Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Document And Entity Information (Abstract) | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity Registrant Name | Metropolitan Bank Holding Corp. | |
Entity File Number | 001-38282 | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-4042724 | |
Entity Address, Address Line One | 99 Park Avenue | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10016 | |
City Area Code | 212 | |
Local Phone Number | 659-0600 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MCB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,343,736 | |
Entity Central Index Key | 0001476034 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 9,432 | $ 8,692 |
Overnight deposits | 1,125,589 | 855,613 |
Total cash and cash equivalents | 1,135,021 | 864,305 |
Investment securities available for sale, at fair value | 479,988 | 266,096 |
Investment securities held to maturity (estimated fair value of $2,557 and $2,827 at March 31, 2021 and December 31, 2020 respectively) | 2,492 | 2,760 |
Equity investment securities | 2,281 | 2,313 |
Total securities | 484,761 | 271,169 |
Other investments | 11,638 | 11,597 |
Loans, net of deferred fees and unamortized costs | 3,237,664 | 3,137,053 |
Allowance for loan losses | (35,502) | (35,407) |
Net loans | 3,202,162 | 3,101,646 |
Receivables related to global payments group, net | 38,356 | 27,259 |
Accrued interest receivable | 13,982 | 13,249 |
Premises and equipment, net | 13,756 | 13,475 |
Prepaid expenses and other assets | 13,392 | 18,388 |
Goodwill | 9,733 | 9,733 |
Total assets | 4,922,801 | 4,330,821 |
Deposits: | ||
Noninterest-bearing demand deposits | 2,167,899 | 1,726,135 |
Interest-bearing deposits | 2,258,818 | 2,103,471 |
Total deposits | 4,426,717 | 3,829,606 |
Trust preferred securities | 20,620 | 20,620 |
Subordinated debt, net of issuance cost | 24,670 | 24,657 |
Secured borrowing | 36,475 | 36,964 |
Accounts payable, accrued expenses and other liabilities | 42,737 | 61,645 |
Accrued interest payable | 563 | 712 |
Prepaid third-party debit cardholder balances | 22,802 | 15,830 |
Total liabilities | 4,574,584 | 3,990,034 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 25,000,000 shares authorized, 8,345,032 and 8,295,272 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 83 | 82 |
Additional paid in capital | 217,384 | 218,899 |
Retained earnings | 132,947 | 120,830 |
Accumulated other comprehensive income (loss), net of tax effect | (2,200) | 973 |
Total stockholders' equity | 348,217 | 340,787 |
Total liabilities and stockholders' equity | 4,922,801 | 4,330,821 |
Class B Preferred Stock | ||
Stockholders' equity: | ||
Class B preferred stock, $0.01 par value, authorized 2,000,000 shares, 272,636 issued and outstanding at March 31, 2021 and December 31, 2020 | 3 | 3 |
Total stockholders' equity | $ 3 | $ 3 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Securities held to maturity | $ 2,557 | $ 2,827 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 8,345,032 | 8,295,272 |
Common stock, shares outstanding | 8,345,032 | 8,295,272 |
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 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest and dividend income: | ||
Loans, including fees | $ 36,840 | $ 32,827 |
Securities | 771 | 1,372 |
Money market funds | 30 | |
Overnight deposits | 344 | 1,593 |
Other interest and dividends | 151 | 245 |
Total interest income | 38,106 | 36,067 |
Interest expense: | ||
Deposits | 3,171 | 5,767 |
Borrowed funds | 736 | |
Trust preferred securities interest expense | 108 | 190 |
Subordinated debt interest expense | 405 | 405 |
Total interest expense | 3,684 | 7,098 |
Net interest income | 34,422 | 28,969 |
Provision for loan losses | 950 | 4,790 |
Net interest income after provision for loan losses | 33,472 | 24,179 |
Non-interest income: | ||
Unrealized gain (loss) on equity securities | (41) | 36 |
Gain on sale of securities | 975 | |
Total non-interest income | 4,595 | 4,340 |
Non-interest expense: | ||
Compensation and benefits | 11,428 | 9,960 |
Bank premises and equipment | 2,024 | 2,500 |
Professional fees | 1,304 | 955 |
Licensing fees and technology costs | 3,001 | 3,806 |
Other expenses | 2,566 | 2,295 |
Total non-interest expense | 20,323 | 19,516 |
Net income before income tax expense | 17,744 | 9,003 |
Income tax expense | 5,627 | 2,906 |
Net income | $ 12,117 | $ 6,097 |
Earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 1.46 | $ 0.73 |
Diluted earnings per common share (in dollars per share) | $ 1.43 | $ 0.72 |
Service charges on deposit accounts | ||
Non-interest income: | ||
Non-interest income | $ 1,065 | $ 1,081 |
Revenue, Product and Service [Extensible List] | Service charges on deposit accounts | Service charges on deposit accounts |
Global payment group revenue | ||
Non-interest income: | ||
Non-interest income | $ 3,267 | $ 1,621 |
Revenue, Product and Service [Extensible List] | Global payment group revenue | Global payment group revenue |
Other service charges and fees | ||
Non-interest income: | ||
Non-interest income | $ 304 | $ 627 |
Revenue, Product and Service [Extensible List] | Other service charges and fees | Other service charges and fees |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net Income | $ 12,117 | $ 6,097 |
Other comprehensive income (loss): | ||
Unrealized holding loss arising during the period | (6,934) | 6,539 |
Reclassification adjustment for gain included in net income | 0 | (975) |
Tax effect | 2,210 | (1,756) |
Net of tax | (4,724) | 3,808 |
Unrealized loss on cash flow hedges: | ||
Unrealized holding gain (loss) arising during the period | 2,277 | (1,060) |
Tax effect | (726) | 334 |
Net of tax | 1,551 | (726) |
Total other comprehensive income (loss) | (3,173) | 3,082 |
Comprehensive Income | $ 8,944 | $ 9,179 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Class B Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI (Loss), Net | Total |
Balance at Dec. 31, 2019 | $ 3 | $ 82 | $ 216,468 | $ 81,364 | $ 1,207 | $ 299,124 |
Balance (in shares) at Dec. 31, 2019 | 272,636 | 8,312,918 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted stock grants, net of forfeiture (in shares) | (12,244) | |||||
Employee and non-employee stock-based compensation | 812 | 812 | ||||
Impact of shares for tax withholding for restricted stock vesting | (579) | (579) | ||||
Impact of shares for tax withholding for restricted stock vesting (in shares) | (5,873) | |||||
Net Income | 6,097 | 6,097 | ||||
Other comprehensive income (loss) | 3,082 | 3,082 | ||||
Balance at Mar. 31, 2020 | $ 3 | $ 82 | 216,701 | 87,461 | 4,289 | 308,536 |
Balance (in shares) at Mar. 31, 2020 | 272,636 | 8,294,801 | ||||
Balance at Dec. 31, 2020 | $ 3 | $ 82 | 218,899 | 120,830 | 973 | 340,787 |
Balance (in shares) at Dec. 31, 2020 | 272,636 | 8,295,272 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted stock grants, net of forfeiture | $ 1 | 1 | ||||
Restricted stock grants, net of forfeiture (in shares) | 93,281 | |||||
Employee and non-employee stock-based compensation | 586 | 586 | ||||
Impact of shares for tax withholding for restricted stock vesting | (2,101) | (2,101) | ||||
Impact of shares for tax withholding for restricted stock vesting (in shares) | (43,521) | |||||
Net Income | 12,117 | 12,117 | ||||
Other comprehensive income (loss) | (3,173) | (3,173) | ||||
Balance at Mar. 31, 2021 | $ 3 | $ 83 | $ 217,384 | $ 132,947 | $ (2,200) | $ 348,217 |
Balance (in shares) at Mar. 31, 2021 | 272,636 | 8,345,032 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net Income | $ 12,117 | $ 6,097 |
Adjustments to reconcile net income to net cash: | ||
Net depreciation amortization and accretion | 1,272 | 1,203 |
Provision for loan losses | 950 | 4,790 |
Net change in deferred loan fees | 183 | (270) |
Income tax expense (benefit) | 715 | (1,423) |
Gain on sale of available-for-sale securities | (975) | |
Employee and non-employee stock-based expense | 586 | 812 |
Gain on sale of loans | (18) | |
Dividends earned on CRA fund | (9) | (12) |
Unrealized (gain) loss of equity securities | 41 | (36) |
Net change in: | ||
Accrued interest receivable | (733) | (246) |
Accounts payable, accrued expenses and other liabilities | (18,908) | 2,678 |
Prepaid third-party debit cardholder balances | 6,972 | 12,776 |
Accrued interest payable | (149) | (83) |
Receivable from prepaid card programs, net | (11,097) | (6,949) |
Prepaid expenses and other assets | 7,958 | 2,471 |
Net cash provided by operating activities | (102) | 20,815 |
Cash flows from investing activities: | ||
Loan originations, purchases and payments, net of recoveries | (101,649) | (102,966) |
Proceeds from loans sold | 9,968 | |
Redemptions of other investments | 2 | |
Purchases of other investments | (43) | (18) |
Purchases of securities available for sale | (246,744) | |
Proceeds from calls of securities available for sale | 5,000 | |
Proceeds from sales of securities available for sale | 20,975 | |
Proceeds from paydowns and maturities of securities available for sale | 25,243 | 15,438 |
Proceeds from paydowns and maturities of securities held to maturity | 262 | 194 |
Purchase of derivative contract | (2,980) | |
Purchase of premises and equipment, net | (774) | (3,785) |
Net cash used in investing activities | (323,703) | (58,174) |
Cash flows from financing activities: | ||
Proceeds from FHLB advances | 50 | |
Repayments of FHLB advances | (50) | |
Redemption of common stock for tax withholdings for restricted stock vesting | (2,101) | (579) |
Payments of secured borrowings | (489) | (1,275) |
Net increase in deposits | 597,111 | 230,918 |
Net cash provided by financing activities | 594,521 | 229,064 |
Increase in cash and cash equivalents | 270,716 | 191,705 |
Cash and cash equivalents at the beginning of the period | 864,305 | 390,723 |
Cash and cash equivalents at the end of the period | 1,135,021 | 582,428 |
Cash paid for: | ||
Interest | 3,833 | 7,181 |
Income Taxes | $ 2,250 | $ 1,850 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2021 | |
ORGANIZATION | |
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 provides a broad range of business, commercial and retail banking products and services to small businesses, middle-market enterprises, public entities and affluent individuals. The Bank’s primary lending products are commercial real estate loans, multi-family loans and commercial and industrial loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flows from operations of businesses. The Bank’s primary deposit products are checking, savings, and term deposit accounts, and its deposit accounts are insured by the FDIC under the maximum amounts allowed by law. In addition to traditional commercial banking products, the Bank offers corporate cash management and retail banking services and, through its global payments business, provides global payments infrastructure to its FinTech partners, which includes serving as an issuing bank for third-party debit card programs nationwide. 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. The Company’s business is affected by state and federal legislation and regulations. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 2 – BASIS OF PRESENTATION The accounting and reporting policies of the Company conform with U.S. generally accepted accounting principles (“GAAP”) 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 GAAP for interim financial information and with the instructions to Form 10-Q, Article 8 of Regulation S-X and predominant practices within the U.S. banking industry. 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 in conformity with GAAP, management has made estimates and assumptions based on available information. These estimates and assumptions 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, and actual results could differ from those estimated. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, and changes in the financial condition of borrowers. Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior-year net income or shareholders’ equity. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or for any other period. 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, 2020 as filed with the SEC. |
SUMMARY OF RECENT ACCOUNTING PR
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2021 | |
