Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 07, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-40619 | ||
Entity Registrant Name | BLUE FOUNDRY BANCORP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 86-2831373 | ||
Entity Address, Address Line One | 19 Park Avenue, | ||
Entity Address, City or Town | Rutherford, | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07070 | ||
City Area Code | 201 | ||
Local Phone Number | 939-5000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | BLFY | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 28,522,500 | ||
Documents Incorporated by Reference | None | ||
Entity Central Index Key | 0001846017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 0 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 173 |
Auditor Name | Crowe LLP |
Auditor Location | New York, New York |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 193,446 | $ 316,445 |
Securities available for sale, at fair value | 324,892 | 244,587 |
Assets held for sale | 0 | 5,295 |
Securities held to maturity (fair value of $22,849 at December 31, 2021 and $6,979 at December 31, 2020) | 23,281 | 7,005 |
Restricted stock, at cost | 10,182 | 16,860 |
Loans receivable, net of allowance of $14,425 at December 31, 2021 and $16,959 at December 31, 2020 | 1,273,184 | 1,267,114 |
Real estate owned, net | 0 | 624 |
Interest and dividends receivable | 5,372 | 5,749 |
Premises and equipment, net | 28,126 | 19,569 |
Right-of-use assets | 25,457 | 24,878 |
Bank owned life insurance | 21,662 | 21,186 |
Other assets | 8,609 | 13,234 |
Total assets | 1,914,211 | 1,942,546 |
Liabilities | ||
Deposits | 1,247,040 | 1,356,184 |
Advances from the Federal Home Loan Bank | 185,500 | 329,400 |
Advances by borrowers for taxes and insurance | 9,582 | 10,841 |
Lease liabilities | 26,696 | 25,535 |
Other liabilities | 15,922 | 14,986 |
Total liabilities | 1,484,740 | 1,736,946 |
Shareholders’ equity | ||
Common stock $0.01 par value; 70,000,000 shares authorized; 28,522,500 shares issued and outstanding at December 31, 2021 | 285 | 10 |
Additional paid-in capital | 282,006 | 822 |
Retained earnings | 169,457 | 205,799 |
Unallocated common shares held by ESOP (2,190,528 shares) | (21,905) | 0 |
Accumulated other comprehensive loss | (372) | (1,031) |
Total shareholders’ equity | 429,471 | 205,600 |
Total liabilities and shareholders’ equity | $ 1,914,211 | $ 1,942,546 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fair value of securities held for investment | $ 22,849 | $ 6,979 |
Loans receivable, allowance | $ 14,425 | $ 16,959 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, issued (in shares) | 28,522,500 | |
Common stock, outstanding (in shares) | 28,522,500 | |
Unallocated shares held by ESOP (in shares) | 2,190,528 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income: | ||
Loans | $ 48,719 | $ 54,125 |
Taxable investment income | 6,821 | 6,872 |
Non-taxable investment income | 513 | 628 |
Total interest income | 56,053 | 61,625 |
Interest expense: | ||
Deposits | 7,884 | 15,881 |
Borrowed funds | 5,220 | 6,676 |
Total interest expense | 13,104 | 22,557 |
Net interest income | 42,949 | 39,068 |
(Recovery of) provision for loan losses | (2,518) | 2,518 |
Net interest income after (recovery of) provision for loan losses | 45,467 | 36,550 |
Non-interest income: | ||
Fees and service charges | 1,975 | 1,739 |
(Loss) gain on sales and calls of securities available for sale | (1) | 69 |
Loss on premises and equipment | (79) | 0 |
Net loss on real estate owned | (6) | (1,390) |
Other | 590 | 789 |
Total non-interest income | 2,479 | 1,207 |
Non-interest expense: | ||
Compensation and employee benefits | 25,206 | 22,639 |
Loss on pension withdrawal | 11,206 | 0 |
Occupancy and equipment | 7,929 | 6,160 |
Loss on assets held for sale | 104 | 12,775 |
Data processing | 6,933 | 3,790 |
Prepayment fees | 2,155 | 843 |
Advertising | 2,390 | 2,636 |
Professional services | 4,528 | 8,519 |
Directors fees | 549 | 493 |
Provision for commitment and letters of credit | 689 | 1,311 |
Federal deposit insurance | 494 | 326 |
Goodwill impairment | 0 | 15,460 |
Contribution to Blue Foundry Charitable Foundation | 9,000 | 0 |
Other | 3,487 | 2,177 |
Total non-interest expense | 74,670 | 77,129 |
Loss before income tax expense (benefit) | (26,724) | (39,372) |
Income tax expense (benefit) | 9,618 | (7,866) |
Net loss | $ (36,342) | $ (31,506) |
Basic loss per share (in dollars per share) | $ (2.99) | |
Diluted loss per share (in dollars per share) | $ (2.99) | |
Weighted average shares outstanding, basic (in shares) | 12,171,050 | |
Weighted average shares outstanding, diluted (in shares) | 12,171,050 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (36,342) | $ (31,506) |
Unrealized (loss) gain on securities available for sale: | ||
Unrealized holding (loss) gain arising during the period | (4,626) | 4,511 |
Reclassification adjustment for losses (gains) included in net income | 1 | (69) |
Unrealized gain (loss) on securities available for sale | (4,625) | 4,442 |
Unrealized gain (loss) on cash flow hedge: | ||
Reclassification adjustment for losses included in net income | 1,427 | 752 |
Unrealized holding gain (loss) arising during the period | 3,871 | (5,795) |
Unrealized gain (loss) on cash flow hedge | 5,298 | (5,043) |
Defined benefit plans: | ||
Net gain (loss) arising during the period | 315 | (439) |
Net actuarial loss | 210 | 189 |
Defined benefit plans | 525 | (250) |
Total tax effect | (539) | 337 |
Total other comprehensive income (loss) | 659 | (514) |
Comprehensive loss | $ (35,683) | $ (32,020) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands | Total | Charitable Foundation | Blue Foundry Bank ESOP | Common Stock | Common StockCharitable Foundation | Additional Paid-In Capital | Additional Paid-In CapitalCharitable Foundation | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period at Dec. 31, 2019 | $ 237,620 | $ 0 | $ 10 | $ 822 | $ 237,305 | $ (517) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | (31,506) | (31,506) | |||||||
Purchase of common shares by the ESOP (2,281,800 shares) | 0 | ||||||||
Other comprehensive income | (514) | (514) | |||||||
Balance at end of period at Dec. 31, 2020 | 205,600 | 0 | 10 | 822 | 205,799 | (1,031) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | (36,342) | (36,342) | |||||||
Proceeds from stock issued during the period | 273,598 | $ 7,500 | 268 | $ 7 | 273,330 | $ 7,493 | |||
Purchase of common shares by the ESOP (2,281,800 shares) | (22,818) | (22,818) | |||||||
ESOP shares committed to be released (91,272 shares) | 1,274 | 913 | 361 | ||||||
Other comprehensive income | 659 | 659 | |||||||
Balance at end of period at Dec. 31, 2021 | $ 429,471 | $ (21,905) | $ 285 | $ 282,006 | $ 169,457 | $ (372) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders’ Equity (Parenthetical) $ in Millions | 3 Months Ended |
Dec. 31, 2021USD ($)shares | |
Statement of Stockholders' Equity [Abstract] | |
Stock offering costs incurred and deferred | $ | $ 4.8 |
Unallocated common stock held by ESOP (in shares) | 2,281,800 |
ESOP shares committed to be released (in shares) | 91,272 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (36,342,000) | $ (31,506,000) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of premises and equipment | 2,347,000 | 1,925,000 |
Change in right-of-use asset | 2,618,000 | 1,589,000 |
Amortization of: | ||
Deferred loan fees, costs, and discounts, net | 1,107,000 | 995,000 |
Premiums and discounts on securities, net | 893,000 | 309,000 |
Goodwill impairment | 0 | 15,460,000 |
Deferred income tax expense (benefit) | 8,733,000 | (6,445,000) |
Dividends on CRA fund | 0 | (15,000) |
(Recovery) provision for loan losses | (2,518,000) | 2,518,000 |
Loss (gain) on sales and calls of securities | 1,000 | (69,000) |
Loss on assets held for sale | 104,000 | 12,775,000 |
Loss on premises and equipment | 79,000 | 0 |
Net loss on Real Estate Owned | 6,000 | 1,390,000 |
Increase in BOLI cash surrender value | (476,000) | (595,000) |
Issuance of common shares donated to Blue Foundry Charitable Foundation | 7,500,000 | 0 |
ESOP expense | 1,274,000 | 0 |
Decrease (increase) in interest and dividends receivable | 377,000 | (355,000) |
(Increase) decrease in other assets | (2,134,000) | 997,000 |
Increase in other liabilities | 4,325,000 | 707,000 |
Change in lease liability | (2,036,000) | (932,000) |
Net cash used by operating activities | (14,142,000) | (1,252,000) |
Cash flows from investing activities | ||
Net decrease in loans | 86,975,000 | 139,148,000 |
Purchases of residential mortgage loans | (91,635,000) | 0 |
Proceeds from sale of Real Estate Owned | 618,000 | 0 |
Purchases of securities available for sale | (164,958,000) | (128,569,000) |
Purchases of securities held to maturity | (23,362,000) | 0 |
Sales of equity securities | 0 | 4,178,000 |
Proceeds from calls of securities held to maturity | 7,000,000 | 2,500,000 |
Proceeds from sales and calls of securities available for sale | 14,216,000 | 13,235,000 |
Principal payments and maturities on securities available for sale | 65,002,000 | 79,363,000 |
Purchase of Federal Home Loan Bank stock | 0 | (4,028,000) |
Redemption of Federal Home Loan Bank stock | 6,678,000 | 2,579,000 |
Proceeds from Bank owned life insurance | 0 | 280,000 |
Proceeds from Assets held for sale | 6,034,000 | 0 |
Purchases of premises and equipment | (11,902,000) | (7,293,000) |
Net cash (used) provided by investing activities | (105,334,000) | 101,393,000 |
Cash flows from financing activities | ||
Net (decrease) increase in deposits | (109,144,000) | 61,136,000 |
Proceeds of advances from Federal Home Loan Bank | 583,600,000 | 621,000,000 |
Repayments of advances from Federal Home Loan Bank | (727,500,000) | (588,500,000) |
Net decrease in advances by borrowers for taxes and insurance | (1,259,000) | (1,366,000) |
Net proceeds from issuance of common shares | 250,780,000 | 0 |
Net cash (used) provided by financing activities | (3,523,000) | 92,270,000 |
Net (decrease) increase in cash and cash equivalents | (122,999,000) | 192,411,000 |
Cash and cash equivalents at beginning of period | 316,445,000 | 124,034,000 |
Cash and cash equivalents at end of period | 193,446,000 | 316,445,000 |
Cash paid during the period for: | ||
Interest | 12,836,000 | 22,569,000 |
Income taxes | 150,000 | 167,000 |
Supplemental noncash disclosures | ||
Transfers of assets to held for sale | 892,000 | 5,695,000 |
Lease liabilities arising from obtaining right-of-use assets | 3,197,000 | 26,467,000 |
Purchase of common shares by the ESOP (2,281,800 shares) | $ (22,818,000) | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements include the accounts of Blue Foundry Bancorp (the “Company”), and its wholly owned subsidiary, Blue Foundry Bank (the “Bank”), and the Bank’s wholly owned subsidiaries, Blue Foundry Service Corp., Rutherford Center Development Corp., Blue Foundry Investment Company (collectively, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Blue Foundry Bancorp owns 100% of the common stock of Blue Foundry Bank. Business The Company provides a wide range of banking services to individual and business customers through branch offices in New Jersey. The Company is subject to competition from other financial institutions and to the regulations of certain federal and state agencies, and undergoes periodic examinations by those regulatory authorities. On July 15, 2021, the Company became the holding company for the Bank when Blue Foundry, MHC completed its conversion into the stock holding company form of organization. In connection with the conversion, the Company sold 27,772,500 shares of common stock at a price of $10 per share, for gross proceeds of $277.7 million. The Company contributed 750,000 shares of common stock and $1.5 million in cash to Blue Foundry Charitable Foundation, Inc. and established an Employee Stock Ownership Plan (“ESOP”) acquiring 2,281,800 shares of common stock. Shares of the Company’s common stock began trading on July 16, 2021 on the Nasdaq Global Select Market under the trading symbol “BLFY.” Basis of Financial Statement Presentation The consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles. The audited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statement of financial condition and revenues and expenses for the period. Actual results could differ from those estimates. Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. The results of operations and other data presented for the year ended December 31, 2021 are not necessarily indicative of the results of operations that may be expected for subsequent periods. Cash and Cash Equivalents Cash and cash equivalents include cash and deposits with other financial institutions with maturities fewer than 90 days. Securities Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities to be held for indefinite periods of time and not intended to be held to maturity are classified as available for sale and carried at fair value. Unrealized holding gains and losses on securities available for sale are excluded from earnings with unrealized holding gains and losses reported in other comprehensive income, net of tax adjusted for deferred tax valuation allowances, until realized. Securities available for sale are those which management intends to use as part of its asset/liability management strategy and which may be sold in response to changes in interest rates, resultant prepayment risk and other factors related to interest rate risk. Gains and losses on sales are recognized on a trade-date basis using the specific identification method. Premiums on securities are amortized to income using a method that approximates the interest method over the remaining period to the earliest call date or contractual maturity, adjusted for anticipated prepayments. Discounts on securities are accreted to income over the remaining period to the contractual maturity, adjusted for anticipated prepayments. Interest income is recognized on an accrual basis. Management evaluates securities for other-than-temporary impairment (“OTTI”) on, at least, a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For debt securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement 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. Derivatives At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. As of December 31, 2021, and December 31, 2020 the Company’s derivatives are all cash flow hedges. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to a specific firm commitments or forecasted transactions. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. All the contracts to which the Company is a party settle monthly or quarterly. In addition, the Company obtains collateral above certain thresholds of the fair value of its hedges for each counterparty based upon their credit standing and the Company has netting agreements with the dealers with which it does business. Fair Value of Financial Instruments GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Restricted Stock Restricted Stock consists primarily of membership and activity-based shares in the FHLB. Members are required to own a certain amount of stock based on the level of borrowings and other factors. FHLB stock is carried at cost, which approximates fair value, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Restricted stock also consists of shares in a cooperative that provides community banking core technology solutions, COCC. Loans Receivable Loans receivable are stated at unpaid principal balance, net of deferred fees, costs, and discounts, and the allowance for loan losses. Interest on loans is recognized based upon the principal amount outstanding. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized in interest income using the level yield method over the contractual life of the individual loans, adjusted for actual prepayments. For all loan classes, the accrual of income on loans, including impaired loans, is generally discontinued when a loan becomes 90 days delinquent or when certain factors indicate reasonable doubt as to the ability of the borrower to meet contractual principal and/or interest obligations. Loans on which the accrual of income has been discontinued are designated as nonaccrual loans. All previously accrued interest is reversed and income is recognized subsequently only in the period received, provided the remaining principal balance is deemed collectible. A nonaccrual loan is not returned to an accrual status until principal and interest payments are brought current and factors indicating doubtful collection no longer exist. Principal and interest payments received on non-accrual loans for which the remaining principal balance is not deemed collectible are applied as a reduction to principal and interest income is not recognized. If the principal balance on the loan is later deemed collectible and the loan is returned to accrual status, any interest payments that were applied to principal while on non-accrual are recorded as an unearned discount on the loan, classified as deferred fees, costs and discounts, and are recognized into interest income using the level-yield method over the remaining contractual life the individual loan, adjusted for actual prepayments. Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable and reasonably estimable incurred credit losses in the loan portfolio as of the balance sheet date. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required for all portfolio segments using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component of the allowance relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impaired loans are measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance (generally $400,000 or less) homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment. Impaired loans also include all nonaccrual non-residential, multifamily and construction and land loans, and troubled debt restructurings. Troubled debt restructured loans are those loans whose terms have been modified such that a concession has been granted because of deterioration in the financial condition of the borrower. Modifications could include extension of the terms of the loan, reduced interest rates, and forgiveness of accrued interest and/or principal. Once an obligation has been classified a troubled debt restructuring, it continues to be considered a troubled debt restructuring and is individually evaluated for impairment until paid in full. For a cash flow dependent loan, the Company records an impairment charge equal to the difference between the present value of the estimated future cash flows under the restructured terms discounted at the loans original effective interest rate, and the original loan’s carrying amount. For a collateral dependent loan, the Company records an impairment when the current estimated fair value, net of estimated costs to sell when necessary, of the property that collateralizes the impaired loan is less than the recorded investment in the loan. The general component of the allowance covers non impaired loans and is based on historical loss experience adjusted for current qualitative factors. The historical loss experience is a quantitative factor determined by portfolio segment and is based on the actual loss history experienced by the Company. The qualitative factors include consideration of the following: • Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses • Changes in international, national, regional, and local economic and business conditions and developments that affect the collectibility of the portfolio, including the condition of various market segments • Changes in the nature and volume of the portfolio and in the terms of loans • Changes in the experience, ability, and depth of lending management and other relevant staff • Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans. • Changes in the quality of the institution's loan review system • Changes in the value of underlying collateral for collateral-dependent loans • The existence and effect of any concentrations of credit, and changes in the level of such concentrations • The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution's existing portfolio The loan portfolio is categorized according to collateral type, loan purpose, lien position, or borrower type (i.e., commercial, consumer). The categories used include residential one-to-four family, multifamily, non-residential, construction and land, junior liens, commercial and industrial (consisting primarily of Paycheck Protection Program, or “PPP”, loans), and consumer and other. Real Estate Owned (REO) REO consists of properties acquired in foreclosure actions or in settlement of loans and real estate held for investment purposes. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Real estate acquired in foreclosure, or in lieu thereof, is initially recorded at fair value, as generally determined by independent appraisals, less estimated costs to sell. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. When a property is acquired and there is a collateral deficiency, the excess of the loan balance over fair value is charged off through the allowance for loan losses. In instances where the fair value exceeds the loan balance, a recovery to the allowance for loan losses is recorded up to an amount equal to any previous charge-offs taken on the loan, with any excess remaining recorded as a gain on REO through the statement of operations. Subsequent costs directly related to the completion of construction or improvement of the real estate are capitalized to the extent realizable. Carrying costs, such as maintenance and taxes, are charged to operations as incurred. In addition, rental income collected on REO is recognized as income when received. The Company evaluates its real estate held for investment based upon projected future cash flows of the underlying properties. Based upon the projected future cash flows, an impairment loss is recognized if the carrying amount of the real estate is not recoverable and exceeds fair value. Premises and Equipment Premises and equipment, including leasehold improvements, are generally stated at cost less accumulated depreciation, amortization and fair value adjustments. Depreciation and amortization is computed primarily using the straight-line method over the estimated useful lives of the assets or leases. Repair and maintenance items are expensed and improvements are capitalized. Construction in process represents costs incurred to develop properties for future use. Leases and Lease Obligations The Company enters into leases in the normal course of business primarily for financial centers, administrative and office operations locations, and information technology equipment. The Company’s leases have remaining terms ranging from less than one Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company’s incremental borrowing rate is based on the FHLB advance rate, adjusted for the lease term and other factors. Bank Owned Life Insurance The Company has purchased life insurance policies on certain key individuals. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Goodwill and Other Intangible Assets Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of the businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but are tested for impairment at least annually or more frequently if events and circumstances exists that indicate that an impairment test should be performed. For the year ended December 31, 2020, goodwill of $15.5 million was impaired based on a multi-factor quantitative assessment which resulted in the carrying amount of goodwill exceeding its fair value. After the 2020 impairment, there is no remaining goodwill. Intangible assets as of December 31, 2021 represent capitalized costs related to internal-use software. Eligible costs are capitalized according to ASC 350-40 and are amortized over the estimated useful life. Intangible assets are considered for potential impairment quarterly, or more frequently if a triggering event occurs under ASC 360-10-35. Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company evaluates the realizability of deferred tax assets at least annually in accordance with ASC 740-10-30-5(e), and may determine that it is more-likely-than-not that a portion, or all, of the assets would require a valuation allowance. During the fourth quarter of 2021, the Company recorded a valuation allowance on all outstanding deferred tax assets in the amount of $16.8 million. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced by a valuation allowance for the amount of the deferred tax asset that is more likely than not to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in other operating expenses. Retirement Benefits Effective January 1, 2020 the Defined Benefit Plan adopted by the Company was amended to freeze the plan, eliminating all future benefit accruals. In August, 2021, the Company announced its intent to withdraw from the DB Plan, effective September 30, 2021. The withdrawal was completed on December 1, 2021. The Company recorded a termination expense of $11.2 million. The Company provides certain healthcare benefits, subject to certain limitations, to eligible retirees, based upon years of service and a retirement date prior to January 1, 2019. The Company also provides supplemental retirement benefits to certain directors. The Company measures the cost of these benefits based upon various estimates and assumptions. Costs are recognized as directors render service. Employee Stock Ownership Plan The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of shareholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce the ESOP’s debt and accrued interest. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on both securities available for sale and derivatives, net of the related tax effect. Also included are changes in the unfunded status of the Company’s defined benefit plans, net of the related tax effect, which are recognized as separate components of shareholders’ equity. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the consolidated financial statements. Earnings per share Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. ESOP shares committed to be released are considered to be outstanding for purposes of the earnings per share computation. ESOP shares that have not been legally released, but that relate to employee services rendered during an accounting period (interim or annual) ending before the related debt service payment is made, are considered committed to be released. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options awards and are determined using the treasury stock method . Segment Reporting The Company operates as a single operating segment for financial reporting purposes. Adoption of New Accounting Standards No new accounting standards were adopted during the year ended December 31, 2021. Accounting Standards Not Yet Adopted As an “emerging growth company” as defined in Title 1 of the Jumpstart Our Business Startups (JOBS) Act prior to December 31, 2019, the Company elected to use the extended transition period to delay the adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements were made applicable to private companies. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES Debt Securities The amortized cost of securities available for sale and their estimated fair values at December 31, 2021 and 2020 are as follows: Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated (In thousands) December 31, 2021 Available for sale U.S. Treasury Notes $ 36,933 $ 4 $ (105) $ 36,832 Corporate Bonds 86,118 1,791 (290) 87,619 U.S. Government agency obligations 23,462 46 (179) 23,329 Obligations issued by U.S. states and their political subdivisions 19,172 1,152 — 20,324 Mortgage-backed securities: Residential one-to-four family 116,166 140 (1,905) 114,401 Multifamily 35,412 598 (94) 35,916 Asset-backed securities 6,538 3 (70) 6,471 Total available-for-sale $ 323,801 $ 3,734 $ (2,643) $ 324,892 December 31, 2020 Available for sale U.S. Treasury Notes $ 9,989 $ 11 $ — $ 10,000 Corporate Bonds 57,478 1,863 — 59,341 U.S. Government agency obligations 19,787 89 (201) 19,675 Obligations issued by U.S. states and their political subdivisions 23,280 1,515 — 24,795 Mortgage-backed securities: Residential one-to-four family 71,773 951 (8) 72,716 Multifamily 56,563 1,499 (2) 58,060 Total available-for-sale $ 238,870 $ 5,928 $ (211) $ 244,587 The amortized cost of securities held-to-maturity and their estimated fair values at December 31, 2021 and 2020, are as follows: Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated (In thousands) December 31, 2021 Held-to-maturity Asset-backed securities $ 15,281 $ — $ (373) $ 14,908 Corporate bonds 8,000 — (59) 7,941 Total held-to-maturity $ 23,281 $ — $ (432) $ 22,849 December 31, 2020 Held-to-maturity Collateralized loan obligation $ 7,005 $ — $ (26) $ 6,979 Total Held-to-maturity $ 7,005 $ — $ (26) $ 6,979 During the year ended December 31, 2021, proceeds from calls of securities available for sale totaled $14.2 million, resulting in no gross realized gains and gross realized losses of $1 thousand. There were no securities sold during the year ended December 31, 2021. During the year ended December 31, 2020, proceeds from sales and calls of securities available for sale totaled $13.2 million, resulting in gross realized gains of $70 thousand and gross realized losses of $1 thousand. There were no OTTI charges for the year ended December 31, 2021 and 2020. The amortized cost and fair value of debt securities are shown below by contractual maturity. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. Securities not due at a single maturity are shown separately: December 31, 2021 Amortized Cost Estimated Fair Value (In thousands) Available-for-sale Due in one year or less $ 6,421 $ 6,479 Due from one year to five years 87,166 87,673 Due from five to ten years 55,412 56,684 Due after ten years 16,686 17,268 Mortgage-backed and asset-backed securities 158,116 156,788 Total $ 323,801 $ 324,892 Held-to-maturity Due from one year to five years 6,071 5,947 Due from five to ten years 16,210 15,902 Due after ten years 1,000 1,000 Total $ 23,281 $ 22,849 The following tables summarize available-for-sale securities with unrealized losses at December 31, 2021 and 2020, aggregated by major security type and length of time in a continuous loss position. Less than 12 Months 12 Months or More Total Unrealized Losses Estimated Unrealized Losses Estimated Unrealized Losses Estimated (In thousands) December 31, 2021 Available for sale U.S. Treasury Note $ (105) $ 16,814 $ — $ — $ (105) $ 16,814 Corporate Bonds (290) 17,183 — — (290) 17,183 U.S. Government (49) 9,951 (130) 7,980 (179) 17,931 Mortgage-backed Residential one-to-four (1,761) 104,805 (144) 3,009 (1,905) 107,814 Multifamily — — (94) 910 (94) 910 Asset-backed securities (70) 4,458 — — (70) 4,458 Total available-for-sale $ (2,275) $ 153,211 $ (368) $ 11,899 $ (2,643) $ 165,110 December 31, 2020 Available for sale U.S. Government $ (54) $ 3,559 $ (147) $ 10,014 $ (201) $ 13,573 Mortgage-backed Residential one-to-four (7) 3,228 (1) 115 (8) 3,343 Multifamily (2) 738 — 313 (2) 1,051 Total available-for-sale $ (63) $ 7,525 $ (148) $ 10,442 $ (211) $ 17,967 At December 31, 2021, four U.S. Government agency obligations, two U.S Treasury note, and twenty-nine mortgage-backed securities held by the Company were in an unrealized loss position in the available-for-sale portfolio. These securities were all issued by U.S. Government-sponsored entities and agencies, which the government has affirmed its commitment to support. There were also seven investment grade corporate bonds and two asset-backed securities in an unrealized loss position. The Company does not consider these securities to be other-than-temporarily impaired due to the decline in fair value being attributable to changes in interest rates and liquidity, not credit quality. The Company also does not intend to sell these securities, nor does it foresee being required to sell them before the anticipated recovery (maturity). The Company did not have any held to maturity securities in an unrecognized loss position for more than twelve months at December 31, 2021 and 2020. At December 31, 2021, held to maturity securities in an aggregate unrecognized loss position for less than twelve months included two asset-backed securities with total fair value of $14.9 million in an aggregate unrecognized loss position of $373 thousand and two investment grade corporate bonds with total fair value of $6.9 million in an aggregate unrecognized loss position of $59 thousand. At December 31, 2020, held to maturity securities in an aggregate unrecognized loss position for less than twelve months included one collateralized loan obligation security with a fair value of $3.0 million, in an unrecognized loss position of $26 thousand. Securities pledged at December 31, 2021 and December 31, 2020, had a carrying amount of $9.1 million and $12.7 million, respectively, and were pledged to secure public deposits, FHLB advances, and derivatives. |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
LOANS RECEIVABLE, NET | LOANS RECEIVABLE, NET A summary of loans receivable, net is as follows: December 31, 2021 December 31, 2020 (In thousands) Residential one-to-four family $ 560,976 $ 611,603 Multifamily 515,240 427,436 Non-residential 141,561 128,141 Construction and land 23,419 33,691 Junior liens 18,464 23,814 Commercial and industrial (including PPP) 21,563 54,053 Consumer and other 87 99 Total loans 1,281,310 1,278,837 Deferred fees, costs and premiums and discounts, net 6,299 5,236 Allowance for loan losses (14,425) (16,959) (8,126) (11,723) Loans receivable, net $ 1,273,184 $ 1,267,114 The commercial and industrial portfolio is comprised of $16.8 million of PPP loans as well as $4.8 million of general commercial and industrial loans, including Small Business Administration (“SBA”), as of December 31, 2021. At December 31, 2020, the commercial and industrial portfolio was comprised of PPP loans totaling $53.9 million and $131 thousand of general commercial and industrial loans . The portfolio classes in the above table have unique risk characteristics with respect to credit quality: • Payment on multifamily and non-residential mortgages is driven principally by operating results of the managed properties or underlying business and secondarily by the sale or refinance of such properties. Both primary and secondary sources of repayment, and value of the properties in liquidation, may be affected to a greater extent by adverse conditions in the real estate market or the economy in general. • Properties underlying construction and land loans often do not generate sufficient cash flows to service debt and thus repayment is subject to ability of the borrower and, if applicable, guarantors, to complete development or construction of the property and carry the project, often for extended periods of time. As a result, the performance of these loans is contingent upon future events whose probability at the time of origination is uncertain. • Commercial and Industrial Loans consist of PPP loans, and other loans that are originated or purchased. This program originated from the Coronavirus Aid Relief and Economic Security (“CARES”) Act. The SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. • The ability of borrowers to service debt in the residential one-to-four family, junior liens and consumer loan portfolios is generally subject to personal income which may be impacted by general economic conditions, such as increased unemployment levels. These loans are predominately collateralized by first and second liens on single family properties. If a borrower cannot maintain the loan, the Company’s ability to recover against the collateral in sufficient amount and in a timely manner may be significantly influenced by market, legal and regulatory conditions. The following tables present the activity in the Company’s allowance for loan losses by class of loans for the years ended December 31, 2021, and 2020: Residential Multifamily Non-Residential Construction Junior Liens Commercial and Industrial (including PPP) Consumer Unallocated Total (In thousands) Year Ended December 31, 2021 Allowance for loan losses Beginning balance $ 3,579 $ 5,460 $ 3,244 $ 3,655 $ 916 $ 2 $ 48 $ 55 $ 16,959 Charge-offs — — — — — — (16) — (16) Recoveries — — — — — — — — — (Recovery of) provision for loan losses (757) (197) (398) (977) (280) 49 6 36 (2,518) Total ending allowance balance $ 2,822 $ 5,263 $ 2,846 $ 2,678 $ 636 $ 51 $ 38 $ 91 $ 14,425 Year Ended December 31, 2020 Allowance for loan losses Beginning balance $ 3,446 $ 4,256 $ 2,548 $ 3,028 $ 1,002 $ — $ 56 $ 164 $ 14,500 Charge-offs (49) — — — — — (10) — (59) Recoveries — — — — — — — — — (Recovery of) provision for loan losses 182 1,204 696 627 (86) 2 2 (109) 2,518 Total ending allowance balance $ 3,579 $ 5,460 $ 3,244 $ 3,655 $ 916 $ 2 $ 48 $ 55 $ 16,959 The following table represents the allocation of allowance for loan losses and the related recorded investment (including deferred fees and costs) in loans by loan portfolio segment disaggregated based on the impairment methodology at December 31, 2021 and December 31, 2020 : Residential Multifamily Non-Residential Construction Junior Liens Commercial and Industrial (including PPP) Consumer Unallocated Total (In thousands) December 31, 2021 Allowance for loan losses: Individually evaluated $ 31 $ — $ — $ — $ — $ — $ 37 $ — $ 68 Collectively evaluated 2,791 5,263 2,846 2,678 636 51 1 91 14,357 Total $ 2,822 $ 5,263 $ 2,846 $ 2,678 $ 636 $ 51 $ 38 $ 91 $ 14,425 Loans receivable: Individually evaluated $ 10,169 $ 684 $ 4,577 $ — $ 55 $ — $ 37 $ — $ 15,522 Collectively evaluated 556,314 515,884 136,957 23,420 18,495 20,966 51 1,272,087 Total $ 566,483 $ 516,568 $ 141,534 $ 23,420 $ 18,550 $ 20,966 $ 88 $ — $ 1,287,609 December 31, 2020 Allowance for loan losses: Individually evaluated $ 49 $ 26 $ — $ — $ — $ — $ 46 $ — $ 121 Collectively evaluated 3,530 5,434 3,244 3,655 916 2 2 55 16,838 Total $ 3,579 $ 5,460 $ 3,244 $ 3,655 $ 916 $ 2 $ 48 $ 55 $ 16,959 Loans receivable: Individually evaluated $ 11,829 $ 1,721 $ 5,084 $ — $ 58 $ — $ 46 $ — $ 18,738 Collectively evaluated 604,419 427,374 123,133 33,630 23,860 52,867 52 — 1,265,335 Total $ 616,248 $ 429,095 $ 128,217 $ 33,630 $ 23,918 $ 52,867 $ 98 $ — $ 1,284,073 The following table presents information related to impaired loans by class of loans as of December 31, 2021 and December 31, 2020. Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Cash Basis Interest Recognized (In thousands) December 31, 2021 With no related allowance Residential one-to-four $ 8,744 $ 9,108 $ — $ 9,534 $ 75 $ 75 Multifamily 684 684 — 1,170 26 24 Non-residential 4,725 4,577 — 4,869 210 196 Construction and land — — — — — — Junior liens 55 55 — 57 3 3 Commercial and — — — — — — 14,208 14,424 — 15,630 314 298 With an allowance recorded: Residential one-to-four 1,062 1,061 31 1,243 50 46 Multifamily — — — — — — Non-residential — — — — — — Construction and land — — — — — — Commercial and — — — — — — Consumer and other 37 37 37 41 2 2 1,099 1,098 68 1,284 52 48 Total $ 15,307 $ 15,522 $ 68 $ 16,914 $ 366 $ 346 December 31, 2020 With no related allowance Residential one-to-four $ 6,399 $ 6,508 $ — $ 473 $ 97 $ 96 Multifamily 1,216 1,226 — 405 45 41 Non-residential 6,006 5,812 — 2,410 207 201 Construction and land — — — — — — Junior liens 60 59 — 27 1 1 Commercial and — — — — — — 13,681 13,605 — 3,315 350 339 With an allowance recorded: Residential one-to-four 1,519 1,521 108 679 53 47 Multifamily 353 352 28 157 11 10 Non-residential — — — — — — Construction and land — — — — — — Commercial and — — — — — — Consumer and other 49 48 48 23 1 1 1,921 1,921 184 859 65 58 Total $ 15,602 $ 15,526 $ 184 $ 4,174 $ 415 $ 397 The recorded investment in loans includes deferred fees, costs and discounts. For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs. The total recorded investment of loans whose terms have been modified in troubled debt restructurings was $5.4 million and $6.3 million as of December 31, 2021 and December 31, 2020, respectively. The Company has allocated $68 thousand and $95 thousand, respectively, of specific reserves to troubled debt restructured loans as of December 31, 2021 and December 31, 2020. The modification of the terms of troubled debt restructured includes one or a combination of the following: a reduction of the stated interest rate of the loan or an extension of the maturity date. The Company is not committed to lend any additional amounts to customers with outstanding loans that are classified as troubled debt restructurings as of December 31, 2021. A troubled debt restructuring (“TDR”) loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no troubled debt restructurings for which there was a payment default within twelve months following the modification during the periods ended December 31, 2021 and December 31, 2020. The Company did not record any troubled debt restructurings during the years December 31, 2021 and 2020. The following table presents the recorded investment in non-accrual loans and loans past due 90 days or more still on accrual as of December 31, 2021 and December 31, 2020 : Nonaccrual Loans Past Due 12/31/2021 12/31/2020 12/31/2021 12/31/2020 (In thousands) Residential one-to-four family $ 10,805 $ 11,813 $ — $ — Multifamily 139 156 — — Non-residential 857 805 — — Construction and land — — — — Junior liens 182 82 — — Commercial and industrial (including PPP) — — 116 (1) — Total $ 11,983 $ 12,856 $ 116 $ — (1) PPP loans 90 days past due and accruing totaled $116 thousand. These PPP loans were not reported in non-performing loans as they carry the federal guarantee of the SBA. The following table presents the recorded investment in past due and current loans by loan portfolio class as of December 31, 2021 and December 31, 2020: 60-89 90 Days Total Current Total (In thousands) December 31, 2021 Residential one-to-four family $ 457 $ 8,936 $ 9,393 $ 557,090 $ 566,483 Multifamily — — — 516,568 516,568 Non-residential — 381 381 141,153 141,534 Construction and land — — — 23,420 23,420 Junior liens 53 182 235 18,315 18,550 Commercial and Industrial (including PPP) 57 116 173 20,793 20,966 Consumer and other — — — 88 88 Total $ 567 $ 9,615 $ 10,182 $ 1,277,427 $ 1,287,609 December 31, 2020 Residential one-to-four family $ 3,151 $ 10,075 $ 13,226 $ 603,022 $ 616,248 Multifamily — 156 156 428,939 429,095 Non-residential — 805 805 127,412 128,217 Construction and land 3,000 — 3,000 30,630 33,630 Junior liens — — — 23,918 23,918 Commercial and Industrial (including PPP) — — — 52,867 52,867 Consumer and other — — — 98 98 Total $ 6,151 $ 11,036 $ 17,187 $ 1,266,886 $ 1,284,073 The Company categorizes loans into risk categories based on relevant information about the quality and realizable value of collateral, if any, and the ability of borrowers to service their debts such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed whenever a credit is extended, renewed, or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans. The Company used the following definitions for risk ratings for loans classified other than Pass: Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Company’s credit position at some future date. Substandard – Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor, or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment and liquidation of the debt. They are characterized by distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. Loss – Assets classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. The following table presents the risk category of loans by class of loans based on the most recent analysis performed as of December 31, 2021 and December 31, 2020: Pass Special Substandard Doubtful / Total (In thousands) December 31, 2021 Residential one-to-four family $ 555,184 $ — $ 11,299 $ — $ 566,483 Multifamily 510,815 5,069 684 — 516,568 Non-residential 140,377 144 1,013 — 141,534 Construction and land 23,420 — — — 23,420 Junior liens 18,368 — 182 — 18,550 Commercial and Industrial (including PPP) 20,966 — — 20,966 Consumer and other 88 — — — 88 Total $ 1,269,218 $ 5,213 $ 13,178 $ — $ 1,287,609 December 31, 2020 Residential one-to-four family $ 604,167 $ — $ 12,081 $ — $ 616,248 Multifamily 411,369 16,648 1,078 — 429,095 Non-residential 127,089 154 974 — 128,217 Construction and land 33,630 — — — 33,630 Junior liens 23,836 — 82 — 23,918 Commercial and Industrial (including PPP) 52,867 — — — 52,867 Consumer and other 98 — — — 98 Total $ 1,253,056 $ 16,802 $ 14,215 $ — $ 1,284,073 |
REAL ESTATE OWNED (REO), NET
REAL ESTATE OWNED (REO), NET | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate Owned, Net [Abstract] | |
REAL ESTATE OWNED (REO), NET | REAL ESTATE OWNED (REO), NET REO activity is as follows for the years ended December 31, 2021 and 2020: 2021 2020 Beginning balance $ 624 $ 2,014 Additions — — Sales of REO (618) — Write down of REO (6) (1,390) Ending balance $ — $ 624 Income (loss) related to REO for the years ended December 31, 2021 and 2020, are as follows: 2021 2020 Net gain on sales $ — $ — Write down of REO (6) (1,390) Rental income, net of operating expenses 97 175 REO income (loss) $ 91 $ (1,215) |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment, net, at December 31, 2021 and 2020, are summarized as follows: 2021 2020 Land $ 3,793 $ 4,320 Buildings and improvements 14,583 11,302 Leasehold improvements 10,174 3,204 Furnishings and equipment 9,325 8,640 Construction-in-Progress 1,618 5,103 39,493 32,569 Accumulated depreciation and amortization (11,367) (13,000) $ 28,126 $ 19,569 Construction-in-progress consists of deposits made related to the construction of branch improvements and the purchase of furnishings and equipment. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases certain office space and equipment under operating leases. These leases have original terms ranging from one year to 40 years. Operating lease liabilities and ROU assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. As of December 31, 2021, the Company had the following related to operating leases: As of December 31, 2021 (In thousands) Right-of-use assets $ 25,457 Lease liabilities 26,696 The following table is a summary of the Company’s components of net lease cost for the year ended December 31, 2021 and 2020: Year Ended December 31, 2021 2020 (In thousands) Operating lease cost $ 3,034 $ 1,486 Finance lease cost 19 15 Variable lease cost 219 79 Total lease cost $ 3,272 $ 1,580 As of December 31, 2021, the weighted average remaining lease term for operating leases was 12.2 years and the weighted average discount rate used in the measurement of lease liabilities was 1.97%. As of December 31, 2020, the weighted average remaining lease term for operating leases was 12.9 years and the weighted average discount rate used in the measurement of lease liabilities was 1.95%. Cash payments for lease liabilities totaled $2.72 million and $1.57 million for the years ended December 31, 2021 and 2020. Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2021 are as follows: (In thousands) 2022 $ 2,995 2023 2,786 2024 2,699 2025 2,309 2026 2,300 Thereafter 17,265 Total undiscounted lease payments 30,354 Less: imputed interest (3,658) Total $ 26,696 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS Deposits at December 31, 2021 and December 31, 2020, are summarized as follows: December 31, 2021 December 31, 2020 (In thousands) Non -interest bearing deposits $ 44,894 $ 44,195 NOW and demand accounts 363,419 317,974 Savings 364,932 276,584 Time deposits 473,795 717,431 Total $ 1,247,040 $ 1,356,184 Included within the NOW and demand account caption, as well as the savings caption above are money market accounts with varying transactional limits. Time deposits mature as follows for the year ending December 31: (In thousands) 2022 $ 304,656 2023 121,643 2024 34,911 2025 6,499 2026 6,086 $ 473,795 Time deposits that meet or exceed the FDIC insurance limit of $250,000 at December 31,2021 and 2020, were $47.3 million and $96.1 million, respectively. As of December 31, 2021 and 2020, the Company had $2.4 million and $3.6 million respectively, in related party (principal officers, directors, and their affiliates) deposits. |
