $ — $ 381 $ 4 One-to-four family 692 545 — 811 11 Total $ 1,071 $ 924 $ — $ 1,192 $ 15 Unpaid Principal Allowance for Loan Average Recorded Interest Income At December 31, 2018 Balance Recorded Investment Losses Allocated Investment Recognized With an allowance recorded: One-to-four family $ — $ — $ — $ 111 $ — Consumer 105 89 44 157 7 Total $ 105 $ 89 $ 44 $ 268 $ 7 Without an allowance recorded: Commercial real estate $ 1,355 $ 1,078 $ — $ 1,477 $ 59 One-to-four family 1,740 1,461 — 2,948 146 Total $ 3,094 $ 2,539 $ — $ 4,424 $ 205 |
Schedule of Recorded Investment in Non-Accrual Loans | At March 31, 2019 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ — $ 1,044 Consumer 68 386 Total $ 68 $ 1,430 At December 31, 2018 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ — $ 239 Consumer 50 — Total $ 50 $ 239 |
Schedule of aging of the recorded investment in past due loans | Greater 30-59 60-89 than 90 Total past Current At March 31, 2019 Days Days days due loans Total Commercial real estate $ 96 $ — $ — $ 96 $ 1,134,147 $ 1,134,243 Commercial & industrial — 159 1,044 1,203 420,300 421,503 Construction — — — — 46,245 46,245 Multifamily — — — — 327,456 327,456 One-to-four family — — — — 78,943 78,943 Consumer 326 224 454 1,004 95,890 96,894 Total $ 422 $ 383 $ 1,498 $ 2,303 $ 2,102,981 $ 2,105,284 Greater 30-59 60-89 than 90 Total past Current At December 31, 2018 Days Days days due loans Total Commercial real estate $ — $ — $ — $ — $ 949,778 $ 949,778 Commercial & industrial 1,670 95 239 2,004 379,688 381,692 Construction — — — — 42,540 42,540 Multifamily — — — — 307,126 307,126 One-to-four family 870 — — 870 78,553 79,423 Consumer 119 43 50 212 106,578 106,790 Total $ 2,659 $ 138 $ 289 $ 3,086 $ 1,864,263 $ 1,867,349 |
Schedule of loans modified as troubled debt restructurings | The following tables present the recorded investment in TDRs by class of loans as of March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Troubled debt restructurings: Real Estate: Commercial $ 379 $ 383 One-to-four family 1,070 1,078 Consumer 38 39 Total troubled debt restructurings $ 1,487 $ 1,500 |
Schedule of risk category of loans by class of loans | Special At March 31, 2019 Pass Mention Substandard Total Commercial real estate $ 1,133,864 $ 379 $ — $ 1,134,243 Commercial & industrial 420,459 — 1,044 421,503 Construction 46,245 — — 46,245 Multifamily 327,456 — — 327,456 Total $ 1,928,024 $ 379 $ 1,044 $ 1,929,447 Special At December 31, 2018 Pass Mention Substandard Total Commercial real estate $ 949,395 $ 383 $ — $ 949,778 Commercial & industrial 380,196 1,496 — 381,692 Construction 42,540 — — 42,540 Multifamily 307,126 — — 307,126 Total $ 1,679,257 $ 1,879 $ — $ 1,681,136 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
EARNINGS PER SHARE [Abstract] | |
Schedule of earnings per share | Three Months Ended March 31, 2019 2018 Basic Net income per consolidated statements of income $ 8,531 $ 6,291 Less: Earnings allocated to participating securities (135) (53) Net income available to common stockholders $ 8,396 $ 6,238 Weighted average common shares outstanding including participating securities 8,281,325 8,192,798 Less: Weighted average participating securities (130,873) (68,770) Weighted average common shares outstanding 8,150,452 8,124,028 Basic earnings per common share $ 1.03 $ 0.77 Diluted Net income allocated to common stockholders $ 8,396 $ 6,238 Weighted average common shares outstanding for basic earnings per common share 8,150,452 8,124,028 Add: Dilutive effects of assumed exercise of stock options 114,740 151,215 Add: Dilutive effects of assumed vesting of performance based restricted stock 20,028 — Average shares and dilutive potential common shares 8,285,220 8,275,243 Dilutive earnings per common share $ 1.01 $ 0.75 |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
STOCK COMPENSATION PLAN [Abstract] | |
Schedule of status of the stock option plan | Three Months Ended March 31, 2019 Number of Weighted Average Options Exercise Price Outstanding, beginning of period 231,000 $ 18.00 Granted — — Exercised — — Cancelled/forfeited — — Outstanding, end of period 231,000 $ 18.00 Options vested and exercisable at end of period 231,000 $ 18.00 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 Exercise Prices March 31, 2019 Remaining Contractual Life Exercise Price $10 – 20 231,000 5.13 $ 18.00 $21 – 30 — — $ — $10 – 30 231,000 5.13 $ 18.00 |
Schedule of non-vested restricted stock awards | Three Months Ended March 31, 2019 Weighted Average Number of Shares Grant Date Fair Value Outstanding, beginning of period 53,957 $ 21.46 Granted 106,423 35.36 Forfeited — — Vested (12,998) 22.09 Outstanding at end of period 147,382 $ 31.44 |
Schedule of share-based compensation performance restricted stock units | For the three months ended March 31, 2019 Weighted average service inception date fair value of award shares $ 4,064,295 Minimum aggregate share payout 12,000 Maximum aggregate share payout 90,000 Likely aggregate share payout 90,000 Compensation expense recognized $ 357,503 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Fair Value Measurement using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) At March 31, 2019 Residential mortgage-backed securities $ 20,706 $ — $ 20,706 $ — Residential collateralized mortgage obligations 2,031 — 2,031 — Commercial mortgage-backed securities 5,925 — 5,925 — Municipal bond 1,069 — 1,069 — CRA Mutual Fund 2,149 2,149 — — Fair Value Measurement using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) At December 31, 2018 Residential mortgage-backed securities $ 21,397 $ — $ 21,397 $ — Residential collateralized mortgage obligations 2,116 — 2,116 — Commercial mortgage-backed securities 5,849 — 5,849 — Municipal bond 1,077 — 1,077 — CRA Mutual Fund 2,110 2,110 — — |