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. 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. In June 2020, the FASB approved a delay for the implementation of the ASU. Accordingly, the amendments in this update are effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Under ASU 2016 02, the Company will recognize a right-of-use asset and a lease obligation liability on the consolidated statement of financial condition, 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. ASU 2016-2013 requires that financial institutions and other organizations will use forward-looking information to better inform their credit loss estimates. This guidance also amends the accounting for credit losses on Available-For-Sale (“AFS”) debt securities and purchased financial assets with credit deterioration. In October 2019, the FASB approved a delay for the implementation of the ASU. Accordingly, as an EGC, the Company’s effective date for the implementation of the ASU will be January 1, 2023. Management has established a committee to evaluate the impact of ASU 2016 13 on the Company’s financial statements and begun the implementation of a third-party software to assist in the calculation of credit loss estimates under the ASU. The Company expects to recognize a one-time cumulative adjustment to the allowance for loan losses (“ALLL”) 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 was effective for the Company beginning January 1, 2021 and did not have a material impact on its consolidated financial statements. In March 2020, the FASB issued ASU 2020 04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference the London Inter-Bank Offered Rate (“LIBOR’) or another reference rate expected to be discontinued because of reference rate reform. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Management has established a working group to evaluate the impact of the transition from LIBOR on the Company and its consolidated financial statements. The working group has developed an inventory of impacted contracts and client relationships and is in the process of assessing LIBOR alternatives and how such alternatives may be implemented. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2021 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE 4 - INVESTMENT SECURITIES The following tables summarize the amortized cost and fair value of securities available for sale and securities held to maturity at March 31, 2021 and December 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses (in thousands): Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At March 31, 2021 Cost Gains Losses Fair Value Debt securities available for sale: Residential mortgage-backed securities $ 368,776 $ 1,540 $ (3,546) $ 366,770 Commercial mortgage-backed securities 29,895 828 (271) 30,452 Asset-backed securities 5,002 — (29) 4,973 U.S. Government agency 67,993 — (1,570) 66,423 Securities issued by states and political subdivisions in the U.S 11,909 — (539) 11,370 Total securities available for sale $ 483,575 $ 2,368 $ (5,955) $ 479,988 Held-to-maturity securities: Residential mortgage securities $ 2,492 65 — 2,557 Total securities held-to-maturity $ 2,492 $ 65 $ — $ 2,557 Equity investments: CRA Mutual Fund $ 2,308 — (27) 2,281 Total non-trading equity investment securities $ 2,308 $ — $ (27) $ 2,281 Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2020 Cost Gains Losses Fair Value Debt securities available for sale: Residential mortgage securities $ 192,163 $ 2,599 $ (74) $ 194,688 Commercial mortgage securities 32,589 997 (94) 33,492 U.S. Government agency securities 37,997 — (81) 37,916 Total securities available for sale $ 262,749 $ 3,596 $ (249) $ 266,096 Held-to-maturity securities: Residential mortgage securities 2,760 67 — 2,827 Total securities held to maturity $ 2,760 $ 67 $ — $ 2,827 Equity investments: CRA Mutual Fund 2,299 14 — 2,313 Total non-trading equity investment securities $ 2,299 $ 14 $ — $ 2,313 For the three months ended March 31, 2021, there were no sales or calls of securities. There were calls and sales of $5.0 million and $21.0 million, at amortized cost, respectively, for the three months ended March 31, 2020. The proceeds from sales of securities and associated gains for the three months ended March 31, 2020 are as follows (in thousands): Three months ended March 31, 2020 Proceeds $ 20,975 Gross gains $ 975 Tax impact $ (387) Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. The tables below summarize, by contractual maturity, the amortized cost and fair value of debt securities at March 31, 2021 and December 31, 2020. The table does not include the effect of principal repayments. Equity securities, primarily investment in mutual funds, have been excluded from the table. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately (in thousands): Held-to-Maturity Available-for-Sale At March 31, 2021 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ — $ — $ — $ — One to five years — — 47,993 47,092 Five to ten years — — 15,000 14,631 After ten years — — 16,909 16,070 Total $ — $ — $ 79,902 $ 77,793 Residential mortgage securities $ 2,492 $ 2,557 368,776 366,770 Commercial mortgage securities — — 29,895 30,452 Asset-backed securities — — 5,002 4,973 Total Securities $ 2,492 $ 2,557 $ 483,575 $ 479,988 Held-to-Maturity Available-for-Sale At December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ — $ — $ — $ — One to five years — — 37,997 37,916 Five to ten years — — — — Due after ten years — — — — Total $ — $ — $ 37,997 $ 37,916 Residential mortgage securities $ 2,760 $ 2,827 $ 192,163 $ 194,688 Commercial mortgage securities — — 32,589 33,492 Total Securities $ 2,760 $ 2,827 $ 262,749 $ 266,096 There were no securities pledged as collateral at March 31, 2021 or December 31, 2020. At March 31, 2021 and December 31, 2020, all of the residential mortgage securities and commercial mortgage securities held by the Bank were issued by U.S. Government-sponsored entities and agencies. Securities with unrealized/unrecognized losses at March 31, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (in thousands): Less than 12 Months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized At March 31, 2021 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available for sale: Residential mortgage securities $ 233,408 $ (3,546) $ — $ — $ 233,408 $ (3,546) Commercial mortgage securities 9,520 (270) 383 (1) 9,903 (271) Asset-backed securities 4,974 (29) — — 4,974 (29) U.S. Government agency securities 66,423 (1,570) — — 66,423 (1,570) Securities issued by states and political subdivisions in the U.S 11,370 (539) — — 11,370 (539) Total securities available for sale $ 325,695 $ (5,954) $ 383 $ (1) $ 326,078 $ (5,955) Equity investments: CRA Mutual Fund $ 2,281 $ (27) $ — $ — $ 2,281 $ (27) Total equity investment securities $ 2,281 $ (27) $ — $ — $ 2,281 $ (27) Less than 12 Months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized At December 31, 2020 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available for sale: Residential mortgage securities $ 33,734 (74) - - 33,734 (74) Commercial mortgage securities 12,314 (93) 385 (1) 12,699 (94) U.S. Government agency securities 37,916 (81) — — 37,916 (81) Total securities available-for-sale $ 83,964 $ (248) $ 385 $ (1) $ 84,349 $ (249) The unrealized losses on securities are primarily due to the changes in market interest rates subsequent to purchase. The Bank did not consider these securities to be other-than-temporarily impaired at March 31, 2021 or December 31, 2020 since the decline in market value was 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, 2021 or for the year ended December 31, 2020. At March 31, 2021 and December 31, 2020, 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, 2021 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |
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, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Real estate Commercial $ 1,981,218 $ 1,887,505 Construction 121,122 112,290 Multifamily 445,284 433,239 One-to-four family 66,481 71,354 Total real estate loans 2,614,105 2,504,388 Commercial and industrial 587,092 591,500 Consumer 41,916 46,431 Total loans 3,243,113 3,142,319 Deferred fees (5,449) (5,266) Loans, net of deferred fees and unamortized costs 3,237,664 3,137,053 Allowance for loan losses (35,502) (35,407) Balance at the end of the period $ 3,202,162 $ 3,101,646 Included in commercial and industrial loans at March 31, 2021 and December 31, 2020 are $4.5 million and $3.8 million, respectively, of Paycheck Protection Program (“PPP”) loans. The following tables present the activity in the ALLL by segment for the three months ended March 31, 2021 and 2020. The portfolio segments represent the categories that the Bank uses to determine its allowance for loan losses (in thousands): Commercial Commercial Multi One-to-four Three months ended March 31, 2021 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Beginning balance $ 17,243 $ 12,123 $ 1,593 $ 2,661 $ 206 $ 1,581 $ 35,407 Provision/(credit) for loan losses 1,098 (441) 114 71 (28) 136 950 Loans charged-off — (855) — — — — (855) Recoveries — — — — — — — Total ending allowance balance $ 18,341 $ 10,827 $ 1,707 $ 2,732 $ 178 $ 1,717 $ 35,502 Commercial Commercial Multi One-to-four Three months ended March 31, 2020 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Beginning balance $ 15,317 7,070 411 2,453 267 754 — 26,272 Provision/(credit) for loan losses 2,052 2,378 209 255 (64) (40) — 4,790 Loans charged-off — (13) — — — (188) — (201) Recoveries — 58 — — — 5 — 63 Total ending allowance balance $ 17,369 $ 9,493 $ 620 $ 2,708 $ 203 $ 531 $ 30,924 Net charge-offs were $855,000 and $138,000 for the three months ended March 31, 2021 and 2020, respectively. 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, 2021 and December 31, 2020 (in thousands): Commercial Commercial Multi One-to-four At March 31, 2021 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ 2,814 $ — $ — $ 44 $ 1,379 $ 4,237 Collectively evaluated for impairment 18,341 8,013 1,707 2,732 134 338 31,265 Total ending allowance balance $ 18,341 $ 10,827 $ 1,707 $ 2,732 $ 178 $ 1,717 $ 35,502 Loans: Individually evaluated for impairment $ 10,340 $ 3,337 $ — $ — $ 982 $ 2,128 $ 16,787 Collectively evaluated for impairment 1,970,878 583,755 121,122 445,284 65,499 39,788 3,226,326 Total ending loan balance $ 1,981,218 $ 587,092 $ 121,122 $ 445,284 $ 66,481 $ 41,916 $ 3,243,113 Commercial Commercial Multi One-to-four At December 31, 2020 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ 3,662 $ — $ — $ 53 $ 1,203 $ 4,918 Collectively evaluated for impairment 17,243 8,461 1,593 2,661 153 378 30,489 Total ending allowance balance $ 17,243 $ 12,123 $ 1,593 $ 2,661 $ 206 $ 1,581 $ 35,407 Loans: Individually evaluated for impairment $ 10,345 $ 4,192 $ — $ — $ 999 $ 2,197 $ 17,733 Collectively evaluated for impairment 1,877,160 587,308 112,290 433,239 70,355 44,234 3,124,586 Total ending loan balance $ 1,887,505 $ 591,500 $ 112,290 $ 433,239 $ 71,354 $ 46,431 $ 3,142,319 The following tables present loans individually evaluated for impairment recognized as of March 31, 2021 and December 31, 2020 (in thousands): Unpaid Principal Allowance for Loan At March 31, 2021 Balance Recorded Investment Losses Allocated With an allowance recorded: One-to-four family $ 598 $ 468 $ 44 Consumer 2,128 2,128 1,379 Commercial & industrial 4,192 3,337 2,814 Total $ 6,918 $ 5,933 $ 4,237 Without an allowance recorded: One-to-four family $ 661 $ 514 $ — Commercial real estate 10,340 10,340 — Commercial & industrial — — — Total $ 11,001 $ 10,854 $ — Unpaid Principal Allowance for Loan At December 31, 2020 Balance Recorded Investment Losses Allocated With an allowance recorded: One-to-four family $ 610 480 53 Consumer 2,197 2,197 1,203 Commercial & industrial 4,192 4,192 3,662 Total $ 6,999 $ 6,869 $ 4,918 Without an allowance recorded: One-to-four family 666 519 — Commercial real estate 10,345 10,345 — Commercial & industrial — — — Total $ 11,011 $ 10,864 $ — The recorded investment in loans excludes accrued interest receivable and loan origination fees. The following tables present the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans for the three months ended March 31, 2021 and 2020 (in thousands): Average Recorded Interest Income Three months ended March 31, 2021 Investment Recognized With an allowance recorded: One-to-four family $ 474 8 Consumer 2,162 29 Commercial & industrial 3,669 — Total $ 6,305 $ 37 Without an allowance recorded: One-to-four family $ 516 $ 7 Commercial real estate 10,343 167 Commercial & industrial 96 — Total $ 10,955 $ 174 Average Recorded Interest Income Three months ended March 31, 2020 Investment Recognized With an allowance recorded: One-to-four family $ 500 $ 5 Consumer 548 5 Commercial & industrial 1,047 — Total $ 2,095 $ 10 Without an allowance recorded: One-to-four family $ 1,706 $ 7 Commercial real estate 365 4 Commercial & industrial 2,377 Total $ 4,448 $ 11 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. For discussion on modification of loans to borrowers impacted by COVID-19, refer to the “COVID-19 Loan Modifications” section herein. 