Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | BRIDGE BANCORP INC | |
Entity Central Index Key | 0000846617 | |
Trading Symbol | BDGE | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 19,853,386 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 68,773 | $ 142,145 |
Interest-bearing deposits with banks | 31,684 | 153,223 |
Total cash and cash equivalents | 100,457 | 295,368 |
Securities available for sale, at fair value | 707,451 | 680,886 |
Securities held to maturity (fair value of $147,633 and $156,792, respectively) | 149,512 | 160,163 |
Total securities | 856,963 | 841,049 |
Securities, restricted | 28,068 | 24,028 |
Loans held for investment | 3,391,104 | 3,275,811 |
Allowance for loan losses | (31,784) | (31,418) |
Loans, net | 3,359,320 | 3,244,393 |
Premises and equipment, net | 34,478 | 35,008 |
Operating lease right-of-use assets | 37,621 | |
Accrued interest receivable | 13,057 | 11,236 |
Goodwill | 105,950 | 105,950 |
Other intangible assets | 4,150 | 4,374 |
Prepaid pension | 10,373 | 10,263 |
Bank owned life insurance | 90,265 | 89,712 |
Other real estate owned | 175 | 175 |
Other assets | 34,332 | 39,188 |
Total assets | 4,675,209 | 4,700,744 |
Liabilities | ||
Demand deposits | 1,313,947 | 1,448,605 |
Savings, NOW and money market deposits | 2,130,808 | 2,108,297 |
Certificates of deposit of $100,000 or more | 218,682 | 207,087 |
Other time deposits | 62,027 | 122,404 |
Total deposits | 3,725,464 | 3,886,393 |
Repurchase agreements | 721 | 539 |
Federal Home Loan Bank ("FHLB") advances | 330,217 | 240,433 |
Subordinated debentures, net | 78,815 | 78,781 |
Operating lease liabilities | 40,454 | |
Other liabilities and accrued expenses | 34,535 | 40,768 |
Total liabilities | 4,210,206 | 4,246,914 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, par value $.01 per share (2,000,000 shares authorized; none issued) | ||
Common stock, par value $.01 per share (40,000,000 shares authorized; 19,871,469 and 19,815,680 shares issued, respectively; and 19,847,705 and 19,790,884 shares outstanding, respectively) | 199 | 198 |
Surplus | 352,454 | 352,093 |
Retained earnings | 125,765 | 117,432 |
Treasury stock at cost, 23,764 and 24,796 shares, respectively | (786) | (781) |
Total stockholders' equity before accumulated other comprehensive income (loss) | 477,632 | 468,942 |
Accumulated other comprehensive loss, net of income taxes | (12,629) | (15,112) |
Total stockholders' equity | 465,003 | 453,830 |
Total liabilities and stockholders' equity | $ 4,675,209 | $ 4,700,744 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets | ||
Securities held to maturity, fair value (in dollars) | $ 147,633 | $ 156,792 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 19,871,469 | 19,815,680 |
Common stock, shares outstanding | 19,847,705 | 19,790,884 |
Treasury Stock, shares | 23,764 | 24,796 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest income: | ||
Loans (including fee income) | $ 37,612 | $ 35,613 |
Mortgage-backed securities, CMOs and other asset-backed securities | 4,789 | 3,724 |
U.S. GSE securities | 192 | 279 |
State and municipal obligations | 627 | 812 |
Corporate bonds | 336 | 355 |
Deposits with banks | 544 | 90 |
Other interest and dividend income | 415 | 491 |
Total interest income | 44,515 | 41,364 |
Interest expense: | ||
Savings, NOW and money market deposits | 6,369 | 2,514 |
Certificates of deposit of $100,000 or more | 983 | 517 |
Other time deposits | 562 | 195 |
Federal funds purchased and repurchase agreements | 45 | 606 |
FHLB advances | 1,098 | 1,858 |
Subordinated debentures | 1,135 | 1,135 |
Total interest expense | 10,192 | 6,825 |
Net interest income | 34,323 | 34,539 |
Provision for loan losses | 600 | 800 |
Net interest income after provision for loan losses | 33,723 | 33,739 |
Non-interest income: | ||
Service charges and other fees | 2,428 | 2,163 |
Title fee income | 306 | 505 |
Gain on sale of Small Business Administration ("SBA") loans | 217 | 371 |
BOLI income | 553 | 546 |
Other operating income | 1,714 | 528 |
Total non-interest income | 5,218 | 4,113 |
Non-interest expense: | ||
Salaries and employee benefits | 13,280 | 12,812 |
Occupancy and equipment | 3,531 | 3,243 |
Technology and communications | 1,789 | 1,643 |
Marketing and advertising | 1,023 | 962 |
Professional services | 757 | 1,212 |
FDIC assessments | 238 | 464 |
Amortization of other intangible assets | 213 | 246 |
Other operating expenses | 1,768 | 2,016 |
Total non-interest expense | 22,599 | 22,598 |
Income before income taxes | 16,342 | 15,254 |
Income tax expense | 3,415 | 3,181 |
Net income | $ 12,927 | $ 12,073 |
Basic earnings per share (in dollars per share) | $ 0.65 | $ 0.61 |
Diluted earnings per share (in dollars per share) | $ 0.65 | $ 0.61 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Statements of Comprehensive Income (unaudited) | ||
Net income | $ 12,927 | $ 12,073 |
Other comprehensive income (loss): | ||
Change in unrealized net gains (losses) on securities available for sale, net of reclassifications and deferred income taxes | 3,918 | (6,088) |
Adjustment to pension liability, net of reclassifications and deferred income taxes | 90 | 67 |
Unrealized (losses) gains on cash flow hedges, net of reclassifications and deferred income taxes | (1,525) | 2,051 |
Total other comprehensive income (loss) | 2,483 | (3,970) |
Comprehensive income | $ 15,410 | $ 8,103 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity (unaudited) - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2017 | $ 197 | $ 347,691 | $ 96,547 | $ (296) | $ (14,939) | $ 429,200 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 12,073 | 12,073 | ||||
Shares issued under the dividend reinvestment plan | 232 | 232 | ||||
Stock awards granted and distributed | 1 | (307) | 306 | |||
Stock awards forfeited | 20 | (20) | ||||
Repurchase of surrendered stock from vesting of restricted stock awards | (426) | (426) | ||||
Share based compensation expense | 784 | 784 | ||||
Cash dividend declared, $0.23 per share | (4,570) | (4,570) | ||||
Other comprehensive income (loss), net of deferred income taxes | (3,970) | (3,970) | ||||
Balance at Mar. 31, 2018 | 198 | 348,420 | 104,050 | (436) | (18,909) | 433,323 |
Balance at Dec. 31, 2018 | 198 | 352,093 | 117,432 | (781) | (15,112) | 453,830 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 12,927 | 12,927 | ||||
Shares issued under the dividend reinvestment plan | 198 | 198 | ||||
Stock awards granted and distributed | 1 | (791) | 790 | |||
Repurchase of surrendered stock from vesting of restricted stock awards | (795) | (795) | ||||
Share based compensation expense | 954 | 954 | ||||
Cash dividend declared, $0.23 per share | (4,594) | (4,594) | ||||
Other comprehensive income (loss), net of deferred income taxes | 2,483 | 2,483 | ||||
Balance at Mar. 31, 2019 | $ 199 | $ 352,454 | $ 125,765 | $ (786) | $ (12,629) | $ 465,003 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders Equity (Parentheticals) (unaudited) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Statements of Stockholders Equity (unaudited) | ||
Cash dividend declared (in dollars per share) | $ 0.23 | $ 0.23 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 12,927 | $ 12,073 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 600 | 800 |
Depreciation and amortization of premises and equipment | 1,048 | 933 |
Net (accretion) and other amortization | (287) | (1,033) |
Net amortization on securities | 648 | 1,302 |
Increase in cash surrender value of bank owned life insurance | (553) | (546) |
Amortization of intangible assets | 213 | 246 |
Share based compensation expense | 954 | 784 |
Increase in accrued interest receivable | (1,821) | (255) |
SBA loans originated for sale | (3,188) | (4,281) |
Proceeds from sale of the guaranteed portion of SBA loans | 3,454 | 4,744 |
Gain on sale of the guaranteed portion of SBA loans | (217) | (371) |
Decrease in other assets | 4,006 | 1,253 |
Decrease in accrued expenses and other liabilities | (5,619) | (479) |
Net cash provided by operating activities | 12,165 | 15,170 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (40,771) | (525) |
Purchases of securities, restricted | (14,850) | (342,405) |
Redemption of securities, restricted | 10,810 | 341,559 |
Maturities, calls and principal payments of securities available for sale | 19,270 | 24,715 |
Maturities, calls and principal payments of securities held to maturity | 10,470 | 4,558 |
Net increase in loans | (115,341) | (98,217) |
Purchase of premises and equipment | (518) | (1,320) |
Net cash used in investing activities | (130,930) | (71,635) |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (160,921) | 96,712 |
Net decrease in federal funds purchased | (50,000) | |
Net increase in FHLB advances | 89,784 | 18,787 |
Net increase (decrease) in repurchase agreements | 182 | (5) |
Net proceeds from issuance of common stock | 198 | 232 |
Repurchase of surrendered stock from vesting of restricted stock awards | (795) | (426) |
Cash dividends paid | (4,594) | (4,570) |
Net cash (used in) provided by financing activities | (76,146) | 60,730 |
Net (decrease) increase in cash and cash equivalents | (194,911) | 4,265 |
Cash and cash equivalents at beginning of period | 295,368 | 94,747 |
Cash and cash equivalents at end of period | 100,457 | 99,012 |
Cash paid for: | ||
Interest | 11,126 | 7,963 |
Income taxes | $ 49 | 261 |
Non-cash investing and financing activities: | ||
Transfers from portfolio loans to other real estate owned | $ 175 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2019 | |
BASIS OF PRESENTATION. | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Bridge Bancorp, Inc. (the “Holding Company”), is a bank holding company incorporated under the laws of the State of New York. The Holding Company’s business consists of the operations of its wholly-owned subsidiary, BNB Bank (the “Bank”). The Bank’s operations include its real estate investment trust subsidiary, Bridgehampton Community, Inc.; a financial title insurance subsidiary, Bridge Abstract LLC (“Bridge Abstract”); and an investment services subsidiary, Bridge Financial Services, Inc. (“Bridge Financial Services”). The unaudited consolidated financial statements presented in this Quarterly Report on Form 10-Q include the collective results of the Holding Company and its wholly-owned subsidiary, the Bank, which are collectively herein referred to as “we”, “us”, “our” and the “Company.” The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. The unaudited consolidated financial statements included herein reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. Such estimates are subject to change in the future as additional information becomes available or previously existing circumstances are modified. Actual future results could differ significantly from those estimates. The annualized results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain reclassifications have been made to prior year amounts, and the related discussion and analysis, to conform to the current year presentation. These reclassifications did not have an impact on net income or total stockholders' equity. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10‑K for the year ended December 31, 2018. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
EARNINGS PER SHARE. | |
EARNINGS PER SHARE | 2. EARNINGS PER SHARE Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 260‑10‑45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards (“RSAs”) and certain restricted stock units (“RSUs”) granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities. The following table presents the computation of EPS for the three months ended March 31, 2019 and 2018: Three Months Ended March 31, (In thousands, except per share data) 2019 2018 Net income $ 12,927 $ 12,073 Dividends paid on and earnings allocated to participating securities (277) (253) Income attributable to common stock $ 12,650 $ 11,820 Weighted average common shares outstanding, including participating securities 19,926 19,834 Weighted average participating securities (426) (421) Weighted average common shares outstanding 19,500 19,413 Basic earnings per common share $ 0.65 $ 0.61 Income attributable to common stock $ 12,650 $ 11,820 Weighted average common shares outstanding 19,500 19,413 Incremental shares from assumed conversions of options and restricted stock units 26 25 Weighted average common and equivalent shares outstanding 19,526 19,438 Diluted earnings per common share $ $ 0.61 There were 110,660 stock options outstanding at March 31, 2019 that were not included in the computation of diluted earnings per share for the three months ended March 31, 2019 because the options' exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. There were 47,393 stock options outstanding at March 31, 2018 that were not included in the computation of diluted earnings per share for the three months ended March 31, 2018 because the options' exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. There were 22,305 and 21,693 RSUs that were antidilutive for the three months ended March 31, 2019 and 2018, respectively. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2019 | |
STOCK-BASED COMPENSATION PLANS. | |
STOCK-BASED COMPENSATION PLANS | 3. STOCK-BASED COMPENSATION PLANS The Bridge Bancorp, Inc. 2012 Stock-Based Incentive Plan (“2012 SBIP”) provides for the grant of stock-based and other incentive awards to officers, employees and directors of the Company. The 2012 SBIP superseded the Bridge Bancorp, Inc. 2006 Stock-Based Incentive Plan. The number of shares of common stock of Bridge Bancorp, Inc. available for stock-based awards under the 2012 SBIP is 525,000 plus 278,385 shares that were remaining under the 2006 Stock-Based Incentive Plan. Of the total 803,385 shares of common stock approved for issuance under the 2012 SBIP, 163,472 shares remain available for issuance at March 31, 2019, including shares that may be granted in the form of stock options, RSAs, or RSUs. The Compensation Committee of the Board of Directors determines awards under the 2012 SBIP. The Company accounts for the 2012 SBIP under FASB ASC No. 718. Stock Options Stock options may be either incentive stock options, which bestow certain tax benefits on the optionee, or non-qualified stock options, not qualifying for such benefits. All options have an exercise price that is not less than the market value of the Company's common stock on the date of the grant. The fair value of each option granted is estimated on the date of the grant using the Black-Scholes option-pricing model. The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of the Company's common stock as of the exercise or reporting date. During the three months ended March 31, 2019 and 2018, in accordance with the Long Term Incentive Plan (“LTI Plan”) for Named Executive Officers (“NEOs”), the Company granted 63,267 and 47,393 stock options, respectively, with an exercise price set to equal a 10.0% premium over the grant date stock price. All of the stock options granted vest ratably over three years. The estimated weighted-average grant-date fair value of all stock options granted in the three months ended March 31, 2019 and 2018 was $5.05 and $6.52 per stock option, respectively, using the Black-Scholes option-pricing model with assumptions as follows: Three Months Ended March 31, 2019 2018 Dividend yield 2.86 % 2.80 % Expected volatility 23.80 27.53 Risk-free interest rate 2.52 2.67 Expected option life 6.0 years 6.5 years Compensation expense attributable to stock options was $39 thousand and $13 thousand for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, there was $499 thousand of total unrecognized compensation cost related to unvested stock options. The cost is expected to be recognized over a weighted-average period of 2.5 years. The following table summarizes the status of the Company's stock options as of and for the three months ended March 31, 2019: Weighted Weighted Average Number Average Remaining Aggregate of Exercise Contractual Intrinsic (Dollars in thousands, except per share amounts) Options Price Life Value Outstanding, January 1, 2019 47,393 $ 36.19 Granted 63,267 35.35 Outstanding, March 31, 2019 110,660 35.71 9.4 years $ — Vested and Exercisable, March 31, 2019 15,795 36.19 8.9 years — Number of Exercise Range of Exercise Prices Options Price 63,267 $ 35.35 47,393 $ 36.19 110,660 Restricted Stock Awards The Company's RSAs are shares of the Company's common stock that are forfeitable and are subject to restrictions on transfer prior to the vesting date. RSAs are forfeited if the award holder departs the Company before vesting. RSAs carry dividend and voting rights from the date of grant. The vesting of time-vested RSAs depends upon the award holder continuing to render services to the Company. The Company's performance-based RSAs vest subject to the achievement of the Company's 2018 corporate goals. The following table summarizes the unvested RSA activity for the three months ended March 31, 2019: Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2019 324,882 $ 29.13 Granted 74,252 32.17 Vested (83,184) 27.02 Forfeited (1,185) 32.53 Unvested, March 31, 2019 314,765 30.39 During the three months ended March 31, 2019, the Company granted a total of 74,252 RSAs. Of the 74,252 RSAs granted, 49,925 time-vested RSAs vest ratably over five years and 24,327 time-vested RSAs vest ratably over three years. During the three months ended March 31, 2018, the Company granted a total of 77,682 RSAs. Of the 77,682 RSAs granted, 39,750 time-vested RSAs vest ratably over five years, 12,815 time-vested RSAs vest ratably over three years, and 25,117 performance-based RSAs vest ratably over two years, subject to the achievement of the Company's 2018 corporate goals. As of March 31, 2019, there were 314,765 unvested RSAs consisting of 303,114 time-vested RSAs and 11,651 performance-based RSAs. Compensation expense attributable to RSAs was $602 thousand and $536 thousand for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, there was $6.7 million of total unrecognized compensation cost related to non-vested RSAs. The cost is expected to be recognized over a weighted-average period of 3.5 years. Restricted Stock Units Long Term Incentive Plan RSUs represent an obligation to deliver shares to an employee at a future date if certain vesting conditions are met. RSUs are subject to a time-based vesting schedule, or the satisfaction of performance conditions, and are settled in shares of the Company's common stock. RSUs do not provide voting rights and RSUs may provide dividend equivalent rights from the date of grant. During the three months ended March 31, 2019, in accordance with the LTI Plan for NEOs, the Company granted 22,305 RSUs. Of the 22,305 RSUs granted, 13,255 time-vested RSUs vest ratably over five years and 9,050 performance-based RSUs vest subject to the achievement of the Company's three-year corporate goal for the three-year period ending December 31, 2021. The following table summarizes the unvested NEO RSU activity for the three months ended March 31, 2019: Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2019 79,238 $ 27.36 Granted 22,305 33.42 Reinvested dividends 642 27.36 Forfeited (16,184) 23.34 Vested (2,573) 32.90 Unvested, March 31, 2019 83,428 29.59 Compensation expense attributable to LTI Plan RSUs was $170 thousand and $101 thousand for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, there was $1.9 million of total unrecognized compensation cost related to non-vested RSUs. The cost is expected to be recognized over a weighted-average period of 3.2 years. Directors Plan In April 2009, the Company adopted a Directors Deferred Compensation Plan (“Directors Plan”). Under the Directors Plan, independent directors may elect to defer all or a portion of their annual retainer fee in the form of RSUs. In addition, directors receive a non-election retainer in the form of RSUs. These RSUs vest ratably over one year and have dividend rights but no voting rights. In connection with the Directors Plan, the Company recorded expense of $143 thousand and $135 thousand for the three months ended March 31, 2019 and 2018, respectively. Employee Stock Purchase Plan In May 2018, the Board of Directors adopted, and stockholders approved the Employee Stock Purchase Plan (“ESPP”). A total of 1,000,000 shares of the Company’s common stock have been initially authorized for issuance under the ESPP. Subject to any plan limitations, the ESPP allows eligible employees to contribute, normally through payroll deductions, up to $25 thousand for the purchase of the Company’s common stock at a discounted price per share for any calendar year. The current offering period is from January 1, 2019 through June 15, 2019. During the three months ended March 31, 2019 and 2018, no shares of common stock were purchased and no expense was recorded related to the ESPP. |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2019 | |
SECURITIES. | |