ADVANCES FROM THE FEDERAL HOME
ADVANCES FROM THE FEDERAL HOME LOAN BANK OF NEW YORK (FHLB) | 12 Months Ended |
Dec. 31, 2021 | |
Federal Home Loan Banks [Abstract] | |
ADVANCES FROM THE FEDERAL HOME LOAN BANK OF NEW YORK (FHLB) | ADVANCES FROM THE FEDERAL HOME LOAN BANK OF NEW YORK (FHLB) Advances from the FHLB are fixed-rate, term borrowings and amounted to $185.5 million and $329.4 million at December 31, 2021 and 2020, respectively. Each advance is payable at its maturity date with a prepayment penalty if repayment is made prior to the maturity date. The Bank extinguished $111.4 million in FHLB borrowings during the year ended December 31, 2021, incurring a prepayment penalty of $2.2 million. During the year ended December 31, 2020, the Bank extinguished $14.0 million in FHLB borrowings incurring a prepayment penalty of $843 thousand. Advances are secured by investment securities and loans pledged at the FHLB totaling $319.9 million and $423.5 million as of December 31, 2021 and 2020, respectively. Advances mature as follows for the year ended December 31, 2021. Maturity Rate Range Weighted Average Rate Amount 2022 0.35% — 0.38% 0.36% $ 109,000 2023 0.70% — 1.94% 1.71% 18,000 2024 1.60% — 1.94% 1.80% 38,000 2025 1.50% — 1.60% 1.58% 20,500 0.92% $ 185,500 Advances from the FHLB amounted to $329.4 million at December 31, 2020, with a weighted average fixed rate of 1.49%. See Note 12 for further disclosure around Derivatives activities related to FHLB advances. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS The Company had been a participant in the Pentegra Defined Benefit Plan for Financial Institutions (the “Pentegra DB Plan”), a tax-qualified defined benefit pension plan. Effective January 1, 2020, this plan was frozen to all existing plan participants, eliminating all future benefit accruals. The Company elected to withdraw from the Pentegra DB Plan in August 2021, and recognized an $11.2 million expense associated with the exit from the plan. The withdrawal was completed on December 1, 2021. The Company has a savings plan under Section 401(k) of the Internal Revenue Code, which covers substantially all employees upon employment who have attained the age of 18. Under the plan, employee contributions are partially matched by the Company at its sole discretion. Company contributions for the years ended December 31, 2021 and 2020 were $701 thousand and $670 thousand, respectively. The Company provides certain health insurance benefits for retired employees and directors meeting plan eligibility requirements. Effective January 1, 2019 the employee postretirement health benefit plan was curtailed, leaving only 13 retired participants and beneficiaries remaining in the plan. Active participants who met certain requirements received payments in lieu of future benefits. The plans are unfunded as of December 31, 2021 and 2020, and the obligation is included in other liabilities as an accrued postretirement benefit cost. The Company maintains an Executive Supplemental Income Retirement Plan (“SERP”) for certain employees and a Director Retirement Plan (“DRP”). As the SERP and DRP plans are unfunded, there are no plan assets associated with these plans. The following table sets forth the change in benefit obligation, change in plan assets and a reconciliation of the unfunded status and the assumptions used in determining the net periodic cost included in the accompanying consolidated financial statements for the Company’s post retirement plans. The measurement date for the post retirement plans were December 31 for each year presented. SERP and DRP Post Retirement 2021 2020 2021 2020 (In thousands) Change in benefit obligation: Projected benefit obligation at beginning of year $ 4,102 $ 3,760 $ 1,881 $ 1,946 Service cost 201 146 1 1 Interest cost 79 98 38 54 Actuarial (gain) loss (100) 448 (215) (9) Benefits paid (341) (350) (92) (111) Projected benefit obligation at end of year 3,941 4,102 1,613 1,881 Reconciliation of plan assets: Fair value of plan assets at beginning of year — — — — Actual return on plan assets — — — — Employer contributions 341 350 92 111 Benefits and Settlements paid (341) (350) (92) (111) Fair value of plan assets at end of year — — — — Unfunded status $ 3,941 $ 4,102 $ 1,613 $ 1,881 Amounts recognized in accumulated other comprehensive income at December 31, ignoring tax effects, consist of: SERP and DRP Post Retirement 2021 2020 2021 2020 (In thousands) Unrecognized net actuarial loss (gain) $ 1,073 $ 1,317 $ (189) $ 23 Unrecognized prior service cost 333 402 — — Total accumulated other comprehensive loss (gain) $ 1,406 $ 1,719 $ (189) $ 23 The weighted average assumptions used in the determination of benefit obligations as of December 31 were as follows: SERP and DRP Post Retirement 2021 2020 2021 2020 Discount rate 2.31 % 1.85 % 2.53 % 2.10 % Rate of compensation increase* 6.25 % 6.25 % N/A N/A * Rate of compensation increase applicable to DRP only. The weighted-average assumptions used in the determination of net periodic benefit cost were as follows: SERP and DRP Post Retirement 2021 2020 2021 2020 Discount rate 1.82 % 2.21 % 2.18 % 2.53 % Expected rate of return on plan assets N/A N/A N/A N/A Rate of compensation increase* 6.25 % 6.25 % N/A N/A * Rate of compensation increase applicable to DRP only. The components of net periodic benefit cost and other amounts recognized in other comprehensive income were as follows for the years ended December 31, 2021 and 2020: SERP and DRP Post Retirement 2021 2020 2021 2020 (In thousands) Service cost $ 201 $ 146 $ 1 $ 1 Interest cost 79 98 38 54 Amortization: Past service liability — — — — Net loss (gain) 213 190 (3) (1) Net periodic benefit cost $ 493 $ 434 $ 36 $ 54 The components of net periodic benefit cost other than the service cost component are included in “other non-interest expense” in the Statement of Operations. The estimated net loss and prior service cost for the post-retirement plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2022 are $124 thousand and $69 thousand, respectively. The benefits expected to be paid in each of the next five years and the aggregate for the five years thereafter are as follows: SERP and DRP Post- Retirement (In thousands) 2022 $ 331 $ 98 2023 311 88 2024 286 89 2025 289 90 2026 268 90 Years 2027 - 2031 1,161 445 |
EMPLOYEE STOCK OWNERSHIP PLAN
EMPLOYEE STOCK OWNERSHIP PLAN | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EMPLOYEE STOCK OWNERSHIP PLAN | EMPLOYEE STOCK OWNERSHIP PLAN The Company maintains an ESOP, a tax-qualified plan for the benefit of all Company employees designed to invest primarily in the Company’s common stock. The ESOP provides employees with the opportunity to receive a funded retirement benefit from the Bank, based primarily on the value of the Company’s common stock. The ESOP borrowed funds from the Company to purchase 2,281,800 shares of stock at $10 per share. The loan is secured by the shares purchased, which are held in a suspense account for allocation among participants. Shares are released for allocation to participants as loan payments are made. Loan payments are principally funded by discretionary cash contributions by the Bank, as well as dividends paid to the ESOP on unallocated shares. When loan payments are made, ESOP shares are allocated to participants at the end of the plan year (December 31) based on relative compensation, subject to federal tax law limits. Participants receive the shares at the end of employment. Dividends on allocated shares increase participants accounts. At December 31, 2021, the remaining principal balance on the ESOP loan is $21.8 million. Contributions to the ESOP during the year ended December 31, 2021 totaled $981 thousand. ESOP compensation expense, representing the fair value of shares allocated during the year, was $1.3 million for the year ended December 31, 2021, and is recognized over the service period. There was no ESOP compensation expense for the year ended December 31, 2020. Shares held by the ESOP were as follows: December 31, 2021 (Dollars in thousands) Shares allocated to participants 91,272 Unallocated shares 2,190,528 Total ESOP shares 2,281,800 Fair value of unallocated shares at December 31, 2021 $ 32,047 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) for the years ended December 31, 2021 and 2020, consists of the following: Current Deferred Total (In thousands) December 31, 2021 Federal $ 140 $ 5,810 $ 5,950 State — 3,668 3,668 $ 140 $ 9,478 $ 9,618 December 31, 2020 Federal $ (1,582) $ (3,570) $ (5,152) State 161 (2,875) (2,714) $ (1,421) $ (6,445) $ (7,866) A reconciliation between the actual income tax expense and the expected federal income tax expense (computed by multiplying income before income tax expense times the applicable statutory federal income tax rate) for the years ended December 31, 2021 and 2020, is as follows: 2021 2020 (In thousands) Income (loss) before income tax (benefit) expense $ (26,724) $ (39,372) Applicable statutory federal income tax rate 21.00 % 21.00 % Computed “expected” federal income tax (benefit) expense $ (5,612) $ (8,268) Increase (decrease) in federal income tax expense resulting from: State income taxes, net of federal benefit (1,614) (2,143) Valuation Allowance 16,719 — Tax-exempt income (108) (132) Impairment of Goodwill — 3,247 CARES Act – Carryback expense (benefit) 247 (568) Other (14) (2) Total $ 9,618 $ (7,866) The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020, are as follows: 2021 2020 Deferred tax assets: (In Thousands) Allowance for loan losses and REO $ 4,617 $ 5,136 Allowance for losses premises and equipment — 3,915 Net unrealized losses on derivatives 69 1,559 Accrued postretirement benefits 1,217 1,077 Accrued interest receivable 179 108 Accrued bonus 506 112 Finance Lease Liability 7,504 7,178 Charitable contribution carryover 2,709 — Funded status of benefit plans 342 490 Federal net operating loss carryforward 6,648 — State net operating loss carryforward 2,392 553 Other 37 49 Total gross deferred tax assets 26,220 20,177 Valuation allowance (16,868) (72) Gross deferred tax assets after valuation allowance 9,352 20,105 Deferred tax liabilities: Net unrealized gains on securities available for sale 327 1,509 Deferred loan fees, net 1,198 1,472 Premises and equipment 489 — Finance Lease ROU Asset 7,156 6,993 Other 182 114 Total gross deferred tax liabilities 9,352 10,088 Net deferred tax asset $ — $ 10,017 Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2021. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. On the basis of this evaluation, for the year ended December 31, 2021, a valuation allowance of $16.8 million has been recorded. The amount of the deferred tax asset considered realizable could be adjusted if estimates of future taxable income increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for growth. Net deferred tax assets are included in other assets. At December 31, 2021, the Company had federal net operating loss (“NOL”) carryforwards of $31.7 million with no expiration date. Under the provisions of the 2017 Tax Cuts and Jobs Act, use of our federal NOL carryforwards will be limited to 80% of taxable income in future periods. The Company also had New Jersey net operating loss carryforwards of $33.6 million, the majority of which expire in 20 years. We believe it is more likely than not the benefit from both the federal and state NOL carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $9.0 million on the deferred tax assets related to the NOL carryforwards. The Company contributed $9.0 million to the Blue Foundry Charitable Foundation, and the deferred benefit has a 5 year carryforward limitation. Retained earnings at December 31, 2021 and 2020, includes approximately $14.6 million, for which no provision for income tax has been made. This amount represents an allocation of income to bad debt deductions for tax purposes only. Events that would result in taxation of these reserves include the failure to qualify as a bank for tax purposes, distributions in complete or partial liquidation, stock redemptions and excess distributions to stockholders. The Company and its subsidiary are subject to U.S. federal income tax as well as state income taxes, primarily New Jersey. The Company is no longer subject to examination by Federal taxing authorities for tax years before January 1, 2018, and State taxing authorities for tax years before January 1, 2017. Currently, the Company is not under examination by any taxing authority. The Company's New Jersey state tax returns for the tax years ended December 31, 2015 through 2018 were audited during 2021. The completion of this examination did not have a material impact on the Company's effective tax rates and financials. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest rate swaps with notional amounts totaling $109.0 million at December 31, 2021 and December 31, 2020, were designated as cash flow hedges of certain FHLB advances and were determined to be fully effective during all periods presented. The Company expects the hedges to remain fully effective during the remaining terms of the swaps. At December 31, 2021, the gross unrealized gain on interest-rate swaps included in other assets totaled $1.3 million and the gross unrealized loss on interest-rate swaps included in other liabilities totaled $1.5 million. At December 31, 2020, the gross unrealized gain on interest-rate swaps included in other assets totaled $79 thousand and the gross unrealized loss on interest-rate swaps included in other liabilities totaled $5.6 million. Summary information about the interest-rate swaps designated as cash flow hedges as of period-end is as follows: December 31, 2021 December 31, 2020 (Dollars in thousands) Notional amounts $ 109,000 $ 109,000 Weighted average pay rates 1.46 % 1.46 % Weighted average receive rates 0.17 % 0.23 % Weighted average maturity (in years) 5.3 6.2 Unrealized losses $ (246) $ (5,545) Interest expense recorded on swap transactions totaled $1.4 million and $752 thousand during the year ended December 31, 2021 and 2020, respectively, and is reported as a component of interest expense on FHLB advances. At December 31, 2021, the Company expected $1.1 million of the unrealized loss to be reclassified as an increase to interest expense during 2022. Cash Flow Hedge The effect of cash flow hedge accounting on accumulated other comprehensive income for the years ended December 31, 2021 and 2020 are as follows: Amount of Gain (Loss) Recognized in OCI on Derivative (1) Location of Gain (Loss) Reclassified from OCI into Income/(Expense) Amount of Gain (Loss) Reclassified from OCI to Income/(Expense) (In thousands) Year Ended December 31, 2021 Interest rate contracts $ (246) Interest Expense $ (1,427) Year Ended December 31, 2020 Interest rate contracts $ (3,986) Interest Expense $ (752) (1) Net of tax for the year ended December 31, 2020. For the year ended December 31, 2021, there is no tax effect due to the deferred taxes valuation allowance. See Note 11 for information related to the deferred taxes valuation allowance. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income represents the net unrealized holding gains on securities available-for-sale, derivatives and the funded status of the Company’s benefit plans, as of the consolidated balance sheet dates, net of the related tax effect. The following is a summary of the changes in accumulated other comprehensive income by component, net of tax adjusted for deferred tax valuation allowances, for the periods indicated: Gains and Unrealized Gains Defined Total (In thousands) Balance at December 31, 2020 $ (3,986) $ 4,208 $ (1,253) $ (1,031) Other comprehensive income (loss) before reclassification 2,733 (3,118) (115) (500) Amounts reclassified from accumulated other comprehensive income 1,007 1 151 1,159 Net current period other comprehensive (loss) gain 3,740 (3,117) 36 659 Balance at December 31, 2021 $ (246) $ 1,091 $ (1,217) $ (372) Gains and Unrealized Gains Defined Total (In thousands) Balance at December 31, 2019 $ (360) $ 916 $ (1,073) $ (517) Other comprehensive income (loss) before reclassification (4,167) 3,343 (315) (1,139) Amounts reclassified from accumulated other comprehensive income 541 (51) 135 625 Net current period other comprehensive (loss) gain (3,626) 3,292 (180) (514) Balance at December 31, 2020 $ (3,986) $ 4,208 $ (1,253) $ (1,031) The following is significant amounts reclassified out of each component of accumulated other comprehensive income (loss): Details about Accumulated Other Comprehensive Income Components Year Ended December 31, Affected Line Item in the Statement Where Net Income is Presented 2021 2020 (In thousands) Unrealized (loss) gain on securities available for sale: Realized (losses) gains on securities available for sale $ (1) $ 69 (Loss) gain on sales and calls of securities Gains and (losses) on cash flow hedges: Interest rate contracts (1,427) (752) Interest (expense) income Amortization of benefit plan items: Net actuarial loss (210) (189) Compensation and employee benefits Total tax effect 479 247 Income tax expense Total reclassification for the period, net of tax $ (1,159) $ (625) |
FAIR VALUE OF ASSETS AND LIABIL
FAIR VALUE OF ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF ASSETS AND LIABILITIES | FAIR VALUE OF ASSETS AND LIABILITIES Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: 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 company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Securities : For securities available-for-sale and equity securities, fair value was estimated using a market approach. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. Prices for these instruments are obtained through third party data service providers or dealer market participants with which the Company has historically transacted both purchases and sales of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing, a Level 2 input as defined by ASC 820, is a mathematical technique used principally to value certain securities to benchmark or comparable securities. The Company evaluates the quality of Level 2 matrix pricing through comparison to similar assets with greater liquidity and evaluation of projected cash flows. The Company also holds equity securities and debt instruments issued by the U.S. government and U.S. government sponsored agencies that are traded in active markets with readily accessible quoted market prices that are considered Level 1 inputs. Derivatives : The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company’s derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Impaired Loans : The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Assets Held for Sale : Nonrecurring adjustments to certain non-residential properties classified as assets held for sale are measured at fair value, less costs to sell. Fair values are based on contracts / letters of intent. REO : Nonrecurring adjustments to certain non-residential, construction and land, and residential one-to-four family real estate properties classified as real estate owned (“REO”) are measured at fair value, less costs to sell. Fair values are based on recent real estate appraisals. These appraisals may use a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Adjustments that are based on contracts / letters of intent result in a Level 2 classification. The following table summarizes the fair value of assets and liabilities as of December 31, 2021: Fair Value Measurements at December 31, 2021, Using Quoted Prices Significant Other Significant Total (Level 1) (Level 2) (Level 3) (In thousands) Measured on a recurring basis: Financial assets Securities available for sale: U.S. Treasury Notes $ 36,832 $ 36,832 $ — $ — Domestic Corporate Bonds 87,619 — 87,619 — U.S. Government agency obligations 23,329 17,617 5,712 — Obligations issued by U.S. states and their political subdivisions 20,324 — 20,324 — Mortgage-backed securities: Residential one-to-four family 114,401 — 114,401 — Multifamily 35,916 — 35,916 — Asset-backed securities 6,471 — 6,471 — $ 324,892 $ 54,449 $ 270,443 $ — Financial Liabilities Derivatives $ 246 $ — $ 246 $ — There were no assets or liabilities measured at fair value on a non-recurring basis at December 31, 2021. The assets held for sale and REO were sold in December 2021, resulting in a net loss of $104 thousand and $6 thousand for assets held for sale and REO, respectively. The following table summarizes the fair value of assets and liabilities as of December 31, 2020: Fair Value Measurements at December 31, 2020, Using Quoted Prices Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) (In thousands) Measured on a recurring basis: Financial assets Securities available for sale U.S. Treasury Notes $ 10,000 $ 10,000 $ — $ — Domestic Corporate Bonds 59,341 — 59,341 — U.S. Government agency obligations 19,675 12,417 7,258 — Obligations issued by U.S. states and their political subdivisions 24,795 — 24,795 — Mortgage-backed securities: Residential one-to-four family 72,716 — 72,716 — Multifamily 58,060 — 58,060 — Total $ 244,587 $ 22,417 $ 222,170 $ — Financial Liabilities Derivatives $ 5,545 $ — $ 5,545 $ — Measured on a nonrecurring basis: Nonfinancial assets Assets held for sale $ 5,295 $ — $ 5,295 $ — Real estate owned 624 — 624 — In March 2020, certain premises and REO were re-designated to held for sale, which resulted in a write-down from book value to fair value. The impairment recorded on the premises was $12.8 million which resulted in a remaining book value on those assets of $5.3 million that were reclassified from premises to assets held for sale. The impairment recorded on the REO was $1.4 million, which resulted in a remaining book value on those assets of $624 thousand. During the quarter ended December 31, 2021, all assets held for sale and held in REO were sold. The following tables present the book value, fair value, and placement in the fair value hierarchy of financial instruments not recorded at fair values in their entirety on a recurring basis on the Company’s balance sheet at December 31, 2021 and 2020. The fair value measurements presented are consistent with Topic 820, Fair Value Measurement, in which fair value represents exit price . These tables exclude financial instruments for which the carrying amount approximates fair value. Financial instruments for which the carrying amount approximates fair value include cash and cash equivalents, restricted stock, non-maturity deposits, overnight borrowings, and accrued interest, which are excluded from the table below. The carrying amounts and fair value of financial instruments not carried at fair value, at December 31, 2021 and December 31, 2020 are as follows: Fair Value Measurements at December 31, 2021, Using Quoted Prices Significant Significant Book Value (Level 1) (Level 2) (Level 3) (In thousands) Financial assets Securities held-to-maturity $ 23,281 $ — $ 22,849 $ — Loans, net 1,273,184 — — 1,266,799 Financial liabilities Time Deposits 473,795 — 470,732 — Federal Home Loan advances 185,500 — 182,795 — Fair Value Measurements at December 31, 2020, Using Quoted Prices Significant Significant Book Value (Level 1) (Level 2) (Level 3) (In thousands) Financial assets Securities held-to-maturity $ 7,005 $ — $ 6,978 $ — Loans, net 1,267,114 — — 1,290,740 Financial liabilities Time Deposits 717,431 — 725,110 — Federal Home Loan advances 329,400 — 336,377 — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company, in the normal course of conducting its business, extends credit to meet the financing needs of its customers through commitments and lines of credit. The following commitments exist at December 31, 2021 and 2020, which are not reflected in the accompanying consolidated financial statements: As of December 31, 2021 2020 (Dollars in Thousands) Origination of mortgage loans: Fixed rate $ 1,847 $ 5,517 Variable rate 14,456 23,144 Undisbursed home equity credit lines 33,265 33,786 Undisbursed construction credit lines 17,700 16,264 Undisbursed commercial credit lines 1,792 1,594 Performance standby letters of credit 671 671 Overdraft protection credit lines 19,038 10,548 Commitments to purchase investments 1,000 — These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements. The Company uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance-sheet loans. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company has no exposure to credit loss if the customer does not exercise its rights to borrow under the commitment. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. The Company issues financial standby letters of credit that are within the scope of ASC 460, Guarantees . These are irrevocable undertakings of the Company to guarantee payment of a specified financial obligation. Most of the Company’s standby letters of credit arise in connection with lending relationships and generally have terms of one year or less, or are issued in lieu of security deposits. The maximum potential future payments the Company could be required to make equals the contract amount of the standby letters of credit. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS AND OTHER INCOME | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS AND OTHER INCOME | REVENUE FROM CONTRACTS WITH CUSTOMERS AND OTHER INCOME All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income in the Statement of Operations. The following table presents the Company’s sources of revenue from contracts with customers for the year ended ended December 31, 2021 and 2020, respectively. Year Ended December 31, 2021 2020 (In thousands) Non-interest income Service charges on deposits $ 954 $ 722 Interchange income 33 21 REO (loss) gain 6 — Total Revenue from Contracts with Customers $ 993 $ 743 Service Charges on Deposit Accounts : The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in the 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. Interchange Income : The Company earns interchange fees from debit/credit cardholder transactions conducted through a payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Gain/loss on sale of Real Estate Owned (“REO”) : The Company records a gain or loss from the sale of REO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of REO to the buyer, the Company assesses whether the buyer is committed to perform its obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the REO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company may adjust the transaction price and related gain (loss) on sale if a significant financing component is present. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earning per share (“EPS”) represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding for the period, plus the effect of potential dilutive common share equivalents. There were no securities or other contracts that had a dilutive effect during the year ended December 31, 2021, and therefore the weighted-average common shares outstanding used to calculate both basic and diluted EPS are the same. Shares held by the ESOP not allocated to employees in accordance with the terms of the ESOP, referred to as “unallocated ESOP shares”, are not deemed outstanding for earnings per share calculations. Earnings per share for the year ended December 31, 2021 was calculated using 12,171,050 weighted average shares outstanding which represents zero shares outstanding prior to the conversion on July 15, 2021. Earnings per share data is not applicable for the year ended December 31, 2020 as the Company had no shares outstanding. Twelve Months Ended December 31, 2021 (Income In thousands) Net loss applicable to common shares $ (36,342) Average number of common shares outstanding 13,206,308 Less: Average unallocated ESOP shares 1,035,258 Average number of common shares outstanding used to calculate basic earnings per common share 12,171,050 Common stock equivalents — Net loss per share available to common shareholders-Basic and Diluted $ (2.99) |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Capital Requirements Administered By Federal Banking Agencies [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines, and additionally for the Bank, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off balance sheet items calculated under regulatory accounting practices. Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company. The Bank has not paid dividends to the Company in the past. Capital amounts and classifications are also subject to qualitative judgements by regulators. Failure to meet capital requirements can initiate regulatory action. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. As of December 31, 2021, the Bank meets all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2021 and 2020, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The following table presents the regulatory capital, assets and risk based capital (common equity Tier 1, Tier 1 and Total capital) ratios for the Bank at December 31, 2021 and 2020 (in thousands, other than ratios): Bank Actual Minimum Capital Adequacy Minimum Capital Adequacy With Capital Buffer For Classification as Well Capitalized Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Common equity tier 1 $ 293,349 25.74 % $ 51,292 4.50 % $ 79,787 7.00 % $ 74,088 6.50 % Tier 1 capital 293,349 25.74 % 68,389 6.00 % 96,885 8.50 % 91,186 8.00 % Total capital 307,624 26.99 % 91,186 8.00 % 119,681 10.50 % 113,982 10.00 % Tier 1 (leverage) capital 293,349 15.00 % 78,201 4.00 % N/A N/A 97,752 5.00 % December 31, 2020 Common equity tier 1 $ 206,258 19.93 % $ 46,578 4.50 % $ 72,455 7.00 % $ 67,279 6.50 % Tier 1 capital 206,258 19.93 % 62,104 6.00 % 87,981 8.50 % 82,806 8.00 % Total capital 219,262 21.18 % 82,806 8.00 % 108,682 10.50 % 103,507 10.00 % Tier 1 (leverage) capital 206,258 10.72 % 76,934 4.00 % N/A N/A 96,168 5.00 % |
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY The condensed financial statements of Blue Foundry Bancorp (parent company only) are presented below: Condensed Statements of Financial Condition At December 31, 2021 2020 (In thousands) Assets: Cash and cash equivalents $ 114,331 $ 329 Investment in banking subsidiary 293,414 205,227 ESOP loan receivable 21,837 — Other assets 245 164 Total Assets $ 429,827 $ 205,720 Liabilities and Stockholders’ Equity: Total liabilities $ 356 $ 120 Total stockholders’ equity 429,471 205,600 Total Liabilities and Stockholders’ Equity $ 429,827 $ 205,720 Condensed Statements of Operations Year Ended December 31, 2021 2020 (In thousands) Income: Interest on ESOP loan receivable $ 343 $ — Other income 23 16 Total income 366 16 Expenses: Contribution to Blue Foundry Charitable Foundation 9,000 — Goodwill Impairment — 13,100 Other expenses 719 66 Total expenses 9,719 13,166 Loss before income tax (benefit) expense (9,353) (13,150) Income tax (benefit) expense (59) 98 Loss before undistributed earnings of subsidiary (9,294) (13,248) Equity in undistributed earnings of banking subsidiary (27,048) (18,258) Net loss $ (36,342) $ (31,506) Condensed Statements of Cash Flows Twelve Months Ended December 31, 2021 2020 (In thousands) Cash flows from operating activities: Net loss $ (36,342) $ (31,506) Adjustments to reconcile net loss to net cash provided by operating activities: Equity in undistributed earnings of subsidiary 27,048 18,258 Issuance of common shares donated to Blue Foundry Charitable Foundation 7,500 — Goodwill impairment — 13,100 ESOP expense 361 — Increase in other assets (82) (5) Increase in other liabilities 237 55 Net cash used by operating activities (1,278) (98) Cash flows from investing activities: Capital contribution to banking subsidiary (136,481) — Loan to ESOP (22,818) — Repayment of ESOP loan 981 — Net cash used in investing activities (158,318) — Cash flows from financing activities: Proceeds from issuance of common shares 273,598 — Net cash provided by financing activities 273,598 — Net increase (decrease) in cash and cash equivalents 114,002 (98) Cash and cash equivalents at beginning of year 329 427 Cash and cash equivalents at end of year $ 114,331 $ 329 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSAs defined in FASB ASC 855, “Subsequent Events”, subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued or available to be issued. Financial statements are considered issued when they are widely distributed to stockholders and other financial statement users for general use and reliance in a form and format that complies with U.S. GAAP. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of Blue Foundry Bancorp (the “Company”), and its wholly owned subsidiary, Blue Foundry Bank (the “Bank”), and the Bank’s wholly owned subsidiaries, Blue Foundry Service Corp., Rutherford Center Development Corp., Blue Foundry Investment Company (collectively, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Blue Foundry Bancorp owns 100% of the common stock of Blue Foundry Bank. Business The Company provides a wide range of banking services to individual and business customers through branch offices in New Jersey. The Company is subject to competition from other financial institutions and to the regulations of certain federal and state agencies, and undergoes periodic examinations by those regulatory authorities. |
Basis of Financial Statement Presentation | The consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles. The audited consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. |
Use of Estimates | In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statement of financial condition and revenues and expenses for the period. Actual results could differ from those estimates. |
Reclassifications | Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. |
Cash and Cash Equivalents | Cash and cash equivalents include cash and deposits with other financial institutions with maturities fewer than 90 days. |
Securities | Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities to be held for indefinite periods of time and not intended to be held to maturity are classified as available for sale and carried at fair value. Unrealized holding gains and losses on securities available for sale are excluded from earnings with unrealized holding gains and losses reported in other comprehensive income, net of tax adjusted for deferred tax valuation allowances, until realized. Securities available for sale are those which management intends to use as part of its asset/liability management strategy and which may be sold in response to changes in interest rates, resultant prepayment risk and other factors related to interest rate risk. Gains and losses on sales are recognized on a trade-date basis using the specific identification method. Premiums on securities are amortized to income using a method that approximates the interest method over the remaining period to the earliest call date or contractual maturity, adjusted for anticipated prepayments. Discounts on securities are accreted to income over the remaining period to the contractual maturity, adjusted for anticipated prepayments. Interest income is recognized on an accrual basis. |
Derivatives | At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. As of December 31, 2021, and December 31, 2020 the Company’s derivatives are all cash flow hedges. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to a specific firm commitments or forecasted transactions. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. All the contracts to which the Company is a party settle monthly or quarterly. In addition, the Company obtains collateral above certain thresholds of the fair value of its hedges for each counterparty based upon their credit standing and the Company has netting agreements with the dealers with which it does business. |
Fair Value of Financial Instruments | GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. |
Restricted Stock | Restricted Stock consists primarily of membership and activity-based shares in the FHLB. Members are required to own a certain amount of stock based on the level of borrowings and other factors. FHLB stock is carried at cost, which approximates fair value, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Restricted stock also consists of shares in a cooperative that provides community banking core technology solutions, COCC. |
Loans Receivable | Loans receivable are stated at unpaid principal balance, net of deferred fees, costs, and discounts, and the allowance for loan losses. Interest on loans is recognized based upon the principal amount outstanding. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized in interest income using the level yield method over the contractual life of the individual loans, adjusted for actual prepayments. For all loan classes, the accrual of income on loans, including impaired loans, is generally discontinued when a loan becomes 90 days delinquent or when certain factors indicate reasonable doubt as to the ability of the borrower to meet contractual principal and/or interest obligations. Loans on which the accrual of income has been discontinued are designated as nonaccrual loans. All previously accrued interest is reversed and income is recognized subsequently only in the period received, provided the remaining principal balance is deemed collectible. A nonaccrual loan is not returned to an accrual status until principal and interest payments are brought current and factors indicating doubtful collection no longer exist. Principal and interest payments received on non-accrual loans for which the remaining principal balance is not deemed collectible are applied as a reduction to principal and interest income is not recognized. If the principal balance on the loan is later deemed collectible and the loan is returned to accrual status, any interest payments that were applied to principal while on non-accrual are recorded as an unearned discount on the loan, classified as deferred fees, costs and discounts, and are recognized into interest income using the level-yield method over the remaining contractual life the individual loan, adjusted for actual prepayments. |
Allowance for Loan Losses | The allowance for loan losses is a valuation allowance for probable and reasonably estimable incurred credit losses in the loan portfolio as of the balance sheet date. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required for all portfolio segments using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component of the allowance relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impaired loans are measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance (generally $400,000 or less) homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment. Impaired loans also include all nonaccrual non-residential, multifamily and construction and land loans, and troubled debt restructurings. Troubled debt restructured loans are those loans whose terms have been modified such that a concession has been granted because of deterioration in the financial condition of the borrower. Modifications could include extension of the terms of the loan, reduced interest rates, and forgiveness of accrued interest and/or principal. Once an obligation has been classified a troubled debt restructuring, it continues to be considered a troubled debt restructuring and is individually evaluated for impairment until paid in full. For a cash flow dependent loan, the Company records an impairment charge equal to the difference between the present value of the estimated future cash flows under the restructured terms discounted at the loans original effective interest rate, and the original loan’s carrying amount. For a collateral dependent loan, the Company records an impairment when the current estimated fair value, net of estimated costs to sell when necessary, of the property that collateralizes the impaired loan is less than the recorded investment in the loan. The general component of the allowance covers non impaired loans and is based on historical loss experience adjusted for current qualitative factors. The historical loss experience is a quantitative factor determined by portfolio segment and is based on the actual loss history experienced by the Company. The qualitative factors include consideration of the following: • Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses • Changes in international, national, regional, and local economic and business conditions and developments that affect the collectibility of the portfolio, including the condition of various market segments • Changes in the nature and volume of the portfolio and in the terms of loans • Changes in the experience, ability, and depth of lending management and other relevant staff • Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans. • Changes in the quality of the institution's loan review system • Changes in the value of underlying collateral for collateral-dependent loans • The existence and effect of any concentrations of credit, and changes in the level of such concentrations • The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution's existing portfolio The loan portfolio is categorized according to collateral type, loan purpose, lien position, or borrower type (i.e., commercial, consumer). The categories used include residential one-to-four family, multifamily, non-residential, construction and land, junior liens, commercial and industrial (consisting primarily of Paycheck Protection Program, or “PPP”, loans), and consumer and other. |
Real Estate Owned (REO) | REO consists of properties acquired in foreclosure actions or in settlement of loans and real estate held for investment purposes. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Real estate acquired in foreclosure, or in lieu thereof, is initially recorded at fair value, as generally determined by independent appraisals, less estimated costs to sell. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. When a property is acquired and there is a collateral deficiency, the excess of the loan balance over fair value is charged off through the allowance for loan losses. In instances where the fair value exceeds the loan balance, a recovery to the allowance for loan losses is recorded up to an amount equal to any previous charge-offs taken on the loan, with any excess remaining recorded as a gain on REO through the statement of operations. Subsequent costs directly related to the completion of construction or improvement of the real estate are capitalized to the extent realizable. Carrying costs, such as maintenance and taxes, are charged to operations as incurred. In addition, rental income collected on REO is recognized as income when received. The Company evaluates its real estate held for investment based upon projected future cash flows of the underlying properties. Based upon the projected future cash flows, an impairment loss is recognized if the carrying amount of the real estate is not recoverable and exceeds fair value. |
Premises and Equipment | Premises and equipment, including leasehold improvements, are generally stated at cost less accumulated depreciation, amortization and fair value adjustments. Depreciation and amortization is computed primarily using the straight-line method over the estimated useful lives of the assets or leases. Repair and maintenance items are expensed and improvements are capitalized. Construction in process represents costs incurred to develop properties for future use. |
Leases and Lease Obligations | The Company enters into leases in the normal course of business primarily for financial centers, administrative and office operations locations, and information technology equipment. The Company’s leases have remaining terms ranging from less than one Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company’s incremental borrowing rate is based on the FHLB advance rate, adjusted for the lease term and other factors. |
Bank Owned Life Insurance | The Company has purchased life insurance policies on certain key individuals. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement |
Goodwill and Other Intangible Assets | Goodwill resulting from business combinations represents the excess of the purchase price over the fair value of the net assets of the businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but are tested for impairment at least annually or more frequently if events and circumstances exists that indicate that an impairment test should be performed. For the year ended December 31, 2020, goodwill of $15.5 million was impaired based on a multi-factor quantitative assessment which resulted in the carrying amount of goodwill exceeding its fair value. After the 2020 impairment, there is no remaining goodwill. Intangible assets as of December 31, 2021 represent capitalized costs related to internal-use software. Eligible costs are capitalized according to ASC 350-40 and are amortized over the estimated useful life. Intangible assets are considered for potential impairment quarterly, or more frequently if a triggering event occurs under ASC 360-10-35. |
Income Taxes | Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company evaluates the realizability of deferred tax assets at least annually in accordance with ASC 740-10-30-5(e), and may determine that it is more-likely-than-not that a portion, or all, of the assets would require a valuation allowance. During the fourth quarter of 2021, the Company recorded a valuation allowance on all outstanding deferred tax assets in the amount of $16.8 million. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced by a valuation allowance for the amount of the deferred tax asset that is more likely than not to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in other operating expenses. |
Retirement Benefits | Effective January 1, 2020 the Defined Benefit Plan adopted by the Company was amended to freeze the plan, eliminating all future benefit accruals. In August, 2021, the Company announced its intent to withdraw from the DB Plan, effective September 30, 2021. The withdrawal was completed on December 1, 2021. The Company recorded a termination expense of $11.2 million.The Company provides certain healthcare benefits, subject to certain limitations, to eligible retirees, based upon years of service and a retirement date prior to January 1, 2019. The Company also provides supplemental retirement benefits to certain directors. The Company measures the cost of these benefits based upon various estimates and assumptions. Costs are recognized as directors render service. |
Employee Stock Ownership Plan | The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of shareholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce the ESOP’s debt and accrued interest. |
Comprehensive Income (Loss) | Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on both securities available for sale and derivatives, net of the related tax effect. Also included are changes in the unfunded status of the Company’s defined benefit plans, net of the related tax effect, which are recognized as separate components of shareholders’ equity. |
Loss Contingencies | Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the consolidated financial statements. |
Earnings per share | Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. ESOP shares committed to be released are considered to be outstanding for purposes of the earnings per share computation. ESOP shares that have not been legally released, but that relate to employee services rendered during an accounting period (interim or annual) ending before the related debt service payment is made, are considered committed to be released. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options awards and are determined using the treasury stock method . |
