Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Document And Entity Information (Abstract) | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
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 $0.01 per share | |
Trading Symbol | MCB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,931,697 | |
Entity Central Index Key | 0001476034 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 32,483 | $ 28,864 |
Overnight deposits | 1,381,475 | 2,330,486 |
Total cash and cash equivalents | 1,413,958 | 2,359,350 |
Investment securities available for sale, at fair value | 505,728 | 566,624 |
Investment securities held to maturity (estimated fair value of $436.8 million and $380.1 million at March 31, 2022 and December 31, 2021, respectively) | 467,893 | 382,099 |
Equity investment securities, at fair value | 2,173 | 2,273 |
Total securities | 975,794 | 950,996 |
Other investments | 15,989 | 11,998 |
Loans, net of deferred fees and costs | 4,121,443 | 3,731,929 |
Allowance for loan losses | (38,134) | (34,729) |
Net loans | 4,083,309 | 3,697,200 |
Receivable from global payments business, net | 62,129 | 39,864 |
Accrued interest receivable | 16,186 | 15,195 |
Premises and equipment, net | 16,434 | 15,116 |
Prepaid expenses and other assets | 33,408 | 16,906 |
Goodwill | 9,733 | 9,733 |
Total assets | 6,626,940 | 7,116,358 |
Deposits | ||
Noninterest-bearing demand deposits | 3,176,048 | 3,668,673 |
Interest-bearing deposits | 2,763,315 | 2,766,899 |
Total deposits | 5,939,363 | 6,435,572 |
Trust preferred securities | 20,620 | 20,620 |
Subordinated debt, net of issuance cost | 24,712 | |
Secured borrowing | 32,322 | 32,461 |
Accounts payable, accrued expenses and other liabilities | 50,216 | 36,411 |
Accrued interest payable | 297 | 746 |
Prepaid third-party debit cardholder balances | 24,092 | 8,847 |
Total liabilities | 6,066,910 | 6,559,369 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 25,000,000 shares authorized, 10,931,697 and 10,920,569 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 109 | 109 |
Additional paid in capital | 383,327 | 382,999 |
Retained earnings | 200,406 | 181,385 |
Accumulated other comprehensive income (loss), net of tax | (23,812) | (7,504) |
Total stockholders' equity | 560,030 | 556,989 |
Total liabilities and stockholders' equity | $ 6,626,940 | $ 7,116,358 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Securities held to maturity | $ 436.8 | $ 380.1 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 10,931,697 | 10,920,569 |
Common stock, shares outstanding | 10,931,697 | 10,920,569 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest and dividend income | ||
Loans, including fees | $ 46,536 | $ 36,840 |
Securities | ||
Taxable | 3,341 | 736 |
Tax-exempt | 51 | 35 |
Overnight deposits | 915 | 344 |
Other interest and dividends | 127 | 151 |
Total interest income | 50,970 | 38,106 |
Interest expense | ||
Deposits | 3,625 | 3,171 |
Trust preferred securities | 108 | 108 |
Subordinated debt | 605 | 405 |
Total interest expense | 4,338 | 3,684 |
Net interest income | 46,632 | 34,422 |
Provision for loan losses | 3,400 | 950 |
Net interest income after provision for loan losses | 43,232 | 33,472 |
Non-interest income | ||
Non-interest income | 7,533 | 4,636 |
Unrealized gain (loss) on equity securities | (106) | (41) |
Total non-interest income | 7,427 | 4,595 |
Non-interest expense | ||
Compensation and benefits | 13,421 | 11,428 |
Bank premises and equipment | 2,116 | 2,024 |
Professional fees | 1,474 | 1,304 |
Technology costs | 1,399 | 927 |
Licensing fees | 2,294 | 2,074 |
Other expenses | 3,915 | 2,566 |
Total non-interest expense | 24,619 | 20,323 |
Net income before income tax expense | 26,040 | 17,744 |
Income tax expense | 7,019 | 5,627 |
Net income | $ 19,021 | $ 12,117 |
Earnings per common share | ||
Basic earnings per common share (in dollars per share) | $ 1.74 | $ 1.46 |
Diluted earnings per common share (in dollars per share) | $ 1.69 | $ 1.43 |
Service charges on deposit accounts | ||
Non-interest income | ||
Non-interest income | $ 1,370 | $ 972 |
Revenue, Product and Service [Extensible List] | Service charges on deposit accounts | Service charges on deposit accounts |
Global payments revenue | ||
Non-interest income | ||
Non-interest income | $ 5,657 | $ 3,360 |
Revenue, Product and Service [Extensible List] | Global payments revenue | Global payments revenue |
Other service charges and fees | ||
Non-interest income | ||
Non-interest income | $ 506 | $ 304 |
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, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net Income | $ 19,021 | $ 12,117 |
Other comprehensive income: | ||
Unrealized gain (loss) arising during the period | (32,195) | (6,934) |
Tax effect | 9,800 | 2,210 |
Net of tax | (22,395) | (4,724) |
Cash flow hedges: | ||
Unrealized gain (loss) arising during the period | 8,776 | 2,277 |
Tax effect | (2,689) | (726) |
Net of tax | 6,087 | 1,551 |
Total other comprehensive income (loss) | (16,308) | (3,173) |
Comprehensive Income (Loss) | $ 2,713 | $ 8,944 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Class B Preferred StockPreferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI (Loss), Net | Total |
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, net of forfeiture | $ 1 | 1 | ||||
Restricted stock, net of forfeiture (in shares) | 93,281 | |||||
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 | ||||
Balance at Dec. 31, 2021 | $ 109 | 382,999 | 181,385 | (7,504) | 556,989 | |
Balance (in shares) at Dec. 31, 2021 | 10,920,569 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted stock, net of forfeiture (in shares) | 23,487 | |||||
Stock-based compensation | 1,519 | 1,519 | ||||
Impact of shares for tax withholding for restricted stock vesting | (1,191) | (1,191) | ||||
Impact of shares for tax withholding for restricted stock vesting (in shares) | (12,359) | |||||
Net Income | 19,021 | 19,021 | ||||
Other comprehensive income (loss) | (16,308) | (16,308) | ||||
Balance at Mar. 31, 2022 | $ 109 | $ 383,327 | $ 200,406 | $ (23,812) | $ 560,030 | |
Balance (in shares) at Mar. 31, 2022 | 10,931,697 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 19,021 | $ 12,117 |
Adjustments to reconcile net income to net cash: | ||
Net depreciation amortization and accretion | 1,161 | 1,272 |
Provision for loan losses | 3,400 | 950 |
Stock-based compensation | 1,519 | 586 |
Net change in deferred loan fees | 1,037 | 183 |
Deferred income tax (benefit) expense | 715 | |
Dividends earned on CRA fund | (6) | (9) |
Unrealized (gain) loss on equity securities | 106 | 41 |
Net change in: | ||
Accrued interest receivable | (991) | (733) |
Accounts payable, accrued expenses and other liabilities | 13,805 | (18,908) |
Third-party debit cardholder balances | 15,245 | 6,972 |
Accrued interest payable | (449) | (149) |
Receivable from global payments, net | (22,265) | (11,097) |
Prepaid expenses and other assets | (701) | 7,958 |
Net cash provided by (used in) operating activities | 30,882 | (102) |
Cash flows from investing activities | ||
Loan originations, purchases and payments, net | (390,546) | (101,649) |
Redemptions of other investments | 2 | |
Purchases of other investments | (3,991) | (43) |
Purchase of securities available-for-sale | (246,744) | |
Purchase of securities held-for-investment | (95,822) | |
Proceeds from paydowns and maturities of securities available-for-sale | 28,352 | 25,243 |
Proceeds from paydowns of securities held-to-maturity | 9,858 | 262 |
Purchase of premises and equipment, net | (1,874) | (774) |
Net cash provided by (used in) investing activities | (454,023) | (323,703) |
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 | (1,191) | (2,101) |
Redemption of subordinated debt | (24,712) | |
Proceeds from (repayments of) secured borrowings, net | (139) | (489) |
Net increase (decrease) in deposits | (496,209) | 597,111 |
Net cash provided by (used in) financing activities | (522,251) | 594,521 |
Increase (decrease) in cash and cash equivalents | (945,392) | 270,716 |
Cash and cash equivalents at the beginning of the period | 2,359,350 | 864,305 |
Cash and cash equivalents at the end of the period | 1,413,958 | 1,135,021 |
Cash paid for: | ||
Interest | 4,787 | 3,833 |
Income Taxes | $ 2,725 | $ 2,250 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2022 | |
ORGANIZATION | |
ORGANIZATION | N OTE 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 Company’s primary market is the New York metropolitan area. The Company provides a broad range of business, commercial and retail banking products and services to small businesses, middle-market enterprises, public entities and affluent individuals. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-Q. The Company’s primary lending products are CRE loans, C&I loans, and multi-family 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 Company’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 Company offers corporate cash management and retail banking services and, through its Global Payments Group (“global payments business”), provides BaaS to its fintech partners, which includes serving as an issuing bank for third-party managed debit card programs nationwide and providing other financial infrastructure, including cash settlement and custodian deposit services. 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, 2022 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 2 – BASIS OF PRESENTATION The accounting and reporting policies of the Company conform with GAAP and predominant practices within the U.S. banking industry. The Unaudited Consolidated Financial Statements (“unaudited financial statements”) include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated. The unaudited financial statements 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 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 unaudited 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 may have been reclassified to conform to the current presentation. Reclassification had no effect on prior year net income or stockholders’ equity. The results of operations for the for the three months ended March 31, 2022 and 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 financial statements presented in this report should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the SEC. |
SUMMARY OF RECENT ACCOUNTING PR
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 – SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS Pursuant to the JOBS Act, an EGC is provided the option to adopt new or revised accounting standards that may be issued by the FASB or the SEC either (i) within the same periods as those otherwise applicable to non-EGCs or (ii) within the same time periods as private companies. The Company elected delayed effective dates of recently issued accounting standards. As permitted by the JOBS Act, so long as it qualifies as an EGC, the Company will take advantage of some of the reduced regulatory and reporting requirements that are available to it, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments. The Company will lose its EGC status on December 31, 2022, since that would be the last day of the fiscal year of the Company following the fifth anniversary of the date of the first sale of common equity securities of the Company pursuant to an effective registration statement under the Securities Act of 1933. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires companies that lease assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. 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 required to implement ASU 2016-02 by December 31, 2022 and is currently evaluating the potential impact on its consolidated financial statements. In June 2016, the FASB issued ASU 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 conditions, and reasonable and supportable forecasts. ASU 2016-13 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 AFS debt securities and purchased financial assets with credit deterioration. In October 2019, the FASB approved a delay for the implementation of ASU 2016-13. Accordingly, the Company is required to implement ASU 2016-13 by January 1, 2023. Management has established a committee to evaluate the impact of ASU 2016-13 on the Company’s financial statements. The Company expects to recognize a one-time cumulative adjustment to the allowance for loan losses as of the beginning of the reporting period in which ASU 2016-13 takes effect. The Company is currently analyzing certain aspects of the CECL models, inputting data into the models, and evaluating the potential impact on the Company’s ALLL. 