Schedule of carrying amount and estimated fair values of financial instruments | Carrying amount and estimated fair values of financial instruments at March 31, 2019 and December 31, 2018 were as follows (dollars in thousands): Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At March 31, 2019 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Assets: Cash and due from banks $ 9,372 $ 9,372 $ — $ — $ 9,372 Overnight deposits 346,674 346,674 — — 346,674 Debt securities available for sale 29,731 — 29,731 — 29,731 Securities held to maturity 4,392 — 4,295 — 4,295 Marketable equity securities 2,149 2,149 — — 2,149 Loans, net 2,081,586 — — 2,060,691 2,060,691 Other investments FRB Stock 7,265 N/A N/A N/A N/A FHLB Stock 10,887 N/A N/A N/A N/A SBA Loan Fund 5,000 N/A N/A N/A N/A Disability Fund 500 — 500 — 500 Accrued interest receivable 6,396 — 139 6,257 6,396 Financial Liabilities: Non-interest-bearing demand deposits $ 915,499 $ 915,499 $ — $ — $ 915,499 Money market and savings deposits 938,398 938,398 — — 938,398 Time deposits 112,233 — 112,366 — 112,366 Federal Home Loan Bank of New York advances 215,000 — 215,009 — 215,009 Trust preferred securities payable 20,620 — — 20,020 20,020 Subordinated debt, net of issuance cost 24,559 — 25,125 — 25,125 Accrued interest payable 984 67 671 246 984 Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At December 31, 2018 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Assets: Cash and due from banks $ 9,246 $ 9,246 $ — $ — $ 9,246 Overnight deposits 223,704 223,704 — — 223,704 Debt securities available for sale 30,439 — 30,439 — 30,349 Securities held to maturity 4,571 — 4,403 — 4,403 Marketable equity securities 2,110 2,110 — — 2,110 Loans, net 1,846,274 — — 1,796,462 1,796,462 Other investments — — — — — FRB Stock 7,250 N/A N/A N/A N/A FHLB Stock 9,537 N/A N/A N/A N/A SBA Loan Fund 5,000 N/A N/A N/A N/A Disability Fund 500 — 500 — 500 Accrued interest receivable 5,507 — 127 5,380 5,507 Financial liabilities: Non-interest-bearing demand deposits $ 798,563 $ 798,563 $ — $ — $ 798,563 Money market and savings deposits 764,990 764,990 — — 764,990 Time deposits 97,001 — 96,859 — 96,859 Federal Home Loan Bank of New York advances 185,000 — 184,999 — 184,999 Trust preferred securities payable 20,620 — — 19,821 19,821 Subordinated debt, net of issuance cost 24,545 — 25,125 — 25,125 Accrued interest payable 1,282 13 1,044 225 1,282 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | |
Schedule of changes in accumulated other comprehensive loss, net of tax | Three Months Ended March 31, 2019 2018 Beginning balance $ (473) $ (206) Cumulative effect of adopting new accounting standard ASU 2016-01, net of taxes 68 — Balance net of cumulative effect of adopting ASU 2016-01 (405) (206) Total unrealized gains/loss on securities available for sale, net of taxes 258 (322) Net current period other comprehensive income (loss) 258 (322) Ending balance $ (147) $ (528) |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK [Abstract] | |
Schedule of off-balance-sheet financial instruments | At March 31, 2019 At December 31, 2018 Variable Variable Fixed Rate Rate Fixed Rate Rate Undrawn lines of credit $ 13,655 $ 170,430 $ 7,737 $ 130,547 Letters of credit 36,231 — 34,351 — $ 49,886 $ 170,430 $ 42,088 $ 130,547 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract] | |
Summary of bank’s sources of non-interest income | The following table presents the Company’s sources of non-interest income, within the scope of the ASU, for the three months ended March 31 2019 and 2018 (dollars in thousands) : Quarter Ended March 31, 2019 2018 (1) Service charges on deposit accounts $ 819 $ 1,910 Prepaid third-party debit card income 1,257 908 Other service charges and fees 278 2,494 Total $ 2,354 $ 5,312 (1) The Company elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation. |
SUMMARY OF RECENT ACCOUNTING _3
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Details) - Restatement Adjustment | Jan. 01, 2019USD ($) |
ASU 2014-09 | |
Adjustment to opening retained earnings | $ 117,000 |
ASU 2016-01 and 2018-03 | |
Adjustment to opening retained earnings | $ 68,000 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities available-for-sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 29,948 | $ 31,041 |
Gross Unrealized/Unrecognized Gains | 102 | 6 |
Gross Unrealized/Unrecognized Losses | (319) | (608) |
Debt securities available for sale, at fair value | 29,731 | 30,439 |
Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 20,914 | 21,880 |
Gross Unrealized/Unrecognized Gains | 35 | 3 |
Gross Unrealized/Unrecognized Losses | (243) | (486) |
Debt securities available for sale, at fair value | 20,706 | 21,397 |
Residential collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,107 | 2,213 |
Gross Unrealized/Unrecognized Gains | 0 | 0 |
Gross Unrealized/Unrecognized Losses | (76) | (97) |
Debt securities available for sale, at fair value | 2,031 | 2,116 |
Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,859 | 5,874 |
Gross Unrealized/Unrecognized Gains | 66 | 0 |
Gross Unrealized/Unrecognized Losses | 0 | (25) |
Debt securities available for sale, at fair value | 5,925 | 5,849 |
Municipal bond | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,068 | 1,074 |
