Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2020 | Jun. 30, 2019 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | BRIDGE BANCORP, INC. | ||
Entity Central Index Key | 0000846617 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 484,470,967 | ||
Entity Common Stock, Shares Outstanding | 19,842,716 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 77,693 | $ 142,145 |
Interest-bearing deposits with banks | 39,501 | 153,223 |
Total cash and cash equivalents | 117,194 | 295,368 |
Securities available for sale, at fair value | 638,291 | 680,886 |
Securities held to maturity (fair value of $135,027 and $156,792, respectively) | 133,638 | 160,163 |
Total securities | 771,929 | 841,049 |
Securities, restricted | 32,879 | 24,028 |
Loans held for sale | 12,643 | |
Loans held for investment | 3,680,285 | 3,275,811 |
Allowance for loan losses | (32,786) | (31,418) |
Loans, net | 3,647,499 | 3,244,393 |
Premises and equipment, net | 34,062 | 35,008 |
Operating lease right-of-use assets | 43,450 | |
Accrued interest receivable | 10,908 | 11,236 |
Goodwill | 105,950 | 105,950 |
Other intangible assets | 3,677 | 4,374 |
Prepaid pension | 10,988 | 10,263 |
Bank owned life insurance | 91,942 | 89,712 |
Other real estate owned | 175 | |
Other assets | 38,399 | 39,188 |
Total assets | 4,921,520 | 4,700,744 |
Liabilities | ||
Demand deposits | 1,518,958 | 1,448,605 |
Savings, NOW and money market deposits | 1,987,712 | 2,108,297 |
Certificates of deposit of $100,000 or more | 214,093 | 207,087 |
Other time deposits | 93,884 | 122,404 |
Total deposits | 3,814,647 | 3,886,393 |
Repurchase agreements | 999 | 539 |
Federal Home Loan Bank ("FHLB") advances | 435,000 | 240,433 |
Subordinated debentures, net | 78,920 | 78,781 |
Operating lease liabilities | 45,977 | |
Other liabilities and accrued expenses | 48,823 | 40,768 |
Total liabilities | 4,424,366 | 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; 19,898,022 and 19,815,680 shares issued, respectively; and 19,836,797 and 19,790,884 shares outstanding, respectively) | 199 | 198 |
Surplus | 356,436 | 352,093 |
Retained earnings | 150,703 | 117,432 |
Treasury stock at cost, 61,225 and 24,796 shares, respectively | (1,843) | (781) |
Total stockholders' equity before accumulated other comprehensive income (loss) | 505,495 | 468,942 |
Accumulated other comprehensive loss, net of income taxes | (8,341) | (15,112) |
Total stockholders' equity | 497,154 | 453,830 |
Total liabilities and stockholders' equity | $ 4,921,520 | $ 4,700,744 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Securities held to maturity, fair value (in dollars) | $ 135,027 | $ 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 | 19,898,022 | 19,815,680 |
Common stock, shares outstanding | 19,836,797 | 19,790,884 |
Treasury Stock, shares | 61,225 | 24,796 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Loans (including fee income) | $ 158,228 | $ 144,380 | $ 126,420 |
Mortgage-backed securities, CMOs and other asset-backed securities | 16,182 | 16,591 | 15,231 |
U.S. GSE securities | 465 | 837 | 1,198 |
State and municipal obligations | 2,234 | 2,812 | 3,788 |
Corporate bonds | 1,200 | 1,422 | 1,233 |
Deposits with banks | 1,697 | 1,076 | 278 |
Other interest and dividend income | 1,535 | 1,866 | 1,701 |
Total interest income | 181,541 | 168,984 | 149,849 |
Interest expense: | |||
Savings, NOW and money market deposits | 23,687 | 15,928 | 7,858 |
Certificates of deposit of $100,000 or more | 4,270 | 3,007 | 1,843 |
Other time deposits | 1,502 | 1,801 | 725 |
Federal funds purchased and repurchase agreements | 767 | 1,200 | 1,571 |
FHLB advances | 4,573 | 5,729 | 6,105 |
Subordinated debentures | 4,539 | 4,539 | 4,539 |
Junior subordinated debentures | 48 | ||
Total interest expense | 39,338 | 32,204 | 22,689 |
Net interest income | 142,203 | 136,780 | 127,160 |
Provision for loan losses | 5,700 | 1,800 | 14,050 |
Net interest income after provision for loan losses | 136,503 | 134,980 | 113,110 |
Non-interest income: | |||
Service charges and other fees | 10,059 | 9,853 | 8,996 |
Net securities gains (losses) | 201 | (7,921) | 38 |
Title fees | 1,720 | 1,797 | 2,394 |
Gain on sale of Small Business Administration ("SBA") loans | 1,984 | 2,078 | 1,689 |
Bank owned life insurance | 2,230 | 2,219 | 2,250 |
Loan swap fees | 7,460 | 716 | 1,008 |
Other | 1,733 | 2,826 | 1,727 |
Total non-interest income | 25,387 | 11,568 | 18,102 |
Non-interest expense: | |||
Salaries and employee benefits | 56,244 | 50,458 | 46,560 |
Occupancy and equipment | 14,372 | 13,245 | 13,998 |
Technology and communications | 7,905 | 6,465 | 5,753 |
Marketing and advertising | 4,740 | 4,597 | 4,742 |
Professional services | 3,797 | 4,004 | 3,153 |
FDIC assessments | 608 | 1,665 | 1,310 |
Net fraud loss | 8,900 | ||
Office relocation costs | 750 | ||
Restructuring Costs | 8,020 | ||
Amortization of other intangible assets | 787 | 917 | 1,047 |
Other | 7,686 | 7,179 | 7,144 |
Total non-interest expense | 96,139 | 98,180 | 91,727 |
Income before income taxes | 65,751 | 48,368 | 39,485 |
Income tax expense | 14,060 | 9,141 | 18,946 |
Net income | $ 51,691 | $ 39,227 | $ 20,539 |
Basic earnings per share (in dollars per share) | $ 2.59 | $ 1.97 | $ 1.04 |
Diluted earnings per share (in dollars per share) | $ 2.59 | $ 1.97 | $ 1.04 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 51,691 | $ 39,227 | $ 20,539 |
Other comprehensive income (loss): | |||
Change in unrealized net gains (losses) on securities available for sale, net of reclassifications and deferred income taxes | 10,856 | (348) | (505) |
Adjustment to pension liability, net of reclassifications and deferred income taxes | (410) | (832) | 193 |
Unrealized (losses) gains on cash flow hedges, net of reclassifications and deferred income taxes | (3,675) | 1,007 | 1,089 |
Total other comprehensive income (loss) | 6,771 | (173) | 777 |
Comprehensive income | $ 58,462 | $ 39,054 | $ 21,316 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2016 | $ 191 | $ 329,427 | $ 91,594 | $ (161) | $ (13,064) | $ 407,987 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 20,539 | 20,539 | ||||
Shares issued under the dividend reinvestment plan (“DRP”) | 951 | 951 | ||||
Stock awards granted and distributed | 1 | (434) | 433 | |||
Stock awards forfeited | 218 | (218) | ||||
Repurchase of surrendered stock from vesting of stock plans | (350) | (350) | ||||
Share based compensation expense | 2,585 | 2,585 | ||||
Cash dividend declared, $0.92 per share | (18,238) | (18,238) | ||||
Shares issued for trust preferred securities conversions (529,292 shares at December 31, 2017) | 5 | 14,944 | 14,949 | |||
Impact of Tax Cuts and Jobs Act related to accumulated other comprehensive income reclassification | (2,652) | 2,652 | ||||
Other comprehensive income (loss), net of deferred income taxes | 777 | 777 | ||||
Balance at Dec. 31, 2017 | 197 | 347,691 | 96,547 | (296) | (14,939) | 429,200 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 39,227 | 39,227 | ||||
Shares issued under the dividend reinvestment plan (“DRP”) | 954 | 954 | ||||
Shares issued under the Employee Stock Purchase Plan | 63 | 63 | ||||
Stock awards granted and distributed | 1 | (539) | 538 | |||
Stock awards forfeited | 437 | (437) | ||||
Repurchase of surrendered stock from vesting of stock plans | (586) | (586) | ||||