Segment Reporting | The Company operates as a single operating segment for financial reporting purposes. |
Adoption of New Accounting Standards and Accounting Standards Not Yet Adopted | No new accounting standards were adopted during the year ended December 31, 2021. Accounting Standards Not Yet Adopted As an “emerging growth company” as defined in Title 1 of the Jumpstart Our Business Startups (JOBS) Act prior to December 31, 2019, the Company elected to use the extended transition period to delay the adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements were made applicable to private companies. |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of amortized cost of securities available for sale and their estimated fair value | The amortized cost of securities available for sale and their estimated fair values at December 31, 2021 and 2020 are as follows: Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated (In thousands) December 31, 2021 Available for sale U.S. Treasury Notes $ 36,933 $ 4 $ (105) $ 36,832 Corporate Bonds 86,118 1,791 (290) 87,619 U.S. Government agency obligations 23,462 46 (179) 23,329 Obligations issued by U.S. states and their political subdivisions 19,172 1,152 — 20,324 Mortgage-backed securities: Residential one-to-four family 116,166 140 (1,905) 114,401 Multifamily 35,412 598 (94) 35,916 Asset-backed securities 6,538 3 (70) 6,471 Total available-for-sale $ 323,801 $ 3,734 $ (2,643) $ 324,892 December 31, 2020 Available for sale U.S. Treasury Notes $ 9,989 $ 11 $ — $ 10,000 Corporate Bonds 57,478 1,863 — 59,341 U.S. Government agency obligations 19,787 89 (201) 19,675 Obligations issued by U.S. states and their political subdivisions 23,280 1,515 — 24,795 Mortgage-backed securities: Residential one-to-four family 71,773 951 (8) 72,716 Multifamily 56,563 1,499 (2) 58,060 Total available-for-sale $ 238,870 $ 5,928 $ (211) $ 244,587 |
Summary of amortized cost of securities held to maturity and their estimated fair value | The amortized cost of securities held-to-maturity and their estimated fair values at December 31, 2021 and 2020, are as follows: Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated (In thousands) December 31, 2021 Held-to-maturity Asset-backed securities $ 15,281 $ — $ (373) $ 14,908 Corporate bonds 8,000 — (59) 7,941 Total held-to-maturity $ 23,281 $ — $ (432) $ 22,849 December 31, 2020 Held-to-maturity Collateralized loan obligation $ 7,005 $ — $ (26) $ 6,979 Total Held-to-maturity $ 7,005 $ — $ (26) $ 6,979 |
Summary of amortized cost and fair value of debt securities shown by contractual maturity | The amortized cost and fair value of debt securities are shown below by contractual maturity. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. Securities not due at a single maturity are shown separately: December 31, 2021 Amortized Cost Estimated Fair Value (In thousands) Available-for-sale Due in one year or less $ 6,421 $ 6,479 Due from one year to five years 87,166 87,673 Due from five to ten years 55,412 56,684 Due after ten years 16,686 17,268 Mortgage-backed and asset-backed securities 158,116 156,788 Total $ 323,801 $ 324,892 Held-to-maturity Due from one year to five years 6,071 5,947 Due from five to ten years 16,210 15,902 Due after ten years 1,000 1,000 Total $ 23,281 $ 22,849 |
Summary of available-for-sale securities with unrealized losses | The following tables summarize available-for-sale securities with unrealized losses at December 31, 2021 and 2020, aggregated by major security type and length of time in a continuous loss position. Less than 12 Months 12 Months or More Total Unrealized Losses Estimated Unrealized Losses Estimated Unrealized Losses Estimated (In thousands) December 31, 2021 Available for sale U.S. Treasury Note $ (105) $ 16,814 $ — $ — $ (105) $ 16,814 Corporate Bonds (290) 17,183 — — (290) 17,183 U.S. Government (49) 9,951 (130) 7,980 (179) 17,931 Mortgage-backed Residential one-to-four (1,761) 104,805 (144) 3,009 (1,905) 107,814 Multifamily — — (94) 910 (94) 910 Asset-backed securities (70) 4,458 — — (70) 4,458 Total available-for-sale $ (2,275) $ 153,211 $ (368) $ 11,899 $ (2,643) $ 165,110 December 31, 2020 Available for sale U.S. Government $ (54) $ 3,559 $ (147) $ 10,014 $ (201) $ 13,573 Mortgage-backed Residential one-to-four (7) 3,228 (1) 115 (8) 3,343 Multifamily (2) 738 — 313 (2) 1,051 Total available-for-sale $ (63) $ 7,525 $ (148) $ 10,442 $ (211) $ 17,967 |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Summary of loans receivable | A summary of loans receivable, net is as follows: December 31, 2021 December 31, 2020 (In thousands) Residential one-to-four family $ 560,976 $ 611,603 Multifamily 515,240 427,436 Non-residential 141,561 128,141 Construction and land 23,419 33,691 Junior liens 18,464 23,814 Commercial and industrial (including PPP) 21,563 54,053 Consumer and other 87 99 Total loans 1,281,310 1,278,837 Deferred fees, costs and premiums and discounts, net 6,299 5,236 Allowance for loan losses (14,425) (16,959) (8,126) (11,723) Loans receivable, net $ 1,273,184 $ 1,267,114 |
Summary of changes in allowance for loan losses by class of loans | The following tables present the activity in the Company’s allowance for loan losses by class of loans for the years ended December 31, 2021, and 2020: Residential Multifamily Non-Residential Construction Junior Liens Commercial and Industrial (including PPP) Consumer Unallocated Total (In thousands) Year Ended December 31, 2021 Allowance for loan losses Beginning balance $ 3,579 $ 5,460 $ 3,244 $ 3,655 $ 916 $ 2 $ 48 $ 55 $ 16,959 Charge-offs — — — — — — (16) — (16) Recoveries — — — — — — — — — (Recovery of) provision for loan losses (757) (197) (398) (977) (280) 49 6 36 (2,518) Total ending allowance balance $ 2,822 $ 5,263 $ 2,846 $ 2,678 $ 636 $ 51 $ 38 $ 91 $ 14,425 Year Ended December 31, 2020 Allowance for loan losses Beginning balance $ 3,446 $ 4,256 $ 2,548 $ 3,028 $ 1,002 $ — $ 56 $ 164 $ 14,500 Charge-offs (49) — — — — — (10) — (59) Recoveries — — — — — — — — — (Recovery of) provision for loan losses 182 1,204 696 627 (86) 2 2 (109) 2,518 Total ending allowance balance $ 3,579 $ 5,460 $ 3,244 $ 3,655 $ 916 $ 2 $ 48 $ 55 $ 16,959 The following table represents the allocation of allowance for loan losses and the related recorded investment (including deferred fees and costs) in loans by loan portfolio segment disaggregated based on the impairment methodology at December 31, 2021 and December 31, 2020 : Residential Multifamily Non-Residential Construction Junior Liens Commercial and Industrial (including PPP) Consumer Unallocated Total (In thousands) December 31, 2021 Allowance for loan losses: Individually evaluated $ 31 $ — $ — $ — $ — $ — $ 37 $ — $ 68 Collectively evaluated 2,791 5,263 2,846 2,678 636 51 1 91 14,357 Total $ 2,822 $ 5,263 $ 2,846 $ 2,678 $ 636 $ 51 $ 38 $ 91 $ 14,425 Loans receivable: Individually evaluated $ 10,169 $ 684 $ 4,577 $ — $ 55 $ — $ 37 $ — $ 15,522 Collectively evaluated 556,314 515,884 136,957 23,420 18,495 20,966 51 1,272,087 Total $ 566,483 $ 516,568 $ 141,534 $ 23,420 $ 18,550 $ 20,966 $ 88 $ — $ 1,287,609 December 31, 2020 Allowance for loan losses: Individually evaluated $ 49 $ 26 $ — $ — $ — $ — $ 46 $ — $ 121 Collectively evaluated 3,530 5,434 3,244 3,655 916 2 2 55 16,838 Total $ 3,579 $ 5,460 $ 3,244 $ 3,655 $ 916 $ 2 $ 48 $ 55 $ 16,959 Loans receivable: Individually evaluated $ 11,829 $ 1,721 $ 5,084 $ — $ 58 $ — $ 46 $ — $ 18,738 Collectively evaluated 604,419 427,374 123,133 33,630 23,860 52,867 52 — 1,265,335 Total $ 616,248 $ 429,095 $ 128,217 $ 33,630 $ 23,918 $ 52,867 $ 98 $ — $ 1,284,073 |
Summary of impaired loans by class of loans | The following table presents information related to impaired loans by class of loans as of December 31, 2021 and December 31, 2020. Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Cash Basis Interest Recognized (In thousands) December 31, 2021 With no related allowance Residential one-to-four $ 8,744 $ 9,108 $ — $ 9,534 $ 75 $ 75 Multifamily 684 684 — 1,170 26 24 Non-residential 4,725 4,577 — 4,869 210 196 Construction and land — — — — — — Junior liens 55 55 — 57 3 3 Commercial and — — — — — — 14,208 14,424 — 15,630 314 298 With an allowance recorded: Residential one-to-four 1,062 1,061 31 1,243 50 46 Multifamily — — — — — — Non-residential — — — — — — Construction and land — — — — — — Commercial and — — — — — — Consumer and other 37 37 37 41 2 2 1,099 1,098 68 1,284 52 48 Total $ 15,307 $ 15,522 $ 68 $ 16,914 $ 366 $ 346 December 31, 2020 With no related allowance Residential one-to-four $ 6,399 $ 6,508 $ — $ 473 $ 97 $ 96 Multifamily 1,216 1,226 — 405 45 41 Non-residential 6,006 5,812 — 2,410 207 201 Construction and land — — — — — — Junior liens 60 59 — 27 1 1 Commercial and — — — — — — 13,681 13,605 — 3,315 350 339 With an allowance recorded: Residential one-to-four 1,519 1,521 108 679 53 47 Multifamily 353 352 28 157 11 10 Non-residential — — — — — — Construction and land — — — — — — Commercial and — — — — — — Consumer and other 49 48 48 23 1 1 1,921 1,921 184 859 65 58 Total $ 15,602 $ 15,526 $ 184 $ 4,174 $ 415 $ 397 |
Summary of past due loans in non-accrual and past 90 days still on accrual | The following table presents the recorded investment in non-accrual loans and loans past due 90 days or more still on accrual as of December 31, 2021 and December 31, 2020 : Nonaccrual Loans Past Due 12/31/2021 12/31/2020 12/31/2021 12/31/2020 (In thousands) Residential one-to-four family $ 10,805 $ 11,813 $ — $ — Multifamily 139 156 — — Non-residential 857 805 — — Construction and land — — — — Junior liens 182 82 — — Commercial and industrial (including PPP) — — 116 (1) — Total $ 11,983 $ 12,856 $ 116 $ — (1) PPP loans 90 days past due and accruing totaled $116 thousand. These PPP loans were not reported in non-performing loans as they carry the federal guarantee of the SBA. The following table presents the recorded investment in past due and current loans by loan portfolio class as of December 31, 2021 and December 31, 2020: 60-89 90 Days Total Current Total (In thousands) December 31, 2021 Residential one-to-four family $ 457 $ 8,936 $ 9,393 $ 557,090 $ 566,483 Multifamily — — — 516,568 516,568 Non-residential — 381 381 141,153 141,534 Construction and land — — — 23,420 23,420 Junior liens 53 182 235 18,315 18,550 Commercial and Industrial (including PPP) 57 116 173 20,793 20,966 Consumer and other — — — 88 88 Total $ 567 $ 9,615 $ 10,182 $ 1,277,427 $ 1,287,609 December 31, 2020 Residential one-to-four family $ 3,151 $ 10,075 $ 13,226 $ 603,022 $ 616,248 Multifamily — 156 156 428,939 429,095 Non-residential — 805 805 127,412 128,217 Construction and land 3,000 — 3,000 30,630 33,630 Junior liens — — — 23,918 23,918 Commercial and Industrial (including PPP) — — — 52,867 52,867 Consumer and other — — — 98 98 Total $ 6,151 $ 11,036 $ 17,187 $ 1,266,886 $ 1,284,073 |
Schedule of credit quality indicators | The following table presents the risk category of loans by class of loans based on the most recent analysis performed as of December 31, 2021 and December 31, 2020: Pass Special Substandard Doubtful / Total (In thousands) December 31, 2021 Residential one-to-four family $ 555,184 $ — $ 11,299 $ — $ 566,483 Multifamily 510,815 5,069 684 — 516,568 Non-residential 140,377 144 1,013 — 141,534 Construction and land 23,420 — — — 23,420 Junior liens 18,368 — 182 — 18,550 Commercial and Industrial (including PPP) 20,966 — — 20,966 Consumer and other 88 — — — 88 Total $ 1,269,218 $ 5,213 $ 13,178 $ — $ 1,287,609 December 31, 2020 Residential one-to-four family $ 604,167 $ — $ 12,081 $ — $ 616,248 Multifamily 411,369 16,648 1,078 — 429,095 Non-residential 127,089 154 974 — 128,217 Construction and land 33,630 — — — 33,630 Junior liens 23,836 — 82 — 23,918 Commercial and Industrial (including PPP) 52,867 — — — 52,867 Consumer and other 98 — — — 98 Total $ 1,253,056 $ 16,802 $ 14,215 $ — $ 1,284,073 |
REAL ESTATE OWNED (REO), NET (T
REAL ESTATE OWNED (REO), NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate Owned, Net [Abstract] | |
Schedule of REO activity | REO activity is as follows for the years ended December 31, 2021 and 2020: 2021 2020 Beginning balance $ 624 $ 2,014 Additions — — Sales of REO (618) — Write down of REO (6) (1,390) Ending balance $ — $ 624 |
Schedule of (loss) income related to REO | Income (loss) related to REO for the years ended December 31, 2021 and 2020, are as follows: 2021 2020 Net gain on sales $ — $ — Write down of REO (6) (1,390) Rental income, net of operating expenses 97 175 REO income (loss) $ 91 $ (1,215) |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment, net | Premises and equipment, net, at December 31, 2021 and 2020, are summarized as follows: 2021 2020 Land $ 3,793 $ 4,320 Buildings and improvements 14,583 11,302 Leasehold improvements 10,174 3,204 Furnishings and equipment 9,325 8,640 Construction-in-Progress 1,618 5,103 39,493 32,569 Accumulated depreciation and amortization (11,367) (13,000) $ 28,126 $ 19,569 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of balance sheet information related to operating leases | As of December 31, 2021, the Company had the following related to operating leases: As of December 31, 2021 (In thousands) Right-of-use assets $ 25,457 Lease liabilities 26,696 |
Summary of lease cost | The following table is a summary of the Company’s components of net lease cost for the year ended December 31, 2021 and 2020: Year Ended December 31, 2021 2020 (In thousands) Operating lease cost $ 3,034 $ 1,486 Finance lease cost 19 15 Variable lease cost 219 79 Total lease cost $ 3,272 $ 1,580 |
Summary of future undiscounted operating lease payments | Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2021 are as follows: (In thousands) 2022 $ 2,995 2023 2,786 2024 2,699 2025 2,309 2026 2,300 Thereafter 17,265 Total undiscounted lease payments 30,354 Less: imputed interest (3,658) Total $ 26,696 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Summary of deposits | Deposits at December 31, 2021 and December 31, 2020, are summarized as follows: December 31, 2021 December 31, 2020 (In thousands) Non -interest bearing deposits $ 44,894 $ 44,195 NOW and demand accounts 363,419 317,974 Savings 364,932 276,584 Time deposits 473,795 717,431 Total $ 1,247,040 $ 1,356,184 |
Schedule of timed deposit maturities | Time deposits mature as follows for the year ending December 31: (In thousands) 2022 $ 304,656 2023 121,643 2024 34,911 2025 6,499 2026 6,086 $ 473,795 |
ADVANCES FROM THE FEDERAL HOM_2
ADVANCES FROM THE FEDERAL HOME LOAN BANK OF NEW YORK (FHLB) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Federal Home Loan Banks [Abstract] | |
Schedule of FHLB advances | Advances mature as follows for the year ended December 31, 2021. Maturity Rate Range Weighted Average Rate Amount 2022 0.35% — 0.38% 0.36% $ 109,000 2023 0.70% — 1.94% 1.71% 18,000 2024 1.60% — 1.94% 1.80% 38,000 2025 1.50% — 1.60% 1.58% 20,500 0.92% $ 185,500 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of changes in projected benefit obligations, fair value of plan assets and funded status | The following table sets forth the change in benefit obligation, change in plan assets and a reconciliation of the unfunded status and the assumptions used in determining the net periodic cost included in the accompanying consolidated financial statements for the Company’s post retirement plans. The measurement date for the post retirement plans were December 31 for each year presented. SERP and DRP Post Retirement 2021 2020 2021 2020 (In thousands) Change in benefit obligation: Projected benefit obligation at beginning of year $ 4,102 $ 3,760 $ 1,881 $ 1,946 Service cost 201 146 1 1 Interest cost 79 98 38 54 Actuarial (gain) loss (100) 448 (215) (9) Benefits paid (341) (350) (92) (111) Projected benefit obligation at end of year 3,941 4,102 1,613 1,881 Reconciliation of plan assets: Fair value of plan assets at beginning of year — — — — Actual return on plan assets — — — — Employer contributions 341 350 92 111 Benefits and Settlements paid (341) (350) (92) (111) Fair value of plan assets at end of year — — — — Unfunded status $ 3,941 $ 4,102 $ 1,613 $ 1,881 |
Schedule of amount recognized in accumulated other comprehensive income | Amounts recognized in accumulated other comprehensive income at December 31, ignoring tax effects, consist of: SERP and DRP Post Retirement 2021 2020 2021 2020 (In thousands) Unrecognized net actuarial loss (gain) $ 1,073 $ 1,317 $ (189) $ 23 Unrecognized prior service cost 333 402 — — Total accumulated other comprehensive loss (gain) $ 1,406 $ 1,719 $ (189) $ 23 |
Schedule of plan assumptions | The weighted average assumptions used in the determination of benefit obligations as of December 31 were as follows: SERP and DRP Post Retirement 2021 2020 2021 2020 Discount rate 2.31 % 1.85 % 2.53 % 2.10 % Rate of compensation increase* 6.25 % 6.25 % N/A N/A * Rate of compensation increase applicable to DRP only. The weighted-average assumptions used in the determination of net periodic benefit cost were as follows: SERP and DRP Post Retirement 2021 2020 2021 2020 Discount rate 1.82 % 2.21 % 2.18 % 2.53 % Expected rate of return on plan assets N/A N/A N/A N/A Rate of compensation increase* 6.25 % 6.25 % N/A N/A * Rate of compensation increase applicable to DRP only. |
Schedule of net periodic benefit cost and other amounts recognized in OCI | The components of net periodic benefit cost and other amounts recognized in other comprehensive income were as follows for the years ended December 31, 2021 and 2020: SERP and DRP Post Retirement 2021 2020 2021 2020 (In thousands) Service cost $ 201 $ 146 $ 1 $ 1 Interest cost 79 98 38 54 Amortization: Past service liability — — — — Net loss (gain) 213 190 (3) (1) Net periodic benefit cost $ 493 $ 434 $ 36 $ 54 |
Schedule of expected benefit payments | The benefits expected to be paid in each of the next five years and the aggregate for the five years thereafter are as follows: SERP and DRP Post- Retirement (In thousands) 2022 $ 331 $ 98 2023 311 88 2024 286 89 2025 289 90 2026 268 90 Years 2027 - 2031 1,161 445 |
EMPLOYEE STOCK OWNERSHIP PLAN (
EMPLOYEE STOCK OWNERSHIP PLAN (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Shares held by ESOP | Shares held by the ESOP were as follows: December 31, 2021 (Dollars in thousands) Shares allocated to participants 91,272 Unallocated shares 2,190,528 Total ESOP shares 2,281,800 Fair value of unallocated shares at December 31, 2021 $ 32,047 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense (benefit) | Income tax expense (benefit) for the years ended December 31, 2021 and 2020, consists of the following: Current Deferred Total (In thousands) December 31, 2021 Federal $ 140 $ 5,810 $ 5,950 State — 3,668 3,668 $ 140 $ 9,478 $ 9,618 December 31, 2020 Federal $ (1,582) $ (3,570) $ (5,152) State 161 (2,875) (2,714) $ (1,421) $ (6,445) $ (7,866) |
Schedule of effective income tax rate reconciliation | A reconciliation between the actual income tax expense and the expected federal income tax expense (computed by multiplying income before income tax expense times the applicable statutory federal income tax rate) for the years ended December 31, 2021 and 2020, is as follows: 2021 2020 (In thousands) Income (loss) before income tax (benefit) expense $ (26,724) $ (39,372) Applicable statutory federal income tax rate 21.00 % 21.00 % Computed “expected” federal income tax (benefit) expense $ (5,612) $ (8,268) Increase (decrease) in federal income tax expense resulting from: State income taxes, net of federal benefit (1,614) (2,143) Valuation Allowance 16,719 — Tax-exempt income (108) (132) Impairment of Goodwill — 3,247 CARES Act – Carryback expense (benefit) 247 (568) Other (14) (2) Total $ 9,618 $ (7,866) |
Schedule of deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020, are as follows: 2021 2020 Deferred tax assets: (In Thousands) Allowance for loan losses and REO $ 4,617 $ 5,136 Allowance for losses premises and equipment — 3,915 Net unrealized losses on derivatives 69 1,559 Accrued postretirement benefits 1,217 1,077 Accrued interest receivable 179 108 Accrued bonus 506 112 Finance Lease Liability 7,504 7,178 Charitable contribution carryover 2,709 — Funded status of benefit plans 342 490 Federal net operating loss carryforward 6,648 — State net operating loss carryforward 2,392 553 Other 37 49 Total gross deferred tax assets 26,220 20,177 Valuation allowance (16,868) (72) Gross deferred tax assets after valuation allowance 9,352 20,105 Deferred tax liabilities: Net unrealized gains on securities available for sale 327 1,509 Deferred loan fees, net 1,198 1,472 Premises and equipment 489 — Finance Lease ROU Asset 7,156 6,993 Other 182 114 Total gross deferred tax liabilities 9,352 10,088 Net deferred tax asset $ — $ 10,017 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of interest-rate swaps designated as cash flow hedges | Summary information about the interest-rate swaps designated as cash flow hedges as of period-end is as follows: December 31, 2021 December 31, 2020 (Dollars in thousands) Notional amounts $ 109,000 $ 109,000 Weighted average pay rates 1.46 % 1.46 % Weighted average receive rates 0.17 % 0.23 % Weighted average maturity (in years) 5.3 6.2 Unrealized losses $ (246) $ (5,545) |
Summary of effect of cash flow hedge accounting on AOCI | The effect of cash flow hedge accounting on accumulated other comprehensive income for the years ended December 31, 2021 and 2020 are as follows: Amount of Gain (Loss) Recognized in OCI on Derivative (1) Location of Gain (Loss) Reclassified from OCI into Income/(Expense) Amount of Gain (Loss) Reclassified from OCI to Income/(Expense) (In thousands) Year Ended December 31, 2021 Interest rate contracts $ (246) Interest Expense $ (1,427) Year Ended December 31, 2020 Interest rate contracts $ (3,986) Interest Expense $ (752) (1) Net of tax for the year ended December 31, 2020. For the year ended December 31, 2021, there is no tax effect due to the deferred taxes valuation allowance. See Note 11 for information related to the deferred taxes valuation allowance. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of changes in accumulated other comprehensive income by component, net of tax | The following is a summary of the changes in accumulated other comprehensive income by component, net of tax adjusted for deferred tax valuation allowances, for the periods indicated: Gains and Unrealized Gains Defined Total (In thousands) Balance at December 31, 2020 $ (3,986) $ 4,208 $ (1,253) $ (1,031) Other comprehensive income (loss) before reclassification 2,733 (3,118) (115) (500) Amounts reclassified from accumulated other comprehensive income 1,007 1 151 1,159 Net current period other comprehensive (loss) gain 3,740 (3,117) 36 659 Balance at December 31, 2021 $ (246) $ 1,091 $ (1,217) $ (372) Gains and Unrealized Gains Defined Total (In thousands) Balance at December 31, 2019 $ (360) $ 916 $ (1,073) $ (517) Other comprehensive income (loss) before reclassification (4,167) 3,343 (315) (1,139) Amounts reclassified from accumulated other comprehensive income 541 (51) 135 625 Net current period other comprehensive (loss) gain (3,626) 3,292 (180) (514) Balance at December 31, 2020 $ (3,986) $ 4,208 $ (1,253) $ (1,031) |
Summary of reclassification out of each component of accumulated other comprehensive income (loss) | The following is significant amounts reclassified out of each component of accumulated other comprehensive income (loss): Details about Accumulated Other Comprehensive Income Components Year Ended December 31, Affected Line Item in the Statement Where Net Income is Presented 2021 2020 (In thousands) Unrealized (loss) gain on securities available for sale: Realized (losses) gains on securities available for sale $ (1) $ 69 (Loss) gain on sales and calls of securities Gains and (losses) on cash flow hedges: Interest rate contracts (1,427) (752) Interest (expense) income Amortization of benefit plan items: Net actuarial loss (210) (189) Compensation and employee benefits Total tax effect 479 247 Income tax expense Total reclassification for the period, net of tax $ (1,159) $ (625) |
