Metropolitan Bank Holding (MCB) 10-Q4 May 232023 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2023	May 02, 2023
Document And Entity Information (Abstract)
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Entity Registrant Name	Metropolitan Bank Holding Corp.
Entity File Number	001-38282
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	13-4042724
Entity Address, Address Line One	99 Park Avenue
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10016
City Area Code	212
Local Phone Number	659-0600
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	MCB
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,211,274
Entity Central Index Key	0001476034
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Cash and due from banks	$ 32,525	$ 26,780
Overnight deposits	266,978	230,638
Total cash and cash equivalents	299,503	257,418
Investment securities available-for-sale, at fair value	444,169	445,747
Investment securities held-to-maturity (estimated fair value of $436.1 million and $437.3 million at March 31, 2023 and December 31, 2022, respectively)	501,525	510,425
Equity investment securities, at fair value	2,087	2,048
Total securities	947,781	958,220
Other investments	27,099	22,110
Loans, net of deferred fees and costs	4,851,694	4,840,523
Allowance for credit losses	(47,752)	(44,876)
Net loans	4,803,942	4,795,647
Receivable from global payments business, net	83,787	85,605
Other assets	147,870	148,337
Total assets	6,309,982	6,267,337
Deposits
Noninterest-bearing demand deposits	2,122,606	2,422,151
Interest-bearing deposits	3,009,182	2,855,761
Total deposits	5,131,788	5,277,912
Federal funds purchased	195,000	150,000
Federal Home Loan Bank of New York advances	200,000	100,000
Trust preferred securities	20,620	20,620
Secured borrowings	7,689	7,725
Prepaid third-party debit cardholder balances	11,102	10,579
Other liabilities	135,896	124,604
Total liabilities	5,702,095	5,691,440
Stockholders' equity:
Common stock, $0.01 par value, 25,000,000 shares authorized, 11,211,274 and 10,949,965 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	112	109
Additional paid in capital	394,124	389,276
Decreased retained earnings	263,783	240,810
Accumulated other comprehensive income (loss), net of tax	(50,132)	(54,298)
Total stockholders' equity	607,887	575,897
Total liabilities and stockholders' equity	$ 6,309,982	$ 6,267,337

CONSOLIDATED STATEMENTS OF FI_2

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
Securities held to maturity	$ 436.1	$ 437.3
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	11,211,274	10,949,965
Common stock, shares outstanding	11,211,274	10,949,965

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest and dividend income
Loans, including fees	$ 75,960	$ 46,536
Securities
Taxable	4,445	3,341
Tax-exempt	50	51
Overnight deposits	2,484	915
Other interest and dividends	324	127
Total interest income	83,263	50,970
Interest expense
Deposits	22,373	3,625
Borrowed funds	2,026
Trust preferred securities	330	108
Subordinated debt		605
Total interest expense	24,729	4,338
Net interest income	58,534	46,632
Provision for credit losses	646	3,400
Net interest income after provision for credit losses	57,888	43,232
Non-interest income
Non-interest income	6,948	7,533
Other income	668	400
Total non-interest income	6,974	7,427
Non-interest expense
Compensation and benefits	16,255	13,421
Bank premises and equipment	2,344	2,116
Professional fees	4,187	1,474
Technology costs	1,313	1,399
Licensing fees	2,662	2,294
FDIC assessments	2,814	1,245
Regulatory settlement reserve	(2,500)
Other expenses	3,950	2,670
Total non-interest expense	31,025	24,619
Net income before income tax expense	33,837	26,040
Income tax expense	8,761	7,019
Net income	$ 25,076	$ 19,021
Earnings per common share
Basic earnings (in dollars per share)	$ 2.26	$ 1.74
Diluted earnings (in dollars per share)	$ 2.25	$ 1.69
Service charges on deposit accounts
Non-interest income
Non-interest income	$ 1,456	$ 1,370
Revenue, Product and Service [Extensible List]	Service charges on deposit accounts	Service charges on deposit accounts
Global payments revenue
Non-interest income
Non-interest income	$ 4,850	$ 5,657
Revenue, Product and Service [Extensible List]	Global payments revenue	Global payments revenue
Other service charges and fees
Non-interest income
Non-interest income	$ 642	$ 506

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net Income	$ 25,076	$ 19,021
Other comprehensive income:
Unrealized gain (loss) arising during the period	8,233	(32,195)
Tax effect	(2,514)	9,800
Net of tax	5,719	(22,395)
Cash flow hedges:
Unrealized gain (loss) arising during the period	(1,006)	8,776
Reclassification adjustment for gains included in net income	(1,235)
Tax effect	688	(2,689)
Net of tax	(1,553)	6,087
Total other comprehensive income (loss)	4,166	(16,308)
Comprehensive Income (Loss)	$ 29,242	$ 2,713

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings	AOCI (Loss), Net	Cumulative Effect, Period of Adoption, Adjustment	Total
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)	23,487
Employee and non-employee stock-based compensation		1,519					1,519
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting		(1,191)					(1,191)
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting (in shares)	(12,359)
Net Income				19,021			19,021
Other comprehensive income (loss)					(16,308)		(16,308)
Balance at Mar. 31, 2022	$ 109	383,327		200,406	(23,812)		560,030
Balance (in shares) at Mar. 31, 2022	10,931,697
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of changes in accounting principle							240,810
Balance at Dec. 31, 2022	$ 109	389,276	$ (2,103)	240,810	(54,298)	$ (2,103)	575,897
Balance (in shares) at Dec. 31, 2022	10,949,965
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuance of common stock under stock compensation plans	$ 3	3,962					3,965
Net issuance of common stock under stock compensation plans (in shares)	285,190
Employee and non-employee stock-based compensation		2,222					2,222
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting		(1,336)					(1,336)
Redemption of common stock for exercise of stock options and tax withholdings for restricted stock vesting (in shares)	(23,881)
Net Income				25,076			25,076
Other comprehensive income (loss)					4,166		4,166
Balance at Mar. 31, 2023	$ 112	$ 394,124		$ 263,783	$ (50,132)		607,887
Balance (in shares) at Mar. 31, 2023	11,211,274
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of changes in accounting principle							$ 263,783

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net income	$ 25,076	$ 19,021
Adjustments to reconcile net income to net cash:
Net depreciation amortization and accretion	872	1,161
Provision for credit losses	646	3,400
Stock-based compensation	2,222	1,519
Net change in deferred loan fees	362	1,037
Dividends earned on CRA fund	(13)	(6)
Unrealized (gain) loss on equity securities	(26)	106
Net change in:
Receivable from global payments, net	1,818	(22,265)
Third-party debit cardholder balances	523	15,245
Other assets	(2,645)	(1,692)
Other liabilities	10,193	13,356
Net cash provided by (used in) operating activities	39,028	30,882
Cash flows from investing activities
Loan originations, purchases and payments, net	(11,433)	(390,546)
Redemptions of other investments	53,998
Purchases of other investments	(58,488)	(3,991)
Purchase of securities held-for-investment		(95,822)
Proceeds from paydowns of securities available-for-sale	9,751	28,352
Proceeds from paydowns of securities held-to-maturity	8,741	9,858
Purchase of premises and equipment, net	(980)	(1,874)
Net cash provided by (used in) investing activities	1,589	(454,023)
Cash flows from financing activities
Proceeds from issuance of federal funds purchased	45,000
Proceeds from (repayments of) FHLB advances, net	100,000
Proceeds from exercise of stock options	3,964
Redemption of common stock for tax withholdings for restricted stock vesting	(1,336)	(1,191)
Redemption of subordinated debt		(24,712)
Proceeds from (repayments of) secured borrowings, net	(36)	(139)
Net increase (decrease) in deposits	(146,124)	(496,209)
Net cash provided by (used in) financing activities	1,468	(522,251)
Increase (decrease) in cash and cash equivalents	42,085	(945,392)
Cash and cash equivalents at the beginning of the period	257,418	2,359,350
Cash and cash equivalents at the end of the period	299,503	1,413,958
Cash paid for:
Interest	24,768	4,787
Income Taxes	$ 3,192	$ 2,725

ORGANIZATION

ORGANIZATION	3 Months Ended
ORGANIZATION	Mar. 31, 2023
ORGANIZATION
ORGANIZATION	N OTE 1 — ORGANIZATION Metropolitan Bank Holding Corp., a New York corporation (the “Company”), is a bank holding company whose principal activity is the ownership and management of Metropolitan Commercial Bank (the “Bank”), its wholly-owned subsidiary. The Company’s primary market is the New York metropolitan area. The Company provides a broad range of business, commercial and retail banking products and services to small businesses, middle-market enterprises, public entities and affluent individuals. See the “Glossary of Common Terms and Acronyms” for the definition of certain terms and acronyms used throughout this Form 10-Q. The Company’s primary lending products are CRE loans (including multi-family loans) and C&I 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, all of which 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 services to non-bank financial service companies, including serving as an issuing bank for third-party debit card programs, as well as providing other financial infrastructure, including cash settlement and custodian deposit services. The Company and the Bank are subject to the regulations of certain state and federal agencies and, accordingly, are periodically examined by those regulatory authorities. The Company’s business is affected by state and federal legislation and regulations.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
BASIS OF PRESENTATION	Mar. 31, 2023
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 2 — BASIS OF PRESENTATION The accounting and reporting policies of the Company conform with GAAP and predominant practices within the U.S. banking industry. The Unaudited Consolidated Financial Statements (“unaudited financial statements”) include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated. The unaudited financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q, Article 8 of Regulation S-X and predominant practices within the U.S. banking industry. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The unaudited financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim unaudited financial statements in conformity with GAAP, management has made estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods, and actual results could differ from those estimated. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, inflation and its related effects and changes in the financial condition of borrowers. Some items in the prior year financial statements may have been reclassified to conform to the current presentation. Reclassification had no effect on prior year net income or stockholders’ equity. The results of operations for the three months ended March 31, 2023 and 2022 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or for any other period. The unaudited financial statements presented in this report should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the SEC. Loans and the Allowance for Credit Losses 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. The Company adopted this guidance effective January 1, 2023 and recorded a cumulative effect adjustment that increased the allowance for credit losses for loans and loan commitments by $3.0 million, increased deferred tax assets by $777,000 and decreased retained earnings by $2.1 million, net of tax. The ACL for loans is measured on the loan’s amortized cost basis, excluding interest receivable, and is initially recognized upon origination or purchase of the loans, and subsequently remeasured on a recurring basis. The ACL is recognized as a contra-asset, and credit loss expense is recorded as provision for credit losses in the consolidated statements of operation. Loan losses are charged-off against the ACL when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the ACL. 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. The Company generally does not recognize an ACL on accrued interest receivables, consistent with its policy to reverse interest income when interest is 90 days or more past due. The Company also records an ACL on unfunded loan commitments, which is based on the same assumptions as funded loans and also considers the probability of funding. The ACL is recognized as a liability, and credit loss expense is recorded as provision for unfunded loan commitments within provision for credit losses in the consolidated statements of operation. Upon funding of the loan, any related ACL previously recorded on the unfunded amount is reversed and an ACL is subsequently recognized on the outstanding loan. To calculate the ACL for loans and loan commitments collectively evaluated, the Company uses models developed by a third party. The CRE, C&I, and Consumer lifetime loss rate models calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default considers the current unpaid balance, prepayment assumptions and utilization of expected utilization assumptions. Key assumptions used in the models include portfolio segmentation, prepayments, risk rating and a peer scalar, the expected utilization of unfunded commitments among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated and loss rates are subsequently applied to the pools as the loans have similar characteristics. Prepayment assumptions, if applicable, are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. The models employ mean reversion techniques to predict credit losses for loans that are expected to mature beyond the forecast period. To account for economic uncertainty, the Company uses multiple economic scenarios provided by the models in determining the ACL. The forecasts include various projections based on variables such as, Gross Domestic Product (“GDP”), interest rates, property price indices, and employment measures, among others. The forecasts are probability-weighted based on available information at the time of the calculation execution. Scenario weightings and model parameters are reviewed for each calculation and are subject to change. The CRE and CRE lifetime loss rate models were developed using the historical loss experience of all banks in the model’s developmental dataset. Banks in the model’s developmental dataset may have different loss experiences due to geography and portfolio as well as variances in operational and underwriting procedures from the Company, and therefore, the Company calibrates expected losses using a peer scalar function provided by the models. The peer scalar was calculated by examining the loss rates of peer banks that have similar asset bases and that operate in similar markets as the Company and comparing these peer group loss rates to the model results. The Company also considers qualitative adjustments to expected credit loss estimates for information not already captured in the quantitative loss estimation models. Qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Qualitative loss factors are based on the Company’s judgment of market, industry or business specific data, changes in loan composition, performance trends, regulatory changes, uncertainty of macroeconomic forecasts, and other asset specific risk characteristics. When loans do not share risk characteristics with other financial assets they are evaluated individually. Management applies its normal loan review procedures in making these judgments. Individually evaluated loans consist of impaired loans, loans past due 90 days, and loans modified due to financial difficulty. A loan is considered to be impaired when it was probable that the Company would be unable to collect all principal and interest amounts according to the contractual terms of the loan agreement. Impairment is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable and where the borrower is experiencing financial difficulty, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. Fair value is generally calculated based on the value of the underlying collateral less an appraisal discount and the estimated cost to sell. Prior to the adoption of ASU No. 2016-13 Prior to the adoption of ASU No. 2016-13, the allowance for loan losses was maintained at an amount management deemed adequate to cover probable incurred credit losses (the “incurred loss method”). The allowance for non-impaired loans was based on historical loss experience adjusted for current factors. The historical loss experience was determined by portfolio segment and was based on the actual loss history experienced by the Company over a rolling two-year period. This actual loss experience was supplemented with other qualitative and economic factors based on the risks present for each portfolio segment. These qualitative and economic factors included economic and business conditions, the nature and volume of the portfolio, and lending terms and volume and severity of past due loans. A loan was considered to be impaired when it was probable that the Company would be unable to collect all principal and interest amounts according to the contractual terms of the loan agreement. Management applied its normal loan review procedures in making these judgments. Impaired loans include individually classified non-accrual loans and TDRs. Impairment was determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For loans that were collateral dependent, the fair value of the collateral was used to determine the fair value of the loan. The fair value of the collateral was determined based on recent appraised values. The fair value of the collateral or present value of expected cash flows was compared to the carrying value to determine if any write-down or specific loan loss allowance allocation was required. Loan Modifications In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (ASU 326): Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminated the accounting guidance for TDRs by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The Company adopted ASU 2022-02 effective January 1, 2023 and the impact was immaterial. Prior to the adoption of ASU 2022-02, when a loan was modified and concessions were 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 was known as a TDR. TDRs were separately identified for impairment disclosures and were measured at the present value of estimated future cash flows using the loan’s effective rate at inception. Securities and the Allowance for Credit Losses Effective January 1, 2023, the Company estimates and recognizes an ACL for HTM debt securities pursuant to ASU No. 2016-13. The Company has a zero loss expectation for its HTM securities portfolio, except for U.S. State and Municipal securities, and therefore it is not required to estimate an ACL related to these securities. For HTM securities that do not have a zero loss expectation, the ACL is based on the security’s amortized cost, excluding interest receivable, and represents the portion of the amortized cost that the Company does not expect to collect over the life of the security. The ACL is determined using average industry credit ratings and historical loss experience, and is initially recognized upon acquisition of the securities, and subsequently remeasured on a recurring basis. The Company evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit impairment. In performing an assessment of whether any decline in fair value is due to a credit loss, the Company considers the extent to which the fair value is less than the amortized cost, changes in credit ratings, any adverse economic conditions, as well as all relevant information at the individual security level, such as credit deterioration of the issuer, explicit or implicit guarantees by the federal government or collateral underlying the security. If it is determined that the decline in fair value was due to credit losses, an ACL is recorded, limited to the amount the fair value is less than the amortized cost basis. The non-credit related decrease in the fair value, such as a decline due to changes in market interest rates, is recorded in other comprehensive income, net of tax. The Company recognizes a credit impairment if the Company has the intent to sell the security, or it is more likely than not that the Bank will be required to sell the security before recovery of its amortized cost. Prior to the adoption of ASU No. 2016-13 Management evaluated AFS and HTM debt 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 considered the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assessed whether it intended to sell, or it is more likely than not that it would 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 was recognized as impairment through earnings. For securities that did not meet the aforementioned criteria, the amount of impairment would be 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.