Gross Unrealized/Unrecognized Gains | 1 | 3 |
Gross Unrealized/Unrecognized Losses | 0 | 0 |
Debt securities available for sale, at fair value | $ 1,069 | $ 1,077 |
INVESTMENT SECURITIES (Schedu_2
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities held-to-maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 4,392 | $ 4,571 |
Gross Unrealized/Unrecognized Gains | 0 | 0 |
Gross Unrealized/Unrecognized Losses | (97) | (168) |
Total Securities | 4,295 | 4,403 |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 4,367 | 4,546 |
Gross Unrealized/Unrecognized Gains | 0 | 0 |
Gross Unrealized/Unrecognized Losses | (97) | (168) |
Total Securities | 4,270 | 4,378 |
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 (Schedu_3
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of marketable equity securities) (Details) - Equity securities - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 2,220 | $ 2,208 |
Gross Unrealized/Unrecognized Gains | 0 | 0 |
Gross Unrealized/Unrecognized Losses | 71 | 98 |
Fair Value | 2,149 | 2,110 |
CRA mutual fund | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 2,220 | 2,208 |
Gross Unrealized/Unrecognized Gains | 0 | 0 |
Gross Unrealized/Unrecognized Losses | 71 | 98 |
Fair Value | $ 2,149 | $ 2,110 |
INVESTMENT SECURITIES (Proceeds
INVESTMENT SECURITIES (Proceeds from sales and calls of securities and associated gains and losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
INVESTMENT SECURITIES [Abstract] | ||
Proceeds from calls of securities | $ 0 | $ 0 |
INVESTMENT SECURITIES (Schedu_4
INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Within one year | $ 25,000 | $ 25,000 |
One to five years | 0 | 0 |
Five to ten years | 0 | 0 |
Due after ten years | 0 | 0 |
Amortized Cost, total | 25,000 | 25,000 |
Amortized Cost, Held to maturity | 4,392,000 | 4,571,000 |
Fair Value | ||
Within one year | 25,000 | 25,000 |
One to five years | 0 | 0 |
Five to ten years | 0 | 0 |
Due after ten years | 0 | 0 |
Fair Value, total | 25,000 | 25,000 |
Fair Value, Held to maturity | 4,295,000 | 4,403,000 |
Amortized Cost | ||
Within one year | 256,000 | 257,000 |
One to five years | 0 | 0 |
Five to ten years | 0 | 0 |
Due after ten years | 812,000 | 817,000 |
Amortized Cost, total | 1,068,000 | 1,074,000 |
Amortized Cost, Available-for-sale Securities | 29,948,000 | 31,041,000 |
Fair Value | ||
Within one year | 256,000 | 258,000 |
One to five years | 0 | 0 |
Five to ten years | 0 | 0 |
Due after ten years | 813,000 | 819,000 |
Fair Value, total | 1,069,000 | 1,077,000 |
Fair Value, Available-for-sale Securities | 29,731,000 | 30,439,000 |
Securities pledged fair value | 0 | 0 |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost, Held to maturity | 4,367,000 | 4,546,000 |
Fair Value | ||
Fair Value, Held to maturity | 4,270,000 | 4,378,000 |
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 20,914,000 | 21,880,000 |
Fair Value | ||
Fair Value, Available-for-sale Securities | 20,706,000 | 21,397,000 |
Residential collateralized mortgage obligations | ||
Amortized Cost | ||
Amortized Cost, Held to maturity | 0 | 0 |
Fair Value | ||
Fair Value, Held to maturity | 0 | 0 |
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 2,107,000 | 2,213,000 |
Fair Value | ||
Fair Value, Available-for-sale Securities | 2,031,000 | 2,116,000 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost, Held to maturity | 0 | 0 |
Fair Value | ||
Fair Value, Held to maturity | 0 | 0 |
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 5,859,000 | 5,874,000 |
Fair Value | ||
Fair Value, Available-for-sale Securities | $ 5,925,000 | $ 5,849,000 |
INVESTMENT SECURITIES (Schedu_5
INVESTMENT SECURITIES (Schedule of Securities with Unrealized Losses) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | |
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | $ 0 | $ 10,374 |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | (73) |
12 months or more, Estimated Fair Value | 17,843 | 15,739 |
12 months or more, Unrealized/Unrecognized Losses | (319) | (535) |
Total, Estimated Fair Value | 17,843 | 26,113 |
Total, Unrealized/Unrecognized Losses | (319) | (608) |
Held-to-maturity Securities | ||
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 | 4,270 | 4,378 |
12 months or more, Unrealized/Unrecognized Losses | (97) | (168) |
Total, Estimated Fair Value | 4,270 | 4,378 |
Total, Unrealized Losses | (97) | (168) |
Other-than-temporary impairment loss recognized | $ 0 | $ 0 |
Number of securities of one issuer | item | 0 | 0 |
Residential mortgage-backed securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | $ 0 | $ 10,374 |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | (73) |
12 months or more, Estimated Fair Value | 15,812 | 7,774 |
12 months or more, Unrealized/Unrecognized Losses | (243) | (413) |
Total, Estimated Fair Value | 15,812 | 18,148 |
Total, Unrealized/Unrecognized Losses | (243) | (486) |
Held-to-maturity Securities | ||
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 | 4,270 | 4,378 |
12 months or more, Unrealized/Unrecognized Losses | (97) | (168) |
Total, Estimated Fair Value | 4,270 | 4,378 |
Total, Unrealized Losses | (97) | (168) |
Residential collateralized mortgage obligations | ||
Available-for-sale Securities | ||
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 | 2,031 | 2,116 |
12 months or more, Unrealized/Unrecognized Losses | (76) | (97) |
Total, Estimated Fair Value | 2,031 | 2,116 |
Total, Unrealized/Unrecognized Losses | $ (76) | (97) |
Commercial mortgage-backed securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 0 | |