FAIR VALUE OF ASSETS AND LIAB_2
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of fair value of assets and liabilities | The following table summarizes the fair value of assets and liabilities as of December 31, 2021: Fair Value Measurements at December 31, 2021, Using Quoted Prices Significant Other Significant Total (Level 1) (Level 2) (Level 3) (In thousands) Measured on a recurring basis: Financial assets Securities available for sale: U.S. Treasury Notes $ 36,832 $ 36,832 $ — $ — Domestic Corporate Bonds 87,619 — 87,619 — U.S. Government agency obligations 23,329 17,617 5,712 — Obligations issued by U.S. states and their political subdivisions 20,324 — 20,324 — Mortgage-backed securities: Residential one-to-four family 114,401 — 114,401 — Multifamily 35,916 — 35,916 — Asset-backed securities 6,471 — 6,471 — $ 324,892 $ 54,449 $ 270,443 $ — Financial Liabilities Derivatives $ 246 $ — $ 246 $ — There were no assets or liabilities measured at fair value on a non-recurring basis at December 31, 2021. The assets held for sale and REO were sold in December 2021, resulting in a net loss of $104 thousand and $6 thousand for assets held for sale and REO, respectively. The following table summarizes the fair value of assets and liabilities as of December 31, 2020: Fair Value Measurements at December 31, 2020, Using Quoted Prices Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) (In thousands) Measured on a recurring basis: Financial assets Securities available for sale U.S. Treasury Notes $ 10,000 $ 10,000 $ — $ — Domestic Corporate Bonds 59,341 — 59,341 — U.S. Government agency obligations 19,675 12,417 7,258 — Obligations issued by U.S. states and their political subdivisions 24,795 — 24,795 — Mortgage-backed securities: Residential one-to-four family 72,716 — 72,716 — Multifamily 58,060 — 58,060 — Total $ 244,587 $ 22,417 $ 222,170 $ — Financial Liabilities Derivatives $ 5,545 $ — $ 5,545 $ — Measured on a nonrecurring basis: Nonfinancial assets Assets held for sale $ 5,295 $ — $ 5,295 $ — Real estate owned 624 — 624 — |
Summary of carrying amounts and fair value of financial instruments not carried at fair value | The carrying amounts and fair value of financial instruments not carried at fair value, at December 31, 2021 and December 31, 2020 are as follows: Fair Value Measurements at December 31, 2021, Using Quoted Prices Significant Significant Book Value (Level 1) (Level 2) (Level 3) (In thousands) Financial assets Securities held-to-maturity $ 23,281 $ — $ 22,849 $ — Loans, net 1,273,184 — — 1,266,799 Financial liabilities Time Deposits 473,795 — 470,732 — Federal Home Loan advances 185,500 — 182,795 — Fair Value Measurements at December 31, 2020, Using Quoted Prices Significant Significant Book Value (Level 1) (Level 2) (Level 3) (In thousands) Financial assets Securities held-to-maturity $ 7,005 $ — $ 6,978 $ — Loans, net 1,267,114 — — 1,290,740 Financial liabilities Time Deposits 717,431 — 725,110 — Federal Home Loan advances 329,400 — 336,377 — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of loan commitments not reflected in financial statements | The following commitments exist at December 31, 2021 and 2020, which are not reflected in the accompanying consolidated financial statements: As of December 31, 2021 2020 (Dollars in Thousands) Origination of mortgage loans: Fixed rate $ 1,847 $ 5,517 Variable rate 14,456 23,144 Undisbursed home equity credit lines 33,265 33,786 Undisbursed construction credit lines 17,700 16,264 Undisbursed commercial credit lines 1,792 1,594 Performance standby letters of credit 671 671 Overdraft protection credit lines 19,038 10,548 Commitments to purchase investments 1,000 — |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS AND OTHER INCOME (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of sources of revenue from contracts with customers | The following table presents the Company’s sources of revenue from contracts with customers for the year ended ended December 31, 2021 and 2020, respectively. Year Ended December 31, 2021 2020 (In thousands) Non-interest income Service charges on deposits $ 954 $ 722 Interchange income 33 21 REO (loss) gain 6 — Total Revenue from Contracts with Customers $ 993 $ 743 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Twelve Months Ended December 31, 2021 (Income In thousands) Net loss applicable to common shares $ (36,342) Average number of common shares outstanding 13,206,308 Less: Average unallocated ESOP shares 1,035,258 Average number of common shares outstanding used to calculate basic earnings per common share 12,171,050 Common stock equivalents — Net loss per share available to common shareholders-Basic and Diluted $ (2.99) |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Capital Requirements Administered By Federal Banking Agencies [Abstract] | |
Schedule of compliance with regulatory capital requirements | The following table presents the regulatory capital, assets and risk based capital (common equity Tier 1, Tier 1 and Total capital) ratios for the Bank at December 31, 2021 and 2020 (in thousands, other than ratios): Bank Actual Minimum Capital Adequacy Minimum Capital Adequacy With Capital Buffer For Classification as Well Capitalized Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Common equity tier 1 $ 293,349 25.74 % $ 51,292 4.50 % $ 79,787 7.00 % $ 74,088 6.50 % Tier 1 capital 293,349 25.74 % 68,389 6.00 % 96,885 8.50 % 91,186 8.00 % Total capital 307,624 26.99 % 91,186 8.00 % 119,681 10.50 % 113,982 10.00 % Tier 1 (leverage) capital 293,349 15.00 % 78,201 4.00 % N/A N/A 97,752 5.00 % December 31, 2020 Common equity tier 1 $ 206,258 19.93 % $ 46,578 4.50 % $ 72,455 7.00 % $ 67,279 6.50 % Tier 1 capital 206,258 19.93 % 62,104 6.00 % 87,981 8.50 % 82,806 8.00 % Total capital 219,262 21.18 % 82,806 8.00 % 108,682 10.50 % 103,507 10.00 % Tier 1 (leverage) capital 206,258 10.72 % 76,934 4.00 % N/A N/A 96,168 5.00 % |
CONDENSED FINANCIAL STATEMENT_2
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Financial Condition | The condensed financial statements of Blue Foundry Bancorp (parent company only) are presented below: Condensed Statements of Financial Condition At December 31, 2021 2020 (In thousands) Assets: Cash and cash equivalents $ 114,331 $ 329 Investment in banking subsidiary 293,414 205,227 ESOP loan receivable 21,837 — Other assets 245 164 Total Assets $ 429,827 $ 205,720 Liabilities and Stockholders’ Equity: Total liabilities $ 356 $ 120 Total stockholders’ equity 429,471 205,600 Total Liabilities and Stockholders’ Equity $ 429,827 $ 205,720 |
Condensed Statement of Operations | Condensed Statements of Operations Year Ended December 31, 2021 2020 (In thousands) Income: Interest on ESOP loan receivable $ 343 $ — Other income 23 16 Total income 366 16 Expenses: Contribution to Blue Foundry Charitable Foundation 9,000 — Goodwill Impairment — 13,100 Other expenses 719 66 Total expenses 9,719 13,166 Loss before income tax (benefit) expense (9,353) (13,150) Income tax (benefit) expense (59) 98 Loss before undistributed earnings of subsidiary (9,294) (13,248) Equity in undistributed earnings of banking subsidiary (27,048) (18,258) Net loss $ (36,342) $ (31,506) |
Condensed Statement of Cash Flows | Condensed Statements of Cash Flows Twelve Months Ended December 31, 2021 2020 (In thousands) Cash flows from operating activities: Net loss $ (36,342) $ (31,506) Adjustments to reconcile net loss to net cash provided by operating activities: Equity in undistributed earnings of subsidiary 27,048 18,258 Issuance of common shares donated to Blue Foundry Charitable Foundation 7,500 — Goodwill impairment — 13,100 ESOP expense 361 — Increase in other assets (82) (5) Increase in other liabilities 237 55 Net cash used by operating activities (1,278) (98) Cash flows from investing activities: Capital contribution to banking subsidiary (136,481) — Loan to ESOP (22,818) — Repayment of ESOP loan 981 — Net cash used in investing activities (158,318) — Cash flows from financing activities: Proceeds from issuance of common shares 273,598 — Net cash provided by financing activities 273,598 — Net increase (decrease) in cash and cash equivalents 114,002 (98) Cash and cash equivalents at beginning of year 329 427 Cash and cash equivalents at end of year $ 114,331 $ 329 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 01, 2021 | Jul. 15, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | |||||
Stock price per share | $ 10 | ||||
Gross offering proceeds | $ 277,700 | ||||
Charitable contribution in cash | $ 1,500 | ||||
Common shares purchased for ESOP | 2,281,800 | ||||
Renewal or option to extend term (up to) | 10 years | 10 years | |||
Goodwill impairment | $ 0 | $ 15,460 | |||
Increase in deferred tax allowance | $ 16,800 | $ 16,800 | |||
Termination expense on multiemployer plan withdrawal | $ 11,200 | ||||
Public stock offering | |||||
Lessee, Lease, Description [Line Items] | |||||
Shares of common stock sold | 27,772,500 | ||||
Donation of shares to Blue Foundry Charitable Foundation | |||||
Lessee, Lease, Description [Line Items] | |||||
Shares of common stock sold | 750,000 | ||||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease terms | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease terms | 15 years | 15 years | |||
Blue Foundry Bancorp - NJ | |||||
Lessee, Lease, Description [Line Items] | |||||
Ownership interest percentage | 100.00% | 100.00% |
SECURITIES - Summary of amortiz
SECURITIES - Summary of amortized cost of securities available for sale and their estimated fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 323,801 | $ 238,870 |
Gross Unrealized Gains | 3,734 | 5,928 |
Gross Unrealized Losses | (2,643) | (211) |
Estimated Fair Value | 324,892 | 244,587 |
U.S. Treasury Notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 36,933 | 9,989 |
Gross Unrealized Gains | 4 | 11 |
Gross Unrealized Losses | (105) | 0 |
Estimated Fair Value | 36,832 | 10,000 |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 86,118 | 57,478 |
Gross Unrealized Gains | 1,791 | 1,863 |
Gross Unrealized Losses | (290) | 0 |
Estimated Fair Value | 87,619 | 59,341 |
U.S. Government agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 23,462 | 19,787 |
Gross Unrealized Gains | 46 | 89 |
Gross Unrealized Losses | (179) | (201) |
Estimated Fair Value | 23,329 | 19,675 |
Obligations issued by U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,172 | 23,280 |
Gross Unrealized Gains | 1,152 | 1,515 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 20,324 | 24,795 |
Residential one-to-four family | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 116,166 | 71,773 |
Gross Unrealized Gains | 140 | 951 |
Gross Unrealized Losses | (1,905) | (8) |
Estimated Fair Value | 114,401 | 72,716 |
Multifamily | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 35,412 | 56,563 |
Gross Unrealized Gains | 598 | 1,499 |
Gross Unrealized Losses | (94) | (2) |
Estimated Fair Value | 35,916 | $ 58,060 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,538 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (70) | |
Estimated Fair Value | $ 6,471 |
SECURITIES - Summary of amort_2
SECURITIES - Summary of amortized cost of securities held to maturity and their estimated fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 23,281 | $ 7,005 |
Gross Unrecognized Gains | 0 | 0 |
Gross Unrecognized Losses | (432) | (26) |
Estimated Fair Value | 22,849 | 6,979 |
Collateralized loan obligation | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 7,005 | |
Gross Unrecognized Gains | 0 | |
Gross Unrecognized Losses | (26) | |
Estimated Fair Value | $ 6,979 | |
Asset-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 15,281 | |
Gross Unrecognized Gains | 0 | |
Gross Unrecognized Losses | (373) | |
Estimated Fair Value | 14,908 | |
Corporate Bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 8,000 | |
Gross Unrecognized Gains | 0 | |
Gross Unrecognized Losses | (59) | |
Estimated Fair Value | $ 7,941 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security | Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security | |
Schedule of Held-to-maturity Securities [Line Items] | ||||
Proceeds from sales and calls of available-for-sale securities | $ 14,200,000 | $ 13,200,000 | ||
Gross realized gains | 0 | 70,000 | ||
Gross realized losses | (1,000) | (1,000) | ||
Other than temporary impairment on available for sale securities. | $ 0 | $ 0 | $ 0 | 0 |
Number of held to maturity securities in an unrecognized loss position | security | 2 | 2 | ||
Securities pledged as collateral | $ 9,100,000 | $ 12,700,000 | $ 9,100,000 | $ 12,700,000 |
Collateralized loan obligation | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Number of held to maturity securities in an unrecognized loss position | security | 1 | 1 | ||
Fair value of securities held to maturity | $ 3,000,000 | $ 3,000,000 | ||
Unrecognized loss position of securities held to maturity | $ (26,000) | $ (26,000) | ||
U.S. Government agency obligations | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Number of available for sale securities in an unrealized loss position | security | 4 | 4 | ||
U.S. Treasury Note | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Number of available for sale securities in an unrealized loss position | security | 2 | 2 | ||
Residential Mortgage Backed Securities | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Number of available for sale securities in an unrealized loss position | security | 29 | 29 | ||
Corporate Bonds | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Fair value of securities held to maturity | $ 6,900,000 | $ 6,900,000 | ||
Unrecognized loss position of securities held to maturity | $ (59,000) | $ (59,000) | ||
Number of available for sale securities in an unrealized loss position | security | 7 | 7 | ||
Asset-backed securities | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Number of held to maturity securities in an unrecognized loss position | security | 2 | 2 | ||
Fair value of securities held to maturity | $ 14,900,000 | $ 14,900,000 | ||
Unrecognized loss position of securities held to maturity | $ (373,000) | $ (373,000) | ||
Number of available for sale securities in an unrealized loss position | security | 2 | 2 |
SECURITIES - Summary of amort_3
SECURITIES - Summary of amortized cost and fair value of debt securities shown by contractual maturity (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Amortized Cost | |
Due in one year or less | $ 6,421 |
Due from one year to five years | 87,166 |
Due from five to ten years | 55,412 |
Due after ten years | 16,686 |
Mortgage-backed and asset-backed securities | 158,116 |
Total | 323,801 |
Estimated Fair Value | |
Due in one year or less | 6,479 |
Due from one year to five years | 87,673 |
Due from five to ten years | 56,684 |
Due after ten years | 17,268 |
Mortgage-backed and asset-backed securities | 156,788 |
Total | 324,892 |
Amortized Cost | |
Due from one year to five years | 6,071 |
Due from five to ten years | 16,210 |
Due after ten years | 1,000 |
Total | 23,281 |
Estimated Fair Value | |
Due from one year to five years | 5,947 |
Due from five to ten years | 15,902 |
Due after ten years | 1,000 |
Total | $ 22,849 |
SECURITIES - Summary of availab
SECURITIES - Summary of available for sale securities with unrealized losses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Unrealized Losses | $ (2,275) | $ (63) |
Estimated Fair Value | 153,211 | 7,525 |
Unrealized Losses | (368) | (148) |
Estimated Fair Value | 11,899 | 10,442 |
Unrealized Losses | (2,643) | (211) |
Estimated Fair Value | 165,110 | 17,967 |
U.S. Treasury Note | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Unrealized Losses | (105) | |
Estimated Fair Value | 16,814 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 0 | |
Unrealized Losses | (105) | |
Estimated Fair Value | 16,814 | |
Corporate Bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Unrealized Losses | (290) | |
Estimated Fair Value | 17,183 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 0 | |
Unrealized Losses | (290) | |
Estimated Fair Value | 17,183 | |
U.S. Government agency obligations | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Unrealized Losses | (49) | (54) |
Estimated Fair Value | 9,951 | 3,559 |
Unrealized Losses | (130) | (147) |
Estimated Fair Value | 7,980 | 10,014 |
Unrealized Losses | (179) | (201) |
Estimated Fair Value | 17,931 | 13,573 |
Residential one-to-four family | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Unrealized Losses | (1,761) | (7) |
Estimated Fair Value | 104,805 | 3,228 |
Unrealized Losses | (144) | (1) |
Estimated Fair Value | 3,009 | 115 |
Unrealized Losses | (1,905) | (8) |
Estimated Fair Value | 107,814 | 3,343 |
Multifamily | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Unrealized Losses | 0 | (2) |
Estimated Fair Value | 0 | 738 |
Unrealized Losses | (94) | 0 |
Estimated Fair Value | 910 | 313 |
Unrealized Losses | (94) | (2) |
Estimated Fair Value | 910 | $ 1,051 |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Unrealized Losses | (70) | |
Estimated Fair Value | 4,458 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 0 | |
Unrealized Losses | (70) | |
Estimated Fair Value | $ 4,458 |
LOANS RECEIVABLE, NET - Summary
LOANS RECEIVABLE, NET - Summary of loans receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | $ 1,281,310 | $ 1,278,837 | |
Deferred fees, costs and premiums and discounts, net | 6,299 | 5,236 | |
Allowance for loan losses | (14,425) | (16,959) | $ (14,500) |
Allowance for credit loss less deferred fees, costs and discounts, net | (8,126) | (11,723) | |
Loans receivable, net | 1,273,184 | 1,267,114 | |
Residential Portfolio Segment | Residential one-to-four family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 560,976 | 611,603 | |
Allowance for loan losses | (2,822) | (3,579) | (3,446) |
Residential Portfolio Segment | Multifamily | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 515,240 | 427,436 | |
Allowance for loan losses | (5,263) | (5,460) | (4,256) |
Non-residential | Non-residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 141,561 | 128,141 | |
Allowance for loan losses | (2,846) | (3,244) | (2,548) |
Construction and land | Construction and land | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 23,419 | 33,691 | |
Allowance for loan losses | (2,678) | (3,655) | (3,028) |
Junior liens | Junior liens | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 18,464 | 23,814 | |
Allowance for loan losses | (636) | (916) | (1,002) |
Commercial and industrial (including PPP) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 4,800 | 131 | |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 21,563 | 54,053 | |
Allowance for loan losses | (51) | (2) | 0 |
Commercial and industrial (including PPP) | PPP Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 16,800 | 53,900 | |
Consumer and other | Consumer and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 87 | 99 | |
Allowance for loan losses | $ (38) | $ (48) | $ (56) |
LOANS RECEIVABLE, NET - Summa_2
LOANS RECEIVABLE, NET - Summary of changes in allowance for loan losses by class of loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for loan losses | |||
Beginning balance | $ 14,425 | $ 16,959 | $ 14,500 |
Charge-offs | (16) | (59) | |
(Recovery of) provision for loan losses | 0 | 0 | |
(Recovery of) provision for loan losses | (2,518) | 2,518 | |
Total ending allowance balance | 14,425 | 16,959 | |
Residential Portfolio Segment | Residential one-to-four family | |||
Allowance for loan losses | |||
Beginning balance | 2,822 | 3,579 | 3,446 |
Charge-offs | 0 | (49) | |
(Recovery of) provision for loan losses | 0 | 0 | |
(Recovery of) provision for loan losses | (757) | 182 | |
Total ending allowance balance | 2,822 | 3,579 | |
Residential Portfolio Segment | Multifamily | |||
Allowance for loan losses | |||
Beginning balance | 5,263 | 5,460 | 4,256 |
Charge-offs | 0 | 0 | |
(Recovery of) provision for loan losses | 0 | 0 | |
(Recovery of) provision for loan losses | (197) | 1,204 | |
Total ending allowance balance | 5,263 | 5,460 | |
Non-residential | Non-residential | |||
Allowance for loan losses | |||
Beginning balance | 2,846 | 3,244 | 2,548 |
Charge-offs | 0 | 0 | |
(Recovery of) provision for loan losses | 0 | 0 | |
(Recovery of) provision for loan losses | (398) | 696 | |
Total ending allowance balance | 2,846 | 3,244 | |
Construction and land | Construction and land | |||
Allowance for loan losses | |||
Beginning balance | 2,678 | 3,655 | 3,028 |
Charge-offs | 0 | 0 | |
(Recovery of) provision for loan losses | 0 | 0 | |
(Recovery of) provision for loan losses | (977) | 627 | |
Total ending allowance balance | 2,678 | 3,655 | |
Junior liens | Junior liens | |||
Allowance for loan losses | |||
Beginning balance | 636 | 916 | 1,002 |
Charge-offs | 0 | 0 | |
(Recovery of) provision for loan losses | 0 | 0 | |
(Recovery of) provision for loan losses | (280) | (86) | |
Total ending allowance balance | 636 | 916 | |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | |||
Allowance for loan losses | |||
Beginning balance | 51 | 2 | 0 |
Charge-offs | 0 | 0 | |
(Recovery of) provision for loan losses | 0 | 0 | |
(Recovery of) provision for loan losses | 49 | 2 | |
Total ending allowance balance | 51 | 2 | |
Consumer and other | Consumer and other | |||
Allowance for loan losses | |||
Beginning balance | 38 | 48 | 56 |
Charge-offs | (16) | (10) | |
(Recovery of) provision for loan losses | 0 | 0 | |
(Recovery of) provision for loan losses | 6 | 2 | |
Total ending allowance balance | 38 | 48 | |
Unallocated Financing Receivables | |||
Allowance for loan losses | |||
Beginning balance | 91 | 55 | $ 164 |
Charge-offs | 0 | 0 | |
(Recovery of) provision for loan losses | 0 | 0 | |
(Recovery of) provision for loan losses | 36 | (109) | |
Total ending allowance balance | $ 91 | $ 55 |
LOANS RECEIVABLE, NET - Summa_3
LOANS RECEIVABLE, NET - Summary of allowance and loans receivable evaluated for impairment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Allowance for loan losses: | |||
Individually evaluated for impairment | $ 68 | $ 121 | |
Collectively evaluated for impairment | 14,357 | 16,838 | |
Total | 14,425 | 16,959 | $ 14,500 |
Loans receivable: | |||
Individually evaluated for impairment | 15,522 | 18,738 | |
Collectively evaluated for impairment | 1,272,087 | 1,265,335 | |
Total Loans Receivable | 1,287,609 | 1,284,073 | |
Residential Portfolio Segment | Residential one-to-four family | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | 31 | 49 | |
Collectively evaluated for impairment | 2,791 | 3,530 | |
Total | 2,822 | 3,579 | 3,446 |
Loans receivable: | |||
Individually evaluated for impairment | 10,169 | 11,829 | |
Collectively evaluated for impairment | 556,314 | 604,419 | |
Total Loans Receivable | 566,483 | 616,248 | |
Residential Portfolio Segment | Multifamily | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | 0 | 26 | |
Collectively evaluated for impairment | 5,263 | 5,434 | |
Total | 5,263 | 5,460 | 4,256 |
Loans receivable: | |||
Individually evaluated for impairment | 684 | 1,721 | |
Collectively evaluated for impairment | 515,884 | 427,374 | |
Total Loans Receivable | 516,568 | 429,095 | |
Non-residential | Non-residential | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 2,846 | 3,244 | |
Total | 2,846 | 3,244 | 2,548 |
Loans receivable: | |||
Individually evaluated for impairment | 4,577 | 5,084 | |
Collectively evaluated for impairment | 136,957 | 123,133 | |
Total Loans Receivable | 141,534 | 128,217 | |
Construction and land | Construction and land | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 2,678 | 3,655 | |
Total | 2,678 | 3,655 | 3,028 |