SECURITIES | 4. SECURITIES The following tables summarize the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio at March 31, 2019 and December 31, 2018 and the corresponding amounts of unrealized gains and losses therein: March 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: U.S. GSE securities $ 39,971 $ — $ (496) $ 39,475 State and municipal obligations 42,699 538 (72) 43,165 U.S. GSE residential mortgage-backed securities 98,348 122 (1,858) 96,612 U.S. GSE residential collateralized mortgage obligations 367,763 1,291 (4,118) 364,936 U.S. GSE commercial mortgage-backed securities 7,050 5 — 7,055 U.S. GSE commercial collateralized mortgage obligations 92,334 — (1,931) 90,403 Other asset backed securities 24,250 — (1,152) 23,098 Corporate bonds 46,000 — (3,293) 42,707 Total available for sale 718,415 1,956 (12,920) 707,451 Held to maturity: State and municipal obligations 45,284 504 (35) 45,753 U.S. GSE residential mortgage-backed securities 9,309 — (234) 9,075 U.S. GSE residential collateralized mortgage obligations 47,204 291 (746) 46,749 U.S. GSE commercial mortgage-backed securities 18,909 20 (393) 18,536 U.S. GSE commercial collateralized mortgage obligations 28,806 — (1,286) 27,520 Total held to maturity 149,512 815 (2,694) 147,633 Total securities $ 867,927 $ 2,771 $ (15,614) $ 855,084 December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: U.S. GSE securities $ 29,997 $ — $ (947) $ 29,050 State and municipal obligations 40,980 105 (354) 40,731 U.S. GSE residential mortgage-backed securities 96,536 38 (3,036) 93,538 U.S. GSE residential collateralized mortgage obligations 362,905 826 (5,954) 357,777 U.S. GSE commercial mortgage-backed securities 3,536 — (28) 3,508 U.S. GSE commercial collateralized mortgage obligations 93,177 — (2,539) 90,638 Other asset-backed securities 24,250 — (1,031) 23,219 Corporate bonds 46,000 — (3,575) 42,425 Total available for sale 697,381 969 (17,464) 680,886 Held to maturity: State and municipal obligations 53,540 290 (276) 53,554 U.S. GSE residential mortgage-backed securities 9,688 — (336) 9,352 U.S. GSE residential collateralized mortgage obligations 48,244 163 (1,130) 47,277 U.S. GSE commercial mortgage-backed securities 19,098 4 (620) 18,482 U.S. GSE commercial collateralized mortgage obligations 29,593 — (1,466) 28,127 Total held to maturity 160,163 457 (3,828) 156,792 Total securities $ 857,544 $ 1,426 $ (21,292) $ 837,678 The following table summarizes the amortized cost and estimated fair value by contractual maturity of the available for sale and held to maturity investment securities portfolio at March 31, 2019. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2019 Amortized Estimated (In thousands) Cost Fair Value Maturity Available for sale: Within one year $ 12,166 $ 12,160 One to five years 46,305 45,668 Five to ten years 78,788 76,090 Beyond ten years 581,156 573,533 Total $ 718,415 $ 707,451 Held to maturity: Within one year $ 9,035 $ 9,028 One to five years 25,953 26,037 Five to ten years 34,673 34,700 Beyond ten years 79,851 77,868 Total $ 149,512 $ 147,633 The following tables summarize securities with gross unrealized losses at March 31, 2019 and December 31, 2018, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2019 Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Available for sale: U.S. GSE securities $ — $ — $ 39,475 $ (496) State and municipal obligations — — 10,061 (72) U.S. GSE residential mortgage-backed securities — — 87,040 (1,858) U.S. GSE residential collateralized mortgage obligations 67,391 (248) 166,790 (3,870) U.S. GSE commercial collateralized mortgage obligations 47,013 (250) 43,390 (1,681) Other asset backed securities — — 23,098 (1,152) Corporate bonds — — 42,707 (3,293) Total available for sale $ 114,404 $ (498) $ 412,561 $ (12,422) Held to maturity: State and municipal obligations $ — $ — $ 11,768 $ (35) U.S. GSE residential mortgage-backed securities — — 9,075 (234) U.S. GSE residential collateralized mortgage obligations — — 37,415 (746) U.S. GSE commercial mortgage-backed securities — — 16,251 (393) U.S. GSE commercial collateralized mortgage obligations — — 27,520 (1,286) Total held to maturity $ — $ — $ 102,029 $ (2,694) December 31, 2018 Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Available for sale: U.S. GSE securities $ — $ — $ 29,050 $ (947) State and municipal obligations 6,655 (15) 21,273 (339) U.S. GSE residential mortgage-backed securities — — 88,762 (3,036) U.S. GSE residential collateralized mortgage obligations 46,452 (141) 172,468 (5,813) U.S. GSE commercial mortgage-backed securities — — 3,508 (28) U.S. GSE commercial collateralized mortgage obligations 46,705 (623) 43,933 (1,916) Other asset-backed securities — — 23,219 (1,031) Corporate bonds — — 42,425 (3,575) Total available for sale $ 99,812 $ (779) $ 424,638 $ (16,685) Held to maturity: State and municipal obligations $ 8,286 $ (26) $ 22,142 $ (250) U.S. GSE residential mortgage-backed securities — — 9,352 (336) U.S. GSE residential collateralized mortgage obligations — — 40,665 (1,130) U.S. GSE commercial mortgage-backed securities — — 16,205 (620) U.S. GSE commercial collateralized mortgage obligations — — 28,127 (1,466) Total held to maturity $ 8,286 $ (26) $ 116,491 $ (3,802) Other-Than-Temporary Impairment Management evaluates securities for other-than-temporary impairment (“OTTI”) quarterly and more frequently when economic or market conditions warrant. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities classified as available for sale or held to maturity are generally evaluated for OTTI under FASB ASC 320, “Accounting for Certain Investments in Debt and Equity Securities”. In determining OTTI under the FASB ASC 320 model, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. 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 these criteria, the amount of impairment is split into two components: (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. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. At March 31, 2019, substantially all of the securities in an unrealized loss position had a fixed interest rate and the cause of the temporary impairment was directly related to changes in interest rates. The Company generally views changes in fair value caused by changes in interest rates as temporary, which is consistent with its experience. Other asset backed securities are comprised of student loan backed bonds which are guaranteed by the U.S. Department of Education for 97% to 100% of principal. Additionally, the bonds have credit support of 3% to 5% and have maintained their Aa3 Moody's rating during the time the Bank has owned them. The corporate bonds within the portfolio have all maintained an investment grade rating by either Moody's or Standard and Poor's. None of the unrealized losses is related to credit losses. The Company does not have the intent to sell these securities and it is more likely than not that it will not be required to sell the securities before their anticipated recovery. Therefore, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2019. Sales and Calls of Securities There were no proceeds from sales of securities for the three months ended March 31, 2019 and 2018. There were $7.9 million of proceeds from calls of securities for the three months ended March 31, 2019. There were no proceeds from calls of securities for the three months ended March 31, 2018. Pledged Securities Securities having a fair value of $402.9 million and $354.3 million at March 31, 2019 and December 31, 2018 , respectively, were pledged to secure public deposits and Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) overnight borrowings. Trading Securities The Company did not hold any trading securities during the three months ended March 31, 2019 or the year ended December 31, 2018. Restricted Securities The Bank is a member of the FHLB of New York. Members are required to own a particular amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The Bank is a member of the Atlantic Central Banker's Bank (“ACBB”) and is required to own ACBB stock. The Bank is also a member of the FRB system and required to own FRB stock. FHLB, ACBB and FRB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank owned $28.1 million and $24.0 million in FHLB, ACBB and FRB stock at March 31, 2019 and December 31, 2018, respectively. These amounts were reported as restricted securities in the consolidated balance sheets. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2019 | |
FAIR VALUE. | |
FAIR VALUE | 5. FAIR VALUE The Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities during the first quarter of 2018 . The Company adopted the amended guidance that requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. FASB ASC No. 820‑10 defines fair value as 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. FASB ASC 820‑10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair 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 reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following tables summarize assets and liabilities measured at fair value on a recurring basis: March 31, 2019 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Financial assets: Available for sale securities: U.S. GSE securities $ 39,475 $ 39,475 State and municipal obligations 43,165 43,165 U.S. GSE residential mortgage-backed securities 96,612 96,612 U.S. GSE residential collateralized mortgage obligations 364,936 364,936 U.S. GSE commercial mortgage-backed securities 7,055 7,055 U.S. GSE commercial collateralized mortgage obligations 90,403 90,403 Other asset-backed securities 23,098 23,098 Corporate bonds 42,707 42,707 Total available for sale securities $ 707,451 $ 707,451 Derivatives $ 7,663 $ 7,663 Financial liabilities: Derivatives $ 5,772 $ 5,772 December 31, 2018 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Financial assets: Available for sale securities: U.S. GSE securities $ 29,050 $ 29,050 State and municipal obligations 40,731 40,731 U.S. GSE residential mortgage-backed securities 93,538 93,538 U.S. GSE residential collateralized mortgage obligations 357,777 357,777 U.S. GSE commercial mortgage-backed securities 3,508 3,508 U.S. GSE commercial collateralized mortgage obligations 90,638 90,638 Other asset-backed securities 23,219 23,219 Corporate bonds 42,425 42,425 Total available for sale securities $ 680,886 $ 680,886 Derivatives $ 6,363 $ 6,363 Financial liabilities: Derivatives $ 2,215 $ 2,215 The following tables summarize assets measured at fair value on a non-recurring basis: March 31, 2019 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Impaired loans $ 3,960 $ 3,960 Other real estate owned $ 175 $ 175 December 31, 2018 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Impaired loans $ 2,532 $ 2,532 Other real estate owned $ 175 $ 175 Impaired loans with an allocated allowance for loan losses at March 31, 2019 had a carrying amount of $4.0 million, which is made up of the outstanding balance of $4.3 million, net of a valuation allowance of $0.3 million. This resulted in an additional provision for loan losses of $0.1 million that is included in the amount reported on the consolidated statements of income for the three months ended March 31, 2019. Impaired loans with an allocated allowance for loan losses at December 31, 2018 had a carrying amount of $2.5 million, which is made up of the outstanding balance of $2.7 million, net of a valuation allowance of $0.2 million. This resulted in an additional provision for loan losses of $0.2 million that is included in the amount reported on the consolidated statements of income for the year ended December 31, 2018. Other real estate owned at March 31, 2019 and December 31, 2018 had a carrying amount of $0.2 million with no valuation allowance recorded. Accordingly, there was no additional provision for loan losses included in the amount reported on the Consolidated Statements of Income. The Company used the following methods and assumptions in estimating the fair value of its financial instruments: Securities Available for Sale and Held to Maturity: If available, the estimated fair values are based on independent dealer quotations on nationally recognized securities exchanges and are classified as Level 1. For securities where quoted prices are not available, fair value is based on matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities resulting in a Level 2 classification. Derivatives: Represents interest rate swaps for which the estimated fair values are based on valuation models using observable market data as of the measurement date resulting in a Level 2 classification. Impaired Loans and Other Real Estate Owned: For impaired loans, the Company evaluates the fair value of the loan in accordance with current accounting guidance. For loans that are collateral dependent, the fair value of the collateral is used to determine the fair value of the loan. The fair value of the collateral is determined based on recent appraised values. The fair value of other real estate owned is also evaluated in accordance with current accounting guidance and determined based on recent appraised values less the estimated cost to sell. 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. Adjustments may relate to location, square footage, condition, amenities, market rate of leases as well as timing of comparable sales. All appraisals undergo a second review process to ensure that the methodology employed and the values derived are reasonable. The fair value of the loan is compared to the carrying value to determine if any write-down or specific reserve is required. Impaired loans are evaluated quarterly for additional impairment and adjusted accordingly. Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, the Credit Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Management also considers the appraisal values for commercial properties associated with current loan origination activity. Collectively, this information is reviewed to help assess current trends in commercial property values. For each collateral dependent impaired loan, management considers information that relates to the type of commercial property to determine if such properties may have appreciated or depreciated in value since the date of the most recent appraisal. Adjustments to fair value are made only when the analysis indicates a probable decline in collateral values. Adjustments made in the appraisal process are not deemed material to the overall consolidated financial statements given the level of impaired loans measured at fair value on a nonrecurring basis. The following tables summarize the estimated fair values and recorded carrying amounts of the Company's financial instruments at March 31, 2019 and December 31, 2018: March 31, 2019 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Total (In thousands) Amount (Level 1) (Level 2) (Level 3) Fair Value Financial assets: Cash and due from banks $ 68,773 $ 68,773 $ — $ — $ 68,773 Interest-bearing deposits with banks 31,684 31,684 — — 31,684 Securities available for sale 707,451 — 707,451 — 707,451 Securities restricted 28,068 n/a n/a n/a n/a Securities held to maturity 149,512 — 147,633 — 147,633 Loans, net 3,359,320 — — 3,346,699 3,346,699 Derivatives 7,663 — 7,663 — 7,663 Accrued interest receivable 13,057 — 2,980 10,077 13,057 Financial liabilities: Certificates of deposit 280,709 — 279,236 — 279,236 Demand and other deposits 3,444,755 3,444,755 — — 3,444,755 FHLB advances 330,217 90,000 237,499 — 327,499 Repurchase agreements 721 — 721 — 721 Subordinated debentures 78,815 — 78,058 — 78,058 Derivatives 5,772 — 5,772 — 5,772 Accrued interest payable 590 — 590 — 590 December 31, 2018 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Total (In thousands) Amount (Level 1) (Level 2) (Level 3) Fair Value Financial assets: Cash and due from banks $ 142,145 $ 142,145 $ — $ — $ 142,145 Interest-bearing deposits with banks 153,223 153,223 — — 153,223 Securities available for sale 680,886 — 680,886 — 680,886 Securities restricted 24,028 n/a n/a n/a n/a Securities held to maturity 160,163 — 156,792 — 156,792 Loans, net 3,244,393 — — 3,216,204 3,216,204 Derivatives 6,363 — 6,363 — 6,363 Accrued interest receivable 11,236 — 2,936 8,300 11,236 Financial liabilities: Certificates of deposit 329,491 — 326,865 — 326,865 Demand and other deposits 3,556,902 3,556,902 — — 3,556,902 FHLB advances 240,433 — 236,209 — 236,209 Repurchase agreements 539 — 539 — 539 Subordinated debentures 78,781 — 74,400 — 74,400 Derivatives 2,215 — 2,215 — 2,215 Accrued interest payable 1,524 — 1,524 — 1,524 |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2019 | |
LOANS. | |
LOANS | 6. LOANS The following table sets forth the major classifications of loans: (In thousands) March 31, 2019 December 31, 2018 Commercial real estate mortgage loans $ 1,402,633 $ 1,373,556 Multi-family mortgage loans 624,114 585,827 Residential real estate mortgage loans 515,173 519,763 Commercial, industrial and agricultural loans 671,897 645,724 Real estate construction and land loans 147,116 123,393 Installment/consumer loans 22,781 20,509 Total loans 3,383,714 3,268,772 Net deferred loan costs and fees 7,390 7,039 Total loans held for investment 3,391,104 3,275,811 Allowance for loan losses (31,784) (31,418) Loans, net $ 3,359,320 $ 3,244,393 In June 2015, the Company completed the acquisition of Community National Bank (“CNB”) resulting in the addition of $729.4 million of acquired loans recorded at their fair value. There were approximately $266.1 million and $275.0 million of acquired CNB loans remaining as of March 31, 2019 and December 31, 2018, respectively. Lending Risk The principal business of the Bank is lending in commercial real estate mortgage loans, multi-family mortgage loans, residential real estate mortgage loans, construction loans, home equity loans, commercial, industrial and agricultural loans, land loans and consumer loans. The Bank considers its primary lending area to be Nassau and Suffolk Counties located on Long Island and the New York City boroughs. A substantial portion of the Bank's loans is secured by real estate in these areas. Accordingly, the ultimate collectability of the loan portfolio is susceptible to changes in market and economic conditions in this region. Commercial Real Estate Mortgages Loans in this classification include income producing investment properties and owner-occupied real estate used for business purposes. The underlying properties are located largely in the Bank's primary market area. The cash flows of the income producing investment properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on credit quality. Generally, management seeks to obtain annual financial information for borrowers with loans in excess of $1.0 million in this category. In the case of owner-occupied real estate used for business purposes, a weakened economy and resultant decreased consumer and/or business spending will have an adverse effect on credit quality. Multi-Family Mortgages Loans in this classification include income producing residential investment properties of five or more families. Loans are made to established owners with a proven and demonstrable record of strong performance. Loans are secured by a first mortgage lien on the subject property with a loan to value ratio generally not exceeding 75%. Repayment is derived generally from the rental income generated from the property and may be supplemented by the owners' personal cash flow. Credit risk arises with an increase in vacancy rates, property mismanagement and the predominance of non-recourse loans that are customary in the industry. Residential Real Estate Mortgages and Home Equity Loans Loans in these classifications are generally secured by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, can have an effect on the credit quality in this loan class. The Bank generally does not originate loans with a loan-to-value ratio greater than 80% and does not grant subprime loans. Commercial, Industrial and Agricultural Loans Loans in this classification are made to businesses and include term loans, lines of credit, senior secured loans to corporations, equipment financing and taxi medallion loans. Generally, these loans are secured by assets of the business and repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and/or business spending, will have an effect on the credit quality in this loan class. Real Estate Construction and Land Loans Loans in this classification primarily include land loans to local individuals, contractors and developers for developing the land for sale or for the purpose of making improvements thereon. Repayment is derived primarily from sale of the lots/units including any pre-sold units. Credit risk is affected by market conditions, time to sell at an adequate price and cost overruns. To a lesser extent, this class includes commercial development projects that the Company finances, which in most cases require interest only during construction, and then convert to permanent financing. Construction delays, cost overruns, market conditions and the availability of permanent financing, to the extent such permanent financing is not being provided by the Bank, all affect the credit risk in this loan class. Installment and Consumer Loans Loans in this classification may be either secured or unsecured. Repayment is dependent on the credit quality of the individual borrower and, if applicable, sale of the collateral securing the loan, such as automobiles. Therefore, the overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this loan class. Credit Quality Indicators The Company categorizes loans into risk categories of pass, special mention, substandard and doubtful based on relevant information about the ability of borrowers to service their debt including repayment patterns, probable incurred losses, past loss experience, current economic conditions, and various types of concentrations of credit. Assigned risk rating grades are continuously updated as new information is obtained. Loans risk rated special mention; substandard and doubtful are reviewed on a quarterly basis. The Company uses the following definitions for risk rating grades: Pass: Loans classified as pass include current loans performing in accordance with contractual terms, pools of homogenous residential real estate and installment/consumer loans that are not individually risk rated and loans which do not exhibit certain risk factors that require greater than usual monitoring by management. Special mention: Loans classified as special mention, while generally not delinquent, have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Bank's credit position at some future date. Substandard: Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in a substandard loan, and may also be in delinquency status and have defined weaknesses based on currently existing facts, conditions and values making collection or liquidation in full highly questionable and improbable. The following tables represent loans categorized by