Less than 12 Months, Unrealized/Unrecognized Losses | 0 | |
12 months or more, Estimated Fair Value | 5,849 | |
12 months or more, Unrealized/Unrecognized Losses | (25) | |
Total, Estimated Fair Value | 5,849 | |
Total, Unrealized/Unrecognized Losses | $ (25) |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loan Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 2,105,284 | $ 1,867,349 | ||
Deferred fees | (2,864) | (2,133) | ||
Loans, net of deferred fees and unamortized costs | 2,102,420 | 1,865,216 | ||
Allowance for loan losses | (20,834) | (18,942) | $ (16,260) | $ (14,887) |
Net loans | 2,081,586 | 1,846,274 | ||
Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 1,586,887 | 1,378,867 | ||
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 421,503 | 381,692 | ||
Allowance for loan losses | (6,177) | (6,257) | (5,784) | (5,578) |
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 96,894 | 106,790 | ||
Allowance for loan losses | (706) | (748) | (580) | (360) |
Commercial | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 1,134,243 | 949,778 | ||
Allowance for loan losses | (10,885) | (9,037) | (7,800) | (7,136) |
Construction | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 46,245 | 42,540 | ||
Allowance for loan losses | (647) | (625) | (503) | (519) |
Multifamily | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 327,456 | 307,126 | ||
Allowance for loan losses | (2,111) | (2,047) | (1,210) | (1,156) |
One to four family | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 78,943 | 79,423 | ||
Allowance for loan losses | $ (308) | $ (228) | $ (383) | $ (138) |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Activity in the Allowance for Loan Losses by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 18,942 | $ 14,887 |
Provision for loan losses | (2,031) | 1,477 |
Loans charged-off | (347) | (157) |
Recoveries | 4,270 | 53 |
Total ending allowance balance | 20,834 | 16,260 |
Real estate | Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 9,037 | 7,136 |
Provision for loan losses | 1,848 | 611 |
Loans charged-off | 0 | 0 |
Recoveries | 0 | 53 |
Total ending allowance balance | 10,885 | 7,800 |
Real estate | Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 625 | 519 |
Provision for loan losses | 22 | (16) |
Loans charged-off | 0 | 0 |
Recoveries | 0 | 0 |
Total ending allowance balance | 647 | 503 |
Real estate | Multifamily | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 2,047 | 1,156 |
Provision for loan losses | 64 | 54 |
Loans charged-off | 0 | 0 |
Recoveries | 0 | 0 |
Total ending allowance balance | 2,111 | 1,210 |
Real estate | One to four family | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 228 | 138 |
Provision for loan losses | 80 | 245 |
Loans charged-off | 0 | 0 |
Recoveries | 0 | 0 |
Total ending allowance balance | 308 | 383 |
Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 6,257 | 5,578 |
Provision for loan losses | (4,077) | 277 |
Loans charged-off | (273) | (71) |
Recoveries | 4,270 | 0 |
Total ending allowance balance | 6,177 | 5,784 |
Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 748 | 360 |
Provision for loan losses | 32 | 306 |
Loans charged-off | (74) | (86) |
Recoveries | 0 | 0 |
Total ending allowance balance | $ 706 | $ 580 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans by Impairment Method) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | $ 123 | $ 44 | ||
Collectively evaluated for impairment, Allowance for loan losses | 20,711 | 18,898 | ||
Total ending allowance balance | 20,834 | 18,942 | $ 16,260 | $ 14,887 |
Individually evaluated for impairment, Loans | 1,555 | 1,550 | ||
Collectively evaluated for impairment, Loans | 2,103,729 | 1,865,799 | ||
Total ending loan balance | 2,105,284 | 1,867,349 | ||
Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total ending loan balance | 1,586,887 | 1,378,867 | ||
Real estate | Commercial | ||||
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 | 10,885 | 9,037 | ||
Total ending allowance balance | 10,885 | 9,037 | 7,800 | 7,136 |
Individually evaluated for impairment, Loans | 379 | 383 | ||
Collectively evaluated for impairment, Loans | 1,133,864 | 949,395 | ||
Total ending loan balance | 1,134,243 | 949,778 | ||
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 | 647 | 625 | ||
Total ending allowance balance | 647 | 625 | 503 | 519 |
Individually evaluated for impairment, Loans | 0 | 0 | ||
Collectively evaluated for impairment, Loans | 46,245 | 42,540 | ||
Total ending loan balance | 46,245 | 42,540 | ||
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 | 2,111 | 2,047 | ||
Total ending allowance balance | 2,111 | 2,047 | 1,210 | 1,156 |
Individually evaluated for impairment, Loans | 0 | 0 | ||
Collectively evaluated for impairment, Loans | 327,456 | 307,126 | ||
Total ending loan balance | 327,456 | 307,126 | ||
Real estate | One to four family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 70 | 0 | ||
Collectively evaluated for impairment, Allowance for loan losses | 238 | 228 | ||
Total ending allowance balance | 308 | 228 | 383 | 138 |
Individually evaluated for impairment, Loans | 1,070 | 1,078 | ||
Collectively evaluated for impairment, Loans | 77,873 | 78,345 | ||
Total ending loan balance | 78,943 | 79,423 | ||
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 | 6,177 | 6,257 | ||
Total ending allowance balance | 6,177 | 6,257 | 5,784 | 5,578 |
Individually evaluated for impairment, Loans | 0 | 0 | ||
