Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 23, 2023 | Jun. 30, 2022 | |
Document And Entity Information (Abstract) | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 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, $0.01 par value | ||
Trading Symbol | MCB | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 709.9 | ||
Entity Common Stock, Shares Outstanding | 10,961,091 | ||
Entity Central Index Key | 0001476034 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Crowe LLP | ||
Auditor Firm ID | 173 | ||
Auditor Location | New York, New York |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 26,780 | $ 28,864 |
Overnight deposits | 230,638 | 2,330,486 |
Total cash and cash equivalents | 257,418 | 2,359,350 |
Investment securities available for sale, at fair value | 445,747 | 566,624 |
Investment securities held to maturity (estimated fair value of $437.3 million and $380.1 million at December 31, 2022 and 2021, respectively) | 510,425 | 382,099 |
Equity investment securities, at fair value | 2,048 | 2,273 |
Total securities | 958,220 | 950,996 |
Other investments | 22,110 | 11,998 |
Loans, net of deferred fees and costs | 4,840,523 | 3,731,929 |
Allowance for loan losses | (44,876) | (34,729) |
Net loans | 4,795,647 | 3,697,200 |
Receivable from global payments business, net | 85,605 | 39,864 |
Other assets | 148,337 | 56,950 |
Total assets | 6,267,337 | 7,116,358 |
Deposits | ||
Noninterest-bearing demand deposits | 2,422,151 | 3,668,673 |
Interest-bearing deposits | 2,855,761 | 2,766,899 |
Total deposits | 5,277,912 | 6,435,572 |
Federal funds purchased | 150,000 | |
Federal Home Loan Bank of New York advances | 100,000 | |
Trust preferred securities | 20,620 | 20,620 |
Subordinated debt, net of issuance cost | 24,712 | |
Secured borrowings | 7,725 | 32,461 |
Prepaid third-party debit cardholder balances | 10,579 | 8,847 |
Other liabilities | 124,604 | 37,157 |
Total liabilities | 5,691,440 | 6,559,369 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 25,000,000 shares authorized, 10,949,965 and 10,920,569 shares issued and outstanding at December 31, 2022 and 2021, respectively | 109 | 109 |
Additional paid in capital | 389,276 | 382,999 |
Retained earnings | 240,810 | 181,385 |
Accumulated other comprehensive income (loss), net of tax | (54,298) | (7,504) |
Total stockholders' equity | 575,897 | 556,989 |
Total liabilities and stockholders' equity | $ 6,267,337 | $ 7,116,358 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Securities held to maturity | $ 437.3 | $ 380.1 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 10,949,965 | 10,920,569 |
Common stock, shares outstanding | 10,949,965 | 10,920,569 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and dividend income | |||
Loans, including fees | $ 231,851 | $ 164,528 | $ 136,497 |
Securities | |||
Taxable | 15,432 | 5,649 | 3,208 |
Tax-exempt | 203 | 189 | |
Money market funds | 34 | ||
Overnight deposits | 12,314 | 2,310 | 2,546 |
Other interest and dividends | 939 | 608 | 812 |
Total interest income | 260,739 | 173,284 | 143,097 |
Interest expense | |||
Deposits | 29,284 | 14,241 | 14,244 |
Borrowed funds | 893 | 1,742 | |
Trust preferred securities | 799 | 424 | 572 |
Subordinated debt | 605 | 1,618 | 1,618 |
Total interest expense | 31,581 | 16,283 | 18,176 |
Net interest income | 229,158 | 157,001 | 124,921 |
Provision for loan losses | 10,116 | 3,816 | 9,488 |
Net interest income after provision for loan losses | 219,042 | 153,185 | 115,433 |
Non-interest income | |||
Non-interest income | 26,851 | 23,150 | 13,669 |
Other income | 1,505 | 2,497 | 4,811 |
Total non-interest income | 26,593 | 23,697 | 17,003 |
Non-interest expense | |||
Compensation and benefits | 57,290 | 45,908 | 39,797 |
Bank premises and equipment | 8,855 | 8,055 | 8,340 |
Professional fees | 14,423 | 6,750 | 4,122 |
Technology costs | 4,713 | 5,201 | 3,387 |
Licensing fees | 10,477 | 8,606 | 9,653 |
FDIC assessments | 4,625 | 3,852 | 2,041 |
Regulatory settlement reserve | 35,000 | ||
Other expenses | 13,354 | 8,940 | 7,178 |
Total non-interest expense | 148,737 | 87,312 | 74,518 |
Net income before income tax expense | 96,898 | 89,570 | 57,918 |
Income tax (expense) benefit | 37,473 | 29,015 | 18,452 |
Net income | $ 59,425 | $ 60,555 | $ 39,466 |
Earnings per common share | |||
Basic earnings (loss) per common share (in dollars per share) | $ 5.42 | $ 6.64 | $ 4.76 |
Diluted earnings (loss) per common share (in dollars per share) | $ 5.29 | $ 6.45 | $ 4.66 |
Service charges on deposit accounts | |||
Non-interest income | |||
Non-interest income | $ 5,747 | $ 4,755 | $ 3,728 |
Revenue, Product and Service [Extensible List] | Service charges on deposit accounts | Service charges on deposit accounts | Service charges on deposit accounts |
Global payments revenue | |||
Non-interest income | |||
Non-interest income | $ 19,341 | $ 16,445 | $ 8,464 |
Revenue, Product and Service [Extensible List] | Global payments revenue | Global payments revenue | Global payments revenue |
Other service charges and fees | |||
Non-interest income | |||
Non-interest income | $ 1,763 | $ 1,950 | $ 1,477 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net Income | $ 59,425 | $ 60,555 | $ 39,466 |
Other comprehensive income: | |||
Unrealized gain (loss) arising during the period | (76,934) | (14,722) | 4,877 |
Reclassification adjustment for gains included in net income | (609) | (3,286) | |
Tax effect | 23,353 | 4,795 | (514) |
Net of tax | (53,581) | (10,536) | 1,077 |
Cash flow hedges: | |||
Unrealized gain (loss) arising during the period | 11,704 | 2,957 | (1,925) |
Reclassification adjustment for gains included in net income | (1,949) | ||
Tax effect | (2,968) | (898) | 614 |
Net of tax | 6,787 | 2,059 | (1,311) |
Total other comprehensive income (loss) | (46,794) | (8,477) | (234) |
Comprehensive Income (Loss) | $ 12,631 | $ 52,078 | $ 39,232 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Class B Preferred Stock Preferred Stock | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI (Loss), Net | Total |
Balance at Dec. 31, 2019 | $ 3 | $ 82 | $ 216,468 | $ 81,364 | $ 1,207 | $ 299,124 | |
Balance (in shares) at Dec. 31, 2019 | 272,636 | 8,312,918 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net issuance of common stock under stock compensation plans (in shares) | (3,298) | ||||||
Employee and non-employee stock-based compensation | 3,312 | 3,312 | |||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting | (881) | (881) | |||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting (in shares) | (14,348) | ||||||
Net Income | 39,466 | 39,466 | |||||
Other comprehensive income (loss) | (234) | (234) | |||||
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] | |||||||
Net issuance of common stock under stock compensation plans | $ 1 | 1 | |||||
Net issuance of common stock under stock compensation plans (in shares) | 101,291 | ||||||
Issuance of Common Stock, net of issuance costs | $ 23 | 162,664 | 162,687 | ||||
Issuance of Common Stock, net of issuance costs (in shares) | 2,300,000 | ||||||
Preferred Stock converted to Common Stock | $ (3) | $ 3 | |||||
Preferred Stock converted to Common Stock (in shares) | (272,636) | 272,636 | |||||
Employee and non-employee stock-based compensation | 4,821 | 4,821 | |||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting | (3,385) | (3,385) | |||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting (in shares) | (48,630) | ||||||
Net Income | 60,555 | 60,555 | |||||
Other comprehensive income (loss) | (8,477) | (8,477) | |||||
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] | |||||||
Net issuance of common stock under stock compensation plans (in shares) | 48,479 | ||||||
Employee and non-employee stock-based compensation | 7,836 | 7,836 | |||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting | (1,559) | (1,559) | |||||
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting (in shares) | (19,083) | ||||||
Net Income | 59,425 | 59,425 | |||||
Other comprehensive income (loss) | (46,794) | (46,794) | |||||
Balance at Dec. 31, 2022 | $ 109 | $ 389,276 | $ 240,810 | $ (54,298) | $ 575,897 | ||
Balance (in shares) at Dec. 31, 2022 | 10,949,965 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income | $ 59,425 | $ 60,555 | $ 39,466 |
Adjustments to reconcile net income to net cash: | |||
Net depreciation amortization and accretion | 4,338 | 5,063 | 4,603 |
Provision for loan losses | 10,116 | 3,816 | 9,488 |
Stock-based compensation | 7,836 | 4,821 | 3,312 |
Net change in deferred loan fees | 5,374 | 2,332 | 296 |
Deferred income tax (benefit) expense | (4,000) | (120) | 290 |
(Gain) loss on sale of securities | (609) | (3,286) | |
(Gain) loss on sale of loans | 190 | ||
Dividends earned on CRA fund | (33) | (22) | (41) |
Unrealized (gain) loss on equity securities | 258 | 62 | (48) |
Net change in: | |||
Receivable from global payments, net | (45,741) | (12,605) | (15,678) |
Third-party debit cardholder balances | 1,732 | (6,983) | 16,227 |
Other assets | 3,407 | 6,167 | (5,121) |
Other liabilities | 43,179 | (25,200) | 37,572 |
Net cash provided by (used in) operating activities | 85,891 | 37,277 | 87,270 |
Cash flows from investing activities | |||
Loan originations, purchases and payments, net | (1,113,963) | (618,323) | (476,419) |
Proceeds from loans sold | 16,622 | 11,476 | |
Redemptions of other investments | 20,030 | 7 | 10,980 |
Purchases of other investments | (30,142) | (407) | (1,140) |
Purchase of securities available-for-sale | (33,776) | (484,793) | (234,366) |
Purchase of securities held-for-investment | (173,625) | (383,619) | |
Proceeds from sales and calls of securities available-for-sale | 43,241 | 141,422 | |
Proceeds from paydowns of securities available-for-sale | 76,728 | 124,118 | 64,973 |
Proceeds from paydowns of securities held-to-maturity | 44,643 | 4,152 | 932 |
Purchase of derivative contract | (2,980) | ||
Purchase of premises and equipment, net | (19,245) | (3,995) | (3,913) |
Net cash provided by (used in) investing activities | (1,229,350) | (1,302,997) | (489,035) |
Cash flows from financing activities | |||
Proceeds from issuance of common stock, net | 162,687 | ||
Proceeds from issuance of Federal funds purchased | 150,000 | ||
Proceeds from FHLB advances | 975,100 | 150 | |
Repayments of FHLB advances | (875,100) | (150) | (144,000) |
Proceeds from exercise of stock options | 194 | ||
Redemption of common stock for tax withholdings for restricted stock vesting | (1,559) | (3,385) | (881) |
Redemption of subordinated debt | (24,712) | ||
Proceeds from (repayments of) secured borrowings, net | (24,736) | (4,503) | (6,008) |
Net increase (decrease) in deposits | (1,157,660) | 2,605,966 | 1,027,739 |
Net cash provided by (used in) financing activities | (958,473) | 2,760,765 | 876,850 |
Increase (decrease) in cash and cash equivalents | (2,101,932) | 1,495,045 | 475,085 |
Cash and cash equivalents at the beginning of the period | 2,359,350 | 864,305 | 389,220 |
Cash and cash equivalents at the end of the period | 257,418 | 2,359,350 | 864,305 |
Cash paid for: | |||
Interest | 31,599 | 16,249 | 18,693 |
Income Taxes | $ 35,304 | 24,165 | 19,085 |
Non-cash item: | |||
Transfer of loans from held-for-investment to held-for-sale | $ 17,492 | $ 1,716 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION | |
ORGANIZATION | NOTE 1 — ORGANIZATION Metropolitan Bank Holding Corp., a New York corporation (the “Company”), is a bank holding company whose principal activity is the ownership and management of Metropolitan Commercial Bank (the “Bank”), its wholly-owned subsidiary. The 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 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 up to 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 services and 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 | 12 Months Ended |
Dec. 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 Consolidated Financial Statements (the “financial statements”) include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated. The financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the periods presented. A summary of the Company’s significant accounting policies consistently applied in the preparation of the accompanying financial statements follows. Use of Estimates In preparing the 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. 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. Cash Flows Cash and cash equivalents are defined as cash on hand and amounts due from banks and money market funds. Net cash flows are reported for customer loan and deposit transactions, and other investments. Securities Debt securities are classified as HTM and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as AFS when they might be sold before maturity. Securities classified as AFS are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized using the level yield method without anticipating prepayments, except for MBS where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Gains and losses on sales of securities are recognized in the consolidated statements of operations upon sale. Management evaluates AFS and HTM securities for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the statement of operations and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Receivable from Global Payments Business, Net Receivables from the global payments business are predominantly related to prepaid credit card programs. Revenue Recognition Any revenues from contracts with customers, which are not exempt from the accounting requirements under ASC 606, Revenue from Contracts with Customers, are accounted for using the five-step method prescribed by the ASC. These revenue items are debit card income, service charges on deposit accounts and other service charges. In accordance with the ASC, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these services. The Company applies the following five steps to properly recognize revenue: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The majority of the Company’s revenue is derived from interest income on loans, which is not subject to the ASC. Licensing Fees Licensing fees on certain deposit accounts held by bankruptcy trustees are expensed as incurred. These accounts require the use of a software interface provided by a third party. Bankruptcy accounts subject to the licensing fees amounted to $425.3 million and $934.3 million at December 31, 2022 and 2021, respectively. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Transfers of financial assets that do not meet the criteria to be accounted for as sales are recorded as secured borrowings. Loans and Allowance for Loan Losses Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances, adjusted for any charge-offs, and any deferred fees or costs on originated loans. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The ALLL is maintained at an amount management deems adequate to cover probable incurred credit losses. In determining the level to be maintained, management evaluates many factors, including current economic trends, industry experience, historical loss experience, loan concentrations, the borrower’s ability to repay and repayment performance and estimated collateral values. Loan losses are charged-off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the ALLL. A loan is considered to be impaired when it is probable that the Company will be unable to collect all principal and interest amounts according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. If a loan is impaired, impairment is measured at the present value of estimated future cash flows using the loan’s effective interest rate or at the fair value of collateral if repayment is expected solely from the collateral. All commercial and CRE loans are individually evaluated for credit risk at least annually, and all classified loans are individually evaluated for impairment quarterly. Large groups of smaller balance homogenous loans such as residential real estate loans are collectively evaluated for impairment, and accordingly, are not separately evaluated for impairment disclosures unless an individual loan is classified. The allowance for non-impaired loans is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over a rolling two-year period. This actual loss experience is supplemented with other qualitative and economic factors based on the risks present for each portfolio segment. These qualitative and economic factors include economic and business conditions, the nature and volume of the portfolio, and lending terms and volume and severity of past due loans. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary, based on changes in economic conditions or any other factors used in management’s determination. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL. When a loan is modified and concessions have been made to the original contractual terms, such as reductions in interest rate or deferral of interest or principal payments, due to the borrower’s financial condition, the modification is known as a TDR. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. On March 22, 2020, the banking regulators and the FASB issued guidance to financial institutions who were working with borrowers affected by COVID-19 (the “COVID-19 Guidance”). The COVID-19 Guidance indicated that regulatory agencies will not criticize institutions for working with borrowers and will not direct banks to automatically categorize all COVID-19 related loan modifications as TDRs. In addition, the COVID-19 Guidance noted that modification or deferral programs mandated by the federal or a state government related to COVID-19 would not be in the scope of Accounting Standards Codification Subtopic 310-40 – Receivables – Troubled Debt Restructurings by Creditors (“ASC 310-40”), such as state programs that require all institutions within that state to suspend mortgage payments for a specified period. On March 27, 2020, the CARES Act was signed into law. Section 4013 of the CARES Act, “Temporary Relief from Troubled Debt Restructurings,” allowed banks to temporarily suspend certain requirements under GAAP related to TDRs for a limited period that ended on January 1, 2022. During this period, a bank may have elected to account for modifications on certain loans under Section 4013 of the CARES Act or, if a loan modification is not eligible under Section 4013, a bank may use the criteria in the COVID-19 Guidance to determine when a loan modification is not a TDR in accordance with ASC 310-40. Interest income on loans is accrued and credited to operations based upon the principal amounts outstanding. Loans are normally placed on non-accrual when a loan is determined to be impaired or when principal or interest is delinquent for 90 days or more. Delinquent status is based on the contractual terms of the loan. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on such loans are applied as a reduction of the loan principal balance when the collectability of principal, wholly or partially, is in doubt. Interest payments received may be deferred on non-accrual loans in which the principal balance is deemed to be collectible. Interest income is recognized when all the principal and interest amounts contractually due are brought current and the loans are returned to accrual status. The following portfolio segments have been identified: CRE loans, Construction loans, Multi-Family loans, One-to Four -Family loans, C&I, and Consumer loans. The risk characteristics of each of the identified portfolio segments are as follows: Commercial Real Estate — Construction — construction phase, a number of factors could result in delays and cost overruns. If the estimate of construction costs proves to be inaccurate, additional funds may be required to be advanced in excess of the amount originally committed to permit completion of the building. If the estimate of value proves to be inaccurate, the value of the building may be insufficient to assure full repayment if liquidation is required. If foreclosure is required on a building before or at completion due to a default, there can be no assurance that all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs will be recovered. Multi-family — One-to Four-Family — Commercial & Industrial — Consumer — Goodwill Goodwill and certain other intangibles generally arise from business combinations accounted for under the purchase method of accounting. Goodwill and other intangibles deemed to have indefinite lives generated from business combinations are not subject to amortization and are instead tested for impairment not less than annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. The Company changed its annual goodwill impairment testing date from December 31 to October 1 to better align with the timing of our annual planning process. Accordingly, management determined that the change in accounting principle is preferable under the circumstance. This change has been applied starting with the October 1, 2022 impairment test. This change was not material to our consolidated financial statements as it did not delay, accelerate, or avoid any potential goodwill impairment charges. The goodwill of $9.7 million is associated with a purchase of the prepaid third-party debit card business. Based on the Company’s annual impairment assessments no impairment of goodwill existed as of October 1, 2022 or December 31, 2021. Stock-Based Compensation Compensation cost is recognized for stock options, restricted stock awards and restricted stock units, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of options. The market price of the Company’s common stock at the date of grant is used for restricted stock awards and restricted stock units. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with time-based vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company also awards PRSUs to employees. The PRSUs are classified as either equity or a liability, depending on certain criteria provided in ASC 718, Stock Based Compensation. This classification affects whether the measurement of fair value is fixed (i.e., measured only once) on the grant date or whether fair value will be remeasured each reporting period until settled. On the grant date, the estimate of equity-classified awards’ fair value would be fixed, the cumulative amount of previously recognized compensation cost would be adjusted, and the Company would no longer have to remeasure the award. If the award is liability-classified, the awards would continue to be marked to fair value each reporting period until settlement. The Company recognizes compensation cost for awards with performance conditions if and when it concludes that it is probable that the performance conditions will be achieved. The Company assesses the probability of vesting (i.e., that the performance conditions will be met) at each reporting period and, if required, adjusts compensation cost based on its probability assessment. Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of temporary cash investments including due from banks, interest-bearing deposits with banks and real estate loans receivable. A significant portion of real estate loans are collateralized by property in the New York Metropolitan area. The ultimate collectability of these loans may be susceptible to changes in the real estate market in this area. Leases As of December 31, 2022, the Company follows ASC 842, Leases. The Company’s real estate leases are recognized as operating leases. The related ROU lease assets and liabilities are recognized to reflect our right to use the underlying assets and contractual obligations associated with future rent payments. ROU assets are included in other assets and lease liabilities are included in other liabilities on the consolidated statements of financial condition. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. On a periodic basis, ROU assets are assessed for impairment and an impairment loss would be recognized if the carrying amount of the ROU asset is not recoverable. See “NOTE 3 — SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS, Prior to 2022, operating leases were not recognized on the Company’s consolidated statements of financial condition. Operating lease expense for lease payments were recognized on a straight-line basis over the lease term in the Company’s consolidated statements of operations. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed over the estimated useful lives of the assets by the straight-line method with useful lives ranging from three Other Investments Other investments include FRB and FHLB stock. The Company is a member of the FRB and the FHLB system. FHLB members are required to own membership stock and purchase activity-based stock that is based on the level of outstanding borrowings. FRB and FHLB stock are carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Company held FRB and FHLB stock of $11.4 million and $9.2 million, respectively, as of December 31, 2022. As of December 31, 2021, the Company held FRB and FHLB stock of $7.4 million and $3.1 million, respectively. Other investments also include a $1.0 million investment in The Disability Opportunity Fund, which is an equity equivalent investment in a community development financial institution. Derivatives During 2020, the Company entered into an interest rate cap derivative that, based on the Company’s intentions and belief as to the likely effectiveness as a hedge, was designated as a cash flow hedge. A cash flow hedge is a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in accumulated other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of the derivative that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. The amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedged transactions at the inception of the hedging relationship. The documentation includes linking the cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions or group of forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, or treatment of the derivative as a hedge is no longer appropriate or intended. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were in accumulated other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. If the forecasted transaction is deemed probable to not occur, the derivative gain or loss reported in accumulated other comprehensive income is reclassified into current earnings. Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses and reclassification to earnings related to AFS securities and unrealized gain (loss) related to the cash flow hedges. Restrictions on Cash Cash on hand or on deposit with the FRB to meet regulatory reserve and clearing requirements was $226.7 million and $2.3 billion as of December 31, 2022 and 2021, respectively. Also included in cash was $13.3 million and $10.8 million of cash held in escrow and collateral accounts for third-party debit card program managers at December 31, 2022 and 2021, respectively. Additionally, there was $693,000 and $683,000 of cash pledged for a related collateral account at December 31, 2022 and 2021, respectively. Earnings per Common Share Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding during the applicable period, including outstanding participating securities. Diluted earnings per common share is computed using the weighted average number shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. Unvested share-based awards and preferred shares that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. A valuation allowance is recorded, as necessary, to reduce deferred tax assets to an estimated amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of liquid markets for certain items. Changes in assumptions or in market conditions could significantly affect the estimates. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Reclassifications 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. Operating segment While department heads monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
SUMMARY OF RECENT ACCOUNTING PR
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 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’s EGC status ended on December 31, 2022, which was 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 (ASC 842), which requires lessees to recognize a lease liability for the obligation to make lease payments and a corresponding ROU asset representing the right to use the underlying asset for the lease term on the balance sheet. The Company adopted this guidance on December 31, 2022 with an effective date of January 1, 2022. This guidance was adopted using a modified retrospective approach. The Company recorded lease assets and liabilities of $44.3 million and $48.4 million, respectively. In accordance with the guidance, $4.1 million of deferred rent was reclassified from liabilities and netted with the ROU asset. There was no cumulative effect adjustment recorded to retained earnings upon adoption. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (ASC 326), which requires the measurement of all expected credit losses for financial assets held at amortized cost to be based on historical experience, current condition, and reasonable and supportable forecasts. ASU 2016-2013 requires that financial institutions and other organizations will use forward-looking information to better inform their credit loss estimates. This guidance also amends the accounting for credit losses on AFS debt securities and purchased financial assets with credit deterioration. The Company adopted this guidance effective January 1, 2023 using a modified retrospective approach and will record a pre-tax cumulative will increase In March 2022, the FASB issued ASU 2022-02, Financial Instruments - In January 2017, the FASB issued ASU 2017-04, Intangibles - 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 Company adopted the standard beginning January 1, 2021, which did not have a material impact on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 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 were effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications at the instrument level as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. In January 2021 the FASB issued ASU 2021-01. The amendments in this ASU clarify that certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in ASC 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. In December 2022, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 848): Deferral of Sunset Date of Topic 848. ASU 2020-04 defers the sunset date of ASC 848 from December 31, 2022, to December 31, 2024 because the current relief in ASC 848 did not cover the current June 30, 2023 intended cessation date for the overnight 1-, 3-, 6-, and 12-month tenors of USD LIBOR. Management has established a working group to evaluate the impact of the transition from LIBOR on the Company and its consolidated financial statements. The working group has developed an inventory of impacted contracts and client relationships and is in the process of assessing LIBOR alternatives and how such alternatives may be implemented. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE 4 — SECURITIES The following tables summarizes the amortized cost and fair value of AFS and HTM debt securities 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 recognized in earnings (in thousands): Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2022 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,996 $ — $ (8,624) $ 59,372 U.S. State and Municipal securities 11,649 — (2,437) 9,212 Residential MBS 413,998 279 (75,729) 338,548 Commercial MBS 37,069 10 (2,229) 34,850 Asset-backed securities 3,953 — (188) 3,765 Total securities available-for-sale $ 534,665 $ 289 $ (89,207) $ 445,747 Held-to-Maturity Securities: U.S. Treasury securities $ 29,852 $ — $ (2,223) $ 27,629 U.S. State and Municipal securities 15,814 — (2,609) 13,205 Residential MBS 456,648 — (67,027) 389,621 Commercial MBS 8,111 — (1,276) 6,835 Total securities held-to-maturity $ 510,425 $ — $ (73,135) $ 437,290 Equity Investments: CRA Mutual Fund $ 2,358 $ — $ (310) $ 2,048 Total equity investment securities $ 2,358 $ — $ (310) $ 2,048 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 The following table summarizes the proceeds and associated gains and (losses) from sales and calls of securities (in thousands): Year ended December 31, 2022 2021 2020 Proceeds $ — $ 43,241 $ 141,422 Gross gains $ — $ 609 $ 3,286 Tax impact $ — $ (197) $ (1,036) 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 December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 29,852 27,630 54,736 48,959 After 5 years through 10 years 9,505 8,130 36,043 32,872 After 10 years 471,068 401,530 443,886 363,916 Total Securities $ 510,425 $ 437,290 $ 534,665 $ 445,747 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 through 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 $25.0 million and $0.0 securities pledged to the FRBNY discount window at December 31, 2022 and 2021, respectively. At December 31, 2022 and 2021, all Residential and Commercial MBS held by the Company were issued by U.S. government-sponsored entities and agencies. Debt securities with unrealized/unrecognized 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 December 31, 2022 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: U.S. Government agency securities $ — $ — $ 59,372 $ (8,624) $ 59,372 $ (8,624) U.S. State and Municipal securities 2,546 (527) 6,666 (1,910) 9,212 (2,437) Residential MBS 19,576 (1,654) 305,936 (74,075) 325,512 (75,729) Commercial MBS 13,406 (198) 11,386 (2,031) 24,792 (2,229) Asset-backed securities — — 3,765 (188) 3,765 (188) Total securities available-for-sale $ 35,528 $ (2,379) $ 387,125 $ (86,828) $ 422,653 $ (89,207) Held-to-Maturity Securities: U.S. Treasury securities $ 18,683 $ (1,365) $ 8,946 $ (858) $ 27,629 $ (2,223) U.S. State and Municipal securities 13,205 (2,609) — — 13,205 (2,609) Residential MBS 162,960 (19,625) 226,661 (47,402) 389,621 (67,027) Commercial MBS — — 6,835 (1,276) 6,835 (1,276) Asset-backed securities — — — — — — Total securities held-to-maturity $ 194,848 $ (23,599) $ 242,442 $ (49,536) $ 437,290 $ (73,135) 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: 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) 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) Total securities available-for-sale $ 477,140 $ (11,075) $ 53,509 $ (1,751) $ 530,649 $ (12,826) Held-to-Maturity Securities: U.S. Treasury securities $ 9,697 $ (43) $ — $ — $ 9,697 $ (43) Residential MBS 301,896 (2,259) — — 301,896 (2,259) Commercial MBS 8,039 (99) — — 8,039 (99) Total securities held-to-maturity $ 319,632 $ (2,401) $ — $ — $ 319,632 $ (2,401) The Company did not consider these securities to be OTTI at December 31, 2022 or 2021 since the decline in market value was attributable to changes in interest rates and not to changes in 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 years ended December 31, 2022 or 2021. At December 31, 2022 and 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
LOANS | 12 Months Ended |
Dec. 31, 2022 | |
LOANS | |
LOANS | NOTE 5 — LOANS Loans, net of deferred fees and costs, consist of the following (in thousands): At December 31, 2022 2021 Real estate Commercial $ 3,254,508 $ 2,488,382 Construction 143,693 151,791 Multi-family 468,540 355,290 One-to four-family 53,207 57,163 Total real estate loans 3,919,948 3,052,626 Commercial and industrial 908,616 654,535 Consumer 24,931 32,366 Total loans 4,853,495 3,739,527 Deferred fees, net of origination costs (12,972) (7,598) Loans, net of deferred fees and costs 4,840,523 3,731,929 Allowance for loan losses (44,876) (34,729) Net loans $ 4,795,647 $ 3,697,200 Included in C&I loans at December 31, 2022 and 2021 were $97,000 and $561,000, respectively, of PPP loans. Also included in C&I loans at December 31, 2022 and 2021 were $0.0 and $4.1 million, respectively, of loans held for sale, measured at the lower of cost or fair value. 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- Year ended December 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 7,280 2,540 (122) 667 (35) (214) 10,116 Loans charged-off — — — — — — — Recoveries — 26 — — — 5 31 Total ending allowance balance $ 29,496 $ 10,274 $ 1,983 $ 2,823 $ 105 $ 195 $ 44,876 Commercial Commercial One-to four- Year ended December 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 4,973 24 512 (505) (66) (1,122) 3,816 Loans charged-off — (4,764) — — — (55) (4,819) Recoveries — 325 — — — — 325 Total ending allowance balance $ 22,216 $ 7,708 $ 2,105 $ 2,156 $ 140 $ 404 $ 34,729 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 December 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 29,496 10,274 1,983 2,823 105 171 44,852 Total ending allowance balance $ 29,496 $ 10,274 $ 1,983 $ 2,823 $ 105 $ 195 $ 44,876 Loans: Individually evaluated for impairment $ 26,740 $ — $ — $ — $ 899 $ 24 $ 27,663 Collectively evaluated for impairment 3,227,768 908,616 143,693 468,540 52,308 24,907 4,825,832 Total ending loan balance $ 3,254,508 $ 908,616 $ 143,693 $ 468,540 $ 53,207 $ 24,931 $ 4,853,495 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 (in thousands). The recorded investment in loans excludes accrued interest receivable and loan origination fees. At December 31, 2022 Year ended December 31, 2022 Allowance Unpaid for Loan Average Interest Principal Recorded Losses Recorded Income Balance Investment Allocated Investment Recognized With an allowance recorded: Consumer $ 24 $ 24 $ 24 79 — Total $ 24 $ 24 $ 24 $ 79 $ — Without an allowance recorded: One-to four-family $ 1,176 $ 899 $ — $ 832 $ 31 CRE 27,984 26,740 — 30,142 1,041 Total $ 29,160 $ 27,639 $ — $ 30,974 $ 1,072 At December 31, 2021 Year ended December 31, 2021 Allowance Unpaid for Loan Average Interest Principal Recorded Losses Recorded Income Balance Investment Allocated Investment Recognized With an allowance recorded: One-to four-family $ 577 $ 447 $ 26 $ 462 $ 21 Consumer 302 302 170 1,766 84 C&I — — — 2,726 — Total $ 879 $ 749 $ 196 $ 4,954 $ 105 Without an allowance recorded: One-to four-family $ 646 $ 499 $ — $ 509 $ 26 CRE 38,518 38,518 — 15,975 325 C&I — — — 77 — Total $ 39,164 $ 39,017 $ — $ 16,561 $ 351 At December 31, 2020 Year ended December 31, 2020 Allowance Unpaid for Loan Average Interest Principal Recorded Losses Recorded Income Balance Investment Allocated Investment Recognized With an allowance recorded: One-to four-family $ 610 $ 480 $ 53 $ 491 $ 19 Consumer 2,197 2,197 1,203 1,503 88 C&I 4,192 4,192 3,662 3,456 — Total $ 6,999 $ 6,869 $ 4,918 $ 5,450 $ 107 Without an allowance recorded: One-to four-family $ 666 $ 519 $ — $ 996 $ 20 CRE 10,345 10,345 — 2,360 38 C&I — — — 951 — Total $ 11,011 $ 10,864 $ — $ 4,307 $ 58 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, loans past due over 90 days and still accruing by class of loans (in thousands): Loans Past Due Over 90 Days At December 31, 2022 Nonaccrual Still Accruing Consumer $ 24 $ — Total $ 24 $ — Loans Past Due Over 90 Days At December 31, 2021 Nonaccrual Still Accruing Commercial real estate $ 9,984 $ — Consumer 37 265 Total $ 10,021 $ 265 Interest income that would have been recorded for the years ended December 31, 2022, 2021 and 2020, had non-accrual loans been current according to their original terms, was immaterial. The following table presents 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 December 31, 2022 Days Days greater due loans Total Commercial real estate $ — $ 24,000 $ — $ 24,000 $ 3,230,508 $ 3,254,508 Commercial & industrial 37 — — 37 908,579 908,616 Construction — — — — 143,693 143,693 Multi-family 8,000 — — 8,000 460,540 468,540 One-to four-family — — — — 53,207 53,207 Consumer 21 — 24 45 24,886 24,931 Total $ 8,058 $ 24,000 $ 24 $ 32,082 $ 4,821,413 $ 4,853,495 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 December 31, 2022 and 2021 were $1.2 million and $1.3 million, respectively, of loans modified as TDRs. The ALLL for TDRs was $0.0 and $26,000 as of December 31, 2022 and 2021, respectively. All TDRs at December 31, 2022 and 2021 were performing in accordance with their restructured terms. During the years ended December 31, 2022 and 2021, there were no payment defaults on any loans previously identified as TDRs. There were no loans modified as a TDR during the years ended December 31, 2022 or 2021. The Company has not committed to lend additional amounts as of December 31, 2022 to customers with outstanding loans that are classified 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 table presents the recorded investment in TDRs by class of loans (in thousands): December 31, 2022 2021 Commercial real estate $ 325 $ 342 One-to four-family 899 946 Total $ 1,224 $ 1,288 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 classified as 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 December 31, 2022 Pass Mention Substandard Doubtful Total Commercial real estate $ 3,192,212 $ 35,881 $ 26,415 $ — $ 3,254,508 Commercial & industrial 876,867 31,749 — — 908,616 Construction 143,693 — — — 143,693 Multi-family 468,540 — — — 468,540 Total $ 4,681,312 $ 67,630 $ 26,415 $ — $ 4,775,357 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 December 31, 2022, the Company had one loan amounting to $20.8 million, or 0.43% of total loans, that was modified in accordance with the COVID-19 Guidance and the CARES Act. As of December 31, 2022, related principal payment deferrals were $20.8 million, or 0.43% of total loans, while none were full payment deferrals. As of December 31, 2021, the Company had 8 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. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
LEASES | NOTE 6 — LEASES The Company leases its corporate office, banking centers and loan production offices. The following tables present the Company’s lease cost and other information related to its operating leases (dollars in thousands): At December 31, 2022 Supplemental balance sheet information: Lease assets $ 44,339 Lease liabilities $ 48,364 Weighted average remaining lease term in years 11 Weighted average discount rate 2.26 % Year Ended December 31, 2022 Operating Lease cost $ 5,405 Cash paid for amount included in the measurement of operating lease liabilities $ 4,864 The following table presents the remaining maturity of lease liabilities as well as the reconciliation of undiscounted lease payments to the discounted operating lease liabilities (in thousands): At December 31, 2022 Lease liabilities maturing in: 2023 $ 5,202 2024 4,976 2025 4,990 2026 5,008 2027 4,632 Thereafter 30,276 Total $ 55,084 Less: Present value discount (6,720) Total lease liabilities $ 48,364 Total rent expense for the year ended December 31, 2021 and 2020 was $4.9 million and $4.7 million, respectively. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | NOTE 7 — PREMISES AND EQUIPMENT Premises and equipment are summarized as follows (in thousands): At December 31, 2022 2021 Furniture and Equipment $ 14,451 $ 13,032 Land, buildings and improvements 13,479 — Leasehold Improvements 20,595 16,266 Total Premises and Equipment 48,525 29,298 Less accumulated depreciation and amortization (16,656) (14,182) Total Premises and Equipment, net $ 31,869 $ 15,116 Depreciation and amortization expense amounted to $2.5 million, $2.4 million and $2.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2022 | |
DEPOSITS | |
DEPOSITS | NOTE 8 — DEPOSITS Deposits consisted of the following (in thousands): At December 31, 2022 2021 Noninterest bearing demand accounts $ 2,422,151 $ 3,668,673 Money market 2,792,554 2,666,983 Savings accounts 11,144 20,930 Time deposits 52,063 78,986 Total deposits $ 5,277,912 $ 6,435,572 Time deposits greater than $250,000 at December 31, 2022 and 2021 were $30.8 million and $39.4 million, respectively. The following table presents the scheduled annual maturities of time deposits (in thousands): At December 31, 2022 2023 $ 37,614 2024 11,263 2025 2,362 2026 349 2027 475 Total time deposits $ 52,063 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
BORROWINGS | |