Share based compensation expense | 3,487 | 3,487 | ||||
Cash dividend declared, $0.92 per share | (18,342) | (18,342) | ||||
Other comprehensive income (loss), net of deferred income taxes | (173) | (173) | ||||
Balance at Dec. 31, 2018 | 198 | 352,093 | 117,432 | (781) | (15,112) | 453,830 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 51,691 | 51,691 | ||||
Shares issued under the dividend reinvestment plan (“DRP”) | 867 | 867 | ||||
Shares issued under the Employee Stock Purchase Plan | 235 | 235 | ||||
Purchase of treasury stock | (625) | (625) | ||||
Stock awards granted and distributed | 1 | (988) | 987 | |||
Stock awards forfeited | 555 | (555) | ||||
Repurchase of surrendered stock from vesting of stock plans | (18) | (869) | (887) | |||
Share based compensation expense | 3,692 | 3,692 | ||||
Cash dividend declared, $0.92 per share | (18,420) | (18,420) | ||||
Other comprehensive income (loss), net of deferred income taxes | 6,771 | 6,771 | ||||
Balance at Dec. 31, 2019 | $ 199 | $ 356,436 | $ 150,703 | $ (1,843) | $ (8,341) | $ 497,154 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | |||
Shares issued under the dividend reinvestment plan (“DRP”) (in shares) | 24,529 | 25,154 | 24,981 |
Shares issued for trust preferred securities conversions (in shares) | 529,292 | ||
Shares issued under the Employee Stock Purchase Plan ("ESPP"), net of offering costs (in shares) | 7,888 | 3,758 | |
Purchase of treasury stock (in shares) | 22,600 | ||
Stock awards granted and distributed (in shares) | 82,210 | 84,910 | 72,979 |
Stock awards forfeited (in shares) | 19,531 | 15,225 | 8,213 |
Repurchase of surrendered stock from vesting of stock plans | 26,583 | 17,073 | 10,068 |
Cash dividend declared (in dollars per share) | $ 0.92 | $ 0.92 | $ 0.92 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 51,691 | $ 39,227 | $ 20,539 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 5,700 | 1,800 | 14,050 |
Depreciation and amortization of premises and equipment | 4,253 | 3,822 | 3,827 |
Net (accretion) and other amortization | (1,375) | (2,093) | (7,936) |
Net amortization on securities | 4,365 | 4,009 | 6,361 |
Increase in cash surrender value of bank owned life insurance | (2,230) | (2,219) | (2,250) |
Amortization of intangible assets | 787 | 917 | 1,047 |
Share based compensation expense | 3,692 | 3,487 | 2,585 |
Net securities (gains) losses | (201) | 7,921 | (38) |
Decrease (increase) in accrued interest receivable | 328 | 416 | (1,419) |
SBA loans originated for sale | (27,419) | (28,340) | (18,596) |
Proceeds from sale of the guaranteed portion of SBA loans | 29,922 | 30,898 | 20,667 |
Gain on sale of the guaranteed portion of SBA loans | (1,984) | (2,078) | (1,689) |
(Gain) loss on sale of loans | (441) | 58 | |
Decrease (increase) in other assets | 3,942 | (2,373) | 5,426 |
(Decrease) increase in accrued expenses and other liabilities | (1,509) | 3,430 | 4,194 |
Net cash provided by operating activities | 69,962 | 58,383 | 46,826 |
Cash flows from investing activities: | |||
Purchases of securities available for sale | (141,297) | (255,746) | (116,956) |
Purchases of securities, restricted | (97,206) | (505,272) | (654,017) |
Purchases of securities held to maturity | (1,000) | (4,128) | |
Proceeds from sales of securities available for sale | 46,478 | 230,372 | 52,367 |
Redemption of securities, restricted | 88,355 | 516,593 | 653,411 |
Maturities, calls and principal payments of securities available for sale | 149,456 | 92,818 | 118,092 |
Maturities, calls and principal payments of securities held to maturity | 25,642 | 20,851 | 45,334 |
Net increase in loans | (421,024) | (213,973) | (526,989) |
Proceeds from loan sale | 40,133 | 23,171 | |
Proceeds from sales of other real estate owned ("OREO"), net | 297 | ||
Purchase of premises and equipment | (3,307) | (5,325) | (2,069) |
Net cash used in investing activities | (352,606) | (80,549) | (411,784) |
Cash flows from financing activities: | |||
Net (decrease) increase in deposits | (71,728) | 551,891 | 408,597 |
Net decrease in federal funds purchased | (50,000) | (50,000) | |
Net increase (decrease) in FHLB advances | 194,568 | (260,855) | 5,056 |
Repayment of junior subordinated debentures | (352) | ||
Net increase (decrease) in repurchase agreements | 460 | (338) | 203 |
Net proceeds from issuance of common stock | 1,102 | 1,017 | 951 |
Purchase of treasury stock | (625) | ||
Repurchase of surrendered stock from vesting of stock plans | (887) | (586) | (350) |
Cash dividends paid | (18,420) | (18,342) | (18,238) |
Net cash used in financing activities | 104,470 | 222,787 | 345,867 |
Net (decrease) increase in cash and cash equivalents | (178,174) | 200,621 | (19,091) |
Cash and cash equivalents at beginning of period | 295,368 | 94,747 | 113,838 |
Cash and cash equivalents at end of period | 117,194 | 295,368 | 94,747 |
Cash paid for: | |||
Interest | 39,395 | 32,254 | 22,917 |
Income taxes | 9,158 | 2,474 | 8,445 |
Non-cash investing and financing activities: | |||
Transfers from portfolio loans to loans held for sale | $ 12,643 | ||
Conversion of junior subordinated debentures | $ 15,350 | ||
Transfers from portfolio loans to other real estate owned | $ 175 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation The consolidated financial statements include Bridge Bancorp, Inc. (the “Holding Company”), a bank holding company incorporated under the laws of the State of New York, and its wholly-owned subsidiary, BNB Bank (the “Bank”), together referred to as “the Company.” 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”). Intercompany transactions and balances are eliminated in consolidation. The Company provides financial services through its branches in its primary market areas of Suffolk and Nassau Counties on Long Island and the New York City boroughs. The Bank’s primary deposit products are time, savings and demand deposits from the consumers, businesses and local municipalities in its market area. Its primary lending products are commercial real estate, multi-family, commercial and industrial, and residential mortgage loans. There are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the area. The audited consolidated financial statements presented in this Annual Report on Form 10-K 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 financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and general practices within the financial institution industry. The following is a description of the significant accounting policies that the Company follows in preparing its consolidated financial statements. Use of Estimates The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual future results could differ. Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest- earning deposits with banks, and federal funds sold, which mature overnight. Net cash flows are reported for customer loan and deposit transactions, federal funds purchased, FHLB advances, and repurchase agreements. Securities Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting in observable price changes in orderly transactions for the identical or a similar investment. On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2016-01 , Financial Instruments , which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The adoption of this guidance resulted in no change to the Company’s consolidated financial statements. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the near-term prospects of the issuer. Management also assesses whether it intends to sell, or is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet these criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Securities, Restricted Securities, restricted represents FHLB, Federal Reserve Bank (“FRB”) and bankers’ banks stock, which are reported at cost. The Bank is a member of the FHLB system. 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. FHLB stock is periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Loans Held for Sale Loans held for sale are carried at the lower of aggregate cost or estimated fair value. Any subsequent declines in fair value below the initial carrying value are recorded as a valuation allowance, which is established through a charge to earnings. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal amount outstanding, net of partial charge-offs, deferred origination costs and fees and purchase premiums and discounts. Loan origination and commitment fees and certain direct and indirect costs incurred in connection with loan originations are deferred and amortized to income over the life of the related loans as an adjustment to yield. When a loan prepays, the remaining unamortized net deferred origination fees or costs are recognized in the current year. Interest on loans is credited to income based on the principal outstanding during the period. Past due status is based on the contractual terms of the loan. Loans that are 90 days past due are automatically placed on non-accrual and previously accrued interest is reversed and charged against interest income. However, if the loan is in the process of collection and the Bank has reasonable assurance that the loan will be fully collectable based upon an individual loan evaluation assessing such factors as collateral and collectability, accrued interest will be recognized as earned. If a payment is received when a loan is non-accrual or a troubled debt restructuring loan is non-accrual, the payment is applied to the principal balance. A troubled debt restructured loan performing in accordance with its modified terms is maintained on accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status and the probability of collecting scheduled principal and interest payments when due. Loans for which the terms have been modified as a concession to the borrower due to the borrower experiencing financial difficulties are considered troubled debt restructurings and are classified as impaired. Loans considered to be troubled debt restructurings can be categorized as non-accrual or performing. The impairment of a loan is measured at the present value of expected future cash flows using the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral less costs to sell if the loan is collateral dependent. Loans that experience minor payment delays and payment shortfalls generally are not classified as impaired. Non-residential real estate loans over $200,000 and residential real estate loans over $1.0 million are individually evaluated for impairment. Smaller balance loans may also be individually evaluated for impairment if they are part of a larger impaired relationship. Loans with balances below the aforementioned thresholds are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Loans that were acquired through the acquisition of Community National Bank (“CNB”) on June 19, 2015 and First National Bank of New York (“FNBNY”) on February 14, 2014, were initially recorded at fair value with no carryover of the related allowance for loan losses. After acquisition, losses are recognized through the allowance for loan losses. Determining fair value of the loans involves estimating the amount and timing of expected principal and interest cash flows to be collected on the loans and discounting those cash flows at a market interest rate. Some of the loans at the time of acquisition showed evidence of credit deterioration since origination. These loans are considered purchased credit impaired (“PCI”) loans. For PCI loans, the excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable discount. The non-accretable discount represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent increases to the expected cash flows result in the reversal of a corresponding amount of the non-accretable discount, which is then reclassified as accretable discount and recognized into interest income over the remaining life of the loan using the interest method. Subsequent decreases to the expected cash flows require management to evaluate the need for an addition to the allowance for loan losses. PCI loans that were non-accrual prior to acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if management can reasonably estimate the timing and amount of the expected cash flows on such loans and if management expects to fully collect the new carrying value of the loans. As such, management may no longer consider the loans to be non-accrual or non-performing and may accrue interest on these loans, including the impact of any accretable discount. Unless otherwise noted, the above policy is applied consistently to all loan classes. Allowance for Loan Losses The allowance for loan losses is established and maintained through a provision for loan losses based on probable incurred losses in our loan portfolio. Management evaluates the adequacy of the allowance on a quarterly basis. The allowance is comprised of both individual valuation allowances and loan pool valuation allowances. Management monitors its entire loan portfolio regularly, with consideration given to detailed analysis of classified loans, repayment patterns, probable incurred losses, past loss experience, current economic conditions, and various types of concentrations of credit. Additions to the allowance are charged to expense and realized losses, net of recoveries, are charged against the allowance. Individual valuation allowances are established in connection with specific loan reviews and the asset classification process including the procedures for impairment testing under Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) 310, “Receivables”. Such valuation, which includes a review of loans for which full collectability in accordance with contractual terms is not reasonably assured, considers the estimated fair value of the underlying collateral less the costs to sell, if any, or the present value of expected future cash flows, or the loan’s observable market value. Any shortfall that exists from this analysis results in a specific allowance for the loan. Pursuant to the Company’s policy, loan losses must be charged-off in the period the loans, or portions thereof, are deemed uncollectable. Assumptions and judgments by management, in conjunction with outside sources, are used to determine whether full collectability of a loan is not reasonably assured. These assumptions and judgments are also used to determine the estimates of the fair value of the underlying collateral or the present value of expected future cash flows or the loan’s observable market value. Individual valuation allowances could differ materially as a result of changes in these