class and internally assigned risk grades as of March 31, 2019 and December 31, 2018: March 31, 2019 (In thousands) Pass Special Mention Substandard Doubtful Total Commercial real estate: Owner occupied $ 513,116 $ 11,652 $ 18,068 $ — $ 542,836 Non-owner occupied 845,486 10,564 3,747 — 859,797 Multi-family 623,699 415 — — 624,114 Residential real estate: Residential mortgage 436,967 8,278 1,304 — 446,549 Home equity 66,569 992 1,063 — 68,624 Commercial and industrial: Secured 151,751 2,762 9,125 — 163,638 Unsecured 486,419 11,885 9,955 — 508,259 Real estate construction and land loans 146,816 — 300 — 147,116 Installment/consumer loans 21,994 757 30 — 22,781 Total loans $ 3,292,817 $ 47,305 $ 43,592 $ — $ 3,383,714 December 31, 2018 (In thousands) Pass Special Mention Substandard Doubtful Total Commercial real estate: Owner occupied $ 480,503 $ 12,045 $ 17,850 $ — $ 510,398 Non-owner occupied 858,069 2,188 2,901 — 863,158 Multi-family 585,409 418 — — 585,827 Residential real estate: Residential mortgage 438,891 8,510 1,114 — 448,515 Home equity 68,480 1,594 1,174 — 71,248 Commercial and industrial: Secured 147,474 5,536 15,530 — 168,540 Unsecured 458,526 12,886 5,772 — 477,184 Real estate construction and land loans 123,089 — 304 — 123,393 Installment/consumer loans 20,464 9 36 — 20,509 Total loans $ 3,180,905 $ 43,186 $ 44,681 $ — $ 3,268,772 Past Due and Non-accrual Loans The following tables represent the aging of the recorded investment in past due loans as of March 31, 2019 and December 31, 2018 by class of loans, as defined by FASB ASC 310‑10: March 31, 2019 >90 Days Non-accrual 30-59 60-89 Past Due Including 90 Total Past Days Days And Days or More Due and (In thousands) Past Due Past Due Accruing Past Due Non-accrual Current Total Loans Commercial real estate: Owner occupied $ 1,190 $ — $ — $ 580 $ 1,770 $ 541,066 $ 542,836 Non-owner occupied — 9,292 — 878 10,170 849,627 859,797 Multi-family — — — — — 624,114 624,114 Residential real estate: Residential mortgages 1,934 — — 422 2,356 444,193 446,549 Home equity 1,017 — 318 622 1,957 66,667 68,624 Commercial and industrial: Secured 1,137 50 — 197 1,384 162,254 163,638 Unsecured 2,361 956 — 342 3,659 504,600 508,259 Real estate construction and land loans — — — — — 147,116 147,116 Installment/consumer loans — — — 30 30 22,751 22,781 Total loans $ 7,639 $ 10,298 $ 318 $ 3,071 $ 21,326 $ 3,362,388 $ 3,383,714 December 31, 2018 >90 Days Non-accrual 30-59 60-89 Past Due Including 90 Total Past Days Days And Days or More Due and (In thousands) Past Due Past Due Accruing Past Due Non-accrual Current Total Loans Commercial real estate: Owner occupied $ 333 $ 194 $ — $ 253 $ 780 $ 509,618 $ 510,398 Non-owner occupied — — — 885 885 862,273 863,158 Multi-family — — — — — 585,827 585,827 Residential real estate: Residential mortgages 892 230 — 199 1,321 447,194 448,515 Home equity 1,033 — 308 624 1,965 69,283 71,248 Commercial and industrial: Secured 330 196 — 174 700 167,840 168,540 Unsecured 1,108 — — 621 1,729 475,455 477,184 Real estate construction and land loans — — — — — 123,393 123,393 Installment/consumer loans 84 — — 52 136 20,373 20,509 Total loans $ 3,780 $ 620 $ 308 $ 2,808 $ 7,516 $ 3,261,256 $ 3,268,772 Impaired Loans At March 31, 2019 and December 31, 2018, the Company had individually impaired loans as defined by FASB ASC No. 310, “Receivables” of $16.1 million and $19.4 million, respectively. The decrease in impaired loans was attributable to the payoff of certain troubled debt restructurings ("TDRs”) and other impaired performing loans, partially offset by new TDRs during the three months ended March 31, 2019. During the three months ended March 31, 2019, the Bank modified certain loans as TDRs totaling $3.2 million. For a loan to be considered impaired, management determines after review whether it is probable that the Bank will not be able to collect all amounts due according to the contractual terms of the loan agreement. Management applies its normal loan review procedures in making these judgments. Impaired loans include individually classified non-accrual loans and TDRs and at December 31, 2018 included $2.7 million in other impaired performing loans related to three taxi medallion loans which paid off in January 2019. For impaired loans, the Bank evaluates the impairment of the loan in accordance with FASB ASC 310‑10‑35‑22. Impairment is determined based on the present value of expected future cash flows discounted at the loan's effective interest rate. For loans that are collateral dependent, the fair value of the collateral is used to determine the fair value of the loan. The fair value of the collateral is determined based on recent appraised values. The fair value of the collateral or present value of expected cash flows is compared to the carrying value to determine if any write-down or specific loan loss allowance allocation is required. The following tables set forth the recorded investment, unpaid principal balance and related allowance by class of loans at March 31, 2019 and December 31, 2018 for individually impaired loans. The tables also set forth the average recorded investment of individually impaired loans and interest income recognized while the loans were impaired during the three months ended March 31, 2019 and 2018: Three Months Ended March 31, 2019 March 31, 2019 Unpaid Related Average Interest Recorded Principal Allocated Recorded Income (In thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial real estate: Owner occupied $ 595 $ 608 $ — $ 483 $ — Non-owner occupied 2,777 2,781 — 2,786 25 Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 1,644 1,644 — 1,482 16 Unsecured 6,869 6,870 — 5,617 85 Total with no related allowance recorded 11,885 11,903 — 10,368 126 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 4,259 4,259 299 3,942 36 Unsecured — — — — — Total with an allowance recorded 4,259 4,259 299 3,942 36 Total: Commercial real estate: Owner occupied 595 608 — 483 — Non-owner occupied 2,777 2,781 — 2,786 25 Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 5,903 5,903 299 5,424 52 Unsecured 6,869 6,870 — 5,617 85 Total $ 16,144 $ 16,162 $ 299 $ 14,310 $ 162 Three Months Ended December 31, 2018 March 31, 2018 Unpaid Related Average Interest Recorded Principal Allocated Recorded Income (In thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial real estate: Owner occupied $ 268 $ 278 $ — $ 2,073 $ — Non-owner occupied 2,816 2,816 — 8,973 76 Residential real estate: Residential mortgages — — — — — Home equity — — — 100 — Commercial and industrial: Secured 8,234 8,234 — 8,744 56 Unsecured 5,316 5,316 — 4,932 37 Total with no related allowance recorded 16,634 16,644 — 24,822 169 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 2,721 2,721 189 — — Unsecured — — — 1,708 — Total with an allowance recorded 2,721 2,721 189 1,708 — Total: Commercial real estate: Owner occupied 268 278 — 2,073 — Non-owner occupied 2,816 2,816 — 8,973 76 Residential real estate: Residential mortgages — — — — — Home equity — — — 100 — Commercial and industrial: Secured 10,955 10,955 189 8,744 56 Unsecured 5,316 5,316 — 6,640 37 Total $ 19,355 $ 19,365 $ 189 $ 26,530 $ 169 The Bank’s other real estate owned totaled $0.2 million at March 31, 2019 and December 31, 2018 and consisted of one property. Troubled Debt Restructurings The terms of certain loans were modified and are considered TDRs. The modification of the terms of such loans generally includes one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. The modification of these loans involved loans to borrowers who were experiencing financial difficulties. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed to determine if that borrower is currently in payment default under any of its obligations or whether there is a probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. During the three months ended March 31, 2019, the Bank modified three commercial and industrial loans, including one taxi medallion loan, totaling $3.2 million as TDRs compared to six commercial and industrial loans totaling $6.7 million modified as TDRs during the three months ended March 31, 2018. These modifications did not result in a change to the recorded investment of the loans and did not increase the allowance for loan losses for those periods. During the three months ended March 31, 2019, there was one charge-off totaling $6 thousand relating to TDRs and there was one loan modified as a TDR for which there was a payment default within twelve months following the modification. During the three months ended March 31, 2018, there were no charge-offs relating to TDRs and there were no loans modified as TDRs for which there was a payment default within twelve months following the modification. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. As of March 31, 2019 and December 31, 2018, the Company had $119 thousand and $133 thousand, respectively, of non-accrual TDRs and $16.3 million and $16.9 million, respectively, of performing TDRs. At March 31, 2019 and December 31, 2018, non-accrual TDRs were unsecured. The Bank has no commitment to lend additional funds to these debtors. The terms of certain other loans were modified during the three months ended March 31, 2019 that did not meet the definition of a TDR. These loans have a total recorded investment at March 31, 2019 of $10.9 million. These loans were to borrowers who were not experiencing financial difficulties. Purchased Credit Impaired Loans Loans acquired in a business combination are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. At the acquisition date, the purchased credit impaired (“PCI”) loans acquired as part of the FNBNY acquisition had contractually required principal and interest payments receivable of $40.3 million, expected cash flows of $28.4 million, and a fair value (initial carrying amount) of $21.8 million. The difference between the contractually required principal and interest payments receivable and the expected cash flows of $11.9 million represented the non-accretable difference. The difference between the expected cash flows and fair value of $6.6 million represented the initial accretable yield. At March 31, 2019, the contractually required principal and interest payments receivable and carrying amount of the PCI loans was $1.1 million and $0.5 million, respectively, with a remaining non-accretable difference of $0.5 million. At December 31, 2018, the contractually required principal and interest payments receivable and carrying amount of the PCI loans was $1.1 million and $0.5 million, respectively, with a remaining non-accretable difference of $0.5 million. At the acquisition date, the PCI loans acquired as part of the CNB acquisition had contractually required principal and interest payments receivable of $23.4 million, expected cash flows of $10.1 million, and a fair value (initial carrying amount) of $8.7 million. The difference between the contractually required principal and interest payments receivable and the expected cash flows of $13.3 million represented the non-accretable difference. The difference between the expected cash flows and fair value of $1.4 million represented the initial accretable yield. At March 31, 2019, the contractually required principal and interest payments receivable and carrying amount of the PCI loans was $0.9 million and $0.1 million, respectively, with a remaining non-accretable difference of $0.6 million. At December 31, 2018, the contractually required principal and interest payments receivable and carrying amount of the PCI loans was $1.2 million and $0.1 million, respectively, with a remaining non-accretable difference of $0.8 million. The following table summarizes the activity in the accretable yield for the PCI loans: Three Months Ended March 31, (In thousands) 2019 2018 Balance at beginning of period $ 460 $ 2,151 Accretion (108) (1,033) Reclassification from (to) nonaccretable difference during the period 11 (161) Accretable discount at end of period $ 363 $ 957 |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2019 | |
ALLOWANCE FOR LOAN LOSSES. | |
ALLOWANCE FOR LOAN LOSSES | 7. ALLOWANCE FOR LOAN LOSSES The following tables represent the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment, as defined under FASB ASC 310‑10, and based on impairment method as of March 31, 2019 and December 31, 2018. The tables include loans acquired from CNB and FNBNY. March 31, 2019 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ 299 $ — $ — $ 299 Collectively evaluated for impairment 11,099 2,557 3,374 12,774 1,526 155 31,485 Loans acquired with deteriorated credit quality — — — — — — — Total allowance for loan losses $ 11,099 $ 2,557 $ 3,374 $ 13,073 $ 1,526 $ 155 $ 31,784 Loans: Individually evaluated for impairment $ 3,372 $ — $ — $ 12,772 $ — $ — $ 16,144 Collectively evaluated for impairment 1,399,261 624,114 514,855 658,887 147,116 22,781 3,367,014 Loans acquired with deteriorated credit quality — — 318 238 — — 556 Total loans $ 1,402,633 $ 624,114 $ 515,173 $ 671,897 $ 147,116 $ 22,781 $ 3,383,714 December 31, 2018 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ 189 $ — $ — $ 189 Collectively evaluated for impairment 10,792 2,566 3,935 12,533 1,297 106 31,229 Loans acquired with deteriorated credit quality — — — — — — — Total allowance for loan losses $ 10,792 $ 2,566 $ 3,935 $ 12,722 $ 1,297 $ 106 $ 31,418 Loans: Individually evaluated for impairment $ 3,084 $ — $ — $ 16,271 $ — $ — $ 19,355 Collectively evaluated for impairment 1,370,472 585,827 519,455 629,229 123,393 20,509 3,248,885 Loans acquired with deteriorated credit quality — — 308 224 — — 532 Total loans $ 1,373,556 $ 585,827 $ 519,763 $ 645,724 $ 123,393 $ 20,509 $ 3,268,772 The following tables represent the changes in the allowance for loan losses for the three months ended March 31, 2019, and 2018, by portfolio segment, as defined under FASB ASC 310‑10. The portfolio segments represent the categories that the Bank uses to determine its allowance for loan losses. Three Months Ended March 31, 2019 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for loan losses: Beginning balance $ 10,792 $ 2,566 $ 3,935 $ 12,722 $ 1,297 $ 106 $ 31,418 Charge-offs — — — (242) — (4) (246) Recoveries — — 1 11 — — 12 Provision (Credit) 307 (9) (562) 582 229 53 600 Ending balance $ 11,099 $ 2,557 $ 3,374 $ 13,073 $ 1,526 $ 155 $ 31,784 Three Months Ended March 31, 2018 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for loan losses: Beginning balance $ 11,048 $ 4,521 $ 2,438 $ 12,838 $ 740 $ 122 $ 31,707 Charge-offs — — — — — — — Recoveries — — 1 304 — — 305 Provision (Credit) 286 (1,519) 1,056 913 81 (17) 800 Ending balance $ 11,334 $ 3,002 $ 3,495 $ 14,055 $ 821 $ 105 $ 32,812 |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT PLANS | 3 Months Ended |
Mar. 31, 2019 | |
PENSION AND OTHER POSTRETIREMENT PLANS. | |
PENSION AND OTHER POSTRETIREMENT PLANS | 8. PENSION AND POSTRETIREMENT PLANS The Bank maintains a noncontributory pension plan (the “Pension Plan”) covering all eligible employees. The Bank uses a December 31 measurement date for this plan in accordance with FASB ASC 715‑30 “Compensation – Retirement Benefits – Defined Benefit Plans – Pension.” During 2012, the Company amended the Pension Plan by revising the formula for determining benefits effective January 1, 2013, except for certain grandfathered employees. Additionally, new employees hired on or after October 1, 2012 are not eligible for the Pension Plan. During 2001, the Bank adopted the Bridgehampton National Bank Supplemental Executive Retirement Plan (“SERP”). As recommended by the Compensation Committee of the Board of Directors and approved by the full Board of Directors, the SERP provides benefits to certain employees, whose benefits under the Pension Plan are limited by the applicable provisions of the Internal Revenue Code. The benefit under the SERP is equal to the additional amount the employee would be entitled to under the Pension Plan and the 401(k) Plan in the absence of such Internal Revenue Code limitations. The assets of the SERP are held in a rabbi trust to maintain the tax-deferred status of the plan and are subject to the general, unsecured creditors of the Company. As a result, the assets of the rabbi trust are reflected on the Company’s consolidated balance sheets. There were no contributions to the Pension Plan during the three months ended March 31, 2019 and 2018, respectively. There were no contributions to the SERP during the three months ended March 31, 2019 and 2018, respectively. In accordance with the SERP, a retired executive received a distribution totaling $28 thousand during each of the three months ended March 31, 2019 and 2018, respectively. The Company's funding policy with respect to its benefit plans is to contribute at least the minimum amounts required by applicable laws and regulations. The following table presents the components of net periodic benefit cost (credit): Three Months Ended March 31, Pension Benefits SERP Benefits (In thousands) 2019 2018 2019 2018 Components of net periodic benefit cost and other amounts recognized in other comprehensive income: Service cost $ 273 $ 325 $ 65 $ 73 Interest cost 225 197 37 32 Expected return on plan assets (608) (625) — — Amortization of net loss 130 83 18 30 Amortization of prior service credit (19) (19) — — Amortization of transition obligation — — — 1 Net periodic benefit cost (credit) $ 1 $ (39) $ 120 $ 136 |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 3 Months Ended |
Mar. 31, 2019 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE. | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 9. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase totaled $0.7 million at March 31, 2019 and $0.5 million at December 31, 2018. The repurchase agreements were collateralized by investment securities, of which 18% were U.S. GSE residential collateralized mortgage obligations and 82% were U.S. GSE residential mortgage-backed securities with a carrying amount of $2.4 million at March 31, 2019 and 18% were U.S. GSE residential collateralized mortgage obligations and 82% were U.S. GSE residential mortgage-backed securities with a carrying amount of $2.4 million at December 31, 2018. Securities sold under agreements to repurchase are financing arrangements with $0.7 million maturing during the second quarter of 2019. At maturity, the securities underlying the agreements are returned to the Company. The primary risk associated with these secured borrowings is the requirement to pledge a market value-based balance of collateral in excess of the borrowed amount. The excess collateral pledged represents an unsecured exposure to the lending counterparty. As the market value of the collateral changes, both through changes in discount rates and spreads as well as related cash flows, additional collateral may need to be pledged. In accordance with the Company's policies, eligible counterparties are defined and monitored to minimize exposure. |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 3 Months Ended |
Mar. 31, 2019 | |
FEDERAL HOME LOAN BANK ADVANCES. | |
FEDERAL HOME LOAN BANK ADVANCES | 10. FEDERAL HOME LOAN BANK ADVANCES The following tables present the contractual maturities and weighted average interest rates of FHLB advances for each of the next five years. There are no FHLB advances with contractual maturities after 2019: March 31, 2019 (Dollars in thousands) Weighted Contractual Maturity Amount Average Rate Overnight $ 90,000 2.66 % 2019 240,217 2.68 Total FHLB advances $ 330,217 2.67 % December 31, 2018 (Dollars in thousands) Weighted Contractual Maturity Amount Average Rate Overnight $ — — % 2019 240,433 2.72 Total FHLB advances $ 240,433 2.72 % Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $1.3 billion of residential and commercial mortgage loans under a blanket lien arrangement at March 31, 2019 and December 31, 2018, respectively. Based on this collateral and the Company's holdings of FHLB stock, the Company is eligible to borrow up to a total of $1.4 billion at March 31, 2019 . |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 3 Months Ended |
Mar. 31, 2019 | |
SUBORDINATED DEBENTURES. | |
SUBORDINATED DEBENTURES | 11. SUBORDINATED DEBENTURES In September 2015, the Company issued $80.0 million in aggregate principal amount of fixed-to-floating rate subordinated debentures. $40.0 million of the subordinated debentures are callable at par after five years, have a stated maturity of September 30, 2025 and bear interest at a fixed annual rate of 5.25% per year, from and including September 21, 2015 until but excluding September 30, 2020. From and including September 30, 2020 to the maturity date or early redemption date, the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR plus 360 basis points. The remaining $40.0 million of the subordinated debentures are callable at par after ten years, have a stated maturity of September 30, 2030 and bear interest at a fixed annual rate of 5.75% per year, from and including September 21, 2015 until but excluding September 30, 2025. From and including September 30, 2025 to the maturity date or early redemption date, the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR plus 345 basis points. The subordinated debentures totaled $78.8 million at March 31, 2019 and December 31, 2018, respectively. The subordinated debentures are included in tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2019 | |
DERIVATIVES. | |