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, 2021 and December 31, 2020 (in thousands): At March 31, 2021 Non-accrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ 3,337 $ — Consumer 1,523 604 Total $ 4,860 $ 604 At December 31, 2020 Non-accrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ 4,192 $ — Consumer 1,428 769 Total $ 5,620 $ 769 Interest income that would have been recorded for the three months ended March 31, 2021 and 2020 had non-accrual loans been current according to their original terms was immaterial. The following tables present the aging of the recorded investment in past due loans by class of loans as of March 31, 2021 and December 31, 2020 (in thousands): Greater 30-59 60-89 than 90 Total past Current At March 31, 2021 Days Days days due loans Total Commercial real estate $ 3,360 $ — $ — $ 3,360 $ 1,977,858 $ 1,981,218 Commercial & industrial 3,941 6,400 3,337 13,678 573,414 587,092 Construction — — — — 121,122 121,122 Multifamily — — — — 445,284 445,284 One-to-four family — — — — 66,481 66,481 Consumer 48 21 2,127 2,196 39,720 41,916 Total $ 7,349 $ 6,421 $ 5,464 $ 19,234 $ 3,223,879 $ 3,243,113 Greater 30-59 60-89 than 90 Total past Current At December 31, 2020 Days Days days due loans Total Commercial real estate $ 40 $ 9,984 $ — $ 10,024 $ 1,877,481 $ 1,887,505 Commercial & industrial 4,429 6,400 4,192 15,021 576,479 591,500 Construction — — — — 112,290 112,290 Multifamily — — — — 433,239 433,239 One-to-four family 2,908 — — 2,908 68,446 71,354 Consumer 112 32 2,197 2,341 44,090 46,431 Total $ 7,489 $ 16,416 $ 6,389 $ 30,294 $ 3,112,025 $ 3,142,319 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 March 31, 2021 and December 31, 2020 were $1.3 million and $1.4 million, respectively, of loans modified as TDRs. The Bank allocated specific reserves amounting to $44,000 and $53,000 for TDRs as of March 31, 2021 and December 31, 2020, respectively. There were no loans modified as a TDR during the three months ended March 31, 2021 or the year ended December 31, 2020. The Bank has not committed to lend additional amounts as of March 31, 2021 to customers with outstanding loans that are classified as TDRs. During the three months ended March 31, 2021 and March 31, 2020 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, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Troubled debt restructurings: Real Estate: Commercial real estate $ 356 $ 361 One-to-four family 982 999 Total troubled debt restructurings $ 1,339 $ 1,360 All TDRs at March 31, 2021 and December 31, 2020 were performing in accordance with their restructured terms. 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. Except for one-to-four family loans and consumer loans, the Bank analyzes 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, which was previously presented. An analysis is performed on a quarterly basis for loans classified as special mention, substandard, or doubtful. The Bank uses the following definitions for risk ratings: Special Mention - Substandard - Doubtful - Loans not meeting the criteria above are considered to be pass-rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans as of March 31, 2021 and December 31, 2020 is as follows (in thousands): Special At March 31, 2021 Pass Mention Substandard Doubtful Total Commercial real estate $ 1,970,878 $ 356 $ 9,984 $ — $ 1,981,218 Commercial & industrial 580,256 3,499 — 3,337 587,092 Construction 121,122 — — — 121,122 Multifamily 445,284 — — — 445,284 Total $ 3,117,540 $ 3,855 $ 9,984 $ 3,337 $ 3,134,716 Special At December 31, 2020 Pass Mention Substandard Doubtful Total Commercial real estate $ 1,877,160 $ 361 $ 9,984 $ — $ 1,887,505 Commercial & industrial 583,809 3,499 — 4,192 591,500 Construction 112,290 — — — 112,290 Multi-family 433,239 — — — 433,239 Total $ 3,006,498 $ 3,860 $ 9,984 $ 4,192 $ 3,024,534 COVID-19 Loan Modifications On March 22, 2020, the banking regulators and the FASB issued guidance to financial institutions who are working with borrowers affected by COVID-19 (“COVID-19 Guidance”). The COVID-19 Guidance indicated that regulatory agencies will not criticize institutions for working with borrowers and will not direct banks to automatically categorize all COVID-19 related loan modifications as TDRs. In addition, the COVID-19 Guidance noted that modification or deferral programs mandated by the federal or a state government related to COVID-19 would not be in the scope of Accounting Standards Codification Subtopic 310-40 – Receivables – Troubled Debt Restructurings by Creditors (“ASC 310-40”), such as a state program that requires all institutions within that state to suspend mortgage payments for a specified period. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. Section 4013 of the CARES Act, “Temporary Relief from Troubled Debt Restructurings,” allows banks to temporarily suspend certain requirements under GAAP related to TDRs for a limited period to account for the effects of COVID-19. A bank may elect to account for modifications on certain loans under Section 4013 of the CARES Act or, if a loan modification is not eligible under Section 4013, a bank may use the criteria in the COVID-19 Guidance to determine when a loan modification is not a TDR in accordance with ASC 310-40. As of March 31, 2021, the Company had 30 loans amounting to $65.3 million, or 2.1% of total loans, that were modified in accordance with the COVID-19 Guidance and the CARES Act. As of March 31, 2021, principal payment deferrals were $37.4 million, or 1.2% of total loans, while full payment deferrals were $27.9 million, or 0.9% of total loans. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2021 | |
EARNINGS PER SHARE | |
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, 2021 2020 Basic Net income per consolidated statements of income $ 12,117 $ 6,097 Less: Earnings allocated to participating securities (55) (65) Net income available to common stockholders $ 12,062 $ 6,032 Weighted average common shares outstanding including participating securities 8,313,660 8,304,205 Less: Weighted average participating securities (37,486) (88,246) Weighted average common shares outstanding 8,276,174 8,215,959 Basic earnings per common share $ 1.46 $ 0.73 Diluted Net income allocated to common stockholders $ 12,062 $ 6,032 Weighted average common shares outstanding for basic earnings per common share 8,276,174 8,215,959 Add: Dilutive effects of assumed exercise of stock options 141,145 131,159 Add: Dilutive effects of assumed vesting of performance based restricted stock units — 65,664 Average shares and dilutive potential common shares 8,417,319 8,412,782 Dilutive earnings per common share $ 1.43 $ 0.72 All stock options and performance based restricted stock units were considered in computing diluted earnings per common share for the three months ended March 31, 2021 and 2020. 108,178 restricted stock units were not considered in the calculation of diluted earnings per share as their inclusion would be anti-dilutive for the three months ended March 31, 2021. |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 3 Months Ended |
Mar. 31, 2021 | |
STOCK COMPENSATION PLAN | |
STOCK COMPENSATION PLAN | NOTE 7 - STOCK COMPENSATION PLAN Equity Incentive Plan On May 28, 2019, the Company's 2019 Equity Incentive Plan (the “2019 EIP”) was approved by stockholders of the Company. Under the 2019 EIP, the maximum number of shares of stock that may be delivered to participants in the form of restricted stock, restricted stock units and stock options, including incentive stock options (“ISO”) and non-qualified stock options, is 340,000, plus any awards that are forfeited under the 2009 Equity Incentive Plan (the “2009 Plan”) after the effective date of the 2019 EIP, which was May 28, 2019. Under the 2009 Plan, there are 468,382 shares that are subject to outstanding and/or unexercised awards that have been granted and, if forfeited after May 28, 2019, such shares will be available to be granted under the 2019 EIP. The 628,719 shares that were unauthorized and unissued under the 2009 Plan have expired and may not be granted (and such shares of stock did not roll over to the 2019 EIP). Under the terms of the 2019 EIP, a stock option cannot have an exercise price that is less than 100% of the fair market value of the shares covered by the stock option on the date of grant. In the case of an ISO granted to a 10% stockholder, the exercise price shall not be less than 110% of the fair market value of the shares covered by the stock option on the date of grant. 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. The 2019 EIP contains a double trigger change in control feature, providing for an acceleration of vesting upon an involuntary termination of employment simultaneous with or following a change in control. The fair value of each stock option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. 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. A summary of the status of the Company’s stock options and the changes during the three months ended March 31, 2021 is presented below: Three Months Ended March 31, 2021 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) 3.13 There was no unrecognized compensation cost related to stock options at March 31, 2021 or December 31, 2020. There was no compensation cost related to stock options for the three months ended March 31, 2021 and 2020. The following table summarizes information about stock options outstanding at March 31, 2021: At March 31, 2021 Range of Average Weighted Average Weighted Average Weighted Average Exercise Prices Number Outstanding at Remaining Contractual Life Exercise Price Intrinsic Price per Share $10 – 20 231,000 3.13 $ 18.00 $ 32.36 $10 – 30 231,000 3.13 $ 18.00 $ 32.36 There were no stock options exercised during the three months ended March 31, 2021. Restricted Stock Awards and Restricted Stock Units The Company issued restricted stock awards under the 2009 Plan and restricted stock units under the 2019 EIP (collectively, “restricted stock grants”) to certain key personnel. Each restricted stock grant vests based on the vesting schedule outlined in the restricted stock grant agreement. Restricted stock grants are subject to forfeiture if the holder is not employed by the Company on the vesting date. In the first quarter of 2021, 78,582 restricted stock units were issued to certain key personnel. One-third of these shares vest each year for three years beginning on March 1, 2022. Total compensation cost that has been charged against income for restricted stock grants was $476,000 and $354,000 for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, there was $5.7 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 2.46 years. Additionally, on January 1, 2019, 38,900 restricted shares were granted to members of the Board of Directors in lieu of retainer fees for three years of service. One-third of these shares vest each year for three years beginning on December 31, 2019. In the fourth quarter of 2020, 1,785 shares were granted to a new member of the Board of Directors, all of which will vest in the fourth quarter of 2021. Total expense for these awards was $110,000 and $100,000 for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, there was $330,000 of unrecognized expense related to these grants. The cost is expected to be recognized over a weighted-average period of 0.75 years. The following table summarizes the changes in the Company’s restricted stock grants for the three months ended March 31, 2021: Three Months Ended March 31, 2021 Weighted Average Number of Shares Grant Date Fair Value Outstanding, beginning of period 76,289 $ 37.01 Granted 78,582 50.80 Forfeited (739) 48.80 Vested (12,728) 28.25 Outstanding at end of period 141,404 $ 45.40 The total fair value of shares vested was $360,000 for the three months ended March 31, 2021. Performance Based Stock Awards During the first quarter of 2018, the Company established a long-term incentive award program under the 2009 Plan. For each award, 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, in each case, as compared to 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. No PRSUs were granted in the first quarter of 2021. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2021 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 8 - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. The Company did not have any liabilities that were measured at fair value at March 31, 2021 and December 31, 2020. Securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as certain impaired loans. These non-recurring fair value adjustments generally involve the write-down of individual assets due to impairment losses. Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Assets and Liabilities Measured on a Recurring Basis Assets measured on a recurring basis are limited to the Bank’s AFS securities portfolio, equity investments and an interest rate cap derivative contract. The AFS portfolio is carried at estimated fair value with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income or loss in shareholders’ equity. Equity investments are carried at estimated fair value with changes in fair value reported as unrealized gain/(loss) on the statement of operations. The interest rate cap derivative contract is carried at estimated fair value with changes in fair value reported as accumulated other comprehensive income or loss in shareholders’ equity. The fair values for substantially all of these assets are obtained monthly from an independent nationally recognized pricing service. On a quarterly basis, the Bank assesses the reasonableness of the fair values obtained for the AFS portfolio by reference to a second independent nationally recognized pricing service. Based on the nature of these securities, the Bank’s independent pricing service provides prices which are categorized as Level 2 since quoted prices in active markets for identical assets are generally not available for the majority of securities in the Bank’s portfolio. Various modeling techniques are used to determine pricing for the Bank’s mortgage-backed securities, including option pricing and discounted cash flow models. The inputs to these models include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. On an annual basis, the Bank obtains the models, inputs and assumptions utilized by its pricing service and reviews them for reasonableness. There are no liabilities that are measured on a recurring basis. Assets measured at fair value on a recurring basis are summarized below (in thousands): 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, 2021 Residential mortgage-backed securities $ 366,770 $ — $ 366,770 $ — Commercial mortgage-backed securities 30,452 — 30,452 — Asset-backed securities 4,973 — 4,973 — U.S. Government agency 66,423 — 66,423 — Securities issued by states and political subdivisions in the U.S 11,370 — 11,370 — CRA Mutual Fund 2,281 2,281 — — Derivative assets - interest rate cap 2,962 — 2,962 — 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, 2020 Residential mortgage securities $ 194,688 $ — $ 194,688 $ — Commercial mortgage securities 33,492 — 33,492 — U.S. Government agency securities 37,916 — 37,916 — CRA Mutual Fund 2,313 2,313 — — Derivative assets - interest rate cap 770 — 770 — There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2021 and 2020. There were no material assets measured at fair value on a non-recurring basis at March 31, 2021 or December 31, 2020. The Bank has engaged an independent pricing service provider to provide the fair values of its financial assets and liabilities measured at amortized cost. This provider follows FASB’s exit pricing guidelines, as required by ASU 2016-01, when calculating the fair market value. Carrying amount and estimated fair values of financial instruments at March 31, 2021 and December 31, 2020 were as follows (in thousands): Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At March 31, 2021 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 9,432 $ 9,432 $ — $ — $ 9,432 Overnight deposits 1,125,589 1,125,589 — — 1,125,589 Securities available for sale 479,988 — 479,988 — 479,988 Securities held to maturity 2,492 — 2,557 — 2,557 Equity investments 2,281 2,281 — — 2,281 Loans, net 3,202,162 — — 3,224,617 3,224,617 Other investments FRB Stock 7,422 N/A N/A N/A N/A FHLB Stock 2,718 N/A N/A N/A N/A Disability Fund 1,000 — 1,000 — 1,000 CRA - CD 498 498 — — 498 Derivative assets - interest rate cap 2,962 — 2,962 — 2,962 Accrued interest receivable 13,982 — 615 13,367 13,982 Financial liabilities: Non-interest-bearing demand deposits $ 2,167,899 $ 2,167,899 $ — $ — $ 2,167,899 Money market and savings deposits 2,173,460 2,173,460 — — 2,173,460 Time deposits 85,358 — 86,228 — 86,228 Trust preferred securities payable 20,620 — — 20,003 20,003 Subordinated debt, net of issuance cost 24,670 — 25,500 — 25,500 Accrued interest payable 563 5 446 112 563 Secured borrowings 36,475 — 36,982 — 36,982 Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At December 31, 2020 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 8,692 $ 8,692 $ — $ — $ 8,692 Overnight deposits 855,613 855,613 — — 855,613 Securities available for sale 266,096 — 266,096 — 266,096 Securities held to maturity 2,760 — 2,827 — 2,827 Equity investments 2,313 2,313 — — 2,313 Loans, net 3,101,646 — — 3,094,998 3,094,998 Other investments FRB Stock 7,381 N/A N/A N/A N/A FHLB Stock 2,718 N/A N/A N/A N/A Disability Fund 1,000 — 1,000 — 1,000 CRA - CD 498 498 — — 498 Derivative assets - interest rate cap 770 770 — 770 Accrued interest receivable 13,249 — 414 12,835 13,249 Financial liabilities: Non-interest-bearing demand deposits $ 1,726,135 $ 1,726,135 $ — $ — $ 1,726,135 Money market and savings deposits 2,011,409 2,011,409 — 2,011,409 Time deposits 92,062 — 93,157 — 93,157 Trust preferred securities payable 20,620 — — 20,001 20,001 Subordinated debt, net of issuance cost 24,657 — 25,375 — 25,375 Accrued interest payable 712 7 591 114 712 Secured borrowings 36,964 — 36,964 — 36,964 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 9 - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following table presents changes in Accumulated Other Comprehensive Income (loss), net of tax, for the three months ended March 31, 2021 and 2020 (in thousands): Three months ended March 31, 2021 2020 Beginning balance $ 973 $ 1,207 Other comprehensive income (loss), net of tax: Unrealized gain (loss) on securities available for sale Unrealized holding gain (loss) arising during the period $ (6,934) $ 6,539 Reclassification adjustment for gain included in net income — (975) Tax effect 2,210 (1,756) Net of tax $ (4,724) $ 3,808 Unrealized gain (loss) on cash flow hedges Unrealized holding gain (loss) arising during the period $ 2,277 $ (1,060) Tax effect (726) 334 Net of tax $ 1,551 $ (726) Net current period other comprehensive income (loss) $ (3,173) $ 3,082 Ending balance $ (2,200) $ 4,289 There were no amounts related to the gain on the sale of securities that were reclassified out of accumulated other comprehensive income during the three months ended March 31, 2021. The following table shows the amounts reclassified out of each component of accumulated other comprehensive income for the gain on the sale of securities during the three months ended March 31, 2020 (in thousands): Three months ended March 31, 2020 Proceeds $ 20,975 Gross gains $ 975 Tax impact $ (387) |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 3 Months Ended |
Mar. 31, 2021 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |
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, 2021 and December 31, 2020 (in thousands): At March 31, 2021 At December 31, 2020 Variable Variable Fixed Rate Rate Fixed Rate Rate Undrawn lines of credit $ 20,805 $ 272,649 $ 19,024 $ 266,696 Letters of credit 47,623 — 34,264 — Total $ 68,428 $ 272,649 $ 53,288 $ 266,696 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, 2021, 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 2.0% to 8.3%, with a maturity of one year or more. At December 31, 2020, 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 2.0% to 8.3%, 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 amounted to $47.6 million and $34.3 million as of March 31, 2021 and December 31, 2020, respectively. The Bank’s stand-by letters of credit are collateralized by interest-bearing accounts of $39.5 million and $26.9 million as of March 31, 2021 and December 31, 2020, respectively. 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, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 11 – REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers that are in the scope of ASU 2014-09, Revenue from Contracts with Customers Three months ended March 31, 2021 2020 Service charges on deposit accounts $ 1,065 $ 1,081 Global payment group revenue 3,267 1,621 Other service charges and fees 304 627 Total $ 4,636 $ 3,329 A description of the Company’s revenue streams accounted for under the accounting guidance follows: Global payments group revenue: Service charges on deposit accounts: 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: |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2021 | |
DERIVATIVES | |
DERIVATIVES | NOTE 12 – DERIVATIVES In the first quarter of 2020, the Company entered into an interest rate cap derivative contract (“interest rate cap” or “contract”) as a part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate cap does not represent the amount exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the contract. The interest rate subject to the cap is 30-day LIBOR. The interest rate cap had a notional amount of $300.0 million as of March 31, 2021 and was designated as a cash flow hedge of certain deposit liabilities of the Bank. The hedge was determined to be highly effective during the three months ended March 31, 2021. The Company expects the hedge to remain highly effective during the remaining term of the contract. The following table reflects the derivatives recorded on the balance sheet at March 31, 2021 (in thousands): At March 31, 2021 Notional Amount Fair Value Derivatives designated as hedges: Interest rate caps related to customer deposits $ 300,000 $ 2,962 Total included in Other Assets $ 300,000 $ 2,962 The effect of cash flow hedge accounting on accumulated other comprehensive income at March 31, 2021 is as follows (in thousands): At March 31, 2021 Amount of Loss Recognized in OCI, net of tax Location of Gain (Loss) Reclassified from OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Interest rate caps related to customer deposits $ 1,551 $ N/A $ — |
SUMMARY OF RECENT ACCOUNTING _2
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
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 provides a broad range of business, commercial and retail banking products and services to small businesses, middle-market enterprises, public entities and affluent individuals. The Bank’s primary lending products are commercial real estate loans, multi-family loans and commercial and industrial loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flows from operations of businesses. The Bank’s primary deposit products are checking, savings, and term deposit accounts, and its deposit accounts are insured by the FDIC under the maximum amounts allowed by law. In addition to traditional commercial banking products, the Bank offers corporate cash management and retail banking services and, through its global payments business, provides global payments infrastructure to its FinTech partners, which includes serving as an issuing bank for third-party debit card programs nationwide. 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. The Company’s business is affected by state and federal legislation and regulations. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
INVESTMENT SECURITIES | |
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, 2021 Cost Gains Losses Fair Value Debt securities available for sale: Residential mortgage-backed securities $ 368,776 $ 1,540 $ (3,546) $ 366,770 Commercial mortgage-backed securities 29,895 828 (271) 30,452 Asset-backed securities 5,002 — (29) 4,973 U.S. Government agency 67,993 — (1,570) 66,423 Securities issued by states and political subdivisions in the U.S 11,909 — (539) 11,370 Total securities available for sale $ 483,575 $ 2,368 $ (5,955) $ 479,988 Held-to-maturity securities: Residential mortgage securities $ 2,492 65 — 2,557 Total securities held-to-maturity $ 2,492 $ 65 $ — $ 2,557 Equity investments: CRA Mutual Fund $ 2,308 — (27) 2,281 Total non-trading equity investment securities $ 2,308 $ — $ (27) $ 2,281 Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2020 Cost Gains Losses Fair Value Debt securities available for sale: Residential mortgage securities $ 192,163 $ 2,599 $ (74) $ 194,688 Commercial mortgage securities 32,589 997 (94) 33,492 U.S. Government agency securities 37,997 — (81) 37,916 Total securities available for sale $ 262,749 $ 3,596 $ (249) $ 266,096 Held-to-maturity securities: Residential mortgage securities 2,760 67 — 2,827 Total securities held to maturity $ 2,760 $ 67 $ — $ 2,827 Equity investments: CRA Mutual Fund 2,299 14 — 2,313 Total non-trading equity investment securities $ 2,299 $ 14 $ — $ 2,313 |
Schedule of Realized Gain (Loss) on Sales and Calls of Securities | Three months ended March 31, 2020 Proceeds $ 20,975 Gross gains $ 975 Tax impact $ (387) |
Schedule of amortized cost and fair value of debt securities classified by contractual maturity | Held-to-Maturity Available-for-Sale At March 31, 2021 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ — $ — $ — $ — One to five years — — 47,993 47,092 Five to ten years — — 15,000 14,631 After ten years — — 16,909 16,070 Total $ — $ — $ 79,902 $ 77,793 Residential mortgage securities $ 2,492 $ 2,557 368,776 366,770 Commercial mortgage securities — — 29,895 30,452 Asset-backed securities — — 5,002 4,973 Total Securities $ 2,492 $ 2,557 $ 483,575 $ 479,988 Held-to-Maturity Available-for-Sale At December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ — $ — $ — $ — One to five years — — 37,997 37,916 Five to ten years — — — — Due after ten years — — — — Total $ — $ — $ 37,997 $ 37,916 Residential mortgage securities $ 2,760 $ 2,827 $ 192,163 $ 194,688 Commercial mortgage securities — — 32,589 33,492 Total Securities $ 2,760 $ 2,827 $ 262,749 $ 266,096 |