Collectively evaluated for impairment, Loans | 421,503 | 381,692 | ||
Total ending loan balance | 421,503 | 381,692 | ||
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 53 | 44 | ||
Collectively evaluated for impairment, Allowance for loan losses | 653 | 704 | ||
Total ending allowance balance | 706 | 748 | $ 580 | $ 360 |
Individually evaluated for impairment, Loans | 106 | 89 | ||
Collectively evaluated for impairment, Loans | 96,788 | 106,701 | ||
Total ending loan balance | $ 96,894 | $ 106,790 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Impaired by Class of Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
With an allowance recorded: | ||
Unpaid Principal Balance | $ 761 | $ 105 |
Recorded Investment | 631 | 89 |
Allowance for Loan Losses Allocated | 123 | 44 |
Average Recorded Investment | 360 | 268 |
Interest Income Recognized | 5 | 7 |
Without an allowance recorded: | ||
Unpaid Principal Balance | 1,071 | 3,094 |
Recorded Investment | 924 | 2,539 |
Average Recorded Investment | 1,192 | 4,424 |
Interest Income Recognized | 15 | 205 |
One to four family | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 655 | |
Recorded Investment | 525 | |
Allowance for Loan Losses Allocated | 70 | |
Average Recorded Investment | 263 | 111 |
Interest Income Recognized | 3 | |
Without an allowance recorded: | ||
Unpaid Principal Balance | 692 | 1,740 |
Recorded Investment | 545 | 1,461 |
Average Recorded Investment | 811 | 2,948 |
Interest Income Recognized | 11 | 146 |
Real estate | Commercial | ||
Without an allowance recorded: | ||
Unpaid Principal Balance | 379 | 1,355 |
Recorded Investment | 379 | 1,078 |
Average Recorded Investment | 381 | 1,477 |
Interest Income Recognized | 4 | 59 |
Consumer | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 106 | 105 |
Recorded Investment | 106 | 89 |
Allowance for Loan Losses Allocated | 53 | 44 |
Average Recorded Investment | 97 | 157 |
Interest Income Recognized | $ 2 | $ 7 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Non-accrual Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 68 | $ 50 |
Loans Past Due Over 90 Days Still Accruing | 1,430 | 239 |
Troubled Debt Restructurings | 1,487 | 1,500 |
One to four family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Troubled Debt Restructurings | 1,070 | 1,078 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Troubled Debt Restructurings | 379 | 383 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 0 | 0 |
Loans Past Due Over 90 Days Still Accruing | 1,044 | 239 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 68 | 50 |
Loans Past Due Over 90 Days Still Accruing | 386 | 0 |
Troubled Debt Restructurings | $ 38 | $ 39 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Past Due Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 2,303 | $ 3,086 |
Loans not Past Due | 2,102,981 | 1,864,263 |
Total loans | 2,105,284 | 1,867,349 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 422 | 2,659 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 383 | 138 |
Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,498 | 289 |
Real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,586,887 | 1,378,867 |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 96 | 0 |
Loans not Past Due | 1,134,147 | 949,778 |
Total loans | 1,134,243 | 949,778 |
Real estate | Commercial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 96 | 0 |
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 | 0 |
Real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Loans not Past Due | 46,245 | 42,540 |
Total loans | 46,245 | 42,540 |
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 | 327,456 | 307,126 |
Total loans | 327,456 | 307,126 |
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 | 870 |
Loans not Past Due | 78,943 | 78,553 |
Total loans | 78,943 | 79,423 |
Real estate | One to four family | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 870 |
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 | 1,203 | 2,004 |
Loans not Past Due | 420,300 | 379,688 |
Total loans | 421,503 | 381,692 |
Commercial and industrial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 1,670 |
Commercial and industrial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 159 | 95 |
Commercial and industrial | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,044 | 239 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,004 | 212 |
Loans not Past Due | 95,890 | 106,578 |
Total loans | 96,894 | 106,790 |
Consumer | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 326 | 119 |
Consumer | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 224 | 43 |
Consumer | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 454 | $ 50 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans by Risk Category) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 2,105,284 | $ 1,867,349 |
Commercial Construction and Multifamily Real Estate Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,929,447 | 1,681,136 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,928,024 | 1,679,257 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 379 | 1,879 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,044 | |
Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,586,887 | 1,378,867 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,134,243 | 949,778 |
Real estate | Commercial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,133,864 | 949,395 |
Real estate | Commercial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 379 | 383 |
Real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 46,245 | 42,540 |