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 LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. The amendments in this ASU clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Management has established a working group that is in the process of evaluating the impact of the transition from LIBOR on the Company and its consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE 4 - INVESTMENT SECURITIES The following tables summarize the amortized cost and fair value of debt securities AFS and HTM and equity investments 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, 2022 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,995 $ — $ (5,249) $ 62,746 U.S. State and Municipal securities 11,761 — (1,523) 10,238 Residential MBS 448,457 5 (36,341) 412,121 Commercial MBS 17,217 41 (1,050) 16,208 Asset-backed securities 4,477 — (62) 4,415 Total securities available-for-sale $ 549,907 $ 46 $ (44,225) $ 505,728 Held-to-Maturity Securities: U.S. Treasury securities $ 29,821 $ — $ (1,332) $ 28,489 U.S. State and Municipal securities 15,995 — (1,553) 14,442 Residential MBS 413,947 — (27,486) 386,461 Commercial MBS 8,130 — (697) 7,433 Total securities held-to-maturity $ 467,893 $ — $ (31,068) $ 436,825 Equity Investments: CRA Mutual Fund $ 2,332 $ — $ (159) $ 2,173 Total equity investment securities $ 2,332 $ — $ (159) $ 2,173 Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2021 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,994 $ — $ (1,660) $ 66,334 U.S. State and Municipal securities 11,799 — (300) 11,499 Residential MBS 476,393 623 (10,465) 466,551 Commercial MBS 17,787 219 (379) 17,627 Asset-backed securities 4,635 — (22) 4,613 Total securities available-for-sale $ 578,608 $ 842 $ (12,826) $ 566,624 Held-to-Maturity Securities: U.S. Treasury securities $ 29,811 $ 6 $ (43) $ 29,774 U.S. State and Municipal securities 16,055 299 — 16,354 Residential MBS 328,095 105 (2,259) 325,941 Commercial MBS 8,138 — (99) 8,039 Total securities held-to-maturity $ 382,099 $ 410 $ (2,401) $ 380,108 Equity Investments: CRA Mutual Fund $ 2,326 $ — $ (53) $ 2,273 Total equity investment securities $ 2,326 $ — $ (53) $ 2,273 For the three months ended March 31, 2022 and 2021, there were no sales and calls of AFS securities. The tables below summarize, by contractual maturity, the amortized cost and fair value of debt securities. The tables do not include the effect of principal repayments or scheduled principal amortization. Equity securities, primarily investment in mutual funds, have been excluded from the table. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties (in thousands): Held-to-Maturity Available-for-Sale At March 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 29,821 28,489 48,492 45,280 After 5 years though 10 years 9,815 9,083 35,249 32,997 After 10 years 428,257 399,253 466,166 427,451 Total Securities $ 467,893 $ 436,825 $ 549,907 $ 505,728 Held-to-Maturity Available-for-Sale At December 31, 2021 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 29,811 29,774 48,515 47,370 After 5 years though 10 years 9,973 9,912 36,242 36,024 After 10 years 342,315 340,422 493,851 483,230 Total Securities $ 382,099 $ 380,108 $ 578,608 $ 566,624 There were no securities pledged as collateral at March 31, 2022 and December 31, 2021. At March 31, 2022 and December 31, 2021, all of the residential mortgage securities and commercial mortgage securities held by the Company were issued by U.S. Government-sponsored entities and agencies. Debt securities with unrealized losses 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 Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At March 31, 2022 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: Residential MBS $ 304,552 $ (24,766) $ 106,793 $ (11,575) $ 411,345 $ (36,341) Commercial MBS 5,595 (410) 7,519 (640) 13,114 (1,050) Asset-backed securities 4,415 (62) — — 4,415 (62) U.S. Government agency securities — — 62,746 (5,249) 62,746 (5,249) U.S. State and Municipal securities 6,294 (628) 3,944 (895) 10,238 (1,523) Total securities available-for-sale $ 320,856 $ (25,866) $ 181,002 $ (18,359) $ 501,858 $ (44,225) Held-to-Maturity Securities: Residential MBS $ 386,461 $ (27,486) $ — $ — $ 386,461 $ (27,486) Commercial MBS 7,433 (697) — — 7,433 (697) U.S. Treasury Securities 28,489 (1,332) — — 28,489 (1,332) U.S. State and Municipal securities 14,442 (1,553) — — 14,442 (1,553) Total securities held-to-maturity $ 436,825 $ (31,068) $ — $ — $ 436,825 $ (31,068) Less than 12 Months 12 Months or More Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At December 31, 2021 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: Residential MBS $ 423,686 $ (9,727) $ 12,931 $ (738) $ 436,617 $ (10,465) Commercial MBS 11,202 (296) 3,511 (83) 14,713 (379) Asset-backed securities 4,613 (22) — — 4,613 (22) U.S. Government agency securities 29,267 (730) 37,067 (930) 66,334 (1,660) U.S. State and Municipal securities 8,372 (300) — — 8,372 (300) Total securities available-for-sale $ 477,140 $ (11,075) $ 53,509 $ (1,751) $ 530,649 $ (12,826) Held-to-Maturity Securities: Residential MBS $ 301,896 $ (2,259) $ — $ — $ 301,896 $ (2,259) Commercial MBS 8,039 (99) — — 8,039 (99) U.S. Treasury Securities 9,697 (43) — — 9,697 (43) Total securities held-to-maturity $ 319,632 $ (2,401) $ — $ — $ 319,632 $ (2,401) The unrealized losses on securities are primarily due to the changes in market interest rates subsequent to purchase. The Company did not consider these securities to have OTTI at March 31, 2022 or December 31, 2021 since the decline in market value was attributable to changes in interest rates and not credit quality. In addition, the Company does not intend to sell and does not believe that it is more likely than not that it will be required to sell these investments until there is a full recovery of the unrealized loss, which may be at maturity. As a result, no impairment loss was recognized during the three months ended March 31, 2022 or for the year ended December 31, 2021. At March 31, 2022 and December 31, 2021, 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, 2022 | |
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 (in thousands): March 31, 2022 December 31, 2021 Real estate Commercial $ 2,782,092 $ 2,488,382 Construction 168,760 151,791 Multi-family 373,095 355,290 One-to-four family 52,819 57,163 Total real estate loans 3,376,766 3,052,626 Commercial and industrial 723,624 654,535 Consumer 29,688 32,366 Total loans 4,130,078 3,739,527 Deferred fees, net of origination costs (8,635) (7,598) Loans, net of deferred fees and costs 4,121,443 3,731,929 Allowance for loan losses (38,134) (34,729) Net loans $ 4,083,309 $ 3,697,200 Included in C&I loans at March 31, 2022 and December 31, 2021 are $298,000 and $561,000 respectively, of PPP loans. The following tables present the activity in the ALLL by segment. The portfolio segments represent the categories that the Company uses to determine its ALLL (in thousands): Commercial Commercial One-to-four Three months ended March 31, 2022 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for loan losses: Beginning balance $ 22,216 $ 7,708 $ 2,105 $ 2,156 $ 140 $ 404 $ 34,729 Provision (credit) for loan losses 2,504 780 224 100 (36) (172) 3,400 Loans charged-off — — — — — — — Recoveries — — — — — 5 5 Total ending allowance balance $ 24,720 $ 8,488 $ 2,329 $ 2,256 $ 104 $ 237 $ 38,134 Commercial Commercial One-to-four Three months ended March 31, 2021 Real Estate & Industrial Construction Multi-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 Net recoveries for the three months ended March 31, 2022 were $5,000. Net charge-offs for the three months ended March 31, 2021 were $855,000. The following tables present the balance in the ALLL and the recorded investment in loans by portfolio segment based on impairment method (in thousands): Commercial Commercial One-to-four At March 31, 2022 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 24 $ 24 Collectively evaluated for impairment 24,720 8,488 2,329 2,256 104 213 38,110 Total ending allowance balance $ 24,720 $ 8,488 $ 2,329 $ 2,256 $ 104 $ 237 $ 38,134 Loans: Individually evaluated for impairment $ 28,478 $ — $ — $ — $ 933 $ 24 $ 29,435 Collectively evaluated for impairment 2,753,614 723,624 168,760 373,095 51,886 29,664 4,100,643 Total ending loan balance $ 2,782,092 $ 723,624 $ 168,760 $ 373,095 $ 52,819 $ 29,688 $ 4,130,078 Commercial Commercial One-to-four At December 31, 2021 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ 26 $ 170 $ 196 Collectively evaluated for impairment 22,216 7,708 2,105 2,156 114 234 34,533 Total ending allowance balance $ 22,216 $ 7,708 $ 2,105 $ 2,156 $ 140 $ 404 $ 34,729 Loans: Individually evaluated for impairment $ 38,518 $ — $ — $ — $ 946 $ 302 $ 39,766 Collectively evaluated for impairment 2,449,864 654,535 151,791 355,290 56,217 32,064 3,699,761 Total ending loan balance $ 2,488,382 $ 654,535 $ 151,791 $ 355,290 $ 57,163 $ 32,366 $ 3,739,527 The following tables present loans individually evaluated for impairment recognized (in thousands): Unpaid Allowance Principal Recorded for Loan At March 31, 2022 Balance Investment Losses Allocated With an allowance recorded: One-to-four family $ 570 $ 440 $ — Consumer 24 24 24 Total $ 594 $ 464 $ 24 Without an allowance recorded: One-to-four family $ 641 $ 493 $ — Commercial real estate 28,477 28,478 — Total $ 29,118 $ 28,971 $ — Unpaid Allowance Principal Recorded for Loan At December 31, 2021 Balance Investment Losses Allocated With an allowance recorded: One-to-four family $ 577 $ 447 $ 26 Consumer 302 302 170 Total $ 879 $ 749 $ 196 Without an allowance recorded: One-to-four family $ 646 $ 499 $ — Commercial real estate 38,518 38,518 — Total $ 39,164 $ 39,017 $ — Average Interest Recorded Income Three months ended March 31, 2022 Investment Recognized With an allowance recorded: One-to-four family $ 224 $ 3 Consumer 163 — Total $ 387 $ 3 Without an allowance recorded: One-to-four family $ 716 $ 6 Commercial real estate 33,498 230 Total $ 34,214 $ 236 Average Interest Recorded 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 and industrial 96 — Total $ 10,955 $ 174 The recorded investment in loans excludes accrued interest receivable and loan origination fees. For a loan to be considered impaired, management determines whether it is probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. Management applies its normal loan review procedures in making these judgments. Impaired loans include individually classified non-accrual loans and TDRs. Impairment is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For loans that are collateral dependent, the fair value of the collateral is used to determine the fair value of the loan. The fair value of the collateral is determined based on recent appraised values. The fair value of the collateral or present value of expected cash flows is compared to the carrying value to determine if any write-down or specific loan loss allowance allocation is required. 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 (in thousands): At March 31, 2022 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial real estate $ — $ — Commercial & industrial — — One-to-four family — — Consumer 24 — Total $ 24 $ — At December 31, 2021 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial real estate $ 9,984 $ — Commercial & industrial — — One-to-four family — — Consumer 37 265 Total $ 10,021 $ 265 Interest income that would have been recorded for the three months ended March 31, 2022 and 2021 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 (in thousands): 90 30-59 60-89 Days and Total past Current At March 31, 2022 Days Days greater due loans Total Commercial real estate $ — $ — $ — $ — $ 2,782,092 $ 2,782,092 Commercial & industrial 111 — — 111 723,513 723,624 Construction — — — — 168,760 168,760 Multi-family — — — — 373,095 373,095 One-to-four family — — — — 52,819 52,819 Consumer 73 — 24 97 29,591 29,688 Total $ 184 $ — $ 24 $ 208 $ 4,129,870 $ 4,130,078 90 30-59 60-89 Days and Total past Current At December 31, 2021 Days Days greater due loans Total Commercial real estate $ — $ — $ 9,984 $ 9,984 $ 2,478,398 $ 2,488,382 Commercial & industrial 151 — — 151 654,384 654,535 Construction — — — — 151,791 151,791 Multi-family — — — — 355,290 355,290 One-to-four family — — — — 57,163 57,163 Consumer 93 94 302 489 31,877 32,366 Total $ 244 $ 94 $ 10,286 $ 10,624 $ 3,728,903 $ 3,739,527 Troubled Debt Restructurings Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered TDRs and classified as impaired. Included in impaired loans at both March 31, 2022 and December 31, 2021 were $1.3 million of loans modified as TDRs. There were no loans modified as a TDR during the three months ended March 31, 2022 and 2021. The Company has not committed to lend additional amounts as of March 31, 2022 to customers with outstanding loans that are classified as TDRs. During the three months ended March 31, 2022 and March 31, 2021, 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 pursuant to the Company’s internal underwriting policy. The following tables present the recorded investment in TDRs by class of loans (in thousands): At March 31, 2022 March 31, 2022 December 31, 2021 Commercial real estate $ 339 $ 342 One-to-four family 933 946 Total $ 1,272 $ 1,288 All TDRs at March 31, 2022 and December 31, 2021 were performing in accordance with their restructured terms. Credit Quality Indicators The Company 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 Company analyzes loans individually by classifying the loans as to credit risk at least annually. For one-to-four family loans and consumer loans, the Company 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 Company uses the following definitions for risk ratings: Special Mention - Substandard - Doubtful - Loans not meeting the criteria above are considered to be pass-rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Special At March 31, 2022 Pass Mention Substandard Doubtful Total Commercial real estate $ 2,753,614 $ 339 $ 28,139 $ — $ 2,782,092 Commercial & industrial 719,399 4,225 — — 723,624 Construction 168,760 — — — 168,760 Multi-family 373,095 — — — 373,095 Total $ 4,014,868 $ 4,564 $ 28,139 $ — $ 4,047,571 Special At December 31, 2021 Pass Mention Substandard Doubtful Total Commercial real estate $ 2,449,864 $ 342 $ 38,176 $ — $ 2,488,382 Commercial & industrial 646,251 4,177 4,107 — 654,535 Construction 151,791 — — — 151,791 Multi-family 355,290 — — — 355,290 Total $ 3,603,196 $ 4,519 $ 42,283 $ — $ 3,649,998 COVID-19 Loan Modifications As of March 31, 2022, the Company had six loans amounting to $47.1 million, or 1.14% of total loans, that were modified in accordance with the COVID-19 Guidance and the CARES Act. As of March 31, 2022, principal payment deferrals were $47.1 million, or 1.14% of total loans, while none were full payment deferrals. As of December 31, 2021, the Company had eight loans amounting to $48.9 million, or 1.31% of total loans, that were modified in accordance with the COVID-19 Guidance and the CARES Act. As of December 31, 2021, principal payment deferrals were $39.1 million, or 1.05% of total loans, while full payment deferrals were $9.9 million, or 0.26% of total loans. |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2022 | |