SUMMARY OF RECENT ACCOUNTING PR

SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS	Mar. 31, 2023
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 3 — SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS 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	3 Months Ended
INVESTMENT SECURITIES	Mar. 31, 2023
INVESTMENT SECURITIES
INVESTMENT SECURITIES	NOTE 4 — INVESTMENT SECURITIES The following tables summarize 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 March 31, 2023 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,996 $ — $ (7,760) $ 60,236 U.S. State and Municipal securities 11,611 — (2,074) 9,537 Residential MBS 404,577 481 (69,384) 335,674 Commercial MBS 37,043 312 (2,056) 35,299 Asset-backed securities 3,627 — (204) 3,423 Total securities available-for-sale $ 524,854 $ 793 $ (81,478) $ 444,169 Held-to-Maturity Securities: U.S. Treasury securities $ 29,863 $ — $ (1,854) $ 28,009 U.S. State and Municipal securities 15,753 — (2,096) 13,657 Residential MBS 447,803 — (60,302) 387,501 Commercial MBS 8,106 — (1,142) 6,964 Total securities held-to-maturity $ 501,525 $ — $ (65,394) $ 436,131 Equity Investments: CRA Mutual Fund $ 2,370 $ — $ (283) $ 2,087 Total equity investment securities $ 2,370 $ — $ (283) $ 2,087 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 There were no proceeds from sales and calls of AFS securities for the three months ended March 31, 2023 and 2022. 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 investments in mutual funds, have been excluded from the table. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties (in thousands): Held-to-Maturity Available-for-Sale At March 31, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 29,863 28,009 64,575 58,161 After 5 years through 10 years 9,428 8,195 25,554 24,246 After 10 years 462,234 399,927 434,725 361,762 Total Securities $ 501,525 $ 436,131 $ 524,854 $ 444,169 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 At March 31, 2023 and December 31, 2022, $921.5 million and $25.0 million, respectively, of securities were pledged to support borrowing capacity from the Federal Reserve Bank. At March 31, 2023, debt securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (in thousands): Less than 12 Months 12 Months or More Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At March 31, 2023 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: U.S. Government agency securities $ — $ — $ 60,236 $ (7,760) $ 60,236 $ (7,760) U.S. State and Municipal securities — — 9,537 (2,074) 9,537 (2,074) Residential MBS 699 (32) 321,976 (69,352) 322,675 (69,384) Commercial MBS 2,505 (116) 11,364 (1,940) 13,869 (2,056) Asset-backed securities — — 3,423 (204) 3,423 (204) Total securities available-for-sale $ 3,204 $ (148) $ 406,536 $ (81,330) $ 409,740 $ (81,478) Held-to-Maturity Securities: U.S. Treasury securities $ — $ — $ 28,009 $ (1,854) $ 28,009 $ (1,854) U.S. State and Municipal securities — — 13,657 (2,096) 13,657 (2,096) Residential MBS 69,642 (2,606) 317,859 (57,696) 387,501 (60,302) Commercial MBS — — 6,964 (1,142) 6,964 (1,142) Total securities held-to-maturity $ 69,642 $ (2,606) $ 366,489 $ (62,788) $ 436,131 $ (65,394) At March 31, 2023 and December 31, 2022, 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. At March 31, 2023 and December 31, 2022, all of the residential MBS and commercial MBS held by the Company were issued by U.S. Government-sponsored entities and agencies. Except for U.S. State and Municipal securities, the Company has a zero loss expectation for its HTM securities portfolio, and therefore it is not required to estimate an ACL related to these securities. Obligations of U.S. State and Municipal securities were rated investment grade at March 31, 2023 and the associated ACL was immaterial. AFS securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. The unrealized losses on AFS securities are primarily due to the changes in market interest rates subsequent to purchase. In addition, the Company does not intend nor would it 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 ACL was recognized during the three months ended March 31, 2023. At December 31, 2022, debt securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (in thousands): Less than 12 Months 12 Months or More Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At 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) Residential MBS 162,960 (19,625) 226,661 (47,402) 389,621 (67,027) Commercial MBS — — 6,835 (1,276) 6,835 (1,276) U.S. State and Municipal securities 13,205 (2,609) — — 13,205 (2,609) Total securities held-to-maturity $ 194,848 $ (23,599) $ 242,442 $ (49,536) $ 437,290 $ (73,135) Prior to the adoption of ASU No. 2016-13 on January 1, 2023, the Company evaluated these securities for OTTI. The Company did not consider these securities to be OTTI at December 31, 2022 since the decline in market value was attributable to changes in interest rates and not to changes in credit quality. In addition, the Company did not intend to sell and did not believe that it is more likely than not that it would 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 year ended December 31, 2022.

LOANS AND ALLOWANCE FOR CREDIT

LOANS AND ALLOWANCE FOR CREDIT LOSSES	3 Months Ended
LOANS AND ALLOWANCE FOR CREDIT LOSSES	Mar. 31, 2023
LOANS AND ALLOWANCE FOR CREDIT LOSSES
LOANS AND ALLOWANCE FOR CREDIT LOSSES	NOTE 5 — LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans, net of deferred costs and fees, consist of the following (in thousands): At March 31, December 31, 2023 2022 Real estate Commercial $ 3,279,321 $ 3,254,508 Construction 123,292 143,693 Multi-family 444,052 468,540 One-to four-family 52,428 53,207 Total real estate loans 3,899,093 3,919,948 Commercial and industrial 935,541 908,616 Consumer 30,394 24,931 Total loans 4,865,028 4,853,495 Deferred fees, net of origination costs (13,334) (12,972) Loans, net of deferred fees and costs 4,851,694 4,840,523 Allowance for credit losses (47,752) (44,876) Net loans $ 4,803,942 $ 4,795,647 Included in C&I loans at March 31, 2023 and December 31, 2022 were $84,000 and $97,000, respectively, of PPP loans. At March 31, 2023 and December 31, 2022, $3.2 billion and $2.4 billion of loans were pledged to support available borrowing capacity from the Federal Home Loan Bank and Federal Reserve Bank. The following tables present the activity in the ACL for funded loans by segment. The portfolio segments represent the categories that the Company uses to determine its ACL (in thousands): Commercial Commercial Multi One-to four- Three months ended March 31, 2023 Real Estate & Industrial Construction Family Family Consumer Total Allowance for credit losses: Beginning balance $ 29,496 $ 10,274 $ 1,983 $ 2,823 $ 105 $ 195 $ 44,876 Cumulative effect of changes in accounting principle 48 471 424 705 181 421 2,250 Provision/(credit) for credit losses 2,292 12 (1,146) (657) 121 104 726 Loans charged-off — — — — — (100) (100) Recoveries — — — — — — — Total ending allowance balance $ 31,836 $ 10,757 $ 1,261 $ 2,871 $ 407 $ 620 $ 47,752 Commercial Commercial Multi One-to four- Three months ended March 31, 2022 Real Estate & Industrial Construction Family Family Consumer Total Allowance for credit losses: Beginning balance $ 22,216 $ 7,708 $ 2,105 $ 2,156 $ 140 $ 404 $ 34,729 Provision/(credit) for credit losses 2,504 780 224 100 (36) (172) 3,400 Loans charged-off — — — — — — — Recoveries — — — — — 5 5 Total ending allowance balance $ 24,720 $ 8,488 $ 2,329 $ 2,256 $ 104 $ 237 $ 38,134 Net charge-offs for the three months ended March 31, 2023 were $100,000. Net recoveries for the three months ended March 31, 2022 were $5,000. The following tables present the activity in the ACL for unfunded loan commitments (in thousands): Three months ended March 31, 2023 2022 Balance at the beginning of period $ 180 $ 180 Cumulative effect of changes in accounting principle 777 — Provision/(credit) for credit losses (80) — Total ending allowance balance $ 877 $ 180 The following tables present the balance in the ACL and the recorded investment in loans by portfolio segment based on allowance measurement methodology (in thousands): Commercial Commercial One-to four- At March 31, 2023 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Individually assessed $ — $ — $ — $ — $ — $ 24 $ 24 Collectively assessed 31,836 10,757 1,261 2,871 407 596 47,728 Total ending allowance balance $ 31,836 $ 10,757 $ 1,261 $ 2,871 $ 407 $ 620 $ 47,752 Loans: Individually assessed $ 40,769 $ — $ — $ — $ — $ 24 $ 40,793 Collectively assessed 3,238,552 935,541 123,292 444,052 52,428 30,370 4,824,235 Total ending loan balance $ 3,279,321 $ 935,541 $ 123,292 $ 444,052 $ 52,428 $ 30,394 $ 4,865,028 Commercial Commercial One-to four- At December 31, 2022 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Individually assessed $ — $ — $ — $ — $ — $ 24 $ 24 Collectively assessed 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 assessed $ 26,740 $ — $ — $ — $ 899 $ 24 $ 27,663 Collectively assessed 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 The following tables present the recorded investment in non-accrual loans and loans past due over 90 days and still accruing, by class of loans (in thousands): Nonaccrual Loans Past Due Without an Over 90 Days At March 31, 2023 Nonaccrual ACL Still Accruing Commercial real estate $ 24,000 $ 24,000 $ — Consumer 24 — — Total $ 24,024 $ 24,000 $ — Nonaccrual Loans Past Due Without an Over 90 Days At December 31, 2022 Nonaccrual ACL Still Accruing Commercial real estate $ — $ — $ — Consumer 24 — — Total $ 24 $ — $ — Interest income that would have been recorded for the three months ended March 31, 2023 and 2022 had non-accrual loans been current according to their original terms was immaterial. The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands): 90 30-59 60-89 Days and Total past Current At March 31, 2023 Days Days greater due loans Total Commercial real estate $ — $ — $ 24,000 $ 24,000 $ 3,255,321 $ 3,279,321 Commercial & industrial 35 32 — 67 935,474 935,541 Construction — — — — 123,292 123,292 Multi-family 9,675 17,625 — 27,300 416,752 444,052 One-to four-family — — — — 52,428 52,428 Consumer 14 — 24 38 30,356 30,394 Total $ 9,724 $ 17,657 $ 24,024 $ 51,405 $ 4,813,623 $ 4,865,028 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 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 ratings 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. An analysis is performed on a quarterly basis for loans classified as special mention, substandard or doubtful. The Company uses the following definitions for risk ratings: Special Mention - Substandard - Doubtful - Loans not meeting the criteria above are considered to be pass-rated loans. The following table presents loan balances by credit quality indicator and year of origination at March 31, 2023 (in thousands): 2023 2022 2021 2020 2019 2018 & Prior Revolving Total CRE Pass $ 445,656 $ 1,528,343 $ 596,881 $ 185,291 $ 226,188 $ 154,132 $ 42,936 $ 3,179,427 Special Mention 8,548 35,556 14,701 320 — — — 59,125 Substandard — 24,000 — 16,769 — — — 40,769 Total $ 454,204 $ 1,587,899 $ 611,582 $ 202,380 $ 226,188 $ 154,132 $ 42,936 $ 3,279,321 Construction Pass $ 18,720 $ 70,550 $ 34,022 $ — $ — $ — $ — $ 123,292 Total $ 18,720 $ 70,550 $ 34,022 $ — $ — $ — $ — $ 123,292 Multi-family Pass $ 5,534 $ 188,701 $ 73,566 $ 33,028 $ 38,181 $ 100,392 $ 4,650 $ 444,052 Total $ 5,534 $ 188,701 $ 73,566 $ 33,028 $ 38,181 $ 100,392 $ 4,650 $ 444,052 One-to four-family Current $ — $ 4,249 $ — $ 10,432 $ 12,484 $ 25,262 $ — $ 52,428 Total $ — $ 4,249 $ — $ 10,432 $ 12,484 $ 25,262 $ — $ 52,428 Commercial and industrial Pass $ 61,040 $ 358,209 $ 126,347 $ 32,843 $ 17,929 $ 12,998 $ 293,176 $ 902,542 Special Mention — 14,000 — — — — 18,999 32,999 Total $ 61,040 $ 372,209 $ 126,347 $ 32,843 $ 17,929 $ 12,998 $ 312,175 $ 935,541 Consumer Current $ 7,468 $ — $ 780 $ — $ — $ 22,108 $ — $ 30,356 Past due — — — — — 38 — 38 Total $ 7,468 $ — $ 780 $ — $ — $ 22,146 $ — $ 30,394 There were $100,000 of Consumer charge-off for the three months ended March 31, 2023, which were originated in 2018 and prior. There were $40.8 million of collateral dependent CRE loans at March 31,2023. For loans evaluated by credit risk ratings, the following table presents loan balances by credit quality indicator and by class of loans at December 31, 2022 (in thousands): Special 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 There were no modifications where the borrower was experiencing financial difficulty during the three months ended March 31, 2023. The following tables present loans individually evaluated for impairment pursuant to the disclosure requirements prior to the adoption of ASU No. 2016-13 on January 1, 2023 (in thousands). The recorded investment in loans excludes accrued interest receivable and loan origination fees. At December 31, 2022 Allowance Unpaid for Loan Principal Recorded Losses Balance Investment Allocated With an allowance recorded: Consumer 24 24 24 Total $ 24 $ 24 $ 24 Without an allowance recorded: One-to four-family $ 1,176 $ 899 $ — CRE 27,984 26,740 — Total $ 29,160 $ 27,639 $ — Average Interest Recorded Income Three months ended March 31, 2022 Investment Recognized With an allowance recorded: One-to four-family $ 224 $ 3 Consumer 163 — Total $ 387 $ 3 Without an allowance recorded: One-to four-family $ 716 $ 6 Consumer 33,498 230 Total $ 34,214 $ 236