assumptions and judgments. Individual loan analyses are periodically performed on specific loans considered impaired. The results of the individual valuation allowances are aggregated and included in the overall allowance for loan losses. Loan pool valuation allowances represent loss allowances that have been established to recognize the inherent risks associated with the Bank’s lending activities, but which, unlike individual allowances, have not been allocated to particular problem assets. Pool evaluations are broken down into loans with homogenous characteristics by loan type and include commercial real estate mortgages, owner and non-owner occupied; multi-family mortgage loans; home equity loans; residential real estate mortgages; commercial, industrial and agricultural loans, secured and unsecured; real estate construction and land loans; and consumer loans. Management considers a variety of factors in determining the adequacy of the valuation allowance and has developed a range of valuation allowances necessary to adequately provide for probable incurred losses in each pool of loans. Management considers the Bank’s charge-off history along with the growth in the portfolio as well as the Bank’s credit administration and asset management philosophies and procedures when determining the allowances for each pool. In addition, management evaluates and considers credit risk ratings, which includes management’s evaluation of: cash flow, collateral, guarantor support, financial disclosures, industry trends and strength of borrowers’ management, the impact that economic and market conditions may have on the portfolio as well as known and inherent risks in the portfolio. Finally, management evaluates and considers the allowance ratios and coverage percentages of both peer group and regulatory agency data. These evaluations are inherently subjective because, even though they are based on objective data, it is management’s interpretation of that data that determines the amount of the appropriate allowance. If the evaluations prove to be incorrect, the allowance for loan losses may not be sufficient to cover losses inherent in the loan portfolio, resulting in additions to the allowance for loan losses. For PCI loans, a valuation allowance is established when it is probable that the Bank will be unable to collect all the cash flows expected at acquisition plus additional cash flows expected to be collected arising from changes in estimate after acquisition. A specific allowance is established when subsequent evaluations of expected cash flows from PCI loans reflect a decrease in those estimates. The allowance established represents the excess of the recorded investment in those loans over the present value of the currently estimated future cash flow, discounted at the last effective accounting yield. The Bank uses assumptions and methodologies that are relevant to estimating the level of impairment and probable losses in the loan portfolio. To the extent that the data supporting such assumptions has limitations, management’s judgment and experience play a key role in recording the allowance estimates. Additions to the allowance for loan losses are made by provisions charged to earnings. Furthermore, an improvement in the expected cash flows related to PCI loans would result in a reduction of the required specific allowance with a corresponding credit to the provision. Future additions or reductions to the allowance may be necessary based on changes in economic, market or other conditions. Changes in estimates could result in a material change in the allowance. In addition, various regulatory agencies, as an integral part of the examination process, periodically review the allowance for loan losses. Such agencies may require the Bank to recognize adjustments to the allowance based on their judgments of the information available to them at the time of their examination. A loan is considered a potential charge-off when it is in default of either principal or interest for a period of 90, 120 or 180 days, depending upon the loan type, as of the end of the prior month. In addition to delinquency criteria, other triggering events may include, but are not limited to, notice of bankruptcy by the borrower or guarantor, death of the borrower, and deficiency balance from the sale of collateral. Unless otherwise noted, the above policy is applied consistently to all loan portfolio segments. Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with a useful life of fifty years for buildings and a range of two to ten years for equipment, computer hardware and software, and furniture and fixtures. Leasehold improvements are amortized over the lives of the respective leases or the service lives of the improvements, whichever is shorter. Land is carried at cost. Improvements and major repairs are capitalized, while the cost of ordinary maintenance, repairs and minor improvements are charged to expense. Bank-Owned Life Insurance The Bank is the owner and beneficiary of life insurance policies on certain employees. Bank-owned life insurance (“BOLI”) is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Other Real Estate Owned Real estate properties acquired through, or in lieu of, foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Goodwill and Other Intangible Assets Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and indefinite-lived intangible assets are not amortized, but tested for impairment at least annually, or more frequently if events and circumstances exist that indicate the carrying amount of the asset may be impaired. The Company has selected November 30 as the date to perform the annual impairment test. Goodwill and the BNB Bank trademark are intangible assets with indefinite lives on the Company’s balance sheet. Other intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangible assets are amortized on an accelerated method over their estimated useful lives of ten years. Other intangible assets also include servicing rights, which result from the sale of Small Business Administration (“SBA”) loans with servicing rights retained. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as unused lines of credit, commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded on the balance sheet when they are funded. Derivatives The Company records cash flow hedges at the inception of the derivative contract based on the Company’s intentions and belief as to likely effectiveness as a hedge. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income (“OCI”) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. It is management’s position, as currently supported by the facts and circumstances, that no valuation allowance is necessary against any of the Company’s deferred tax assets. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. There are no such tax positions in the Company’s financial statements at December 31, 2019 and 2018. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. The Company did not have any amounts accrued for interest and penalties at December 31, 2019 and 2018. Treasury Stock Repurchases of common stock are recorded as treasury stock at cost. Treasury stock is reissued using the first in, first out method. Earnings Per Share (“EPS”) Basic EPS is net income attributable to common shareholders divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted EPS includes the dilutive effect of additional potential common shares issuable under stock options. Dividend Restriction Cash available for distribution of dividends to stockholders of the Company is primarily derived from cash and cash equivalents of the Company and dividends paid by the Bank to the Company. Prior regulatory approval is required if the total of all dividends declared by the Bank in any calendar year exceeds the total of the Bank’s net income of that year combined with its retained net income of the preceding two years. Dividends from the Bank to the Company at January 1, 2020 are limited to $58.7 million, which represents the Bank’s net retained earnings from the previous two years. During 2019, the Bank paid $24.5 million in cash dividends to the Company. Segment Reporting While management monitors the revenue streams of the various products and services, the identifiable segments are not material and operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Stock-Based Compensation Compensation cost is recognized for stock options, restricted stock awards (“RSAs”), and restricted stock units (“RSUs”) issued to employees and independent directors, based on the fair value of these awards at the date of the grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used to estimate the fair value for RSAs and RSUs. Compensation cost is recognized as expense over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s accounting policy is to recognize forfeitures as they occur. Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on available for sale securities, unrealized gains and losses on cash flow hedges, and changes in the funded status of the pension plan, which are also recognized as separate components of equity. Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation. 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 7. “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, the FASB issued guidance to replace the incurred loss methodology with an expected loss methodology, which is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and 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 in |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2019 | |
SECURITIES. | |
SECURITIES | 2. SECURITIES The following table summarizes the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio and the corresponding amounts of gross unrealized gains and losses therein: December 31, 2019 2018 Gross Gross Estimated Gross Gross Estimated Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Cost Gains Losses Value Available for sale: U.S. Treasury securities $ 50,833 $ — $ (11) $ 50,822 $ — $ — $ — $ — U.S. GSE securities 5,000 — (5) 4,995 29,997 — (947) 29,050 State and municipal obligations 34,303 704 (43) 34,964 40,980 105 (354) 40,731 U.S. GSE residential mortgage-backed securities 84,550 609 (468) 84,691 96,536 38 (3,036) 93,538 U.S. GSE residential collateralized mortgage obligations 278,149 1,166 (1,464) 277,851 362,905 826 (5,954) 357,777 U.S. GSE commercial mortgage-backed securities 13,656 23 (70) 13,609 3,536 — (28) 3,508 U.S. GSE commercial collateralized mortgage obligations 102,722 1,723 (289) 104,156 93,177 — (2,539) 90,638 Other asset-backed securities 24,250 — (849) 23,401 24,250 — (1,031) 23,219 Corporate bonds 46,000 — (2,198) 43,802 46,000 — (3,575) 42,425 Total available for sale 639,463 4,225 (5,397) 638,291 697,381 969 (17,464) 680,886 Held to maturity: State and municipal obligations 41,008 809 — 41,817 53,540 290 (276) 53,554 U.S. GSE residential mortgage-backed securities 8,142 5 (54) 8,093 9,688 — (336) 9,352 U.S. GSE residential collateralized mortgage obligations 39,936 624 (62) 40,498 48,244 163 (1,130) 47,277 U.S. GSE commercial mortgage-backed securities 17,215 102 (82) 17,235 19,098 4 (620) 18,482 U.S. GSE commercial collateralized mortgage obligations 27,337 191 (144) 27,384 29,593 — (1,466) 28,127 Total held to maturity 133,638 1,731 (342) 135,027 160,163 457 (3,828) 156,792 Total securities $ 773,101 $ 5,956 $ (5,739) $ 773,318 $ 857,544 $ 1,426 $ (21,292) $ 837,678 The following table summarizes securities with gross unrealized losses at December 31, 2019 and 2018, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position: December 31, 2019 2018 Less than 12 months Greater than 12 months Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses Value Losses Available for sale: U.S. Treasury securities $ 50,822 $ (11) $ — $ — $ — $ — $ — $ — U.S. GSE securities — — 4,995 (5) — — 29,050 (947) State and municipal obligations 4,982 (42) 76 (1) 6,655 (15) 21,273 (339) U.S. GSE residential mortgage-backed securities 2,935 (30) 39,617 (438) — — 88,762 (3,036) U.S. GSE residential collateralized mortgage obligations 81,377 (480) 93,403 (984) 46,452 (141) 172,468 (5,813) U.S. GSE commercial mortgage-backed securities 6,648 (70) — — — — 3,508 (28) U.S. GSE commercial collateralized mortgage obligations 28,710 (145) 9,614 (144) 46,705 (623) 43,933 (1,916) Other asset-backed securities — — 23,401 (849) — — 23,219 (1,031) Corporate bonds — — 43,802 (2,198) — — 42,425 (3,575) Total available for sale $ 175,474 $ (778) $ 214,908 $ (4,619) $ 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 — — 7,268 (54) — — 9,352 (336) U.S. GSE residential collateralized mortgage obligations 6,750 (17) 6,105 (45) — — 40,665 (1,130) U.S. GSE commercial mortgage-backed securities — — 5,034 (82) — — 16,205 (620) U.S. GSE commercial collateralized mortgage obligations 13,038 (57) 4,300 (87) — — 28,127 (1,466) Total held to maturity $ 19,788 $ (74) $ 22,707 $ (268) $ 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, “Investments - Debt and Equity Securities” (“ASC 320”). 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 December 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 were 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 December 31, 2019. The following table sets forth the estimated fair value, amortized cost and contractual maturities of the securities portfolio at December 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. December 31, 2019 Within After One but After Five but After One Year Within Five Years Within Ten Years Ten Years Total Estimated Estimated Estimated Estimated Estimated Fair Amortized Fair Amortized Fair Amortized Fair Amortized Fair Amortized (In thousands) Value Cost Value Cost Value Cost Value Cost Value Cost Available for sale: U.S. Treasury securities $ 50,822 $ 50,833 $ — $ — $ — $ — $ — $ — $ 50,822 $ 50,833 U.S. GSE securities — — 4,995 5,000 — — — — 4,995 5,000 State and municipal obligations 1,143 1,142 14,829 14,620 16,540 16,088 2,452 2,453 34,964 34,303 U.S. GSE residential mortgage-backed securities — — — — — — 84,691 84,550 84,691 84,550 U.S. GSE residential collateralized mortgage obligations — — — — — — 277,851 278,149 277,851 278,149 U.S. GSE commercial mortgage-backed securities — — 8,761 8,753 4,848 4,903 — — 13,609 13,656 U.S. GSE commercial collateralized mortgage obligations — — — — — — 104,156 102,722 104,156 102,722 Other asset backed securities — — — — — — 23,401 24,250 23,401 24,250 Corporate bonds — — 14,538 15,000 29,264 31,000 — — 43,802 46,000 Total available for sale 51,965 51,975 43,123 43,373 50,652 51,991 492,551 492,124 638,291 639,463 