BORROWINGS | NOTE 9 — BORROWINGS Federal Funds Purchased and FHLB Advances Federal funds purchased and FHLBNY advances consisted of the following (in thousands): Interest expense At December 31, Year Ended December 31, 2022 2021 2022 2021 2020 Federal funds purchased $ 150,000 $ — $ 601 $ — $ — Federal Home Loan Bank of New York advances $ 100,000 $ — $ 292 $ — $ 1,742 Federal funds purchased are generally overnight transactions and had a weighted average interest rate of 4.65% at December 31, 2022. The FHLBNY advances at December 31, 2022 have a maturity date of January 11, 2023 and a fixed interest rate of 4.58%. At December 31, 2022, the Company had available borrowing capacity of $984.4 million at the FHLBNY, and available borrowing capacity of $137.6 million at the FRBNY discount window. Trust Preferred Securities Payable On December 7, 2005, the Company established MetBank Capital Trust I, a Delaware statutory trust (“Trust I”). The Company received all of the common stock of Trust I in exchange for contributed capital of $310,000. Trust I issued $10.0 million of preferred capital securities to investors in a private transaction and invested the proceeds, combined with the proceeds from the sale of Trust I’s common capital securities, in the Company through the purchase of $10.3 million aggregate principal amount of Floating Rate Junior Subordinated Debentures (the “Debentures”) issued by the Company. The Debentures, the sole assets of Trust I, mature on December 9, 2035 and bear interest at a floating rate of three-month LIBOR plus 1.85%. The Debentures are callable at any time. The interest rates were 5.93% and 1.97% as of December 31, 2022 and 2021, respectively. On July 14, 2006, the Company established MetBank Capital Trust II, a Delaware statutory trust (“Trust II”). The Company received all of the common stock of Trust II in exchange for contributed capital of $310,000. Trust II issued $10 million of preferred capital securities to investors in a private transaction and invested the proceeds, combined with the proceeds from the sale of Trust II’s common capital securities, in the Company through the purchase of $10.3 million aggregate principal amount of Floating Rate Junior Subordinated Debentures (the “Debentures II”) issued by the Company. The Debentures II, the sole assets of Trust II, mature on October 7, 2036, and bear interest at a floating rate of three-month LIBOR The Company is not considered the primary beneficiary of these trusts; therefore, the trusts are not consolidated in the Company’s financial statements. Interest on the subordinated debentures may be deferred by the Company at any time or from time to time for a period not exceeding twenty consecutive quarterly payments (5 years), provided there is no event of default. At the end of the deferral period, the Company must pay accrued interest, at which point it may elect a new deferral period provided that no deferral may extend beyond maturity. The investments in the common stock of Trust I and Trust II are included in other assets on the consolidated statements of financial condition. The subordinated debentures may be included in Tier 1 capital (with certain applicable limitations) under current regulatory guidelines and interpretations. Subordinated Debt On March 8, 2017, the Company issued $25.0 million of subordinated notes to accredited institutional investors. The subordinated notes had a maturity date of March 15, 2027 and an interest rate of 6.25% per annum. During the first quarter of 2022, the Company redeemed all of the subordinated debt, plus accrued interest. LIBOR Transition The terms of the trust preferred securities may be impacted by the transition from LIBOR to an alternative U.S. dollar reference interest rate, potentially SOFR, in 2023. The overnight and 1-, 3-, 6- and 12-month USD LIBOR settings will cease to be published or cease to be representative after June 30, 2023. All other LIBOR settings ceased to be published or to be representative as of December 31, 2021. Management is currently evaluating the impact of the transition on the trust preferred securities. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | NOTE 10 — INCOME TAXES Income tax expense consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Current Federal $ 27,311 $ 16,883 $ 10,936 State and local 14,162 12,252 7,226 Total current 41,473 29,135 18,162 Deferred Federal (1,919) (405) 139 State and local (2,081) 285 151 Total deferred (4,000) (120) 290 Total income tax expense $ 37,473 $ 29,015 $ 18,452 Deferred tax assets and liabilities consist of the following (in thousands): At December 31, 2022 2021 Deferred tax assets: Allowance for loan losses $ 13,698 $ 10,670 Lease liabilities 14,782 — Net unrealized loss on securities available for sale 27,084 3,731 Off balance sheet reserves 55 55 Restricted stock 1,140 252 Tangible asset 7 10 Non-qualified stock options 285 286 Other 95 — Total gross deferred tax assets 57,146 15,004 Deferred tax liabilities: Right of use lease asset 13,551 — Depreciation and amortization 4,390 3,229 Net unrealized gain on interest rate cap 3,302 334 Prepaid assets 548 459 Other — 12 Total gross deferred tax liabilities 21,791 4,034 Net deferred tax asset, included in other assets $ 35,355 $ 10,970 The following is a reconciliation of the Company’s statutory federal income tax rate to its effective tax rate (in thousands): For the year ended December 31, 2022 2021 2020 Tax expense/ Tax expense/ Tax expense/ (benefit) Rate (benefit) Rate (benefit) Rate Pretax income at statutory rates $ 20,349 21.00 % $ 18,810 21.00 % $ 12,163 21.00 % State and local taxes, net of federal income tax benefit 9,544 9.85 9,904 11.06 5,828 10.06 Nondeductible expenses 8,175 8.44 680 0.76 457 0.79 Stock options (302) (0.31) — — — — Excess tax deduction on equity awards — — (467) (0.52) (59) (0.10) Tax-exempt income, net (106) (0.11) (51) (0.06) — — Other (187) (0.20) 139 0.15 63 0.11 Effective income tax expense/rate $ 37,473 38.67 % $ 29,015 32.39 % $ 18,452 31.86 % The Company and the Bank filed consolidated Federal, New York State, Connecticut and New York City tax returns in 2022 and 2021. The Company is subject to California, Connecticut, Kentucky, Massachusetts, New Jersey, New York State, New York City, and Tennessee income taxes on a consolidated basis. The Bank is subject to Alabama, Florida, and Missouri income taxes on a separate company basis. As of December 31, 2022 and 2021, there are no unrecognized tax benefits, and the Company does not expect this to significantly change in the next twelve months. Except for California, Connecticut, Kentucky, New York City and Tennessee, the Company is no longer subject to examination by the U.S. federal and state or local tax authorities for years prior to 2019. California is subject to examination for years 2016 and forward. Connecticut, Kentucky and Tennessee are no longer subject to examination for years prior to 2018. As of December 31, 2022, the Company was under audit in New York for the 2018 tax year, and in New York City for the 2017 and 2018 tax years. Due to the New York City audit, the 2017 tax year New York City statute of limitation has been extended to June 30, 2023. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 11 — RELATED PARTY TRANSACTIONS Deposits from principal officers, directors, and their affiliates at December 31, 2022 and 2021 were $4.6 million and $7.3 million, respectively. A promissory note of $780,000 was made to an executive officer of the Company during 2016. The note had a fixed interest rate of 2.1% per annum and interest is payable on the last day of each calendar quarter. The note had a balloon payment term and the due date was August 15, 2021, with no prepayment penalty. The note was extended for the same outstanding balance of $780,000. Under the revised terms of the note, the note has a fixed interest rate of 1.09% per annum and interest is payable on the last day of each calendar quarter, with no prepayment penalty. The note has a balloon payment term and the due date is August, 15, 2026, with no prepayment penalty. The outstanding balance of the subject loan was $780,000 as of December 31, 2022 and 2021. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 12 — 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 December 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: Level 2: Level 3: Assets and Liabilities Measured on a Recurring Basis Instruments measured on a recurring basis include 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 was carried at its 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. At least annually, management conducts due diligence on the independent pricing services to review changes to their pricing methodologies and confirm compliance with various regulatory guidelines including information security guidelines, technology infrastructure and business continuity programs. There are no liabilities that are measured on a recurring basis. Assets and liabilities 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 December 31, 2022 U.S. Government agency securities $ 59,372 $ — $ 59,372 $ — U.S. State and Municipal securities 9,212 — 9,212 — Residential mortgage securities 338,548 — 338,548 — Commercial mortgage securities 34,850 — 34,850 — Asset-backed securities 3,765 — 3,765 — CRA Mutual Fund 2,048 2,048 — — Derivative assets - interest rate cap — — — — 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 2022 or 2021. There were no material assets measured at fair value on a non-recurring basis at December 31, 2022 or December 31, 2021. The Company has engaged an independent pricing service provider to provide the fair values of its financial assets and liabilities not measured at fair value. This provider follows FASB’s exit pricing guidelines, as required by ASC 820 Fair Value Measurement, when calculating the fair market value. Carrying amount and estimated fair values of financial instruments not carried at fair value 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 December 31, 2022 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 26,780 $ 26,780 $ — $ — $ 26,780 Overnight deposits 230,638 230,638 — — 230,638 Securities held-to-maturity 510,425 — 437,290 — 437,290 Loans, net 4,840,523 — — 4,737,007 4,737,007 Other investments FRB Stock 11,421 N/A N/A N/A N/A FHLB Stock 9,191 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 85,605 — — 85,605 85,605 Accrued interest receivable 24,107 — 964 23,143 24,107 Financial Liabilities: Non-interest-bearing demand deposits $ 2,422,151 $ 2,422,151 $ — $ — $ 2,422,151 Money market and savings deposits 2,803,698 2,803,698 — — 2,803,698 Time deposits 52,063 — 51,058 — 51,058 Federal funds purchased 150,000 — 150,000 — 150,000 Federal Home Loan Bank of New York advances 100,000 — 100,000 — 100,000 Trust preferred securities payable 20,620 — — 19,953 19,953 Prepaid debit cardholder balances 10,579 — — 10,579 10,579 Accrued interest payable 728 112 293 323 728 Secured borrowings 7,725 — 7,725 — 7,725 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 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 13 — STOCKHOLDERS’ EQUITY During the third quarter of 2021, the Company issued 2.3 million shares of its common stock at a price of $75 per share, resulting in net proceeds of $162.7 million. The Company had outstanding 272,636 shares of its Series F, Class B non-voting preferred stock, par value, $0.01 per share. The stock was subordinate and junior to all indebtedness of the Company and to all other series of preferred stock of the Company. The holder of the Series F, Class B preferred stock was entitled to receive ratable dividends only if and when dividends were concurrently declared and payable on the shares of common shares. During the fourth quarter of 2021, the holder of the Series F, Class B Preferred Stock exchanged shares of Series F, Class B preferred stock for shares of the Company’s common stock. |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 12 Months Ended |
Dec. 31, 2022 | |
STOCK COMPENSATION PLAN | |
STOCK COMPENSATION PLAN | NOTE 14 — STOCK COMPENSATION PLAN Equity Incentive Plan At December 31, 2022, the Company maintained three stock compensation plans, the 2022 Equity Incentive Plan (the “2022 EIP”), the 2019 Equity Incentive Plan (the “2019 EIP”) and the 2009 Equity Incentive Plan (the “2009 EIP”). The 2019 EIP expired on May 31, 2022 but has outstanding restricted stock awards and PRSUs subject to vesting schedules. The 2009 EIP has also expired but has outstanding stock options that may still be exercised. The 2022 EIP was approved on May 31, 2022 by stockholders of the Company. Under the 2022 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 ISOs and non-qualified stock options, is 358,000, subject to adjustment as set forth in the 2022 EIP, plus any awards that are forfeited under the 2019 EIP after March 15, 2022. Stock Options Under the terms of the 2022 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 2022 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: Year ended December 31, 2022 Weighted Number of Average Options Exercise Price Outstanding, beginning of period 231,000 $ 18.00 Granted — — Exercised (10,800) 18.00 Cancelled/forfeited — — Outstanding, end of period 220,200 $ 18.00 Options vested and exercisable at end of period 220,200 $ 18.00 Weighted average remaining contractual life (years) 1.41 Weighted average intrinsic value $ 40.67 The intrinsic value of exercises was $417,000 and $0.0 for the years ended December 31, 2022 and 2021, respectively. There was no unrecognized compensation cost related to stock options at December 31, 2022 or 2021. There was no compensation cost related to stock options during the year ended December 31, 2022, 2021 or 2020. Restricted Stock Awards and Restricted Stock Units The Company issued restricted stock awards and restricted stock units under the 2019 EIP and the 2009 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, 2021 and 2020, 72,025, 78,582 and 60,307 restricted stock grants were issued to certain key personnel, respectively. One-third of these shares vest each year for three years beginning on March 1, 2023, March 1, 2022, and December 15, 2020, respectively. Total compensation cost that has been charged against income for restricted stock grants was $4.5 million, $2.4 million, and $1.5 million for years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, there was $6.1 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 2.65 years. In January 2022, 11,126 restricted shares were granted to members of the Board of Directors, which vested 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. In the fourth quarter of 2020, 1,785 shares were granted to a new member of the Board of Directors, all of which vested in the fourth quarter of 2021. Total expense for these awards was $300,000, $410,000 and $400,000 for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, there was no unrecognized expense related to these grants. The following table summarizes the changes in the Company’s restricted stock awards: Year ended December 31, 2022 December 31, 2021 December 31, 2020 Weighted Weighted Weighted Average Average Average Number of Grant Date Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Shares Fair Value Outstanding, beginning of period 90,999 $ 47.35 76,289 $ 37.01 104,838 $ 29.86 Granted 83,151 102.49 78,582 50.80 62,092 44.80 Forfeited (578) 92.44 (10,200) 48.09 (31,781) 38.24 Vested (44,010) 37.12 (53,672) 37.57 (58,860) 31.83 Outstanding at end of period 129,562 $ 86.01 90,999 $ 47.35 76,289 $ 37.01 The total fair value of shares vested is $3.6 million, $2.0 million, and $2.1 million for the years ended December 31, 2022, 2021 and 2020, respectively. 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. During the second quarter of 2022, 20,800 PRSUs were forfeited and reissued pursuant to the 2022 EIP. The weighted average service inception date fair value of the outstanding awarded shares was $6.0 million. At the beginning of 2023 and 2022, 29,200 and 30,000 PRSUs, respectively, were vested as all performance criteria were met. The remaining 30,800 PRSUs are scheduled to vest in February 2024, provided certain performance criteria are met in fiscal year 2023. All vested shares will not be delivered until the first quarter of 2024. Total compensation cost that has been charged against income for the PRSUs was $1.9 million, for years ended December 31, 2022 and 2021, respectively. 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. Total compensation cost that has been charged against income for the 2009 Plan was $1.4 million for the year ended December 31, 2020. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2022 | |
EMPLOYEE BENEFIT PLAN | |
EMPLOYEE BENEFIT PLAN | NOTE 15 — EMPLOYEE BENEFIT PLAN The Company has a 401(k) plan for eligible employees. The contribution for any participant may not exceed the maximum amount allowable by law. Each year, the Company may elect to match a percentage of participant contributions. The Company may also elect each year to make additional discretionary contributions to the plan. The total contributions were $889,000 and $774,000 for the years ended December 31, 2022 and 2021, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 — COMMITMENTS AND CONTINGENCIES 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 counterparty 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 (in thousands): At December 31, 2022 At December 31, 2021 Fixed Variable Fixed Variable Rate Rate Rate Rate Unused commitments $ 40,685 $ 364,908 $ 39,676 $ 346,115 Standby and commercial letters of credit 53,947 — 49,988 — $ 94,632 $ 364,908 $ 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. As of December 31, 2022 and 2021, the Company’s fixed rate loan commitments are to make loans with interest rates ranging from 3.0% to 8.5%. At December 31, 2022 and 2021, the Company’s variable rate loan commitments had interest rates ranging from 6.0% to 11.5%, respectively, 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 $53.9 million and $50.0 million as of December 31, 2022 and 2021, respectively. The Company’s stand-by letters of credit are collateralized by interest-bearing accounts of $28.7 million and $29.6 million as of December 31, 2022 and 2021, respectively. Regulatory Proceedings There are ongoing investigations by federal and state governmental entities concerning a prepaid debit card product program that was offered by the Company through an independent program manager. These include investigations as to which the Company is a subject by the FRB and certain state authorities, including the NYSDFS. During the early stages of the COVID-19 pandemic, third parties used this prepaid debit card product to establish unauthorized accounts and to receive unauthorized government benefits payments, including unemployment insurance benefits payments made pursuant to the CARES Act from many states. The Company ceased accepting new accounts from this program manager in July of 2020 and has exited its relationship with this program manager. The Company is cooperating in these investigations and continues to review this matter. The foregoing could result in enforcement or other actions against the Company and the Bank including civil money penalties and remedial measures. The Company is in discussions with the FRB and the NYSDFS with respect to consensual resolutions of their investigations. Although the Company is unable at this time to determine the final terms on which the FRB and NYSDFS investigations will be resolved or the timing of such resolutions, the Company accrued a charge of $35.0 million during the fourth quarter of 2022 to establish a reserve for what the Company believes is a reasonable estimate of the probable loss and expenses associated with the FRB and NYSDFS settlements. If final settlements with the FRB and the NYSDFS are not reached and the FRB and the NYSDFS bring public enforcement actions, such actions and their resolution, as well as any other matter arising out of the foregoing program, could have a materially adverse effect on the Company and the Bank’s assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations. |
REGULATORY CAPITAL
REGULATORY CAPITAL | 12 Months Ended |
Dec. 31, 2022 | |
REGULATORY CAPITAL | |
REGULATORY CAPITAL | NOTE 17 — REGULATORY CAPITAL The Company and Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. At December 31, 2022 and 2021, the Company and the Bank met all applicable regulatory capital requirements to be considered “well capitalized” under regulatory guidelines. The Company and Bank manage their capital to comply with their internal planning targets and regulatory capital standards administered by federal banking agencies. The Company and Bank review capital levels on a monthly basis. The Company and the Bank are subject to the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules). The minimum required capital conservation buffer was 2.50% at December 31, 2022 and December 31, 2021. As of December 31, 2022 and 2021, the capital conservation buffer for the Company was 5.4% and 8.1%, respectively. As of December 31, 2022 and 2021, the capital conservation buffer for the Bank was 5.1% and 7.3%, respectively. The net unrealized gain or loss on AFS securities is not included in the computation of the regulatory capital. The Company and the Bank meet all capital adequacy requirements, to which they are subject, as of December 31, 2022 and 2021. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2022 and 2021, the most recent regulatory notifications categorized the Bank and the Company as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The following is a summary of actual capital amounts and ratios for the Company and the Bank compared to the requirements for minimum capital adequacy and classification as well capitalized. Actual and required capital amounts and ratios are presented below at year end (dollars in thousands): For To be Well Minimum Capital Capitalized under Capital Adequacy Prompt Corrective Conservation Actual Purposes Action Regulations Buffer Amount Ratio Amount Ratio Amount Ratio Ratio At December 31, 2022 The Company Tier 1 leverage ratio (Tier 1 capital to average assets) $ 641,082 10.2 % $ 250,963 4.0 % $ N/A N/A — % Tier 1 common equity (to risk-weighted assets) $ 620,462 12.1 % $ 230,879 4.5 % $ N/A N/A 2.5 % Tier 1 capital (to risk-weighted assets) $ 641,082 12.5 % $ 307,838 6.0 % $ N/A N/A 2.5 % Total capital (to risk-weighted assets) $ 686,139 13.4 % $ 410,451 8.0 % $ N/A N/A 2.5 % The Bank Tier 1 leverage ratio (Tier 1 capital to average assets) $ 628,825 10.0 % $ 250,920 4.0 % $ 313,650 5.0 % — % Tier 1 common equity (to risk-weighted assets) $ 628,825 12.3 % $ 230,815 4.5 % $ 333,399 6.5 % 2.5 % Tier 1 capital (to risk-weighted assets) $ 628,825 12.3 % $ 307,753 6.0 % $ 410,337 8.0 % 2.5 % Total capital (to risk-weighted assets) $ 673,876 13.1 % $ 410,337 8.0 % $ 512,922 10.0 % 2.5 % At December 31, 2021 The Company Tier 1 leverage ratio (Tier 1 capital to average assets) $ 575,380 8.5 % $ 270,863 4.0 % $ N/A N/A — % Tier 1 common equity (to risk-weighted assets) $ 554,760 14.1 % $ 177,646 4.5 % $ N/A N/A 2.5 % Tier 1 capital (to risk-weighted assets) $ 575,380 14.6 % $ 236,861 6.0 % $ N/A N/A 2.5 % Total capital (to risk-weighted assets) $ 635,002 16.1 % $ 315,815 8.0 % $ N/A N/A 2.5 % The Bank Tier 1 leverage ratio (Tier 1 capital to average assets) $ 566,835 8.4 % $ 270,800 4.0 % $ 338,499 5.0 % — % Tier 1 common equity (to risk-weighted assets) $ 566,835 14.4 % $ 177,582 4.5 % $ 256,508 6.5 % 2.5 % Tier 1 capital (to risk-weighted assets) $ 566,835 14.4 % $ 236,777 6.0 % $ 315,702 8.0 % 2.5 % Total capital (to risk-weighted assets) $ 601,740 15.2 % $ 315,702 8.0 % $ 394,628 10.0 % 2.5 % As a result of the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018, banking regulatory agencies adopted a revised definition of “well capitalized” for financial institutions and holding companies with assets of less than $10.0 billion and that are not determined to be ineligible by their primary federal regulator due to their risk profile (a “Qualifying Community Bank”). The definition expanded the ways that a Qualifying Community Bank may meet its capital requirements and be deemed “well capitalized.” The rule established a community bank leverage ratio (“CBLR”) equal to the tangible equity capital divided by the average total consolidated assets. Regulators established the CBLR at 8.5% through calendar year 2021 and 9% thereafter. The CARES Act temporarily reduced the CBLR to 8%. A Qualifying Community Bank that maintains a leverage ratio greater than 9% is considered to be well capitalized and to have met generally applicable leverage capital requirements, generally applicable risk-based capital requirements, and any other capital or leverage requirements to which such financial institution or holding company is subject. The Company and Bank intend to continue to measure capital adequacy using the ratios in the table above. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 18 — EARNINGS PER COMMON 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 stockholders for the period are allocated between common stockholders 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). Year Ended December 31, 2022 2021 2020 Basic Net income per consolidated statements of income $ 59,425 $ 60,555 $ 39,466 Less: Earnings allocated to participating securities (141) (739) (344) Net income available to common stockholders $ 59,284 $ 59,816 $ 39,122 Weighted average common shares outstanding including participating securities 10,955,077 9,123,037 8,293,677 Less: Weighted average participating securities (26,056) (111,337) (72,248) Weighted average common shares outstanding 10,929,021 9,011,700 8,221,429 Basic earnings per common share 5.42 6.64 4.76 Diluted Net income allocated to common stockholders $ 59,284 $ 59,816 $ 39,122 Weighted average common shares outstanding for basic earnings per common share 10,929,021 9,011,700 8,221,429 Add: Dilutive effects of assumed exercise of stock options 170,648 170,792 103,463 Add: Dilutive effects of assumed vesting of performance based restricted stock 56,711 51,581 73,552 Add: Dilutive effects of assumed vesting of restricted stock units 43,804 38,749 — Average shares and dilutive potential common shares 11,200,184 9,272,822 8,398,444 Dilutive earnings per common share $ 5.29 $ 6.45 $ 4.66 All stock options and performance based restricted stock units were considered in computing diluted earnings per common share for the years ended December 31, 2022, 2021 and 2020. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 19 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in Accumulated Other Comprehensive Income (Loss) balances, net of tax effects at the dates indicated (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ (7,504) $ 973 $ 1,207 Other comprehensive income, net of tax Unrealized gain (loss) on AFS securities: Unrealized holding gain (loss) arising during the period (76,934) (14,722) 4,877 Reclassification adjustment for (gain) loss included in net income — (609) (3,286) Tax effect 23,353 4,795 (514) Net of tax (53,581) (10,536) 1,077 Unrealized gain (loss) on cash flow hedges: Unrealized holding gain (loss) arising during the period 11,704 2,957 (1,925) Reclassification adjustment for gain included in net income (1,949) — — Tax effect (2,968) (898) 614 Net of tax 6,787 2,059 (1,311) Net current period other comprehensive income (loss) (46,794) (8,477) (234) Ending balance $ (54,298) $ (7,504) $ 973 The proceeds from sales and calls of securities during the years ended December 31, 2022, 2021 and 2020 were $0.0, $43.2 million and $141.4 million, respectively. The following table shows the amounts reclassified out of each component of accumulated other comprehensive income for the gain on the sale of securities (in thousands): Affected line item in the Consolidated Statements Year Ended December 31, of Operations 2022 2021 2020 Realized gain on sale of AFS securities $ — $ 609 $ 3,286 Gain on Sale of Securities Income tax (expense) benefit — (197) (1,036) Income tax expense Total reclassifications, net of income tax $ — $ 412 $ 2,250 Realized gain on cash flow hedges $ 1,949 $ — $ — Licensing fees Income tax (expense) benefit (599) — — Income tax expense Total reclassifications, net of income tax $ 1,350 $ — $ — |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 20 – REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers that are in the scope of ASC 606, Revenue from Contracts with Customers are recognized in non-interest income. The following table presents the Company’s revenue from contracts with customers (in thousands): Year ended December 31, 2022 2021 2020 Service charges on deposit accounts $ 5,747 $ 4,755 $ 3,728 Global Payments Group revenue 19,341 16,445 8,464 Other service charges and fees 1,763 1,950 1,477 Total $ 26,851 $ 23,150 $ 13,669 A description of the Company’s revenue streams accounted for under the accounting guidance 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 letter of credit fees and 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 | 12 Months Ended |