BORROWINGS | |
BORROWINGS | NOTE 6 — BORROWINGS During the first quarter of 2022, as provided in the agreement, the Company redeemed $25.0 million of subordinated debt, plus accrued interest. The subordinated notes had a maturity date of March 15, 2027 and an interest rate of 6.25% per annum. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 7 — STOCKHOLDERS’ EQUITY The Company has authorized 2,000,000 shares of Class B preferred stock, $0.01 par value. At March 31, 2022, none of the preferred shares are issued. During the fourth quarter of 2021, the holder of 272,636 shares of Series F, Class B non-voting preferred stock exchanged the preferred shares for shares of the Company’s common stock. During the third quarter of 2021, the Company raised $172.5 million of capital through the issuance of 2.3 million shares of its common stock at a price of $75 per share, resulting in net proceeds of $162.7 million. The offering increased the Company’s shares of common stock outstanding from 8.3 million shares to 10.6 million shares. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 8 – EARNINGS PER SHARE The Company uses the two-class method in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share calculation are as follows (in thousands, except per share data). Three months ended March 31, 2022 2021 Basic Net income per consolidated statements of income $ 19,021 $ 12,117 Less: Earnings allocated to participating securities (25) (55) Net income available to common stockholders $ 18,996 $ 12,062 Weighted average common shares outstanding including participating securities 10,934,091 8,313,660 Less: Weighted average participating securities (14,223) (37,486) Weighted average common shares outstanding 10,919,868 8,276,174 Basic earnings per common share $ 1.74 $ 1.46 Diluted Net income allocated to common stockholders $ 18,996 $ 12,062 Weighted average common shares outstanding for basic earnings per common share 10,919,868 8,276,174 Add: Dilutive effects of assumed exercise of stock options 190,826 141,145 Add: Dilutive effects of assumed vesting of performance based restricted stock 73,561 — Add: Dilutive effects of assumed vesting of restricted stock units 39,039 — Average shares and dilutive potential common shares 11,223,294 8,417,319 Dilutive earnings per common share $ 1.69 $ 1.43 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, 2022 and 2021. For the three months ended March 31, 2022 and 2021, 234,332 and 108,178 restricted stock units were not considered in the calculation of diluted earnings per share as their inclusion would be anti-dilutive. |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 3 Months Ended |
Mar. 31, 2022 | |
STOCK COMPENSATION PLAN | |
STOCK COMPENSATION PLAN | NOTE 9 — 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 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). Stock Options 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 year is presented below: Three Months Ended March 31, 2022 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) 2.13 There was no unrecognized compensation cost related to stock options at March 31, 2022 or December 31, 2021. There was no compensation cost related to stock options during the three months ended March 31, 2022 or 2021. The following table summarizes information about stock options outstanding at March 31, 2022: Options Outstanding Range of Average Number Outstanding at Weighted Average Weighted Average Weighted average Exercise Prices March 31, 2022 Remaining Contractual Life Exercise Price intrinsic value $10 – 30 231,000 2.13 $ 18.00 $ 83.77 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 2022 and 2021, 83,151 and 78,582 restricted stock units were issued to certain key personnel, respectively. One-third of these shares vest each year for three years beginning on March 1, 2023 and March 1, 2022, respectively. Total compensation cost that has been charged against income for restricted stock grants was $751,000 and $476,000 for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, there was $9.9 million of total unrecognized compensation expense related to the restricted stock awards. The cost is expected to be recognized over a weighted-average period of 2.38 years. In January 2022, 11,126 restricted shares were granted to members of the Board of Directors. These shares vest in January 2023. In January 2019, 38,900 restricted shares were granted to members of the Board of Directors in lieu of retainer fees for three years of service. Total expense for these awards was $298,000 and $110,000 for the three months ended March 31, 2022 and 2021, respectively. Total unrecognized expense for these awards was $893,000 and $330,000 for the three months ended March 31, 2022 and 2021, respectively. The following table summarizes the changes in the Company’s restricted stock awards: Three Months Ended March 31, 2022 Weighted Average Number of Shares Grant Date Fair Value Outstanding, beginning of period 90,999 $ 47.35 Granted 83,151 102.49 Forfeited — — Vested (29,818) 44.47 Outstanding at end of period 144,332 $ 79.71 Performance-Based Stock Units During the second quarter of 2021, the Company established a long-term incentive award program under the 2019 EIP. Under the program, 90,000 PRSUs were awarded. The weighted average service inception date fair value of award shares was $5.7 million. The PRSUs are scheduled to vest in three equal installments in February 2022, February 2023 and February 2024, provided certain performance criteria are met in fiscal years 2021, 2022 and 2023. However, such vested shares will not be delivered until the first quarter of 2024. At the beginning of 2022, 30,000 PSRUs were vested as all performance criteria was met in fiscal year 2021. Total compensation cost that has been charged against income for the 2019 EIP was $471,000 for the three months ended March 31, 2022. During the first quarter of 2018, the Company established a long-term incentive award program under the 2009 Plan. Under the program, 90,000 PRSUs were awarded. For each award, the PRSUs were 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 90,000 PRSUs were earned at the end of the three-year period and vested in the first quarter of 2021. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 10 - 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, 2022 and December 31, 2021. AFS securities 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 Company’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 statements 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 Company 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 Company’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 Company’s portfolio. Various modeling techniques are used to determine pricing for the Company’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 Company obtains the models, inputs and assumptions utilized by its pricing service and reviews them for reasonableness. There are no liabilities that are measured at fair value 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, 2022 U.S. Government agency securities $ 62,746 $ — $ 62,746 $ — U.S. State and Municipal securities 10,238 — 10,238 — Residential mortgage securities 412,121 — 412,121 — Commercial mortgage securities 16,208 — 16,208 — Asset-backed securities 4,415 — 4,415 — CRA Mutual Fund 2,173 2,173 — — Derivative assets - interest rate cap 12,076 — 12,076 — 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, 2021 U.S. Government agency securities $ 66,334 $ — $ 66,334 $ — U.S. State and Municipal securities 11,499 — 11,499 — Residential mortgage securities 466,551 — 466,551 — Commercial mortgage securities 17,627 — 17,627 — Asset-backed securities 4,613 — 4,613 — CRA Mutual Fund 2,273 2,273 — — Derivative assets - interest rate cap 3,385 — 3,385 — There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2022 and 2021. There were no material assets measured at fair value on a non-recurring basis at March 31, 2022 or December 31, 2021. Carrying amounts and estimated fair values of financial instruments carried at amortized cost 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, 2022 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 32,483 $ 32,483 $ — $ — $ 32,483 Overnight deposits 1,381,475 1,381,475 — — 1,381,475 Securities held-to-maturity 467,893 — 436,825 — 436,825 Loans, net 4,083,309 — — 4,111,399 4,111,399 Other investments FRB Stock 11,421 N/A N/A N/A N/A FHLB Stock 3,070 N/A N/A N/A N/A Disability Fund 1,000 — 1,000 — 1,000 Time deposits at banks 498 498 — — 498 Receivable from prepaid card programs, net 62,129 — — 62,129 62,129 Accrued interest receivable 16,186 — 765 15,421 16,186 Financial Liabilities: Non-interest-bearing demand deposits $ 3,176,048 $ 3,176,048 $ — $ — $ 3,176,048 Money market and savings deposits 2,689,424 2,689,424 — — 2,689,424 Time deposits 73,891 — 73,233 — 73,233 Trust preferred securities payable 20,620 — — 19,965 19,965 Subordinated debt, net of issuance cost — — — — — Prepaid debit cardholder balances 24,092 — — 24,092 24,092 Accrued interest payable 297 5 180 112 297 Secured borrowings 32,322 — 32,322 — 32,322 Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At December 31, 2021 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 28,864 $ 28,864 $ — $ — $ 28,864 Overnight deposits 2,330,486 2,330,486 — — 2,330,486 Securities held-to-maturity 382,099 — 380,108 — 380,108 Loans, net 3,697,200 — — 3,721,619 3,721,619 Other investments FRB Stock 7,430 N/A N/A N/A N/A FHLB Stock 3,070 N/A N/A N/A N/A Disability Fund 1,000 — 1,000 — 1,000 CRA - CD 498 498 — — 498 Receivable from prepaid card programs, net 39,864 — — 39,864 39,864 Accrued interest receivable 15,195 — 892 14,303 15,195 Financial Liabilities: Non-interest-bearing demand deposits $ 3,668,673 $ 3,668,673 $ — $ — $ 3,668,673 Money market and savings deposits 2,687,913 2,687,913 — — 2,687,913 Time deposits 78,986 — 79,187 — 79,187 Trust preferred securities payable 20,620 — — 19,997 19,997 Subordinated debt, net of issuance cost 24,712 — 25,125 — 25,125 Prepaid debit cardholder balances 8,847 — — 8,847 8,847 Accrued interest payable 746 5 633 108 746 Secured borrowings 32,461 — 32,507 — 32,507 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 11 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) There were no reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2022 and 2021. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 3 Months Ended |