Real estate | Construction | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 46,245 | 42,540 |
Real estate | Multifamily | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 327,456 | 307,126 |
Real estate | Multifamily | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 327,456 | 307,126 |
Real estate | One to four family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 78,943 | 79,423 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 421,503 | 381,692 |
Commercial and industrial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 420,459 | 380,196 |
Commercial and industrial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,496 | |
Commercial and industrial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,044 | |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 96,894 | $ 106,790 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructurings) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)loanitem | Mar. 31, 2018USD ($)item | Dec. 31, 2018USD ($)loan | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Net charge-offs (recoveries) | $ 3,900,000 | $ 104,000 | |
Recovered charged-off in taxi medallion loans | 4,200,000 | ||
Interest on non-accrual loans not recognized | 2,000 | $ 1,500 | |
Loans modified in troubled debt restructurings | $ 1,500,000 | $ 1,500,000 | |
Number of TDR loans during the period | loan | 0 | ||
Specific reserves modified in troubled debt restructurings | $ 89,000 | 19,000 | |
Number of contracts financing receivable modifications | item | 0 | 0 | |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans modified in troubled debt restructurings | $ 39,000 | ||
Number of TDR loans during the period | loan | 1 |
EARNINGS PER SHARE (Computation
EARNINGS PER SHARE (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic | ||
Net income per consolidated statements of income | $ 8,531 | $ 6,291 |
Less: Earnings allocated to participating securities | (135) | (53) |
Net income available to common stockholder | $ 8,396 | $ 6,238 |
Weighted average common shares outstanding including participating securities | 8,281,325 | 8,192,798 |
Less: Weighted average participating securities | (130,873) | (68,770) |
Weighted average common shares outstanding | 8,150,452 | 8,124,028 |
Basic earnings per common share (in dollars per share) | $ 1.03 | $ 0.77 |
Diluted | ||
Net income allocated to common shareholders | $ 8,396 | $ 6,238 |
Weighted average common shares outstanding for basic earnings per common share | 8,150,452 | 8,124,028 |
Average shares and dilutive potential common shares | 8,285,220 | 8,275,243 |
Diluted earnings per common share (in dollars per share) | $ 1.01 | $ 0.75 |
Stock Option | ||
Diluted | ||
Dilutive effects of assumed exercise of stock options/vesting of performance based restricted stock | 114,740 | 151,215 |
Restricted stock | ||
Diluted | ||
Dilutive effects of assumed exercise of stock options/vesting of performance based restricted stock | 20,028 |
STOCK COMPENSATION PLAN (Summar
STOCK COMPENSATION PLAN (Summary of the Status of the Stock Option Plan) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Number of Options | ||
Outstanding, beginning of period | 231,000 | |
Granted | 0 | 0 |
Exercised | 0 | |
Cancelled/forfeited | 0 | |
Outstanding, end of period | 231,000 | |
Options vested and exercisable at end of period | 231,000 | |
Weighted Average Exercise Price | ||
Outstanding, beginning of period | $ 18 | |
Granted | 0 | |
Exercised | 0 | |
Cancelled/forfeited | 0 | |
Outstanding, end of period | 18 | |
Options vested and exercisable at end of period | $ 18 | |
Weighted average remaining contractual life (years) | 5 years 1 month 17 days |
STOCK COMPENSATION PLAN (Summ_2
STOCK COMPENSATION PLAN (Summary of Stock Options Outstanding) (Details) | 3 Months Ended |
Mar. 31, 2019$ / 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 1 month 17 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 |
$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 | 231,000 |
Weighted Average Remaining Contractual Life | 5 years 1 month 17 days |
Weighted Average Exercise Price | $ 18 |
STOCK COMPENSATION PLAN (Summ_3
STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details) - Restricted stock | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of shares, Outstanding, beginning of period | shares | 53,957 |
Number of shares, Granted | shares | 106,423 |
Number of shares, Forfeited | shares | 0 |
Number of shares, Vested | shares | (12,998) |
Number of shares, Outstanding at end of period | shares | 147,382 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted Average Grant Date fair Value, January 1, 2019 | $ / shares | $ 21.46 |
Weighted Average Grant Date fair Value, Granted | $ / shares | 35.36 |
Weighted Average Grant Date fair Value, Forfeited | $ / shares | 0 |
Weighted Average Grant Date fair Value, Vested | $ / shares | 22.09 |
Weighted Average Grant Date fair Value, March 31, 2019 | $ / shares | $ 31.44 |
STOCK COMPENSATION PLAN (Summ_4
STOCK COMPENSATION PLAN (Summary of Performance Based Stock Awards) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate share payout | 90,000 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate share payout | 12,000 | |
Performance Restricted Share Units ("Prsus") | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period (in years) | 3 years | |
Weighted average service inception date fair value of award shares | $ 4,064,295 | |
Likely aggregate share payout | 90,000 | |
Compensation expense recognized | $ 357,503 | $ 0 |