Held to maturity: State and municipal obligations 8,838 8,827 23,382 22,902 9,444 9,129 153 150 41,817 41,008 U.S. GSE residential mortgage-backed securities — — — — 5,919 5,947 2,174 2,195 8,093 8,142 U.S. GSE residential collateralized mortgage obligations — — — — 3,865 3,871 36,633 36,065 40,498 39,936 U.S. GSE commercial mortgage-backed securities — — 4,824 4,776 4,835 4,805 7,576 7,634 17,235 17,215 U.S. GSE commercial collateralized mortgage obligations — — 387 392 — — 26,997 26,945 27,384 27,337 Total held to maturity 8,838 8,827 28,593 28,070 24,063 23,752 73,533 72,989 135,027 133,638 Total securities $ 60,803 $ 60,802 $ 71,716 $ 71,443 $ 74,715 $ 75,743 $ 566,084 $ 565,113 $ 773,318 $ 773,101 Sales and Calls of Securities There were $46.5 million of proceeds on sales of available for sale securities with gross gains of approximately $0.2 million realized in 2019. There were $230.4 million of proceeds on sales of available for sale securities with gross losses of approximately $7.9 million realized in 2018. There were $52.4 million of proceeds on sales of available for sale securities with gross gains of approximately $0.3 million and gross losses of approximately $0.3 million realized in 2017. There were $20.3 million and $3.3 million of proceeds from calls of securities in 2019 and 2018, respectively. Pledged Securities Securities having a fair value of $402.2 million and $354.3 million at December 31, 2019 and 2018, respectively, were pledged to secure public deposits and FHLB and FRB overnight borrowings. Trading Securities The Company did not hold any trading securities during the years ended December 31, 2019 and 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 $32.9 million and $24.0 million in FHLB, ACBB and FRB stock at December 31, 2019 and 2018, respectively. These amounts were reported as restricted securities in the consolidated balance sheets. As of December 31, 2019 and 2018, there was no issuer, other than the U.S. Government and its sponsored entities, where the Bank had invested holdings that exceeded 10% of consolidated stockholders’ equity. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE. | |
FAIR VALUE | 3. 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. FASB ASC 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: December 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. Treasury securities $ 50,822 $ 50,822 U.S. GSE securities 4,995 4,995 State and municipal obligations 34,964 34,964 U.S. GSE residential mortgage-backed securities 84,691 84,691 U.S. GSE residential collateralized mortgage obligations 277,851 277,851 U.S. GSE commercial mortgage-backed securities 13,609 13,609 U.S. GSE commercial collateralized mortgage obligations 104,156 104,156 Other asset-backed securities 23,401 23,401 Corporate bonds 43,802 43,802 Total available for sale securities $ 638,291 $ 638,291 Derivatives $ 15,437 $ 15,437 Financial liabilities: Derivatives $ 16,645 $ 16,645 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: December 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) Loans held for sale $ 12,643 $ 12,643 Impaired loans $ 6,981 $ 6,981 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 Loans held for sale at December 31, 2019 had a carrying amount of $12.6 million with no valuation allowance recorded. There were no loans held for sale at December 31, 2018. Impaired loans with an allocated allowance for loan losses at December 31, 2019 had a carrying amount of $7.0 million, which is made up of the outstanding balance of $11.7 million, net of a valuation allowance of $4.7 million. 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. There was no other real estate owned at December 31, 2019. At December 31, 2018, other real estate owned 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. Loans Held for Sale: Loans held for sale are carried at the lower of cost or fair value. The fair value of loans held for sale is initially determined using the price we expect to receive for the loans based on commitments received from third-party investors. Thereafter, loans held for sale are re-evaluated quarterly to determine if a valuation allowance is required to adjust for a decline in fair value below the carrying amount, resulting in a Level 3 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. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s expertise and knowledge of the borrower and its business. These valuation methods result in a Level 3 classification. 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 non-recurring basis. The following tables summarize the estimated fair values and recorded carrying amounts of the Company’s financial instruments at December 31, 2019 and 2018: December 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 $ 77,693 $ 77,693 $ — $ — $ 77,693 Interest-bearing deposits with banks 39,501 39,501 — — 39,501 Securities available for sale 638,291 — 638,291 — 638,291 Securities restricted 32,879 n/a n/a n/a n/a Securities held to maturity 133,638 — 135,027 — 135,027 Loans held for sale 12,643 — — 12,643 12,643 Loans, net 3,647,499 — — 3,685,770 3,685,770 Derivatives 15,437 — 15,437 — 15,437 Accrued interest receivable 10,908 — 2,181 8,727 10,908 Financial liabilities: Certificates of deposit 307,977 — 308,660 — 308,660 Demand and other deposits 3,506,670 3,506,670 — — 3,506,670 FHLB advances 435,000 195,000 239,622 — 434,622 Repurchase agreements 999 — 999 — 999 Subordinated debentures 78,920 — 81,010 — 81,010 Derivatives 16,645 — 16,645 — 16,645 Accrued interest payable 1,467 — 1,467 — 1,467 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 | 12 Months Ended |
Dec. 31, 2019 | |
LOANS. | |
LOANS | 4. LOANS The following table sets forth the major classifications of loans: December 31, (In thousands) 2019 2018 Commercial real estate mortgage loans $ 1,565,687 $ 1,373,556 Multi-family mortgage loans 812,174 585,827 Residential real estate mortgage loans 493,144 519,763 Commercial, industrial and agricultural loans 679,444 645,724 Real estate construction and land loans 97,311 123,393 Installment/consumer loans 24,836 20,509 Total loans 3,672,596 3,268,772 Net deferred loan costs and fees 7,689 7,039 Total loans held for investment 3,680,285 3,275,811 Allowance for loan losses (32,786) (31,418) Loans, net $ 3,647,499 $ 3,244,393 In June 2015, the Company completed the acquisition of CNB resulting in the addition of $729.4 million of acquired loans recorded at their fair value. There were approximately $223.4 million and $275.0 million of acquired CNB loans remaining as of December 31, 2019 and 2018, respectively. As of December 31, 2019, one commercial real estate (“CRE”) mortgage loan totaling $12.6 million was classified as held for sale. The loan was reclassified from loans held for investment to loans held for sale and written down from $16.3 million to the loan’s estimated fair value of $12.6 million, through a $3.7 million charge-off during the 2019 second quarter. Lending Risk The principal business of the Bank is lending in CRE 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, 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: December 31, 2019 (In thousands) Pass Special Mention Substandard Doubtful Total Commercial real estate: Owner occupied $ 511,444 $ 18,426 $ 1,218 $ — $ 531,088 