Mar. 31, 2022 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | NOTE 12 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK The Company 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 Company’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 Company 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, 2022 At December 31, 2021 Variable Variable Fixed Rate Rate Fixed Rate Rate Unused commitments $ 43,628 $ 343,546 $ 39,676 $ 346,115 Standby and commercial letters of credit 50,176 — 49,988 — $ 93,804 $ 343,546 $ 89,664 $ 346,115 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, 2022, the Company’s fixed rate loan commitments had interest rates ranging from 3.0% to 5.6% and the Company’s variable rate loan commitments had interest rates ranging from 2.3% to 8.5%, with a maturity of one year or more. At December 31, 2021, the Company’s fixed rate loan commitments had interest rates ranging from 3.0% to 5.6% and the Company’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 Company 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 Company or other financial institutions and securities. The Company’s stand-by letters of credit amounted to $50.2 million and $50.0 million as of March 31, 2022 and December 31, 2021, respectively. The Company’s stand-by letters of credit are collateralized by interest-bearing accounts of $29.6 million as of March 31, 2022 and December 31, 2021, 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, 2022 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 13 – REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers that are in the scope of Accounting Standards Codification 606, Revenue from Contracts with Customers, Three Months Ended March 31, 2022 2021 Service charges on deposit accounts $ 1,370 $ 972 Global Payments Group revenue 5,657 3,360 Other service charges and fees 506 304 Total $ 7,533 $ 4,636 A description of the Company’s revenue streams accounted for under the accounting guidance is as follows: Service charges on deposit accounts The Company offers business and personal retail products and services, which include, but are not limited to, online banking, mobile banking, ACH, and remote deposit capture. A standard deposit contract exists between the Company and all deposit customers. The Company earns fees from its deposit customers for transaction-based services (such as ATM use fees, stop payment charges, statement rendering, and ACH fees), account maintenance, and overdraft services. Transaction-based fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Global payment group revenue The Company offers corporate cash management and retail banking services and, through its global payments business, provides BaaS to its fintech partners. The Company earns initial set-up fees for these programs as well as fees for transactions processed. The Company receives transaction data at the end of each month for services rendered, at which time revenue is recognized. Additionally, service charges specific to Global payment customers’ deposits are recognized within Global Payment Group revenue. Other service charges The primary component of other service charges relates to FX conversion fees. The Company outsources FX conversion for foreign currency transactions to correspondent banks. The Company earns a portion of an FX conversion fee that the customer charges to process an FX conversion transaction. Revenue is recognized at the end of the month, once the customer has remitted the transaction information to the Company. |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2022 | |
DERIVATIVES | |
DERIVATIVES | NOTE 14 – DERIVATIVES In 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 interest rate cap has a notional amount of $300.0 million and matures on March 1, 2025. 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 was designated as a cash flow hedge of certain deposit liabilities of the Company. The hedge was determined to be highly effective during the three months ended March 31, 2022. The Company expects the hedge to remain highly effective during the remaining term of the contract. The following tables reflect the derivatives recorded on the balance sheet (in thousands): Notional Amount Fair Value At March 31, 2022 Derivatives designated as hedges: Interest rate caps related to customer deposits $ 300,000 $ 12,076 Total included in Other Assets $ 300,000 $ 12,076 At December 31, 2021 Derivatives designated as hedges: Interest rate caps related to customer deposits $ 300,000 $ 3,385 Total included in Other Assets $ 300,000 $ 3,385 The effect of cash flow hedge accounting on accumulated other comprehensive income is as follows (in thousands): Location of Amount of Amount of Gain (Loss) Gain (Loss) Gain (Loss) Reclassified Reclassified Recognized in OCI, from OCI into from OCI into net of tax Income Income At March 31, 2022 Interest rate caps related to customer deposits $ 2,305 $ N/A $ — At December 31, 2021 Interest rate caps related to customer deposits $ 2,059 $ N/A $ — |
SUMMARY OF RECENT ACCOUNTING _2
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
BASIS OF PRESENTATION | The accounting and reporting policies of the Company conform with GAAP and predominant practices within the U.S. banking industry. The Unaudited Consolidated Financial Statements (“unaudited financial statements”) include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated. The unaudited financial statements 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 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 unaudited 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 may have been reclassified to conform to the current presentation. Reclassification had no effect on prior year net income or stockholders’ equity. The results of operations for the for the three months ended March 31, 2022 and 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 financial statements presented in this report should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the SEC. |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | Pursuant to the JOBS Act, an EGC is provided the option to adopt new or revised accounting standards that may be issued by the FASB or the SEC either (i) within the same periods as those otherwise applicable to non-EGCs or (ii) within the same time periods as private companies. The Company elected delayed effective dates of recently issued accounting standards. As permitted by the JOBS Act, so long as it qualifies as an EGC, the Company will take advantage of some of the reduced regulatory and reporting requirements that are available to it, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments. The Company will lose its EGC status on December 31, 2022, since that would be the last day of the fiscal year of the Company following the fifth anniversary of the date of the first sale of common equity securities of the Company pursuant to an effective registration statement under the Securities Act of 1933. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires companies that lease assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. 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 required to implement ASU 2016-02 by December 31, 2022 and is currently evaluating the potential impact on its consolidated financial statements. In June 2016, the FASB issued ASU 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 conditions, and reasonable and supportable forecasts. ASU 2016-13 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 AFS debt securities and purchased financial assets with credit deterioration. In October 2019, the FASB approved a delay for the implementation of ASU 2016-13. Accordingly, the Company is required to implement ASU 2016-13 by January 1, 2023. Management has established a committee to evaluate the impact of ASU 2016-13 on the Company’s financial statements. The Company expects to recognize a one-time cumulative adjustment to the allowance for loan losses as of the beginning of the reporting period in which ASU 2016-13 takes effect. The Company is currently analyzing certain aspects of the CECL models, inputting data into the models, and evaluating the potential impact on the Company’s ALLL. 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 LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. The amendments in this ASU clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Management has established a working group that is in the process of evaluating the impact of the transition from LIBOR on the Company and its consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
INVESTMENT SECURITIES | |
Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity | The following tables summarize the amortized cost and fair value of debt securities AFS and HTM and equity investments 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, 2022 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,995 $ — $ (5,249) $ 62,746 U.S. State and Municipal securities 11,761 — (1,523) 10,238 Residential MBS 448,457 5 (36,341) 412,121 Commercial MBS 17,217 41 (1,050) 16,208 Asset-backed securities 4,477 — (62) 4,415 Total securities available-for-sale $ 549,907 $ 46 $ (44,225) $ 505,728 Held-to-Maturity Securities: U.S. Treasury securities $ 29,821 $ — $ (1,332) $ 28,489 U.S. State and Municipal securities 15,995 — (1,553) 14,442 Residential MBS 413,947 — (27,486) 386,461 Commercial MBS 8,130 — (697) 7,433 Total securities held-to-maturity $ 467,893 $ — $ (31,068) $ 436,825 Equity Investments: CRA Mutual Fund $ 2,332 $ — $ (159) $ 2,173 Total equity investment securities $ 2,332 $ — $ (159) $ 2,173 Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2021 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,994 $ — $ (1,660) $ 66,334 U.S. State and Municipal securities 11,799 — (300) 11,499 Residential MBS 476,393 623 (10,465) 466,551 Commercial MBS 17,787 219 (379) 17,627 Asset-backed securities 4,635 — (22) 4,613 Total securities available-for-sale $ 578,608 $ 842 $ (12,826) $ 566,624 Held-to-Maturity Securities: U.S. Treasury securities $ 29,811 $ 6 $ (43) $ 29,774 U.S. State and Municipal securities 16,055 299 — 16,354 Residential MBS 328,095 105 (2,259) 325,941 Commercial MBS 8,138 — (99) 8,039 Total securities held-to-maturity $ 382,099 $ 410 $ (2,401) $ 380,108 Equity Investments: CRA Mutual Fund $ 2,326 $ — $ (53) $ 2,273 Total equity investment securities $ 2,326 $ — $ (53) $ 2,273 |
Schedule of amortized cost and fair value of debt securities classified by contractual maturity | The tables below summarize, by contractual maturity, the amortized cost and fair value of debt securities. The tables do not include the effect of principal repayments or scheduled principal amortization. Equity securities, primarily investment in mutual funds, have been excluded from the table. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties (in thousands): Held-to-Maturity Available-for-Sale At March 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 29,821 28,489 48,492 45,280 After 5 years though 10 years 9,815 9,083 35,249 32,997 After 10 years 428,257 399,253 466,166 427,451 Total Securities $ 467,893 $ 436,825 $ 549,907 $ 505,728 Held-to-Maturity Available-for-Sale At December 31, 2021 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 29,811 29,774 48,515 47,370 After 5 years though 10 years 9,973 9,912 36,242 36,024 After 10 years 342,315 340,422 493,851 483,230 Total Securities $ 382,099 $ 380,108 $ 578,608 $ 566,624 |
Schedule of securities with unrealized/unrecognized losses | Debt securities with unrealized losses 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 Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At March 31, 2022 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: Residential MBS $ 304,552 $ (24,766) $ 106,793 $ (11,575) $ 411,345 $ (36,341) Commercial MBS 5,595 (410) 7,519 (640) 13,114 (1,050) Asset-backed securities 4,415 (62) — — 4,415 (62) U.S. Government agency securities — — 62,746 (5,249) 62,746 (5,249) U.S. State and Municipal securities 6,294 (628) 3,944 (895) 10,238 (1,523) Total securities available-for-sale $ 320,856 $ (25,866) $ 181,002 $ (18,359) $ 501,858 $ (44,225) Held-to-Maturity Securities: Residential MBS $ 386,461 $ (27,486) $ — $ — $ 386,461 $ (27,486) Commercial MBS 7,433 (697) — — 7,433 (697) U.S. Treasury Securities 28,489 (1,332) — — 28,489 (1,332) U.S. State and Municipal securities 14,442 (1,553) — — 14,442 (1,553) Total securities held-to-maturity $ 436,825 $ (31,068) $ — $ — $ 436,825 $ (31,068) Less than 12 Months 12 Months or More Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At December 31, 2021 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: Residential MBS $ 423,686 $ (9,727) $ 12,931 $ (738) $ 436,617 $ (10,465) Commercial MBS 11,202 (296) 3,511 (83) 14,713 (379) Asset-backed securities 4,613 (22) — — 4,613 (22) U.S. Government agency securities 29,267 (730) 37,067 (930) 66,334 (1,660) U.S. State and Municipal securities 8,372 (300) — — 8,372 (300) Total securities available-for-sale $ 477,140 $ (11,075) $ 53,509 $ (1,751) $ 530,649 $ (12,826) Held-to-Maturity Securities: Residential MBS $ 301,896 $ (2,259) $ — $ — $ 301,896 $ (2,259) Commercial MBS 8,039 (99) — — 8,039 (99) U.S. Treasury Securities 9,697 (43) — — 9,697 (43) Total securities held-to-maturity $ 319,632 $ (2,401) $ — $ — $ 319,632 $ (2,401) |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |
Schedule of Net loans | Loans, net of deferred costs and fees, consist of the following (in thousands): March 31, 2022 December 31, 2021 Real estate Commercial $ 2,782,092 $ 2,488,382 Construction 168,760 151,791 Multi-family 373,095 355,290 One-to-four family 52,819 57,163 Total real estate loans 3,376,766 3,052,626 Commercial and industrial 723,624 654,535 Consumer 29,688 32,366 Total loans 4,130,078 3,739,527 Deferred fees, net of origination costs (8,635) (7,598) Loans, net of deferred fees and costs 4,121,443 3,731,929 Allowance for loan losses (38,134) (34,729) Net loans $ 4,083,309 $ 3,697,200 |
Schedule of changes in the allowance for loan losses by portfolio segment | The following tables present the activity in the ALLL by segment. The portfolio segments represent the categories that the Company uses to determine its ALLL (in thousands): Commercial Commercial One-to-four Three months ended March 31, 2022 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for loan losses: Beginning balance $ 22,216 $ 7,708 $ 2,105 $ 2,156 $ 140 $ 404 $ 34,729 Provision (credit) for loan losses 2,504 780 224 100 (36) (172) 3,400 Loans charged-off — — — — — — — Recoveries — — — — — 5 5 Total ending allowance balance $ 24,720 $ 8,488 $ 2,329 $ 2,256 $ 104 $ 237 $ 38,134 Commercial Commercial One-to-four Three months ended March 31, 2021 Real Estate & Industrial Construction Multi-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 |
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 (in thousands): Commercial Commercial One-to-four At March 31, 2022 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 24 $ 24 Collectively evaluated for impairment 24,720 8,488 2,329 2,256 104 213 38,110 Total ending allowance balance $ 24,720 $ 8,488 $ 2,329 $ 2,256 $ 104 $ 237 $ 38,134 Loans: Individually evaluated for impairment $ 28,478 $ — $ — $ — $ 933 $ 24 $ 29,435 Collectively evaluated for impairment 2,753,614 723,624 168,760 373,095 51,886 29,664 4,100,643 Total ending loan balance $ 2,782,092 $ 723,624 $ 168,760 $ 373,095 $ 52,819 $ 29,688 $ 4,130,078 Commercial Commercial One-to-four At December 31, 2021 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ 26 $ 170 $ 196 Collectively evaluated for impairment 22,216 7,708 2,105 2,156 114 234 34,533 Total ending allowance balance $ 22,216 $ 7,708 $ 2,105 $ 2,156 $ 140 $ 404 $ 34,729 Loans: Individually evaluated for impairment $ 38,518 $ — $ — $ — $ 946 $ 302 $ 39,766 Collectively evaluated for impairment 2,449,864 654,535 151,791 355,290 56,217 32,064 3,699,761 Total ending loan balance $ 2,488,382 $ 654,535 $ 151,791 $ 355,290 $ 57,163 $ 32,366 $ 3,739,527 |
Schedule of loans determined to be impaired by class of loans | The following tables present loans individually evaluated for impairment recognized (in thousands): Unpaid Allowance Principal Recorded for Loan At March 31, 2022 Balance Investment Losses Allocated With an allowance recorded: One-to-four family $ 570 $ 440 $ — Consumer 24 24 24 Total $ 594 $ 464 $ 24 Without an allowance recorded: One-to-four family $ 641 $ 493 $ — Commercial real estate 28,477 28,478 — Total $ 29,118 $ 28,971 $ — Unpaid Allowance Principal Recorded for Loan At December 31, 2021 Balance Investment Losses Allocated With an allowance recorded: One-to-four family $ 577 $ 447 $ 26 Consumer 302 302 170 Total $ 879 $ 749 $ 196 Without an allowance recorded: One-to-four family $ 646 $ 499 $ — Commercial real estate 38,518 38,518 — Total $ 39,164 $ 39,017 $ — Average Interest Recorded Income Three months ended March 31, 2022 Investment Recognized With an allowance recorded: One-to-four family $ 224 $ 3 Consumer 163 — Total $ 387 $ 3 Without an allowance recorded: One-to-four family $ 716 $ 6 Commercial real estate 33,498 230 Total $ 34,214 $ 236 Average Interest Recorded 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 and industrial 96 — Total $ 10,955 $ 174 |
Schedule of recorded investment in non-accrual loans, loans past due over 90 days and still accruing by class of loans | 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 (in thousands): At March 31, 2022 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial real estate $ — $ — Commercial & industrial — — One-to-four family — — Consumer 24 — Total $ 24 $ — At December 31, 2021 Nonaccrual Loans Past Due Over 90 Days Still Accruing Commercial real estate $ 9,984 $ — Commercial & industrial — — One-to-four family — — Consumer 37 265 Total $ 10,021 $ 265 |
Schedule of aging of the recorded investment in past due loans by class of loans | The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands): 90 30-59 60-89 Days and Total past Current At March 31, 2022 Days Days greater due loans Total Commercial real estate $ — $ — $ — $ — $ 2,782,092 $ 2,782,092 Commercial & industrial 111 — — 111 723,513 723,624 Construction — — — — 168,760 168,760 Multi-family — — — — 373,095 373,095 One-to-four family — — — — 52,819 52,819 Consumer 73 — 24 97 29,591 29,688 Total $ 184 $ — $ 24 $ 208 $ 4,129,870 $ 4,130,078 90 30-59 60-89 Days and Total past Current At December 31, 2021 Days Days greater due loans Total Commercial real estate $ — $ — $ 9,984 $ 9,984 $ 2,478,398 $ 2,488,382 Commercial & industrial 151 — — 151 654,384 654,535 Construction — — — — 151,791 151,791 Multi-family — — — — 355,290 355,290 One-to-four family — — — — 57,163 57,163 Consumer 93 94 302 489 31,877 32,366 Total $ 244 $ 94 $ 10,286 $ 10,624 $ 3,728,903 $ 3,739,527 |
Schedule of recorded investment in TDRs by class of loans | The following tables present the recorded investment in TDRs by class of loans (in thousands): At March 31, 2022 March 31, 2022 December 31, 2021 Commercial real estate $ 339 $ 342 One-to-four family 933 946 Total $ 1,272 $ 1,288 |
Schedule of risk category of loans by class of loans | Loans not meeting the criteria above are considered to be pass-rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Special At March 31, 2022 Pass Mention Substandard Doubtful Total Commercial real estate $ 2,753,614 $ 339 $ 28,139 $ — $ 2,782,092 Commercial & industrial 719,399 4,225 — — 723,624 Construction 168,760 — — — 168,760 Multi-family 373,095 — — — 373,095 Total $ 4,014,868 $ 4,564 $ 28,139 $ — $ 4,047,571 Special At December 31, 2021 Pass Mention Substandard Doubtful Total Commercial real estate $ 2,449,864 $ 342 $ 38,176 $ — $ 2,488,382 Commercial & industrial 646,251 4,177 4,107 — 654,535 Construction 151,791 — — — 151,791 Multi-family 355,290 — — — 355,290 Total $ 3,603,196 $ 4,519 $ 42,283 $ — $ 3,649,998 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
EARNINGS PER SHARE | |
Schedule of earnings per share | The factors used in the earnings per share calculation are as follows (in thousands, except per share data). Three months ended March 31, 2022 2021 Basic Net income per consolidated statements of income $ 19,021 $ 12,117 Less: Earnings allocated to participating securities (25) (55) Net income available to common stockholders $ 18,996 $ 12,062 Weighted average common shares outstanding including participating securities 10,934,091 8,313,660 Less: Weighted average participating securities (14,223) (37,486) Weighted average common shares outstanding 10,919,868 8,276,174 Basic earnings per common share $ 1.74 $ 1.46 Diluted Net income allocated to common stockholders $ 18,996 $ 12,062 Weighted average common shares outstanding for basic earnings per common share 10,919,868 8,276,174 Add: Dilutive effects of assumed exercise of stock options 190,826 141,145 Add: Dilutive effects of assumed vesting of performance based restricted stock 73,561 — Add: Dilutive effects of assumed vesting of restricted stock units 39,039 — Average shares and dilutive potential common shares 11,223,294 8,417,319 Dilutive earnings per common share $ 1.69 $ 1.43 |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
STOCK COMPENSATION PLAN | |
Schedule of status of the stock option plan | Three Months Ended March 31, 2022 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) 2.13 |
Schedule of summary of stock options outstanding | Options Outstanding Range of Average Number Outstanding at Weighted Average Weighted Average Weighted average Exercise Prices March 31, 2022 Remaining Contractual Life Exercise Price intrinsic value $10 – 30 231,000 2.13 $ 18.00 $ 83.77 |
Schedule of changes in the non-vested restricted stock awards | Three Months Ended March 31, 2022 Weighted Average Number of Shares Grant Date Fair Value Outstanding, beginning of period 90,999 $ 47.35 Granted 83,151 102.49 Forfeited — — Vested (29,818) 44.47 Outstanding at end of period 144,332 $ 79.71 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of Assets and Liabilities measured at fair value 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, 2022 U.S. Government agency securities $ 62,746 $ — $ 62,746 $ — U.S. State and Municipal securities 10,238 — 10,238 — Residential mortgage securities 412,121 — 412,121 — Commercial mortgage securities 16,208 — 16,208 — Asset-backed securities 4,415 — 4,415 — CRA Mutual Fund 2,173 2,173 — — Derivative assets - interest rate cap 12,076 — 12,076 — 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, 2021 U.S. Government agency securities $ 66,334 $ — $ 66,334 $ — U.S. State and Municipal securities 11,499 — 11,499 — Residential mortgage securities 466,551 — 466,551 — Commercial mortgage securities 17,627 — 17,627 — Asset-backed securities 4,613 — 4,613 — CRA Mutual Fund 2,273 2,273 — — Derivative assets - interest rate cap 3,385 — 3,385 — |
Schedule of carrying amount and estimated fair values of financial instruments | Carrying amounts and estimated fair values of financial instruments carried at amortized cost 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, 2022 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 32,483 $ 32,483 $ — $ — $ 32,483 Overnight deposits 1,381,475 1,381,475 — — 1,381,475 Securities held-to-maturity 467,893 — 436,825 — 436,825 Loans, net 4,083,309 — — 4,111,399 4,111,399 Other investments FRB Stock 11,421 N/A N/A N/A N/A FHLB Stock 3,070 N/A N/A N/A N/A Disability Fund 1,000 — 1,000 — 1,000 Time deposits at banks 498 498 — — 498 Receivable from prepaid card programs, net 62,129 — — 62,129 62,129 Accrued interest receivable 16,186 — 765 15,421 16,186 Financial Liabilities: Non-interest-bearing demand deposits $ 3,176,048 $ 3,176,048 $ — $ — $ 3,176,048 Money market and savings deposits 2,689,424 2,689,424 — — 2,689,424 Time deposits 73,891 — 73,233 — 73,233 Trust preferred securities payable 20,620 — — 19,965 19,965 Subordinated debt, net of issuance cost — — — — — Prepaid debit cardholder balances 24,092 — — 24,092 24,092 Accrued interest payable 297 5 180 112 297 Secured borrowings 32,322 — 32,322 — 32,322 Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At December 31, 2021 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 28,864 $ 28,864 $ — $ — $ 28,864 Overnight deposits 2,330,486 2,330,486 — — 2,330,486 Securities held-to-maturity 382,099 — 380,108 — 380,108 Loans, net 3,697,200 — — 3,721,619 3,721,619 Other investments FRB Stock 7,430 N/A N/A N/A N/A FHLB Stock 3,070 N/A N/A N/A N/A Disability Fund 1,000 — 1,000 — 1,000 CRA - CD 498 498 — — 498 Receivable from prepaid card programs, net 39,864 — — 39,864 39,864 Accrued interest receivable 15,195 — 892 14,303 15,195 Financial Liabilities: Non-interest-bearing demand deposits $ 3,668,673 $ 3,668,673 $ — $ — $ 3,668,673 Money market and savings deposits 2,687,913 2,687,913 — — 2,687,913 Time deposits 78,986 — 79,187 — 79,187 Trust preferred securities payable 20,620 — — 19,997 19,997 Subordinated debt, net of issuance cost 24,712 — 25,125 — 25,125 Prepaid debit cardholder balances 8,847 — — 8,847 8,847 Accrued interest payable 746 5 633 108 746 Secured borrowings 32,461 — 32,507 — 32,507 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |
Schedule of off-balance-sheet financial instruments | At March 31, 2022 At December 31, 2021 Variable Variable Fixed Rate Rate Fixed Rate Rate Unused commitments $ 43,628 $ 343,546 $ 39,676 $ 346,115 Standby and commercial letters of credit 50,176 — 49,988 — $ 93,804 $ 343,546 $ 89,664 $ 346,115 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of Company's sources of non-interest income | The following table presents the Company’s revenue from contracts with customers (in thousands): Three Months Ended March 31, 2022 2021 Service charges on deposit accounts $ 1,370 $ 972 Global Payments Group revenue 5,657 3,360 Other service charges and fees 506 304 Total $ 7,533 $ 4,636 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
DERIVATIVES | |
Schedule of notional amount and fair value | The following tables reflect the derivatives recorded on the balance sheet (in thousands): Notional Amount Fair Value At March 31, 2022 Derivatives designated as hedges: Interest rate caps related to customer deposits $ 300,000 $ 12,076 Total included in Other Assets $ 300,000 $ 12,076 At December 31, 2021 Derivatives designated as hedges: Interest rate caps related to customer deposits $ 300,000 $ 3,385 Total included in Other Assets $ 300,000 $ 3,385 |