STOCK COMPENSATION PLAN (Detail
STOCK COMPENSATION PLAN (Detail Textuals) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise of stock options (in shares) | 0 | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to non-vested stock options | $ 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.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 | ||
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 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment award, shares authorized, maximum | 1,483,000 | ||
Compensation cost related to stock awards | $ 0 | $ 0 | |
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 | ||
Incentive stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of exercise price over the fair value of the common stock | 100.00% | ||
Incentive stock options granted to any 10% stockholder | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of exercise price over the fair value of the common stock | 110.00% | ||
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment award, shares authorized, maximum | 628,719 | ||
Unrecognized compensation cost related to non-vested stock options | $ 2,900,000 | ||
Compensation cost related to stock awards | $ 229,000 | $ 293,000 | |
Number of shares, Granted | 106,423 | ||
Unrecognized compensation expense recognition period | 2 years 7 months 17 days | ||
Fair value of shares vested | $ 429,000 | ||
Restricted stock | Non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to stock awards | $ 100,000 | ||
Number of shares, Granted | 35,900 | ||
Vesting percentage | 33.00% | ||
Performance Restricted Share Units ("Prsus") | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of PRSUs awarded | 90,000 | ||
Additional PRSUs awarded | 0 | ||
Directors' fees | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to non-vested stock options | $ 1,100,000 | ||
Unrecognized compensation expense recognition period | 2 years 9 months |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 36,272 | $ 37,120 |
Amount of transfers of assets measured on a recurring basis out of Level 1 of the fair value hierarchy into Level 2 | 0 | |
Amount of transfers of assets measured on a recurring basis out of Level 2 of the fair value hierarchy into Level 1 | 0 | |
Fair value assets measured at fair value on a non-recurring basis | 0 | 0 |
Carrying Amount | Residential mortgage-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 20,706 | 21,397 |
Carrying Amount | Residential collateralized mortgage obligation | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 2,031 | 2,116 |
Carrying Amount | Commercial mortgage-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 5,925 | 5,849 |
Carrying Amount | Municipal bond | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,069 | 1,077 |
Carrying Amount | CRA mutual fund | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 2,149 | 2,110 |
Fair Value, Inputs, Level 1 | Residential mortgage-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Residential collateralized mortgage obligation | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Commercial mortgage-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Municipal bond | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | CRA mutual fund | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 2,149 | 2,110 |
Fair Value, Inputs, Level 2 | Residential mortgage-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 20,706 | 21,397 |
Fair Value, Inputs, Level 2 | Residential collateralized mortgage obligation | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 2,031 | 2,116 |
Fair Value, Inputs, Level 2 | Commercial mortgage-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 5,925 | 5,849 |
Fair Value, Inputs, Level 2 | Municipal bond | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,069 | 1,077 |
Fair Value, Inputs, Level 2 | CRA mutual fund | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Residential mortgage-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Residential collateralized mortgage obligation | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Commercial mortgage-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Municipal bond | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | CRA mutual fund | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Debt securities available for sale | $ 29,731 | $ 30,439 |
Securities held to maturity | 4,295 | 4,403 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 915,499 | 798,563 |
Federal Home Loan Bank of New York advances | 215,000 | 185,000 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 9,372 | 9,246 |
Overnight deposits | 346,674 | 223,704 |
Debt securities available for sale | 29,731 | 30,439 |
Securities held to maturity | 4,392 | 4,571 |
Marketable equity securities | 2,149 | 2,110 |
Loans, net | 2,081,586 | 1,846,274 |
Other investments | ||
FRB Stock | 7,265 | 7,250 |
FHLB Stock | 10,887 | 9,537 |
SBA Loan Fund | 5,000 | 5,000 |
Disability Fund | 500 | 500 |
Accrued interest receivable | 6,396 | 5,507 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 915,499 | 798,563 |
Money market and savings deposits | 938,398 | 764,990 |
Time deposits | 112,233 | 97,001 |
Federal Home Loan Bank of New York advances | 215,000 | 185,000 |
Trust preferred securities payable | 20,620 | 20,620 |
Subordinated debt, net of issuance cost | 24,559 | 24,545 |
Accrued interest payable | 984 | 1,282 |
Total Fair Value | ||
Financial assets: | ||
Cash and due from banks | 9,372 | 9,246 |
Overnight deposits | 346,674 | 223,704 |