DERIVATIVES | 12. DERIVATIVES Cash Flow Hedges of Interest Rate Risk As part of its asset liability management, the Company utilizes interest rate swap agreements to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent the amount exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest rate swaps with notional amounts totaling $315.0 million and $240.0 million at March 31, 2019 and December 31, 2018, respectively, were designated as cash flow hedges of certain FHLB advances. The swaps were determined to be fully effective during the periods presented and therefore no amount of ineffectiveness has been included in net income. The aggregate fair value of the swaps is recorded in other assets/ (other liabilities), with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps. The following table summarizes information about the interest rate swaps designated as cash flow hedges at March 31, 2019 and December 31, 2018: (Dollars in thousands) March 31, 2019 December 31, 2018 Notional amounts $ 315,000 $ 240,000 Weighted average pay rates 1.84 % 1.84 % Weighted average receive rates 2.61 % 2.77 % Weighted average maturity 2.37 years 2.03 years Interest income recorded on these swap transactions totaled $556 thousand for the three months ended March 31, 2019 and interest expense recorded on these swap transactions totaled $65 thousand for the three months ended March 31, 2018, and is reported as a component of interest expense on FHLB advances. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income/expense as interest payments are made/received on the Company's variable-rate assets/liabilities. During the three months ended March 31, 2019, the Company had $556 thousand of reclassifications as a reduction to interest expense. During the next twelve months, the Company estimates that $1.7 million will be reclassified as a decrease in interest expense. The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the consolidated statements of income relating to the cash flow derivative instruments for the three months ended March 31, 2019 and 2018: Amount of loss Amount of (loss) gain Amount of gain (loss) recognized in other (In thousands) recognized in OCI reclassified from OCI non-interest income Interest rate contracts (Effective Portion) to interest expense (Ineffective Portion) Three months ended March 31, 2019 $ (1,597) $ 556 $ — Three months ended March 31, 2018 $ 2,827 $ (65) $ — The following table reflects the cash flow hedges included in the consolidated balance sheets at the dates indicated: March 31, 2019 December 31, 2018 Fair Fair Fair Fair (In thousands) Notional Value Value Notional Value Value Included in other assets/(liabilities): Amount Asset Liability Amount Asset Liability Interest rate swaps related to FHLB advances $ 240,000 $ 2,767 $ (24) $ 240,000 $ 4,239 $ (4) Forward starting interest rate swaps related to FHLB advances 75,000 — (771) — — — Non-Designated Hedges Derivatives not designated as hedges may be used to manage the Company's exposure to interest rate movements or to provide service to customers but do not meet the requirements for hedge accounting under U.S. GAAP. The Company executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that the Company executes with a third party in order to minimize the net risk exposure resulting from such transactions. These interest-rate swap agreements do not qualify for hedge accounting treatment, and therefore changes in fair value are reported in current period earnings. The following table presents summary information about the interest rate swaps at March 31, 2019 and December 31, 2018: (Dollars in thousands) March 31, 2019 December 31, 2018 Notional amounts $ 279,974 $ 193,401 Weighted average pay rates 4.48 % 4.52 % Weighted average receive rates 4.48 % 4.52 % Weighted average maturity 12.46 years 12.25 years Fair value of combined interest rate swaps $ — $ — Credit-Risk-Related Contingent Features As of March 31, 2019, the termination value of derivatives in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $1.7 million and termination value of derivatives in a net liability position was $4.3 million. The Company has minimum collateral posting thresholds with certain of its derivative counterparties. If the termination value of derivatives is a net asset position, the counterparty is required to post collateral against its obligations to the Company under the agreements. However, if the termination value of derivatives is a net liability position, the Company is required to post collateral to the counterparty. At March 31, 2019, the Company received collateral of $1.6 million from its counterparties under the agreements in a net asset position and posted collateral of $4.0 million to its counterparties under the agreements in a net liability position. If the Company had breached any of these provisions at March 31, 2019, it could have been required to settle its obligations under the agreements at the termination value. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
LEASES. | |
LEASES | 13. LEASES The Company has operating leases for certain branch locations, corporate offices and equipment. Certain leases contain rent escalation clauses, which are reflected in the Company’s operating lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants. The components of lease cost were as follows: Three Months Ended (In thousands) March 31, 2019 Lease cost Operating lease cost $ 1,663 Sublease income (24) Total lease cost $ 1,639 The Company reports lease cost in occupancy and equipment expense in the consolidated statements of income. The Company subleases a portion of its leased properties to commercial sublessees. Sublease income is included in other operating income in the consolidated statements of income. Supplemental cash flow and balance sheet information related to operating leases were as follows: Three Months Ended (Dollars in thousands) March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,669 Operating right-of-use assets obtained in exchange for lease liabilities $ — Weighted-average remaining lease term-operating leases 8.4 years Weighted-average discount rate-operating leases (1) 3.41 % (1) The Company computes the present value of operating lease liabilities using its incremental borrowing rate as the discount rate. Certain leases contain renewal options which are not reflected in the tables below. The exercise of renewal options, which extend the lease term from five to ten years, is at the Company’s discretion. The maturities of operating lease liabilities were as follows: (In thousands) March 31, 2019 2019 $ 4,532 2020 5,927 2021 5,824 2022 5,617 2023 4,630 Thereafter 20,566 Total operating lease payments $ 47,096 Less: Interest (6,642) Present value of operating lease liabilities $ 40,454 (In thousands) December 31, 2018 2019 $ 7,248 2020 6,504 2021 6,185 2022 5,903 2023 4,695 Thereafter 18,687 Total operating lease payments $ 49,222 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 3 Months Ended |
Mar. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME. | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 14. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following table summarizes the components of other comprehensive income (loss) and related income tax effects: Three Months Ended (In thousands) March 31, 2019 March 31, 2018 Unrealized holding gains (losses) on available for sale securities $ 5,531 $ (8,587) Income tax effect (1,613) 2,499 Net change in unrealized gains (losses) on available for sale securities 3,918 (6,088) Reclassification adjustment for amortization realized in income 128 95 Income tax effect (38) (28) Net change in post-retirement obligation 90 67 Change in fair value of derivatives used for cash flow hedges (1,597) 2,827 Reclassification adjustment for (gains) losses realized in income (556) 65 Income tax effect 628 (841) Net change in unrealized (losses) gains on cash flow hedges (1,525) 2,051 Other comprehensive income (loss) $ 2,483 $ (3,970) The following is a summary of the accumulated other comprehensive loss balances, net of income taxes, at the dates indicated: Other December 31, Comprehensive March 31, (In thousands) 2018 Income 2019 Unrealized (losses) gains on available for sale securities $ (11,685) $ 3,918 $ (7,767) Unrealized (losses) gains on pension benefits (6,365) 90 (6,275) Unrealized gains (losses) on cash flow hedges 2,938 (1,525) 1,413 Accumulated other comprehensive (loss) gain, net of income taxes $ (15,112) $ 2,483 $ (12,629) The following represents the reclassifications out of accumulated other comprehensive (loss) income for the three months ended March 31, 2019 and 2018: Three Months Ended Affected Line Item March 31, March 31, in the Consolidated (In thousands) 2019 2018 Statements of Income Amortization of defined benefit pension plan and defined benefit plan component of the SERP: Prior service credit 19 19 Other operating expenses Transition obligation — (1) Other operating expenses Actuarial losses (148) (113) Other operating expenses Realized gains (losses) on cash flow hedges 556 (65) Interest expense Total reclassifications, before income tax $ 427 $ (160) Income tax (expense) benefit (125) 47 Income tax expense Total reclassifications, net of income tax $ 302 $ (113) |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2019 | |
RECENT ACCOUNTING PRONOUNCEMENTS. | |
RECENT ACCOUNTING PRONOUNCEMENTS | 15. RECENT ACCOUNTING PRONOUNCEMENTS Standards Effective in 2019 ASU 2016-02, Leases (Topic 842) In February 2016, the FASB amended existing guidance that requires lessees recognize the following for all leases (with the exception of short-term leases) at the commencement date (1) A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. The new guidance also requires enhanced disclosure about an entity’s leasing arrangements. The Company adopted Topic 842 using the transition approach of applying the new leases standard at the beginning of the period of adoption on January 1, 2019. The new guidance includes a number of optional transition-related practical expedients that must be elected as a package and applied by a reporting entity to all of its leases consistently. The Company has elected to apply the package of practical expedients to all of its existing leases, which among other things, allowed the Company to carry forward the historical lease classification as operating leases in accordance with previous GAAP. The effect of adopting this standard in the Company’s consolidated balance sheets was a $39 million increase in operating right-of-use assets and operating lease liabilities as of January 1, 2019. Refer to Note 13. “Leases” for further details of Leases. ASU 2017‑12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB provided guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. The amendments also simplify the application of the hedge accounting guidance. The amendments in the ASU better align an entity's risk management activities and financial reporting for hedging relationships through changes in both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. For cash flow and net investment hedges existing at the date of adoption, an entity shall apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this ASU. The amended presentation and disclosure guidance is required only prospectively. The adoption of this standard did not have an effect on the Company's consolidated financial statements. Standards Effective in 2020 ASU 2016‑13, Financial Instruments – Credit Losses (Topic 326) In June 2016, FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held to maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in certain leases recognized by a lessor. In addition, the amendments in this ASU require credit losses be presented as an allowance rather than as a write-down on available-for-sale debt securities. For public business entities that meet the definition of an SEC filer, like the Company, the standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For calendar year-end SEC filers, like the Company, the standard is effective for March 31, 2020 interim financial statements. For debt securities with other-than-temporary impairment (“OTTI”), the guidance will be applied prospectively. Existing PCI assets will be grandfathered and classified as purchase credit deteriorated (“PCD”) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield of such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company has created a cross-functional CECL committee that is assessing data and system needs and implementing required changes to loss estimation methods under the CECL model. The Company plans to adopt ASU 2016‑13 in the first quarter of 2020 using the required modified retrospective method with a cumulative effect adjustment to the allowance for loan losses as of the beginning of the reporting period. The Company expects the adoption will result in an increase to the allowance for loan losses balance. The effect on the Company’s consolidated financial statements is being evaluated. ASU 2017‑04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB amended existing guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments are effective for public business entities that are an SEC filer, like the Company, for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendments should be applied prospectively. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition in the first annual period when the entity initially adopts the amendments. The adoption of ASU 2017‑04 is not expected to have a material effect on the Company's consolidated financial statements. ASU 2018‑15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15 to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in this ASU are effective for public business entities, like the Company, for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption of the amendments in this ASU is permitted, including adoption in any interim period. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The adoption of ASU 2018‑15 is not expected to have a material effect on the Company's consolidated financial statements. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Bridge Bancorp, Inc. (the “Holding Company”), is a bank holding company incorporated under the laws of the State of New York. The Holding Company’s business consists of the operations of its wholly-owned subsidiary, BNB Bank (the “Bank”). The Bank’s operations include its real estate investment trust subsidiary, Bridgehampton Community, Inc.; a financial title insurance subsidiary, Bridge Abstract LLC (“Bridge Abstract”); and an investment services subsidiary, Bridge Financial Services, Inc. (“Bridge Financial Services”). The unaudited consolidated financial statements presented in this Quarterly Report on Form 10-Q include the collective results of the Holding Company and its wholly-owned subsidiary, the Bank, which are collectively herein referred to as “we”, “us”, “our” and the “Company.” The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. The unaudited consolidated financial statements included herein reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. Such estimates are subject to change in the future as additional information becomes available or previously existing circumstances are modified. Actual future results could differ significantly from those estimates. The annualized results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain reclassifications have been made to prior year amounts, and the related discussion and analysis, to conform to the current year presentation. These reclassifications did not have an impact on net income or total stockholders' equity. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10‑K for the year ended December 31, 2018. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Standards Effective in 2019 ASU 2016-02, Leases (Topic 842) In February 2016, the FASB amended existing guidance that requires lessees recognize the following for all leases (with the exception of short-term leases) at the commencement date (1) A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. The new guidance also requires enhanced disclosure about an entity’s leasing arrangements. The Company adopted Topic 842 using the transition approach of applying the new leases standard at the beginning of the period of adoption on January 1, 2019. The new guidance includes a number of optional transition-related practical expedients that must be elected as a package and applied by a reporting entity to all of its leases consistently. The Company has elected to apply the package of practical expedients to all of its existing leases, which among other things, allowed the Company to carry forward the historical lease classification as operating leases in accordance with previous GAAP. The effect of adopting this standard in the Company’s consolidated balance sheets was a $39 million increase in operating right-of-use assets and operating lease liabilities as of January 1, 2019. Refer to Note 13. “Leases” for further details of Leases. ASU 2017‑12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB provided guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. The amendments also simplify the application of the hedge accounting guidance. The amendments in the ASU better align an entity's risk management activities and financial reporting for hedging relationships through changes in both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. For cash flow and net investment hedges existing at the date of adoption, an entity shall apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this ASU. The amended presentation and disclosure guidance is required only prospectively. The adoption of this standard did not have an effect on the Company's consolidated financial statements. Standards Effective in 2020 ASU 2016‑13, Financial Instruments – Credit Losses (Topic 326) In June 2016, FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held to maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in certain leases recognized by a lessor. In addition, the amendments in this ASU require credit losses be presented as an allowance rather than as a write-down on available-for-sale debt securities. For public business entities that meet the definition of an SEC filer, like the Company, the standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For calendar year-end SEC filers, like the Company, the standard is effective for March 31, 2020 interim financial statements. For debt securities with other-than-temporary impairment (“OTTI”), the guidance will be applied prospectively. Existing PCI assets will be grandfathered and classified as purchase credit deteriorated (“PCD”) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield of such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company has created a cross-functional CECL committee that is assessing data and system needs and implementing required changes to loss estimation methods under the CECL model. The Company plans to adopt ASU 2016‑13 in the first quarter of 2020 using the required modified retrospective method with a cumulative effect adjustment to the allowance for loan losses as of the beginning of the reporting period. The Company expects the adoption will result in an increase to the allowance for loan losses balance. The effect on the Company’s consolidated financial statements is being evaluated. ASU 2017‑04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB amended existing guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments are effective for public business entities that are an SEC filer, like the Company, for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendments should be applied prospectively. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition in the first annual period when the entity initially adopts the amendments. The adoption of ASU 2017‑04 is not expected to have a material effect on the Company's consolidated financial statements. ASU 2018‑15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15 to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in this ASU are effective for public business entities, like the Company, for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption of the amendments in this ASU is permitted, including adoption in any interim period. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The adoption of ASU 2018‑15 is not expected to have a material effect on the Company's consolidated financial statements |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
EARNINGS PER SHARE. | |
Schedule of computation of EPS | Three Months Ended March 31, (In thousands, except per share data) 2019 2018 Net income $ 12,927 $ 12,073 Dividends paid on and earnings allocated to participating securities (277) (253) Income attributable to common stock $ 12,650 $ 11,820 Weighted average common shares outstanding, including participating securities 19,926 19,834 Weighted average participating securities (426) (421) Weighted average common shares outstanding 19,500 19,413 Basic earnings per common share $ 0.65 $ 0.61 Income attributable to common stock $ 12,650 $ 11,820 Weighted average common shares outstanding 19,500 19,413 Incremental shares from assumed conversions of options and restricted stock units 26 25 Weighted average common and equivalent shares outstanding 19,526 19,438 Diluted earnings per common share $ $ 0.61 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share Based Compensation Arrangement By Share Based Payment Award Grants in Period Fair Value Assumptions | Three Months Ended March 31, 2019 2018 Dividend yield 2.86 % 2.80 % Expected volatility 23.80 27.53 Risk-free interest rate 2.52 2.67 Expected option life 6.0 years 6.5 years |
Schedule of company's stock options | Weighted Weighted Average Number Average Remaining Aggregate of Exercise Contractual Intrinsic (Dollars in thousands, except per share amounts) Options Price Life Value Outstanding, January 1, 2019 47,393 $ 36.19 Granted 63,267 35.35 Outstanding, March 31, 2019 110,660 35.71 9.4 years $ — Vested and Exercisable, March 31, 2019 15,795 36.19 8.9 years — Number of Exercise Range of Exercise Prices Options Price 63,267 $ 35.35 47,393 $ 36.19 110,660 |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of status of unvested restricted stock | Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2019 324,882 $ 29.13 Granted 74,252 32.17 Vested (83,184) 27.02 Forfeited (1,185) 32.53 Unvested, March 31, 2019 314,765 30.39 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of status of unvested restricted stock | Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2019 79,238 $ 27.36 Granted 22,305 33.42 Reinvested dividends 642 27.36 Forfeited (16,184) 23.34 Vested (2,573) 32.90 Unvested, March 31, 2019 83,428 29.59 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