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 is as follows (in thousands): Location of Amount of Amount of Gain (Loss) Gain (Loss) Gain (Loss) Reclassified Reclassified Recognized in OCI, from OCI into from OCI into net of tax Income Income At March 31, 2022 Interest rate caps related to customer deposits $ 2,305 $ N/A $ — At December 31, 2021 Interest rate caps related to customer deposits $ 2,059 $ N/A $ — |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities available-for-sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available for sale, at fair value | $ 505,728 | $ 566,624 |
Available-for-sale Securities. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 549,907 | 578,608 |
Gross Unrealized/Unrecognized Gains | 46 | 842 |
Gross Unrealized/Unrecognized Losses | (44,225) | (12,826) |
Investment securities available for sale, at fair value | 505,728 | 566,624 |
Available-for-sale Securities. | U.S. Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 67,995 | 67,994 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (5,249) | (1,660) |
Investment securities available for sale, at fair value | 62,746 | 66,334 |
Available-for-sale Securities. | U.S. State and Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,761 | 11,799 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (1,523) | (300) |
Investment securities available for sale, at fair value | 10,238 | 11,499 |
Available-for-sale Securities. | Residential MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 448,457 | 476,393 |
Gross Unrealized/Unrecognized Gains | 5 | 623 |
Gross Unrealized/Unrecognized Losses | (36,341) | (10,465) |
Investment securities available for sale, at fair value | 412,121 | 466,551 |
Available-for-sale Securities. | Commercial MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 17,217 | 17,787 |
Gross Unrealized/Unrecognized Gains | 41 | 219 |
Gross Unrealized/Unrecognized Losses | (1,050) | (379) |
Investment securities available for sale, at fair value | 16,208 | 17,627 |
Available-for-sale Securities. | Asset-backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,477 | 4,635 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (62) | (22) |
Investment securities available for sale, at fair value | $ 4,415 | $ 4,613 |
INVESTMENT SECURITIES (Schedu_2
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities held-to-maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 467,893 | $ 382,099 |
Total Securities | 436,800 | 380,100 |
Held-to-maturity Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 467,893 | 382,099 |
Gross Unrealized/Unrecognized Gains | 410 | |
Gross Unrealized/Unrecognized Losses | (31,068) | (2,401) |
Total Securities | 436,825 | 380,108 |
Held-to-maturity Securities | US Treasury Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 29,821 | 29,811 |
Gross Unrealized/Unrecognized Gains | 6 | |
Gross Unrealized/Unrecognized Losses | (1,332) | (43) |
Total Securities | 28,489 | 29,774 |
Held-to-maturity Securities | U.S. State and Municipal securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 15,995 | 16,055 |
Gross Unrealized/Unrecognized Gains | 299 | |
Gross Unrealized/Unrecognized Losses | (1,553) | 0 |
Total Securities | 14,442 | 16,354 |
Held-to-maturity Securities | Residential MBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 413,947 | 328,095 |
Gross Unrealized/Unrecognized Gains | 105 | |
Gross Unrealized/Unrecognized Losses | (27,486) | (2,259) |
Total Securities | 386,461 | 325,941 |
Held-to-maturity Securities | Commercial MBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 8,130 | 8,138 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (697) | (99) |
Total Securities | $ 7,433 | $ 8,039 |
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, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 2,332 | $ 2,326 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (159) | (53) |
Fair Value | 2,173 | 2,273 |
CRA mutual fund | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 2,332 | 2,326 |
Gross Unrealized/Unrecognized Gains | 0 | |
Gross Unrealized/Unrecognized Losses | (159) | (53) |
Fair Value | $ 2,173 | $ 2,273 |
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, 2022 | Mar. 31, 2021 | |
INVESTMENT SECURITIES | ||
Proceeds from sale of securities available for sale, amortized cost | $ 0 | $ 0 |
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, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
After 1 year through 5 years | $ 29,821 | $ 29,811 |
After 5 years though 10 years | 9,815 | 9,973 |
After 10 years | 428,257 | 342,315 |
Amortized Cost, total | 467,893 | 382,099 |
Fair Value | ||
After 1 year through 5 years | 28,489 | 29,774 |
After 5 years though 10 years | 9,083 | 9,912 |
After 10 years | 399,253 | 340,422 |
Fair Value, total | 436,825 | 380,108 |
Amortized Cost | ||
After 1 year through 5 years | 48,492 | 48,515 |
After 5 years though 10 years | 35,249 | 36,242 |
After 10 years | 466,166 | 493,851 |
Amortized Cost, total | 549,907 | 578,608 |
Fair Value | ||
After 1 year through 5 years | 45,280 | 47,370 |
After 5 years though 10 years | 32,997 | 36,024 |
After 10 years | 427,451 | 483,230 |
Fair Value, total | 505,728 | 566,624 |
AFS securities pledged to secure customer deposit | $ 0 | $ 0 |
INVESTMENT SECURITIES (Schedu_5
INVESTMENT SECURITIES (Schedule of Securities with Unrealized Losses) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)item | Dec. 31, 2021USD ($)item | |
Held-to-maturity Securities | ||
Number of securities of one issuer | item | 0 | 0 |
Impairment loss | $ 0 | $ 0 |
Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 320,856 | 477,140 |
Less than 12 Months, Unrealized/Unrecognized Losses | (25,866) | (11,075) |
12 months or more, Estimated Fair Value | 181,002 | 53,509 |
12 months or more, Unrealized/Unrecognized Losses | (18,359) | (1,751) |
Total, Estimated Fair Value | 501,858 | 530,649 |
Total, Unrealized/Unrecognized Losses | (44,225) | (12,826) |
Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 436,825 | 319,632 |
Less than 12 Months, Unrealized/Unrecognized Losses | (31,068) | (2,401) |
Total, Estimated Fair Value | 436,825 | 319,632 |
Total, Unrealized Losses | (31,068) | (2,401) |
Residential MBS | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 386,461 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (27,486) | |
Total, Estimated Fair Value | 386,461 | |
Total, Unrealized Losses | (27,486) | |
Residential MBS | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 304,552 | 423,686 |
Less than 12 Months, Unrealized/Unrecognized Losses | (24,766) | (9,727) |
12 months or more, Estimated Fair Value | 106,793 | 12,931 |
12 months or more, Unrealized/Unrecognized Losses | (11,575) | (738) |
Total, Estimated Fair Value | 411,345 | 436,617 |
Total, Unrealized/Unrecognized Losses | (36,341) | (10,465) |
Residential MBS | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 301,896 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (2,259) | |
Total, Estimated Fair Value | 301,896 | |
Total, Unrealized Losses | (2,259) | |
Commercial MBS | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 5,595 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (410) | |
12 months or more, Estimated Fair Value | 7,519 | |
12 months or more, Unrealized/Unrecognized Losses | (640) | |
Total, Estimated Fair Value | 13,114 | |
Total, Unrealized/Unrecognized Losses | (1,050) | |
Commercial MBS | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 11,202 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (296) | |
12 months or more, Estimated Fair Value | 3,511 | |
12 months or more, Unrealized/Unrecognized Losses | (83) | |
Total, Estimated Fair Value | 14,713 | |
Total, Unrealized/Unrecognized Losses | (379) | |
Commercial MBS | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 7,433 | 8,039 |
Less than 12 Months, Unrealized/Unrecognized Losses | (697) | (99) |
Total, Estimated Fair Value | 7,433 | 8,039 |
Total, Unrealized Losses | (697) | (99) |
Asset-backed Securities | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 4,415 | 4,613 |
Less than 12 Months, Unrealized/Unrecognized Losses | (62) | (22) |
Total, Estimated Fair Value | 4,415 | 4,613 |
Total, Unrealized/Unrecognized Losses | (62) | (22) |
U.S. Government agency securities | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 29,267 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (730) | |
12 months or more, Estimated Fair Value | 62,746 | 37,067 |
12 months or more, Unrealized/Unrecognized Losses | (5,249) | (930) |
Total, Estimated Fair Value | 62,746 | 66,334 |
Total, Unrealized/Unrecognized Losses | (5,249) | (1,660) |
U.S. Government agency securities | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 9,697 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (43) | |
Total, Estimated Fair Value | 9,697 | |
Total, Unrealized Losses | (43) | |
U.S. State and Municipal securities | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 6,294 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (628) | |
12 months or more, Estimated Fair Value | 3,944 | |
12 months or more, Unrealized/Unrecognized Losses | (895) | |
Total, Estimated Fair Value | 10,238 | |
Total, Unrealized/Unrecognized Losses | (1,523) | |
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 14,442 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (1,553) | |
Total, Estimated Fair Value | 14,442 | |
Total, Unrealized Losses | (1,553) | |
U.S. State and Municipal securities | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 8,372 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (300) | |
Total, Estimated Fair Value | 8,372 | |
Total, Unrealized/Unrecognized Losses | $ (300) | |
US Treasury Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 28,489 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (1,332) | |
Total, Estimated Fair Value | 28,489 | |
Total, Unrealized Losses | $ (1,332) |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loan Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 4,130,078 | $ 3,739,527 | ||
Deferred fees, net of origination costs | (8,635) | (7,598) | ||
Loans, net of deferred fees and costs | 4,121,443 | 3,731,929 | ||
Allowance for loan losses | (38,134) | (34,729) | $ (35,502) | $ (35,407) |
Net loans | 4,083,309 | 3,697,200 | ||
Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 3,376,766 | 3,052,626 | ||
Allowance for loan losses | (18,341) | (17,243) | ||
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 723,624 | 654,535 | ||
Allowance for loan losses | (8,488) | (7,708) | (10,827) | (12,123) |
Commercial and industrial | Paycheck Protection Program loans | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Net loans | 298,000 | 561,000 | ||
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 29,688 | 32,366 | ||
Allowance for loan losses | (237) | (404) | ||
Commercial | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 2,782,092 | 2,488,382 | ||
Allowance for loan losses | (24,720) | (22,216) | ||
Construction | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan losses | (1,707) | (1,593) | ||
Construction | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 168,760 | 151,791 | ||
Allowance for loan losses | (2,329) | (2,105) | ||
Consumer. | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan losses | (1,717) | (1,581) | ||
Multifamily | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan losses | (2,732) | (2,661) | ||
Multifamily | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 373,095 | 355,290 | ||
Allowance for loan losses | (2,256) | (2,156) | ||
One to four family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan losses | $ (178) | $ (206) | ||
One to four family | Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 52,819 | 57,163 | ||
Allowance for loan losses | $ (104) | $ (140) |
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, 2022 | Mar. 31, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 34,729 | $ 35,407 |
Provision /(credit) for loan losses | 3,400 | 950 |
Loans charged-off | (855) | |
Recoveries | 5 | |
Total ending allowance balance | 38,134 | 35,502 |
Net charge-offs | 5,000 | 855,000 |
Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 1,593 | |
Provision /(credit) for loan losses | 114 | |
Total ending allowance balance | 1,707 | |
Consumer. | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 1,581 | |
Provision /(credit) for loan losses | 136 | |
Total ending allowance balance | 1,717 | |
Multifamily | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 2,661 | |
Provision /(credit) for loan losses | 71 | |
Total ending allowance balance | 2,732 | |
One to four family | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 206 | |
Provision /(credit) for loan losses | (28) | |
Total ending allowance balance | 178 | |
Real estate | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 17,243 | |
Provision /(credit) for loan losses | 1,098 | |
Total ending allowance balance | 18,341 | |
Real estate | Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 22,216 | |
Provision /(credit) for loan losses | 2,504 | |
Total ending allowance balance | 24,720 | |
Real estate | Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 2,105 | |