Dec. 31, 2022 | |
DERIVATIVES | |
DERIVATIVES | NOTE 21 – 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 had a notional amount of $300.0 million and a contractual maturity of March 1, 2025. The notional amount of the interest rate cap does not represent the amount exchanged by the parties. The amount exchanged was determined by reference to the notional amount and the other terms of the contract. The interest rate subject to the cap was 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 2022 until it was terminated in the third quarter of 2022. The unrecognized value of $12.7 million at termination will be released from Accumulated Other Comprehensive Income and recorded as a credit to Licensing fees expense through March 2025. The following tables reflect the derivatives recorded on the balance sheet (in thousands): Notional Fair Amount Value At December 31, 2022 Derivatives designated as hedges: Interest rate caps related to customer deposits $ — $ — Total included in Other Assets $ — $ — 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): Year ended December 31, 2022 2021 2020 Interest rate caps related to customer deposits Amount of gain (loss) recognized in OCI, net of tax $ 8,131 $ 2,059 $ (1,311) Amount of gain (loss) reclassified from OCI into income $ 1,949 $ — $ — Location of gain (loss) reclassified from OCI into income Licensing fees N/A N/A |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 22 – SUBSEQUENT EVENTS None. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
PARENT COMPANY FINANCIAL INFORMATION | |
PARENT COMPANY FINANCIAL INFORMATION | NOTE 23 — PARENT COMPANY FINANCIAL INFORMATION Condensed financial information for the Company (parent company only) is as follows (in thousands): Condensed Statements of Financial Condition At December 31, 2022 2021 Assets Cash and due from banks $ 9,476 $ 32,328 Loans, net of allowance for loan losses 776 776 Investments 620 620 Investment in subsidiary bank, at equity 584,522 569,327 Other assets 1,520 6 Total assets 596,914 603,057 Liabilities and Stockholders’ Equity Trust preferred securities 20,620 20,620 Subordinated debt payable, net of issuance costs — 24,712 Other liabilities 397 736 Total liabilities 21,017 46,068 Stockholders’ Equity Preferred stock — — Common stock 109 109 Surplus 389,276 382,999 Retained earnings 240,810 181,385 Accumulated other comprehensive income (loss), net of tax (54,298) (7,504) Total equity 575,897 556,989 Total liabilities and stockholders’ equity $ 596,914 $ 603,057 Condensed Statements of Operations Year Ended December 31, 2022 2021 2020 Income Loans $ 9 $ 14 $ 17 Securities and money market funds 25 13 18 Total interest income 34 27 35 Interest expense Trust preferred securities 823 438 590 Subordinated debt 605 1,618 1,618 Total interest expense 1,428 2,056 2,208 Net interest expense (1,394) (2,029) (2,173) Provision for loan losses — — — Net interest expense after provision for loan losses (1,394) (2,029) (2,173) Other expense 2,767 1,288 2,338 Loss before undistributed earnings of subsidiary bank (4,161) (3,317) (4,511) Equity in undistributed earnings of subsidiary bank 62,357 62,798 42,844 Income before income tax benefit 58,196 59,481 38,333 Income tax benefit 1,229 1,074 1,133 Net income $ 59,425 $ 60,555 $ 39,466 Comprehensive income $ 12,631 $ 52,078 $ 39,232 Condensed Statement of Cash Flows Year Ended December 31, 2022 2021 2020 Cash Flows From Operating Activities Net income $ 59,425 $ 60,555 $ 39,466 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Undistributed earnings of subsidiary bank (62,357) (58,798) (42,844) Cash dividend from subsidiary bank — 4,000 — Other operating adjustments 6,351 (746) 2,438 Net cash provided by (used in) operating activities 3,419 5,011 (940) Cash Flows From Investing Activities Investments in subsidiary bank — (132,000) — Net cash provided by (used in) investing activities — (132,000) — Cash Flows From Financing Activities Redemption of common stock for tax withholdings for restricted stock vesting (1,559) (3,385) (881) Redemption of subordinated notes (24,712) — — Proceeds from issuance of common stock, net — 162,687 — Net cash provided by (used in) financing activities (26,271) 159,302 (881) Increase (decrease) in cash and cash equivalents (22,852) 32,313 (1,821) Cash and cash equivalents, beginning of year 32,328 15 1,836 Cash and cash equivalents, end of year $ 9,476 $ 32,328 $ 15 |
UNAUDITED QUARTERLY FINANCIAL D
UNAUDITED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2022 | |
UNAUDITED QUARTERLY FINANCIAL DATA | |
UNAUDITED QUARTERLY FINANCIAL DATA | UNAUDITED QUARTERLY FINANCIAL DATA Selected Consolidated Quarterly Financial Data (dollars, except per share amounts, in thousands) 2022 Quarter Ended December 31 September 30 June 30 March 31 Interest income $ 80,554 $ 70,057 $ 59,158 $ 50,970 Interest expense 16,655 6,732 3,856 4,338 Net interest income 63,899 63,325 55,302 46,632 Provision for loan losses 2,309 2,007 2,400 3,400 Net interest income after provision for loan losses 61,590 61,318 52,902 43,232 Non-interest income 6,350 5,818 6,998 7,427 Non-interest expense 66,659 31,190 26,269 24,619 Income before income taxes 1,281 35,946 33,631 26,040 Income tax expense 9,021 10,991 10,442 7,019 Net income (loss) $ (7,740) $ 24,955 $ 23,189 $ 19,021 Basic earnings (loss) per common share $ (0.71) $ 2.28 $ 2.12 $ 1.74 Diluted earnings (loss) per common share $ (0.71) $ 2.23 $ 2.07 $ 1.69 2021 Quarter Ended December 31 September 30 June 30 March 31 Interest income $ 49,110 $ 45,018 $ 41,050 $ 38,106 Interest expense 4,300 4,226 4,077 3,680 Net interest income 44,810 40,792 36,973 34,426 Provision for loan losses 501 490 1,875 950 Net interest income after provision for loan losses 44,309 40,302 35,098 33,476 Non-interest income 7,057 5,891 6,156 4,593 Non-interest expense 23,314 21,984 21,689 20,325 Income before income taxes 28,052 24,209 19,565 17,744 Income tax expense 9,165 7,994 6,229 5,627 Net income (loss) $ 18,887 $ 16,215 $ 13,336 $ 12,117 Basic earnings (loss) per common share $ 1.74 $ 1.82 $ 1.59 $ 1.46 Diluted earnings (loss) per common share $ 1.69 $ 1.77 $ 1.55 $ 1.43 |
SUMMARY OF RECENT ACCOUNTING _2
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS | |
Use of Estimates | Use of Estimates In preparing the 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. 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. |
Cash Flows | Cash Flows Cash and cash equivalents are defined as cash on hand and amounts due from banks and money market funds. Net cash flows are reported for customer loan and deposit transactions, and other investments. |
Securities | Securities Debt securities are classified as HTM and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as AFS when they might be sold before maturity. Securities classified as AFS are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized using the level yield method without anticipating prepayments, except for MBS where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Gains and losses on sales of securities are recognized in the consolidated statements of operations upon sale. Management evaluates AFS and HTM securities for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the statement of operations and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. |
Receivable from Global Payments Business, Net | Receivable from Global Payments Business, Net Receivables from the global payments business are predominantly related to prepaid credit card programs. |
Revenue Recognition | Revenue Recognition Any revenues from contracts with customers, which are not exempt from the accounting requirements under ASC 606, Revenue from Contracts with Customers, are accounted for using the five-step method prescribed by the ASC. These revenue items are debit card income, service charges on deposit accounts and other service charges. In accordance with the ASC, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these services. The Company applies the following five steps to properly recognize revenue: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The majority of the Company’s revenue is derived from interest income on loans, which is not subject to the ASC. |
Licensing Fees | Licensing Fees Licensing fees on certain deposit accounts held by bankruptcy trustees are expensed as incurred. These accounts require the use of a software interface provided by a third party. Bankruptcy accounts subject to the licensing fees amounted to $425.3 million and $934.3 million at December 31, 2022 and 2021, respectively. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Transfers of financial assets that do not meet the criteria to be accounted for as sales are recorded as secured borrowings. |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances, adjusted for any charge-offs, and any deferred fees or costs on originated loans. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The ALLL is maintained at an amount management deems adequate to cover probable incurred credit losses. In determining the level to be maintained, management evaluates many factors, including current economic trends, industry experience, historical loss experience, loan concentrations, the borrower’s ability to repay and repayment performance and estimated collateral values. Loan losses are charged-off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the ALLL. A loan is considered to be impaired when it is probable that the Company will be unable to collect all principal and interest amounts according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. If a loan is impaired, impairment is measured at the present value of estimated future cash flows using the loan’s effective interest rate or at the fair value of collateral if repayment is expected solely from the collateral. All commercial and CRE loans are individually evaluated for credit risk at least annually, and all classified loans are individually evaluated for impairment quarterly. Large groups of smaller balance homogenous loans such as residential real estate loans are collectively evaluated for impairment, and accordingly, are not separately evaluated for impairment disclosures unless an individual loan is classified. The allowance for non-impaired loans is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over a rolling two-year period. This actual loss experience is supplemented with other qualitative and economic factors based on the risks present for each portfolio segment. These qualitative and economic factors include economic and business conditions, the nature and volume of the portfolio, and lending terms and volume and severity of past due loans. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary, based on changes in economic conditions or any other factors used in management’s determination. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL. When a loan is modified and concessions have been made to the original contractual terms, such as reductions in interest rate or deferral of interest or principal payments, due to the borrower’s financial condition, the modification is known as a TDR. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. On March 22, 2020, the banking regulators and the FASB issued guidance to financial institutions who were working with borrowers affected by COVID-19 (the “COVID-19 Guidance”). The COVID-19 Guidance indicated that regulatory agencies will not criticize institutions for working with borrowers and will not direct banks to automatically categorize all COVID-19 related loan modifications as TDRs. In addition, the COVID-19 Guidance noted that modification or deferral programs mandated by the federal or a state government related to COVID-19 would not be in the scope of Accounting Standards Codification Subtopic 310-40 – Receivables – Troubled Debt Restructurings by Creditors (“ASC 310-40”), such as state programs that require all institutions within that state to suspend mortgage payments for a specified period. On March 27, 2020, the CARES Act was signed into law. Section 4013 of the CARES Act, “Temporary Relief from Troubled Debt Restructurings,” allowed banks to temporarily suspend certain requirements under GAAP related to TDRs for a limited period that ended on January 1, 2022. During this period, a bank may have elected to account for modifications on certain loans under Section 4013 of the CARES Act or, if a loan modification is not eligible under Section 4013, a bank may use the criteria in the COVID-19 Guidance to determine when a loan modification is not a TDR in accordance with ASC 310-40. Interest income on loans is accrued and credited to operations based upon the principal amounts outstanding. Loans are normally placed on non-accrual when a loan is determined to be impaired or when principal or interest is delinquent for 90 days or more. Delinquent status is based on the contractual terms of the loan. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on such loans are applied as a reduction of the loan principal balance when the collectability of principal, wholly or partially, is in doubt. Interest payments received may be deferred on non-accrual loans in which the principal balance is deemed to be collectible. Interest income is recognized when all the principal and interest amounts contractually due are brought current and the loans are returned to accrual status. The following portfolio segments have been identified: CRE loans, Construction loans, Multi-Family loans, One-to Four -Family loans, C&I, and Consumer loans. The risk characteristics of each of the identified portfolio segments are as follows: Commercial Real Estate — Construction — construction phase, a number of factors could result in delays and cost overruns. If the estimate of construction costs proves to be inaccurate, additional funds may be required to be advanced in excess of the amount originally committed to permit completion of the building. If the estimate of value proves to be inaccurate, the value of the building may be insufficient to assure full repayment if liquidation is required. If foreclosure is required on a building before or at completion due to a default, there can be no assurance that all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs will be recovered. Multi-family — One-to Four-Family — Commercial & Industrial — Consumer — |
Goodwill | Goodwill Goodwill and certain other intangibles generally arise from business combinations accounted for under the purchase method of accounting. Goodwill and other intangibles deemed to have indefinite lives generated from business combinations are not subject to amortization and are instead tested for impairment not less than annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. The Company changed its annual goodwill impairment testing date from December 31 to October 1 to better align with the timing of our annual planning process. Accordingly, management determined that the change in accounting principle is preferable under the circumstance. This change has been applied starting with the October 1, 2022 impairment test. This change was not material to our consolidated financial statements as it did not delay, accelerate, or avoid any potential goodwill impairment charges. The goodwill of $9.7 million is associated with a purchase of the prepaid third-party debit card business. Based on the Company’s annual impairment assessments no impairment of goodwill existed as of October 1, 2022 or December 31, 2021. |
Stock-Based Compensation | Stock-Based Compensation Compensation cost is recognized for stock options, restricted stock awards and restricted stock units, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of options. The market price of the Company’s common stock at the date of grant is used for restricted stock awards and restricted stock units. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with time-based vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company also awards PRSUs to employees. The PRSUs are classified as either equity or a liability, depending on certain criteria provided in ASC 718, Stock Based Compensation. This classification affects whether the measurement of fair value is fixed (i.e., measured only once) on the grant date or whether fair value will be remeasured each reporting period until settled. On the grant date, the estimate of equity-classified awards’ fair value would be fixed, the cumulative amount of previously recognized compensation cost would be adjusted, and the Company would no longer have to remeasure the award. If the award is liability-classified, the awards would continue to be marked to fair value each reporting period until settlement. The Company recognizes compensation cost for awards with performance conditions if and when it concludes that it is probable that the performance conditions will be achieved. The Company assesses the probability of vesting (i.e., that the performance conditions will be met) at each reporting period and, if required, adjusts compensation cost based on its probability assessment. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of temporary cash investments including due from banks, interest-bearing deposits with banks and real estate loans receivable. A significant portion of real estate loans are collateralized by property in the New York Metropolitan area. The ultimate collectability of these loans may be susceptible to changes in the real estate market in this area. |
Leases | Leases As of December 31, 2022, the Company follows ASC 842, Leases. The Company’s real estate leases are recognized as operating leases. The related ROU lease assets and liabilities are recognized to reflect our right to use the underlying assets and contractual obligations associated with future rent payments. ROU assets are included in other assets and lease liabilities are included in other liabilities on the consolidated statements of financial condition. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. On a periodic basis, ROU assets are assessed for impairment and an impairment loss would be recognized if the carrying amount of the ROU asset is not recoverable. See “NOTE 3 — SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS, Prior to 2022, operating leases were not recognized on the Company’s consolidated statements of financial condition. Operating lease expense for lease payments were recognized on a straight-line basis over the lease term in the Company’s consolidated statements of operations. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed over the estimated useful lives of the assets by the straight-line method with useful lives ranging from three |
Other Investments | Other Investments Other investments include FRB and FHLB stock. The Company is a member of the FRB and the FHLB system. FHLB members are required to own membership stock and purchase activity-based stock that is based on the level of outstanding borrowings. FRB and FHLB stock are carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Company held FRB and FHLB stock of $11.4 million and $9.2 million, respectively, as of December 31, 2022. As of December 31, 2021, the Company held FRB and FHLB stock of $7.4 million and $3.1 million, respectively. Other investments also include a $1.0 million investment in The Disability Opportunity Fund, which is an equity equivalent investment in a community development financial institution. |
Derivatives | Derivatives During 2020, the Company entered into an interest rate cap derivative that, based on the Company’s intentions and belief as to the likely effectiveness as a hedge, was designated as a cash flow hedge. A cash flow hedge is a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in accumulated other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of the derivative that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. The amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedged transactions at the inception of the hedging relationship. The documentation includes linking the cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions or group of forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, or treatment of the derivative as a hedge is no longer appropriate or intended. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were in accumulated other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. If the forecasted transaction is deemed probable to not occur, the derivative gain or loss reported in accumulated other comprehensive income is reclassified into current earnings. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses and reclassification to earnings related to AFS securities and unrealized gain (loss) related to the cash flow hedges. |
Restrictions on Cash | Restrictions on Cash Cash on hand or on deposit with the FRB to meet regulatory reserve and clearing requirements was $226.7 million and $2.3 billion as of December 31, 2022 and 2021, respectively. Also included in cash was $13.3 million and $10.8 million of cash held in escrow and collateral accounts for third-party debit card program managers at December 31, 2022 and 2021, respectively. Additionally, there was $693,000 and $683,000 of cash pledged for a related collateral account at December 31, 2022 and 2021, respectively. |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding during the applicable period, including outstanding participating securities. Diluted earnings per common share is computed using the weighted average number shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. Unvested share-based awards and preferred shares that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. |