SECURITIES. | |
Schedule of amortized cost and fair value of the available for sale and held to maturity | March 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: U.S. GSE securities $ 39,971 $ — $ (496) $ 39,475 State and municipal obligations 42,699 538 (72) 43,165 U.S. GSE residential mortgage-backed securities 98,348 122 (1,858) 96,612 U.S. GSE residential collateralized mortgage obligations 367,763 1,291 (4,118) 364,936 U.S. GSE commercial mortgage-backed securities 7,050 5 — 7,055 U.S. GSE commercial collateralized mortgage obligations 92,334 — (1,931) 90,403 Other asset backed securities 24,250 — (1,152) 23,098 Corporate bonds 46,000 — (3,293) 42,707 Total available for sale 718,415 1,956 (12,920) 707,451 Held to maturity: State and municipal obligations 45,284 504 (35) 45,753 U.S. GSE residential mortgage-backed securities 9,309 — (234) 9,075 U.S. GSE residential collateralized mortgage obligations 47,204 291 (746) 46,749 U.S. GSE commercial mortgage-backed securities 18,909 20 (393) 18,536 U.S. GSE commercial collateralized mortgage obligations 28,806 — (1,286) 27,520 Total held to maturity 149,512 815 (2,694) 147,633 Total securities $ 867,927 $ 2,771 $ (15,614) $ 855,084 December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: U.S. GSE securities $ 29,997 $ — $ (947) $ 29,050 State and municipal obligations 40,980 105 (354) 40,731 U.S. GSE residential mortgage-backed securities 96,536 38 (3,036) 93,538 U.S. GSE residential collateralized mortgage obligations 362,905 826 (5,954) 357,777 U.S. GSE commercial mortgage-backed securities 3,536 — (28) 3,508 U.S. GSE commercial collateralized mortgage obligations 93,177 — (2,539) 90,638 Other asset-backed securities 24,250 — (1,031) 23,219 Corporate bonds 46,000 — (3,575) 42,425 Total available for sale 697,381 969 (17,464) 680,886 Held to maturity: State and municipal obligations 53,540 290 (276) 53,554 U.S. GSE residential mortgage-backed securities 9,688 — (336) 9,352 U.S. GSE residential collateralized mortgage obligations 48,244 163 (1,130) 47,277 U.S. GSE commercial mortgage-backed securities 19,098 4 (620) 18,482 U.S. GSE commercial collateralized mortgage obligations 29,593 — (1,466) 28,127 Total held to maturity 160,163 457 (3,828) 156,792 Total securities $ 857,544 $ 1,426 $ (21,292) $ 837,678 |
Schedule of amortized cost, fair value and maturities of the available for sale and held to maturity investment securities portfolio | March 31, 2019 Amortized Estimated (In thousands) Cost Fair Value Maturity Available for sale: Within one year $ 12,166 $ 12,160 One to five years 46,305 45,668 Five to ten years 78,788 76,090 Beyond ten years 581,156 573,533 Total $ 718,415 $ 707,451 Held to maturity: Within one year $ 9,035 $ 9,028 One to five years 25,953 26,037 Five to ten years 34,673 34,700 Beyond ten years 79,851 77,868 Total $ 149,512 $ 147,633 |
Schedule of securities having a continuous unrealized loss position aggregated by a period of time less than or greater than 12 months | March 31, 2019 Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Available for sale: U.S. GSE securities $ — $ — $ 39,475 $ (496) State and municipal obligations — — 10,061 (72) U.S. GSE residential mortgage-backed securities — — 87,040 (1,858) U.S. GSE residential collateralized mortgage obligations 67,391 (248) 166,790 (3,870) U.S. GSE commercial collateralized mortgage obligations 47,013 (250) 43,390 (1,681) Other asset backed securities — — 23,098 (1,152) Corporate bonds — — 42,707 (3,293) Total available for sale $ 114,404 $ (498) $ 412,561 $ (12,422) Held to maturity: State and municipal obligations $ — $ — $ 11,768 $ (35) U.S. GSE residential mortgage-backed securities — — 9,075 (234) U.S. GSE residential collateralized mortgage obligations — — 37,415 (746) U.S. GSE commercial mortgage-backed securities — — 16,251 (393) U.S. GSE commercial collateralized mortgage obligations — — 27,520 (1,286) Total held to maturity $ — $ — $ 102,029 $ (2,694) December 31, 2018 Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Available for sale: U.S. GSE securities $ — $ — $ 29,050 $ (947) State and municipal obligations 6,655 (15) 21,273 (339) U.S. GSE residential mortgage-backed securities — — 88,762 (3,036) U.S. GSE residential collateralized mortgage obligations 46,452 (141) 172,468 (5,813) U.S. GSE commercial mortgage-backed securities — — 3,508 (28) U.S. GSE commercial collateralized mortgage obligations 46,705 (623) 43,933 (1,916) Other asset-backed securities — — 23,219 (1,031) Corporate bonds — — 42,425 (3,575) Total available for sale $ 99,812 $ (779) $ 424,638 $ (16,685) Held to maturity: State and municipal obligations $ 8,286 $ (26) $ 22,142 $ (250) U.S. GSE residential mortgage-backed securities — — 9,352 (336) U.S. GSE residential collateralized mortgage obligations — — 40,665 (1,130) U.S. GSE commercial mortgage-backed securities — — 16,205 (620) U.S. GSE commercial collateralized mortgage obligations — — 28,127 (1,466) Total held to maturity $ 8,286 $ (26) $ 116,491 $ (3,802) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
FAIR VALUE. | |
Schedule of assets and liabilities measured on a recurring basis | March 31, 2019 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Financial assets: Available for sale securities: U.S. GSE securities $ 39,475 $ 39,475 State and municipal obligations 43,165 43,165 U.S. GSE residential mortgage-backed securities 96,612 96,612 U.S. GSE residential collateralized mortgage obligations 364,936 364,936 U.S. GSE commercial mortgage-backed securities 7,055 7,055 U.S. GSE commercial collateralized mortgage obligations 90,403 90,403 Other asset-backed securities 23,098 23,098 Corporate bonds 42,707 42,707 Total available for sale securities $ 707,451 $ 707,451 Derivatives $ 7,663 $ 7,663 Financial liabilities: Derivatives $ 5,772 $ 5,772 December 31, 2018 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Financial assets: Available for sale securities: U.S. GSE securities $ 29,050 $ 29,050 State and municipal obligations 40,731 40,731 U.S. GSE residential mortgage-backed securities 93,538 93,538 U.S. GSE residential collateralized mortgage obligations 357,777 357,777 U.S. GSE commercial mortgage-backed securities 3,508 3,508 U.S. GSE commercial collateralized mortgage obligations 90,638 90,638 Other asset-backed securities 23,219 23,219 Corporate bonds 42,425 42,425 Total available for sale securities $ 680,886 $ 680,886 Derivatives $ 6,363 $ 6,363 Financial liabilities: Derivatives $ 2,215 $ 2,215 |
Schedule of assets measured at fair value on a non-recurring basis | March 31, 2019 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Impaired loans $ 3,960 $ 3,960 Other real estate owned $ 175 $ 175 December 31, 2018 Fair Value Measurements Using: Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Impaired loans $ 2,532 $ 2,532 Other real estate owned $ 175 $ 175 |
Schedule of estimated fair values and recorded carrying values of financial instruments | March 31, 2019 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Total (In thousands) Amount (Level 1) (Level 2) (Level 3) Fair Value Financial assets: Cash and due from banks $ 68,773 $ 68,773 $ — $ — $ 68,773 Interest-bearing deposits with banks 31,684 31,684 — — 31,684 Securities available for sale 707,451 — 707,451 — 707,451 Securities restricted 28,068 n/a n/a n/a n/a Securities held to maturity 149,512 — 147,633 — 147,633 Loans, net 3,359,320 — — 3,346,699 3,346,699 Derivatives 7,663 — 7,663 — 7,663 Accrued interest receivable 13,057 — 2,980 10,077 13,057 Financial liabilities: Certificates of deposit 280,709 — 279,236 — 279,236 Demand and other deposits 3,444,755 3,444,755 — — 3,444,755 FHLB advances 330,217 90,000 237,499 — 327,499 Repurchase agreements 721 — 721 — 721 Subordinated debentures 78,815 — 78,058 — 78,058 Derivatives 5,772 — 5,772 — 5,772 Accrued interest payable 590 — 590 — 590 December 31, 2018 Fair Value Measurements Using: Significant Quoted Prices In Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Total (In thousands) Amount (Level 1) (Level 2) (Level 3) Fair Value Financial assets: Cash and due from banks $ 142,145 $ 142,145 $ — $ — $ 142,145 Interest-bearing deposits with banks 153,223 153,223 — — 153,223 Securities available for sale 680,886 — 680,886 — 680,886 Securities restricted 24,028 n/a n/a n/a n/a Securities held to maturity 160,163 — 156,792 — 156,792 Loans, net 3,244,393 — — 3,216,204 3,216,204 Derivatives 6,363 — 6,363 — 6,363 Accrued interest receivable 11,236 — 2,936 8,300 11,236 Financial liabilities: Certificates of deposit 329,491 — 326,865 — 326,865 Demand and other deposits 3,556,902 3,556,902 — — 3,556,902 FHLB advances 240,433 — 236,209 — 236,209 Repurchase agreements 539 — 539 — 539 Subordinated debentures 78,781 — 74,400 — 74,400 Derivatives 2,215 — 2,215 — 2,215 Accrued interest payable 1,524 — 1,524 — 1,524 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
LOANS. | |
Schedule of the major classifications of loans | (In thousands) March 31, 2019 December 31, 2018 Commercial real estate mortgage loans $ 1,402,633 $ 1,373,556 Multi-family mortgage loans 624,114 585,827 Residential real estate mortgage loans 515,173 519,763 Commercial, industrial and agricultural loans 671,897 645,724 Real estate construction and land loans 147,116 123,393 Installment/consumer loans 22,781 20,509 Total loans 3,383,714 3,268,772 Net deferred loan costs and fees 7,390 7,039 Total loans held for investment 3,391,104 3,275,811 Allowance for loan losses (31,784) (31,418) Loans, net $ 3,359,320 $ 3,244,393 |
Schedule of loans by class categorized by internally assigned credit risk grades | March 31, 2019 (In thousands) Pass Special Mention Substandard Doubtful Total Commercial real estate: Owner occupied $ 513,116 $ 11,652 $ 18,068 $ — $ 542,836 Non-owner occupied 845,486 10,564 3,747 — 859,797 Multi-family 623,699 415 — — 624,114 Residential real estate: Residential mortgage 436,967 8,278 1,304 — 446,549 Home equity 66,569 992 1,063 — 68,624 Commercial and industrial: Secured 151,751 2,762 9,125 — 163,638 Unsecured 486,419 11,885 9,955 — 508,259 Real estate construction and land loans 146,816 — 300 — 147,116 Installment/consumer loans 21,994 757 30 — 22,781 Total loans $ 3,292,817 $ 47,305 $ 43,592 $ — $ 3,383,714 December 31, 2018 (In thousands) Pass Special Mention Substandard Doubtful Total Commercial real estate: Owner occupied $ 480,503 $ 12,045 $ 17,850 $ — $ 510,398 Non-owner occupied 858,069 2,188 2,901 — 863,158 Multi-family 585,409 418 — — 585,827 Residential real estate: Residential mortgage 438,891 8,510 1,114 — 448,515 Home equity 68,480 1,594 1,174 — 71,248 Commercial and industrial: Secured 147,474 5,536 15,530 — 168,540 Unsecured 458,526 12,886 5,772 — 477,184 Real estate construction and land loans 123,089 — 304 — 123,393 Installment/consumer loans 20,464 9 36 — 20,509 Total loans $ 3,180,905 $ 43,186 $ 44,681 $ — $ 3,268,772 |
Schedule of the aging of the recorded investment in past due loans by class of loans | March 31, 2019 >90 Days Non-accrual 30-59 60-89 Past Due Including 90 Total Past Days Days And Days or More Due and (In thousands) Past Due Past Due Accruing Past Due Non-accrual Current Total Loans Commercial real estate: Owner occupied $ 1,190 $ — $ — $ 580 $ 1,770 $ 541,066 $ 542,836 Non-owner occupied — 9,292 — 878 10,170 849,627 859,797 Multi-family — — — — — 624,114 624,114 Residential real estate: Residential mortgages 1,934 — — 422 2,356 444,193 446,549 Home equity 1,017 — 318 622 1,957 66,667 68,624 Commercial and industrial: Secured 1,137 50 — 197 1,384 162,254 163,638 Unsecured 2,361 956 — 342 3,659 504,600 508,259 Real estate construction and land loans — — — — — 147,116 147,116 Installment/consumer loans — — — 30 30 22,751 22,781 Total loans $ 7,639 $ 10,298 $ 318 $ 3,071 $ 21,326 $ 3,362,388 $ 3,383,714 December 31, 2018 >90 Days Non-accrual 30-59 60-89 Past Due Including 90 Total Past Days Days And Days or More Due and (In thousands) Past Due Past Due Accruing Past Due Non-accrual Current Total Loans Commercial real estate: Owner occupied $ 333 $ 194 $ — $ 253 $ 780 $ 509,618 $ 510,398 Non-owner occupied — — — 885 885 862,273 863,158 Multi-family — — — — — 585,827 585,827 Residential real estate: Residential mortgages 892 230 — 199 1,321 447,194 448,515 Home equity 1,033 — 308 624 1,965 69,283 71,248 Commercial and industrial: Secured 330 196 — 174 700 167,840 168,540 Unsecured 1,108 — — 621 1,729 475,455 477,184 Real estate construction and land loans — — — — — 123,393 123,393 Installment/consumer loans 84 — — 52 136 20,373 20,509 Total loans $ 3,780 $ 620 $ 308 $ 2,808 $ 7,516 $ 3,261,256 $ 3,268,772 |
Schedule of individually impaired loans by class | Three Months Ended March 31, 2019 March 31, 2019 Unpaid Related Average Interest Recorded Principal Allocated Recorded Income (In thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial real estate: Owner occupied $ 595 $ 608 $ — $ 483 $ — Non-owner occupied 2,777 2,781 — 2,786 25 Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 1,644 1,644 — 1,482 16 Unsecured 6,869 6,870 — 5,617 85 Total with no related allowance recorded 11,885 11,903 — 10,368 126 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 4,259 4,259 299 3,942 36 Unsecured — — — — — Total with an allowance recorded 4,259 4,259 299 3,942 36 Total: Commercial real estate: Owner occupied 595 608 — 483 — Non-owner occupied 2,777 2,781 — 2,786 25 Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 5,903 5,903 299 5,424 52 Unsecured 6,869 6,870 — 5,617 85 Total $ 16,144 $ 16,162 $ 299 $ 14,310 $ 162 Three Months Ended December 31, 2018 March 31, 2018 Unpaid Related Average Interest Recorded Principal Allocated Recorded Income (In thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial real estate: Owner occupied $ 268 $ 278 $ — $ 2,073 $ — Non-owner occupied 2,816 2,816 — 8,973 76 Residential real estate: Residential mortgages — — — — — Home equity — — — 100 — Commercial and industrial: Secured 8,234 8,234 — 8,744 56 Unsecured 5,316 5,316 — 4,932 37 Total with no related allowance recorded 16,634 16,644 — 24,822 169 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 2,721 2,721 189 — — Unsecured — — — 1,708 — Total with an allowance recorded 2,721 2,721 189 1,708 — Total: Commercial real estate: Owner occupied 268 278 — 2,073 — Non-owner occupied 2,816 2,816 — 8,973 76 Residential real estate: Residential mortgages — — — — — Home equity — — — 100 — Commercial and industrial: Secured 10,955 10,955 189 8,744 56 Unsecured 5,316 5,316 — 6,640 37 Total $ 19,355 $ 19,365 $ 189 $ 26,530 $ 169 |
Schedule of activity in the accretable yield for the purchased credit impaired loans | Three Months Ended March 31, (In thousands) 2019 2018 Balance at beginning of period $ 460 $ 2,151 Accretion (108) (1,033) Reclassification from (to) nonaccretable difference during the period 11 (161) Accretable discount at end of period $ 363 $ 957 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
ALLOWANCE FOR LOAN LOSSES. | |
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method | March 31, 2019 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ 299 $ — $ — $ 299 Collectively evaluated for impairment 11,099 2,557 3,374 12,774 1,526 155 31,485 Loans acquired with deteriorated credit quality — — — — — — — Total allowance for loan losses $ 11,099 $ 2,557 $ 3,374 $ 13,073 $ 1,526 $ 155 $ 31,784 Loans: Individually evaluated for impairment $ 3,372 $ — $ — $ 12,772 $ — $ — $ 16,144 Collectively evaluated for impairment 1,399,261 624,114 514,855 658,887 147,116 22,781 3,367,014 Loans acquired with deteriorated credit quality — — 318 238 — — 556 Total loans $ 1,402,633 $ 624,114 $ 515,173 $ 671,897 $ 147,116 $ 22,781 $ 3,383,714 December 31, 2018 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ 189 $ — $ — $ 189 Collectively evaluated for impairment 10,792 2,566 3,935 12,533 1,297 106 31,229 Loans acquired with deteriorated credit quality — — — — — — — Total allowance for loan losses $ 10,792 $ 2,566 $ 3,935 $ 12,722 $ 1,297 $ 106 $ 31,418 Loans: Individually evaluated for impairment $ 3,084 $ — $ — $ 16,271 $ — $ — $ 19,355 Collectively evaluated for impairment 1,370,472 585,827 519,455 629,229 123,393 20,509 3,248,885 Loans acquired with deteriorated credit quality — — 308 224 — — 532 Total loans $ 1,373,556 $ 585,827 $ 519,763 $ 645,724 $ 123,393 $ 20,509 $ 3,268,772 The following tables represent the changes in the allowance for loan losses for the three months ended March 31, 2019, and 2018, by portfolio segment, as defined under FASB ASC 310‑10. The portfolio segments represent the categories that the Bank uses to determine its allowance for loan losses. Three Months Ended March 31, 2019 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for loan losses: Beginning balance $ 10,792 $ 2,566 $ 3,935 $ 12,722 $ 1,297 $ 106 $ 31,418 Charge-offs — — — (242) — (4) (246) Recoveries — — 1 11 — — 12 Provision (Credit) 307 (9) (562) 582 229 53 600 Ending balance $ 11,099 $ 2,557 $ 3,374 $ 13,073 $ 1,526 $ 155 $ 31,784 Three Months Ended March 31, 2018 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for loan losses: Beginning balance $ 11,048 $ 4,521 $ 2,438 $ 12,838 $ 740 $ 122 $ 31,707 Charge-offs — — — — — — — Recoveries — — 1 304 — — 305 Provision (Credit) 286 (1,519) 1,056 913 81 (17) 800 Ending balance $ 11,334 $ 3,002 $ 3,495 $ 14,055 $ 821 $ 105 $ 32,812 |
PENSION AND POSTRETIREMENT PLAN
PENSION AND POSTRETIREMENT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
PENSION AND OTHER POSTRETIREMENT PLANS. | |
Schedule of components of net periodic benefit cost (credit) | Three Months Ended March 31, Pension Benefits SERP Benefits (In thousands) 2019 2018 2019 2018 Components of net periodic benefit cost and other amounts recognized in other comprehensive income: Service cost $ 273 $ 325 $ 65 $ 73 Interest cost 225 197 37 32 Expected return on plan assets (608) (625) — — Amortization of net loss 130 83 18 30 Amortization of prior service credit (19) (19) — — Amortization of transition obligation — — — 1 Net periodic benefit cost (credit) $ 1 $ (39) $ 120 $ 136 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
FEDERAL HOME LOAN BANK ADVANCES. | |
Schedule of contractual maturities and weighted average interest rates of FHLB advances | March 31, 2019 (Dollars in thousands) Weighted Contractual Maturity Amount Average Rate Overnight $ 90,000 2.66 % 2019 240,217 2.68 Total FHLB advances $ 330,217 2.67 % December 31, 2018 (Dollars in thousands) Weighted Contractual Maturity Amount Average Rate Overnight $ — — % 2019 240,433 2.72 Total FHLB advances $ 240,433 2.72 % |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
DERIVATIVES. | |
Schedule of information about the interest rate swap designated as a cash flow hedge | (Dollars in thousands) March 31, 2019 December 31, 2018 Notional amounts $ 315,000 $ 240,000 Weighted average pay rates 1.84 % 1.84 % Weighted average receive rates 2.61 % 2.77 % Weighted average maturity 2.37 years 2.03 years |
Schedule of the net gains (losses) recorded, net of income tax, in accumulated other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments | Amount of loss Amount of (loss) gain Amount of gain (loss) recognized in other (In thousands) recognized in OCI reclassified from OCI non-interest income Interest rate contracts (Effective Portion) to interest expense (Ineffective Portion) Three months ended March 31, 2019 $ (1,597) $ 556 $ — Three months ended March 31, 2018 $ 2,827 $ (65) $ — |
Schedule of cash flow hedge included in the Consolidated Balance Sheets | March 31, 2019 December 31, 2018 Fair Fair Fair Fair (In thousands) Notional Value Value Notional Value Value Included in other assets/(liabilities): Amount Asset Liability Amount Asset Liability Interest rate swaps related to FHLB advances $ 240,000 $ 2,767 $ (24) $ 240,000 $ 4,239 $ (4) Forward starting interest rate swaps related to FHLB advances 75,000 — (771) — — — |
Schedule of information about interest rate swaps | (Dollars in thousands) March 31, 2019 December 31, 2018 Notional amounts $ 279,974 $ 193,401 Weighted average pay rates 4.48 % 4.52 % Weighted average receive rates 4.48 % 4.52 % Weighted average maturity 12.46 years 12.25 years Fair value of combined interest rate swaps $ — $ — |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
LEASES. | |
Summary of lease costs | Three Months Ended (In thousands) March 31, 2019 Lease cost Operating lease cost $ 1,663 Sublease income (24) Total lease cost $ 1,639 |
Summary of supplemental cash flow and balance sheet information related to operating leases | Three Months Ended (Dollars in thousands) March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,669 Operating right-of-use assets obtained in exchange for lease liabilities $ — Weighted-average remaining lease term-operating leases 8.4 years Weighted-average discount rate-operating leases (1) 3.41 % (1) The Company computes the present value of operating lease liabilities using its incremental borrowing rate as the discount rate. |
Summary of maturities of operating lease liabilities as of March 31, 2019 | (In thousands) March 31, 2019 2019 $ 4,532 2020 5,927 2021 5,824 2022 5,617 2023 4,630 Thereafter 20,566 Total operating lease payments $ 47,096 Less: Interest (6,642) Present value of operating lease liabilities $ 40,454 |
Summary of maturities of operating lease liabilities as of December 31, 2018 | (In thousands) December 31, 2018 2019 $ 7,248 2020 6,504 2021 6,185 2022 5,903 2023 4,695 Thereafter 18,687 Total operating lease payments $ 49,222 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME. | |