BORROWINGS

BORROWINGS	3 Months Ended
BORROWINGS	Mar. 31, 2023
BORROWINGS
BORROWINGS	NOTE 6 — BORROWINGS Borrowings consisted of the following (in thousands): Interest expense At March 31, At December 31, Three Months Ended March 31, 2023 2022 2023 2022 Federal funds purchased and securities sold under agreements to repurchase $ 195,000 $ 150,000 $ 1,369 $ — Federal Home Loan Bank of New York advances $ 200,000 $ 100,000 $ 657 $ — Federal funds purchased are generally overnight transactions and had a weighted average interest rate of 5.15% at March 31, 2023. The FHLBNY advances at March 31, 2023 have a maturity date of April 3, 2023 and a fixed interest rate of 4.99%. There were no securities sold under agreements to repurchase outstanding as of March 31, 2023 and December 31, 2022. During the first quarter of 2022, the Company redeemed $25.0 million of subordinated debt, plus accrued interest. The subordinated notes had a maturity date of March 15, 2027 and an interest rate of 6.25% per annum.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
EARNINGS PER SHARE	Mar. 31, 2023
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 7 — EARNINGS PER SHARE The Company uses the two-class method in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share calculation are as follows (in thousands, except per share data). Three months ended March 31, 2023 2022 Basic Net income per consolidated statements of income $ 25,076 $ 19,021 Less: Earnings allocated to participating securities (84) (25) Net income available to common stockholders $ 24,992 $ 18,996 Weighted average common shares outstanding including participating securities 11,081,924 10,934,091 Less: Weighted average participating securities (37,300) (14,223) Weighted average common shares outstanding 11,044,624 10,919,868 Basic earnings per common share $ 2.26 $ 1.74 Diluted Net income allocated to common stockholders $ 24,992 $ 18,996 Weighted average common shares outstanding for basic earnings per common share 11,044,624 10,919,868 Add: Dilutive effects of assumed exercise of stock options — 190,826 Add: Dilutive effects of assumed vesting of performance based restricted stock 58,384 73,561 Add: Dilutive effects of assumed vesting of restricted stock units — 39,039 Average shares and dilutive potential common shares 11,103,008 11,223,294 Dilutive earnings per common share $ 2.25 $ 1.69 For the three months ended March 31, 2023, 262,624 of restricted stock units were not considered in the calculation of diluted earnings per share as their inclusion would be anti-dilutive. All performance restricted stock units were considered in computing diluted earnings per common share for the three months ended March 31, 2022. All stock options, performance restricted stock units, and restricted stock units were considered in computing diluted earnings per common share for the three months ended March 31, 2022.

STOCK COMPENSATION PLAN

STOCK COMPENSATION PLAN	3 Months Ended
STOCK COMPENSATION PLAN	Mar. 31, 2023
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN	NOTE 8 — STOCK COMPENSATION PLAN Equity Incentive Plan At March 31, 2023, 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 132,424, 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 was estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities based on historical volatilities of the Company’s common stock are not significant. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. A summary of the status of the Company’s stock options and the changes during the year is presented below: Three months ended March 31, 2023 Weighted Number of Average Options Exercise Price Outstanding, beginning of period 220,200 $ 18.00 Granted — — Exercised (220,200) 18.00 Cancelled/forfeited — — Outstanding, end of period — $ — Options vested and exercisable at end of period — $ — Weighted average remaining contractual life (years) — Weighted average intrinsic value $ — The intrinsic value of exercises was $8.3 million and $0.0 for the three months ended March 31, 2023 and 2022, respectively. See also “NOTE 14 – SUBSEQUENT EVENTS” to the Company’s consolidated financial statements in this Form 10-Q. There was no unrecognized compensation cost related to stock options at March 31, 2023 and December 31, 2022. There was no compensation cost related to stock options during the three months ended March 31, 2023 and 2022. Restricted Stock Awards and Restricted Stock Units The Company issued restricted stock awards and restricted stock units under the 2022 EIP, 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 2023 and 2022, 170,998 and 72,025 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, 2024 and March 1, 2023, respectively. Total compensation cost that has been charged against income for restricted stock grants was $1.4 million and $751,000 for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, there was $14.3 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 2.36 years. In January 2023, 27,500 restricted shares were granted to members of the Board of Directors. These shares vest in January 2024. In January 2022, 11,126 restricted shares were granted to members of the Board of Directors. These shares 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. Total expense for these awards was $388,000 and $298,000 for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023 total unrecognized expense for these awards was $1.2 million. The following table summarizes the changes in the Company’s restricted stock grants: Three months ended March 31, 2023 Weighted Average Number of Grant Date Shares Fair Value Outstanding, beginning of period 129,562 $ 86.01 Granted 198,498 55.83 Forfeited (446) 55.91 Vested (64,990) 84.28 Outstanding at end of period 262,624 $ 63.68 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 $538,000 and $471,000 for the three months ended March 31, 2023 and 2022, respectively.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS	Mar. 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 9 — FAIR VALUE OF FINANCIAL INSTRUMENTS The Company uses fair value measurements to record fair value adjustments to certain assets and derivative contracts, and to determine fair value disclosures. Other than derivative contacts designated as cash flow hedges, the Company did not have any liabilities that were measured at fair value at March 31, 2023 and December 31, 2022. AFS securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as certain impaired loans. These non-recurring fair value adjustments generally involve the write-down of individual assets due to impairment losses. Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own judgments about the assumptions that market participants would use in pricing an asset or liability. Assets and Liabilities Measured on a Recurring Basis Assets measured on a recurring basis are limited to the Company’s AFS securities portfolio, equity investments and prior to termination, 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. Outstanding derivative contracts designated as cash flow hedges are carried at estimated fair value with changes in fair value reported as accumulated other comprehensive income or loss in shareholders’ equity. The fair values for substantially all of these assets are obtained monthly from an independent nationally recognized pricing service. On a quarterly basis, the Company assesses the reasonableness of the fair values obtained for the AFS portfolio by reference to a second independent nationally recognized pricing service. Based on the nature of these securities, the Company’s independent pricing service provides prices which are categorized as Level 2 since quoted prices in active markets for identical assets are generally not available for the majority of securities in the Company’s portfolio. Various modeling techniques are used to determine pricing for the Company’s mortgage-backed securities, including option pricing and discounted cash flow models. The inputs to these models include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. On an annual basis, the Company obtains the models, inputs and assumptions utilized by its pricing service and reviews them for reasonableness. Other than derivative contacts designated as cash flow hedges, the Company does not have any liabilities that were measured at fair value on a recurring basis. Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) At March 31, 2023 U.S. Government agency securities $ 60,236 $ — $ 60,236 $ — U.S. State and Municipal securities 9,537 — 9,537 — Residential mortgage securities 335,674 — 335,674 — Commercial mortgage securities 35,299 — 35,299 — Asset-backed securities 3,423 — 3,423 — CRA Mutual Fund 2,087 2,087 — — Derivatives (1,006) — (1,006) — 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 — — Derivatives — — — — There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2023 and 2022. There were no material assets measured at fair value on a non-recurring basis at March 31, 2023 and December 31, 2022. Carrying amounts and estimated fair values of financial instruments carried at amortized cost were as follows (in thousands): Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At March 31, 2023 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 32,525 $ 32,525 $ — $ — $ 32,525 Overnight deposits 266,978 266,978 — — 266,978 Securities held-to-maturity 501,525 — 436,131 — 436,131 Loans, net 4,803,942 — — 4,718,214 4,718,214 Other investments FRB Stock 11,411 N/A N/A N/A N/A FHLB Stock 13,691 N/A N/A N/A N/A Disability Fund 1,500 — 1,500 — 1,500 Time deposits at banks 498 498 — — 498 Receivable from prepaid card programs, net 83,787 — — 83,787 83,787 Accrued interest receivable 24,006 — 859 23,147 24,006 Financial Liabilities: Non-interest-bearing demand deposits $ 2,122,606 $ 2,122,606 $ — $ — $ 2,122,606 Money market and savings deposits 2,955,407 2,955,407 — — 2,955,407 Time deposits 53,775 — 52,971 — 52,971 Federal funds purchased 195,000 — 195,000 — 195,000 Federal Home Loan Bank of New York advances 200,000 — 200,000 — 200,000 Trust preferred securities payable 20,620 — — 19,983 19,983 Prepaid debit cardholder balances 11,102 — — 11,102 11,102 Accrued interest payable 689 11 338 340 689 Secured borrowings 7,689 — 7,689 — 7,689 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 4,795,647 — — 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

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	3 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	Mar. 31, 2023
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 10 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table shows the amounts reclassified out of accumulated other comprehensive income for the sale and calls of AFS securities and realized gain on cash flow hedges (in thousands): Affected line item in Three months ended the Consolidated Statements March 31, of Operations 2023 2022 Realized gain on sale of AFS securities $ — $ — Gain on Sale of Securities Income tax (expense) benefit — — Income tax expense Total reclassifications, net of income tax $ — $ — Realized gain on cash flow hedges $ (1,235) $ — Licensing fees Income tax (expense) benefit (377) (599) Income tax expense Total reclassifications, net of income tax $ (1,612) $ (599)

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2023
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 11 — 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 March 31, 2023 At December 31, 2022 Fixed Variable Fixed Variable Rate Rate Rate Rate Unused commitments $ 36,520 $ 387,399 $ 40,685 $ 364,908 Standby and commercial letters of credit 58,676 — 53,947 — $ 95,196 $ 387,399 $ 94,632 $ 364,908 A commitment to extend credit is a legally binding agreement to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally expire within two years. At March 31, 2023, the Company’s fixed rate loan commitments had interest rates ranging from 3.0% to 7.75% and the Company’s variable rate loan commitments had interest rates ranging from 6.0% to 10.3%. At December 31, 2022, the Company’s fixed rate loan commitments had interest rates ranging from 3.0% to 8.5% and the Company’s variable rate loan commitments had interest rates ranging from 6.0% to 11.5%. 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 $58.7 million and $53.9 million as of March 31, 2023 and December 31, 2022, respectively. The Company’s stand-by letters of credit are collateralized by interest-bearing accounts of $28.4 million and $28.7 million as of March 31, 2023 and December 31, 2022, 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. The Company reversed $2.5 million of the reserve in the first quarter of 2023. 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.