Income Taxes | Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. A valuation allowance is recorded, as necessary, to reduce deferred tax assets to an estimated amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of liquid markets for certain items. Changes in assumptions or in market conditions could significantly affect the estimates. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
Reclassifications | Reclassifications 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. |
Operating segments | Operating segment While department heads monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENT SECURITIES | |
Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity | The following tables summarizes the amortized cost and fair value of AFS and HTM debt securities 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 recognized in earnings (in thousands): Gross Gross Unrealized/ Unrealized/ Amortized Unrecognized Unrecognized At December 31, 2022 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,996 $ — $ (8,624) $ 59,372 U.S. State and Municipal securities 11,649 — (2,437) 9,212 Residential MBS 413,998 279 (75,729) 338,548 Commercial MBS 37,069 10 (2,229) 34,850 Asset-backed securities 3,953 — (188) 3,765 Total securities available-for-sale $ 534,665 $ 289 $ (89,207) $ 445,747 Held-to-Maturity Securities: U.S. Treasury securities $ 29,852 $ — $ (2,223) $ 27,629 U.S. State and Municipal securities 15,814 — (2,609) 13,205 Residential MBS 456,648 — (67,027) 389,621 Commercial MBS 8,111 — (1,276) 6,835 Total securities held-to-maturity $ 510,425 $ — $ (73,135) $ 437,290 Equity Investments: CRA Mutual Fund $ 2,358 $ — $ (310) $ 2,048 Total equity investment securities $ 2,358 $ — $ (310) $ 2,048 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 proceeds from sales and calls of securities and associated gains | The following table summarizes the proceeds and associated gains and (losses) from sales and calls of securities (in thousands): Year ended December 31, 2022 2021 2020 Proceeds $ — $ 43,241 $ 141,422 Gross gains $ — $ 609 $ 3,286 Tax impact $ — $ (197) $ (1,036) |
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 December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 29,852 27,630 54,736 48,959 After 5 years through 10 years 9,505 8,130 36,043 32,872 After 10 years 471,068 401,530 443,886 363,916 Total Securities $ 510,425 $ 437,290 $ 534,665 $ 445,747 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 through 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/unrecognized 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 December 31, 2022 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: U.S. Government agency securities $ — $ — $ 59,372 $ (8,624) $ 59,372 $ (8,624) U.S. State and Municipal securities 2,546 (527) 6,666 (1,910) 9,212 (2,437) Residential MBS 19,576 (1,654) 305,936 (74,075) 325,512 (75,729) Commercial MBS 13,406 (198) 11,386 (2,031) 24,792 (2,229) Asset-backed securities — — 3,765 (188) 3,765 (188) Total securities available-for-sale $ 35,528 $ (2,379) $ 387,125 $ (86,828) $ 422,653 $ (89,207) Held-to-Maturity Securities: U.S. Treasury securities $ 18,683 $ (1,365) $ 8,946 $ (858) $ 27,629 $ (2,223) U.S. State and Municipal securities 13,205 (2,609) — — 13,205 (2,609) Residential MBS 162,960 (19,625) 226,661 (47,402) 389,621 (67,027) Commercial MBS — — 6,835 (1,276) 6,835 (1,276) Asset-backed securities — — — — — — Total securities held-to-maturity $ 194,848 $ (23,599) $ 242,442 $ (49,536) $ 437,290 $ (73,135) 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: 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) 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) Total securities available-for-sale $ 477,140 $ (11,075) $ 53,509 $ (1,751) $ 530,649 $ (12,826) Held-to-Maturity Securities: U.S. Treasury securities $ 9,697 $ (43) $ — $ — $ 9,697 $ (43) Residential MBS 301,896 (2,259) — — 301,896 (2,259) Commercial MBS 8,039 (99) — — 8,039 (99) Total securities held-to-maturity $ 319,632 $ (2,401) $ — $ — $ 319,632 $ (2,401) |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LOANS | |
Schedule of Net loans | Loans, net of deferred fees and costs, consist of the following (in thousands): At December 31, 2022 2021 Real estate Commercial $ 3,254,508 $ 2,488,382 Construction 143,693 151,791 Multi-family 468,540 355,290 One-to four-family 53,207 57,163 Total real estate loans 3,919,948 3,052,626 Commercial and industrial 908,616 654,535 Consumer 24,931 32,366 Total loans 4,853,495 3,739,527 Deferred fees, net of origination costs (12,972) (7,598) Loans, net of deferred fees and costs 4,840,523 3,731,929 Allowance for loan losses (44,876) (34,729) Net loans $ 4,795,647 $ 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- Year ended December 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 7,280 2,540 (122) 667 (35) (214) 10,116 Loans charged-off — — — — — — — Recoveries — 26 — — — 5 31 Total ending allowance balance $ 29,496 $ 10,274 $ 1,983 $ 2,823 $ 105 $ 195 $ 44,876 Commercial Commercial One-to four- Year ended December 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 4,973 24 512 (505) (66) (1,122) 3,816 Loans charged-off — (4,764) — — — (55) (4,819) Recoveries — 325 — — — — 325 Total ending allowance balance $ 22,216 $ 7,708 $ 2,105 $ 2,156 $ 140 $ 404 $ 34,729 |
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 December 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 29,496 10,274 1,983 2,823 105 171 44,852 Total ending allowance balance $ 29,496 $ 10,274 $ 1,983 $ 2,823 $ 105 $ 195 $ 44,876 Loans: Individually evaluated for impairment $ 26,740 $ — $ — $ — $ 899 $ 24 $ 27,663 Collectively evaluated for impairment 3,227,768 908,616 143,693 468,540 52,308 24,907 4,825,832 Total ending loan balance $ 3,254,508 $ 908,616 $ 143,693 $ 468,540 $ 53,207 $ 24,931 $ 4,853,495 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 (in thousands). The recorded investment in loans excludes accrued interest receivable and loan origination fees. At December 31, 2022 Year ended December 31, 2022 Allowance Unpaid for Loan Average Interest Principal Recorded Losses Recorded Income Balance Investment Allocated Investment Recognized With an allowance recorded: Consumer $ 24 $ 24 $ 24 79 — Total $ 24 $ 24 $ 24 $ 79 $ — Without an allowance recorded: One-to four-family $ 1,176 $ 899 $ — $ 832 $ 31 CRE 27,984 26,740 — 30,142 1,041 Total $ 29,160 $ 27,639 $ — $ 30,974 $ 1,072 At December 31, 2021 Year ended December 31, 2021 Allowance Unpaid for Loan Average Interest Principal Recorded Losses Recorded Income Balance Investment Allocated Investment Recognized With an allowance recorded: One-to four-family $ 577 $ 447 $ 26 $ 462 $ 21 Consumer 302 302 170 1,766 84 C&I — — — 2,726 — Total $ 879 $ 749 $ 196 $ 4,954 $ 105 Without an allowance recorded: One-to four-family $ 646 $ 499 $ — $ 509 $ 26 CRE 38,518 38,518 — 15,975 325 C&I — — — 77 — Total $ 39,164 $ 39,017 $ — $ 16,561 $ 351 At December 31, 2020 Year ended December 31, 2020 Allowance Unpaid for Loan Average Interest Principal Recorded Losses Recorded Income Balance Investment Allocated Investment Recognized With an allowance recorded: One-to four-family $ 610 $ 480 $ 53 $ 491 $ 19 Consumer 2,197 2,197 1,203 1,503 88 C&I 4,192 4,192 3,662 3,456 — Total $ 6,999 $ 6,869 $ 4,918 $ 5,450 $ 107 Without an allowance recorded: One-to four-family $ 666 $ 519 $ — $ 996 $ 20 CRE 10,345 10,345 — 2,360 38 C&I — — — 951 — Total $ 11,011 $ 10,864 $ — $ 4,307 $ 58 |
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, loans past due over 90 days and still accruing by class of loans (in thousands): Loans Past Due Over 90 Days At December 31, 2022 Nonaccrual Still Accruing Consumer $ 24 $ — Total $ 24 $ — Loans Past Due Over 90 Days At December 31, 2021 Nonaccrual Still Accruing Commercial real estate $ 9,984 $ — Consumer 37 265 Total $ 10,021 $ 265 |
Schedule of aging of the recorded investment in past due loans by class of loans | The following table presents 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 December 31, 2022 Days Days greater due loans Total Commercial real estate $ — $ 24,000 $ — $ 24,000 $ 3,230,508 $ 3,254,508 Commercial & industrial 37 — — 37 908,579 908,616 Construction — — — — 143,693 143,693 Multi-family 8,000 — — 8,000 460,540 468,540 One-to four-family — — — — 53,207 53,207 Consumer 21 — 24 45 24,886 24,931 Total $ 8,058 $ 24,000 $ 24 $ 32,082 $ 4,821,413 $ 4,853,495 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 | December 31, 2022 2021 Commercial real estate $ 325 $ 342 One-to four-family 899 946 Total $ 1,224 $ 1,288 |
Schedule of risk category of loans by class of loans | Loans not meeting the criteria above are classified as 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 December 31, 2022 Pass Mention Substandard Doubtful Total Commercial real estate $ 3,192,212 $ 35,881 $ 26,415 $ — $ 3,254,508 Commercial & industrial 876,867 31,749 — — 908,616 Construction 143,693 — — — 143,693 Multi-family 468,540 — — — 468,540 Total $ 4,681,312 $ 67,630 $ 26,415 $ — $ 4,775,357 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 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
Schedule of components of lease costs | The Company leases its corporate office, banking centers and loan production offices. The following tables present the Company’s lease cost and other information related to its operating leases (dollars in thousands): At December 31, 2022 Supplemental balance sheet information: Lease assets $ 44,339 Lease liabilities $ 48,364 Weighted average remaining lease term in years 11 Weighted average discount rate 2.26 % Year Ended December 31, 2022 Operating Lease cost $ 5,405 Cash paid for amount included in the measurement of operating lease liabilities $ 4,864 |
Schedule of remaining maturity of lease liabilities as well as the reconciliation of undiscounted lease payments to the discounted operating lease liabilities | The following table presents the remaining maturity of lease liabilities as well as the reconciliation of undiscounted lease payments to the discounted operating lease liabilities (in thousands): At December 31, 2022 Lease liabilities maturing in: 2023 $ 5,202 2024 4,976 2025 4,990 2026 5,008 2027 4,632 Thereafter 30,276 Total $ 55,084 Less: Present value discount (6,720) Total lease liabilities $ 48,364 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PREMISES AND EQUIPMENT | |
Schedule of premises and equipment | Premises and equipment are summarized as follows (in thousands): At December 31, 2022 2021 Furniture and Equipment $ 14,451 $ 13,032 Land, buildings and improvements 13,479 — Leasehold Improvements 20,595 16,266 Total Premises and Equipment 48,525 29,298 Less accumulated depreciation and amortization (16,656) (14,182) Total Premises and Equipment, net $ 31,869 $ 15,116 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DEPOSITS | |
Schedule of deposits | Deposits consisted of the following (in thousands): At December 31, 2022 2021 Noninterest bearing demand accounts $ 2,422,151 $ 3,668,673 Money market 2,792,554 2,666,983 Savings accounts 11,144 20,930 Time deposits 52,063 78,986 Total deposits $ 5,277,912 $ 6,435,572 |
Schedule of time deposits maturities | The following table presents the scheduled annual maturities of time deposits (in thousands): At December 31, 2022 2023 $ 37,614 2024 11,263 2025 2,362 2026 349 2027 475 Total time deposits $ 52,063 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
BORROWINGS | |
Schedule of Federal funds purchased and FHLBNY advances | Federal funds purchased and FHLBNY advances consisted of the following (in thousands): Interest expense At December 31, Year Ended December 31, 2022 2021 2022 2021 2020 Federal funds purchased $ 150,000 $ — $ 601 $ — $ — Federal Home Loan Bank of New York advances $ 100,000 $ — $ 292 $ — $ 1,742 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
Schedule of components of income taxes | Income tax expense consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Current Federal $ 27,311 $ 16,883 $ 10,936 State and local 14,162 12,252 7,226 Total current 41,473 29,135 18,162 Deferred Federal (1,919) (405) 139 State and local (2,081) 285 151 Total deferred (4,000) (120) 290 Total income tax expense $ 37,473 $ 29,015 $ 18,452 |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities consist of the following (in thousands): At December 31, 2022 2021 Deferred tax assets: Allowance for loan losses $ 13,698 $ 10,670 Lease liabilities 14,782 — Net unrealized loss on securities available for sale 27,084 3,731 Off balance sheet reserves 55 55 Restricted stock 1,140 252 Tangible asset 7 10 Non-qualified stock options 285 286 Other 95 — Total gross deferred tax assets 57,146 15,004 Deferred tax liabilities: Right of use lease asset 13,551 — Depreciation and amortization 4,390 3,229 Net unrealized gain on interest rate cap 3,302 334 Prepaid assets 548 459 Other — 12 Total gross deferred tax liabilities 21,791 4,034 Net deferred tax asset, included in other assets $ 35,355 $ 10,970 |
Schedule of reconciliation of statutory federal income tax rate | The following is a reconciliation of the Company’s statutory federal income tax rate to its effective tax rate (in thousands): For the year ended December 31, 2022 2021 2020 Tax expense/ Tax expense/ Tax expense/ (benefit) Rate (benefit) Rate (benefit) Rate Pretax income at statutory rates $ 20,349 21.00 % $ 18,810 21.00 % $ 12,163 21.00 % State and local taxes, net of federal income tax benefit 9,544 9.85 9,904 11.06 5,828 10.06 Nondeductible expenses 8,175 8.44 680 0.76 457 0.79 Stock options (302) (0.31) — — — — Excess tax deduction on equity awards — — (467) (0.52) (59) (0.10) Tax-exempt income, net (106) (0.11) (51) (0.06) — — Other (187) (0.20) 139 0.15 63 0.11 Effective income tax expense/rate $ 37,473 38.67 % $ 29,015 32.39 % $ 18,452 31.86 % |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of Assets and Liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (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 December 31, 2022 U.S. Government agency securities $ 59,372 $ — $ 59,372 $ — U.S. State and Municipal securities 9,212 — 9,212 — Residential mortgage securities 338,548 — 338,548 — Commercial mortgage securities 34,850 — 34,850 — Asset-backed securities 3,765 — 3,765 — CRA Mutual Fund 2,048 2,048 — — Derivative assets - interest rate cap — — — — 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 assets and liabilities measured on a non-recurring basis | Carrying amount and estimated fair values of financial instruments not carried at fair value 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 December 31, 2022 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 26,780 $ 26,780 $ — $ — $ 26,780 Overnight deposits 230,638 230,638 — — 230,638 Securities held-to-maturity 510,425 — 437,290 — 437,290 Loans, net 4,840,523 — — 4,737,007 4,737,007 Other investments FRB Stock 11,421 N/A N/A N/A N/A FHLB Stock 9,191 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 85,605 — — 85,605 85,605 Accrued interest receivable 24,107 — 964 23,143 24,107 Financial Liabilities: Non-interest-bearing demand deposits $ 2,422,151 $ 2,422,151 $ — $ — $ 2,422,151 Money market and savings deposits 2,803,698 2,803,698 — — 2,803,698 Time deposits 52,063 — 51,058 — 51,058 Federal funds purchased 150,000 — 150,000 — 150,000 Federal Home Loan Bank of New York advances 100,000 — 100,000 — 100,000 Trust preferred securities payable 20,620 — — 19,953 19,953 Prepaid debit cardholder balances 10,579 — — 10,579 10,579 Accrued interest payable 728 112 293 323 728 Secured borrowings 7,725 — 7,725 — 7,725 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 |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
STOCK COMPENSATION PLAN | |
Schedule of status of the stock option plan | Year ended December 31, 2022 Weighted Number of Average Options Exercise Price Outstanding, beginning of period 231,000 $ 18.00 Granted — — Exercised (10,800) 18.00 Cancelled/forfeited — — Outstanding, end of period 220,200 $ 18.00 Options vested and exercisable at end of period 220,200 $ 18.00 Weighted average remaining contractual life (years) 1.41 Weighted average intrinsic value $ 40.67 |
Schedule of changes in the non-vested restricted stock awards | Year ended December 31, 2022 December 31, 2021 December 31, 2020 Weighted Weighted Weighted Average Average Average Number of Grant Date Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Shares Fair Value Outstanding, beginning of period 90,999 $ 47.35 76,289 $ 37.01 104,838 $ 29.86 Granted 83,151 102.49 78,582 50.80 62,092 44.80 Forfeited (578) 92.44 (10,200) 48.09 (31,781) 38.24 Vested (44,010) 37.12 (53,672) 37.57 (58,860) 31.83 Outstanding at end of period 129,562 $ 86.01 90,999 $ 47.35 76,289 $ 37.01 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of off-balance-sheet financial instruments | The following off-balance-sheet financial instruments whose contract amounts represent credit risk, are outstanding (in thousands): At December 31, 2022 At December 31, 2021 Fixed Variable Fixed Variable Rate Rate Rate Rate Unused commitments $ 40,685 $ 364,908 $ 39,676 $ 346,115 Standby and commercial letters of credit 53,947 — 49,988 — $ 94,632 $ 364,908 $ 89,664 $ 346,115 |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REGULATORY CAPITAL | |
Schedule of requirements for minimum capital adequacy and classification | Actual and required capital amounts and ratios are presented below at year end (dollars in thousands): For To be Well Minimum Capital Capitalized under Capital Adequacy Prompt Corrective Conservation Actual Purposes Action Regulations Buffer Amount Ratio Amount Ratio Amount Ratio Ratio At December 31, 2022 The Company Tier 1 leverage ratio (Tier 1 capital to average assets) $ 641,082 10.2 % $ 250,963 4.0 % $ N/A N/A — % Tier 1 common equity (to risk-weighted assets) $ 620,462 12.1 % $ 230,879 4.5 % $ N/A N/A 2.5 % Tier 1 capital (to risk-weighted assets) $ 641,082 12.5 % $ 307,838 6.0 % $ N/A N/A 2.5 % Total capital (to risk-weighted assets) $ 686,139 13.4 % $ 410,451 8.0 % $ N/A N/A 2.5 % The Bank Tier 1 leverage ratio (Tier 1 capital to average assets) $ 628,825 10.0 % $ 250,920 4.0 % $ 313,650 5.0 % — % Tier 1 common equity (to risk-weighted assets) $ 628,825 12.3 % $ 230,815 4.5 % $ 333,399 6.5 % 2.5 % Tier 1 capital (to risk-weighted assets) $ 628,825 12.3 % $ 307,753 6.0 % $ 410,337 8.0 % 2.5 % Total capital (to risk-weighted assets) $ 673,876 13.1 % $ 410,337 8.0 % $ 512,922 10.0 % 2.5 % At December 31, 2021 The Company Tier 1 leverage ratio (Tier 1 capital to average assets) $ 575,380 8.5 % $ 270,863 4.0 % $ N/A N/A — % Tier 1 common equity (to risk-weighted assets) $ 554,760 14.1 % $ 177,646 4.5 % $ N/A N/A 2.5 % Tier 1 capital (to risk-weighted assets) $ 575,380 14.6 % $ 236,861 6.0 % $ N/A N/A 2.5 % Total capital (to risk-weighted assets) $ 635,002 16.1 % $ 315,815 8.0 % $ N/A N/A 2.5 % The Bank Tier 1 leverage ratio (Tier 1 capital to average assets) $ 566,835 8.4 % $ 270,800 4.0 % $ 338,499 5.0 % — % Tier 1 common equity (to risk-weighted assets) $ 566,835 14.4 % $ 177,582 4.5 % $ 256,508 6.5 % 2.5 % Tier 1 capital (to risk-weighted assets) $ 566,835 14.4 % $ 236,777 6.0 % $ 315,702 8.0 % 2.5 % Total capital (to risk-weighted assets) $ 601,740 15.2 % $ 315,702 8.0 % $ 394,628 10.0 % 2.5 % |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 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). Year Ended December 31, 2022 2021 2020 Basic Net income per consolidated statements of income $ 59,425 $ 60,555 $ 39,466 Less: Earnings allocated to participating securities (141) (739) (344) Net income available to common stockholders $ 59,284 $ 59,816 $ 39,122 Weighted average common shares outstanding including participating securities 10,955,077 9,123,037 8,293,677 Less: Weighted average participating securities (26,056) (111,337) (72,248) Weighted average common shares outstanding 10,929,021 9,011,700 8,221,429 Basic earnings per common share 5.42 6.64 4.76 Diluted Net income allocated to common stockholders $ 59,284 $ 59,816 $ 39,122 Weighted average common shares outstanding for basic earnings per common share 10,929,021 9,011,700 8,221,429 Add: Dilutive effects of assumed exercise of stock options 170,648 170,792 103,463 Add: Dilutive effects of assumed vesting of performance based restricted stock 56,711 51,581 73,552 Add: Dilutive effects of assumed vesting of restricted stock units 43,804 38,749 — Average shares and dilutive potential common shares 11,200,184 9,272,822 8,398,444 Dilutive earnings per common share $ 5.29 $ 6.45 $ 4.66 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Summary of changes in Accumulated Other Comprehensive Income (Loss) balances, net of tax effects | The following table summarizes the changes in Accumulated Other Comprehensive Income (Loss) balances, net of tax effects at the dates indicated (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ (7,504) $ 973 $ 1,207 Other comprehensive income, net of tax Unrealized gain (loss) on AFS securities: Unrealized holding gain (loss) arising during the period (76,934) (14,722) 4,877 Reclassification adjustment for (gain) loss included in net income — (609) (3,286) Tax effect 23,353 4,795 (514) Net of tax (53,581) (10,536) 1,077 Unrealized gain (loss) on cash flow hedges: Unrealized holding gain (loss) arising during the period 11,704 2,957 (1,925) Reclassification adjustment for gain included in net income (1,949) — — Tax effect (2,968) (898) 614 Net of tax 6,787 2,059 (1,311) Net current period other comprehensive income (loss) (46,794) (8,477) (234) Ending balance $ (54,298) $ (7,504) $ 973 |
Schedule of reclassifications out of accumulated other comprehensive income | The following table shows the amounts reclassified out of each component of accumulated other comprehensive income for the gain on the sale of securities (in thousands): Affected line item in the Consolidated Statements Year Ended December 31, of Operations 2022 2021 2020 Realized gain on sale of AFS securities $ — $ 609 $ 3,286 Gain on Sale of Securities Income tax (expense) benefit — (197) (1,036) Income tax expense Total reclassifications, net of income tax $ — $ 412 $ 2,250 Realized gain on cash flow hedges $ 1,949 $ — $ — Licensing fees Income tax (expense) benefit (599) — — Income tax expense Total reclassifications, net of income tax $ 1,350 $ — $ — |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 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): Year ended December 31, 2022 2021 2020 Service charges on deposit accounts $ 5,747 $ 4,755 $ 3,728 Global Payments Group revenue 19,341 16,445 8,464 Other service charges and fees 1,763 1,950 1,477 Total $ 26,851 $ 23,150 $ 13,669 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DERIVATIVES | |