Non-owner occupied 1,022,208 — 12,391 — 1,034,599 Multi-family 811,770 404 — — 812,174 Residential real estate: Residential mortgage 408,933 11,490 4,089 — 424,512 Home equity 67,016 910 706 — 68,632 Commercial and industrial: Secured 162,431 2,074 9,714 — 174,219 Unsecured 480,982 13,596 10,647 — 505,225 Real estate construction and land loans 95,530 — 1,781 — 97,311 Installment/consumer loans 23,976 103 757 — 24,836 Total loans $ 3,584,290 $ 47,003 $ 41,303 $ — $ 3,672,596 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 December 31, 2019 and 2018 by class of loans, as defined by FASB ASC 310‑10: December 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 $ 917 $ 433 $ — $ 225 $ 1,575 $ 529,513 $ 531,088 Non-owner occupied 98 — — 512 610 1,033,989 1,034,599 Multi-family — — — — — 812,174 812,174 Residential real estate: Residential mortgages 2,446 — — 2,086 4,532 419,980 424,512 Home equity 607 747 343 657 2,354 66,278 68,632 Commercial and industrial: Secured 24 187 — 206 417 173,802 174,219 Unsecured 249 534 — 530 1,313 503,912 505,225 Real estate construction and land loans — — — 123 123 97,188 97,311 Installment/consumer loans 124 — — 30 154 24,682 24,836 Total loans $ 4,465 $ 1,901 $ 343 $ 4,369 $ 11,078 $ 3,661,518 $ 3,672,596 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 December 31, 2019 and 2018, the Company had individually impaired loans as defined by FASB ASC 310, “Receivables” of $27.0 million and $19.4 million, respectively. The increase in impaired loans was primarily attributable to new troubled debt restructurings (“TDRs”), partially offset by the payoff of certain TDRs and other impaired loans during the year ended December 31, 2019. During the year ended December 31, 2019, the Bank modified certain loans as TDRs totaling $21.7 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. At December 31, 2019, impaired loans also included $1.1 million in other impaired performing loans which were related to borrowers with other performing TDRs. At December 31, 2018 impaired loans 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 increase in the allocated allowance on impaired loans from December 31, 2018, primarily relates to taxi medallion loans which were restructured as TDRs during the year ended December 31, 2019. The following tables set forth the recorded investment, unpaid principal balance and related allowance by class of loans at December 31, 2019, 2018 and 2017 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 years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 December 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 $ 3,379 $ 3,401 $ — $ 1,286 $ 41 Non-owner occupied 2,296 2,296 — 2,149 99 Residential real estate: Residential mortgages — — — — — Home equity 294 300 — 74 — Commercial and industrial: Secured 494 494 — 287 18 Unsecured 8,863 8,863 — 6,601 411 Total with no related allowance recorded 15,326 15,354 — 10,397 569 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 9,612 9,612 3,435 6,189 223 Unsecured 2,045 2,051 1,241 1,838 86 Total with an allowance recorded 11,657 11,663 4,676 8,027 309 Total: Commercial real estate: Owner occupied 3,379 3,401 — 1,286 41 Non-owner occupied 2,296 2,296 — 2,149 99 Residential real estate: Residential mortgages — — — — — Home equity 294 300 — 74 — Commercial and industrial: Secured 10,106 10,106 3,435 6,476 241 Unsecured 10,908 10,914 1,241 8,439 497 Total $ 26,983 $ 27,017 $ 4,676 $ 18,424 $ 878 Year Ended December 31, 2018 December 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 $ — $ 177 $ — Non-owner occupied 2,816 2,816 — 1,583 88 Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 8,234 8,234 — 5,644 196 Unsecured 5,316 5,316 — 5,127 284 Total with no related allowance recorded 16,634 16,644 — 12,531 568 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 2,757 91 Unsecured — — — — — Total with an allowance recorded 2,721 2,721 189 2,757 91 Total: Commercial real estate: Owner occupied 268 278 — 177 — Non-owner occupied 2,816 2,816 — 1,583 88 Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 10,955 10,955 189 8,401 287 Unsecured 5,316 5,316 — 5,127 284 Total $ 19,355 $ 19,365 $ 189 $ 15,288 $ 659 December 31, 2017 Year Ended December 31, 2017 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 $ 2,073 $ 2,073 $ — $ 173 $ 80 Non-owner occupied 9,089 9,089 — 7,001 400 Residential real estate: Residential mortgages — — — — — Home equity 100 100 — 8 — Commercial and industrial: Secured 7,368 8,013 — 2,633 211 Unsecured 2,154 2,408 — 592 36 Total with no related allowance recorded 20,784 21,683 — 10,407 727 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured — — — — — Unsecured 1,708 3,235 1,708 142 174 Total with an allowance recorded 1,708 3,235 1,708 142 174 Total: Commercial real estate: Owner occupied 2,073 2,073 — 173 80 Non-owner occupied 9,089 9,089 — 7,001 400 Residential real estate: Residential mortgages — — — — — Home equity 100 100 — 8 — Commercial and industrial: Secured 7,368 8,013 — 2,633 211 Unsecured 3,862 5,643 1,708 734 210 Total $ 22,492 $ 24,918 $ 1,708 $ 10,549 $ 901 The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs. There was no other real estate owned at December 31, 2019. At December 31, 2018, other real estate owned totaled $0.2 million and consisted of one property which was sold during the quarter ended June 30, 2019. 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. The following table presents loans by class modified as troubled debt restructurings during the years indicated: Modifications During the Year Ended December 31, 2019 2018 2017 Pre- Post- Pre- Post- Pre- Post- Modification Modification Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Loans Investment Investment Loans Investment Investment Commercial real estate: Owner occupied 3 $ 8,582 $ 8,582 — $ — $ — — $ — $ — Non-owner occupied — — — 1 926 926 2 7,764 7,764 Residential real estate: Residential mortgages 1 338 338 1 644 644 — — — Home equity — — — — — — — — — Commercial and industrial: Secured 7 6,920 6,920 2 1,994 1,994 7 6,828 6,828 Unsecured 8 5,908 5,908 8 5,655 5,655 2 189 189 Installment/consumer loans — — — — — — — — — Total 19 $ 21,748 $ 21,748 12 $ 9,219 $ 9,219 11 $ 14,781 $ 14,781 There were $0.1 million, $0.4 million and $0.4 million of charge-offs related to TDRs during the years ended December 31, 2019, 2018 and 2017, respectively. During the year ended December 31, 2019 there were two loans modified as TDRs for which there was a payment default within twelve months following the modification. There was one loan modified as a TDR during 2018 and two loans modified as TDRs during 2017 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. At December 31, 2019 and 2018, the Company had $405 thousand and $133 thousand, respectively, of non-accrual TDRs and $26.3 million and $16.9 million, respectively, of performing TDRs. At December 31, 2019 and 2018, the 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 year ended December 31, 2019 that did not meet the definition of a TDR. These loans have a total recorded investment at December 31, 2019 of $82.8 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. In determining the acquisition date fair value of purchased loans, acquired loans are aggregated into pools of loans with common characteristics. Each loan