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
REVENUE FROM CONTRACTS WITH CUSTOMERS	Mar. 31, 2023
REVENUE FROM CONTRACTS WITH CUSTOMERS
REVENUE FROM CONTRACTS WITH CUSTOMERS	NOTE 12 — REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers that are in the scope of Accounting Standards Codification 606, Revenue from Contracts with Customers, Three months ended March 31, 2023 2022 Service charges on deposit accounts $ 1,456 $ 1,370 Global Payments Group revenue 4,850 5,657 Other service charges and fees 642 506 Total $ 6,948 $ 7,533 A description of the Company’s revenue streams accounted for under the accounting guidance is as follows: Service charges on deposit accounts The Company offers business and personal retail products and services, which include, but are not limited to, online banking, mobile banking, ACH, and remote deposit capture. A standard deposit contract exists between the Company and all deposit customers. The Company earns fees from its deposit customers for transaction-based services (such as ATM use fees, stop payment charges, statement rendering, and ACH fees), account maintenance, and overdraft services. Transaction-based fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Global payment group revenue The Company offers corporate cash management and retail banking services and, through its global payments business, provides services to non-bank financial service companies. 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	3 Months Ended
DERIVATIVES	Mar. 31, 2023
DERIVATIVES
DERIVATIVES	NOTE 13 — DERIVATIVES In the first quarter of 2023, the Company entered into an interest rate swap derivative contract (“interest rate swap”) as a part of its asset liability management strategy to help manage its interest rate risk position. The interest rate swap has a notional amount of $400.0 million and a contractual maturity of August 1, 2025. The notional amount of the interest rate swap does not represent the amount exchanged by the parties. The interest rate swap was designated as a cash flow hedge of certain deposit liabilities of the Company. The hedge was determined to be highly effective during the three months ended March 31, 2023. The Company expects the hedge to remain highly effective during the remaining term of the interest rate swap. In 2020, the Company entered into an interest rate cap derivative contract (“interest rate cap”) 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 interest rate cap. 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): Fair Value Notional Asset / Amount (Liability) At March 31, 2023 Derivatives designated as hedges: Interest rate swap related to customer deposits $ 400,000 $ (1,006) Total included in Other Assets $ 400,000 $ (1,006) At December 31, 2022 Derivatives designated as hedges: Interest rate cap related to customer deposits $ — $ — Total included in Other Assets $ — $ — The effect of cash flow hedge accounting on accumulated other comprehensive income is as follows (in thousands): Three months ended March 31, 2023 2022 Interest rate caps related to customer deposits Amount of gain (loss) recognized in OCI, net of tax $ (699) $ 6,087 Amount of gain (loss) reclassified from OCI into income $ 1,235 $ — Location of gain (loss) reclassified from OCI into income Licensing fees N/A N/A - not applicable

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2023
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 14 ‒ SUBSEQUENT EVENTS On August 15, 2016, Metropolitan Bank Holding Corp. (the “Company”) made a loan to an executive officer of the Company, which was subsequently extended on August 15, 2021, in the amount of $780,000 and having an interest rate of 2.1% per annum (the “2021 Loan”). On March 6, 2023, the Company purported to make a loan to this executive officer in the amount of $7.5 million with a fixed interest rate of 5.7% per annum (the “2023 Loan”), and the executive officer used substantially all of the proceeds of the 2023 Loan to pay the exercise price in connection with the exercise of certain existing stock options (the “Option Shares”) and satisfy withholding tax obligations in connection with such exercise (the “Option Exercise”). In connection with the preparation of the proxy statement for the Company’s annual meeting of stockholders, the Company’s management and Executive Committee of the Board of Directors, along with outside counsel, reevaluated the 2023 Loan as well as the 2021 Loan. As part of this reevaluation, the Company determined that the 2023 Loan and the 2021 Loan were likely impermissible under applicable law and/or regulations. As a result of these determinations, and to the extent that the 2023 Loan and the Option Exercise were not void as a matter of law, on April 26, 2023, the Company and the executive officer entered into a Rescission Agreement (the “Rescission Agreement”). The Rescission Agreement provided, among other things, (i) that the 2023 Loan and the Option Exercise would be rescinded and deemed null and void, (ii) that payments made in respect of the 2023 Loan, if any, would be returned, and (iii) that any dividends received by the executive officer in respect of the Option Shares have been returned or repaid to the Company. In connection with the entry into the Rescission Agreement, the executive officer repaid, in full, the 2021 Loan. At December 31, 2022, the aggregate amount of extensions of credit to the Company’s directors, executive officers, principal stockholders and their associates was $780,000. As of May 3, 2023, such amount is $0.

SUMMARY OF RECENT ACCOUNTING _2

SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	3 Months Ended
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	Mar. 31, 2023
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS
BASIS OF PRESENTATION	The accounting and reporting policies of the Company conform with GAAP and predominant practices within the U.S. banking industry. The Unaudited Consolidated Financial Statements (“unaudited financial statements”) include the accounts of the Company and the Bank. All intercompany balances and transactions have been eliminated. The unaudited financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q, Article 8 of Regulation S-X and predominant practices within the U.S. banking industry. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The unaudited financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim unaudited financial statements in conformity with GAAP, management has made estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods, and actual results could differ from those estimated. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, inflation and its related effects and changes in the financial condition of borrowers. Some items in the prior year financial statements may have been reclassified to conform to the current presentation. Reclassification had no effect on prior year net income or stockholders’ equity. The results of operations for the three months ended March 31, 2023 and 2022 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year or for any other period. The unaudited financial statements presented in this report should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the SEC.
Loans and the Allowance for Credit Losses	Loans and the Allowance for Credit Losses 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. The Company adopted this guidance effective January 1, 2023 and recorded a cumulative effect adjustment that increased the allowance for credit losses for loans and loan commitments by $3.0 million, increased deferred tax assets by $777,000 and decreased retained earnings by $2.1 million, net of tax. The ACL for loans is measured on the loan’s amortized cost basis, excluding interest receivable, and is initially recognized upon origination or purchase of the loans, and subsequently remeasured on a recurring basis. The ACL is recognized as a contra-asset, and credit loss expense is recorded as provision for credit losses in the consolidated statements of operation. Loan losses are charged-off against the ACL when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the ACL. 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. The Company generally does not recognize an ACL on accrued interest receivables, consistent with its policy to reverse interest income when interest is 90 days or more past due. The Company also records an ACL on unfunded loan commitments, which is based on the same assumptions as funded loans and also considers the probability of funding. The ACL is recognized as a liability, and credit loss expense is recorded as provision for unfunded loan commitments within provision for credit losses in the consolidated statements of operation. Upon funding of the loan, any related ACL previously recorded on the unfunded amount is reversed and an ACL is subsequently recognized on the outstanding loan. To calculate the ACL for loans and loan commitments collectively evaluated, the Company uses models developed by a third party. The CRE, C&I, and Consumer lifetime loss rate models calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default considers the current unpaid balance, prepayment assumptions and utilization of expected utilization assumptions. Key assumptions used in the models include portfolio segmentation, prepayments, risk rating and a peer scalar, the expected utilization of unfunded commitments among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated and loss rates are subsequently applied to the pools as the loans have similar characteristics. Prepayment assumptions, if applicable, are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. The models employ mean reversion techniques to predict credit losses for loans that are expected to mature beyond the forecast period. To account for economic uncertainty, the Company uses multiple economic scenarios provided by the models in determining the ACL. The forecasts include various projections based on variables such as, Gross Domestic Product (“GDP”), interest rates, property price indices, and employment measures, among others. The forecasts are probability-weighted based on available information at the time of the calculation execution. Scenario weightings and model parameters are reviewed for each calculation and are subject to change. The CRE and CRE lifetime loss rate models were developed using the historical loss experience of all banks in the model’s developmental dataset. Banks in the model’s developmental dataset may have different loss experiences due to geography and portfolio as well as variances in operational and underwriting procedures from the Company, and therefore, the Company calibrates expected losses using a peer scalar function provided by the models. The peer scalar was calculated by examining the loss rates of peer banks that have similar asset bases and that operate in similar markets as the Company and comparing these peer group loss rates to the model results. The Company also considers qualitative adjustments to expected credit loss estimates for information not already captured in the quantitative loss estimation models. Qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Qualitative loss factors are based on the Company’s judgment of market, industry or business specific data, changes in loan composition, performance trends, regulatory changes, uncertainty of macroeconomic forecasts, and other asset specific risk characteristics. When loans do not share risk characteristics with other financial assets they are evaluated individually. Management applies its normal loan review procedures in making these judgments. Individually evaluated loans consist of impaired loans, loans past due 90 days, and loans modified due to financial difficulty. A loan is considered to be impaired when it was probable that the Company would be unable to collect all principal and interest amounts according to the contractual terms of the loan agreement. Impairment is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable and where the borrower is experiencing financial difficulty, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. Fair value is generally calculated based on the value of the underlying collateral less an appraisal discount and the estimated cost to sell. Prior to the adoption of ASU No. 2016-13 Prior to the adoption of ASU No. 2016-13, the allowance for loan losses was maintained at an amount management deemed adequate to cover probable incurred credit losses (the “incurred loss method”). The allowance for non-impaired loans was based on historical loss experience adjusted for current factors. The historical loss experience was determined by portfolio segment and was based on the actual loss history experienced by the Company over a rolling two-year period. This actual loss experience was supplemented with other qualitative and economic factors based on the risks present for each portfolio segment. These qualitative and economic factors included economic and business conditions, the nature and volume of the portfolio, and lending terms and volume and severity of past due loans. A loan was considered to be impaired when it was probable that the Company would be unable to collect all principal and interest amounts according to the contractual terms of the loan agreement. Management applied its normal loan review procedures in making these judgments. Impaired loans include individually classified non-accrual loans and TDRs. Impairment was determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For loans that were collateral dependent, the fair value of the collateral was used to determine the fair value of the loan. The fair value of the collateral was determined based on recent appraised values. The fair value of the collateral or present value of expected cash flows was compared to the carrying value to determine if any write-down or specific loan loss allowance allocation was required. Loan Modifications In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (ASU 326): Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminated the accounting guidance for TDRs by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The Company adopted ASU 2022-02 effective January 1, 2023 and the impact was immaterial. Prior to the adoption of ASU 2022-02, when a loan was modified and concessions were 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 was known as a TDR. TDRs were separately identified for impairment disclosures and were measured at the present value of estimated future cash flows using the loan’s effective rate at inception. Securities and the Allowance for Credit Losses Effective January 1, 2023, the Company estimates and recognizes an ACL for HTM debt securities pursuant to ASU No. 2016-13. The Company has a zero loss expectation for its HTM securities portfolio, except for U.S. State and Municipal securities, and therefore it is not required to estimate an ACL related to these securities. For HTM securities that do not have a zero loss expectation, the ACL is based on the security’s amortized cost, excluding interest receivable, and represents the portion of the amortized cost that the Company does not expect to collect over the life of the security. The ACL is determined using average industry credit ratings and historical loss experience, and is initially recognized upon acquisition of the securities, and subsequently remeasured on a recurring basis. The Company evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit impairment. In performing an assessment of whether any decline in fair value is due to a credit loss, the Company considers the extent to which the fair value is less than the amortized cost, changes in credit ratings, any adverse economic conditions, as well as all relevant information at the individual security level, such as credit deterioration of the issuer, explicit or implicit guarantees by the federal government or collateral underlying the security. If it is determined that the decline in fair value was due to credit losses, an ACL is recorded, limited to the amount the fair value is less than the amortized cost basis. The non-credit related decrease in the fair value, such as a decline due to changes in market interest rates, is recorded in other comprehensive income, net of tax. The Company recognizes a credit impairment if the Company has the intent to sell the security, or it is more likely than not that the Bank will be required to sell the security before recovery of its amortized cost. Prior to the adoption of ASU No. 2016-13 Management evaluated AFS and HTM debt 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 considered the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assessed whether it intended to sell, or it is more likely than not that it would 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 was recognized as impairment through earnings. For securities that did not meet the aforementioned criteria, the amount of impairment would be 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.
SUMMARY OF RECENT ACCOUNTING PRONOUNCEMENTS	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 (Tables)

INVESTMENT SECURITIES (Tables)	3 Months Ended
INVESTMENT SECURITIES (Tables)	Mar. 31, 2023
INVESTMENT SECURITIES
Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity	The following tables summarize the amortized cost and fair value of 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 March 31, 2023 Cost Gains Losses Fair Value Available-for-Sale Securities: U.S. Government agency securities $ 67,996 $ — $ (7,760) $ 60,236 U.S. State and Municipal securities 11,611 — (2,074) 9,537 Residential MBS 404,577 481 (69,384) 335,674 Commercial MBS 37,043 312 (2,056) 35,299 Asset-backed securities 3,627 — (204) 3,423 Total securities available-for-sale $ 524,854 $ 793 $ (81,478) $ 444,169 Held-to-Maturity Securities: U.S. Treasury securities $ 29,863 $ — $ (1,854) $ 28,009 U.S. State and Municipal securities 15,753 — (2,096) 13,657 Residential MBS 447,803 — (60,302) 387,501 Commercial MBS 8,106 — (1,142) 6,964 Total securities held-to-maturity $ 501,525 $ — $ (65,394) $ 436,131 Equity Investments: CRA Mutual Fund $ 2,370 $ — $ (283) $ 2,087 Total equity investment securities $ 2,370 $ — $ (283) $ 2,087 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
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 investments in mutual funds, have been excluded from the table. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties (in thousands): Held-to-Maturity Available-for-Sale At March 31, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Due within 1 year $ — $ — $ — $ — After 1 year through 5 years 29,863 28,009 64,575 58,161 After 5 years through 10 years 9,428 8,195 25,554 24,246 After 10 years 462,234 399,927 434,725 361,762 Total Securities $ 501,525 $ 436,131 $ 524,854 $ 444,169 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
Schedule of securities with unrealized/unrecognized losses	At March 31, 2023, debt securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (in thousands): Less than 12 Months 12 Months or More Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At March 31, 2023 Fair Value Losses Fair Value Losses Fair Value Losses Available-for-Sale Securities: U.S. Government agency securities $ — $ — $ 60,236 $ (7,760) $ 60,236 $ (7,760) U.S. State and Municipal securities — — 9,537 (2,074) 9,537 (2,074) Residential MBS 699 (32) 321,976 (69,352) 322,675 (69,384) Commercial MBS 2,505 (116) 11,364 (1,940) 13,869 (2,056) Asset-backed securities — — 3,423 (204) 3,423 (204) Total securities available-for-sale $ 3,204 $ (148) $ 406,536 $ (81,330) $ 409,740 $ (81,478) Held-to-Maturity Securities: U.S. Treasury securities $ — $ — $ 28,009 $ (1,854) $ 28,009 $ (1,854) U.S. State and Municipal securities — — 13,657 (2,096) 13,657 (2,096) Residential MBS 69,642 (2,606) 317,859 (57,696) 387,501 (60,302) Commercial MBS — — 6,964 (1,142) 6,964 (1,142) Total securities held-to-maturity $ 69,642 $ (2,606) $ 366,489 $ (62,788) $ 436,131 $ (65,394) At December 31, 2022, debt securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (in thousands): Less than 12 Months 12 Months or More Total Unrealized/ Unrealized/ Unrealized/ Estimated Unrecognized Estimated Unrecognized Estimated Unrecognized At 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) Residential MBS 162,960 (19,625) 226,661 (47,402) 389,621 (67,027) Commercial MBS — — 6,835 (1,276) 6,835 (1,276) U.S. State and Municipal securities 13,205 (2,609) — — 13,205 (2,609) Total securities held-to-maturity $ 194,848 $ (23,599) $ 242,442 $ (49,536) $ 437,290 $ (73,135)