Schedule of securities with unrealized/unrecognized losses | Less than 12 Months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized At March 31, 2021 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available for sale: Residential mortgage securities $ 233,408 $ (3,546) $ — $ — $ 233,408 $ (3,546) Commercial mortgage securities 9,520 (270) 383 (1) 9,903 (271) Asset-backed securities 4,974 (29) — — 4,974 (29) U.S. Government agency securities 66,423 (1,570) — — 66,423 (1,570) Securities issued by states and political subdivisions in the U.S 11,370 (539) — — 11,370 (539) Total securities available for sale $ 325,695 $ (5,954) $ 383 $ (1) $ 326,078 $ (5,955) Equity investments: CRA Mutual Fund $ 2,281 $ (27) $ — $ — $ 2,281 $ (27) Total equity investment securities $ 2,281 $ (27) $ — $ — $ 2,281 $ (27) Less than 12 Months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized At December 31, 2020 Fair Value Losses Fair Value Losses Fair Value Losses Debt securities available for sale: Residential mortgage securities $ 33,734 (74) - - 33,734 (74) Commercial mortgage securities 12,314 (93) 385 (1) 12,699 (94) U.S. Government agency securities 37,916 (81) — — 37,916 (81) Total securities available-for-sale $ 83,964 $ (248) $ 385 $ (1) $ 84,349 $ (249) |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |
Schedule of Net loans | March 31, 2021 December 31, 2020 Real estate Commercial $ 1,981,218 $ 1,887,505 Construction 121,122 112,290 Multifamily 445,284 433,239 One-to-four family 66,481 71,354 Total real estate loans 2,614,105 2,504,388 Commercial and industrial 587,092 591,500 Consumer 41,916 46,431 Total loans 3,243,113 3,142,319 Deferred fees (5,449) (5,266) Loans, net of deferred fees and unamortized costs 3,237,664 3,137,053 Allowance for loan losses (35,502) (35,407) Balance at the end of the period $ 3,202,162 $ 3,101,646 |
Schedule of changes in the allowance for loan losses by portfolio segment | Commercial Commercial Multi One-to-four Three months ended March 31, 2021 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Beginning balance $ 17,243 $ 12,123 $ 1,593 $ 2,661 $ 206 $ 1,581 $ 35,407 Provision/(credit) for loan losses 1,098 (441) 114 71 (28) 136 950 Loans charged-off — (855) — — — — (855) Recoveries — — — — — — — Total ending allowance balance $ 18,341 $ 10,827 $ 1,707 $ 2,732 $ 178 $ 1,717 $ 35,502 Commercial Commercial Multi One-to-four Three months ended March 31, 2020 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Beginning balance $ 15,317 7,070 411 2,453 267 754 — 26,272 Provision/(credit) for loan losses 2,052 2,378 209 255 (64) (40) — 4,790 Loans charged-off — (13) — — — (188) — (201) Recoveries — 58 — — — 5 — 63 Total ending allowance balance $ 17,369 $ 9,493 $ 620 $ 2,708 $ 203 $ 531 $ 30,924 |
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment | 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, 2021 and December 31, 2020 (in thousands): Commercial Commercial Multi One-to-four At March 31, 2021 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ 2,814 $ — $ — $ 44 $ 1,379 $ 4,237 Collectively evaluated for impairment 18,341 8,013 1,707 2,732 134 338 31,265 Total ending allowance balance $ 18,341 $ 10,827 $ 1,707 $ 2,732 $ 178 $ 1,717 $ 35,502 Loans: Individually evaluated for impairment $ 10,340 $ 3,337 $ — $ — $ 982 $ 2,128 $ 16,787 Collectively evaluated for impairment 1,970,878 583,755 121,122 445,284 65,499 39,788 3,226,326 Total ending loan balance $ 1,981,218 $ 587,092 $ 121,122 $ 445,284 $ 66,481 $ 41,916 $ 3,243,113 Commercial Commercial Multi One-to-four At December 31, 2020 Real Estate & Industrial Construction Family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ 3,662 $ — $ — $ 53 $ 1,203 $ 4,918 Collectively evaluated for impairment 17,243 8,461 1,593 2,661 153 378 30,489 Total ending allowance balance $ 17,243 $ 12,123 $ 1,593 $ 2,661 $ 206 $ 1,581 $ 35,407 Loans: Individually evaluated for impairment $ 10,345 $ 4,192 $ — $ — $ 999 $ 2,197 $ 17,733 Collectively evaluated for impairment 1,877,160 587,308 112,290 433,239 70,355 44,234 3,124,586 Total ending loan balance $ 1,887,505 $ 591,500 $ 112,290 $ 433,239 $ 71,354 $ 46,431 $ 3,142,319 |
Schedule of loans determined to be impaired by class of loans | Unpaid Principal Allowance for Loan At March 31, 2021 Balance Recorded Investment Losses Allocated With an allowance recorded: One-to-four family $ 598 $ 468 $ 44 Consumer 2,128 2,128 1,379 Commercial & industrial 4,192 3,337 2,814 Total $ 6,918 $ 5,933 $ 4,237 Without an allowance recorded: One-to-four family $ 661 $ 514 $ — Commercial real estate 10,340 10,340 — Commercial & industrial — — — Total $ 11,001 $ 10,854 $ — Unpaid Principal Allowance for Loan At December 31, 2020 Balance Recorded Investment Losses Allocated With an allowance recorded: One-to-four family $ 610 480 53 Consumer 2,197 2,197 1,203 Commercial & industrial 4,192 4,192 3,662 Total $ 6,999 $ 6,869 $ 4,918 Without an allowance recorded: One-to-four family 666 519 — Commercial real estate 10,345 10,345 — Commercial & industrial — — — Total $ 11,011 $ 10,864 $ — |
Schedule of average recorded investment and interest income of loans | Average Recorded Interest Income Three months ended March 31, 2021 Investment Recognized With an allowance recorded: One-to-four family $ 474 8 Consumer 2,162 29 Commercial & industrial 3,669 — Total $ 6,305 $ 37 Without an allowance recorded: One-to-four family $ 516 $ 7 Commercial real estate 10,343 167 Commercial & industrial 96 — Total $ 10,955 $ 174 Average Recorded Interest Income Three months ended March 31, 2020 Investment Recognized With an allowance recorded: One-to-four family $ 500 $ 5 Consumer 548 5 Commercial & industrial 1,047 — Total $ 2,095 $ 10 Without an allowance recorded: One-to-four family $ 1,706 $ 7 Commercial real estate 365 4 Commercial & industrial 2,377 Total $ 4,448 $ 11 |
Schedule of recorded investment in non-accrual loans, loans past due over 90 days and still accruing by class of loans | At March 31, 2021 Non-accrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ 3,337 $ — Consumer 1,523 604 Total $ 4,860 $ 604 At December 31, 2020 Non-accrual Loans Past Due Over 90 Days Still Accruing Commercial & industrial $ 4,192 $ — Consumer 1,428 769 Total $ 5,620 $ 769 |
Schedule of aging of the recorded investment in past due loans by class of loans | Greater 30-59 60-89 than 90 Total past Current At March 31, 2021 Days Days days due loans Total Commercial real estate $ 3,360 $ — $ — $ 3,360 $ 1,977,858 $ 1,981,218 Commercial & industrial 3,941 6,400 3,337 13,678 573,414 587,092 Construction — — — — 121,122 121,122 Multifamily — — — — 445,284 445,284 One-to-four family — — — — 66,481 66,481 Consumer 48 21 2,127 2,196 39,720 41,916 Total $ 7,349 $ 6,421 $ 5,464 $ 19,234 $ 3,223,879 $ 3,243,113 Greater 30-59 60-89 than 90 Total past Current At December 31, 2020 Days Days days due loans Total Commercial real estate $ 40 $ 9,984 $ — $ 10,024 $ 1,877,481 $ 1,887,505 Commercial & industrial 4,429 6,400 4,192 15,021 576,479 591,500 Construction — — — — 112,290 112,290 Multifamily — — — — 433,239 433,239 One-to-four family 2,908 — — 2,908 68,446 71,354 Consumer 112 32 2,197 2,341 44,090 46,431 Total $ 7,489 $ 16,416 $ 6,389 $ 30,294 $ 3,112,025 $ 3,142,319 |
Schedule of recorded investment in TDRs by class of loans | The following tables present the recorded investment in TDRs by class of loans as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Troubled debt restructurings: Real Estate: Commercial real estate $ 356 $ 361 One-to-four family 982 999 Total troubled debt restructurings $ 1,339 $ 1,360 |
Schedule of risk category of loans by class of loans | Special At March 31, 2021 Pass Mention Substandard Doubtful Total Commercial real estate $ 1,970,878 $ 356 $ 9,984 $ — $ 1,981,218 Commercial & industrial 580,256 3,499 — 3,337 587,092 Construction 121,122 — — — 121,122 Multifamily 445,284 — — — 445,284 Total $ 3,117,540 $ 3,855 $ 9,984 $ 3,337 $ 3,134,716 Special At December 31, 2020 Pass Mention Substandard Doubtful Total Commercial real estate $ 1,877,160 $ 361 $ 9,984 $ — $ 1,887,505 Commercial & industrial 583,809 3,499 — 4,192 591,500 Construction 112,290 — — — 112,290 Multi-family 433,239 — — — 433,239 Total $ 3,006,498 $ 3,860 $ 9,984 $ 4,192 $ 3,024,534 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
EARNINGS PER SHARE | |
Schedule of earnings per common share | Three months ended March 31, 2021 2020 Basic Net income per consolidated statements of income $ 12,117 $ 6,097 Less: Earnings allocated to participating securities (55) (65) Net income available to common stockholders $ 12,062 $ 6,032 Weighted average common shares outstanding including participating securities 8,313,660 8,304,205 Less: Weighted average participating securities (37,486) (88,246) Weighted average common shares outstanding 8,276,174 8,215,959 Basic earnings per common share $ 1.46 $ 0.73 Diluted Net income allocated to common stockholders $ 12,062 $ 6,032 Weighted average common shares outstanding for basic earnings per common share 8,276,174 8,215,959 Add: Dilutive effects of assumed exercise of stock options 141,145 131,159 Add: Dilutive effects of assumed vesting of performance based restricted stock units — 65,664 Average shares and dilutive potential common shares 8,417,319 8,412,782 Dilutive earnings per common share $ 1.43 $ 0.72 |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
STOCK COMPENSATION PLAN | |
Schedule of status of the stock option plan | Three Months Ended March 31, 2021 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) 3.13 |
Schedule of summary of stock options outstanding | At March 31, 2021 Range of Average Weighted Average Weighted Average Weighted Average Exercise Prices Number Outstanding at Remaining Contractual Life Exercise Price Intrinsic Price per Share $10 – 20 231,000 3.13 $ 18.00 $ 32.36 $10 – 30 231,000 3.13 $ 18.00 $ 32.36 |
Schedule of changes in the non-vested restricted stock awards | Three Months Ended March 31, 2021 Weighted Average Number of Shares Grant Date Fair Value Outstanding, beginning of period 76,289 $ 37.01 Granted 78,582 50.80 Forfeited (739) 48.80 Vested (12,728) 28.25 Outstanding at end of period 141,404 $ 45.40 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
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, 2021 Residential mortgage-backed securities $ 366,770 $ — $ 366,770 $ — Commercial mortgage-backed securities 30,452 — 30,452 — Asset-backed securities 4,973 — 4,973 — U.S. Government agency 66,423 — 66,423 — Securities issued by states and political subdivisions in the U.S 11,370 — 11,370 — CRA Mutual Fund 2,281 2,281 — — Derivative assets - interest rate cap 2,962 — 2,962 — 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, 2020 Residential mortgage securities $ 194,688 $ — $ 194,688 $ — Commercial mortgage securities 33,492 — 33,492 — U.S. Government agency securities 37,916 — 37,916 — CRA Mutual Fund 2,313 2,313 — — Derivative assets - interest rate cap 770 — 770 — |
Schedule of carrying amount and estimated fair values of financial instruments | Carrying amount and estimated fair values of financial instruments at March 31, 2021 and December 31, 2020 were as follows (in thousands): Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At March 31, 2021 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 9,432 $ 9,432 $ — $ — $ 9,432 Overnight deposits 1,125,589 1,125,589 — — 1,125,589 Securities available for sale 479,988 — 479,988 — 479,988 Securities held to maturity 2,492 — 2,557 — 2,557 Equity investments 2,281 2,281 — — 2,281 Loans, net 3,202,162 — — 3,224,617 3,224,617 Other investments FRB Stock 7,422 N/A N/A N/A N/A FHLB Stock 2,718 N/A N/A N/A N/A Disability Fund 1,000 — 1,000 — 1,000 CRA - CD 498 498 — — 498 Derivative assets - interest rate cap 2,962 — 2,962 — 2,962 Accrued interest receivable 13,982 — 615 13,367 13,982 Financial liabilities: Non-interest-bearing demand deposits $ 2,167,899 $ 2,167,899 $ — $ — $ 2,167,899 Money market and savings deposits 2,173,460 2,173,460 — — 2,173,460 Time deposits 85,358 — 86,228 — 86,228 Trust preferred securities payable 20,620 — — 20,003 20,003 Subordinated debt, net of issuance cost 24,670 — 25,500 — 25,500 Accrued interest payable 563 5 446 112 563 Secured borrowings 36,475 — 36,982 — 36,982 Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At December 31, 2020 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 8,692 $ 8,692 $ — $ — $ 8,692 Overnight deposits 855,613 855,613 — — 855,613 Securities available for sale 266,096 — 266,096 — 266,096 Securities held to maturity 2,760 — 2,827 — 2,827 Equity investments 2,313 2,313 — — 2,313 Loans, net 3,101,646 — — 3,094,998 3,094,998 Other investments FRB Stock 7,381 N/A N/A N/A N/A FHLB Stock 2,718 N/A N/A N/A N/A Disability Fund 1,000 — 1,000 — 1,000 CRA - CD 498 498 — — 498 Derivative assets - interest rate cap 770 770 — 770 Accrued interest receivable 13,249 — 414 12,835 13,249 Financial liabilities: Non-interest-bearing demand deposits $ 1,726,135 $ 1,726,135 $ — $ — $ 1,726,135 Money market and savings deposits 2,011,409 2,011,409 — 2,011,409 Time deposits 92,062 — 93,157 — 93,157 Trust preferred securities payable 20,620 — — 20,001 20,001 Subordinated debt, net of issuance cost 24,657 — 25,375 — 25,375 Accrued interest payable 712 7 591 114 712 Secured borrowings 36,964 — 36,964 — 36,964 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