Debt securities available for sale | 29,731 | 30,349 |
Securities held to maturity | 4,295 | 4,403 |
Marketable equity securities | 2,149 | 2,110 |
Loans, net | 2,060,691 | 1,796,462 |
Other investments | ||
Disability Fund | 500 | 500 |
Accrued interest receivable | 6,396 | 5,507 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 915,499 | 798,563 |
Money market and savings deposits | 938,398 | 764,990 |
Time deposits | 112,366 | 96,859 |
Federal Home Loan Bank of New York advances | 215,009 | 184,999 |
Trust preferred securities payable | 20,020 | 19,821 |
Subordinated debt, net of issuance cost | 25,125 | 25,125 |
Accrued interest payable | 984 | 1,282 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Cash and due from banks | 9,372 | 9,246 |
Overnight deposits | 346,674 | 223,704 |
Debt securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Marketable equity securities | 2,149 | 2,110 |
Loans, net | 0 | 0 |
Other investments | ||
Disability Fund | 0 | 0 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 915,499 | 798,563 |
Money market and savings deposits | 938,398 | 764,990 |
Time deposits | 0 | |
Federal Home Loan Bank of New York advances | 0 | 0 |
Trust preferred securities payable | 0 | 0 |
Subordinated debt, net of issuance cost | 0 | 0 |
Accrued interest payable | 67 | 13 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Overnight deposits | 0 | 0 |
Debt securities available for sale | 29,731 | 30,439 |
Securities held to maturity | 4,295 | 4,403 |
Marketable equity securities | 0 | |
Loans, net | 0 | 0 |
Other investments | ||
Disability Fund | 500 | 500 |
Accrued interest receivable | 139 | 127 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 0 | 0 |
Money market and savings deposits | 0 | |
Time deposits | 112,366 | 96,859 |
Federal Home Loan Bank of New York advances | 215,009 | 184,999 |
Trust preferred securities payable | 0 | 0 |
Subordinated debt, net of issuance cost | 25,125 | 25,125 |
Accrued interest payable | 671 | 1,044 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Overnight deposits | 0 | 0 |
Debt securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Marketable equity securities | 0 | |
Loans, net | 2,060,691 | 1,796,462 |
Other investments | ||
Disability Fund | 0 | 0 |
Accrued interest receivable | 6,257 | 5,380 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 0 | 0 |
Money market and savings deposits | 0 | |
Time deposits | 0 | |
Federal Home Loan Bank of New York advances | 0 | 0 |
Trust preferred securities payable | 20,020 | 19,821 |
Subordinated debt, net of issuance cost | 0 | 0 |
Accrued interest payable | $ 246 | $ 225 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (473) | |||
Balance net of cumulative effect of adopting ASU 2016-01 | (473) | |||
Net current period other comprehensive loss | 258 | $ (322) | ||
Ending balance | (147) | |||
AOCI (Loss), Net | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (473) | (206) | ||
Balance net of cumulative effect of adopting ASU 2016-01 | (473) | (206) | $ (528) | |
Total unrealized gains/loss on securities available for sale, net of taxes | 258 | (322) | ||
Net current period other comprehensive loss | 258 | (322) | ||
Ending balance | $ (147) | $ (528) | ||
AOCI (Loss), Net | ASU 2016-01 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative effect of adopting new accounting standard ASU 2016-01, net of taxes | $ (68) | $ 0 | ||
Balance net of cumulative effect of adopting ASU 2016-01 | $ (405) |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Outstanding following off-balance-sheet financial instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 49,886 | $ 42,088 |
Variable Rate | 170,430 | 130,547 |
Undrawn lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 13,655 | 7,737 |
Variable Rate | 170,430 | 130,547 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 36,231 | 34,351 |
Variable Rate | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Detail Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 49,886 | $ 42,088 |
Maturity of stand by letters of credit and time deposits | P1Y | |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed interest rate off-balance-sheet financial instruments | 3.00% | 3.00% |
Variable interest rate off-balance-sheet financial instrument | 4.50% | 4.50% |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed interest rate off-balance-sheet financial instruments | 5.60% | 5.60% |
Variable interest rate off-balance-sheet financial instrument | 9.50% | 9.50% |
Commitments term | 2 years | |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 36,231 | $ 34,351 |
Amount of off-balance-sheet financial instruments collateral received | $ 29,800 | $ 23,000 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of non-interest income) (Details) $ in Thousands | Jan. 01, 2019USD ($) | Mar. 31, 2019USD ($)item | Mar. 31, 2018USD ($) |
Unrealized gain/loss of equity securities | $ 39 | ||
Total non-interest income | 2,393 | $ 5,312 | |
Total non-interest income | 2,354 | 5,312 | |
ASU 2014-09 | |||
Adjustment to opening retained earnings | (117) | ||
ASU 2014-09 | Restatement Adjustment | |||
Adjustment to opening retained earnings | $ 117 | ||
Service charges on deposit accounts | |||
Non-interest income | 819 | 1,910 | |
Prepaid third-party debit card income | |||
Non-interest income | 1,257 | 908 | |
Other service charges and fees | |||
Non-interest income | $ 278 | $ 2,494 | |
Number of banks where bank outsources’ FX conversion for foreign currency transactions | item | 3 |