LOANS AND ALLOWANCE FOR CREDI_2

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)	3 Months Ended
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)	Mar. 31, 2023
Loans and Leases Receivable Disclosure [Line Items]
Schedule of Net loans	Loans, net of deferred costs and fees, consist of the following (in thousands): At March 31, December 31, 2023 2022 Real estate Commercial $ 3,279,321 $ 3,254,508 Construction 123,292 143,693 Multi-family 444,052 468,540 One-to four-family 52,428 53,207 Total real estate loans 3,899,093 3,919,948 Commercial and industrial 935,541 908,616 Consumer 30,394 24,931 Total loans 4,865,028 4,853,495 Deferred fees, net of origination costs (13,334) (12,972) Loans, net of deferred fees and costs 4,851,694 4,840,523 Allowance for credit losses (47,752) (44,876) Net loans $ 4,803,942 $ 4,795,647
Schedule of changes in the allowance for loan losses by portfolio segment	The following tables present the activity in the ACL for funded loans by segment. The portfolio segments represent the categories that the Company uses to determine its ACL (in thousands): Commercial Commercial Multi One-to four- Three months ended March 31, 2023 Real Estate & Industrial Construction Family Family Consumer Total Allowance for credit losses: Beginning balance $ 29,496 $ 10,274 $ 1,983 $ 2,823 $ 105 $ 195 $ 44,876 Cumulative effect of changes in accounting principle 48 471 424 705 181 421 2,250 Provision/(credit) for credit losses 2,292 12 (1,146) (657) 121 104 726 Loans charged-off — — — — — (100) (100) Recoveries — — — — — — — Total ending allowance balance $ 31,836 $ 10,757 $ 1,261 $ 2,871 $ 407 $ 620 $ 47,752 Commercial Commercial Multi One-to four- Three months ended March 31, 2022 Real Estate & Industrial Construction Family Family Consumer Total Allowance for credit losses: Beginning balance $ 22,216 $ 7,708 $ 2,105 $ 2,156 $ 140 $ 404 $ 34,729 Provision/(credit) for credit losses 2,504 780 224 100 (36) (172) 3,400 Loans charged-off — — — — — — — Recoveries — — — — — 5 5 Total ending allowance balance $ 24,720 $ 8,488 $ 2,329 $ 2,256 $ 104 $ 237 $ 38,134
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment	The following tables present the balance in the ACL and the recorded investment in loans by portfolio segment based on allowance measurement methodology (in thousands): Commercial Commercial One-to four- At March 31, 2023 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Individually assessed $ — $ — $ — $ — $ — $ 24 $ 24 Collectively assessed 31,836 10,757 1,261 2,871 407 596 47,728 Total ending allowance balance $ 31,836 $ 10,757 $ 1,261 $ 2,871 $ 407 $ 620 $ 47,752 Loans: Individually assessed $ 40,769 $ — $ — $ — $ — $ 24 $ 40,793 Collectively assessed 3,238,552 935,541 123,292 444,052 52,428 30,370 4,824,235 Total ending loan balance $ 3,279,321 $ 935,541 $ 123,292 $ 444,052 $ 52,428 $ 30,394 $ 4,865,028 Commercial Commercial One-to four- At December 31, 2022 Real Estate & Industrial Construction Multi-family Family Consumer Total Allowance for credit losses: Individually assessed $ — $ — $ — $ — $ — $ 24 $ 24 Collectively assessed 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 assessed $ 26,740 $ — $ — $ — $ 899 $ 24 $ 27,663 Collectively assessed 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
Schedule of recorded investment in non-accrual loans, loans past due over 90 days and still accruing by class of loans	The following tables present the recorded investment in non-accrual loans and loans past due over 90 days and still accruing, by class of loans (in thousands): Nonaccrual Loans Past Due Without an Over 90 Days At March 31, 2023 Nonaccrual ACL Still Accruing Commercial real estate $ 24,000 $ 24,000 $ — Consumer 24 — — Total $ 24,024 $ 24,000 $ — Nonaccrual Loans Past Due Without an Over 90 Days At December 31, 2022 Nonaccrual ACL Still Accruing Commercial real estate $ — $ — $ — Consumer 24 — — Total $ 24 $ — $ —
Schedule of aging of the recorded investment in past due loans by class of loans	The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands): 90 30-59 60-89 Days and Total past Current At March 31, 2023 Days Days greater due loans Total Commercial real estate $ — $ — $ 24,000 $ 24,000 $ 3,255,321 $ 3,279,321 Commercial & industrial 35 32 — 67 935,474 935,541 Construction — — — — 123,292 123,292 Multi-family 9,675 17,625 — 27,300 416,752 444,052 One-to four-family — — — — 52,428 52,428 Consumer 14 — 24 38 30,356 30,394 Total $ 9,724 $ 17,657 $ 24,024 $ 51,405 $ 4,813,623 $ 4,865,028 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
Schedule of risk category of loans by class of loans	The following table presents loan balances by credit quality indicator and year of origination at March 31, 2023 (in thousands): 2023 2022 2021 2020 2019 2018 & Prior Revolving Total CRE Pass $ 445,656 $ 1,528,343 $ 596,881 $ 185,291 $ 226,188 $ 154,132 $ 42,936 $ 3,179,427 Special Mention 8,548 35,556 14,701 320 — — — 59,125 Substandard — 24,000 — 16,769 — — — 40,769 Total $ 454,204 $ 1,587,899 $ 611,582 $ 202,380 $ 226,188 $ 154,132 $ 42,936 $ 3,279,321 Construction Pass $ 18,720 $ 70,550 $ 34,022 $ — $ — $ — $ — $ 123,292 Total $ 18,720 $ 70,550 $ 34,022 $ — $ — $ — $ — $ 123,292 Multi-family Pass $ 5,534 $ 188,701 $ 73,566 $ 33,028 $ 38,181 $ 100,392 $ 4,650 $ 444,052 Total $ 5,534 $ 188,701 $ 73,566 $ 33,028 $ 38,181 $ 100,392 $ 4,650 $ 444,052 One-to four-family Current $ — $ 4,249 $ — $ 10,432 $ 12,484 $ 25,262 $ — $ 52,428 Total $ — $ 4,249 $ — $ 10,432 $ 12,484 $ 25,262 $ — $ 52,428 Commercial and industrial Pass $ 61,040 $ 358,209 $ 126,347 $ 32,843 $ 17,929 $ 12,998 $ 293,176 $ 902,542 Special Mention — 14,000 — — — — 18,999 32,999 Total $ 61,040 $ 372,209 $ 126,347 $ 32,843 $ 17,929 $ 12,998 $ 312,175 $ 935,541 Consumer Current $ 7,468 $ — $ 780 $ — $ — $ 22,108 $ — $ 30,356 Past due — — — — — 38 — 38 Total $ 7,468 $ — $ 780 $ — $ — $ 22,146 $ — $ 30,394 For loans evaluated by credit risk ratings, the following table presents loan balances by credit quality indicator and by class of loans at December 31, 2022 (in thousands): Special 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
Schedule of loans determined to be impaired by class of loans	The following tables present loans individually evaluated for impairment pursuant to the disclosure requirements prior to the adoption of ASU No. 2016-13 on January 1, 2023 (in thousands). The recorded investment in loans excludes accrued interest receivable and loan origination fees. At December 31, 2022 Allowance Unpaid for Loan Principal Recorded Losses Balance Investment Allocated With an allowance recorded: Consumer 24 24 24 Total $ 24 $ 24 $ 24 Without an allowance recorded: One-to four-family $ 1,176 $ 899 $ — CRE 27,984 26,740 — Total $ 29,160 $ 27,639 $ — Average Interest Recorded Income Three months ended March 31, 2022 Investment Recognized With an allowance recorded: One-to four-family $ 224 $ 3 Consumer 163 — Total $ 387 $ 3 Without an allowance recorded: One-to four-family $ 716 $ 6 Consumer 33,498 230 Total $ 34,214 $ 236
Unfunded loan commitment
Loans and Leases Receivable Disclosure [Line Items]
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment	The following tables present the activity in the ACL for unfunded loan commitments (in thousands): Three months ended March 31, 2023 2022 Balance at the beginning of period $ 180 $ 180 Cumulative effect of changes in accounting principle 777 — Provision/(credit) for credit losses (80) — Total ending allowance balance $ 877 $ 180

BORROWINGS (Tables)

BORROWINGS (Tables)	3 Months Ended
BORROWINGS (Tables)	Mar. 31, 2023
BORROWINGS
Schedule of Federal funds purchased and FHLBNY advances	Borrowings consisted of the following (in thousands): Interest expense At March 31, At December 31, Three Months Ended March 31, 2023 2022 2023 2022 Federal funds purchased and securities sold under agreements to repurchase $ 195,000 $ 150,000 $ 1,369 $ — Federal Home Loan Bank of New York advances $ 200,000 $ 100,000 $ 657 $ —

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
EARNINGS PER SHARE (Tables)	Mar. 31, 2023
EARNINGS PER SHARE
Schedule of earnings per share	The factors used in the earnings per share calculation are as follows (in thousands, except per share data). Three months ended March 31, 2023 2022 Basic Net income per consolidated statements of income $ 25,076 $ 19,021 Less: Earnings allocated to participating securities (84) (25) Net income available to common stockholders $ 24,992 $ 18,996 Weighted average common shares outstanding including participating securities 11,081,924 10,934,091 Less: Weighted average participating securities (37,300) (14,223) Weighted average common shares outstanding 11,044,624 10,919,868 Basic earnings per common share $ 2.26 $ 1.74 Diluted Net income allocated to common stockholders $ 24,992 $ 18,996 Weighted average common shares outstanding for basic earnings per common share 11,044,624 10,919,868 Add: Dilutive effects of assumed exercise of stock options — 190,826 Add: Dilutive effects of assumed vesting of performance based restricted stock 58,384 73,561 Add: Dilutive effects of assumed vesting of restricted stock units — 39,039 Average shares and dilutive potential common shares 11,103,008 11,223,294 Dilutive earnings per common share $ 2.25 $ 1.69

STOCK COMPENSATION PLAN (Tables

STOCK COMPENSATION PLAN (Tables)	3 Months Ended
STOCK COMPENSATION PLAN (Tables)	Mar. 31, 2023
STOCK COMPENSATION PLAN
Schedule of status of the stock option plan	Three months ended March 31, 2023 Weighted Number of Average Options Exercise Price Outstanding, beginning of period 220,200 $ 18.00 Granted — — Exercised (220,200) 18.00 Cancelled/forfeited — — Outstanding, end of period — $ — Options vested and exercisable at end of period — $ — Weighted average remaining contractual life (years) — Weighted average intrinsic value $ —
Schedule of changes in the non-vested restricted stock awards	Three months ended March 31, 2023 Weighted Average Number of Grant Date Shares Fair Value Outstanding, beginning of period 129,562 $ 86.01 Granted 198,498 55.83 Forfeited (446) 55.91 Vested (64,990) 84.28 Outstanding at end of period 262,624 $ 63.68