Summary of changes in Accumulated Other Comprehensive Income (Loss) balances, net of tax effects | Three months ended March 31, 2021 2020 Beginning balance $ 973 $ 1,207 Other comprehensive income (loss), net of tax: Unrealized gain (loss) on securities available for sale Unrealized holding gain (loss) arising during the period $ (6,934) $ 6,539 Reclassification adjustment for gain included in net income — (975) Tax effect 2,210 (1,756) Net of tax $ (4,724) $ 3,808 Unrealized gain (loss) on cash flow hedges Unrealized holding gain (loss) arising during the period $ 2,277 $ (1,060) Tax effect (726) 334 Net of tax $ 1,551 $ (726) Net current period other comprehensive income (loss) $ (3,173) $ 3,082 Ending balance $ (2,200) $ 4,289 |
Schedule of reclassifications out of accumulated other comprehensive income (loss) | Three months ended March 31, 2020 Proceeds $ 20,975 Gross gains $ 975 Tax impact $ (387) |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |
Schedule of off-balance-sheet financial instruments | At March 31, 2021 At December 31, 2020 Variable Variable Fixed Rate Rate Fixed Rate Rate Undrawn lines of credit $ 20,805 $ 272,649 $ 19,024 $ 266,696 Letters of credit 47,623 — 34,264 — Total $ 68,428 $ 272,649 $ 53,288 $ 266,696 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of Company's sources of non-interest income | Three months ended March 31, 2021 2020 Service charges on deposit accounts $ 1,065 $ 1,081 Global payment group revenue 3,267 1,621 Other service charges and fees 304 627 Total $ 4,636 $ 3,329 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
DERIVATIVES | |
Schedule of derivative position gross on the balance sheet | The following table reflects the derivatives recorded on the balance sheet at March 31, 2021 (in thousands): At March 31, 2021 Notional Amount Fair Value Derivatives designated as hedges: Interest rate caps related to customer deposits $ 300,000 $ 2,962 Total included in Other Assets $ 300,000 $ 2,962 |
Schedule of effect of cash flow hedge accounting on accumulated other comprehensive income | The effect of cash flow hedge accounting on accumulated other comprehensive income at March 31, 2021 is as follows (in thousands): At March 31, 2021 Amount of Loss Recognized in OCI, net of tax Location of Gain (Loss) Reclassified from OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Interest rate caps related to customer deposits $ 1,551 $ N/A $ — |
SUMMARY OF RECENT ACCOUNTING _3
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | ||
Cumulative effect of adopting new accounting standard | $ 132,947 | $ 120,830 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities available-for-sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available for sale, at fair value | $ 479,988 | $ 266,096 |
Available-for-sale Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 483,575 | 262,749 |
Gross Unrealized/Unrecognized Gains | 2,368 | 3,596 |
Gross Unrealized/Unrecognized Losses | (5,955) | (249) |
Investment securities available for sale, at fair value | 479,988 | 266,096 |
Available-for-sale Securities | Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 368,776 | 192,163 |
Gross Unrealized/Unrecognized Gains | 1,540 | 2,599 |
Gross Unrealized/Unrecognized Losses | (3,546) | (74) |
Investment securities available for sale, at fair value | 366,770 | 194,688 |
Available-for-sale Securities | Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 29,895 | 32,589 |
Gross Unrealized/Unrecognized Gains | 828 | 997 |
Gross Unrealized/Unrecognized Losses | (271) | (94) |
Investment securities available for sale, at fair value | 30,452 | 33,492 |
Available-for-sale Securities | Asset-backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,002 | |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (29) | |
Investment securities available for sale, at fair value | 4,973 | |
Available-for-sale Securities | U.S. Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 67,993 | 37,997 |
Gross Unrealized/Unrecognized Gains | 0 | 0 |
Gross Unrealized/Unrecognized Losses | (1,570) | (81) |
Investment securities available for sale, at fair value | 66,423 | $ 37,916 |
Available-for-sale Securities | Securities issued by states and political subdivisions in the U.S | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,909 | |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (539) | |
Investment securities available for sale, at fair value | $ 11,370 |
INVESTMENT SECURITIES (Schedu_2
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities held-to-maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 2,492 | $ 2,760 |
Total Securities | 2,557 | 2,827 |
Held-to-maturity Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,492 | 2,760 |
Gross Unrealized/Unrecognized Gains | 65 | 67 |
Gross Unrealized/Unrecognized Losses | 0 | |
Total Securities | 2,557 | 2,827 |
Held-to-maturity Securities | Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,492 | 2,760 |
Gross Unrealized/Unrecognized Gains | 65 | 67 |
Gross Unrealized/Unrecognized Losses | 0 | |
Total Securities | $ 2,557 | $ 2,827 |
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, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Amortized Cost - CRA Mutual Fund | $ 2,308 | $ 2,299 |
Gross Unrealized/Unrecognized Gains | 0 | 14 |
Gross Unrealized/Unrecognized Losses | (27) | 0 |
Fair Value CRA Mutual Fund | 2,281 | 2,313 |
CRA mutual fund | ||
Marketable Securities [Line Items] | ||
Amortized Cost - CRA Mutual Fund | 2,308 | 2,299 |
Gross Unrealized/Unrecognized Gains | 0 | 14 |
Gross Unrealized/Unrecognized Losses | (27) | 0 |
Fair Value CRA Mutual Fund | $ 2,281 | $ 2,313 |
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, 2021 | Mar. 31, 2020 | |
INVESTMENT SECURITIES | ||
Proceeds from sales of securities available for sale | $ 20,975 | |
Proceeds from calls of securities available for sale | 5,000 | |
Proceeds | $ 0 | 20,975 |
Gross gains | 975 | |
Tax impact | $ (387) |
INVESTMENT SECURITIES (Schedu_4
INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Amortized Cost, Held to maturity | $ 2,492 | $ 2,760 |
Fair Value | ||
Fair Value, Held to maturity | 2,557 | 2,827 |
Amortized Cost | ||
One to five years | 47,993 | 37,997 |
Five to ten years | 15,000 | |
After ten years | 16,909 | |
Amortized Cost, total | 79,902 | 37,997 |
Amortized Cost, Available-for-sale Securities | 483,575 | 262,749 |
Fair Value | ||
One to five years | 47,092 | 37,916 |
Five to ten years | 14,631 | |
After ten years | 16,070 | |
Fair Value, total | 77,793 | 37,916 |
Fair Value, Available-for-sale Securities | 479,988 | 266,096 |
AFS securities pledged to secure customer deposit | 0 | 0 |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost, Held to maturity | 2,492 | 2,760 |
Fair Value | ||
Fair Value, Held to maturity | 2,557 | 2,827 |
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 368,776 | 192,163 |
Fair Value | ||
Fair Value, Available-for-sale Securities | 366,770 | 194,688 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 29,895 | 32,589 |
Fair Value | ||
Fair Value, Available-for-sale Securities | 30,452 | $ 33,492 |
Securities issued by states and political subdivisions in the U.S | ||
Amortized Cost | ||
Amortized Cost, Available-for-sale Securities | 5,002 | |
Fair Value | ||
Fair Value, Available-for-sale Securities | $ 4,973 |
INVESTMENT SECURITIES (Schedu_5
INVESTMENT SECURITIES (Schedule of Securities with Unrealized Losses) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item | |
Marketable equity securities | ||
Number of securities of one issuer | item | 0 | 0 |
Impairment loss | $ 0 | $ 0 |
Equity securities | ||
Marketable equity securities | ||
Less than 12 Months, Estimated Fair Value | 2,281 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (27) | |
Total, Estimated Fair Value | 2,281 | |
Total, Unrealized Losses | (27) | |
Available-for-sale Securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 325,695 | 83,964 |
Less than 12 Months, Unrealized/Unrecognized Losses | (5,954) | (248) |
12 months or more, Estimated Fair Value | 383 | 385 |
12 months or more, Unrealized/Unrecognized Losses | (1) | (1) |
Total, Estimated Fair Value | 326,078 | 84,349 |
Total, Unrealized/Unrecognized Losses | (5,955) | (249) |
Residential mortgage-backed securities | Available-for-sale Securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 233,408 | 33,734 |
Less than 12 Months, Unrealized/Unrecognized Losses | (3,546) | (74) |
Total, Estimated Fair Value | 233,408 | 33,734 |
Total, Unrealized/Unrecognized Losses | (3,546) | (74) |
Commercial mortgage-backed securities | Available-for-sale Securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 9,520 | 12,314 |
Less than 12 Months, Unrealized/Unrecognized Losses | (270) | (93) |
12 months or more, Estimated Fair Value | 383 | 385 |
12 months or more, Unrealized/Unrecognized Losses | (1) | (1) |
Total, Estimated Fair Value | 9,903 | 12,699 |
Total, Unrealized/Unrecognized Losses | (271) | (94) |
Asset-backed Securities | Available-for-sale Securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 4,974 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (29) | |
Total, Estimated Fair Value | 4,974 | |
Total, Unrealized/Unrecognized Losses | (29) | |
U.S. Government agency securities | Available-for-sale Securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 66,423 | 37,916 |
Less than 12 Months, Unrealized/Unrecognized Losses | (1,570) | (81) |
Total, Estimated Fair Value | 66,423 | 37,916 |
Total, Unrealized/Unrecognized Losses | (1,570) | $ (81) |
Securities issued by states and political subdivisions in the U.S | Available-for-sale Securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 11,370 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (539) | |
Total, Estimated Fair Value | 11,370 | |
Total, Unrealized/Unrecognized Losses | (539) | |
CRA mutual fund | Equity securities | ||
Marketable equity securities | ||
Less than 12 Months, Estimated Fair Value | 2,281 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (27) | |
Total, Estimated Fair Value | 2,281 | |
Total, Unrealized Losses | $ (27) |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loan Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 3,243,113 | $ 3,142,319 | ||
Deferred fees | (5,449) | (5,266) | ||
Loans, net of deferred fees and unamortized costs | 3,237,664 | 3,137,053 | ||
Allowance for loan losses | (35,502) | (35,407) | $ (30,924) | $ (26,272) |
Net loans | 3,202,162 | 3,101,646 | ||
Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 2,614,105 | 2,504,388 | ||
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 587,092 | 591,500 | ||
Allowance for loan losses | (10,827) | (12,123) | (9,493) | (7,070) |
Commercial and industrial | Paycheck Protection Program loans | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Net loans | 4,500 | 3,800 | ||
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 41,916 | 46,431 | ||
Allowance for loan losses | (1,717) | (1,581) | (531) | (754) |
Commercial | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 1,981,218 | 1,887,505 | ||
Allowance for loan losses | (18,341) | (17,243) | (17,369) | (15,317) |
Construction | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 121,122 | 112,290 | ||
Allowance for loan losses | (1,707) | (1,593) | (620) | (411) |
Multi-family | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 445,284 | 433,239 | ||
Allowance for loan losses | (2,732) | (2,661) | (2,708) | (2,453) |
One to four family | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 66,481 | 71,354 | ||
Allowance for loan losses | $ (178) | $ (206) | $ (203) | $ (267) |
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, 2021 | Mar. 31, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 35,407 | $ 26,272 |
Provision (credit) for loan losses | 950 | 4,790 |
Loans charged-off | (855) | (201) |
Recoveries | 63 | |
Total ending allowance balance | 35,502 | 30,924 |
Net charge-offs (recoveries) | 855 | 138 |
Real estate | Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 17,243 | 15,317 |
Provision (credit) for loan losses | 1,098 | 2,052 |
Total ending allowance balance | 18,341 | 17,369 |
Real estate | Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 1,593 | 411 |
Provision (credit) for loan losses | 114 | 209 |
Total ending allowance balance | 1,707 | 620 |
Real estate | Multi-family | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 2,661 | 2,453 |
Provision (credit) for loan losses | 71 | 255 |
Total ending allowance balance | 2,732 | 2,708 |
Real estate | One to four family | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 206 | 267 |
Provision (credit) for loan losses | (28) | (64) |
Total ending allowance balance | 178 | 203 |
Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 12,123 | 7,070 |
Provision (credit) for loan losses | (441) | 2,378 |
Loans charged-off | (855) | (13) |
Recoveries | 58 | |
Total ending allowance balance | 10,827 | 9,493 |
Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 1,581 | 754 |
Provision (credit) for loan losses | 136 | (40) |
Loans charged-off | (188) | |
Recoveries | 5 | |
Total ending allowance balance | $ 1,717 | $ 531 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans by Impairment Method) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | $ 4,237 | $ 4,918 | ||
Collectively evaluated for impairment, Allowance for loan losses | 31,265 | 30,489 | ||
Total ending allowance balance | 35,502 | 35,407 | $ 30,924 | $ 26,272 |
Individually evaluated for impairment, Loans | 16,787 | 17,733 | ||
Collectively evaluated for impairment, Loans | 3,226,326 | 3,124,586 | ||
Total ending loan balance | 3,243,113 | 3,142,319 | ||
Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total ending loan balance | 2,614,105 | 2,504,388 | ||
Real estate | Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Collectively evaluated for impairment, Allowance for loan losses | 18,341 | 17,243 | ||
Total ending allowance balance | 18,341 | 17,243 | 17,369 | 15,317 |
Individually evaluated for impairment, Loans | 10,340 | 10,345 | ||
Collectively evaluated for impairment, Loans | 1,970,878 | 1,877,160 | ||
Total ending loan balance | 1,981,218 | 1,887,505 | ||
Real estate | Construction | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Collectively evaluated for impairment, Allowance for loan losses | 1,707 | 1,593 | ||
Total ending allowance balance | 1,707 | 1,593 | 620 | 411 |
Collectively evaluated for impairment, Loans | 121,122 | 112,290 | ||
Total ending loan balance | 121,122 | 112,290 | ||
Real estate | Multi-family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Collectively evaluated for impairment, Allowance for loan losses | 2,732 | 2,661 | ||
Total ending allowance balance | 2,732 | 2,661 | 2,708 | 2,453 |
Collectively evaluated for impairment, Loans | 445,284 | 433,239 | ||
Total ending loan balance | 445,284 | 433,239 | ||
Real estate | One to four family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 44 | 53 | ||
Collectively evaluated for impairment, Allowance for loan losses | 134 | 153 | ||
Total ending allowance balance | 178 | 206 | 203 | 267 |
Individually evaluated for impairment, Loans | 982 | 999 | ||
Collectively evaluated for impairment, Loans | 65,499 | 70,355 | ||
Total ending loan balance | 66,481 | 71,354 | ||
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 2,814 | 3,662 | ||
Collectively evaluated for impairment, Allowance for loan losses | 8,013 | 8,461 | ||
Total ending allowance balance | 10,827 | 12,123 | 9,493 | 7,070 |
Individually evaluated for impairment, Loans | 3,337 | 4,192 | ||
Collectively evaluated for impairment, Loans | 583,755 | 587,308 | ||
Total ending loan balance | 587,092 | 591,500 | ||
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 1,379 | 1,203 | ||
Collectively evaluated for impairment, Allowance for loan losses | 338 | 378 | ||
Total ending allowance balance | 1,717 | 1,581 | $ 531 | $ 754 |
Individually evaluated for impairment, Loans | 2,128 | 2,197 | ||
Collectively evaluated for impairment, Loans | 39,788 | 44,234 | ||
Total ending loan balance | $ 41,916 | $ 46,431 |
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 | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
With an allowance recorded: | |||
Unpaid Principal Balance | $ 6,918 | $ 6,999 | |
Recorded Investment | 5,933 | 6,869 | |
Allowance for Loan Losses Allocated | 4,237 | 4,918 | |
Average Recorded Investment | 6,305 | $ 2,095 | |
Interest Income Recognized | 37 | 10 | |
Without an allowance recorded: | |||
Unpaid Principal Balance | 11,001 | 11,011 | |
Recorded Investment | 10,854 | 10,864 | |
Average Recorded Investment | 10,955 | 4,448 | |
Interest Income Recognized | 174 | 11 | |
Real estate | Commercial | |||
Without an allowance recorded: | |||
Unpaid Principal Balance | 10,340 | 10,345 | |
Recorded Investment | 10,340 | 10,345 | |
Average Recorded Investment | 10,343 | 365 | |
Interest Income Recognized | 167 | 4 | |
Real estate | One to four family | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 598 | 610 | |
Recorded Investment | 468 | 480 | |
Allowance for Loan Losses Allocated | 44 | 53 | |
Average Recorded Investment | 474 | 500 | |
Interest Income Recognized | 8 | 5 | |
Without an allowance recorded: | |||
Unpaid Principal Balance | 661 | 666 | |
Recorded Investment | 514 | 519 | |
Average Recorded Investment | 516 | 1,706 | |
Interest Income Recognized | 7 | 7 | |
Commercial and industrial | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 4,192 | 4,192 | |
Recorded Investment | 3,337 | 4,192 | |
Allowance for Loan Losses Allocated | 2,814 | 3,662 | |
Average Recorded Investment | 3,669 | 1,047 | |
Without an allowance recorded: | |||
Average Recorded Investment | 96 | 2,377 | |
Consumer | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 2,128 | 2,197 | |
Recorded Investment | 2,128 | 2,197 | |
Allowance for Loan Losses Allocated | 1,379 | $ 1,203 | |
Average Recorded Investment | 2,162 | 548 | |
Interest Income Recognized | $ 29 | $ 5 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Non-accrual Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 4,860 | $ 5,620 |
Loans Past Due Over 90 Days Still Accruing | 604 | 769 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 3,337 | 4,192 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 1,523 | 1,428 |
Loans Past Due Over 90 Days Still Accruing | $ 604 | $ 769 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Past Due Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 19,234 | $ 30,294 |
Loans not Past Due | 3,223,879 | 3,112,025 |
Total loans | 3,243,113 | 3,142,319 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,349 | 7,489 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,421 | 16,416 |
Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,464 | 6,389 |
Real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,614,105 | 2,504,388 |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,360 | 10,024 |
Loans not Past Due | 1,977,858 | 1,877,481 |
Total loans | 1,981,218 | 1,887,505 |
Real estate | Commercial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,360 | 40 |
Real estate | Commercial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9,984 | |
Real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans not Past Due | 121,122 | 112,290 |
Total loans | 121,122 | 112,290 |
Real estate | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans not Past Due | 445,284 | 433,239 |
Total loans | 445,284 | 433,239 |
Real estate | One to four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,908 | |
Loans not Past Due | 66,481 | 68,446 |
Total loans | 66,481 | 71,354 |
Real estate | One to four family | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,908 | |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13,678 | 15,021 |
Loans not Past Due | 573,414 | 576,479 |
Total loans | 587,092 | 591,500 |
Commercial and industrial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,941 | 4,429 |
Commercial and industrial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,400 | 6,400 |
Commercial and industrial | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,337 | 4,192 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,196 | 2,341 |
Loans not Past Due | 39,720 | 44,090 |
Total loans | 41,916 | 46,431 |
Consumer | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 48 | 112 |
Consumer | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 21 | 32 |
Consumer | Greater than 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 2,127 | $ 2,197 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructurings) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)loanitem | Mar. 31, 2020item | Dec. 31, 2020USD ($)loan | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans modified in troubled debt restructurings | $ 1,339 | $ 1,360 | |
Number of TDR loans during the period | loan | 0 | 0 | |
Specific reserves modified as TDRs | $ 44 | $ 53 | |
Number of contracts financing receivable modifications | item | 0 | 0 | |
COVID 19 - Impact | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Number of TDR loans during the period | loan | 30 | ||
Real estate | Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans modified in troubled debt restructurings | $ 356 | 361 | |
Real estate | One to four family | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans modified in troubled debt restructurings | $ 982 | $ 999 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans by Risk Category) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 3,243,113 | $ 3,142,319 |
Commercial Construction and Multifamily Real Estate Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 3,134,716 | 3,024,534 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 3,117,540 | 3,006,498 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 3,855 | 3,860 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 9,984 | 9,984 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 3,337 | 4,192 |
Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 2,614,105 | 2,504,388 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,981,218 | 1,887,505 |
Real estate | Commercial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 1,970,878 | 1,877,160 |
Real estate | Commercial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 356 | 361 |
Real estate | Commercial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 9,984 | 9,984 |
Real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 121,122 | 112,290 |
Real estate | Construction | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 121,122 | 112,290 |
Real estate | Multi-family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 445,284 | 433,239 |
Real estate | Multi-family | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 445,284 | 433,239 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 587,092 | 591,500 |
Commercial and industrial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 580,256 | 583,809 |
Commercial and industrial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 3,499 | 3,499 |
Commercial and industrial | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 3,337 | $ 4,192 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES (COVID-19 Loan Modifications) (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)loan | Dec. 31, 2020loan | |
Financing Receivable, Impaired [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | loan | 0 | 0 |
COVID 19 - Impact | ||
Financing Receivable, Impaired [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | loan | 30 | |
Loan Restructuring, Trial Modifications, Amount | $ 65.3 | |
Percentage of Loans and Leases Receivable, Modified | 2.10% | |
COVID 19 - Impact | Principal Payment Deferrals | ||
Financing Receivable, Impaired [Line Items] | ||
Loan Restructuring, Trial Modifications, Amount | $ 37.4 | |
Percentage of Loans and Leases Receivable, Modified | 1.20% | |
COVID 19 - Impact | Full Payment Deferrals | ||
Financing Receivable, Impaired [Line Items] | ||
Loan Restructuring, Trial Modifications, Amount | $ 27.9 | |
Percentage of Loans and Leases Receivable, Modified | 0.90% |
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, 2021 | Mar. 31, 2020 | |
Basic | ||
Net income per consolidated statements of income | $ 12,117 | $ 6,097 |
Less: Earnings allocated to participating securities | (55) | (65) |
Net income available to common stockholder | $ 12,062 | $ 6,032 |
Weighted average common shares outstanding including participating securities | 8,313,660 | 8,304,205 |
Less: Weighted average participating securities | (37,486) | (88,246) |
Weighted average common shares outstanding | 8,276,174 | 8,215,959 |
Basic earnings per common share (in dollars per share) | $ 1.46 | $ 0.73 |
Diluted | ||
Net income allocated to common shareholders | $ 12,062 | $ 6,032 |
Weighted average common shares outstanding for basic earnings per common share | 8,276,174 | 8,215,959 |
Average shares and dilutive potential common shares | 8,417,319 | 8,412,782 |
Diluted earnings per common share (in dollars per share) | $ 1.43 | $ 0.72 |
Stock Option | ||
Diluted | ||
Add: Dilutive effects of assumed exercise of stock options | 141,145 | 131,159 |
Restricted stock | ||
Calculations of basic and diluted earnings per share | ||
Number of antidilutive shares not considered in computing diluted earnings per share | 108,178 | 108,178 |
Diluted | ||
Dilutive effects of assumed exercise of stock options/vesting of performance based restricted stock | 65,664 |
STOCK COMPENSATION PLAN (Summar
STOCK COMPENSATION PLAN (Summary of the Status of the Stock Option Plan) (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Number of Options | |
Outstanding, beginning of period | 231,000 |