Schedule of other comprehensive income (loss) and related income tax effects | Three Months Ended (In thousands) March 31, 2019 March 31, 2018 Unrealized holding gains (losses) on available for sale securities $ 5,531 $ (8,587) Income tax effect (1,613) 2,499 Net change in unrealized gains (losses) on available for sale securities 3,918 (6,088) Reclassification adjustment for amortization realized in income 128 95 Income tax effect (38) (28) Net change in post-retirement obligation 90 67 Change in fair value of derivatives used for cash flow hedges (1,597) 2,827 Reclassification adjustment for (gains) losses realized in income (556) 65 Income tax effect 628 (841) Net change in unrealized (losses) gains on cash flow hedges (1,525) 2,051 Other comprehensive income (loss) $ 2,483 $ (3,970) |
Schedule of accumulated other comprehensive loss balances, net of income taxes | Other December 31, Comprehensive March 31, (In thousands) 2018 Income 2019 Unrealized (losses) gains on available for sale securities $ (11,685) $ 3,918 $ (7,767) Unrealized (losses) gains on pension benefits (6,365) 90 (6,275) Unrealized gains (losses) on cash flow hedges 2,938 (1,525) 1,413 Accumulated other comprehensive (loss) gain, net of income taxes $ (15,112) $ 2,483 $ (12,629) |
Schedule of reclassifications out of accumulated other comprehensive (loss) income | Three Months Ended Affected Line Item March 31, March 31, in the Consolidated (In thousands) 2019 2018 Statements of Income Amortization of defined benefit pension plan and defined benefit plan component of the SERP: Prior service credit 19 19 Other operating expenses Transition obligation — (1) Other operating expenses Actuarial losses (148) (113) Other operating expenses Realized gains (losses) on cash flow hedges 556 (65) Interest expense Total reclassifications, before income tax $ 427 $ (160) Income tax (expense) benefit (125) 47 Income tax expense Total reclassifications, net of income tax $ 302 $ (113) |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
EARNINGS PER SHARE. | ||
Net income | $ 12,927 | $ 12,073 |
Dividends paid on and earnings allocated to participating securities | (277) | (253) |
Income attributable to common stock | $ 12,650 | $ 11,820 |
Weighted average common shares outstanding, including participating securities | 19,926 | 19,834 |
Weighted average participating securities (in shares) | (426) | (421) |
Weighted average common shares outstanding | 19,500 | 19,413 |
Basic earnings per common share (in dollars per share) | $ 0.65 | $ 0.61 |
Income attributable to common stock | $ 12,650 | $ 11,820 |
Weighted average common shares outstanding | 19,500 | 19,413 |
Incremental shares from assumed conversions of options and restricted stock units | 26 | 25 |
Weighted average common and equivalent shares outstanding (in shares) | 19,526 | 19,438 |
Diluted earnings per common share (in dollars per share) | $ 0.65 | $ 0.61 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 110,660 | 47,393 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 22,305 | 21,693 |
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 63,267 | ||
Stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 39 | $ 13 | |
Unrecognized compensation cost related to unvested stock options | $ 499 | ||
Cost is expected to be recognized period | 2 years 6 months | ||
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 602 | $ 536 | |
Unrecognized compensation cost related to non-vested RSAs | $ 6,700 | ||
Cost is expected to be recognized period | 3 years 6 months | ||
Restricted stock | Time-vested RSAs vest | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards unvested | 303,114 | ||
Restricted stock | Performance-based RSAs vest | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 25,117 | ||
Vesting period (in years) | 2 years | ||
Number of restricted stock awards unvested | 11,651 | ||
Directors | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 1 year | ||
Deferred compensation expense | $ 143 | $ 135 | |
2012 Plan | Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 74,252 | 77,682 | |
Number of restricted stock awards unvested | 314,765 | 324,882 | |
2012 Plan | Restricted stock | Time-vested RSAs vest ratably over five years | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 49,925 | 39,750 | |
Vesting period (in years) | 5 years | 5 years | |
2012 Plan | Restricted stock | Time-vested RSAs vest ratably over three years | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 24,327 | 12,815 | |
Vesting period (in years) | 3 years | 3 years | |
LTI Plan | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 170 | $ 101 | |
Number of restricted stock awards granted | 22,305 | ||
Number of restricted stock awards unvested | 83,428 | 79,238 | |
Unrecognized compensation cost related to non-vested RSAs | $ 1,900 | ||
Cost is expected to be recognized period | 3 years 2 months 12 days | ||
LTI Plan | Restricted stock units | Time-vested RSAs vest ratably over five years | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 13,255 | ||
Vesting period (in years) | 5 years | ||
LTI Plan | Restricted stock units | Performance-based RSAs vest | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 9,050 | ||
Vesting period (in years) | 3 years | ||
LTI Plan | NEOs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 63,267 | 47,393 | |
Percentage premium over the grant date stock price | 10.00% | ||
Vesting period (in years) | 3 years | ||
Weighted-average grant-date fair value | $ 5.05 | $ 6.52 | |
Method used | Black-Scholes option-pricing model |
STOCK BASED COMPENSATION PLAN_2
STOCK BASED COMPENSATION PLANS - Incentive Plans (Details) | Mar. 31, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock approved for issuance under the Plan | 803,385 |
Shares available for issuance | 163,472 |
2012 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock approved for issuance under the Plan | 525,000 |
2006 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for issuance | 278,385 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Schedule of Share Based Compensation Arrangement By Share Based Payment Award Grants in Period Fair Value Assumptions (Details) - LTI Plan - NEOs | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 2.86% | 2.80% |
Expected volatility rate | 23.80% | 27.53% |
Risk-free interest rate | 2.52% | 2.67% |
Expected option life | 6 years | 6 years 6 months |
STOCK BASED COMPENSATION PLAN_3
STOCK BASED COMPENSATION PLANS - Status of Company's Stock Options (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Number of Options | |
Outstanding, January 1, 2019 | shares | 47,393 |
Granted | shares | 63,267 |
Outstanding, March 31, 2019 | shares | 110,660 |
Vested and Exercisable, March 31, 2019 | shares | 15,795 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, January 1, 2019 | $ / shares | $ 36.19 |
Granted | $ / shares | 35.35 |
Weighted Average Exercise Price, March, 2019 | $ / shares | 35.71 |
Vested and Exercisable, March 31, 2019 | $ / shares | $ 36.19 |
Weighted Average Remaining Contractual Life, Outstanding | 9 years 4 months 24 days |
Weighted Average Remaining Contractual Life, Vested and Exercisable | 8 years 10 months 24 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 0 |
Aggregate Intrinsic Value, Vested and Exercisable | $ | $ 0 |
STOCK BASED COMPENSATION PLAN_4
STOCK BASED COMPENSATION PLANS - Exercise Prices (Details) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options | 110,660 | 47,393 |
Weighted Average Exercise Price | $ 35.71 | $ 36.19 |
$35.35 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options | 63,267 | |
Weighted Average Exercise Price | $ 35.35 | |
$36.19 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options | 47,393 | |
Weighted Average Exercise Price | $ 36.19 |
STOCK BASED COMPENSATION PLAN_5
STOCK BASED COMPENSATION PLANS - Restricted Stock Awards (Details) - Restricted stock - 2012 Plan - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Shares | ||
Unvested, January 1, 2019 | 324,882 | |
Granted | 74,252 | 77,682 |
Vested | (83,184) | |
Forfeited | (1,185) | |
Unvested, March 31, 2019 | 314,765 | |
Weighted Average Grant-Date Fair Value | ||
Unvested, January 1, 2019 | $ 29.13 | |
Granted | 32.17 | |
Vested | 27.02 | |
Forfeited | 32.53 | |
Unvested, March 31, 2019 | $ 30.39 |
STOCK BASED COMPENSATION PLAN_6
STOCK BASED COMPENSATION PLANS - Restricted Stock Units (Details) - LTI Plan - Restricted stock units | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Unvested, January 1, 2019 | shares | 79,238 |
Granted | shares | 22,305 |
Reinvested dividends | shares | 642 |
Forfeited | shares | (16,184) |
Vested | shares | (2,573) |
Unvested, March 31, 2019 | shares | 83,428 |
Weighted Average Grant-Date Fair Value | |
Unvested, January 1, 2019 | $ / shares | $ 27.36 |
Granted | $ / shares | 33.42 |
Reinvested dividends | $ / shares | 27.36 |
Forfeited | $ / shares | 23.34 |
Vested | $ / shares | 32.90 |
Unvested, March 31, 2019 | $ / shares | $ 29.59 |
STOCK BASED COMPENSATION PLAN_7
STOCK BASED COMPENSATION PLANS - Employee Stock Purchase Plan (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
May 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
STOCK-BASED COMPENSATION PLANS. | |||
Common stock initially authorized for issuance under the ESPP, Shares | 1,000,000 | ||
Maximum contribution from employees | $ 25,000 | ||
Shares of common stock purchased under the ESPP | 0 | 0 | |
Expense recorded related to ESPP | $ 0 | $ 0 |
SECURITIES - Summary of Availab
SECURITIES - Summary of Available for Sale Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available for sale: | ||
Amortized Cost | $ 718,415 | $ 697,381 |
Gross Unrealized Gains | 1,956 | 969 |
Gross Unrealized Losses | (12,920) | (17,464) |
Estimated Fair Value | 707,451 | 680,886 |
U.S. GSE securities | ||
Available for sale: | ||
Amortized Cost | 39,971 | 29,997 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (496) | (947) |
Estimated Fair Value | 39,475 | 29,050 |
State and municipal obligations | ||
Available for sale: | ||
Amortized Cost | 42,699 | 40,980 |
Gross Unrealized Gains | 538 | 105 |
Gross Unrealized Losses | (72) | (354) |
Estimated Fair Value | 43,165 | 40,731 |
U.S. GSE residential mortgage-backed securities | ||
Available for sale: | ||
Amortized Cost | 98,348 | 96,536 |
Gross Unrealized Gains | 122 | 38 |
Gross Unrealized Losses | (1,858) | (3,036) |
Estimated Fair Value | 96,612 | 93,538 |
U.S. GSE residential collateralized mortgage obligations | ||
Available for sale: | ||
Amortized Cost | 367,763 | 362,905 |
Gross Unrealized Gains | 1,291 | 826 |
Gross Unrealized Losses | (4,118) | (5,954) |
Estimated Fair Value | 364,936 | 357,777 |
U.S. GSE commercial mortgage-backed securities | ||
Available for sale: | ||
Amortized Cost | 7,050 | 3,536 |
Gross Unrealized Gains | 5 | 0 |
Gross Unrealized Losses | 0 | (28) |
Estimated Fair Value | 7,055 | 3,508 |
U.S. GSE commercial collateralized mortgage obligations | ||
Available for sale: | ||
Amortized Cost | 92,334 | 93,177 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,931) | (2,539) |
Estimated Fair Value | 90,403 | 90,638 |
Other asset backed securities | ||
Available for sale: | ||
Amortized Cost | 24,250 | 24,250 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,152) | (1,031) |
Estimated Fair Value | 23,098 | 23,219 |
Corporate bonds | ||
Available for sale: | ||
Amortized Cost | 46,000 | 46,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3,293) | (3,575) |
Estimated Fair Value | $ 42,707 | $ 42,425 |
SECURITIES - Summary of Held to
SECURITIES - Summary of Held to Maturity Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Held to maturity: | ||
Amortized Cost | $ 149,512 | $ 160,163 |
Gross Unrealized Gains | 815 | 457 |
Gross Unrealized Losses | (2,694) | (3,828) |
Estimated Fair Value | 147,633 | 156,792 |
State and municipal obligations | ||
Held to maturity: | ||
Amortized Cost | 45,284 | 53,540 |
Gross Unrealized Gains | 504 | 290 |
Gross Unrealized Losses | (35) | (276) |
Estimated Fair Value | 45,753 | 53,554 |
U.S. GSE residential mortgage-backed securities | ||
Held to maturity: | ||
Amortized Cost | 9,309 | 9,688 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (234) | (336) |
Estimated Fair Value | 9,075 | 9,352 |
U.S. GSE residential collateralized mortgage obligations | ||
Held to maturity: | ||
Amortized Cost | 47,204 | 48,244 |
Gross Unrealized Gains | 291 | 163 |
Gross Unrealized Losses | (746) | (1,130) |
Estimated Fair Value | 46,749 | 47,277 |
U.S. GSE commercial mortgage-backed securities | ||
Held to maturity: | ||
Amortized Cost | 18,909 | 19,098 |
Gross Unrealized Gains | 20 | 4 |
Gross Unrealized Losses | (393) | (620) |
Estimated Fair Value | 18,536 | 18,482 |
U.S. GSE commercial collateralized mortgage obligations | ||
Held to maturity: | ||
Amortized Cost | 28,806 | 29,593 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,286) | (1,466) |
Estimated Fair Value | $ 27,520 | $ 28,127 |
SECURITIES - Total Available fo
SECURITIES - Total Available for Sale and Held to Maturity Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total securities | ||
Amortized Cost | $ 867,927 | $ 857,544 |
Gross Unrealized Gains | 2,771 | 1,426 |
Gross Unrealized Losses | (15,614) | (21,292) |
Total securities | $ 855,084 | $ 837,678 |
SECURITIES - Available for Sale
SECURITIES - Available for Sale Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost, Available for sale: | ||
Within one year | $ 12,166 | |
One to five years | 46,305 | |
Five to ten years | 78,788 | |
Beyond ten years | 581,156 | |
Total | 718,415 | $ 697,381 |
Estimated Fair Value, Available for sale: | ||
Within one year | 12,160 | |
One to five years | 45,668 | |
Five to ten years | 76,090 | |
Beyond ten years | 573,533 | |
Estimated Fair Value | $ 707,451 | $ 680,886 |
SECURITIES - Held to Maturity I
SECURITIES - Held to Maturity Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost, Held to maturity: | ||
Within one year | $ 9,035 | |
One to five years | 25,953 | |
Five to ten years | 34,673 | |
Beyond ten years | 79,851 | |
Total | 149,512 | $ 160,163 |
Estimated Fair Value, Held to maturity: | ||
Within one year | 9,028 | |
One to five years | 26,037 | |
Five to ten years | 34,700 | |
Beyond ten years | 77,868 | |
Estimated Fair Value | $ 147,633 | $ 156,792 |
SECURITIES - Available for Sa_2
SECURITIES - Available for Sale Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available for sale: | ||
Less than 12 months, Estimated Fair Value | $ 114,404 | $ 99,812 |
Less than 12 months, Gross Unrealized Losses | (498) | (779) |
Greater than 12 months, Estimated Fair Value | 412,561 | 424,638 |
Greater than 12 months, Gross Unrealized Losses | (12,422) | (16,685) |
U.S. GSE securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 0 | 0 |
Less than 12 months, Gross Unrealized Losses | 0 | 0 |
Greater than 12 months, Estimated Fair Value | 39,475 | 29,050 |
Greater than 12 months, Gross Unrealized Losses | (496) | (947) |
State and municipal obligations | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 0 | 6,655 |
Less than 12 months, Gross Unrealized Losses | 0 | (15) |
Greater than 12 months, Estimated Fair Value | 10,061 | 21,273 |
Greater than 12 months, Gross Unrealized Losses | (72) | (339) |
U.S. GSE residential mortgage-backed securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 0 | 0 |
Less than 12 months, Gross Unrealized Losses | 0 | 0 |
Greater than 12 months, Estimated Fair Value | 87,040 | 88,762 |
Greater than 12 months, Gross Unrealized Losses | (1,858) | (3,036) |
U.S. GSE residential collateralized mortgage obligations | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 67,391 | 46,452 |
Less than 12 months, Gross Unrealized Losses | (248) | (141) |
Greater than 12 months, Estimated Fair Value | 166,790 | 172,468 |
Greater than 12 months, Gross Unrealized Losses | (3,870) | (5,813) |
U.S. GSE commercial mortgage-backed securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 0 | |
Less than 12 months, Gross Unrealized Losses | 0 | |
Greater than 12 months, Estimated Fair Value | 3,508 | |
Greater than 12 months, Gross Unrealized Losses | (28) | |
U.S. GSE commercial collateralized mortgage obligations | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 47,013 | 46,705 |
Less than 12 months, Gross Unrealized Losses | (250) | (623) |
Greater than 12 months, Estimated Fair Value | 43,390 | 43,933 |
Greater than 12 months, Gross Unrealized Losses | (1,681) | (1,916) |
Other asset backed securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 0 | 0 |
Less than 12 months, Gross Unrealized Losses | 0 | 0 |
Greater than 12 months, Estimated Fair Value | 23,098 | 23,219 |
Greater than 12 months, Gross Unrealized Losses | (1,152) | (1,031) |
Corporate bonds | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 0 | 0 |
Less than 12 months, Gross Unrealized Losses | 0 | 0 |
Greater than 12 months, Estimated Fair Value | 42,707 | 42,425 |
Greater than 12 months, Gross Unrealized Losses | $ (3,293) | $ (3,575) |
SECURITIES - Held to Maturity S
SECURITIES - Held to Maturity Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Held to maturity: | ||
Less than 12 months, Estimated Fair Value | $ 0 | $ 8,286 |
Less than 12 months, Gross Unrealized losses | 0 | (26) |
Greater than 12 months, Estimated Fair Value | 102,029 | 116,491 |
Greater than 12 months, Gross Unrealized losses | (2,694) | (3,802) |
State and municipal obligations | ||
Held to maturity: | ||
Less than 12 months, Estimated Fair Value | 0 | 8,286 |
Less than 12 months, Gross Unrealized losses | 0 | (26) |
Greater than 12 months, Estimated Fair Value | 11,768 | 22,142 |
Greater than 12 months, Gross Unrealized losses | (35) | (250) |
U.S. GSE residential mortgage-backed securities | ||
Held to maturity: | ||
Less than 12 months, Estimated Fair Value | 0 | 0 |
Less than 12 months, Gross Unrealized losses | 0 | 0 |
Greater than 12 months, Estimated Fair Value | 9,075 | 9,352 |
Greater than 12 months, Gross Unrealized losses | (234) | (336) |
U.S. GSE residential collateralized mortgage obligations | ||
Held to maturity: | ||
Less than 12 months, Estimated Fair Value | 0 | 0 |
Less than 12 months, Gross Unrealized losses | 0 | 0 |
Greater than 12 months, Estimated Fair Value | 37,415 | 40,665 |
Greater than 12 months, Gross Unrealized losses | (746) | (1,130) |
U.S. GSE commercial mortgage-backed securities | ||
Held to maturity: | ||
Less than 12 months, Estimated Fair Value | 0 | 0 |
Less than 12 months, Gross Unrealized losses | 0 | 0 |
Greater than 12 months, Estimated Fair Value | 16,251 | 16,205 |
Greater than 12 months, Gross Unrealized losses | (393) | (620) |
U.S. GSE commercial collateralized mortgage obligations | ||
Held to maturity: | ||
Less than 12 months, Estimated Fair Value | 0 | 0 |
Less than 12 months, Gross Unrealized losses | 0 | 0 |
Greater than 12 months, Estimated Fair Value | 27,520 | 28,127 |
Greater than 12 months, Gross Unrealized losses | $ (1,286) | $ (1,466) |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
OTTI, Sales and Calls, Pledged, Trading and Restricted Securities | |||
Guaranteed portion of student loan backed bonds | student loan backed bonds which are guaranteed by the U.S. Department of Education for 97% to 100% of principal. | ||
Credit support for student loan backed bonds description | the bonds have credit support of 3% to 5% | ||
Proceeds from sales of securities available for sale | $ 0 | $ 0 | |
Proceeds from calls of securities | 7,900 | $ 0 | |
Fair value of securities pledged to secure public deposits and FHLB and FRB overnight borrowings | 402,900 | $ 354,300 | |
Amount owned in FHLB, ACBB and FRB stock | $ 28,068 | $ 24,028 |
FAIR VALUE - Summary of Assets
FAIR VALUE - Summary of Assets and Liabilities measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets measured at fair value on recurring basis | ||
Available for sale securities | $ 707,451 | $ 680,886 |
U.S. GSE securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 39,475 | 29,050 |
State and municipal obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 43,165 | 40,731 |
U.S. GSE residential mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 96,612 | 93,538 |
U.S. GSE residential collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 364,936 | 357,777 |
U.S. GSE commercial mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 7,055 | 3,508 |
U.S. GSE commercial collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 90,403 | 90,638 |
Other asset backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 23,098 | 23,219 |
Corporate bonds | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 42,707 | 42,425 |
Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 707,451 | 680,886 |
Financial Assets: Derivatives | 7,663 | 6,363 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 5,772 | 2,215 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 0 | 0 |
Financial Assets: Derivatives | 0 | 0 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 707,451 | 680,886 |
Financial Assets: Derivatives | 7,663 | 6,363 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 5,772 | 2,215 |
Significant Unobservable Inputs (Level 3) | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 0 | 0 |
Financial Assets: Derivatives | 0 | 0 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 0 | 0 |
Recurring basis | Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 707,451 | 680,886 |
Recurring basis | Carrying Amount | U.S. GSE securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 39,475 | 29,050 |
Recurring basis | Carrying Amount | State and municipal obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 43,165 | 40,731 |
Recurring basis | Carrying Amount | U.S. GSE residential mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 96,612 | 93,538 |
Recurring basis | Carrying Amount | U.S. GSE residential collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 364,936 | 357,777 |
Recurring basis | Carrying Amount | U.S. GSE commercial mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 7,055 | 3,508 |
Recurring basis | Carrying Amount | U.S. GSE commercial collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 90,403 | 90,638 |