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Mar. 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of Assets and Liabilities measured at fair value on a recurring basis	Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) At March 31, 2023 U.S. Government agency securities $ 60,236 $ — $ 60,236 $ — U.S. State and Municipal securities 9,537 — 9,537 — Residential mortgage securities 335,674 — 335,674 — Commercial mortgage securities 35,299 — 35,299 — Asset-backed securities 3,423 — 3,423 — CRA Mutual Fund 2,087 2,087 — — Derivatives (1,006) — (1,006) — 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 — — Derivatives — — — —
Schedule of carrying amount and estimated fair values of financial instruments	Carrying amounts and estimated fair values of financial instruments carried at amortized cost were as follows (in thousands): Fair Value Measurement Using: Quoted Prices in Active Significant Markets Other Significant Carrying For Identical Observable Unobservable Total Fair At March 31, 2023 Amount Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Value Financial Assets: Cash and due from banks $ 32,525 $ 32,525 $ — $ — $ 32,525 Overnight deposits 266,978 266,978 — — 266,978 Securities held-to-maturity 501,525 — 436,131 — 436,131 Loans, net 4,803,942 — — 4,718,214 4,718,214 Other investments FRB Stock 11,411 N/A N/A N/A N/A FHLB Stock 13,691 N/A N/A N/A N/A Disability Fund 1,500 — 1,500 — 1,500 Time deposits at banks 498 498 — — 498 Receivable from prepaid card programs, net 83,787 — — 83,787 83,787 Accrued interest receivable 24,006 — 859 23,147 24,006 Financial Liabilities: Non-interest-bearing demand deposits $ 2,122,606 $ 2,122,606 $ — $ — $ 2,122,606 Money market and savings deposits 2,955,407 2,955,407 — — 2,955,407 Time deposits 53,775 — 52,971 — 52,971 Federal funds purchased 195,000 — 195,000 — 195,000 Federal Home Loan Bank of New York advances 200,000 — 200,000 — 200,000 Trust preferred securities payable 20,620 — — 19,983 19,983 Prepaid debit cardholder balances 11,102 — — 11,102 11,102 Accrued interest payable 689 11 338 340 689 Secured borrowings 7,689 — 7,689 — 7,689 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 4,795,647 — — 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

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	Mar. 31, 2023
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Schedule of reclassifications out of accumulated other comprehensive income	The following table shows the amounts reclassified out of accumulated other comprehensive income for the sale and calls of AFS securities and realized gain on cash flow hedges (in thousands): Affected line item in Three months ended the Consolidated Statements March 31, of Operations 2023 2022 Realized gain on sale of AFS securities $ — $ — Gain on Sale of Securities Income tax (expense) benefit — — Income tax expense Total reclassifications, net of income tax $ — $ — Realized gain on cash flow hedges $ (1,235) $ — Licensing fees Income tax (expense) benefit (377) (599) Income tax expense Total reclassifications, net of income tax $ (1,612) $ (599)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Mar. 31, 2023
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 March 31, 2023 At December 31, 2022 Fixed Variable Fixed Variable Rate Rate Rate Rate Unused commitments $ 36,520 $ 387,399 $ 40,685 $ 364,908 Standby and commercial letters of credit 58,676 — 53,947 — $ 95,196 $ 387,399 $ 94,632 $ 364,908

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	Mar. 31, 2023
REVENUE FROM CONTRACTS WITH CUSTOMERS
Schedule of Company's sources of non-interest income	The following table presents the Company’s revenue from contracts with customers (in thousands): Three months ended March 31, 2023 2022 Service charges on deposit accounts $ 1,456 $ 1,370 Global Payments Group revenue 4,850 5,657 Other service charges and fees 642 506 Total $ 6,948 $ 7,533

DERIVATIVES (Tables)

DERIVATIVES (Tables)	3 Months Ended
DERIVATIVES (Tables)	Mar. 31, 2023
DERIVATIVES
Schedule of notional amount and fair value	The following tables reflect the derivatives recorded on the balance sheet (in thousands): Fair Value Notional Asset / Amount (Liability) At March 31, 2023 Derivatives designated as hedges: Interest rate swap related to customer deposits $ 400,000 $ (1,006) Total included in Other Assets $ 400,000 $ (1,006) At December 31, 2022 Derivatives designated as hedges: Interest rate cap related to customer deposits $ — $ — Total included in Other Assets $ — $ —
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): Three months ended March 31, 2023 2022 Interest rate caps related to customer deposits Amount of gain (loss) recognized in OCI, net of tax $ (699) $ 6,087 Amount of gain (loss) reclassified from OCI into income $ 1,235 $ — Location of gain (loss) reclassified from OCI into income Licensing fees N/A

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Loan commitments	$ 47,752,000	$ 44,876,000
Decreased retained earnings	263,783,000	$ 240,810,000
Cumulative Effect, Period of Adoption, Adjustment \| ASU 2016-13
Loan commitments	3,000,000
Increased deferred tax assets	777,000
Decreased retained earnings	$ 2,100,000

INVESTMENT SECURITIES (Schedule

INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities available-for-sale) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Available-for-sale Securities [Line Items]
Investment securities available-for-sale, at fair value	$ 444,169	$ 445,747
Available-for-sale Securities.
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	524,854	534,665
Gross Unrealized/Unrecognized Gains	793	289
Gross Unrealized/Unrecognized Losses	(81,478)	(89,207)
Investment securities available-for-sale, at fair value	444,169	445,747
Available-for-sale Securities. \| U.S. Government agency securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	67,996	67,996
Gross Unrealized/Unrecognized Gains		0
Gross Unrealized/Unrecognized Losses	(7,760)	(8,624)
Investment securities available-for-sale, at fair value	60,236	59,372
Available-for-sale Securities. \| U.S. State and Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	11,611	11,649
Gross Unrealized/Unrecognized Gains		0
Gross Unrealized/Unrecognized Losses	(2,074)	(2,437)
Investment securities available-for-sale, at fair value	9,537	9,212
Available-for-sale Securities. \| Residential MBS
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	404,577	413,998
Gross Unrealized/Unrecognized Gains	481	279
Gross Unrealized/Unrecognized Losses	(69,384)	(75,729)
Investment securities available-for-sale, at fair value	335,674	338,548
Available-for-sale Securities. \| Commercial MBS
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	37,043	37,069
Gross Unrealized/Unrecognized Gains	312	10
Gross Unrealized/Unrecognized Losses	(2,056)	(2,229)
Investment securities available-for-sale, at fair value	35,299	34,850
Available-for-sale Securities. \| Asset-backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,627	3,953
Gross Unrealized/Unrecognized Gains		0
Gross Unrealized/Unrecognized Losses	(204)	(188)
Investment securities available-for-sale, at fair value	$ 3,423	$ 3,765

INVESTMENT SECURITIES (Schedu_2

INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities held-to-maturity) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 501,525	$ 510,425
Total Securities	436,100	437,300
Held-to-maturity Securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	501,525	510,425
Gross Unrealized/Unrecognized Gains		0
Gross Unrealized/Unrecognized Losses	(65,394)	(73,135)
Total Securities	436,131	437,290
Held-to-maturity Securities \| US Treasury Securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	29,863	29,852
Gross Unrealized/Unrecognized Gains		0
Gross Unrealized/Unrecognized Losses	(1,854)	(2,223)
Total Securities	28,009	27,629
Held-to-maturity Securities \| U.S. State and Municipal securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	15,753	15,814
Gross Unrealized/Unrecognized Gains		0
Gross Unrealized/Unrecognized Losses	(2,096)	(2,609)
Total Securities	13,657	13,205
Held-to-maturity Securities \| Residential MBS
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	447,803	456,648
Gross Unrealized/Unrecognized Gains		0
Gross Unrealized/Unrecognized Losses	(60,302)	(67,027)
Total Securities	387,501	389,621
Held-to-maturity Securities \| Commercial MBS
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	8,106	8,111
Gross Unrealized/Unrecognized Gains		0
Gross Unrealized/Unrecognized Losses	(1,142)	(1,276)
Total Securities	$ 6,964	$ 6,835

INVESTMENT SECURITIES (Schedu_3

INVESTMENT SECURITIES (Schedule of amortized cost and fair value of marketable equity securities) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Marketable Securities [Line Items]
Proceeds	$ 0	$ 0
Equity securities
Marketable Securities [Line Items]
Amortized Cost	2,370		$ 2,358
Gross Unrealized/Unrecognized Gains			0
Gross Unrealized/Unrecognized Losses	(283)		(310)
Fair Value	2,087		2,048
Equity securities \| CRA mutual fund
Marketable Securities [Line Items]
Amortized Cost	2,370		2,358
Gross Unrealized/Unrecognized Gains			0
Gross Unrealized/Unrecognized Losses	(283)		(310)
Fair Value	$ 2,087		$ 2,048

INVESTMENT SECURITIES (Schedu_4

INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Classified by Contractual Maturity) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Amortized Cost
After 1 year through 5 years	$ 29,863	$ 29,852
After 5 years though 10 years	9,428	9,505
After 10 years	462,234	471,068
Amortized Cost, total	501,525	510,425
Fair Value
After 1 year through 5 years	28,009	27,630
After 5 years though 10 years	8,195	8,130
After 10 years	399,927	401,530
Fair Value, total	436,131	437,290
Amortized Cost
After 1 year through 5 years	64,575	54,736
After 5 years though 10 years	25,554	36,043
After 10 years	434,725	443,886
Amortized Cost, total	524,854	534,665
Fair Value
After 1 year through 5 years	58,161	48,959
After 5 years though 10 years	24,246	32,872
After 10 years	361,762	363,916
Fair Value, total	444,169	445,747
Asset Pledged as Collateral
Fair Value
Securities pledged	3,200,000	2,400,000
Asset Pledged as Collateral \| FRB
Fair Value
Securities pledged	$ 921,500	$ 25,000

INVESTMENT SECURITIES (Schedu_5

INVESTMENT SECURITIES (Schedule of Securities with Unrealized Losses) (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) item	Dec. 31, 2022 USD ($) 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	3,204	35,528
Less than 12 Months, Unrealized/Unrecognized Losses	(148)	(2,379)
12 months or more, Estimated Fair Value	406,536	387,125
12 months or more, Unrealized/Unrecognized Losses	(81,330)	(86,828)
Total, Estimated Fair Value	409,740	422,653
Total, Unrealized/Unrecognized Losses	(81,478)	(89,207)
Held-to-maturity Securities
Held-to-maturity Securities
Less than 12 Months, Estimated Fair Value	69,642	194,848
Less than 12 Months, Unrealized/Unrecognized Losses	(2,606)	(23,599)
12 months or more, Estimated Fair Value	366,489	242,442
12 months or more, Unrealized/Unrecognized Losses	(62,788)	(49,536)
Total, Estimated Fair Value	436,131	437,290
Total, Unrealized Losses	(65,394)	(73,135)
U.S. Government agency securities \| Available-for-sale Securities.
Available-for-sale Securities
Less than 12 Months, Estimated Fair Value	0	0
Less than 12 Months, Unrealized/Unrecognized Losses	0	0
12 months or more, Estimated Fair Value	60,236	59,372
12 months or more, Unrealized/Unrecognized Losses	(7,760)	(8,624)
Total, Estimated Fair Value	60,236	59,372
Total, Unrealized/Unrecognized Losses	(7,760)	(8,624)
U.S. State and Municipal securities \| Available-for-sale Securities.
Available-for-sale Securities
Less than 12 Months, Estimated Fair Value	0	2,546
Less than 12 Months, Unrealized/Unrecognized Losses	0	(527)
12 months or more, Estimated Fair Value	9,537	6,666
12 months or more, Unrealized/Unrecognized Losses	(2,074)	(1,910)
Total, Estimated Fair Value	9,537	9,212
Total, Unrealized/Unrecognized Losses	(2,074)	(2,437)
U.S. State and Municipal securities \| Held-to-maturity Securities
Held-to-maturity Securities
Less than 12 Months, Estimated Fair Value	0	13,205
Less than 12 Months, Unrealized/Unrecognized Losses	0	(2,609)
12 months or more, Estimated Fair Value	13,657
12 months or more, Unrealized/Unrecognized Losses	(2,096)
Total, Estimated Fair Value	13,657	13,205
Total, Unrealized Losses	(2,096)	(2,609)
Residential MBS \| Available-for-sale Securities.
Available-for-sale Securities
Less than 12 Months, Estimated Fair Value	699	19,576
Less than 12 Months, Unrealized/Unrecognized Losses	(32)	(1,654)
12 months or more, Estimated Fair Value	321,976	305,936
12 months or more, Unrealized/Unrecognized Losses	(69,352)	(74,075)
Total, Estimated Fair Value	322,675	325,512
Total, Unrealized/Unrecognized Losses	(69,384)	(75,729)
Residential MBS \| Held-to-maturity Securities
Held-to-maturity Securities
Less than 12 Months, Estimated Fair Value	69,642	162,960
Less than 12 Months, Unrealized/Unrecognized Losses	(2,606)	(19,625)
12 months or more, Estimated Fair Value	317,859	226,661
12 months or more, Unrealized/Unrecognized Losses	(57,696)	(47,402)
Total, Estimated Fair Value	387,501	389,621
Total, Unrealized Losses	(60,302)	(67,027)
Commercial MBS \| Available-for-sale Securities.
Available-for-sale Securities
Less than 12 Months, Estimated Fair Value	2,505	13,406
Less than 12 Months, Unrealized/Unrecognized Losses	(116)	(198)
12 months or more, Estimated Fair Value	11,364	11,386
12 months or more, Unrealized/Unrecognized Losses	(1,940)	(2,031)
Total, Estimated Fair Value	13,869	24,792
Total, Unrealized/Unrecognized Losses	(2,056)	(2,229)
Commercial MBS \| Held-to-maturity Securities
Held-to-maturity Securities
Less than 12 Months, Estimated Fair Value	0	0
Less than 12 Months, Unrealized/Unrecognized Losses	0	0
12 months or more, Estimated Fair Value	6,964	6,835
12 months or more, Unrealized/Unrecognized Losses	(1,142)	(1,276)
Total, Estimated Fair Value	6,964	6,835
Total, Unrealized Losses	(1,142)	(1,276)
Asset-backed Securities \| Available-for-sale Securities.
Available-for-sale Securities
Less than 12 Months, Estimated Fair Value	0	0
Less than 12 Months, Unrealized/Unrecognized Losses	0	0
12 months or more, Estimated Fair Value	3,423	3,765
12 months or more, Unrealized/Unrecognized Losses	(204)	(188)
Total, Estimated Fair Value	3,423	3,765
Total, Unrealized/Unrecognized Losses	(204)	(188)
US Treasury Securities \| Held-to-maturity Securities
Held-to-maturity Securities
Less than 12 Months, Estimated Fair Value	0	18,683
Less than 12 Months, Unrealized/Unrecognized Losses	0	(1,365)
12 months or more, Estimated Fair Value	28,009	8,946
12 months or more, Unrealized/Unrecognized Losses	(1,854)	(858)
Total, Estimated Fair Value	28,009	27,629
Total, Unrealized Losses	$ (1,854)	$ (2,223)