Exercised | 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 | $ / shares | $ 18 |
Outstanding, end of period | $ / shares | 18 |
Options vested and exercisable at end of period | $ / shares | $ 18 |
Weighted average remaining contractual life (years) | 3 years 1 month 17 days |
STOCK COMPENSATION PLAN (Summ_2
STOCK COMPENSATION PLAN (Summary of Stock Options Outstanding) (Details) | 3 Months Ended |
Mar. 31, 2021$ / 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 | 3 years 1 month 17 days |
Weighted Average Exercise Price | $ 18 |
Weighted Average Intrinsic Price | 32.36 |
$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 | 3 years 1 month 17 days |
Weighted Average Exercise Price | $ 18 |
Weighted Average Intrinsic Price | $ 32.36 |
STOCK COMPENSATION PLAN (Summ_3
STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details) - Restricted stock - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
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 | 76,289 | |
Number of shares, Granted | 78,582 | 1,785 |
Number of shares, Forfeited | (739) | |
Number of shares, Vested | (12,728) | |
Number of shares, Outstanding at end of period | 141,404 | 76,289 |
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, beginning of period | $ 37.01 | |
Weighted Average Grant Date fair Value, Granted | 50.80 | |
Weighted Average Grant Date fair Value, Forfeited | 48.80 | |
Weighted Average Grant Date fair Value, Vested | 28.25 | |
Weighted Average Grant Date fair Value, at end of period | $ 45.40 | $ 37.01 |
STOCK COMPENSATION PLAN (Detail
STOCK COMPENSATION PLAN (Details) - USD ($) | May 18, 2019 | Jan. 01, 2019 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | May 28, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding shares | 231,000 | 231,000 | ||||
Exercise of stock options (in shares) | 0 | |||||
Restricted Stock Units | Key Personnel | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares, Granted | 78,582 | |||||
Vesting period | 3 years | |||||
Restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost related to non-vested stock options | $ 5,700,000 | |||||
Compensation cost related to stock awards | $ 476,000 | $ 354,000 | ||||
Number of shares, Granted | 78,582 | 1,785 | ||||
Unrecognized compensation expense recognition period | 2 years 5 months 15 days | |||||
Fair value of shares vested | $ 360,000 | |||||
Restricted stock | Non-employee directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost related to non-vested stock options | 330,000 | |||||
Compensation cost related to stock awards | $ 110,000 | 100,000 | ||||
Number of shares, Granted | 38,900 | |||||
Service period (in years) | 3 years | |||||
Vesting period | 3 years | |||||
Unrecognized compensation expense recognition period | 9 months | |||||
Performance-Based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation cost related to stock awards | $ 0 | 358,000 | ||||
Number of shares, Granted | 0 | |||||
Performance period (in years) | 3 years | |||||
Number of PRSUs awarded | 90,000 | |||||
Equity Incentive Plan 2019 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment award, shares authorized, maximum | 340,000 | |||||
Equity Incentive Plan 2019 | Stock Option | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of exercise price to the fair market value | 100.00% | |||||
Equity Incentive Plan 2019 | Incentive stock options granted to any 10% stockholder | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of the exercise price to the fair market value of the shares covered by the stock option on the date of grant in the case of an ISO granted to 10% stockholder | 110.00% | |||||
Equity Incentive Plan 2009 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding shares | 468,382 | |||||
Number of shares expired | 628,719 | |||||
Compensation cost related to stock awards | $ 0 | $ 0 | ||||
Equity Incentive Plan 2009 | 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 2009 | 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 | |||||
Equity Incentive Plan 2009 | 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 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 484,761,000 | $ 271,169,000 | |
Amount of transfers of assets measured on a recurring basis out of Level 1 of the fair value hierarchy into Level 2 | 0 | $ 0 | |
Amount of transfers of assets measured on a recurring basis out of Level 2 of the fair value hierarchy into Level 1 | 0 | $ 0 | |
Fair value assets measured at fair value on a non-recurring basis | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value liability | 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 | 366,770,000 | 194,688,000 | |
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 | 30,452,000 | 33,492,000 | |
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 | 2,281,000 | 2,313,000 | |
Carrying Amount | Asset-backed Securities | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 4,973,000 | ||
Carrying Amount | U.S. Government agency securities | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 66,423,000 | 37,916,000 | |
Carrying Amount | Securities issued by states and political subdivisions in the U.S | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 11,370,000 | ||
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 | 2,281,000 | 2,313,000 | |
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 | 366,770,000 | 194,688,000 | |
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 | 30,452,000 | 33,492,000 | |
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 2 | Asset-backed Securities | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 4,973,000 | ||
Fair Value, Inputs, Level 2 | U.S. Government agency securities | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 66,423,000 | 37,916,000 | |
Fair Value, Inputs, Level 2 | Securities issued by states and political subdivisions in the U.S | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 11,370,000 | ||
Interest Rate Cap | Carrying Amount | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 2,962,000 | 770,000 | |
Interest Rate Cap | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 2,962,000 | $ 770,000 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Debt securities available for sale | $ 479,988 | $ 266,096 |
Securities held to maturity | 2,557 | 2,827 |
Other investments | ||
Other Investments | 11,638 | 11,597 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 2,167,899 | 1,726,135 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 9,432 | 8,692 |
Overnight deposits | 1,125,589 | 855,613 |
Debt securities available for sale | 479,988 | 266,096 |
Securities held to maturity | 2,492 | 2,760 |
Equity investments | 2,281 | 2,313 |
Loans, net | 3,202,162 | 3,101,646 |
Other investments | ||
FRB Stock | 7,422 | 7,381 |
FHLB Stock | 2,718 | 2,718 |
Disability Fund | 1,000 | 1,000 |
CRA - CD | 498 | 498 |
Accrued interest receivable | 13,982 | 13,249 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 2,167,899 | 1,726,135 |
Money market and savings deposits | 2,173,460 | 2,011,409 |
Time deposits | 85,358 | 92,062 |
Trust preferred securities payable | 20,620 | 20,620 |
Subordinated debt, net of issuance cost | 24,670 | 24,657 |
Accrued interest payable | 563 | 712 |
Secured Borrowings | 36,475 | 36,964 |
Total Fair Value | ||
Financial assets: | ||
Cash and due from banks | 9,432 | 8,692 |
Overnight deposits | 1,125,589 | 855,613 |
Debt securities available for sale | 479,988 | 266,096 |
Securities held to maturity | 2,557 | 2,827 |
Equity investments | 2,281 | 2,313 |
Loans, net | 3,224,617 | 3,094,998 |
Other investments | ||
Disability Fund | 1,000 | 1,000 |
CRA - CD | 498 | 498 |
Accrued interest receivable | 13,982 | 13,249 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 2,167,899 | 1,726,135 |
Money market and savings deposits | 2,173,460 | 2,011,409 |
Time deposits | 86,228 | 93,157 |
Trust preferred securities payable | 20,003 | 20,001 |
Subordinated debt, net of issuance cost | 25,500 | 25,375 |
Accrued interest payable | 563 | 712 |
Secured Borrowings | 36,982 | 36,964 |
Interest Rate Cap | Carrying Amount | ||
Other investments | ||
Derivative Asset | 2,962 | 770 |
Interest Rate Cap | Total Fair Value | ||
Other investments | ||
Derivative Asset | 2,962 | 770 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Cash and due from banks | 9,432 | 8,692 |
Overnight deposits | 1,125,589 | 855,613 |
Equity investments | 2,281 | 2,313 |
Other investments | ||
CRA - CD | 498 | 498 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 2,167,899 | 1,726,135 |
Money market and savings deposits | 2,173,460 | 2,011,409 |
Accrued interest payable | 5 | 7 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Debt securities available for sale | 479,988 | 266,096 |
Securities held to maturity | 2,557 | 2,827 |
Other investments | ||
Disability Fund | 1,000 | 1,000 |
Accrued interest receivable | 615 | 414 |
Financial liabilities: | ||
Money market and savings deposits | 0 | |
Time deposits | 86,228 | 93,157 |
Subordinated debt, net of issuance cost | 25,500 | 25,375 |
Accrued interest payable | 446 | 591 |
Secured Borrowings | 36,982 | 36,964 |
Fair Value, Inputs, Level 2 | Interest Rate Cap | ||
Other investments | ||
Derivative Asset | 2,962 | 770 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Loans, net | 3,224,617 | 3,094,998 |
Other investments | ||
Accrued interest receivable | 13,367 | 12,835 |
Financial liabilities: | ||
Money market and savings deposits | 0 | |
Trust preferred securities payable | 20,003 | 20,001 |
Accrued interest payable | $ 112 | $ 114 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 973 | |
Unrealized holding gain (loss) arising during the period | (6,934) | $ 6,539 |
Reclassification adjustment for gain included in net income | 0 | (975) |
Tax effect | 2,210 | (1,756) |
Net of tax | (4,724) | 3,808 |
Unrealized holding gain (loss) arising during the period | 2,277 | (1,060) |
Tax effect | (726) | 334 |
Net of tax | 1,551 | (726) |
Net current period other comprehensive income (loss) | (3,173) | 3,082 |
Ending balance | (2,200) | |
AOCI (Loss), Net | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 973 | 1,207 |
Net current period other comprehensive income (loss) | (3,173) | 3,082 |
Ending balance | $ (2,200) | $ 4,289 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||
Income tax expense | $ (5,627) | $ (2,906) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Proceeds from sales and calls of securities and associated gains and losses (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
Proceeds from sales of securities available for sale | $ 20,975 |
Gross gains | 975 |
Tax impact | $ (387) |
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, 2021 | Dec. 31, 2020 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 68,428 | $ 53,288 |
Variable Rate | 272,649 | 266,696 |
Undrawn lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 20,805 | 19,024 |
Variable Rate | 272,649 | 266,696 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 47,623 | 34,264 |
Variable Rate | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 68,428 | $ 53,288 |
Maturity of stand by letters of credit and time deposits | one year | |
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 | 2.00% | 2.00% |
Commitments term | 1 year | |
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 | 8.30% | 8.30% |
Commitments term | 2 years | |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 47,623 | $ 34,264 |
Amount of off-balance-sheet financial instruments collateral received | $ 39,500 | $ 26,900 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of non-interest income) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Total non-interest income | $ 4,636 | $ 3,329 | |
Retained Earnings (Accumulated Deficit) | 132,947 | $ 120,830 | |
Service charges on deposit accounts | |||
Non-interest income | 1,065 | 1,081 | |
Global payment group revenue | |||
Non-interest income | 3,267 | 1,621 | |
Other service charges and fees | |||
Non-interest income | $ 304 | $ 627 |
DERIVATIVES - Derivative positi
DERIVATIVES - Derivative position (Details) - Derivatives designated as hedging instruments $ in Thousands | Mar. 31, 2021USD ($) |
Interest rate caps related to customer deposits | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount, derivative asset | $ 300,000 |
Fair value | 2,962 |
Other assets | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount, derivative asset | 300,000 |
Fair value | 2,962 |
Deposit liability | Interest rate caps related to customer deposits | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount, derivative liability | $ 300,000 |
DERIVATIVES - Cash flow hedge a
DERIVATIVES - Cash flow hedge accounting (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Derivatives designated as hedging instruments | Interest rate caps related to customer deposits | Cash flow hedge | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Amount of Loss Recognized in OCI on Derivative | $ 1,551 |