Recurring basis | Carrying Amount | Other asset backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 23,098 | 23,219 |
Recurring basis | Carrying Amount | Corporate bonds | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 42,707 | 42,425 |
Recurring basis | Carrying Amount | Derivatives | ||
Assets measured at fair value on recurring basis | ||
Financial Assets: Derivatives | 7,663 | 6,363 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 5,772 | 2,215 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 707,451 | 680,886 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 39,475 | 29,050 |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 43,165 | 40,731 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE residential mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 96,612 | 93,538 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE residential collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 364,936 | 357,777 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE commercial mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 7,055 | 3,508 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE commercial collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 90,403 | 90,638 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Other asset backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 23,098 | 23,219 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 42,707 | 42,425 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivatives | ||
Assets measured at fair value on recurring basis | ||
Financial Assets: Derivatives | 7,663 | 6,363 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | $ 5,772 | $ 2,215 |
FAIR VALUE - Summary of Asset_2
FAIR VALUE - Summary of Assets and Liabilities measured on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets measured at fair value on non-recurring basis | ||
Other real estate owned | $ 175 | $ 175 |
Non-recurring basis | Carrying Amount | ||
Assets measured at fair value on non-recurring basis | ||
Impaired loans | 3,960 | 2,532 |
Other real estate owned | 175 | 175 |
Non-recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Assets measured at fair value on non-recurring basis | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Non-recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets measured at fair value on non-recurring basis | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Non-recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets measured at fair value on non-recurring basis | ||
Impaired loans | 3,960 | 2,532 |
Other real estate owned | $ 175 | $ 175 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Additional provision for loan losses | $ 600 | $ 800 | |
Assets measured at fair value on non-recurring basis | |||
Outstanding balance of impaired loans with an allowance recorded | 4,259 | $ 2,721 | |
Valuation allowance on impaired loans | 299 | 189 | |
Other Real Estate | 175 | 175 | |
Other real estate owned valuation allowance | 0 | 0 | |
Real estate owned additional provision | 0 | 0 | |
Non-recurring basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Additional provision for loan losses | 100 | 200 | |
Assets measured at fair value on non-recurring basis | |||
Outstanding balance of impaired loans with an allowance recorded | 4,300 | 2,700 | |
Valuation allowance on impaired loans | 300 | 200 | |
Carrying Amount | Non-recurring basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying amount of impaired loans | 3,960 | 2,532 | |
Assets measured at fair value on non-recurring basis | |||
Other Real Estate | $ 175 | $ 175 |
FAIR VALUE - Summary of Estimat
FAIR VALUE - Summary of Estimated Fair Values and Carrying Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Cash and due from banks | $ 68,773 | $ 142,145 |
Interest-bearing deposits with banks | 31,684 | 153,223 |
Securities available for sale | 707,451 | 680,886 |
Securities held to maturity | 147,633 | 156,792 |
Accrued interest receivable | 13,057 | 11,236 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 68,773 | 142,145 |
Interest-bearing deposits with banks | 31,684 | 153,223 |
Securities available for sale | 707,451 | 680,886 |
Securities restricted | 28,068 | 24,028 |
Securities held to maturity | 149,512 | 160,163 |
Loans, net | 3,359,320 | 3,244,393 |
Derivatives | 7,663 | 6,363 |
Accrued interest receivable | 13,057 | 11,236 |
Financial liabilities: | ||
Certificates of deposit | 280,709 | 329,491 |
Demand and other deposits | 3,444,755 | 3,556,902 |
FHLB advances | 330,217 | 240,433 |
Repurchase agreements | 721 | 539 |
Subordinated debentures | 78,815 | 78,781 |
Derivatives | 5,772 | 2,215 |
Accrued interest payable | 590 | 1,524 |
Fair Value | ||
Financial assets: | ||
Cash and due from banks | 68,773 | 142,145 |
Interest-bearing deposits with banks | 31,684 | 153,223 |
Securities available for sale | 707,451 | 680,886 |
Securities held to maturity | 147,633 | 156,792 |
Loans, net | 3,346,699 | 3,216,204 |
Derivatives | 7,663 | 6,363 |
Accrued interest receivable | 13,057 | 11,236 |
Financial liabilities: | ||
Certificates of deposit | 279,236 | 326,865 |
Demand and other deposits | 3,444,755 | 3,556,902 |
FHLB advances | 327,499 | 236,209 |
Repurchase agreements | 721 | 539 |
Subordinated debentures | 78,058 | 74,400 |
Derivatives | 5,772 | 2,215 |
Accrued interest payable | 590 | 1,524 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and due from banks | 68,773 | 142,145 |
Interest-bearing deposits with banks | 31,684 | 153,223 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Loans, net | 0 | 0 |
Derivatives | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Certificates of deposit | 0 | 0 |
Demand and other deposits | 3,444,755 | 3,556,902 |
FHLB advances | 90,000 | 0 |
Repurchase agreements | 0 | 0 |
Subordinated debentures | 0 | 0 |
Derivatives | 0 | 0 |
Accrued interest payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Securities available for sale | 707,451 | 680,886 |
Securities held to maturity | 147,633 | 156,792 |
Loans, net | 0 | 0 |
Derivatives | 7,663 | 6,363 |
Accrued interest receivable | 2,980 | 2,936 |
Financial liabilities: | ||
Certificates of deposit | 279,236 | 326,865 |
Demand and other deposits | 0 | 0 |
FHLB advances | 237,499 | 236,209 |
Repurchase agreements | 721 | 539 |
Subordinated debentures | 78,058 | 74,400 |
Derivatives | 5,772 | 2,215 |
Accrued interest payable | 590 | 1,524 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Loans, net | 3,346,699 | 3,216,204 |
Derivatives | 0 | 0 |
Accrued interest receivable | 10,077 | 8,300 |
Financial liabilities: | ||
Certificates of deposit | 0 | 0 |
Demand and other deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Repurchase agreements | 0 | 0 |
Subordinated debentures | 0 | 0 |
Derivatives | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
LOANS - Major Classifications o
LOANS - Major Classifications of Loans and Lending Risk (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019USD ($)family | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 19, 2015USD ($) | |
Classifications of loans | |||||
Total loans | $ 3,383,714 | $ 3,268,772 | |||
Net deferred loan costs and fees | 7,390 | 7,039 | |||
Total loans held for investment | 3,391,104 | 3,275,811 | |||
Allowance for loan losses | (31,784) | (31,418) | $ (32,812) | $ (31,707) | |
Loans, net | 3,359,320 | 3,244,393 | |||
Commercial Real Estate | Mortgage loans | |||||
Classifications of loans | |||||
Total loans | 1,402,633 | 1,373,556 | |||
Allowance for loan losses | (11,099) | (10,792) | (11,334) | (11,048) | |
Lending Risk | |||||
Loan amount beyond which annual financial information is sought | 1,000 | ||||
Multi-family | Mortgage loans | |||||
Classifications of loans | |||||
Total loans | 624,114 | 585,827 | |||
Allowance for loan losses | $ (2,557) | (2,566) | (3,002) | (4,521) | |
Lending Risk | |||||
Number of families having income producing residential investment properties | family | 5 | ||||
Residential real estate mortgage loans | Mortgage loans | |||||
Classifications of loans | |||||
Total loans | $ 515,173 | 519,763 | |||
Allowance for loan losses | (3,374) | (3,935) | (3,495) | (2,438) | |
Commercial, industrial and agricultural loans | |||||
Classifications of loans | |||||
Total loans | 671,897 | 645,724 | |||
Allowance for loan losses | (13,073) | (12,722) | (14,055) | (12,838) | |
Real estate construction and land loans | |||||
Classifications of loans | |||||
Total loans | 147,116 | 123,393 | |||
Allowance for loan losses | (1,526) | (1,297) | (821) | (740) | |
Installment/consumer loans | |||||
Classifications of loans | |||||
Total loans | 22,781 | 20,509 | |||
Allowance for loan losses | (155) | (106) | $ (105) | $ (122) | |
CNB | |||||
Classifications of loans | |||||
Addition in acquired loans recorded at fair value | $ 729,400 | ||||
Fair value of loans acquired | $ 266,100 | 275,000 | |||
Maximum | Multi-family | Mortgage loans | |||||
Lending Risk | |||||
Loan-to-value ratio (as a percent) | 75.00% | ||||
Home equity | Residential real estate mortgage loans | Mortgage loans | |||||
Classifications of loans | |||||
Total loans | $ 68,624 | $ 71,248 | |||
Home equity | Minimum | Residential real estate mortgage loans | Mortgage loans | |||||
Lending Risk | |||||
Loan-to-value ratio (as a percent) | 80.00% |
LOANS - Categorized by Class an
LOANS - Categorized by Class and Internally Assigned Risk Grades (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loans by class categorized by internally assigned risk grades | ||
Total loans | $ 3,383,714 | $ 3,268,772 |
Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 3,292,817 | 3,180,905 |
Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 47,305 | 43,186 |
Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 43,592 | 44,681 |
Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | 0 |
Commercial Real Estate | Mortgage loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,402,633 | 1,373,556 |
Commercial Real Estate | Mortgage loans | Owner occupied | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 542,836 | 510,398 |
Commercial Real Estate | Mortgage loans | Owner occupied | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 513,116 | 480,503 |
Commercial Real Estate | Mortgage loans | Owner occupied | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 11,652 | 12,045 |
Commercial Real Estate | Mortgage loans | Owner occupied | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 18,068 | 17,850 |
Commercial Real Estate | Mortgage loans | Owner occupied | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | 0 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 859,797 | 863,158 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 845,486 | 858,069 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 10,564 | 2,188 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 3,747 | 2,901 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | 0 |
Multi-family | Mortgage loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 624,114 | 585,827 |
Multi-family | Mortgage loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 623,699 | 585,409 |
Multi-family | Mortgage loans | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 415 | 418 |
Multi-family | Mortgage loans | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | 0 |
Multi-family | Mortgage loans | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | 0 |
Residential real estate mortgage loans | Mortgage loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 515,173 | 519,763 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 446,549 | 448,515 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 436,967 | 438,891 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 8,278 | 8,510 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,304 | 1,114 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | 0 |
Residential real estate mortgage loans | Mortgage loans | Home equity | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 68,624 | 71,248 |
Residential real estate mortgage loans | Mortgage loans | Home equity | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 66,569 | 68,480 |
Residential real estate mortgage loans | Mortgage loans | Home equity | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 992 | 1,594 |
Residential real estate mortgage loans | Mortgage loans | Home equity | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,063 | 1,174 |
Residential real estate mortgage loans | Mortgage loans | Home equity | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | 0 |
Commercial, industrial and agricultural loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 671,897 | 645,724 |
Commercial, industrial and agricultural loans | Secured | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 163,638 | 168,540 |
Commercial, industrial and agricultural loans | Secured | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 151,751 | 147,474 |
Commercial, industrial and agricultural loans | Secured | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 2,762 | 5,536 |
Commercial, industrial and agricultural loans | Secured | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 9,125 | 15,530 |
Commercial, industrial and agricultural loans | Secured | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | 0 |
Commercial, industrial and agricultural loans | Unsecured | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 508,259 | 477,184 |
Commercial, industrial and agricultural loans | Unsecured | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 486,419 | 458,526 |
Commercial, industrial and agricultural loans | Unsecured | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 11,885 | 12,886 |
Commercial, industrial and agricultural loans | Unsecured | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 9,955 | 5,772 |
Commercial, industrial and agricultural loans | Unsecured | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | 0 |
Real estate construction and land loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 147,116 | 123,393 |
Real estate construction and land loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 146,816 | 123,089 |
Real estate construction and land loans | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | 0 |
Real estate construction and land loans | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 300 | 304 |
Real estate construction and land loans | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | 0 |
Installment/consumer loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 22,781 | 20,509 |
Installment/consumer loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 21,994 | 20,464 |
Installment/consumer loans | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 757 | 9 |
Installment/consumer loans | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 30 | 36 |
Installment/consumer loans | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | $ 0 | $ 0 |
LOANS - Past Due and Nonaccrual
LOANS - Past Due and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | $ 318 | $ 308 |
Nonaccrual Including 90 Days or More Past Due | 3,071 | 2,808 |
Total Past Due and Nonaccrual | 21,326 | 7,516 |
Current | 3,362,388 | 3,261,256 |
Total Loans | 3,383,714 | 3,268,772 |
30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 7,639 | 3,780 |
60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 10,298 | 620 |
Commercial Real Estate | Mortgage loans | ||
Past Due and Nonaccrual Loans | ||
Total Loans | 1,402,633 | 1,373,556 |
Commercial Real Estate | Mortgage loans | Owner occupied | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 580 | 253 |
Total Past Due and Nonaccrual | 1,770 | 780 |
Current | 541,066 | 509,618 |
Total Loans | 542,836 | 510,398 |
Commercial Real Estate | Mortgage loans | Owner occupied | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 1,190 | 333 |
Commercial Real Estate | Mortgage loans | Owner occupied | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 194 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 878 | 885 |
Total Past Due and Nonaccrual | 10,170 | 885 |
Current | 849,627 | 862,273 |
Total Loans | 859,797 | 863,158 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 0 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 9,292 | 0 |
Multi-family | Mortgage loans | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 0 |
Current | 624,114 | 585,827 |
Total Loans | 624,114 | 585,827 |
Multi-family | Mortgage loans | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 0 |
Multi-family | Mortgage loans | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 0 |
Residential real estate mortgage loans | Mortgage loans | ||
Past Due and Nonaccrual Loans | ||
Total Loans | 515,173 | 519,763 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 422 | 199 |
Total Past Due and Nonaccrual | 2,356 | 1,321 |
Current | 444,193 | 447,194 |
Total Loans | 446,549 | 448,515 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 1,934 | 892 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 230 |
Residential real estate mortgage loans | Mortgage loans | Home equity | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 318 | 308 |
Nonaccrual Including 90 Days or More Past Due | 622 | 624 |
Total Past Due and Nonaccrual | 1,957 | 1,965 |
Current | 66,667 | 69,283 |
Total Loans | 68,624 | 71,248 |
Residential real estate mortgage loans | Mortgage loans | Home equity | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 1,017 | 1,033 |
Residential real estate mortgage loans | Mortgage loans | Home equity | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 0 |
Commercial, industrial and agricultural loans | ||
Past Due and Nonaccrual Loans | ||
Total Loans | 671,897 | 645,724 |
Commercial, industrial and agricultural loans | Secured | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 197 | 174 |
Total Past Due and Nonaccrual | 1,384 | 700 |
Current | 162,254 | 167,840 |
Total Loans | 163,638 | 168,540 |
Commercial, industrial and agricultural loans | Secured | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 1,137 | 330 |
Commercial, industrial and agricultural loans | Secured | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 50 | 196 |
Commercial, industrial and agricultural loans | Unsecured | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 342 | 621 |
Total Past Due and Nonaccrual | 3,659 | 1,729 |
Current | 504,600 | 475,455 |
Total Loans | 508,259 | 477,184 |
Commercial, industrial and agricultural loans | Unsecured | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 2,361 | 1,108 |
Commercial, industrial and agricultural loans | Unsecured | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 956 | 0 |
Real estate construction and land loans | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 0 |
Current | 147,116 | 123,393 |
Total Loans | 147,116 | 123,393 |
Real estate construction and land loans | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 0 |
Real estate construction and land loans | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 0 |
Installment/consumer loans | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 30 | 52 |
Total Past Due and Nonaccrual | 30 | 136 |
Current | 22,751 | 20,373 |
Total Loans | 22,781 | 20,509 |
Installment/consumer loans | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 84 |
Installment/consumer loans | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | $ 0 | $ 0 |
LOANS - Impaired Loans (Details
LOANS - Impaired Loans (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)loanproperty | Mar. 31, 2018USD ($)loan | Dec. 31, 2018USD ($)loanproperty | |
Impaired loans | |||
Loans modified as TDRs | $ 3,200 | ||
Recorded Investment | |||
With no related allowance recorded | 11,885 | $ 16,634 | |
With an allowance recorded | 4,259 | 2,721 | |
Total impaired loans | 16,144 | 19,355 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 11,903 | 16,644 | |
With an allowance recorded | 4,259 | 2,721 | |
Total impaired loans | 16,162 | 19,365 | |
Related Allocated Allowance | |||
With an allowance recorded | 299 | 189 | |
Total impaired loans | 299 | 189 | |
Average Recorded Investment | |||
With no related allowance recorded | 10,368 | $ 24,822 | |
With an allowance recorded | 3,942 | 1,708 | |
Average recorded investment in impaired loans | 14,310 | 26,530 | |
Interest Income Recognized | |||
With no related allowance recorded | 126 | 169 | |
With an allowance recorded | 36 | 0 | |
Total impaired loans | 162 | $ 169 | |
Other real estate | $ 175 | $ 175 | |
Other real estate owned, number of properties | property | 1 | 1 | |
Number of loans modified as TDRs for which there was a payment default within twelve months following the modification | loan | 1 | 0 | |
Commercial Real Estate | Mortgage loans | Owner occupied | |||
Recorded Investment | |||
With no related allowance recorded | $ 595 | $ 268 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 595 | 268 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 608 | 278 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 608 | 278 | |
Related Allocated Allowance | |||
With an allowance recorded | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Average Recorded Investment | |||
With no related allowance recorded | 483 | $ 2,073 | |
With an allowance recorded | 0 | 0 | |
Average recorded investment in impaired loans | 483 | 2,073 | |
Interest Income Recognized | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Commercial Real Estate | Mortgage loans | Non-owner occupied | |||
Recorded Investment | |||
With no related allowance recorded | 2,777 | 2,816 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 2,777 | 2,816 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 2,781 | 2,816 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 2,781 | 2,816 | |
Related Allocated Allowance | |||
With an allowance recorded | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Average Recorded Investment | |||