Provision /(credit) for loan losses | 224 | |
Total ending allowance balance | 2,329 | |
Real estate | Multifamily | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 2,156 | |
Provision /(credit) for loan losses | 100 | |
Total ending allowance balance | 2,256 | |
Real estate | One to four family | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 140 | |
Provision /(credit) for loan losses | (36) | |
Total ending allowance balance | 104 | |
Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 7,708 | 12,123 |
Provision /(credit) for loan losses | 780 | (441) |
Loans charged-off | (855) | |
Total ending allowance balance | 8,488 | $ 10,827 |
Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 404 | |
Provision /(credit) for loan losses | (172) | |
Recoveries | 5 | |
Total ending allowance balance | $ 237 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans by Impairment Method) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | $ 24 | $ 196 | ||
Collectively evaluated for impairment, Allowance for loan losses | 38,110 | 34,533 | ||
Total ending allowance balance | 38,134 | 34,729 | $ 35,502 | $ 35,407 |
Individually evaluated for impairment, Loans | 29,435 | 39,766 | ||
Collectively evaluated for impairment, Loans | 4,100,643 | 3,699,761 | ||
Total ending loan balance | 4,130,078 | 3,739,527 | ||
Construction | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total ending allowance balance | 1,707 | 1,593 | ||
Multifamily | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total ending allowance balance | 2,732 | 2,661 | ||
One to four family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total ending allowance balance | 178 | 206 | ||
Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total ending allowance balance | 18,341 | 17,243 | ||
Total ending loan balance | 3,376,766 | 3,052,626 | ||
Real estate | Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Collectively evaluated for impairment, Allowance for loan losses | 24,720 | 22,216 | ||
Total ending allowance balance | 24,720 | 22,216 | ||
Individually evaluated for impairment, Loans | 28,478 | 38,518 | ||
Collectively evaluated for impairment, Loans | 2,753,614 | 2,449,864 | ||
Total ending loan balance | 2,782,092 | 2,488,382 | ||
Real estate | Construction | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Collectively evaluated for impairment, Allowance for loan losses | 2,329 | 2,105 | ||
Total ending allowance balance | 2,329 | 2,105 | ||
Collectively evaluated for impairment, Loans | 168,760 | 151,791 | ||
Total ending loan balance | 168,760 | 151,791 | ||
Real estate | Multifamily | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Collectively evaluated for impairment, Allowance for loan losses | 2,256 | 2,156 | ||
Total ending allowance balance | 2,256 | 2,156 | ||
Collectively evaluated for impairment, Loans | 373,095 | 355,290 | ||
Total ending loan balance | 373,095 | 355,290 | ||
Real estate | One to four family | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 26 | |||
Collectively evaluated for impairment, Allowance for loan losses | 104 | 114 | ||
Total ending allowance balance | 104 | 140 | ||
Individually evaluated for impairment, Loans | 933 | 946 | ||
Collectively evaluated for impairment, Loans | 51,886 | 56,217 | ||
Total ending loan balance | 52,819 | 57,163 | ||
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Collectively evaluated for impairment, Allowance for loan losses | 8,488 | 7,708 | ||
Total ending allowance balance | 8,488 | 7,708 | $ 10,827 | $ 12,123 |
Collectively evaluated for impairment, Loans | 723,624 | 654,535 | ||
Total ending loan balance | 723,624 | 654,535 | ||
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment, Allowance for loan losses | 24 | 170 | ||
Collectively evaluated for impairment, Allowance for loan losses | 213 | 234 | ||
Total ending allowance balance | 237 | 404 | ||
Individually evaluated for impairment, Loans | 24 | 302 | ||
Collectively evaluated for impairment, Loans | 29,664 | 32,064 | ||
Total ending loan balance | $ 29,688 | $ 32,366 |
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, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
With an allowance recorded: | |||
Unpaid Principal Balance | $ 594 | $ 879 | |
Recorded Investment | 464 | 749 | |
Allowance for Loan Losses Allocated | 24 | 196 | |
Average Recorded Investment | 387 | $ 6,305 | |
Interest Income Recognized | 3 | 37 | |
Without an allowance recorded: | |||
Unpaid Principal Balance | 29,118 | 39,164 | |
Recorded Investment | 28,971 | 39,017 | |
Average Recorded Investment | 34,214 | 10,955 | |
Interest Income Recognized | 236 | 174 | |
Real estate | One to four family | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 570 | 577 | |
Recorded Investment | 440 | 447 | |
Allowance for Loan Losses Allocated | 26 | ||
Average Recorded Investment | 224 | 474 | |
Interest Income Recognized | 3 | 8 | |
Without an allowance recorded: | |||
Unpaid Principal Balance | 641 | 646 | |
Recorded Investment | 493 | 499 | |
Average Recorded Investment | 716 | 516 | |
Interest Income Recognized | 6 | 7 | |
Real estate | Commercial | |||
Without an allowance recorded: | |||
Unpaid Principal Balance | 28,477 | 38,518 | |
Recorded Investment | 28,478 | 38,518 | |
Average Recorded Investment | 33,498 | 10,343 | |
Interest Income Recognized | 230 | 167 | |
Commercial and industrial | |||
With an allowance recorded: | |||
Average Recorded Investment | 3,669 | ||
Without an allowance recorded: | |||
Average Recorded Investment | 96 | ||
Consumer | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 24 | 302 | |
Recorded Investment | 24 | 302 | |
Allowance for Loan Losses Allocated | 24 | $ 170 | |
Average Recorded Investment | $ 163 | 2,162 | |
Interest Income Recognized | $ 29 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Non-accrual Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 24 | $ 10,021 |
Loans Past Due Over 90 Days Still Accruing | 0 | 265 |
Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 0 | |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 0 | 9,984 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
Real estate | One to four family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 0 | |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 0 | 0 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 24 | 37 |
Loans Past Due Over 90 Days Still Accruing | $ 0 | $ 265 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Past Due Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 4,130,078 | $ 3,739,527 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 184 | 244 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 94 | |
90 days and greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 24 | 10,286 |
Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 208 | 10,624 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 4,129,870 | 3,728,903 |
Real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 3,376,766 | 3,052,626 |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,782,092 | 2,488,382 |
Real estate | Commercial | 90 days and greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 9,984 | |
Real estate | Commercial | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 9,984 | |
Real estate | Commercial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 2,782,092 | 2,478,398 |
Real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 168,760 | 151,791 |
Real estate | Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 168,760 | 151,791 |
Real estate | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 373,095 | 355,290 |
Real estate | Multifamily | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 373,095 | 355,290 |
Real estate | One to four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 52,819 | 57,163 |
Real estate | One to four family | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 52,819 | 57,163 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 723,624 | 654,535 |
Commercial and industrial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 111 | 151 |
Commercial and industrial | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 111 | 151 |
Commercial and industrial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 723,513 | 654,384 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 29,688 | 32,366 |
Consumer | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 73 | 93 |
Consumer | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 94 | |
Consumer | 90 days and greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 24 | 302 |
Consumer | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 97 | 489 |
Consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 29,591 | $ 31,877 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructurings) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)itemloan | Mar. 31, 2021loanitem | Dec. 31, 2021USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans modified in troubled debt restructurings | $ 1,272 | $ 1,288 | |
Number of TDR loans during the period | loan | 0 | 0 | |
Number of contracts financing receivable modifications | item | 0 | 0 | |
Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans modified in troubled debt restructurings | $ 339 | 342 | |
One to four family | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans modified in troubled debt restructurings | $ 933 | $ 946 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans by Risk Category) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 4,130,078 | $ 3,739,527 |
Commercial Construction and Multifamily Real Estate Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 4,047,571 | 3,649,998 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 4,014,868 | 3,603,196 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 4,564 | 4,519 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 28,139 | 42,283 |
Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 3,376,766 | 3,052,626 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 2,782,092 | 2,488,382 |
Real estate | Commercial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 2,753,614 | 2,449,864 |
Real estate | Commercial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 339 | 342 |
Real estate | Commercial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 28,139 | 38,176 |
Real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 168,760 | 151,791 |
Real estate | Construction | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 168,760 | 151,791 |
Real estate | Multifamily | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 373,095 | 355,290 |
Real estate | Multifamily | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 373,095 | 355,290 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 723,624 | 654,535 |
Commercial and industrial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 719,399 | 646,251 |
Commercial and industrial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 4,225 | 4,177 |
Commercial and industrial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 4,107 |
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, 2022USD ($)loanitem | Mar. 31, 2021loan | Dec. 31, 2021USD ($)loan | |
Financing Receivable, Impaired [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | loan | 0 | 0 | |
Percentage of Loans and Leases Receivable, Modified | 1.14% | ||
COVID 19 - Impact | |||
Financing Receivable, Impaired [Line Items] | |||
Number of total loans modified | 6 | 8 | |
Loan Restructuring, Trial Modifications, Amount | $ 47.1 | $ 48.9 | |
Percentage of Loans and Leases Receivable, Modified | 1.31% | ||
COVID 19 - Impact | Principal Payment Deferrals | |||
Financing Receivable, Impaired [Line Items] | |||
Loan Restructuring, Trial Modifications, Amount | $ 47.1 | $ 39.1 | |
Percentage of Loans and Leases Receivable, Modified | 1.14% | 1.05% | |
COVID 19 - Impact | Full Payment Deferrals | |||
Financing Receivable, Impaired [Line Items] | |||
Loan Restructuring, Trial Modifications, Amount | $ 0 | $ 9.9 | |
Percentage of Loans and Leases Receivable, Modified | 0.26% |
BORROWINGS (Details)
BORROWINGS (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Federal Home Loan Bank, Advances [Line Items] | |
Redemption of subordinated debt | $ 24,712 |
Subordinated Debt | |
Federal Home Loan Bank, Advances [Line Items] | |
Redemption of subordinated debt | $ 25,000 |
Maturity date | Mar. 15, 2027 |
Interest rate | 6.25% |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Sep. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Stockholders Equity Note [Line Items] | ||||
Common stock, shares outstanding | 10,931,697 | 10,920,569 | ||
Class B Preferred Stock | ||||
Stockholders Equity Note [Line Items] | ||||
Preferred stock, shares authorized | 2,000,000 | |||
Preferred stock, par value | $ 0.01 | |||
Preferred stock, shares issued | 0 | |||
Series F, Class B Non-voting Preferred Stock | ||||
Stockholders Equity Note [Line Items] | ||||
Preferred stock exchanged | 272,636 | |||