Loans receivable: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 23,420 | 33,630 | |
Total Loans Receivable | 23,420 | 33,630 | |
Junior liens | Junior liens | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 636 | 916 | |
Total | 636 | 916 | 1,002 |
Loans receivable: | |||
Individually evaluated for impairment | 55 | 58 | |
Collectively evaluated for impairment | 18,495 | 23,860 | |
Total Loans Receivable | 18,550 | 23,918 | |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 51 | 2 | |
Total | 51 | 2 | 0 |
Loans receivable: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 20,966 | 52,867 | |
Total Loans Receivable | 20,966 | 52,867 | |
Consumer and other | Consumer and other | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | 37 | 46 | |
Collectively evaluated for impairment | 1 | 2 | |
Total | 38 | 48 | 56 |
Loans receivable: | |||
Individually evaluated for impairment | 37 | 46 | |
Collectively evaluated for impairment | 51 | 52 | |
Total Loans Receivable | 88 | 98 | |
Unallocated Financing Receivables | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 91 | 55 | |
Total | 91 | 55 | $ 164 |
Loans receivable: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 0 | ||
Total Loans Receivable | $ 0 | $ 0 |
LOANS RECEIVABLE, NET - Summa_4
LOANS RECEIVABLE, NET - Summary of impaired loans by class of loan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
With no related allowance recorded: | ||
Unpaid Principal Balance | $ 14,208 | $ 13,681 |
Recorded Investment | 14,424 | 13,605 |
Average Recorded Investment | 15,630 | 3,315 |
Interest Income Recognized | 314 | 350 |
Cash Basis Interest Recognized | 298 | 339 |
With an allowance recorded: | ||
Unpaid Principal Balance | 1,099 | 1,921 |
Recorded Investment | 1,098 | 1,921 |
Allowance for Loan Losses Allocated | 68 | 184 |
Average Recorded Investment | 1,284 | 859 |
Interest Income Recognized | 52 | 65 |
Cash Basis Interest Recognized | 48 | 58 |
Total | ||
Unpaid Principal Balance | 15,307 | 15,602 |
Recorded Investment | 15,522 | 15,526 |
Allowance for Loan Losses Allocated | 68 | 184 |
Average Recorded Investment | 16,914 | 4,174 |
Interest Income Recognized | 366 | 415 |
Cash Basis Interest Recognized | 346 | 397 |
Residential Portfolio Segment | Residential one-to-four family | ||
With no related allowance recorded: | ||
Unpaid Principal Balance | 8,744 | 6,399 |
Recorded Investment | 9,108 | 6,508 |
Average Recorded Investment | 9,534 | 473 |
Interest Income Recognized | 75 | 97 |
Cash Basis Interest Recognized | 75 | 96 |
With an allowance recorded: | ||
Unpaid Principal Balance | 1,062 | 1,519 |
Recorded Investment | 1,061 | 1,521 |
Allowance for Loan Losses Allocated | 31 | 108 |
Average Recorded Investment | 1,243 | 679 |
Interest Income Recognized | 50 | 53 |
Cash Basis Interest Recognized | 46 | 47 |
Total | ||
Allowance for Loan Losses Allocated | 31 | 108 |
Residential Portfolio Segment | Multifamily | ||
With no related allowance recorded: | ||
Unpaid Principal Balance | 684 | 1,216 |
Recorded Investment | 684 | 1,226 |
Average Recorded Investment | 1,170 | 405 |
Interest Income Recognized | 26 | 45 |
Cash Basis Interest Recognized | 24 | 41 |
With an allowance recorded: | ||
Unpaid Principal Balance | 0 | 353 |
Recorded Investment | 0 | 352 |
Allowance for Loan Losses Allocated | 0 | 28 |
Average Recorded Investment | 0 | 157 |
Interest Income Recognized | 0 | 11 |
Cash Basis Interest Recognized | 0 | 10 |
Total | ||
Allowance for Loan Losses Allocated | 0 | 28 |
Non-residential | Non-residential | ||
With no related allowance recorded: | ||
Unpaid Principal Balance | 4,725 | 6,006 |
Recorded Investment | 4,577 | 5,812 |
Average Recorded Investment | 4,869 | 2,410 |
Interest Income Recognized | 210 | 207 |
Cash Basis Interest Recognized | 196 | 201 |
With an allowance recorded: | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Cash Basis Interest Recognized | 0 | 0 |
Total | ||
Allowance for Loan Losses Allocated | 0 | 0 |
Construction and land | Construction and land | ||
With no related allowance recorded: | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Cash Basis Interest Recognized | 0 | 0 |
With an allowance recorded: | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Cash Basis Interest Recognized | 0 | 0 |
Total | ||
Allowance for Loan Losses Allocated | 0 | 0 |
Commercial and industrial (including PPP) | Commercial and Industrial (including PPP) | ||
With no related allowance recorded: | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Cash Basis Interest Recognized | 0 | 0 |
With an allowance recorded: | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Cash Basis Interest Recognized | 0 | 0 |
Total | ||
Allowance for Loan Losses Allocated | 0 | 0 |
Junior liens | Junior liens | ||
With no related allowance recorded: | ||
Unpaid Principal Balance | 55 | 60 |
Recorded Investment | 55 | 59 |
Average Recorded Investment | 57 | 27 |
Interest Income Recognized | 3 | 1 |
Cash Basis Interest Recognized | 3 | 1 |
Consumer and other | Consumer and other | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 37 | 49 |
Recorded Investment | 37 | 48 |
Allowance for Loan Losses Allocated | 37 | 48 |
Average Recorded Investment | 41 | 23 |
Interest Income Recognized | 2 | 1 |
Cash Basis Interest Recognized | 2 | 1 |
Total | ||
Allowance for Loan Losses Allocated | $ 37 | $ 48 |
LOANS RECEIVABLE, NET - Narrati
LOANS RECEIVABLE, NET - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Loans with terms modified in troubled debt restructurings | $ 5,400,000 | $ 6,300,000 |
Reserves specific to troubled debt restructuring | 68,000 | 95,000 |
Number of loans restructurings with subsequent default in the next twelve months | $ 0 | $ 0 |
LOANS RECEIVABLE, NET - Summa_5
LOANS RECEIVABLE, NET - Summary of past due loans in non-accrual and past 90 days still on accrual (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 11,983 | $ 12,856 |
Loans Past Due 90 Days and Still Accruing | 116 | 0 |
Residential Portfolio Segment | Residential one-to-four family | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 10,805 | 11,813 |
Loans Past Due 90 Days and Still Accruing | 0 | 0 |
Residential Portfolio Segment | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 139 | 156 |
Loans Past Due 90 Days and Still Accruing | 0 | 0 |
Non-residential | Non-residential | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 857 | 805 |
Loans Past Due 90 Days and Still Accruing | 0 | 0 |
Construction and land | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
Loans Past Due 90 Days and Still Accruing | 0 | 0 |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
Loans Past Due 90 Days and Still Accruing | 116 | 0 |
Junior liens | Junior liens | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 182 | 82 |
Loans Past Due 90 Days and Still Accruing | $ 0 | $ 0 |
LOANS RECEIVABLE, NET - Aging a
LOANS RECEIVABLE, NET - Aging analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 1,287,609 | $ 1,284,073 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 567 | 6,151 |
90 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 9,615 | 11,036 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 10,182 | 17,187 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,277,427 | 1,266,886 |
Residential Portfolio Segment | Residential one-to-four family | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 566,483 | 616,248 |
Residential Portfolio Segment | Residential one-to-four family | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 457 | 3,151 |
Residential Portfolio Segment | Residential one-to-four family | 90 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 8,936 | 10,075 |
Residential Portfolio Segment | Residential one-to-four family | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 9,393 | 13,226 |
Residential Portfolio Segment | Residential one-to-four family | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 557,090 | 603,022 |
Residential Portfolio Segment | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 516,568 | 429,095 |
Residential Portfolio Segment | Multifamily | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Residential Portfolio Segment | Multifamily | 90 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 156 |
Residential Portfolio Segment | Multifamily | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 156 |
Residential Portfolio Segment | Multifamily | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 516,568 | 428,939 |
Non-residential | Non-residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 141,534 | 128,217 |
Non-residential | Non-residential | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Non-residential | Non-residential | 90 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 381 | 805 |
Non-residential | Non-residential | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 381 | 805 |
Non-residential | Non-residential | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 141,153 | 127,412 |
Construction and land | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 23,420 | 33,630 |
Construction and land | Construction and land | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 3,000 |
Construction and land | Construction and land | 90 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Construction and land | Construction and land | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 3,000 |
Construction and land | Construction and land | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 23,420 | 30,630 |
Junior liens | Junior liens | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 18,550 | 23,918 |
Junior liens | Junior liens | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 53 | 0 |
Junior liens | Junior liens | 90 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 182 | 0 |
Junior liens | Junior liens | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 235 | 0 |
Junior liens | Junior liens | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 18,315 | 23,918 |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 20,966 | 52,867 |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 57 | 0 |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | 90 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 116 | 0 |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 173 | 0 |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 20,793 | 52,867 |
Consumer and other | Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 88 | 98 |
Consumer and other | Consumer and other | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Consumer and other | Consumer and other | 90 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Consumer and other | Consumer and other | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Consumer and other | Consumer and other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 88 | $ 98 |
LOANS RECEIVABLE, NET - Credit
LOANS RECEIVABLE, NET - Credit quality indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | $ 1,287,609 | $ 1,284,073 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,269,218 | 1,253,056 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 5,213 | 16,802 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 13,178 | 14,215 |
Doubtful/Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Residential Portfolio Segment | Residential one-to-four family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 566,483 | 616,248 |
Residential Portfolio Segment | Residential one-to-four family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 555,184 | 604,167 |
Residential Portfolio Segment | Residential one-to-four family | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Residential Portfolio Segment | Residential one-to-four family | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 11,299 | 12,081 |
Residential Portfolio Segment | Residential one-to-four family | Doubtful/Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Residential Portfolio Segment | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 516,568 | 429,095 |
Residential Portfolio Segment | Multifamily | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 510,815 | 411,369 |
Residential Portfolio Segment | Multifamily | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 5,069 | 16,648 |
Residential Portfolio Segment | Multifamily | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 684 | 1,078 |
Residential Portfolio Segment | Multifamily | Doubtful/Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Non-residential | Non-residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 141,534 | 128,217 |
Non-residential | Non-residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 140,377 | 127,089 |
Non-residential | Non-residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 144 | 154 |
Non-residential | Non-residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,013 | 974 |
Non-residential | Non-residential | Doubtful/Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Construction and land | Construction and land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 23,420 | 33,630 |
Construction and land | Construction and land | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 23,420 | 33,630 |
Construction and land | Construction and land | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Construction and land | Construction and land | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Construction and land | Construction and land | Doubtful/Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Junior liens | Junior liens | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 18,550 | 23,918 |
Junior liens | Junior liens | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 18,368 | 23,836 |
Junior liens | Junior liens | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Junior liens | Junior liens | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 182 | 82 |
Junior liens | Junior liens | Doubtful/Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 20,966 | 52,867 |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 20,966 | 52,867 |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial and industrial (including PPP) | Commercial and industrial (including PPP) | Doubtful/Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | |
Consumer and other | Consumer and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 88 | 98 |
Consumer and other | Consumer and other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 88 | 98 |
Consumer and other | Consumer and other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Consumer and other | Consumer and other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Consumer and other | Consumer and other | Doubtful/Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | $ 0 | $ 0 |
REAL ESTATE OWNED (REO), NET -
REAL ESTATE OWNED (REO), NET - REO activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Real Estate Owned, Net [Roll Forward] | ||
Beginning balance | $ 624 | $ 2,014 |
Additions | 0 | 0 |
Sales of REO | (618) | 0 |
Write down of REO | (6) | (1,390) |
Ending balance | $ 0 | $ 624 |
REAL ESTATE OWNED (REO), NET _2
REAL ESTATE OWNED (REO), NET - (Loss) income related to REO (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Real Estate Owned, Net [Abstract] | ||
Net gain on sales | $ 0 | $ 0 |
Write down of REO | (6) | (1,390) |
Rental income, net of operating expenses | 97 | 175 |
REO income (loss) | $ 91 | $ (1,215) |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 39,493 | $ 32,569 |
Accumulated depreciation and amortization | (11,367) | (13,000) |
Premises and equipment, net | 28,126 | 19,569 |
Depreciation and amortization | 2,300 | 1,900 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 3,793 | 4,320 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 14,583 | 11,302 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 10,174 | 3,204 |
Furnishings and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 9,325 | 8,640 |
Construction-in-Progress | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 1,618 | $ 5,103 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining lease terms on operating leases (in years) | 12 years 2 months 12 days | 12 years 10 months 24 days |
Weighted average discount rate on operating leases | 1.97% | 1.95% |
Operating lease cash payments for lease liabilities | $ 2,720 | $ 1,570 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease original lease terms (in years) | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease original lease terms (in years) | 40 years |
LEASES - Lease liabilities and
LEASES - Lease liabilities and ROU assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Right-of-use assets | $ 25,457 | $ 24,878 |
Lease liabilities | $ 26,696 | $ 25,535 |
LEASES - Summary of components
LEASES - Summary of components of net lease cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 3,034 | $ 1,486 |
Finance lease cost | 19 | 15 |
Variable lease cost | 219 | 79 |
Total lease cost | $ 3,272 | $ 1,580 |
LEASES - Schedule of future und
LEASES - Schedule of future undiscounted lease payments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 2,995 | |
2023 | 2,786 | |
2024 | 2,699 | |
2025 | 2,309 | |
2026 | 2,300 | |
Thereafter | 17,265 | |
Total undiscounted lease payments | 30,354 | |
Less: imputed interest | (3,658) | |
Total | $ 26,696 | $ 25,535 |
DEPOSITS - Summary of deposits
DEPOSITS - Summary of deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Noninterest-bearing Deposit Liabilities | $ 44,894 | $ 44,195 |
NOW and demand accounts | 363,419 | 317,974 |
Savings | 364,932 | 276,584 |
Time deposits | 473,795 | 717,431 |
Deposits | $ 1,247,040 | $ 1,356,184 |
DEPOSITS - Schedule of timed de
DEPOSITS - Schedule of timed deposit maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
2022 | $ 304,656 | |
2023 | 121,643 | |
2024 | 34,911 | |
2025 | 6,499 | |
2026 | 6,086 | |
Time deposits | $ 473,795 | $ 717,431 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Time deposits that meet or exceed the FDIC insurance limit | $ 47,300 | $ 96,100 |
Related party deposits | $ 2,400 | $ 3,600 |
ADVANCES FROM THE FEDERAL HOM_3
ADVANCES FROM THE FEDERAL HOME LOAN BANK OF NEW YORK (FHLB) - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Federal Home Loan Banks [Abstract] | ||
Fixed rate, term borrowings from FHLB | $ 185,500,000 | $ 329,400,000 |
Extinguishment of FHLB borrowings | 111,400,000 | 14,000,000 |
FHLB prepayment penalty | 2,200,000 | 843,000 |
Investment securities and loans pledged to secure advances | 319,900,000 | 423,500,000 |
FHLB advances | $ 185,500,000 | $ 329,400,000 |
Weighted average fixed rate | 0.92% | 1.49% |
ADVANCES FROM THE FEDERAL HOM_4
ADVANCES FROM THE FEDERAL HOME LOAN BANK OF NEW YORK (FHLB) - Maturity schedule (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Rate Range | ||
2025 | 1.58% | |
Weighted Average Rate | ||
2022 | 0.36% | |
2023 | 1.71% | |
2024 | 1.80% | |
2025 | 1.58% | |
Weighted Average Rate | 0.92% | 1.49% |
Amount | ||
2022 | $ 109,000,000 | |
2023 | 18,000,000 | |
2024 | 38,000,000 | |
2025 | 20,500,000 | |
Federal Home Loan Bank advances | $ 185,500,000 | $ 329,400,000 |
Minimum | ||
Rate Range | ||
2022 | 0.35% | |
2023 | 0.70% | |
2024 | 1.60% | |
2025 | 1.50% | |
Maximum | ||
Rate Range | ||
2022 | 0.38% | |
2023 | 1.94% | |
2024 | 1.94% | |
2025 | 1.60% |
RETIREMENT PLANS - Narrative (D
RETIREMENT PLANS - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Aug. 31, 2021USD ($) | Jan. 01, 2019participant | |
Retirement Benefits [Abstract] | ||||
Loss on pension withdrawal | $ 11,200 | |||
Contributions to 401k plan | $ 701 | $ 670 | ||
Number of remaining retired participants in health plan | participant | 13 | |||
Estimated net loss for post-retirement plans | 124 | |||
Estimated prior service cost for post-retirement plans | $ 69 |
RETIREMENT PLANS- Schedule of c
RETIREMENT PLANS- Schedule of change in benefit obligation and fair value of plan assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
SERP and DRP | ||
Change in benefit obligation: | ||
Projected benefit obligation at beginning of year | $ 4,102 | $ 3,760 |
Service cost | 201 | 146 |
Interest cost | 79 | 98 |
Actuarial (gain) loss | (100) | 448 |
Benefits paid | (341) | (350) |
Prior service credit as a result of plan amendments | 0 | 0 |
Projected benefit obligation at end of year | 3,941 | 4,102 |
Reconciliation of plan assets: | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 341 | 350 |
Benefits and Settlements paid | (341) | (350) |
Fair value of plan assets at end of year | 0 | 0 |
Unfunded status | 3,941 | 4,102 |
Post Retirement | ||
Change in benefit obligation: | ||
Projected benefit obligation at beginning of year | 1,881 | 1,946 |
Service cost | 1 | 1 |
Interest cost | 38 | 54 |
Actuarial (gain) loss | (215) | (9) |
Benefits paid | (92) | (111) |
Prior service credit as a result of plan amendments | 0 | 0 |
Projected benefit obligation at end of year | 1,613 | 1,881 |
Reconciliation of plan assets: | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 92 | 111 |
Benefits and Settlements paid | (92) | (111) |
Fair value of plan assets at end of year | 0 | 0 |
Unfunded status | $ 1,613 | $ 1,881 |
RETIREMENT PLANS - Amounts incl
RETIREMENT PLANS - Amounts included in accumulated other comprehensive income (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
SERP and DRP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized net actuarial loss (gain) | $ 1,073 | $ 1,317 |
Unrecognized prior service cost | 333 | 402 |
Total accumulated other comprehensive loss (gain) | 1,406 | 1,719 |
Post Retirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized net actuarial loss (gain) | (189) | 23 |
Unrecognized prior service cost | 0 | 0 |
Total accumulated other comprehensive loss (gain) | $ (189) | $ 23 |
RETIREMENT PLANS - Assumptions
RETIREMENT PLANS - Assumptions used in calculating net period benefit cost (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
SERP and DRP | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 2.31% | 1.85% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 1.82% | 2.21% |
Post Retirement | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 2.53% | 2.10% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 2.18% | 2.53% |
DRP | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Rate of compensation increase* | 6.25% | 6.25% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Rate of compensation increase* | 6.25% | 6.25% |
RETIREMENT PLANS - Amounts in_2
RETIREMENT PLANS - Amounts included in other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
SERP and DRP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 201 | $ 146 |
Interest cost | 79 | 98 |
Amortization: | ||
Past service liability | 0 | 0 |
Net loss (gain) | 213 | 190 |
Net periodic benefit cost | 493 | 434 |
Post Retirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 38 | 54 |
Amortization: | ||
Past service liability | 0 | 0 |
Net loss (gain) | (3) | (1) |
Net periodic benefit cost | $ 36 | $ 54 |
RETIREMENT PLANS - Expected fut
RETIREMENT PLANS - Expected future benefit payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
SERP and DRP | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 331 |
2023 | 311 |
2024 | 286 |
2025 | 289 |
2026 | 268 |
Years 2027 - 2031 | 1,161 |
Post Retirement | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 98 |
2023 | 88 |
2024 | 89 |
2025 | 90 |
2026 | 90 |
Years 2027 - 2031 | $ 445 |
EMPLOYEE STOCK OWNERSHIP PLAN -
EMPLOYEE STOCK OWNERSHIP PLAN - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Unallocated common stock held by ESOP (in shares) | 2,281,800 | |
Price per share, ESOP (in usd per share) | $ 10 | |
Remaining principal on ESOP loan | $ 21,800 | |
Purchase of common shares by the ESOP | 981 | |
ESOP expense | $ 1,274 | $ 0 |
EMPLOYEE STOCK OWNERSHIP PLAN_2
EMPLOYEE STOCK OWNERSHIP PLAN - Shares held by ESOP (Details) $ in Thousands | Dec. 31, 2021USD ($)shares |
Share-based Payment Arrangement [Abstract] | |