Schedule of notional amount and fair value | The following tables reflect the derivatives recorded on the balance sheet (in thousands): Notional Fair Amount Value At December 31, 2022 Derivatives designated as hedges: Interest rate caps related to customer deposits $ — $ — Total included in Other Assets $ — $ — 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): Year ended December 31, 2022 2021 2020 Interest rate caps related to customer deposits Amount of gain (loss) recognized in OCI, net of tax $ 8,131 $ 2,059 $ (1,311) Amount of gain (loss) reclassified from OCI into income $ 1,949 $ — $ — Location of gain (loss) reclassified from OCI into income Licensing fees N/A N/A |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PARENT COMPANY FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | Condensed Statements of Financial Condition At December 31, 2022 2021 Assets Cash and due from banks $ 9,476 $ 32,328 Loans, net of allowance for loan losses 776 776 Investments 620 620 Investment in subsidiary bank, at equity 584,522 569,327 Other assets 1,520 6 Total assets 596,914 603,057 Liabilities and Stockholders’ Equity Trust preferred securities 20,620 20,620 Subordinated debt payable, net of issuance costs — 24,712 Other liabilities 397 736 Total liabilities 21,017 46,068 Stockholders’ Equity Preferred stock — — Common stock 109 109 Surplus 389,276 382,999 Retained earnings 240,810 181,385 Accumulated other comprehensive income (loss), net of tax (54,298) (7,504) Total equity 575,897 556,989 Total liabilities and stockholders’ equity $ 596,914 $ 603,057 |
Schedule of condensed statements of income | Condensed Statements of Operations Year Ended December 31, 2022 2021 2020 Income Loans $ 9 $ 14 $ 17 Securities and money market funds 25 13 18 Total interest income 34 27 35 Interest expense Trust preferred securities 823 438 590 Subordinated debt 605 1,618 1,618 Total interest expense 1,428 2,056 2,208 Net interest expense (1,394) (2,029) (2,173) Provision for loan losses — — — Net interest expense after provision for loan losses (1,394) (2,029) (2,173) Other expense 2,767 1,288 2,338 Loss before undistributed earnings of subsidiary bank (4,161) (3,317) (4,511) Equity in undistributed earnings of subsidiary bank 62,357 62,798 42,844 Income before income tax benefit 58,196 59,481 38,333 Income tax benefit 1,229 1,074 1,133 Net income $ 59,425 $ 60,555 $ 39,466 Comprehensive income $ 12,631 $ 52,078 $ 39,232 |
Schedule of condensed statement of cash flows | Condensed Statement of Cash Flows Year Ended December 31, 2022 2021 2020 Cash Flows From Operating Activities Net income $ 59,425 $ 60,555 $ 39,466 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Undistributed earnings of subsidiary bank (62,357) (58,798) (42,844) Cash dividend from subsidiary bank — 4,000 — Other operating adjustments 6,351 (746) 2,438 Net cash provided by (used in) operating activities 3,419 5,011 (940) Cash Flows From Investing Activities Investments in subsidiary bank — (132,000) — Net cash provided by (used in) investing activities — (132,000) — Cash Flows From Financing Activities Redemption of common stock for tax withholdings for restricted stock vesting (1,559) (3,385) (881) Redemption of subordinated notes (24,712) — — Proceeds from issuance of common stock, net — 162,687 — Net cash provided by (used in) financing activities (26,271) 159,302 (881) Increase (decrease) in cash and cash equivalents (22,852) 32,313 (1,821) Cash and cash equivalents, beginning of year 32,328 15 1,836 Cash and cash equivalents, end of year $ 9,476 $ 32,328 $ 15 |
UNAUDITED QUARTERLY FINANCIAL_2
UNAUDITED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
UNAUDITED QUARTERLY FINANCIAL DATA | |
Schedule of consolidated quarterly financial data | Selected Consolidated Quarterly Financial Data (dollars, except per share amounts, in thousands) 2022 Quarter Ended December 31 September 30 June 30 March 31 Interest income $ 80,554 $ 70,057 $ 59,158 $ 50,970 Interest expense 16,655 6,732 3,856 4,338 Net interest income 63,899 63,325 55,302 46,632 Provision for loan losses 2,309 2,007 2,400 3,400 Net interest income after provision for loan losses 61,590 61,318 52,902 43,232 Non-interest income 6,350 5,818 6,998 7,427 Non-interest expense 66,659 31,190 26,269 24,619 Income before income taxes 1,281 35,946 33,631 26,040 Income tax expense 9,021 10,991 10,442 7,019 Net income (loss) $ (7,740) $ 24,955 $ 23,189 $ 19,021 Basic earnings (loss) per common share $ (0.71) $ 2.28 $ 2.12 $ 1.74 Diluted earnings (loss) per common share $ (0.71) $ 2.23 $ 2.07 $ 1.69 2021 Quarter Ended December 31 September 30 June 30 March 31 Interest income $ 49,110 $ 45,018 $ 41,050 $ 38,106 Interest expense 4,300 4,226 4,077 3,680 Net interest income 44,810 40,792 36,973 34,426 Provision for loan losses 501 490 1,875 950 Net interest income after provision for loan losses 44,309 40,302 35,098 33,476 Non-interest income 7,057 5,891 6,156 4,593 Non-interest expense 23,314 21,984 21,689 20,325 Income before income taxes 28,052 24,209 19,565 17,744 Income tax expense 9,165 7,994 6,229 5,627 Net income (loss) $ 18,887 $ 16,215 $ 13,336 $ 12,117 Basic earnings (loss) per common share $ 1.74 $ 1.82 $ 1.59 $ 1.46 Diluted earnings (loss) per common share $ 1.69 $ 1.77 $ 1.55 $ 1.43 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | 12 Months Ended | |||
Oct. 01, 2022 USD ($) | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) | |
Bankruptcy accounts subject to the licensing fees | $ 425,300,000 | $ 934,300,000 | ||
Goodwill | 9,700,000 | |||
Impairment of goodwill | $ 0 | 0 | ||
Investment in Disability Opportunity Fund | 1,000,000 | |||
Investment in FRB | 11,400,000 | 7,400,000 | ||
Investment in FHLB | 9,200,000 | 3,100,000 | ||
Deposit with Federal Reserve Bank | 226,700,000 | 2,300,000,000 | ||
Cash pledged as collateral | 683,000 | $ 693,000 | ||
Escrow deposit | $ 13,300,000 | $ 10,800,000 | ||
Number of reportable operating segment | segment | 1 | |||
Minimum | ||||
Premises and equipment useful life | 3 years | |||
Maximum | ||||
Premises and equipment useful life | 30 years |
SUMMARY OF RECENT ACCOUNTING _3
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Lease assets | $ 44,339 | |||
Lease liabilities | 48,364 | |||
Retained earnings | $ 240,810 | $ 181,385 | ||
ASU 2016-02 | ||||
Lease assets | $ 44,300 | |||
Lease liabilities | 48,400 | |||
Right-of-use asset obtained in exchange for operating lease liability | 4,100 | |||
ASU 2016-02 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Retained earnings | $ 0 | |||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | Maximum | ||||
Percentage of increase in allowance for credit losses and unfunded commitments | 11% | |||
Percentage of decrease in retained earnings | 11% | |||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | Minimum | ||||
Percentage of increase in allowance for credit losses and unfunded commitments | 7% | |||
Percentage of decrease in retained earnings | 7% |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities available-for-sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available for sale, at fair value | $ 445,747 | $ 566,624 |
Available-for-sale Securities. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 534,665 | 578,608 |
Gross Unrealized/Unrecognized Gains | 289 | 842 |
Gross Unrealized/Unrecognized Losses | (89,207) | (12,826) |
Investment securities available for sale, at fair value | 445,747 | 566,624 |
Available-for-sale Securities. | U.S. Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 67,996 | 67,994 |
Gross Unrealized/Unrecognized Losses | (8,624) | (1,660) |
Investment securities available for sale, at fair value | 59,372 | 66,334 |
Available-for-sale Securities. | U.S. State and Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,649 | 11,799 |
Gross Unrealized/Unrecognized Losses | (2,437) | (300) |
Investment securities available for sale, at fair value | 9,212 | 11,499 |
Available-for-sale Securities. | Residential MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 413,998 | 476,393 |
Gross Unrealized/Unrecognized Gains | 279 | 623 |
Gross Unrealized/Unrecognized Losses | (75,729) | (10,465) |
Investment securities available for sale, at fair value | 338,548 | 466,551 |
Available-for-sale Securities. | Commercial MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 37,069 | 17,787 |
Gross Unrealized/Unrecognized Gains | 10 | 219 |
Gross Unrealized/Unrecognized Losses | (2,229) | (379) |
Investment securities available for sale, at fair value | 34,850 | 17,627 |
Available-for-sale Securities. | Asset-backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,953 | 4,635 |
Gross Unrealized/Unrecognized Losses | (188) | (22) |
Investment securities available for sale, at fair value | $ 3,765 | $ 4,613 |
INVESTMENT SECURITIES (Schedu_2
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities held-to-maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 510,425 | $ 382,099 |
Total Securities | 437,300 | 380,100 |
Held-to-maturity Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 510,425 | 382,099 |
Gross Unrealized/Unrecognized Gains | 410 | |
Gross Unrealized/Unrecognized Losses | (73,135) | (2,401) |
Total Securities | 437,290 | 380,108 |
Held-to-maturity Securities | US Treasury Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 29,852 | 29,811 |
Gross Unrealized/Unrecognized Gains | 6 | |
Gross Unrealized/Unrecognized Losses | (2,223) | (43) |
Total Securities | 27,629 | 29,774 |
Held-to-maturity Securities | U.S. State and Municipal securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 15,814 | 16,055 |
Gross Unrealized/Unrecognized Gains | 299 | |
Gross Unrealized/Unrecognized Losses | (2,609) | |
Total Securities | 13,205 | 16,354 |
Held-to-maturity Securities | Residential MBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 456,648 | 328,095 |
Gross Unrealized/Unrecognized Gains | 105 | |
Gross Unrealized/Unrecognized Losses | (67,027) | (2,259) |
Total Securities | 389,621 | 325,941 |
Held-to-maturity Securities | Commercial MBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 8,111 | 8,138 |
Gross Unrealized/Unrecognized Losses | (1,276) | (99) |
Total Securities | $ 6,835 | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 2,358 | $ 2,326 |
Gross Unrealized/Unrecognized Losses | (310) | (53) |
Fair Value | 2,048 | 2,273 |
CRA mutual fund | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 2,358 | 2,326 |
Gross Unrealized/Unrecognized Losses | (310) | (53) |
Fair Value | $ 2,048 | $ 2,273 |
INVESTMENT SECURITIES (Proceeds
INVESTMENT SECURITIES (Proceeds from sales and calls of securities and associated gains and losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INVESTMENT SECURITIES | ||
Proceeds | $ 43,241 | $ 141,422 |
Gross gains | (609) | (3,286) |
Tax impact | $ (197) | $ (1,036) |
INVESTMENT SECURITIES (Schedu_4
INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
After 1 year through 5 years | $ 29,852 | $ 29,811 |
After 5 years though 10 years | 9,505 | 9,973 |
After 10 years | 471,068 | 342,315 |
Amortized Cost, total | 510,425 | 382,099 |
Fair Value | ||
After 1 year through 5 years | 27,630 | 29,774 |
After 5 years though 10 years | 8,130 | 9,912 |
After 10 years | 401,530 | 340,422 |
Fair Value, total | 437,290 | 380,108 |
Amortized Cost | ||
After 1 year through 5 years | 54,736 | 48,515 |
After 5 years though 10 years | 36,043 | 36,242 |
After 10 years | 443,886 | 493,851 |
Amortized Cost, total | 534,665 | 578,608 |
Fair Value | ||
After 1 year through 5 years | 48,959 | 47,370 |
After 5 years though 10 years | 32,872 | 36,024 |
After 10 years | 363,916 | 483,230 |
Fair Value, total | 445,747 | 566,624 |
Asset Pledged as Collateral | ||
Fair Value | ||
Securities pledged | $ 25,000 | $ 0 |
INVESTMENT SECURITIES (Schedu_5
INVESTMENT SECURITIES (Schedule of Securities with Unrealized Losses) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) 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 | 35,528 | 477,140 |
Less than 12 Months, Unrealized/Unrecognized Losses | (2,379) | (11,075) |
12 months or more, Estimated Fair Value | 387,125 | 53,509 |
12 months or more, Unrealized/Unrecognized Losses | (86,828) | (1,751) |
Total, Estimated Fair Value | 422,653 | 530,649 |
Total, Unrealized/Unrecognized Losses | (89,207) | (12,826) |
Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 194,848 | 319,632 |
Less than 12 Months, Unrealized/Unrecognized Losses | (23,599) | (2,401) |
12 months or more, Estimated Fair Value | 242,442 | |
12 months or more, Unrealized/Unrecognized Losses | (49,536) | |
Total, Estimated Fair Value | 437,290 | 319,632 |
Total, Unrealized Losses | (73,135) | (2,401) |
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 | 59,372 | 37,067 |
12 months or more, Unrealized/Unrecognized Losses | (8,624) | (930) |
Total, Estimated Fair Value | 59,372 | 66,334 |
Total, Unrealized/Unrecognized Losses | (8,624) | (1,660) |
U.S. State and Municipal securities | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 2,546 | 8,372 |
Less than 12 Months, Unrealized/Unrecognized Losses | (527) | (300) |
12 months or more, Estimated Fair Value | 6,666 | |
12 months or more, Unrealized/Unrecognized Losses | (1,910) | |
Total, Estimated Fair Value | 9,212 | 8,372 |
Total, Unrealized/Unrecognized Losses | (2,437) | (300) |
U.S. State and Municipal securities | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 13,205 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (2,609) | |
Total, Estimated Fair Value | 13,205 | |
Total, Unrealized Losses | (2,609) | |
Residential MBS | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 19,576 | 423,686 |
Less than 12 Months, Unrealized/Unrecognized Losses | (1,654) | (9,727) |
12 months or more, Estimated Fair Value | 305,936 | 12,931 |
12 months or more, Unrealized/Unrecognized Losses | (74,075) | (738) |
Total, Estimated Fair Value | 325,512 | 436,617 |
Total, Unrealized/Unrecognized Losses | (75,729) | (10,465) |
Residential MBS | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 162,960 | 301,896 |
Less than 12 Months, Unrealized/Unrecognized Losses | (19,625) | (2,259) |
12 months or more, Estimated Fair Value | 226,661 | |
12 months or more, Unrealized/Unrecognized Losses | (47,402) | |
Total, Estimated Fair Value | 389,621 | 301,896 |
Total, Unrealized Losses | (67,027) | (2,259) |
Commercial MBS | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 13,406 | 11,202 |
Less than 12 Months, Unrealized/Unrecognized Losses | (198) | (296) |
12 months or more, Estimated Fair Value | 11,386 | 3,511 |
12 months or more, Unrealized/Unrecognized Losses | (2,031) | (83) |
Total, Estimated Fair Value | 24,792 | 14,713 |
Total, Unrealized/Unrecognized Losses | (2,229) | (379) |
Commercial MBS | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 8,039 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (99) | |
12 months or more, Estimated Fair Value | 6,835 | |
12 months or more, Unrealized/Unrecognized Losses | (1,276) | |
Total, Estimated Fair Value | 6,835 | 8,039 |
Total, Unrealized Losses | (1,276) | (99) |
Asset-backed Securities | Available-for-sale Securities. | ||
Available-for-sale Securities | ||
Less than 12 Months, Estimated Fair Value | 4,613 | |
Less than 12 Months, Unrealized/Unrecognized Losses | (22) | |
12 months or more, Estimated Fair Value | 3,765 | |
12 months or more, Unrealized/Unrecognized Losses | (188) | |
Total, Estimated Fair Value | 3,765 | 4,613 |
Total, Unrealized/Unrecognized Losses | (188) | (22) |
US Treasury Securities | Held-to-maturity Securities | ||
Held-to-maturity Securities | ||
Less than 12 Months, Estimated Fair Value | 18,683 | 9,697 |
Less than 12 Months, Unrealized/Unrecognized Losses | (1,365) | (43) |
12 months or more, Estimated Fair Value | 8,946 | |
12 months or more, Unrealized/Unrecognized Losses | (858) | |
Total, Estimated Fair Value | 27,629 | 9,697 |
Total, Unrealized Losses | $ (2,223) | $ (43) |
LOANS (Schedule of Loan Receiva
LOANS (Schedule of Loan Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 4,853,495 | $ 3,739,527 | |
Deferred fees, net of origination costs | (12,972) | (7,598) | |
Loans, net of deferred fees and costs | 4,840,523 | 3,731,929 | |
Allowance for loan losses | (44,876) | (34,729) | $ (35,407) |
Net loans | 4,795,647 | 3,697,200 | |
Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 3,919,948 | 3,052,626 | |
Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 908,616 | 654,535 | |
Allowance for loan losses | (10,274) | (7,708) | (12,123) |
Loan held for sale | 0 | 4,100 | |
Commercial and industrial | Paycheck Protection Program loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Net loans | 97,000 | 561,000 | |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 24,931 | 32,366 | |
Allowance for loan losses | (195) | (404) | (1,581) |
Commercial | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 3,254,508 | 2,488,382 | |
Allowance for loan losses | (29,496) | (22,216) | (17,243) |
Construction | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 143,693 | 151,791 | |
Allowance for loan losses | (1,983) | (2,105) | (1,593) |
Multifamily | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 468,540 | 355,290 | |
Allowance for loan losses | (2,823) | (2,156) | (2,661) |
One to four family | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 53,207 | 57,163 | |
Allowance for loan losses | $ (105) | $ (140) | $ (206) |
LOANS (Schedule of Activity in
LOANS (Schedule of Activity in the Allowance for Loan Losses by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | $ 34,729 | $ 35,407 | $ 34,729 | $ 35,407 | |||||||
Provision /(credit) for loan losses | $ 2,309 | $ 2,007 | $ 2,400 | 3,400 | $ 501 | $ 490 | $ 1,875 | 950 | 10,116 | 3,816 | $ 9,488 |
Loans charged-off | (4,819) | ||||||||||
Recoveries | 31 | 325 | |||||||||
Total ending allowance balance | 44,876 | 34,729 | 44,876 | 34,729 | 35,407 | ||||||
Real estate | Commercial | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 22,216 | 17,243 | 22,216 | 17,243 | |||||||
Provision /(credit) for loan losses | 7,280 | 4,973 | |||||||||
Total ending allowance balance | 29,496 | 22,216 | 29,496 | 22,216 | 17,243 | ||||||
Real estate | Construction | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 2,105 | 1,593 | 2,105 | 1,593 | |||||||
Provision /(credit) for loan losses | (122) | 512 | |||||||||
Total ending allowance balance | 1,983 | 2,105 | 1,983 | 2,105 | 1,593 | ||||||
Real estate | Multifamily | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 2,156 | 2,661 | 2,156 | 2,661 | |||||||
Provision /(credit) for loan losses | 667 | (505) | |||||||||
Total ending allowance balance | 2,823 | 2,156 | 2,823 | 2,156 | 2,661 | ||||||
Real estate | One to four family | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 140 | 206 | 140 | 206 | |||||||
Provision /(credit) for loan losses | (35) | (66) | |||||||||
Total ending allowance balance | 105 | 140 | 105 | 140 | 206 | ||||||
Commercial and industrial | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 7,708 | 12,123 | 7,708 | 12,123 | |||||||
Provision /(credit) for loan losses | 2,540 | 24 | |||||||||
Loans charged-off | (4,764) | ||||||||||
Recoveries | 26 | 325 | |||||||||
Total ending allowance balance | 10,274 | 7,708 | 10,274 | 7,708 | 12,123 | ||||||
Consumer | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | $ 404 | $ 1,581 | 404 | 1,581 | |||||||
Provision /(credit) for loan losses | (214) | (1,122) | |||||||||
Loans charged-off | (55) | ||||||||||
Recoveries | 5 | ||||||||||
Total ending allowance balance | $ 195 | $ 404 | $ 195 | $ 404 | $ 1,581 |
LOANS (Schedule of Loans by Imp
LOANS (Schedule of Loans by Impairment Method) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 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 | 44,852 | 34,533 | |
Total ending allowance balance | 44,876 | 34,729 | $ 35,407 |
Individually evaluated for impairment, Loans | 27,663 | 39,766 | |
Collectively evaluated for impairment, Loans | 4,825,832 | 3,699,761 | |
Total ending loan balance | 4,853,495 | 3,739,527 | |
Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total ending loan balance | 3,919,948 | 3,052,626 | |
Real estate | Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Collectively evaluated for impairment, Allowance for loan losses | 29,496 | 22,216 | |
Total ending allowance balance | 29,496 | 22,216 | 17,243 |
Individually evaluated for impairment, Loans | 26,740 | 38,518 | |
Collectively evaluated for impairment, Loans | 3,227,768 | 2,449,864 | |
Total ending loan balance | 3,254,508 | 2,488,382 | |
Real estate | Construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Collectively evaluated for impairment, Allowance for loan losses | 1,983 | 2,105 | |
Total ending allowance balance | 1,983 | 2,105 | 1,593 |
Collectively evaluated for impairment, Loans | 143,693 | 151,791 | |
Total ending loan balance | 143,693 | 151,791 | |
Real estate | Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Collectively evaluated for impairment, Allowance for loan losses | 2,823 | 2,156 | |
Total ending allowance balance | 2,823 | 2,156 | 2,661 |
Collectively evaluated for impairment, Loans | 468,540 | 355,290 | |
Total ending loan balance | 468,540 | 355,290 | |
Real estate | One to four family | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment, Allowance for loan losses | 0 | 26 | |
Collectively evaluated for impairment, Allowance for loan losses | 105 | 114 | |
Total ending allowance balance | 105 | 140 | 206 |
Individually evaluated for impairment, Loans | 899 | 946 | |
Collectively evaluated for impairment, Loans | 52,308 | 56,217 | |
Total ending loan balance | 53,207 | 57,163 | |
Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Individually evaluated for impairment, Allowance for loan losses | 0 | ||
Collectively evaluated for impairment, Allowance for loan losses | 10,274 | 7,708 | |
Total ending allowance balance | 10,274 | 7,708 | 12,123 |
Individually evaluated for impairment, Loans | 0 | ||
Collectively evaluated for impairment, Loans | 908,616 | 654,535 | |
Total ending loan balance | 908,616 | 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 | 171 | 234 | |
Total ending allowance balance | 195 | 404 | $ 1,581 |
Individually evaluated for impairment, Loans | 24 | 302 | |
Collectively evaluated for impairment, Loans | 24,907 | 32,064 | |
Total ending loan balance | $ 24,931 | $ 32,366 |
LOANS (Schedule of Impaired by
LOANS (Schedule of Impaired by Class of Loans) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
With an allowance recorded: | |||
Unpaid Principal Balance | $ 24,000 | $ 879,000 | $ 6,999,000 |
Recorded Investment | 24,000 | 749,000 | 6,869,000 |
Allowance for Loan Losses Allocated | 24,000 | 196,000 | 4,918,000 |
Average Recorded Investment | 79,000 | 4,954,000 | 5,450,000 |
Interest Income Recognized | 105,000 | 107,000 | |
Without an allowance recorded: | |||
Unpaid Principal Balance | 29,160,000 | 39,164,000 | 11,011,000 |
Recorded Investment | 27,639,000 | 39,017,000 | 10,864,000 |
Average Recorded Investment | 30,974,000 | 16,561,000 | 4,307,000 |
Interest Income Recognized | 1,072,000 | 351,000 | 58,000 |
One to four family | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 577,000 | 610,000 | |
Recorded Investment | 447,000 | 480,000 | |
Allowance for Loan Losses Allocated | 26,000 | 53,000 | |
Average Recorded Investment | 491,000 | ||
Interest Income Recognized | 19,000 | ||
Without an allowance recorded: | |||
Unpaid Principal Balance | 1,176,000 | 646,000 | 666,000 |
Recorded Investment | 899,000 | 499,000 | 519,000 |
Average Recorded Investment | 832,000 | 509,000 | 996,000 |
Interest Income Recognized | 31,000 | 26,000 | 20,000 |
Commercial | |||
Without an allowance recorded: | |||
Unpaid Principal Balance | 10,345,000 | ||
Recorded Investment | 10,345,000 | ||
Average Recorded Investment | 2,360,000 | ||
Interest Income Recognized | 38,000 | ||
Real estate | Commercial | |||
Without an allowance recorded: | |||
Unpaid Principal Balance | 27,984,000 | 38,518,000 | |
Recorded Investment | 26,740,000 | 38,518,000 | |
Average Recorded Investment | 30,142,000 | 15,975,000 | |