Common Stock | ||||
Stockholders Equity Note [Line Items] | ||||
Issuance of Common Stock, net of issuance costs (in shares) | 2,300,000 | |||
Stock price | $ 75,000,000 | |||
Gross proceed | $ 172.5 | |||
Proceeds from issuance of common stock, net | $ 162.7 | |||
Common stock, shares outstanding | 10,600,000 | 8,300,000 |
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, 2022 | Mar. 31, 2021 | |
Basic | ||
Net income | $ 19,021 | $ 12,117 |
Less: Earnings allocated to participating securities | (25) | (55) |
Net income available to common stockholders | $ 18,996 | $ 12,062 |
Weighted average common shares outstanding including participating securities | 10,934,091 | 8,313,660 |
Less: Weighted average participating securities | (14,223) | (37,486) |
Weighted average common shares outstanding | 10,919,868 | 8,276,174 |
Basic earnings per common share (in dollars per share) | $ 1.74 | $ 1.46 |
Diluted | ||
Net income allocated to common shareholders | $ 18,996 | $ 12,062 |
Weighted average common shares outstanding for basic earnings per common share | 10,919,868 | 8,276,174 |
Average shares and dilutive potential common shares | 11,223,294 | 8,417,319 |
Diluted earnings per common share (in dollars per share) | $ 1.69 | $ 1.43 |
Stock Option | ||
Diluted | ||
Add: Dilutive effects of assumed exercise of stock options | 190,826 | 141,145 |
Performance-Based Restricted Stock Units (PRSUs) | ||
Diluted | ||
Dilutive effects of assumed vesting units | 73,561 | |
Restricted stock awards | ||
Calculations of basic and diluted earnings per share | ||
Number of antidilutive shares not considered in computing diluted earnings per share | 234,332 | 108,178 |
Diluted | ||
Dilutive effects of assumed vesting units | 39,039 |
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 year | shares | 231,000 |
Outstanding, end of year | shares | 231,000 |
Options vested and exercisable at year-end | shares | 231,000 |
Weighted Average Exercise Price | |
Outstanding, beginning of year | $ / shares | $ 18 |
Outstanding, end of year | $ / shares | 18 |
Options vested and exercisable at year-end | $ / shares | $ 18 |
Weighted average remaining contractual life (years) | 2 years 1 month 17 days |
STOCK COMPENSATION PLAN (Summ_2
STOCK COMPENSATION PLAN (Summary of Stock Options Outstanding) (Details) - $10 - 30 | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
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 | 2 years 1 month 17 days |
Weighted Average Exercise Price | $ 18 |
Weighted Average Intrinsic Price | $ 83.77 |
STOCK COMPENSATION PLAN (Summ_3
STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details) - Restricted stock awards | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of shares, Outstanding, beginning of period | shares | 90,999 |
Number of shares, Granted | shares | 83,151 |
Number of shares, Vested | shares | (29,818) |
Number of shares, Outstanding at end of period | shares | 144,332 |
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 | $ / shares | $ 47.35 |
Weighted Average Grant Date fair Value, Granted | $ / shares | 102.49 |
Weighted Average Grant Date fair Value, Vested | $ / shares | 44.47 |
Weighted Average Grant Date fair Value, at end of period | $ / shares | $ 79.71 |
STOCK COMPENSATION PLAN (Detail
STOCK COMPENSATION PLAN (Details) | May 28, 2019shares | Jan. 31, 2022shares | Jan. 31, 2019shares | Jun. 30, 2022shares | Mar. 31, 2022USD ($)itemshares | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($)shares | Mar. 31, 2018shares | Dec. 31, 2021USD ($) | Dec. 31, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Outstanding shares | shares | 231,000 | 231,000 | ||||||||
Remaining unrecognized compensation expense recognition period | 2 years 4 months 17 days | |||||||||
Equity Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Compensation expense recognized | $ 471,000 | |||||||||
Restricted stock awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized compensation cost related to non-vested stock options | 9,900,000 | |||||||||
Compensation cost related to stock awards | $ 751,000 | $ 476,000 | ||||||||
Number of shares, Granted | shares | 83,151 | |||||||||
Restricted stock awards | Key Personnel | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares, Granted | shares | 83,151 | 78,582 | ||||||||
Vesting period | 3 years | |||||||||
Restricted stock awards | Non-employee directors | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized compensation cost related to non-vested stock options | $ 893,000 | $ 330,000 | ||||||||
Compensation cost related to stock awards | $ 298,000 | $ 110,000 | ||||||||
Number of shares, Granted | shares | 11,126 | 38,900 | ||||||||
Service period (in years) | 3 years | |||||||||
Performance-Based Restricted Stock Units (PRSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | 3 years | ||||||||
Number of PRSUs awarded | shares | 90,000 | 90,000 | 90,000 | |||||||
Weighted average service inception date fair value of award share in amount | $ 5,700,000 | |||||||||
Number of equal installments | item | 3 | |||||||||
Fair value of shares vested | $ 30,000 | |||||||||
Equity Incentive Plan 2019 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based payment award, shares authorized, maximum | shares | 340,000 | |||||||||
Compensation cost related to stock awards | $ 0 | $ 0 | ||||||||
Equity Incentive Plan 2019 | 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 2019 | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based payment award, exercise period from the grant date | 5 years | |||||||||
Equity Incentive Plan 2019 | 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 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 | 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 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Outstanding shares | shares | 468,382 | |||||||||
Number of shares expired | shares | 628,719 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 975,794 | $ 950,996 | |
Amount of transfers of assets measured on a recurring basis out of Level 1 of the fair value hierarchy into Level 2 | 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 | 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 | 62,746 | 66,334 | |
Carrying Amount | U.S. State and Municipal securities | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 10,238 | 11,499 | |
Carrying Amount | Residential MBS | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 412,121 | 466,551 | |
Carrying Amount | Commercial MBS | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 16,208 | 17,627 | |
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 | 4,415 | 4,613 | |
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 | 2,173 | 2,273 | |
Carrying Amount | Derivative assets - interest rate cap | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 12,076 | 3,385 | |
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 | 2,173 | 2,273 | |
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 | 62,746 | 66,334 | |
Fair Value, Inputs, Level 2 | U.S. State and Municipal securities | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 10,238 | 11,499 | |
Fair Value, Inputs, Level 2 | Residential MBS | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 412,121 | 466,551 | |
Fair Value, Inputs, Level 2 | Commercial MBS | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 16,208 | 17,627 | |
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 | 4,415 | 4,613 | |
Fair Value, Inputs, Level 2 | Derivative assets - interest rate cap | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 12,076 | $ 3,385 |
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, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Securities available for sale | $ 505,728 | $ 566,624 |
Securities held to maturity | 436,800 | 380,100 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 3,176,048 | 3,668,673 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 32,483 | 28,864 |
Overnight deposits | 1,381,475 | 2,330,486 |
Securities held to maturity | 467,893 | 382,099 |
Loans, net | 4,083,309 | 3,697,200 |
Other investments | ||
FRB Stock | 11,421 | 7,430 |
FHLB Stock | 3,070 | 3,070 |
Disability Fund | 1,000 | 1,000 |
Time deposits at banks | 498 | |
CRA - CD | 498 | |
Receivables from prepaid card programs, net | 62,129 | 39,864 |
Accrued interest receivable | 16,186 | 15,195 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 3,176,048 | 3,668,673 |
Money market and savings deposits | 2,689,424 | 2,687,913 |
Time deposits | 73,891 | 78,986 |
Trust preferred securities payable | 20,620 | 20,620 |
Subordinated debt, net of issuance cost | 24,712 | |
Prepaid debit cardholder balances | 24,092 | 8,847 |
Accrued interest payable | 297 | 746 |
Secured Borrowings | 32,322 | 32,461 |
Total Fair Value | ||
Financial assets: | ||
Cash and due from banks | 32,483 | 28,864 |
Overnight deposits | 1,381,475 | 2,330,486 |
Securities held to maturity | 436,825 | 380,108 |
Loans, net | 4,111,399 | 3,721,619 |
Other investments | ||
Disability Fund | 1,000 | 1,000 |
Time deposits at banks | 498 | |
CRA - CD | 498 | |
Receivables from prepaid card programs, net | 62,129 | 39,864 |
Accrued interest receivable | 16,186 | 15,195 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 3,176,048 | 3,668,673 |
Money market and savings deposits | 2,689,424 | 2,687,913 |
Time deposits | 73,233 | 79,187 |
Trust preferred securities payable | 19,965 | 19,997 |
Subordinated debt, net of issuance cost | 25,125 | |
Prepaid debit cardholder balances | 24,092 | 8,847 |
Accrued interest payable | 297 | 746 |
Secured Borrowings | 32,322 | 32,507 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Cash and due from banks | 32,483 | 28,864 |
Overnight deposits | 1,381,475 | 2,330,486 |
Other investments | ||
Time deposits at banks | 498 | |
CRA - CD | 498 | |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 3,176,048 | 3,668,673 |
Money market and savings deposits | 2,689,424 | 2,687,913 |
Accrued interest payable | 5 | 5 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Securities held to maturity | 436,825 | 380,108 |
Other investments | ||
Disability Fund | 1,000 | 1,000 |
Accrued interest receivable | 765 | 892 |
Financial liabilities: | ||
Time deposits | 73,233 | 79,187 |
Subordinated debt, net of issuance cost | 25,125 | |
Accrued interest payable | 180 | 633 |
Secured Borrowings | 32,322 | 32,507 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Loans, net | 4,111,399 | 3,721,619 |
Other investments | ||
Receivables from prepaid card programs, net | 62,129 | 39,864 |
Accrued interest receivable | 15,421 | 14,303 |
Financial liabilities: | ||
Trust preferred securities payable | 19,965 | 19,997 |
Prepaid debit cardholder balances | 24,092 | 8,847 |
Accrued interest payable | $ 112 | $ 108 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Outstanding following off-balance-sheet financial instruments) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 93,804 | $ 89,664 |
Variable Rate | 343,546 | 346,115 |
Unused commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 43,628,000 | 39,676,000 |
Variable Rate | 343,546,000 | 346,115,000 |
Standby and commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 50,176,000 | 49,988,000 |
Variable Rate | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 93,804 | $ 89,664 |
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 | 2.30% | 2.00% |
Commitments term | 1 year | 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 | 8.50% | 8.30% |
Commitments term | 2 years | |
Standby and commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amount of off-balance-sheet financial instruments | $ 50,176,000 | $ 49,988,000 |
Amount of off-balance-sheet financial instruments collateral received | $ 29,600,000 | $ 29,600,000 |
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, 2022 | Mar. 31, 2021 | |
Non-interest income | $ 7,533 | $ 4,636 |
Service charges on deposit accounts | ||
Non-interest income | 1,370 | 972 |
Global payments revenue | ||
Non-interest income | 5,657 | 3,360 |
Other service charges and fees | ||
Non-interest income | $ 506 | $ 304 |
DERIVATIVES - Derivative positi
DERIVATIVES - Derivative position (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
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 | $ 2,305 | $ 2,059 |
DERIVATIVES - Cash flow hedge a
DERIVATIVES - Cash flow hedge accounting (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Interest rate caps related to customer deposits | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount, derivative asset | $ 300,000 | ||
Derivatives designated as hedging instruments | Interest rate caps related to customer deposits | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount, derivative asset | $ 300,000 | $ 300,000 | |
Fair value | 12,076 | 3,385 | |
Derivatives designated as hedging instruments | Other assets. | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount, derivative asset | 300,000 | 300,000 | |
Fair value | $ 12,076 | $ 3,385 |