With no related allowance recorded | 2,786 | 8,973 | |
With an allowance recorded | 0 | 0 | |
Average recorded investment in impaired loans | 2,786 | 8,973 | |
Interest Income Recognized | |||
With no related allowance recorded | 25 | 76 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 25 | 76 | |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | |||
Recorded Investment | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Related Allocated Allowance | |||
With an allowance recorded | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Average Recorded Investment | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Average recorded investment in impaired loans | 0 | 0 | |
Interest Income Recognized | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Residential real estate mortgage loans | Mortgage loans | Home equity | |||
Recorded Investment | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Related Allocated Allowance | |||
With an allowance recorded | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Average Recorded Investment | |||
With no related allowance recorded | 0 | 100 | |
With an allowance recorded | 0 | 0 | |
Average recorded investment in impaired loans | 0 | 100 | |
Interest Income Recognized | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Commercial, industrial and agricultural loans | |||
Impaired loans | |||
Loans modified as TDRs | 3,200 | 6,700 | |
Commercial, industrial and agricultural loans | Secured | |||
Recorded Investment | |||
With no related allowance recorded | 1,644 | 8,234 | |
With an allowance recorded | 4,259 | 2,721 | |
Total impaired loans | 5,903 | 10,955 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 1,644 | 8,234 | |
With an allowance recorded | 4,259 | 2,721 | |
Total impaired loans | 5,903 | 10,955 | |
Related Allocated Allowance | |||
With an allowance recorded | 299 | 189 | |
Total impaired loans | 299 | 189 | |
Average Recorded Investment | |||
With no related allowance recorded | 1,482 | 8,744 | |
With an allowance recorded | 3,942 | 0 | |
Average recorded investment in impaired loans | 5,424 | 8,744 | |
Interest Income Recognized | |||
With no related allowance recorded | 16 | 56 | |
With an allowance recorded | 36 | 0 | |
Total impaired loans | 52 | 56 | |
Commercial, industrial and agricultural loans | Unsecured | |||
Recorded Investment | |||
With no related allowance recorded | 6,869 | 5,316 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 6,869 | 5,316 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 6,870 | 5,316 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 6,870 | 5,316 | |
Related Allocated Allowance | |||
With an allowance recorded | 0 | ||
Total impaired loans | 0 | ||
Average Recorded Investment | |||
With no related allowance recorded | 5,617 | 4,932 | |
With an allowance recorded | 0 | 1,708 | |
Average recorded investment in impaired loans | 5,617 | 6,640 | |
Interest Income Recognized | |||
With no related allowance recorded | 85 | 37 | |
With an allowance recorded | 0 | 0 | |
Total impaired loans | 85 | $ 37 | |
Taxi medallion loans | |||
Impaired loans | |||
Loans modified as TDRs | $ 2,700 | ||
Interest Income Recognized | |||
Number of loans modified as TDRs for which there was a payment default within twelve months following the modification | loan | 3 | ||
Non-recurring basis | |||
Recorded Investment | |||
With an allowance recorded | 4,300 | $ 2,700 | |
Related Allocated Allowance | |||
With an allowance recorded | 300 | 200 | |
Non-recurring basis | Carrying Amount | |||
Interest Income Recognized | |||
Other real estate | 175 | 175 | |
Non-recurring basis | Carrying Amount | Other real estate owned | |||
Interest Income Recognized | |||
Other real estate | $ 200 | $ 200 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)loan | Mar. 31, 2018USD ($)loan | Dec. 31, 2018USD ($)loan | |
Troubled Debt Restructurings | |||
Loans modified as TDRs | $ 3,200 | ||
Period of modified contractually past due loans to be considered as payment default | 30 days | ||
Charge offs relating to TDRs | $ 6 | $ 0 | |
Number of loans modified as TDRs for which there was a payment default within twelve months following the modification | loan | 1 | 0 | |
Nonaccrual TDRs loans | $ 119 | $ 133 | |
Amount of current and performing TDR loans | 16,300 | 16,900 | |
Post-Modification of other than TDRs, recorded investment | $ 10,900 | ||
Commercial, industrial and agricultural loans | |||
Troubled Debt Restructurings | |||
Modified loans | loan | 3 | 6 | |
Loans modified as TDRs | $ 3,200 | $ 6,700 | |
Taxi medallion loans | |||
Troubled Debt Restructurings | |||
Modified loans | loan | 1 | ||
Loans modified as TDRs | $ 2,700 | ||
Number of loans modified as TDRs for which there was a payment default within twelve months following the modification | loan | 3 |
LOANS - Purchased Credit Impair
LOANS - Purchased Credit Impaired Loans (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Jun. 19, 2015 | Feb. 14, 2014 | Mar. 31, 2019 | Dec. 31, 2018 | |
FNBNY | ||||
Acquired Loans | ||||
Contractually required principal and interest payments receivable | $ 40.3 | |||
Expected cash flows | 28.4 | |||
Fair value (initial carrying amount) of purchased credit impaired loans | 21.8 | |||
Non-accretable difference | 11.9 | |||
Initial accretable yield | $ 6.6 | |||
Outstanding balance of purchased credit impaired loans | $ 1.1 | $ 1.1 | ||
Carrying amount of purchased credit impaired loans | 0.5 | 0.5 | ||
Remaining non-accretable difference | 0.5 | 0.5 | ||
CNB | ||||
Acquired Loans | ||||
Contractually required principal and interest payments receivable | $ 23.4 | |||
Expected cash flows | 10.1 | |||
Fair value (initial carrying amount) of purchased credit impaired loans | 8.7 | |||
Non-accretable difference | 13.3 | |||
Initial accretable yield | $ 1.4 | |||
Outstanding balance of purchased credit impaired loans | 0.9 | 1.2 | ||
Carrying amount of purchased credit impaired loans | 0.1 | 0.1 | ||
Remaining non-accretable difference | $ 0.6 | $ 0.8 |
LOANS - Summary of Activity in
LOANS - Summary of Activity in the Accretable Yield for PCI Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Activity in the accretable yield for the PCI loans: | ||
Balance at beginning of period | $ 460 | $ 2,151 |
Accretion | (108) | (1,033) |
Reclassification (to) from nonaccretable difference during the period | 11 | (161) |
Accretable discount at end of period | $ 363 | $ 957 |
ALLOWANCE FOR LOAN LOSSES - Bal
ALLOWANCE FOR LOAN LOSSES - Balances in Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | $ 299 | $ 189 | ||
Collectively evaluated for impairment | 31,485 | 31,229 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 31,784 | 31,418 | $ 32,812 | $ 31,707 |
Loans: | ||||
Individually evaluated for impairment | 16,144 | 19,355 | ||
Collectively evaluated for impairment | 3,367,014 | 3,248,885 | ||
Loans acquired with deteriorated credit quality | 556 | 532 | ||
Total Loans | 3,383,714 | 3,268,772 | ||
Commercial Real Estate | Mortgage loans | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 11,099 | 10,792 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 11,099 | 10,792 | 11,334 | 11,048 |
Loans: | ||||
Individually evaluated for impairment | 3,372 | 3,084 | ||
Collectively evaluated for impairment | 1,399,261 | 1,370,472 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Loans | 1,402,633 | 1,373,556 | ||
Multi-family | Mortgage loans | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 2,557 | 2,566 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 2,557 | 2,566 | 3,002 | 4,521 |
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 624,114 | 585,827 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Loans | 624,114 | 585,827 | ||
Residential real estate mortgage loans | Mortgage loans | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 3,374 | 3,935 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 3,374 | 3,935 | 3,495 | 2,438 |
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 514,855 | 519,455 | ||
Loans acquired with deteriorated credit quality | 318 | 308 | ||
Total Loans | 515,173 | 519,763 | ||
Commercial, industrial and agricultural loans | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 299 | 189 | ||
Collectively evaluated for impairment | 12,774 | 12,533 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 13,073 | 12,722 | 14,055 | 12,838 |
Loans: | ||||
Individually evaluated for impairment | 12,772 | 16,271 | ||
Collectively evaluated for impairment | 658,887 | 629,229 | ||
Loans acquired with deteriorated credit quality | 238 | 224 | ||
Total Loans | 671,897 | 645,724 | ||
Real estate construction and land loans | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,526 | 1,297 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 1,526 | 1,297 | 821 | 740 |
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 147,116 | 123,393 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Loans | 147,116 | 123,393 | ||
Installment/consumer loans | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 155 | 106 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 155 | 106 | $ 105 | $ 122 |
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 22,781 | 20,509 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Loans | $ 22,781 | $ 20,509 |
ALLOWANCE FOR LOAN LOSSES - Cha
ALLOWANCE FOR LOAN LOSSES - Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Allowance for Loan Losses | |||
Beginning balance | $ 31,418 | $ 31,707 | $ 31,707 |
Charge-offs | (246) | 0 | |
Recoveries | 12 | 305 | |
Provision (Credit) | 600 | 800 | |
Ending balance | 31,784 | 32,812 | 31,418 |
Commercial Real Estate | Mortgage loans | |||
Allowance for Loan Losses | |||
Beginning balance | 10,792 | 11,048 | 11,048 |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision (Credit) | 307 | 286 | |
Ending balance | 11,099 | 11,334 | 10,792 |
Multi-family | Mortgage loans | |||
Allowance for Loan Losses | |||
Beginning balance | 2,566 | 4,521 | 4,521 |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision (Credit) | (9) | (1,519) | |
Ending balance | 2,557 | 3,002 | 2,566 |
Residential real estate mortgage loans | Mortgage loans | |||
Allowance for Loan Losses | |||
Beginning balance | 3,935 | 2,438 | 2,438 |
Charge-offs | 0 | 0 | |
Recoveries | 1 | 1 | |
Provision (Credit) | (562) | 1,056 | |
Ending balance | 3,374 | 3,495 | 3,935 |
Commercial, industrial and agricultural loans | |||
Allowance for Loan Losses | |||
Beginning balance | 12,722 | 12,838 | 12,838 |
Charge-offs | (242) | 0 | |
Recoveries | 11 | 304 | |
Provision (Credit) | 582 | 913 | |
Ending balance | 13,073 | 14,055 | 12,722 |
Real estate construction and land loans | |||
Allowance for Loan Losses | |||
Beginning balance | 1,297 | 740 | 740 |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision (Credit) | 229 | 81 | |
Ending balance | 1,526 | 821 | 1,297 |
Installment/consumer loans | |||
Allowance for Loan Losses | |||
Beginning balance | 106 | 122 | 122 |
Charge-offs | (4) | 0 | |
Recoveries | 0 | 0 | |
Provision (Credit) | 53 | (17) | |
Ending balance | $ 155 | $ 105 | $ 106 |
PENSION AND POSTRETIREMENT PL_2
PENSION AND POSTRETIREMENT PLANS Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to the plan | $ 0 | $ 0 |
SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Distribution from the plan | $ 28 | $ 28 |
PENSION AND POSTRETIREMENT PL_3
PENSION AND POSTRETIREMENT PLANS - Components of Net Periodic Benefit Cost (Credit): (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Benefits | ||
Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income | ||
Service cost | $ 273 | $ 325 |
Interest cost | 225 | 197 |
Expected return on plan assets | (608) | (625) |
Amortization of net loss | 130 | 83 |
Amortization of prior service credit | (19) | (19) |
Amortization of transition obligation | 0 | 0 |
Net periodic benefit (credit) cost | 1 | (39) |
SERP Benefits | ||
Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income | ||
Service cost | 65 | 73 |
Interest cost | 37 | 32 |
Expected return on plan assets | 0 | 0 |
Amortization of net loss | 18 | 30 |
Amortization of prior service credit | 0 | 0 |
Amortization of transition obligation | 0 | 1 |
Net periodic benefit (credit) cost | $ 120 | $ 136 |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Securities sold under agreements to repurchase | |||
Repurchase agreements | $ 721 | $ 539 | |
Carrying amount of U.S. GSE residential collateralized mortgage obligations and U.S. GSE residential mortgage-backed securities | $ 2,400 | $ 2,400 | |
Maturing during the second quarter | |||
Securities sold under agreements to repurchase | |||
Repurchase agreements | $ 700 | ||
U.S. GSE residential collateralized mortgage obligations | |||
Securities sold under agreements to repurchase | |||
Percentage of investment securities held as collateral | 18.00% | 18.00% | |
U.S. GSE residential mortgage-backed securities | |||
Securities sold under agreements to repurchase | |||
Percentage of investment securities held as collateral | 82.00% | 82.00% |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES - Contractual Maturities and Weighted Average Interest Rates of FHLB Advances (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Contractual Maturity, Amount | ||
Overnight | $ 90,000 | |
2019 | 240,217 | $ 240,433 |
Total FHLB advances | $ 330,217 | $ 240,433 |
Weighted Average Rate | ||
Overnight (as a percent) | 2.66% | |
2019 (as a percent) | 2.68% | 2.72% |
Weighted Average Rate for total FHLB advances (as a percent) | 2.67% | 2.72% |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES - Narrative (Details) - USD ($) $ in Billions | Mar. 31, 2019 | Dec. 31, 2018 |
FEDERAL HOME LOAN BANK ADVANCES. | ||
Advances collateralized amount | $ 1.3 | $ 1.3 |
Maximum borrowing amount from FHLB term advances | $ 1.4 |
SUBORDINATED DEBENTURES (Detail
SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Sep. 30, 2015 | Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Fixed-to-floating rate subordinated debentures | $ 80,000 | ||
Subordinated debentures, net | $ 78,815 | $ 78,781 | |
Subordinated Debentures | Callable Notes After Five Years | |||
Debt Instrument [Line Items] | |||
Fixed-to-floating rate subordinated debentures | $ 40,000 | ||
Fixed annual interest rate | 5.25% | ||
Debt instrument variable rate description | three-month LIBOR | ||
Basis points | 3.60% | ||
Subordinated Debentures | Callable Notes After Ten Years | |||
Debt Instrument [Line Items] | |||
Fixed-to-floating rate subordinated debentures | $ 40,000 | ||
Fixed annual interest rate | 5.75% | ||
Debt instrument variable rate description | three-month LIBOR | ||
Basis points | 3.45% |
DERIVATIVES - Interest Rate Swa
DERIVATIVES - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - Interest rate swaps - Derivative designated as a cash flow hedge - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivatives | ||
Notional amounts | $ 315,000 | $ 240,000 |
Weighted average pay rates (as a percent) | 1.84% | 1.84% |
Weighted average receive rates (as a percent) | 2.61% | 2.77% |
Weighted average maturity | 2 years 4 months 13 days | 2 years 11 days |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Derivative liability position net | $ 4,300 | ||
Derivative asset position net | 1,700 | ||
Collateral received against obligations in net asset position | 1,600 | ||
Collateral posted in net liability position | 4,000 | ||
Interest rate swaps | Derivative designated as a cash flow hedge | |||
Derivative [Line Items] | |||
Notional amounts | 315,000 | $ 240,000 | |
Interest rate swaps | Derivative designated as a cash flow hedge | Federal Home Loan Bank of New York | |||
Derivative [Line Items] | |||
Interest (income) expense on derivative | (556) | $ 65 | |
Reduction to interest expense | (556) | ||
Reclassified estimated decrease in interest expense | $ 1,700 |
DERIVATIVES - Net Gains (Losses
DERIVATIVES - Net Gains (Losses) Relating to the Cash Flow Derivative Instruments (Details) - Derivative designated as a cash flow hedge - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income | ||
Interest rate contracts, Amount of gain (loss) recognized in OCI (Effective Portion) | $ (1,597) | $ 2,827 |
Interest rate contracts, Amount of gain (loss) reclassified from OCI to interest expense | 556 | (65) |
Interest rate contracts, Amount of loss recognized in other non-interest income (Ineffective Portion) | $ 0 | $ 0 |
DERIVATIVES - Cash Flow Hedges
DERIVATIVES - Cash Flow Hedges included in the Consolidated Balance Sheets (Details) - Derivative designated as a cash flow hedge - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Interest rate swaps | Federal Home Loan Bank of New York | Forward contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 75,000 | $ 0 |
Fair Value Asset | 0 | 0 |
Fair Value Liability | (771) | 0 |
Interest rate swaps related to FHLB advances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 240,000 | 240,000 |
Fair Value Asset | 2,767 | 4,239 |
Fair Value Liability | $ (24) | $ (4) |
DERIVATIVES - Non-Designated He
DERIVATIVES - Non-Designated Hedges (Details) - Interest rate swaps - Non-Designated Hedges - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivatives | ||
Notional amounts | $ 279,974 | $ 193,401 |
Weighted average pay rates (as a percent) | 4.48% | 4.52% |
Weighted average receive rates (as a percent) | 4.48% | 4.52% |
Weighted average maturity | 12 years 5 months 16 days | 12 years 3 months |
Fair value of combined interest rate swaps | $ 0 | $ 0 |
LEASES (Details)
LEASES (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease cost | |
Operating lease cost | $ 1,663 |
Sublease income | (24) |
Total lease cost | 1,639 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 1,669 |
Weighted-average remaining lease term-operating leases | 8 years 4 months 24 days |
Weighted-average discount rate-operating leases | 3.41% |
Renewal options | true |
Minimum | |
Lease cost | |
Renewal term | 5 years |
Maximum | |
Lease cost | |
Renewal term | 10 years |
LEASES - Maturities of operatin
LEASES - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Maturities of operating lease liabilities as of March 31, 2019 | ||
2019 | $ 4,532 | |
2020 | 5,927 | |
2021 | 5,824 | |
2022 | 5,617 | |
2023 | 4,630 | |
Thereafter | 20,566 | |
Total operating lease payments | 47,096 | |
Less: Interest | (6,642) | |
Present value of operating lease liabilities | $ 40,454 | |
Maturities of operating lease liabilities as of December 31, 2018 | ||
2019 | $ 7,248 | |
2020 | 6,504 | |
2021 | 6,185 | |
2022 | 5,903 | |
2023 | 4,695 | |
Thereafter | 18,687 | |
Total operating lease payments | $ 49,222 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Components and Related Income Tax Effects (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME. | ||
Unrealized holding gains (losses) on available for sale securities | $ 5,531 | $ (8,587) |
Income tax effect | (1,613) | 2,499 |
Net change in unrealized gains (losses) on available for sale securities | 3,918 | (6,088) |
Reclassification adjustment for amortization realized in income | 128 | 95 |
Income tax effect | (38) | (28) |
Net change in post-retirement obligation | 90 | 67 |
Change in fair value of derivatives used for cash flow hedges | (1,597) | 2,827 |
Reclassification adjustment for (gains) losses realized in income | (556) | 65 |
Income tax effect | 628 | (841) |
Net change in unrealized (losses) gains on cash flow hedges | (1,525) | 2,051 |
Other comprehensive income (loss) | $ 2,483 | $ (3,970) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Summary of the Accumulated Other Comprehensive Loss Balances, Net of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Unrealized (losses) gains on available for sale securities | ||
Balance at the beginning of the period | $ 11,685 | |
Current Period Change | 3,918 | $ (6,088) |
Balance at the end of the period | 7,767 | |
Unrealized (losses) gains on pension benefits | ||
Balance at the beginning of the period | (6,365) | |
Current Period Change | 90 | 67 |
Balance at the end of the period | (6,275) | |
Unrealized gains (losses) on cash flow hedges | ||
Balance at the beginning of the period | 2,938 | |
Current Period Change | (1,525) | 2,051 |
Balance at the end of the period | 1,413 | |
Accumulated other comprehensive (loss) gain, net of income taxes | ||
Balance at the beginning of the period | (15,112) | |
Current Period Change | 2,483 | $ (3,970) |
Balance at the end of the period | $ (12,629) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Reclassifications out of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Amounts Reclassified from AOCI | ||
Interest expense | $ 10,192 | $ 6,825 |
Income tax (expense) benefit | 3,415 | 3,181 |
Net income | 12,927 | 12,073 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Amounts Reclassified from AOCI | ||
Total reclassifications, before income tax | 427 | (160) |
Income tax (expense) benefit | (125) | 47 |
Net income | 302 | (113) |
Amount Reclassified from Accumulated Other Comprehensive Income | Prior service credit | ||
Amounts Reclassified from AOCI | ||
Other operating expenses | 19 | 19 |
Amount Reclassified from Accumulated Other Comprehensive Income | Transition obligation | ||
Amounts Reclassified from AOCI | ||
Other operating expenses | (1) | |
Amount Reclassified from Accumulated Other Comprehensive Income | Actuarial losses | ||
Amounts Reclassified from AOCI | ||
Other operating expenses | (148) | (113) |
Amount Reclassified from Accumulated Other Comprehensive Income | Realized gains (losses) on cash flow hedges | ||
Amounts Reclassified from AOCI | ||
Interest expense | $ 556 | $ (65) |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS - ASU (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Leases | ||
Operating lease right-of-use assets | $ 37,621 | |
Operating Lease, Liability | $ 40,454 | |
ASU 2016-02 | Measurement Period Adjustments | ||
Leases | ||
Operating lease right-of-use assets | $ 39,000 | |
Operating Lease, Liability | $ 39,000 |