LOANS AND ALLOWANCE FOR CREDI_3

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Loan Receivables) (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 4,865,028,000	$ 4,853,495,000
Deferred fees, net of origination costs	(13,334,000)	(12,972,000)
Loans, net of deferred fees and costs	4,851,694,000	4,840,523,000
Allowance for credit losses	(47,752,000)	(44,876,000)	$ (38,134,000)	$ (34,729,000)
Net loans	4,803,942,000	4,795,647,000
Asset Pledged as Collateral
Loans and Leases Receivable Disclosure [Line Items]
Securities pledged	3,200,000,000	2,400,000,000
Real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	3,899,093,000	3,919,948,000
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total loans	935,541,000	908,616,000
Allowance for credit losses	(10,757,000)	(10,274,000)	(8,488,000)	(7,708,000)
Commercial and industrial \| Paycheck Protection Program loans
Loans and Leases Receivable Disclosure [Line Items]
Net loans	84,000	97,000
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total loans	30,394,000	24,931,000
Allowance for credit losses	(620,000)	(195,000)	(237,000)	(404,000)
Commercial \| Real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	3,279,321,000	3,254,508,000
Allowance for credit losses	(31,836,000)	(29,496,000)	(24,720,000)	(22,216,000)
Commercial \| Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total loans		908,616,000
Construction
Loans and Leases Receivable Disclosure [Line Items]
Total loans		143,693,000
Construction \| Real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	123,292,000	143,693,000
Allowance for credit losses	(1,261,000)	(1,983,000)	(2,329,000)	(2,105,000)
Multifamily
Loans and Leases Receivable Disclosure [Line Items]
Total loans		468,540,000
Multifamily \| Real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	444,052,000	468,540,000
Allowance for credit losses	(2,871,000)	(2,823,000)	(2,256,000)	(2,156,000)
One to four family \| Real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	52,428,000	53,207,000
Allowance for credit losses	$ (407,000)	$ (105,000)	$ (104,000)	$ (140,000)

LOANS AND ALLOWANCE FOR CREDI_4

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Activity in the Allowance for Loan Losses by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 44,876	$ 34,729
Provision /(credit) for loan losses	726	3,400
Loans charged-off	(100)
Recoveries		5
Total ending allowance balance	47,752	38,134
Net charge-offs	100,000	5,000
Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	2,250
Real estate \| Commercial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	29,496	22,216
Provision /(credit) for loan losses	2,292	2,504
Total ending allowance balance	31,836	24,720
Real estate \| Commercial \| Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	48
Real estate \| Construction
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	1,983	2,105
Provision /(credit) for loan losses	(1,146)	224
Total ending allowance balance	1,261	2,329
Real estate \| Construction \| Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	424
Real estate \| Multifamily
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	2,823	2,156
Provision /(credit) for loan losses	(657)	100
Total ending allowance balance	2,871	2,256
Real estate \| Multifamily \| Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	705
Real estate \| One to four family
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	105	140
Provision /(credit) for loan losses	121	(36)
Total ending allowance balance	407	104
Real estate \| One to four family \| Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	181
Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	10,274	7,708
Provision /(credit) for loan losses	12	780
Total ending allowance balance	10,757	8,488
Commercial and industrial \| Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	471
Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	195	404
Provision /(credit) for loan losses	104	(172)
Loans charged-off	(100)
Recoveries		5
Total ending allowance balance	620	$ 237
Consumer \| Cumulative Effect, Period of Adoption, Adjustment
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 421

LOANS AND ALLOWANCE FOR CREDI_5

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Unfunded loan commitment allowances activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Activity in the ACL for unfunded loan commitments
Balance at the beginning of period	$ 44,876
Total ending allowance balance	47,752
Unfunded loan commitment
Activity in the ACL for unfunded loan commitments
Balance at the beginning of period	180	$ 180
Provision/(credit) for credit losses	(80)
Total ending allowance balance	877	$ 180
Unfunded loan commitment \| Cumulative Effect, Period of Adoption, Adjustment
Activity in the ACL for unfunded loan commitments
Balance at the beginning of period	$ 777

LOANS AND ALLOWANCE FOR CREDI_6

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Loans by Impairment Method) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment, Allowance for loan losses	$ 24	$ 24
Collectively evaluated for impairment, Allowance for loan losses	47,728	44,852
Total ending loan balance	47,752	44,876
Individually evaluated for impairment, Loans	40,793	27,663
Collectively evaluated for impairment, Loans	4,824,235	4,825,832
Total ending loan balance	4,865,028	4,853,495
Commercial
Loans and Leases Receivable Disclosure [Line Items]
Total ending loan balance	3,279,321
Construction
Loans and Leases Receivable Disclosure [Line Items]
Total ending loan balance	123,292
Multifamily
Loans and Leases Receivable Disclosure [Line Items]
Total ending loan balance	444,052
One to four family
Loans and Leases Receivable Disclosure [Line Items]
Total ending loan balance	52,428
Real estate \| Commercial
Loans and Leases Receivable Disclosure [Line Items]
Collectively evaluated for impairment, Allowance for loan losses	31,836	29,496
Total ending loan balance	31,836	29,496
Individually evaluated for impairment, Loans	40,769	26,740
Collectively evaluated for impairment, Loans	3,238,552	3,227,768
Total ending loan balance	3,279,321	3,254,508
Real estate \| Construction
Loans and Leases Receivable Disclosure [Line Items]
Collectively evaluated for impairment, Allowance for loan losses	1,261	1,983
Total ending loan balance	1,261	1,983
Collectively evaluated for impairment, Loans	123,292	143,693
Total ending loan balance	123,292	143,693
Real estate \| Multifamily
Loans and Leases Receivable Disclosure [Line Items]
Collectively evaluated for impairment, Allowance for loan losses	2,871	2,823
Total ending loan balance	2,871	2,823
Collectively evaluated for impairment, Loans	444,052	468,540
Total ending loan balance	444,052	468,540
Real estate \| One to four family
Loans and Leases Receivable Disclosure [Line Items]
Collectively evaluated for impairment, Allowance for loan losses	407	105
Total ending loan balance	407	105
Individually evaluated for impairment, Loans		899
Collectively evaluated for impairment, Loans	52,428	52,308
Total ending loan balance	52,428	53,207
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Collectively evaluated for impairment, Allowance for loan losses	10,757	10,274
Total ending loan balance	10,757	10,274
Collectively evaluated for impairment, Loans	935,541	908,616
Total ending loan balance	935,541	908,616
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment, Allowance for loan losses	24	24
Collectively evaluated for impairment, Allowance for loan losses	596	171
Total ending loan balance	620	195
Individually evaluated for impairment, Loans	24	24
Collectively evaluated for impairment, Loans	30,370	24,907
Total ending loan balance	$ 30,394	$ 24,931

LOANS AND ALLOWANCE FOR CREDI_7

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Non-accrual Loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual	$ 24,024	$ 24
Nonaccrual without an ACL	24,000
Loans Past Due Over 90 Days Still Accruing	0
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual	24,000
Nonaccrual without an ACL	24,000
Loans Past Due Over 90 Days Still Accruing	0
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual	24	$ 24
Loans Past Due Over 90 Days Still Accruing	$ 0

LOANS AND ALLOWANCE FOR CREDI_8

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Past Due Loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	$ 4,865,028	$ 4,853,495
30 - 59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	9,724	8,058
60 - 89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	17,657	24,000
90 days and greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	24,024	24
Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	51,405	32,082
Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	4,813,623	4,821,413
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	3,279,321
Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	123,292
Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	444,052
One to four family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	52,428
One to four family \| Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	52,428
Real estate \| Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	3,279,321	3,254,508
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	24,000
Real estate \| Commercial \| Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	24,000	24,000
Real estate \| Commercial \| Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	3,255,321	3,230,508
Real estate \| Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	123,292	143,693
Real estate \| Construction \| Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	123,292	143,693
Real estate \| Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	444,052	468,540
Real estate \| Multifamily \| 30 - 59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	9,675	8,000
Real estate \| Multifamily \| 60 - 89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	17,625
Real estate \| Multifamily \| Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	27,300	8,000
Real estate \| Multifamily \| Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	416,752	460,540
Real estate \| One to four family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	52,428	53,207
Real estate \| One to four family \| Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	52,428	53,207
Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	935,541	908,616
Commercial and industrial \| 30 - 59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	35	37
Commercial and industrial \| 60 - 89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	32
Commercial and industrial \| Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	67	37
Commercial and industrial \| Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	935,474	908,579
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	30,394	24,931
Consumer \| 30 - 59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	14	21
Consumer \| 90 days and greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	24	24
Consumer \| Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	38	45
Consumer \| Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	$ 30,356	$ 24,886

LOANS AND ALLOWANCE FOR CREDI_9

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Loans by Risk Category) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) loan	Dec. 31, 2022 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 4,865,028	$ 4,853,495
Number of TDR loans during the period \| loan	0
Construction
Loans and Leases Receivable Disclosure [Line Items]
Total loans		143,693
Construction \| Pass
Loans and Leases Receivable Disclosure [Line Items]
Total loans		143,693
Multifamily
Loans and Leases Receivable Disclosure [Line Items]
Total loans		468,540
Multifamily \| Pass
Loans and Leases Receivable Disclosure [Line Items]
Total loans		468,540
Receivables other than one to four family and consumer loans
Loans and Leases Receivable Disclosure [Line Items]
Total loans		4,775,357
Receivables other than one to four family and consumer loans \| Pass
Loans and Leases Receivable Disclosure [Line Items]
Total loans		4,681,312
Receivables other than one to four family and consumer loans \| Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Total loans		67,630
Receivables other than one to four family and consumer loans \| Substandard
Loans and Leases Receivable Disclosure [Line Items]
Total loans		26,415
Real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 3,899,093	3,919,948
Real estate \| Commercial
Loans and Leases Receivable Disclosure [Line Items]
Total loans	3,279,321	3,254,508
Real estate \| Commercial \| Pass
Loans and Leases Receivable Disclosure [Line Items]
Total loans		3,192,212
Real estate \| Commercial \| Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Total loans		35,881
Real estate \| Commercial \| Substandard
Loans and Leases Receivable Disclosure [Line Items]
Total loans		26,415
Real estate \| Construction
Loans and Leases Receivable Disclosure [Line Items]
Total loans	123,292	143,693
Real estate \| Multifamily
Loans and Leases Receivable Disclosure [Line Items]
Total loans	444,052	468,540
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 935,541	908,616
Commercial and industrial \| Commercial
Loans and Leases Receivable Disclosure [Line Items]
Total loans		908,616
Commercial and industrial \| Commercial \| Pass
Loans and Leases Receivable Disclosure [Line Items]
Total loans		876,867
Commercial and industrial \| Commercial \| Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Total loans		$ 31,749

LOANS AND ALLOWANCE FOR CRED_10

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Credit Quality Indicator (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	$ 4,865,028	$ 4,853,495
Past Due
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	51,405	32,082
Current
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	4,813,623	4,821,413
Commercial and industrial
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2023	61,040
2022	372,209
2021	126,347
2020	32,843
2019	17,929
2018 & Prior	12,998
Revolving	312,175
Loans	935,541	908,616
Commercial and industrial \| Past Due
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	67	37
Commercial and industrial \| Current
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	935,474	908,579
Consumer
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2023	7,468
2021	780
2018 & Prior	22,146
Loans	30,394	24,931
Consumer \| Past Due
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2018 & Prior	38
Loans	38	45
Consumer \| Current
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2023	7,468
2021	780
2018 & Prior	22,108
Loans	30,356	24,886
Commercial
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2023	454,204
2022	1,587,899
2021	611,582
2020	202,380
2019	226,188
2018 & Prior	154,132
Revolving	42,936
Loans	3,279,321
Commercial \| Commercial
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	40,800
Commercial \| Real estate
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	3,279,321	3,254,508
Commercial \| Real estate \| Past Due
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	24,000	24,000
Commercial \| Real estate \| Current
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	3,255,321	3,230,508
Construction
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2023	18,720
2022	70,550
2021	34,022
Loans	123,292
Construction \| Real estate
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	123,292	143,693
Construction \| Real estate \| Current
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	123,292	143,693
Multifamily
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2023	5,534
2022	188,701
2021	73,566
2020	33,028
2019	38,181
2018 & Prior	100,392
Revolving	4,650
Loans	444,052
Multifamily \| Real estate
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	444,052	468,540
Multifamily \| Real estate \| Past Due
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	27,300	8,000
Multifamily \| Real estate \| Current
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	416,752	460,540
One to four family
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2022	4,249
2020	10,432
2019	12,484
2018 & Prior	25,262
Loans	52,428
One to four family \| Current
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2022	4,249
2020	10,432
2019	12,484
2018 & Prior	25,262
Loans	52,428
One to four family \| Real estate
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	52,428	53,207
One to four family \| Real estate \| Current
LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans	52,428	$ 53,207
Pass \| Commercial and industrial
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2023	61,040
2022	358,209
2021	126,347
2020	32,843
2019	17,929
2018 & Prior	12,998
Revolving	293,176
Loans	902,542
Pass \| Commercial
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2023	445,656
2022	1,528,343
2021	596,881
2020	185,291
2019	226,188
2018 & Prior	154,132
Revolving	42,936
Loans	3,179,427
Pass \| Construction
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2023	18,720
2022	70,550
2021	34,022
Loans	123,292
Pass \| Multifamily
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2023	5,534
2022	188,701
2021	73,566
2020	33,028
2019	38,181
2018 & Prior	100,392
Revolving	4,650
Loans	444,052
Special Mention \| Commercial and industrial
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2022	14,000
Revolving	18,999
Loans	32,999
Special Mention \| Commercial
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2023	8,548
2022	35,556
2021	14,701
2020	320
Loans	59,125
Substandard \| Commercial
LOANS AND ALLOWANCE FOR CREDIT LOSSES
2022	24,000
2020	16,769
Loans	$ 40,769