Interest Income Recognized | 1,041,000 | 325,000 | |
Commercial and industrial | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 4,192,000 | ||
Recorded Investment | 4,192,000 | ||
Allowance for Loan Losses Allocated | 3,662,000 | ||
Average Recorded Investment | 2,726,000 | 3,456,000 | |
Without an allowance recorded: | |||
Average Recorded Investment | 77,000 | 951,000 | |
Commercial and industrial | One to four family | |||
With an allowance recorded: | |||
Average Recorded Investment | 462,000 | ||
Interest Income Recognized | 21,000 | ||
Consumer | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 24,000 | 302,000 | |
Recorded Investment | 24,000 | 302,000 | |
Allowance for Loan Losses Allocated | 24,000 | 170,000 | |
Average Recorded Investment | 79,000 | 1,766,000 | |
Interest Income Recognized | $ 0 | $ 84,000 | |
Consumer | Consumer. | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 2,197,000 | ||
Recorded Investment | 2,197,000 | ||
Allowance for Loan Losses Allocated | 1,203,000 | ||
Average Recorded Investment | 1,503,000 | ||
Interest Income Recognized | $ 88,000 |
LOANS (Schedule of Non-accrual
LOANS (Schedule of Non-accrual Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 24 | $ 10,021 |
Loans Past Due Over 90 Days Still Accruing | 265 | |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | 9,984 | |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Nonaccrual | $ 24 | 37 |
Loans Past Due Over 90 Days Still Accruing | $ 265 |
LOANS (Schedule of Past Due Loa
LOANS (Schedule of Past Due Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 4,853,495 | $ 3,739,527 |
30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 8,058 | 244 |
60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 24,000 | 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 | 32,082 | 10,624 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 4,821,413 | 3,728,903 |
Real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 3,919,948 | 3,052,626 |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 3,254,508 | 2,488,382 |
Real estate | Commercial | 60 - 89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 24,000 | |
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 | 24,000 | 9,984 |
Real estate | Commercial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 3,230,508 | 2,478,398 |
Real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 143,693 | 151,791 |
Real estate | Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 143,693 | 151,791 |
Real estate | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 468,540 | 355,290 |
Real estate | Multifamily | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 8,000 | |
Real estate | Multifamily | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 8,000 | |
Real estate | Multifamily | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 460,540 | 355,290 |
Real estate | One to four family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 53,207 | 57,163 |
Real estate | One to four family | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 53,207 | 57,163 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 908,616 | 654,535 |
Commercial and industrial | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 37 | 151 |
Commercial and industrial | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 37 | 151 |
Commercial and industrial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 908,579 | 654,384 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 24,931 | 32,366 |
Consumer | 30 - 59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 21 | 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 | 45 | 489 |
Consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 24,886 | $ 31,877 |
LOANS (Troubled Debt Restructur
LOANS (Troubled Debt Restructurings) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans modified in troubled debt restructurings | $ 1,224 | $ 1,288 |
Number of TDR loans during the period | loan | 0 | 0 |
Specific reserves modified as TDRs | $ 0 | $ 26,000 |
Number of contracts financing receivable modifications | loan | 0 | 0 |
Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans modified in troubled debt restructurings | $ 325 | $ 342 |
One to four family | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans modified in troubled debt restructurings | $ 899 | $ 946 |
COVID 19 - Impact | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of TDR loans during the period | loan | 1 | 8 |
LOANS (Schedule of Loans by Ris
LOANS (Schedule of Loans by Risk Category) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 4,853,495 | $ 3,739,527 |
Commercial Construction and Multifamily Real Estate Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 4,775,357 | 3,649,998 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 4,681,312 | 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 | 67,630 | 4,519 |
Commercial Construction and Multifamily Real Estate Loans [Member] | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 26,415 | 42,283 |
Real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 3,919,948 | 3,052,626 |
Real estate | Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 3,254,508 | 2,488,382 |
Real estate | Commercial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 3,192,212 | 2,449,864 |
Real estate | Commercial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 35,881 | 342 |
Real estate | Commercial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 26,415 | 38,176 |
Real estate | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 143,693 | 151,791 |
Real estate | Construction | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 143,693 | 151,791 |
Real estate | Multifamily | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 468,540 | 355,290 |
Real estate | Multifamily | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 468,540 | 355,290 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 908,616 | 654,535 |
Commercial and industrial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | 876,867 | 646,251 |
Commercial and industrial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 31,749 | 4,177 |
Commercial and industrial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and Leases Receivable, Gross | $ 4,107 |
LOANS (COVID-19 Loan Modificati
LOANS (COVID-19 Loan Modifications) (Details) - COVID 19 - Impact $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
Financing Receivable, Impaired [Line Items] | ||
Loan Restructuring, Trial Modifications, Amount | $ 20.8 | $ 48.9 |
Percentage of Loans and Leases Receivable, Modified | 0.43% | 1.31% |
Number of loan, full payment deferrals | loan | 0 | |
Principal Payment Deferrals | ||
Financing Receivable, Impaired [Line Items] | ||
Loan Restructuring, Trial Modifications, Amount | $ 20.8 | $ 39.1 |
Percentage of Loans and Leases Receivable, Modified | 0.43% | 1.05% |
Full Payment Deferrals | ||
Financing Receivable, Impaired [Line Items] | ||
Loan Restructuring, Trial Modifications, Amount | $ 9.9 | |
Percentage of Loans and Leases Receivable, Modified | 0.26% |
LEASES (Details)
LEASES (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
LEASES | |
Lease assets | $ 44,339 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets |
Lease liabilities | $ 48,364 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities |
Weighted average remaining lease term in years | 11 years |
Weighted average discount rate | 2.26% |
LEASES - Cashflow (Details)
LEASES - Cashflow (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
LEASES | |
Operating Lease cost | $ 5,405 |
Cash paid for amount included in the measurement of operating lease liabilities | $ 4,864 |
LEASES - Maturity of lease liab
LEASES - Maturity of lease liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | ||
2023 | $ 5,202 | |
2024 | 4,976 | |
2025 | 4,990 | |
2026 | 5,008 | |
2027 | 4,632 | |
Thereafter | 30,276 | |
Total | 55,084 | |
Less: Present value discount | (6,720) | |
Total lease liabilities | $ 48,364 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | |
Rent expense | $ 4,900 | $ 4,700 |
PREMISES AND EQUIPMENT (Schedul
PREMISES AND EQUIPMENT (Schedule of Premises and equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | $ 48,525 | $ 29,298 |
Less accumulated depreciation and amortization | (16,656) | (14,182) |
Total Premises and Equipment, net | 31,869 | 15,116 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | 14,451 | 13,032 |
Land, building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | 13,479 | |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment | $ 20,595 | $ 16,266 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
PREMISES AND EQUIPMENT | |||
Depreciation and amortization expense | $ 2.5 | $ 2.4 | $ 2.5 |
DEPOSITS (Schedule of Deposits)
DEPOSITS (Schedule of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
DEPOSITS | ||
Noninterest bearing demand accounts | $ 2,422,151 | $ 3,668,673 |
Money market | 2,792,554 | 2,666,983 |
Savings accounts | 11,144 | 20,930 |
Time deposits | 52,063 | 78,986 |
Total deposits | $ 5,277,912 | $ 6,435,572 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
DEPOSITS | ||
Time deposits greater than $250,000 | $ 30.8 | $ 39.4 |
DEPOSITS (schedule maturities o
DEPOSITS (schedule maturities of time deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
DEPOSITS | ||
2023 | $ 37,614 | |
2024 | 11,263 | |
2025 | 2,362 | |
2026 | 349 | |
2027 | 475 | |
Total time deposits | $ 52,063 | $ 78,986 |
BORROWINGS (Advances from the F
BORROWINGS (Advances from the FHLB) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
BORROWINGS | ||
Federal funds purchased | $ 150,000 | |
Federal Home Loan Bank of New York advances | 100,000 | |
Interest expense, Federal funds purchased | 601 | |
Interest Expense federal home loan bank advance | $ 292 | $ 1,742 |
Weighted average Interest rate | 4.65% | |
Interest rate | 4.58% | |
Available borrowing capacity from the FHLB | $ 984,400 | |
Available line of credit from FRBNY | $ 137,600 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) | 12 Months Ended | ||||
Mar. 08, 2017 | Jul. 14, 2006 | Dec. 07, 2005 | Dec. 31, 2022 | Dec. 31, 2021 | |
Federal Home Loan Bank, Advances [Line Items] | |||||
Available collateral to borrow an additional amount from FHLB | $ 984,400,000 | ||||
Interest rate | 4.58% | ||||
Redemption of subordinated debt | $ 24,712,000 | ||||
Subordinated Debt | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Debt instrument face amount | $ 25,000,000 | ||||
Maturity date | Mar. 15, 2027 | ||||
Interest rate | 6.25% | ||||
Junior Subordinated Debt [Member] | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Description of periodic payment | twenty consecutive quarterly payments | ||||
Period for periodic payment | 5 years | ||||
Metbank Capital Trust I [Member] | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Investment in common securities of the trust | $ 310,000 | ||||
Trust preferred securities issued | 10,000,000 | ||||
Metbank Capital Trust I [Member] | Junior Subordinated Debt [Member] | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Debt instrument face amount | $ 10,300,000 | ||||
Maturity date | Dec. 09, 2035 | ||||
Description of LIBOR rate basis | three-month LIBOR | ||||
Interest rate during period | 5.93% | 1.97% | |||
Metbank Capital Trust I [Member] | Junior Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Basis spread on LIBOR variable rate | 1.85% | ||||
Metbank Capital Trust Two [Member] | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Investment in common securities of the trust | $ 310,000 | ||||
Trust preferred securities issued | 10,000,000 | ||||
Metbank Capital Trust Two [Member] | Junior Subordinated Debt [Member] | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Debt instrument face amount | $ 10,300,000 | ||||
Maturity date | Oct. 07, 2036 | ||||
Description of LIBOR rate basis | 3-month LIBOR | ||||
Interest rate during period | 6.08% | 2.12% | |||
Metbank Capital Trust Two [Member] | Junior Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) | |||||
Federal Home Loan Bank, Advances [Line Items] | |||||
Basis spread on LIBOR variable rate | 2% |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income tax expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||||||||||
Federal | $ 27,311 | $ 16,883 | $ 10,936 | ||||||||
State and local | 14,162 | 12,252 | 7,226 | ||||||||
Total current | 41,473 | 29,135 | 18,162 | ||||||||
Deferred | |||||||||||
Federal | (1,919) | (405) | 139 | ||||||||
State and local | (2,081) | 285 | 151 | ||||||||
Total deferred | (4,000) | (120) | 290 | ||||||||
Total income tax expense | $ 9,021 | $ 10,991 | $ 10,442 | $ 7,019 | $ 9,165 | $ 7,994 | $ 6,229 | $ 5,627 | $ 37,473 | $ 29,015 | $ 18,452 |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred tax assets and liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for loan losses | $ 13,698 | $ 10,670 |
Lease Liabilities | 14,782 | |
Net unrealized loss on securities available for sale | 27,084 | 3,731 |
Off balance sheet reserves | 55 | 55 |
Restricted stock | 1,140 | 252 |
Tangible asset | 7 | 10 |
Non-qualified stock options | 285 | 286 |
Other | 95 | |
Total gross deferred tax assets | 57,146 | 15,004 |
Deferred tax liabilities: | ||
Right of use lease asset | 13,551 | |
Depreciation and amortization | 4,390 | 3,229 |
Net unrealized gain on interest rate cap | 3,302 | 334 |
Prepaid assets | 548 | 459 |
Other | 12 | |
Total gross deferred tax liabilities | 21,791 | 4,034 |
Net deferred tax asset, included in other assets | $ 35,355 | $ 10,970 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of statutory federal income tax rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||||||||||
Pretax income at statutory, amount | $ 20,349 | $ 18,810 | $ 12,163 | ||||||||
Pretax income at statutory rates | 21% | 21% | 21% | ||||||||
State and local taxes, net of federal income tax benefit, amount | $ 9,544 | $ 9,904 | $ 5,828 | ||||||||
State and local taxes, net of federal income tax benefit, rate | 9.85% | 11.06% | 10.06% | ||||||||
Nondeductible expenses, amount | $ 8,175 | $ 680 | $ 457 | ||||||||
Nondeductible expenses, rate | 8.44% | 0.76% | 0.79% | ||||||||
Stock options, amount | $ (302) | ||||||||||
Stock options, rate | (0.31%) | ||||||||||
Excess tax deduction on equity awards, amount | $ (467) | $ (59) | |||||||||
Excess tax deduction on equity awards, rate | (0.52%) | (0.10%) | |||||||||
Tax-exempt income, net amount | $ (106) | $ (51) | |||||||||
Tax-exempt income, net rate | (0.11%) | (0.06%) | |||||||||
Other, amount | $ (187) | $ 139 | $ 63 | ||||||||
Other, rate | (0.20%) | 0.15% | 0.11% | ||||||||
Effective income tax expense, amount | $ 9,021 | $ 10,991 | $ 10,442 | $ 7,019 | $ 9,165 | $ 7,994 | $ 6,229 | $ 5,627 | $ 37,473 | $ 29,015 | $ 18,452 |
Effective income tax expense, rate | 38.67% | 32.39% | 31.86% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
INCOME TAXES | ||
Unrecognized tax benefits | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Interest rate | 4.58% | ||
Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding balance of note payable to related party | $ 780,000 | ||
Executive Officer [Member] | Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of note payable to related party | $ 780,000 | ||
Interest rate | 1.09% | 2.10% | |
Maturity date | Aug. 15, 2026 | Aug. 15, 2021 | |
Outstanding balance of note payable to related party | $ 780,000 | $ 780,000 | |
Pasl Holding Llc [Member] | Principal Officers, Directors, And Their Affiliates [Member] | |||
Debt Instrument [Line Items] | |||
Deposits from related parties | $ 4,600,000 | $ 7,300,000 |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 958,220 | $ 950,996 |
Amount transfer from level 1 to level 2 | 0 | 0 |
Amount transfer from level 2 to level 1 | 0 | 0 |
Fair value assets measured at fair value on a non-recurring basis | 0 | 0 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value liability | 0 | |
Carrying Amount | U.S. Government agency securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 59,372 | 66,334 |
Carrying Amount | U.S. State and Municipal securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 9,212 | 11,499 |
Carrying Amount | Residential MBS | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 338,548 | 466,551 |
Carrying Amount | Commercial MBS | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 34,850 | 17,627 |
Carrying Amount | Asset-backed Securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3,765 | 4,613 |
Carrying Amount | CRA mutual fund | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 2,048 | 2,273 |
Carrying Amount | Derivative assets - interest rate cap | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3,385 | |
Fair Value, Inputs, Level 1 | CRA mutual fund | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 2,048 | 2,273 |
Fair Value, Inputs, Level 2 | U.S. Government agency securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 59,372 | 66,334 |
Fair Value, Inputs, Level 2 | U.S. State and Municipal securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 9,212 | 11,499 |
Fair Value, Inputs, Level 2 | Residential MBS | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 338,548 | 466,551 |
Fair Value, Inputs, Level 2 | Commercial MBS | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 34,850 | 17,627 |
Fair Value, Inputs, Level 2 | Asset-backed Securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3,765 | 4,613 |
Fair Value, Inputs, Level 2 | Derivative assets - interest rate cap | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 0 | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Securities available for sale | $ 445,747 | $ 566,624 |
Securities held to maturity | 437,300 | 380,100 |
Other investments | ||
FRB Stock | 11,400 | 7,400 |
FHLB Stock | 9,200 | 3,100 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 2,422,151 | 3,668,673 |
Time deposits | 52,063 | 78,986 |
Federal funds purchased | 150,000 | |
Federal Home Loan Bank of New York advances | 100,000 | |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 26,780 | 28,864 |
Overnight deposits | 230,638 | 2,330,486 |
Securities held to maturity | 510,425 | 382,099 |
Loans, net | 4,840,523 | 3,697,200 |
Other investments | ||
FRB Stock | 11,421 | 7,430 |
FHLB Stock | 9,191 | 3,070 |
Disability Fund | 1,000 | 1,000 |
Time deposits at banks | 498 | |
CRA - CD | 498 | |
Receivables from prepaid card programs, net | 85,605 | 39,864 |
Accrued interest receivable | 24,107 | 15,195 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 2,422,151 | 3,668,673 |
Money market and savings deposits | 2,803,698 | 2,687,913 |
Time deposits | 52,063 | 78,986 |
Federal funds purchased | 150,000 | |
Federal Home Loan Bank of New York advances | 100,000 | |
Trust preferred securities payable | 20,620 | 20,620 |
Subordinated debt, net of issuance cost | 24,712 | |
Prepaid debit cardholder balances | 10,579 | 8,847 |
Accrued interest payable | 728 | 746 |
Secured Borrowings | 7,725 | 32,461 |
Total Fair Value | ||
Financial assets: | ||
Cash and due from banks | 26,780 | 28,864 |
Overnight deposits | 230,638 | 2,330,486 |
Securities held to maturity | 437,290 | 380,108 |
Loans, net | 4,737,007 | 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 | 85,605 | 39,864 |
Accrued interest receivable | 24,107 | 15,195 |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 2,422,151 | 3,668,673 |
Money market and savings deposits | 2,803,698 | 2,687,913 |
Time deposits | 51,058 | 79,187 |
Federal funds purchased | 150,000 | |
Federal Home Loan Bank of New York advances | 100,000 | |
Trust preferred securities payable | 19,953 | 19,997 |
Subordinated debt, net of issuance cost | 25,125 | |
Prepaid debit cardholder balances | 10,579 | 8,847 |
Accrued interest payable | 728 | 746 |
Secured Borrowings | 7,725 | 32,507 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Cash and due from banks | 26,780 | 28,864 |
Overnight deposits | 230,638 | 2,330,486 |
Other investments | ||
Time deposits at banks | 498 | |
CRA - CD | 498 | |
Financial liabilities: | ||
Noninterest-bearing demand deposits | 2,422,151 | 3,668,673 |
Money market and savings deposits | 2,803,698 | 2,687,913 |
Accrued interest payable | 112 | 5 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Securities held to maturity | 437,290 | 380,108 |
Other investments | ||
Disability Fund | 1,000 | 1,000 |
Accrued interest receivable | 964 | 892 |
Financial liabilities: | ||
Time deposits | 51,058 | 79,187 |
Federal funds purchased | 150,000 | |
Federal Home Loan Bank of New York advances | 100,000 | |
Subordinated debt, net of issuance cost | 25,125 | |
Accrued interest payable | 293 | 633 |
Secured Borrowings | 7,725 | 32,507 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Loans, net | 4,737,007 | 3,721,619 |
Other investments | ||
Receivables from prepaid card programs, net | 85,605 | 39,864 |
Accrued interest receivable | 23,143 | 14,303 |
Financial liabilities: | ||
Trust preferred securities payable | 19,953 | 19,997 |
Prepaid debit cardholder balances | 10,579 | 8,847 |
Accrued interest payable | $ 323 | $ 108 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | |
Stockholders Equity Note [Line Items] | |||
Redemption of subordinated notes | $ 162,687 | ||
Common stock, shares outstanding | 10,920,569 | 10,949,965 | |
Series F, Class B Non-voting Preferred Stock | |||
Stockholders Equity Note [Line Items] | |||
Preferred stock, par value | $ 0.01 | ||
Preferred stock, shares outstanding | 272,636 | ||
Common Stock | |||
Stockholders Equity Note [Line Items] | |||
Net issuance of common stock under stock compensation plans (in shares) | 2,300,000 | 2,300,000 | |
Stock price | $ 75 | ||
Redemption of subordinated notes | $ 162,700 |
STOCK COMPENSATION PLAN (Summar
STOCK COMPENSATION PLAN (Summary of the Status of the Stock Option Plan) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Options | ||
Outstanding, beginning of year | 231,000 | |
Exercised | (10,800) | |
Outstanding, end of year | 220,200 | 231,000 |
Options vested and exercisable at year-end | 220,200 | |
Weighted Average Exercise Price | ||
Outstanding, beginning of year | $ 18 | |
Exercised | 18 | |
Outstanding, end of year | 18 | $ 18 |
Options vested and exercisable at year-end | $ 18 | |
Weighted average remaining contractual life (years) | 1 year 4 months 28 days | |
Weighted average intrinsic value | $ 40.67 | |
Intrinsic value of exercises | $ 417,000 | $ 0 |
STOCK COMPENSATION PLAN (Summ_2
STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details) - Restricted stock awards - $ / shares | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Number of shares, Outstanding, beginning of period | 90,999 | 76,289 | 104,838 | |
Number of shares, Granted | 1,785 | 83,151 | 78,582 | 62,092 |
Number of shares, Forfeited | (578) | (10,200) | (31,781) | |
Number of shares, Vested | (44,010) | (53,672) | (58,860) | |
Number of shares, Outstanding at end of period | 76,289 | 129,562 | 90,999 | 76,289 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted Average Grant Date fair Value, beginning of period | $ 47.35 | $ 37.01 | $ 29.86 | |
Weighted Average Grant Date fair Value, Granted | 102.49 | 50.80 | 44.80 | |
Weighted Average Grant Date fair Value, Forfeited | 92.44 | 48.09 | 38.24 | |
Weighted Average Grant Date fair Value, Vested | 37.12 | 37.57 | 31.83 | |
Weighted Average Grant Date fair Value, at end of period | $ 37.01 | $ 86.01 | $ 47.35 | $ 37.01 |
STOCK COMPENSATION PLAN (Detail
STOCK COMPENSATION PLAN (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2022 | Jan. 31, 2019 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Outstanding shares | 220,200 | 231,000 | ||||||||||