Shares allocated to participants | 91,272 |
Unallocated shares | 2,190,528 |
Total ESOP shares | 2,281,800 |
Fair value of unallocated shares at December 31, 2021 | $ | $ 32,047 |
INCOME TAXES - Schedule of inco
INCOME TAXES - Schedule of income tax expense (benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current | ||
Federal | $ 140 | $ (1,582) |
State | 0 | 161 |
Current federal, state and local, tax expense (benefit) | 140 | (1,421) |
Deferred | ||
Federal | 5,810 | (3,570) |
State | 3,668 | (2,875) |
Deferred federal, state and local, tax expense (benefit) | 9,478 | (6,445) |
Total | ||
Federal | 5,950 | (5,152) |
State | 3,668 | (2,714) |
Income tax (benefit) expense | $ 9,618 | $ (7,866) |
INCOME TAXES - Schedule of effe
INCOME TAXES - Schedule of effective income tax rate reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income tax (benefit) expense | $ (26,724) | $ (39,372) |
Applicable statutory federal income tax rate | 21.00% | 21.00% |
Computed “expected” federal income tax (benefit) expense | $ (5,612) | $ (8,268) |
Increase (decrease) in federal income tax expense resulting from: | ||
State income taxes, net of federal benefit | (1,614) | (2,143) |
Valuation Allowance | 16,719 | 0 |
Tax-exempt income | (108) | (132) |
Impairment of Goodwill | 0 | 3,247 |
CARES Act – Carryback expense (benefit) | 247 | (568) |
Other | (14) | (2) |
Income tax (benefit) expense | $ 9,618 | $ (7,866) |
INCOME TAXES - Schedule of defe
INCOME TAXES - Schedule of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for loan losses and REO | $ 4,617 | $ 5,136 |
Allowance for losses premises and equipment | 0 | 3,915 |
Net unrealized losses on derivatives | 69 | 1,559 |
Accrued postretirement benefits | 1,217 | 1,077 |
Accrued interest receivable | 179 | 108 |
Accrued bonus | 506 | 112 |
Finance Lease Liability | 7,504 | 7,178 |
Charitable contribution carryover | 2,709 | 0 |
Funded status of benefit plans | 342 | 490 |
Federal net operating loss carryforward | 6,648 | 0 |
State net operating loss carryforward | 2,392 | 553 |
Other | 37 | 49 |
Total gross deferred tax assets | 26,220 | 20,177 |
Valuation allowance | (16,868) | (72) |
Gross deferred tax assets after valuation allowance | 9,352 | 20,105 |
Deferred tax liabilities: | ||
Net unrealized gains on securities available for sale | 327 | 1,509 |
Deferred loan fees, net | 1,198 | 1,472 |
Premises and equipment | 489 | 0 |
Finance Lease ROU Asset | 7,156 | 6,993 |
Other | 182 | 114 |
Total gross deferred tax liabilities | 9,352 | 10,088 |
Net deferred tax asset | $ 0 | $ 10,017 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Increase in deferred tax allowance | $ 16,800 | $ 16,800 | |
Valuation allowance related to NOL carryfowards | 9,000 | 9,000 | |
Approximate amount of retained earnings for which no provision for income tax has been made | 14,600 | 14,600 | $ 14,600 |
Contribution to Blue Foundry Charitable Foundation | $ 9,000 | $ 0 | |
Charitable Contribution | |||
Operating Loss Carryforwards [Line Items] | |||
Charitable contribution tax credit carryforward, term | 5 years | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 31,700 | $ 31,700 | |
State and Local Jurisdiction | New Jersey Division of Taxation | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 33,600 | $ 33,600 | |
Expiration term on state operating loss carryforwards | 20 years | 20 years |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest expense | $ (1,400,000) | $ (752,000) |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate swaps, notional amount | 109,000,000 | |
Unrealized losses expected to be reclassified | (1,100,000) | |
Interest Rate Swap | Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized losses | 1,300,000 | 79,000 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized losses | (246,000) | (5,545,000) |
Interest rate swaps, notional amount | $ 109,000,000 | $ 109,000,000 |
DERIVATIVES - Summary of intere
DERIVATIVES - Summary of interest-rate swaps designated as cash flow hedges (Details) - Interest Rate Swap - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amounts | $ 109,000,000 | |
Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized losses | 1,300,000 | $ 79,000 |
Other Liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized losses | 1,500,000 | 5,600,000 |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amounts | $ 109,000,000 | $ 109,000,000 |
Weighted average pay rates | 1.46% | 1.46% |
Weighted average receive rates | 0.17% | 0.23% |
Weighted average maturity (in years) | 5 years 3 months 18 days | 6 years 2 months 12 days |
Unrealized losses | $ (246,000) | $ (5,545,000) |
DERIVATIVES - Summary of effect
DERIVATIVES - Summary of effect of cash flow hedge accounting on AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (1) | $ (246) | $ (3,986) |
Amount of Gain (Loss) Reclassified from OCI to Income/(Expense) | $ (1,427) | $ (752) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME - Changes in accumulated other comprehensive income by component, net of tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 205,600 | $ 237,620 |
Other comprehensive income (loss) before reclassification | (500) | (1,139) |
Amounts reclassified from accumulated other comprehensive income | 1,159 | 625 |
Total other comprehensive income (loss) | 659 | (514) |
Balance at end of period | 429,471 | 205,600 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,031) | (517) |
Total other comprehensive income (loss) | 659 | (514) |
Balance at end of period | (372) | (1,031) |
Gains and Losses on Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (3,986) | (360) |
Other comprehensive income (loss) before reclassification | (2,733) | (4,167) |
Amounts reclassified from accumulated other comprehensive income | 1,007 | 541 |
Total other comprehensive income (loss) | 3,740 | (3,626) |
Balance at end of period | (246) | (3,986) |
Unrealized Gains and Losses on Available-for-sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 4,208 | 916 |
Other comprehensive income (loss) before reclassification | (3,118) | 3,343 |
Amounts reclassified from accumulated other comprehensive income | 1 | (51) |
Total other comprehensive income (loss) | (3,117) | 3,292 |
Balance at end of period | 1,091 | 4,208 |
Defined Benefit Pension Items | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (1,253) | (1,073) |
Other comprehensive income (loss) before reclassification | (115) | (315) |
Amounts reclassified from accumulated other comprehensive income | 151 | 135 |
Total other comprehensive income (loss) | 36 | (180) |
Balance at end of period | $ (1,217) | $ (1,253) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME- Summary of reclassification out of each component of accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized (loss) gain on securities available for sale: Realized (losses) gains on securities available for sale | $ (1) | $ 69 | |
Interest (expense) income | 42,949 | 39,068 | |
Compensation and employee benefits | 25,206 | 22,639 | |
Income tax expense | (9,618) | 7,866 | |
Total reclassification for the period, net of tax | $ (36,342) | (36,342) | (31,506) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense | 479 | 247 | |
Total reclassification for the period, net of tax | (1,159) | (625) | |
Unrealized (loss) gain on securities available for sale: Realized (losses) gains on securities available for sale | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized (loss) gain on securities available for sale: Realized (losses) gains on securities available for sale | (1) | 69 | |
Gains and (losses) on cash flow hedges: | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest (expense) income | (1,427) | (752) | |
Defined Benefit Pension Items | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Compensation and employee benefits | $ (210) | $ (189) |
FAIR VALUE OF ASSETS AND LIAB_3
FAIR VALUE OF ASSETS AND LIABILITIES - Summary of assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | $ 324,892 | $ 244,587 | |
Real estate owned | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Real estate held for sale | $ 624 | ||
U.S. Treasury Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 36,832 | 10,000 | |
Domestic Corporate Bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 87,619 | 59,341 | |
U.S. Government agency obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 23,329 | 19,675 | |
Obligations issued by U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 20,324 | 24,795 | |
Residential one-to-four family | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 114,401 | 72,716 | |
Multifamily | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 35,916 | 58,060 | |
Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 6,471 | ||
Measured on a recurring basis: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 324,892 | ||
Financial Liabilities | 246 | 5,545 | |
Nonfinancial assets | (244,587) | ||
Measured on a recurring basis: | U.S. Treasury Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 36,832 | 10,000 | |
Measured on a recurring basis: | Domestic Corporate Bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 87,619 | 59,341 | |
Measured on a recurring basis: | U.S. Government agency obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 23,329 | 19,675 | |
Measured on a recurring basis: | Obligations issued by U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 20,324 | 24,795 | |
Measured on a recurring basis: | Residential one-to-four family | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 114,401 | 72,716 | |
Measured on a recurring basis: | Multifamily | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 35,916 | 58,060 | |
Measured on a recurring basis: | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 6,471 | ||
Measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 54,449 | ||
Financial Liabilities | 0 | 0 | |
Nonfinancial assets | (22,417) | ||
Measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets | U.S. Treasury Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 36,832 | 10,000 | |
Measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets | Domestic Corporate Bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 0 | 0 | |
Measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets | U.S. Government agency obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 17,617 | 12,417 | |
Measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets | Obligations issued by U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 0 | 0 | |
Measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets | Residential one-to-four family | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 0 | 0 | |
Measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets | Multifamily | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 0 | 0 | |
Measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 0 | ||
Measured on a recurring basis: | Significant Other Observable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 270,443 | ||
Financial Liabilities | 246 | 5,545 | |
Nonfinancial assets | (222,170) | ||
Measured on a recurring basis: | Significant Other Observable Inputs | U.S. Treasury Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 0 | 0 | |
Measured on a recurring basis: | Significant Other Observable Inputs | Domestic Corporate Bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 87,619 | 59,341 | |
Measured on a recurring basis: | Significant Other Observable Inputs | U.S. Government agency obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 5,712 | 7,258 | |
Measured on a recurring basis: | Significant Other Observable Inputs | Obligations issued by U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 20,324 | 24,795 | |
Measured on a recurring basis: | Significant Other Observable Inputs | Residential one-to-four family | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 114,401 | 72,716 | |
Measured on a recurring basis: | Significant Other Observable Inputs | Multifamily | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 35,916 | 58,060 | |
Measured on a recurring basis: | Significant Other Observable Inputs | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 6,471 | ||
Measured on a recurring basis: | Significant Unobservable Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 0 | ||
Financial Liabilities | 0 | 0 | |
Nonfinancial assets | 0 | ||
Measured on a recurring basis: | Significant Unobservable Inputs | U.S. Treasury Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 0 | 0 | |
Measured on a recurring basis: | Significant Unobservable Inputs | Domestic Corporate Bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 0 | 0 | |
Measured on a recurring basis: | Significant Unobservable Inputs | U.S. Government agency obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 0 | 0 | |
Measured on a recurring basis: | Significant Unobservable Inputs | Obligations issued by U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 0 | 0 | |
Measured on a recurring basis: | Significant Unobservable Inputs | Residential one-to-four family | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 0 | 0 | |
Measured on a recurring basis: | Significant Unobservable Inputs | Multifamily | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | 0 | 0 | |
Measured on a recurring basis: | Significant Unobservable Inputs | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale: | $ 0 | ||
Measured on a nonrecurring basis: | Assets held for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonfinancial assets | 5,295 | ||
Measured on a nonrecurring basis: | Real estate owned | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonfinancial assets | 624 | ||
Measured on a nonrecurring basis: | Quoted Prices in Active Markets for Identical Assets | Assets held for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonfinancial assets | 0 | ||
Measured on a nonrecurring basis: | Quoted Prices in Active Markets for Identical Assets | Real estate owned | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonfinancial assets | 0 | ||
Measured on a nonrecurring basis: | Significant Other Observable Inputs | Assets held for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonfinancial assets | 5,295 | ||
Measured on a nonrecurring basis: | Significant Other Observable Inputs | Real estate owned | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonfinancial assets | 624 | ||
Measured on a nonrecurring basis: | Significant Unobservable Inputs | Assets held for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonfinancial assets | 0 | ||
Measured on a nonrecurring basis: | Significant Unobservable Inputs | Real estate owned | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonfinancial assets | $ 0 |
FAIR VALUE OF ASSETS AND LIAB_4
FAIR VALUE OF ASSETS AND LIABILITIES - Narrative (Details) $ in Thousands | 1 Months Ended |
Mar. 31, 2020USD ($) | |
Certain premises and real estate owned | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Asset impairment charges | $ 12,800 |
Real estate held for sale | 5,300 |
Real estate owned | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Asset impairment charges | 1,400 |
Real estate held for sale | $ 624 |
FAIR VALUE OF ASSETS AND LIAB_5
FAIR VALUE OF ASSETS AND LIABILITIES - Summary of fair value of assets and liabilities not carried at fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets | ||
Cash and due from banks | $ 193,446 | $ 316,445 |
Securities held-to-maturity | 23,281 | 7,005 |
Loans, net | 1,273,184 | 1,267,114 |
Financial liabilities | ||
Time deposits | 473,795 | 717,431 |
Federal Home Loan advances | 185,500 | 329,400 |
Quoted Prices in Active Markets for Identical Assets | ||
Financial assets | ||
Securities held-to-maturity | 0 | 0 |
Loans, net | 0 | 0 |
Financial liabilities | ||
Time deposits | 0 | 0 |
Federal Home Loan advances | 0 | 0 |
Significant Other Observable Inputs | ||
Financial assets | ||
Securities held-to-maturity | 22,849 | 6,978 |
Loans, net | 0 | 0 |
Financial liabilities | ||
Time deposits | 470,732 | 725,110 |
Federal Home Loan advances | 182,795 | 336,377 |
Significant Unobservable Inputs | ||
Financial assets | ||
Securities held-to-maturity | 0 | 0 |
Loans, net | 1,266,799 | 1,290,740 |
Financial liabilities | ||
Time deposits | 0 | 0 |
Federal Home Loan advances | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fixed rate | ||
Other Commitments [Line Items] | ||
Undispersed loan commitments | $ 1,847 | $ 5,517 |
Variable rate | ||
Other Commitments [Line Items] | ||
Undispersed loan commitments | 14,456 | 23,144 |
Undisbursed home equity credit lines | ||
Other Commitments [Line Items] | ||
Undispersed loan commitments | 33,265 | 33,786 |
Undisbursed construction credit lines | ||
Other Commitments [Line Items] | ||
Undispersed loan commitments | 17,700 | 16,264 |
Undisbursed commercial credit lines | ||
Other Commitments [Line Items] | ||
Undispersed loan commitments | 1,792 | 1,594 |
Performance standby letters of credit | ||
Other Commitments [Line Items] | ||
Undispersed loan commitments | 671 | 671 |
Overdraft protection credit lines | ||
Other Commitments [Line Items] | ||
Undispersed loan commitments | 19,038 | 10,548 |
Commitments to purchase investments | ||
Other Commitments [Line Items] | ||
Undispersed loan commitments | $ 1,000 | $ 0 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS AND OTHER INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net loss on real estate owned | $ (6) | $ (1,390) |
Other Income | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue from Contracts with Customers | 993 | 743 |
Service charges on deposits | Other Income | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue from Contracts with Customers | 954 | 722 |
Interchange income | Other Income | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue from Contracts with Customers | 33 | 21 |
Gain (Loss) On REO | Other Income | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue from Contracts with Customers | $ 6 | $ 0 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net loss applicable to common shares | $ (36,342) | $ (36,342) | $ (31,506) |
Earnings Per Share, Basic and Diluted [Abstract] | |||
Average number of common shares outstanding (in shares) | 13,206,308 | ||
Less: Average unallocated ESOP shares (in shares) | 1,035,258 | ||
Average number of common shares outstanding used to calculate basic (in shares) | 12,171,050 | ||
Average number of common shares outstanding used to calculate basic earnings per common share, diluted (in shares) | 12,171,050 | ||
Common stock equivalents | 0 | ||
Earnings per common share, basic (in dollars per share) | $ (2.99) | ||
Earnings per common share, diluted (in dollars per share) | $ (2.99) |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Amount | ||
Common equity tier 1 | $ 293,349 | $ 206,258 |
Tier 1 capital | 293,349 | 206,258 |
Total capital | 307,624 | 219,262 |
Tier 1 (leverage) capital | $ 293,349 | $ 206,258 |
Ratio | ||
Common equity tier 1 | 0.2574 | 0.1993 |
Tier 1 capital | 0.2574 | 0.1993 |
Total capital | 0.2699 | 0.2118 |
Tier 1 (leverage) capital | 0.1500 | 0.1072 |
Amount | ||
Common equity tier 1 | $ 51,292 | $ 46,578 |
Tier 1 capital | 68,389 | 62,104 |
Total capital | 91,186 | 82,806 |
Tier 1 (leverage) capital | $ 78,201 | $ 76,934 |
Ratio | ||
Common equity tier 1 | 0.0450 | 0.0450 |
Tier 1 capital | 0.0600 | 0.0600 |
Total capital | 0.0800 | 0.0800 |
Tier 1 (leverage) capital | 0.0400 | 0.0400 |
Amount | ||
Common equity tier 1 | $ 79,787 | $ 72,455 |
Tier 1 capital | 96,885 | 87,981 |
Total capital | $ 119,681 | $ 108,682 |
Ratio | ||
Common equity tier 1 | 0.0700 | 0.0700 |
Tier 1 capital | 0.0850 | 0.0850 |
Total capital | 0.1050 | 0.1050 |
Amount | ||
Common equity tier 1 | $ 74,088 | $ 67,279 |
Tier 1 capital | 91,186 | 82,806 |
Total capital | 113,982 | 103,507 |
Tier 1 (leverage) capital | $ 97,752 | $ 96,168 |
Ratio | ||
Common equity tier 1 | 0.0650 | 0.0650 |
Tier 1 capital | 0.0800 | 0.0800 |
Total capital | 0.1000 | 0.1000 |
Tier 1 (leverage) capital | 0.0500 | 0.0500 |
CONDENSED FINANCIAL STATEMENT_3
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | |||
Cash and cash equivalents | $ 193,446 | $ 316,445 | |
Other assets | 8,609 | 13,234 | |
Total assets | 1,914,211 | 1,942,546 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Total liabilities | 1,484,740 | 1,736,946 | |
Total stockholders’ equity | 429,471 | 205,600 | $ 237,620 |
Total liabilities and shareholders’ equity | 1,914,211 | 1,942,546 | |
Parent Company | |||
ASSETS | |||
Cash and cash equivalents | 114,331 | 329 | |
Investment in banking subsidiary | 293,414 | 205,227 | |
ESOP loan receivable | 21,837 | 0 | |
Other assets | 245 | 164 | |
Total assets | 429,827 | 205,720 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Total liabilities | 356 | 120 | |
Total stockholders’ equity | 429,471 | 205,600 | |
Total liabilities and shareholders’ equity | $ 429,827 | $ 205,720 |
CONDENSED FINANCIAL STATEMENT_4
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses: | |||
Contribution to Blue Foundry Charitable Foundation | $ 9,000 | $ 0 | |
Goodwill impairment | 0 | 15,460 | |
Income tax (benefit) expense | 9,618 | (7,866) | |
Net loss | $ (36,342) | (36,342) | (31,506) |
Parent Company | |||
Income: | |||
Interest on ESOP loan receivable | 343 | 0 | |
Other income | 23 | 16 | |
Total income | 366 | 16 | |
Expenses: | |||
Contribution to Blue Foundry Charitable Foundation | 9,000 | 0 | |
Goodwill impairment | 0 | 13,100 | |
Other expenses | 719 | 66 | |
Costs and Expenses, Total | 9,719 | 13,166 | |
Loss before income tax (benefit) expense | (9,353) | (13,150) | |
Income tax (benefit) expense | (59) | 98 | |
Loss before undistributed earnings of subsidiary | (9,294) | (13,248) | |
Equity in undistributed earnings of banking subsidiary | (27,048) | (18,258) | |
Net loss | $ (36,342) | $ (31,506) |
CONDENSED FINANCIAL STATEMENT_5
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net loss | $ (36,342) | $ (36,342) | $ (31,506) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Issuance of common shares donated to Blue Foundry Charitable Foundation | 7,500 | 0 | |
Goodwill impairment | 0 | 15,460 | |
ESOP expense | 1,274 | 0 | |
Increase in other assets | 2,134 | (997) | |
Increase in other liabilities | 4,325 | 707 | |
Net cash used by operating activities | (14,142) | (1,252) | |
Cash flows from investing activities | |||
Net cash used in investing activities | (105,334) | 101,393 | |
Cash flows from financing activities | |||
Proceeds from issuance of common shares | 250,780 | 0 | |
Net Cash Provided by (Used in) Financing Activities | (3,523) | 92,270 | |
Net increase (decrease) in cash and cash equivalents | (122,999) | 192,411 | |
Cash and cash equivalents at beginning of period | 316,445 | 124,034 | |
Cash and cash equivalents at end of period | 193,446 | 193,446 | 316,445 |
Parent Company | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net loss | (36,342) | (31,506) | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed earnings of subsidiary | 27,048 | 18,258 | |
Issuance of common shares donated to Blue Foundry Charitable Foundation | 7,500 | 0 | |
Goodwill impairment | 0 | 13,100 | |
ESOP expense | 361 | 0 | |
Increase in other assets | (82) | (5) | |
Increase in other liabilities | 237 | 55 | |
Net cash used by operating activities | (1,278) | (98) | |
Cash flows from investing activities | |||
Capital contribution to banking subsidiary | (136,481) | 0 | |
Loan to ESOP | (22,818) | 0 | |
Repayment of ESOP loan | 981 | 0 | |
Net cash used in investing activities | (158,318) | 0 | |
Cash flows from financing activities | |||
Proceeds from issuance of common shares | 273,598 | 0 | |
Net Cash Provided by (Used in) Financing Activities | 273,598 | 0 | |
Net increase (decrease) in cash and cash equivalents | 114,002 | (98) | |
Cash and cash equivalents at beginning of period | 329 | 427 | |
Cash and cash equivalents at end of period | $ 114,331 | $ 114,331 | $ 329 |