LOANS AND ALLOWANCE FOR CRED_11

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Impaired by Class of Loans) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2022
With an allowance recorded:
Unpaid Principal Balance		$ 24
Recorded Investment		24
Allowance for Loan Losses Allocated		24
Average Recorded Investment	$ 387
Interest Income Recognized	3
Without an allowance recorded:
Unpaid Principal Balance		29,160
Recorded Investment		27,639
Average Recorded Investment	34,214
Interest Income Recognized	236
Real estate \| One to four family
With an allowance recorded:
Average Recorded Investment	224
Interest Income Recognized	3
Without an allowance recorded:
Unpaid Principal Balance		1,176
Recorded Investment		899
Average Recorded Investment	716
Interest Income Recognized	6
Real estate \| Commercial
Without an allowance recorded:
Unpaid Principal Balance		27,984
Recorded Investment		26,740
Consumer
With an allowance recorded:
Unpaid Principal Balance		24
Recorded Investment		24
Allowance for Loan Losses Allocated		$ 24
Average Recorded Investment	163
Without an allowance recorded:
Average Recorded Investment	33,498
Interest Income Recognized	$ 230

BORROWINGS (Advances from the F

BORROWINGS (Advances from the FHLB) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
BORROWINGS
Federal funds purchased and securities sold under agreements to repurchase	$ 195,000	$ 150,000
Federal Home Loan Bank of New York advances	200,000	100,000
Interest expense, Federal funds purchased and securities sold under agreements to repurchase	1,369
Interest Expense, Federal home loan bank of New York advance	$ 657
Weighted average Interest rate	5.15%
Interest rate	4.99%
Securities sold under agreements	$ 0	$ 0

BORROWINGS (Details)

BORROWINGS (Details) - USD ($) $ in Thousands	3 Months Ended
BORROWINGS (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2023
Federal Home Loan Bank, Advances [Line Items]
Interest rate		4.99%
Redemption of subordinated debt	$ 24,712
Subordinated Debt
Federal Home Loan Bank, Advances [Line Items]
Maturity date	Mar. 15, 2027
Interest rate	6.25%
Redemption of subordinated debt	$ 25,000

EARNINGS PER SHARE (Computation

EARNINGS PER SHARE (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Basic
Net income	$ 25,076	$ 19,021
Less: Earnings allocated to participating securities	(84)	(25)
Net income available to common stockholders	$ 24,992	$ 18,996
Weighted average common shares outstanding including participating securities	11,081,924	10,934,091
Less: Weighted average participating securities	(37,300)	(14,223)
Weighted average common shares outstanding	11,044,624	10,919,868
Basic earnings (in dollars per share)	$ 2.26	$ 1.74
Diluted
Net income allocated to common shareholders	$ 24,992	$ 18,996
Weighted average common shares outstanding for basic earnings per common share	11,044,624	10,919,868
Average shares and dilutive potential common shares	11,103,008	11,223,294
Diluted earnings (in dollars per share)	$ 2.25	$ 1.69
Stock Option
Diluted
Add: Dilutive effects of assumed exercise of stock options		190,826
Performance-Based Restricted Stock Units (PRSUs)
Diluted
Dilutive effects of assumed vesting units	58,384	73,561
Restricted stock awards
Calculations of basic and diluted earnings per share
Number of antidilutive shares not considered in computing diluted earnings per share	262,624
Diluted
Dilutive effects of assumed vesting units		39,039

STOCK COMPENSATION PLAN (Summar

STOCK COMPENSATION PLAN (Summary of the Status of the Stock Option Plan) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Number of Options
Outstanding, beginning of year	220,200
Exercised	(220,200)
Outstanding, end of year		220,200
Weighted Average Exercise Price
Outstanding, beginning of year	$ 18
Exercised	$ 18
Outstanding, end of year		$ 18
Intrinsic value of exercises	$ 8.3	$ 0

STOCK COMPENSATION PLAN (Summ_2

STOCK COMPENSATION PLAN (Summary of Non-Vested Restricted Stock Awards) (Details) - Restricted stock awards	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of shares, Outstanding, beginning of period \| shares	129,562
Number of shares, Granted \| shares	198,498
Number of shares, Forfeited \| shares	(446)
Number of shares, Vested \| shares	(64,990)
Number of shares, Outstanding at end of period \| shares	262,624
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date fair Value, beginning of period \| $ / shares	$ 86.01
Weighted Average Grant Date fair Value, Granted \| $ / shares	55.83
Weighted Average Grant Date fair Value, Forfeited \| $ / shares	55.91
Weighted Average Grant Date fair Value, Vested \| $ / shares	84.28
Weighted Average Grant Date fair Value, at end of period \| $ / shares	$ 63.68

STOCK COMPENSATION PLAN (Detail

STOCK COMPENSATION PLAN (Details) - USD ($)	1 Months Ended			3 Months Ended				12 Months Ended
STOCK COMPENSATION PLAN (Details) - USD ($)	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2019	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding shares								220,200
Exercise of stock options (in shares)				220,200
Intrinsic value of exercises				$ 8,300,000				$ 0
Remaining unrecognized compensation expense recognition period				2 years 4 months 9 days
Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense recognized				$ 538,000				471,000
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested stock options				14,300,000
Compensation cost related to stock awards				$ 1,400,000		$ 751,000
Number of shares, Granted				198,498
Number of PRSUs forfeited				446
Restricted stock awards \| Key Personnel
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Granted				170,998		72,025
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				$ 1,200,000
Compensation cost related to stock awards				388,000		$ 298,000
Number of shares, Granted	27,500	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]
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 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, shares authorized, maximum				132,424
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 accelerated 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 accelerated 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 accelerated shares				30,800

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 947,781	$ 958,220
Amount transfer from level 1 to level 2	0	0
Fair value assets measured at fair value on a non-recurring basis	0	0
Carrying Amount \| U.S. Government agency securities \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	60,236	59,372
Carrying Amount \| U.S. State and Municipal securities \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	9,537	9,212
Carrying Amount \| Residential MBS \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	335,674	338,548
Carrying Amount \| Commercial MBS \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	35,299	34,850
Carrying Amount \| Asset-backed Securities \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	3,423	3,765
Carrying Amount \| CRA mutual fund \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	2,087	2,048
Carrying Amount \| Derivatives. \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	1,006
Fair Value, Inputs, Level 1 \| CRA mutual fund \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	2,087	2,048
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	60,236	59,372
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	9,537	9,212
Fair Value, Inputs, Level 2 \| Residential MBS \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	335,674	338,548
Fair Value, Inputs, Level 2 \| Commercial MBS \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	35,299	34,850
Fair Value, Inputs, Level 2 \| Asset-backed Securities \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	3,423	$ 3,765
Fair Value, Inputs, Level 2 \| Derivatives. \| Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 1,006

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial assets:
Securities held to maturity	$ 436,100	$ 437,300
Financial liabilities:
Noninterest-bearing demand deposits	2,122,606	2,422,151
Federal funds purchased	195,000	150,000
Federal Home Loan Bank of New York advances	200,000	100,000
Carrying Amount
Financial assets:
Cash and due from banks	32,525	26,780
Overnight deposits	266,978	230,638
Securities held to maturity	501,525	510,425
Loans, net	4,803,942	4,795,647
Other investments
FRB Stock	11,411	11,421
FHLB Stock	13,691	9,191
Disability Fund	1,500	1,000
Time deposits at banks	498	498
Receivables from prepaid card programs, net	83,787	85,605
Accrued interest receivable	24,006	24,107
Financial liabilities:
Noninterest-bearing demand deposits	2,122,606	2,422,151
Money market and savings deposits	2,955,407	2,803,698
Time deposits	53,775	52,063
Federal funds purchased	195,000	150,000
Federal Home Loan Bank of New York advances	200,000	100,000
Trust preferred securities payable	20,620	20,620
Prepaid debit cardholder balances	11,102	10,579
Accrued interest payable	689	728
Secured Borrowings	7,689	7,725
Total Fair Value
Financial assets:
Cash and due from banks	32,525	26,780
Overnight deposits	266,978	230,638
Securities held to maturity	436,131	437,290
Loans, net	4,718,214	4,737,007
Other investments
Disability Fund	1,500	1,000
Time deposits at banks	498	498
Receivables from prepaid card programs, net	83,787	85,605
Accrued interest receivable	24,006	24,107
Financial liabilities:
Noninterest-bearing demand deposits	2,122,606	2,422,151
Money market and savings deposits	2,955,407	2,803,698
Time deposits	52,971	51,058
Federal funds purchased	195,000	150,000
Federal Home Loan Bank of New York advances	200,000	100,000
Trust preferred securities payable	19,983	19,953
Prepaid debit cardholder balances	11,102	10,579
Accrued interest payable	689	728
Secured Borrowings	7,689	7,725
Fair Value, Inputs, Level 1
Financial assets:
Cash and due from banks	32,525	26,780
Overnight deposits	266,978	230,638
Other investments
Time deposits at banks	498	498
Financial liabilities:
Noninterest-bearing demand deposits	2,122,606	2,422,151
Money market and savings deposits	2,955,407	2,803,698
Accrued interest payable	11	112
Fair Value, Inputs, Level 2
Financial assets:
Securities held to maturity	436,131	437,290
Other investments
Disability Fund	1,500	1,000
Accrued interest receivable	859	964
Financial liabilities:
Time deposits	52,971	51,058
Federal funds purchased	195,000	150,000
Federal Home Loan Bank of New York advances	200,000	100,000
Accrued interest payable	338	293
Secured Borrowings	7,689	7,725
Fair Value, Inputs, Level 3
Financial assets:
Loans, net	4,718,214	4,737,007
Other investments
Receivables from prepaid card programs, net	83,787	85,605
Accrued interest receivable	23,147	23,143
Financial liabilities:
Trust preferred securities payable	19,983	19,953
Prepaid debit cardholder balances	11,102	10,579
Accrued interest payable	$ 340	$ 323

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Licensing fees	$ (2,662)	$ (2,294)
Income tax (expense) benefit	(8,761)	(7,019)
Total reclassifications, net of income tax	25,076	19,021
Reclassifications out of accumulated other comprehensive (loss) income \| Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Licensing fees	(1,235)
Income tax (expense) benefit	(377)	(599)
Total reclassifications, net of income tax	$ (1,612)	$ (599)

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Outstanding following off-balance-sheet financial instruments) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	$ 95,196	$ 94,632
Variable Rate	387,399	364,908
Unused commitments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	36,520,000	40,685,000
Variable Rate	387,399,000	364,908,000
Standby and commercial letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	58,676,000	53,947,000
Variable Rate	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	3 Months Ended	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Amount of off-balance-sheet financial instruments	$ 95,196	$ 94,632
Pre-tax charge		$ 35,000,000
Litigation reserve reversed	$ 2,500,000
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%
Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed interest rate off-balance-sheet financial instruments	7.75%	8.50%
Variable interest rate off-balance-sheet financial instrument	10.30%	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	$ 58,676,000	$ 53,947,000
Amount of off-balance-sheet financial instruments collateral received	$ 28,400,000	$ 28,700,000

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS (Schedule of non-interest income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Non-interest income	$ 6,948	$ 7,533
Service charges on deposit accounts
Non-interest income	1,456	1,370
Global payments revenue
Non-interest income	4,850	5,657
Other service charges and fees
Non-interest income	$ 642	$ 506

DERIVATIVES - (Derivative posit

DERIVATIVES - (Derivative position) (Details) - Derivatives designated as hedging instruments - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2020
Interest rate caps related to customer deposits
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount, derivative asset		$ 300,000
Derivatives unrecognized, termination value	$ 12,700
Interest rate swap related to customer deposits
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount, derivative asset	400,000
Fair value	(1,006)
Other assets.
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount, derivative asset	400,000
Fair value	$ (1,006)

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	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain (loss) recognized in OCI, net of tax	$ (699)	$ 6,087
Amount of gain (loss) reclassified from OCI into income	$ 1,235
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]	Licensing Fees

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	May 03, 2023	Mar. 31, 2023	Mar. 06, 2023	Dec. 31, 2022	Aug. 16, 2016
Debt Instrument [Line Items]
Interest rate		4.99%
Total loans		$ 4,865,028,000		$ 4,853,495,000
Executive Officer [Member]
Debt Instrument [Line Items]
Interest rate on loan to related party			5.70%		2.10%
Total loans			$ 7,500,000	$ 780,000	$ 780,000
Executive Officer [Member] \| Subsequent Event
Debt Instrument [Line Items]
Total loans	$ 0