Exercise of stock options (in shares) | 10,800 | |||||||||||
Intrinsic value of exercises | $ 417,000 | $ 0 | ||||||||||
Proceeds from exercise of stock options | 194,000 | |||||||||||
Equity Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation expense recognized | 1,900,000 | 1,900,000 | ||||||||||
Restricted stock awards | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation cost related to non-vested stock options | 6,100,000 | |||||||||||
Compensation cost related to stock awards | $ 4,500,000 | $ 2,400,000 | $ 1,500,000 | |||||||||
Number of shares, Granted | 1,785 | 83,151 | 78,582 | 62,092 | ||||||||
Number of PRSUs forfeited | 578 | 10,200 | 31,781 | |||||||||
Remaining unrecognized compensation expense recognition period | 2 years 7 months 24 days | |||||||||||
Fair value of shares vested | $ 3,600,000 | $ 2,000,000 | $ 2,100,000 | |||||||||
Restricted stock awards | Key Personnel | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares, Granted | 72,025 | 78,582 | 60,307 | |||||||||
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 | $ 0 | |||||||||||
Compensation cost related to stock awards | 300,000 | 410,000 | 400,000 | |||||||||
Number of shares, Granted | 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 | |||||||||||
Number of PRSUs awarded | 90,000 | |||||||||||
Weighted average service inception date fair value of award share in amount | $ 6,000,000 | |||||||||||
Equity Incentive Plan 2019 | Performance-Based Restricted Stock Units (PRSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of PRSUs awarded | 90,000 | |||||||||||
Equity Incentive Plan 2009 | Performance-Based Restricted Stock Units (PRSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation expense recognized | $ 1,400,000 | |||||||||||
Equity Incentive Plan 2022 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based payment award, shares authorized, maximum | 358,000 | |||||||||||
Compensation cost related to stock awards | $ 0 | 0 | ||||||||||
Equity Incentive Plan 2022 | 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% | |||||||||||
Equity Incentive Plan 2022 | 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 2022 | 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 2022 | Stock Option | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of exercise price to the fair market value | 100% | |||||||||||
Equity Incentive Plan 2022 | 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 2022 | Performance-Based Restricted Stock Units (PRSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of PRSUs forfeited | 20,800 | |||||||||||
Vested accerlerated shares | 30,000 | |||||||||||
Equity Incentive Plan 2023 | Performance-Based Restricted Stock Units (PRSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vested accerlerated shares | 29,200 | |||||||||||
Equity Incentive Plan 2024 | Performance-Based Restricted Stock Units (PRSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vested accerlerated shares | 30,800 |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
EMPLOYEE BENEFIT PLAN | ||
Employer discretionary contribution amount | $ 889,000 | $ 774,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Outstanding following off-balance-sheet financial instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 94,632 | $ 89,664 |
Variable Rate | 364,908 | 346,115 |
Unused commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 40,685 | 39,676 |
Variable Rate | 364,908 | 346,115 |
Standby and commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 53,947 | 49,988 |
Variable Rate | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Amount of off-balance-sheet financial instruments | $ 94,632 | $ 89,664 | |
Pre-tax charge | $ 35,000 | ||
Minimum | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Fixed interest rate off-balance-sheet financial instruments | 3% | 3% | |
Variable interest rate off-balance-sheet financial instrument | 6% | 6% | |
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 | 8.50% | 8.50% | |
Variable interest rate off-balance-sheet financial instrument | 11.50% | 11.50% | |
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 | $ 53,947 | $ 49,988 | |
Amount of off-balance-sheet financial instruments collateral received | $ 28,700 | $ 29,600 |
REGULATORY CAPITAL (Summary of
REGULATORY CAPITAL (Summary of actual capital amounts and ratios) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage ratio (to average assets), Actual Amount | $ 641,082 | $ 575,380 |
Tier 1 leverage ratio (to average assets), Actual Ratio | 0.102 | 0.085 |
Tier 1 leverage ratio (to average assets), For Capital Adequacy Amount | $ 250,963 | $ 270,863 |
Tier 1 leverage ratio (to average assets), For Capital Adequacy Ratio | 0.040 | 0.040 |
Tier 1 common equity (to risk-weighted assets), Actual Amount | $ 620,462 | $ 554,760 |
Tier 1 common equity (to risk-weighted assets), Actual Ratio | 0.121 | 0.141 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Amount | $ 230,879 | $ 177,646 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Ratio | 0.045% | 0.045% |
Tier 1 common equity (to risk-weighted assets), Minimum Capital Conservation Buffer | 0.025 | 0.025 |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 641,082 | $ 575,380 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 0.125 | 0.146 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Amount | $ 307,838 | $ 236,861 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Ratio | 0.060 | 0.060 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Conservation Buffer | 0.025 | 0.025 |
Total capital (to risk-weighted assets), Actual Amount | $ 686,139 | $ 635,002 |
Total capital (to risk-weighted assets), Actual Ratio | 0.134 | 0.161 |
Total capital (to risk-weighted assets), For Capital Adequacy Amount | $ 410,451 | $ 315,815 |
Total capital (to risk-weighted assets), For Capital Adequacy Ratio | 0.080 | 0.080 |
Total capital (to risk-weighted assets), Minimum Capital Conservation Buffer | 0.025 | 0.025 |
Percentage of capital conversion buffer | 0.054% | 0.081% |
Metropolitan Commercial Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage ratio (to average assets), Actual Amount | $ 628,825 | $ 566,835 |
Tier 1 leverage ratio (to average assets), Actual Ratio | 0.100 | 0.084 |
Tier 1 leverage ratio (to average assets), For Capital Adequacy Amount | $ 250,920 | $ 270,800 |
Tier 1 leverage ratio (to average assets), For Capital Adequacy Ratio | 0.040 | 0.040 |
Tier 1 leverage ratio (to average assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 313,650 | $ 338,499 |
Tier 1 leverage ratio (to average assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 0.050 | 0.050 |
Tier 1 common equity (to risk-weighted assets), Actual Amount | $ 628,825 | $ 566,835 |
Tier 1 common equity (to risk-weighted assets), Actual Ratio | 0.123 | 0.144 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Amount | $ 230,815 | $ 177,582 |
Tier 1 common equity (to risk-weighted assets), For Capital Adequacy Ratio | 0.045% | 0.045% |
Tier 1 common equity (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 333,399 | $ 256,508 |
Tier 1 common equity (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 0.065% | 0.065% |
Tier 1 common equity (to risk-weighted assets), Minimum Capital Conservation Buffer | 0.025 | 0.025 |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 628,825 | $ 566,835 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 0.123 | 0.144 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Amount | $ 307,753 | $ 236,777 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy Ratio | 0.060 | 0.060 |
Tier 1 capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 410,337 | $ 315,702 |
Tier 1 capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 0.080 | 0.080 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Conservation Buffer | 0.025 | 0.025 |
Total capital (to risk-weighted assets), Actual Amount | $ 673,876 | $ 601,740 |
Total capital (to risk-weighted assets), Actual Ratio | 0.131 | 0.152 |
Total capital (to risk-weighted assets), For Capital Adequacy Amount | $ 410,337 | $ 315,702 |
Total capital (to risk-weighted assets), For Capital Adequacy Ratio | 0.080 | 0.080 |
Total capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Amount | $ 512,922 | $ 394,628 |
Total capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Regulations Ratio | 0.100 | 0.100 |
Total capital (to risk-weighted assets), Minimum Capital Conservation Buffer | 0.025 | 0.025 |
Percentage of capital conversion buffer | 0.051% | 0.073% |
EARNINGS PER COMMON SHARE (Comp
EARNINGS PER COMMON SHARE (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic | |||||||||||
Net income | $ (7,740) | $ 24,955 | $ 23,189 | $ 19,021 | $ 18,887 | $ 16,215 | $ 13,336 | $ 12,117 | $ 59,425 | $ 60,555 | $ 39,466 |
Less: Earnings allocated to participating securities | (141) | (739) | (344) | ||||||||
Net income available to common stockholders | $ 59,284 | $ 59,816 | $ 39,122 | ||||||||
Weighted average common shares outstanding including participating securities | 10,955,077 | 9,123,037 | 8,293,677 | ||||||||
Less: Weighted average participating securities | (26,056) | (111,337) | (72,248) | ||||||||
Weighted average common shares outstanding | 10,929,021 | 9,011,700 | 8,221,429 | ||||||||
Basic earnings (loss) per common share (in dollars per share) | $ (0.71) | $ 2.28 | $ 2.12 | $ 1.74 | $ 1.74 | $ 1.82 | $ 1.59 | $ 1.46 | $ 5.42 | $ 6.64 | $ 4.76 |
Diluted | |||||||||||
Net income allocated to common shareholders | $ 59,284 | $ 59,816 | $ 39,122 | ||||||||
Weighted average common shares outstanding for basic earnings per common share | 10,929,021 | 9,011,700 | 8,221,429 | ||||||||
Average shares and dilutive potential common shares | 11,200,184 | 9,272,822 | 8,398,444 | ||||||||
Diluted earnings (loss) per common share (in dollars per share) | $ (0.71) | $ 2.23 | $ 2.07 | $ 1.69 | $ 1.69 | $ 1.77 | $ 1.55 | $ 1.43 | $ 5.29 | $ 6.45 | $ 4.66 |
Stock Option | |||||||||||
Diluted | |||||||||||
Add: Dilutive effects of assumed exercise of stock options | 170,648 | 170,792 | 103,463 | ||||||||
Performance-Based Restricted Stock Units (PRSUs) | |||||||||||
Diluted | |||||||||||
Dilutive effects of assumed vesting units | 56,711 | 51,581 | 73,552 | ||||||||
Restricted stock awards | |||||||||||
Diluted | |||||||||||
Dilutive effects of assumed vesting units | 43,804 | 38,749 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (7,504) | ||
Unrealized holding gain (loss) arising during the period | (76,934) | $ (14,722) | $ 4,877 |
Reclassification adjustment for gains included in net income | (609) | (3,286) | |
Tax effect | 23,353 | 4,795 | (514) |
Net of tax | (53,581) | (10,536) | 1,077 |
Unrealized gain (loss) arising during the period | 11,704 | 2,957 | (1,925) |
Reclassification adjustment for gains included in net income | (1,949) | ||
Tax effect | (2,968) | (898) | 614 |
Net of tax | 6,787 | 2,059 | (1,311) |
Net current period other comprehensive income (loss) | (46,794) | (8,477) | (234) |
Ending balance | (54,298) | (7,504) | |
AOCI (Loss), Net | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (7,504) | 973 | 1,207 |
Net current period other comprehensive income (loss) | (46,794) | (8,477) | (234) |
Ending balance | $ (54,298) | $ (7,504) | $ 973 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Licensing fees | $ (10,477) | $ (8,606) | $ (9,653) | ||||||||
Income tax (expense) benefit | $ (9,021) | $ (10,991) | $ (10,442) | $ (7,019) | $ (9,165) | $ (7,994) | $ (6,229) | $ (5,627) | (37,473) | (29,015) | (18,452) |
Total reclassifications, net of income tax | 59,425 | 60,555 | 39,466 | ||||||||
Reclassifications out of accumulated other comprehensive (loss) income | AFS Securities | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Realized gain on sale | 609 | 3,286 | |||||||||
Income tax (expense) benefit | (197) | (1,036) | |||||||||
Total reclassifications, net of income tax | $ 412 | $ 2,250 | |||||||||
Reclassifications out of accumulated other comprehensive (loss) income | Cash Flow Hedges | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Licensing fees | 1,949 | ||||||||||
Income tax (expense) benefit | (599) | ||||||||||
Total reclassifications, net of income tax | $ 1,350 |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Proceeds from sales and calls of securities and associated gains and losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||
Proceeds from Sales and Calls of Securities | $ 0 | $ 43.2 | $ 141.4 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of non-interest income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-interest income | $ 26,851 | $ 23,150 | $ 13,669 |
Service charges on deposit accounts | |||
Non-interest income | 5,747 | 4,755 | 3,728 |
Global payments revenue | |||
Non-interest income | 19,341 | 16,445 | 8,464 |
Other service charges and fees | |||
Non-interest income | $ 1,763 | $ 1,950 | $ 1,477 |
DERIVATIVES - Derivative positi
DERIVATIVES - Derivative position (Details) - Derivatives designated as hedging instruments - USD ($) $ in Thousands | Dec. 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 | $ 300,000 | |
Fair value | 3,385 | ||
Derivatives unrecognized, termination value | $ 12,700 | ||
Other assets. | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount, derivative asset | 300,000 | ||
Fair value | $ 3,385 |
DERIVATIVES - Cash flow hedge a
DERIVATIVES - Cash flow hedge accounting (Details) - Derivatives designated as hedging instruments - Interest rate caps related to customer deposits - Cash flow hedge - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of gain (loss) recognized in OCI, net of tax | $ 8,131 | $ 2,059 | $ (1,311) |
Amount of gain (loss) reclassified from OCI into income | $ 1,949 | ||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Licensing Fees |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||||
Cash and due from banks | $ 26,780 | $ 28,864 | ||
Loans, net of allowance for loan losses | 4,795,647 | 3,697,200 | ||
Other assets | 148,337 | 56,950 | ||
Total assets | 6,267,337 | 7,116,358 | ||
Liabilities and Stockholders' Equity | ||||
Trust preferred securities | 20,620 | 20,620 | ||
Subordinated debt payable, net of issuance costs | 24,712 | |||
Other liabilities | 124,604 | 37,157 | ||
Total liabilities | 5,691,440 | 6,559,369 | ||
Stockholders' equity: | ||||
Common stock | 109 | 109 | ||
Surplus | 389,276 | 382,999 | ||
Retained earnings | 240,810 | 181,385 | ||
Accumulated other comprehensive income (loss), net of tax | (54,298) | (7,504) | ||
Total equity | 575,897 | 556,989 | $ 340,787 | $ 299,124 |
Total liabilities and stockholders' equity | 6,267,337 | 7,116,358 | ||
Parent Company | ||||
Assets | ||||
Cash and due from banks | 9,476 | 32,328 | ||
Loans, net of allowance for loan losses | 776 | 776 | ||
Investments | 620 | 620 | ||
Investment in subsidiary bank, at equity | 584,522 | 569,327 | ||
Other assets | 1,520 | 6 | ||
Total assets | 596,914 | 603,057 | ||
Liabilities and Stockholders' Equity | ||||
Trust preferred securities | 20,620 | 20,620 | ||
Subordinated debt payable, net of issuance costs | 24,712 | |||
Other liabilities | 397 | 736 | ||
Total liabilities | 21,017 | 46,068 | ||
Stockholders' equity: | ||||
Common stock | 109 | 109 | ||
Surplus | 389,276 | 382,999 | ||
Retained earnings | 240,810 | 181,385 | ||
Accumulated other comprehensive income (loss), net of tax | (54,298) | (7,504) | ||
Total equity | 575,897 | 556,989 | ||
Total liabilities and stockholders' equity | $ 596,914 | $ 603,057 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION (Condensed Statements of Income) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income: | |||||||||||
Loans | $ 231,851,000 | $ 164,528,000 | $ 136,497,000 | ||||||||
Securities and money market funds | 34,000 | ||||||||||
Total interest income | $ 80,554,000 | $ 70,057,000 | $ 59,158,000 | $ 50,970,000 | $ 49,110,000 | $ 45,018,000 | $ 41,050,000 | $ 38,106,000 | 260,739,000 | 173,284,000 | 143,097,000 |
Interest expense | |||||||||||
Trust preferred securities | 799,000 | 424,000 | 572,000 | ||||||||
Subordinated debt | 605,000 | 1,618,000 | 1,618,000 | ||||||||
Total interest expense | 16,655,000 | 6,732,000 | 3,856,000 | 4,338,000 | 4,300,000 | 4,226,000 | 4,077,000 | 3,680,000 | 31,581,000 | 16,283,000 | 18,176,000 |
Net interest expense | 63,899,000 | 63,325,000 | 55,302,000 | 46,632,000 | 44,810,000 | 40,792,000 | 36,973,000 | 34,426,000 | 229,158,000 | 157,001,000 | 124,921,000 |
Provision for loan losses | 2,309,000 | 2,007,000 | 2,400,000 | 3,400,000 | 501,000 | 490,000 | 1,875,000 | 950,000 | 10,116,000 | 3,816,000 | 9,488,000 |
Net interest expense after provision for loan losses | 61,590,000 | 61,318,000 | 52,902,000 | 43,232,000 | 44,309,000 | 40,302,000 | 35,098,000 | 33,476,000 | 219,042,000 | 153,185,000 | 115,433,000 |
Other expense | 13,354,000 | 8,940,000 | 7,178,000 | ||||||||
Income before income tax expense | 1,281,000 | 35,946,000 | 33,631,000 | 26,040,000 | 28,052,000 | 24,209,000 | 19,565,000 | 17,744,000 | 96,898,000 | 89,570,000 | 57,918,000 |
Income tax benefit | 9,021,000 | 10,991,000 | 10,442,000 | 7,019,000 | 9,165,000 | 7,994,000 | 6,229,000 | 5,627,000 | 37,473,000 | 29,015,000 | 18,452,000 |
Net Income | $ (7,740,000) | $ 24,955,000 | $ 23,189,000 | $ 19,021,000 | $ 18,887,000 | $ 16,215,000 | $ 13,336,000 | $ 12,117,000 | 59,425,000 | 60,555,000 | 39,466,000 |
Comprehensive income | 12,631,000 | 52,078,000 | 39,232,000 | ||||||||
Parent Company | |||||||||||
Income: | |||||||||||
Loans | 9,000 | 14,000 | 17,000 | ||||||||
Securities and money market funds | 25,000 | 13,000 | 18,000 | ||||||||
Total interest income | 34,000 | 27,000 | 35,000 | ||||||||
Interest expense | |||||||||||
Trust preferred securities | 823,000 | 438,000 | 590,000 | ||||||||
Subordinated debt | 605,000 | 1,618,000 | 1,618,000 | ||||||||
Total interest expense | 1,428,000 | 2,056,000 | 2,208,000 | ||||||||
Net interest expense | (1,394,000) | (2,029,000) | (2,173,000) | ||||||||
Net interest expense after provision for loan losses | (1,394,000) | (2,029,000) | (2,173,000) | ||||||||
Other expense | 2,767,000 | 1,288,000 | 2,338,000 | ||||||||
Loss before undistributed earnings of subsidiary bank | (4,161,000) | (3,317,000) | (4,511,000) | ||||||||
Equity in undistributed earnings of subsidiary bank | 62,357,000 | 62,798,000 | 42,844,000 | ||||||||
Income before income tax expense | 58,196,000 | 59,481,000 | 38,333,000 | ||||||||
Income tax benefit | 1,229,000 | 1,074,000 | 1,133,000 | ||||||||
Net Income | 59,425,000 | 60,555,000 | 39,466,000 | ||||||||
Comprehensive income | $ 12,631,000 | $ 52,078,000 | $ 39,232,000 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION (Condensed Statement of Cash Flows) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows From Operating Activities | |||||||||||
Net Income | $ (7,740,000) | $ 24,955,000 | $ 23,189,000 | $ 19,021,000 | $ 18,887,000 | $ 16,215,000 | $ 13,336,000 | $ 12,117,000 | $ 59,425,000 | $ 60,555,000 | $ 39,466,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Cash dividend from subsidiary bank | 33,000 | 22,000 | 41,000 | ||||||||
Other assets | 3,407,000 | 6,167,000 | (5,121,000) | ||||||||
Increase (decrease) in other liabilities | 43,179,000 | (25,200,000) | 37,572,000 | ||||||||
Net cash provided by (used in) operating activities | 85,891,000 | 37,277,000 | 87,270,000 | ||||||||
Cash Flows From Investing Activities | |||||||||||
Net cash provided by (used in) investing activities | (1,229,350,000) | (1,302,997,000) | (489,035,000) | ||||||||
Cash Flows From Financing Activities: | |||||||||||
Redemption of common stock for tax withholdings for restricted stock vesting | (1,559,000) | (3,385,000) | (881,000) | ||||||||
Redemption of subordinated debt | 24,712,000 | ||||||||||
Proceeds from issuance of common stock, net | 162,687,000 | ||||||||||
Proceeds from exercise of stock options | 194,000 | ||||||||||
Net cash provided by (used in) financing activities | (958,473,000) | 2,760,765,000 | 876,850,000 | ||||||||
Increase (decrease) in cash and cash equivalents | (2,101,932,000) | 1,495,045,000 | 475,085,000 | ||||||||
Cash and cash equivalents at the beginning of the period | 2,359,350,000 | 864,305,000 | 2,359,350,000 | 864,305,000 | 389,220,000 | ||||||
Cash and cash equivalents at the end of the period | 257,418,000 | 2,359,350,000 | 257,418,000 | 2,359,350,000 | 864,305,000 | ||||||
Parent Company | |||||||||||
Cash Flows From Operating Activities | |||||||||||
Net Income | 59,425,000 | 60,555,000 | 39,466,000 | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Undistributed earnings of subsidiary bank | (62,357,000) | (58,798,000) | (42,844,000) | ||||||||
Cash dividend from subsidiary bank | 4,000,000 | ||||||||||
Other operating adjustments | 6,351,000 | (746,000) | 2,438,000 | ||||||||
Net cash provided by (used in) operating activities | 3,419,000 | 5,011,000 | (940,000) | ||||||||
Cash Flows From Investing Activities | |||||||||||
Investments in subsidiary bank | (132,000,000) | ||||||||||
Net cash provided by (used in) investing activities | (132,000,000) | ||||||||||
Cash Flows From Financing Activities: | |||||||||||
Redemption of common stock for tax withholdings for restricted stock vesting | (1,559,000) | (3,385,000) | (881,000) | ||||||||
Redemption of subordinated debt | (24,712,000) | ||||||||||
Proceeds from issuance of common stock, net | 162,687,000 | ||||||||||
Net cash provided by (used in) financing activities | (26,271,000) | 159,302,000 | (881,000) | ||||||||
Increase (decrease) in cash and cash equivalents | (22,852,000) | 32,313,000 | (1,821,000) | ||||||||
Cash and cash equivalents at the beginning of the period | $ 32,328,000 | $ 15,000 | 32,328,000 | 15,000 | 1,836,000 | ||||||
Cash and cash equivalents at the end of the period | $ 9,476,000 | $ 32,328,000 | $ 9,476,000 | $ 32,328,000 | $ 15,000 |
UNAUDITED QUARTERLY FINANCIAL_3
UNAUDITED QUARTERLY FINANCIAL DATA (Selected Consolidated Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information (Unaudited) | |||||||||||
Interest income | $ 80,554 | $ 70,057 | $ 59,158 | $ 50,970 | $ 49,110 | $ 45,018 | $ 41,050 | $ 38,106 | $ 260,739 | $ 173,284 | $ 143,097 |
Interest expense | 16,655 | 6,732 | 3,856 | 4,338 | 4,300 | 4,226 | 4,077 | 3,680 | 31,581 | 16,283 | 18,176 |
Net interest income | 63,899 | 63,325 | 55,302 | 46,632 | 44,810 | 40,792 | 36,973 | 34,426 | 229,158 | 157,001 | 124,921 |
Provision for loan losses | 2,309 | 2,007 | 2,400 | 3,400 | 501 | 490 | 1,875 | 950 | 10,116 | 3,816 | 9,488 |
Net interest income after provision for loan losses | 61,590 | 61,318 | 52,902 | 43,232 | 44,309 | 40,302 | 35,098 | 33,476 | 219,042 | 153,185 | 115,433 |
Non-interest income | 6,350 | 5,818 | 6,998 | 7,427 | 7,057 | 5,891 | 6,156 | 4,593 | 26,593 | 23,697 | 17,003 |
Non-interest expense | 66,659 | 31,190 | 26,269 | 24,619 | 23,314 | 21,984 | 21,689 | 20,325 | 148,737 | 87,312 | 74,518 |
Income before income taxes | 1,281 | 35,946 | 33,631 | 26,040 | 28,052 | 24,209 | 19,565 | 17,744 | 96,898 | 89,570 | 57,918 |
Income tax expense | 9,021 | 10,991 | 10,442 | 7,019 | 9,165 | 7,994 | 6,229 | 5,627 | 37,473 | 29,015 | 18,452 |
Net Income | $ (7,740) | $ 24,955 | $ 23,189 | $ 19,021 | $ 18,887 | $ 16,215 | $ 13,336 | $ 12,117 | $ 59,425 | $ 60,555 | $ 39,466 |
Basic earnings (loss) per common share (in dollars per share) | $ (0.71) | $ 2.28 | $ 2.12 | $ 1.74 | $ 1.74 | $ 1.82 | $ 1.59 | $ 1.46 | $ 5.42 | $ 6.64 | $ 4.76 |
Diluted earnings (loss) per common share (in dollars per share) | $ (0.71) | $ 2.23 | $ 2.07 | $ 1.69 | $ 1.69 | $ 1.77 | $ 1.55 | $ 1.43 | $ 5.29 | $ 6.45 | $ 4.66 |