is reviewed at acquisition to determine if it should be accounted for as a loan that has experienced credit deterioration and it is probable that at acquisition, the Company will not be able to collect all the contractual principal and interest due from the borrower. All loans with evidence of deterioration in credit quality are considered PCI loans unless the loan type is specifically excluded from the scope of FASB ASC 310‑30 “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” such as loans with active revolver features or because management has minimal doubt about the collection of the loan. The Bank makes an estimate of the loans’ contractual principal and contractual interest payments as well as the expected total cash flows from the pools of loans, which includes undiscounted expected principal and interest. The excess of contractual amounts over the total cash flows expected to be collected from the loans is referred to as non-accretable difference, which is not accreted into income. The excess of the expected undiscounted cash flows over the fair value of the loans is referred to as accretable discount. Accretable discount is recognized as interest income on a level-yield basis over the life of the loans. Management has not included prepayment assumptions in its modeling of contractual or expected cash flows. The Bank continues to estimate cash flows expected to be collected over the life of the loans. Subsequent increases in total cash flows expected to be collected are recognized as an adjustment to the accretable yield with the amount of periodic accretion adjusted over the remaining life of the loans. Subsequent decreases in cash flows expected to be collected over the life of the loans are recognized as impairment in the current period through the allowance for loan losses. A PCI loan may be resolved either through a sale of the loan, by working with the customer and obtaining partial or full repayment, by short sale of the collateral, or by foreclosure. When a loan accounted for in a pool is resolved, it is removed from the pool at its carrying amount. Any differences between the amounts received and the outstanding balance are absorbed by the non-accretable difference of the pool. For loans not accounted for in pools, a gain or loss on resolution would be recognized based on the difference between the proceeds received and the carrying amount of the loan. Payments received earlier than expected or in excess of expected cash flows from sales or other resolutions may result in the carrying value of a pool being reduced to zero even though outstanding contractual balances and expected cash flows remain related to loans in the pool. Once the carrying value of a pool is reduced to zero, any future proceeds from the remaining loans, representing further realization of accretable yield, are recognized as interest income upon receipt. These proceeds may include cash or real estate acquired in foreclosure. The following table summarizes the activity in the accretable yield for the PCI loans: Year Ended December 31, (In thousands) 2019 2018 Balance at beginning of period $ 460 $ 2,151 Accretion (515) (1,842) Reclassification from nonaccretable difference during the period 129 151 Accretable discount at end of period $ 74 $ 460 The allowance for loan losses was not increased during the years ended December 31, 2019 and 2018 for those PCI loans disclosed above and there were no charge-offs recorded. Related Party Loans Certain directors, executive officers, and their related parties, including their immediate families and companies in which they are principal owners, were loan customers of the Bank during 2019 and 2018. The following table sets forth selected information about related party loans for the year ended December 31, 2019: Year Ended December 31, (In thousands) 2019 Balance at beginning of period $ 21,047 New loans 1,128 Repayments (9,826) Balance at end of period $ 12,349 |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2019 | |
ALLOWANCE FOR LOAN LOSSES. | |
ALLOWANCE FOR LOAN LOSSES | 5. ALLOWANCE FOR LOAN LOSSES The allowance for loan losses is established and maintained through a provision for loan losses based on probable incurred losses in the Bank’s loan portfolio. Management evaluates the adequacy of the allowance quarterly. The allowance is comprised of both individual valuation allowances and loan pool valuation allowances. 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 December 31, 2019 and 2018. The tables include loans acquired from CNB and FNBNY. December 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 $ — $ — $ — $ 4,676 $ — $ — $ 4,676 Collectively evaluated for impairment 12,150 4,829 1,882 7,907 1,066 276 28,110 Loans acquired with deteriorated credit quality — — — — — — — Total allowance for loan losses $ 12,150 $ 4,829 $ 1,882 $ 12,583 $ 1,066 $ 276 $ 32,786 Loans: Individually evaluated for impairment $ 5,675 $ — $ 294 $ 21,014 $ — $ — $ 26,983 Collectively evaluated for impairment 1,560,012 812,174 492,507 658,430 97,311 24,836 3,645,270 Loans acquired with deteriorated credit quality — — 343 — — — 343 Total loans $ 1,565,687 $ 812,174 $ 493,144 $ 679,444 $ 97,311 $ 24,836 $ 3,672,596 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 recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The increase in the specific reserve on impaired loans from December 31, 2018 to December 31, 2019 was primarily attributable to the restructuring of certain taxi medallion loans which had matured during 2019. All of the Bank’s taxi medallion loans have been restructured as of December 31, 2019, resulting in a shift in the reserves on the commercial and industrial loan portfolio from the general reserves to the specific reserves. The following tables represent the changes in the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017, 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. Year Ended December 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 (3,670) — — (799) — (13) (4,482) Recoveries 1 — 112 25 — 12 150 Provision (Credit) 5,027 2,263 (2,165) 635 (231) 171 5,700 Ending balance $ 12,150 $ 4,829 $ 1,882 $ 12,583 $ 1,066 $ 276 $ 32,786 Year Ended 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: Beginning balance $ 11,048 $ 4,521 $ 2,438 $ 12,838 $ 740 $ 122 $ 31,707 Charge-offs — — (24) (2,806) — (11) (2,841) Recoveries — — 3 747 — 2 752 (Credit) Provision (256) (1,955) 1,518 1,943 557 (7) 1,800 Ending balance $ 10,792 $ 2,566 $ 3,935 $ 12,722 $ 1,297 $ 106 $ 31,418 Year Ended December 31, 2017 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 $ 9,225 $ 6,264 $ 1,495 $ 7,837 $ 955 $ 128 $ 25,904 Charge-offs — — — (8,245) — (49) (8,294) Recoveries — — 28 16 — 3 47 Provision (Credit) 1,823 (1,743) 915 13,230 (215) 40 14,050 Ending balance $ 11,048 $ 4,521 $ 2,438 $ 12,838 $ 740 $ 122 $ 31,707 |
PREMISES AND EQUIPMENT, NET
PREMISES AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
PREMISES AND EQUIPMENT, NET | |
PREMISES AND EQUIPMENT, NET | 6. PREMISES AND EQUIPMENT, NET The following table details the components of premises and equipment: December 31, (In thousands) 2019 2018 Land $ 7,896 $ 7,896 Building and improvements 17,271 17,227 Furniture, fixtures and equipment 25,288 23,328 Leasehold improvements 12,356 13,470 62,811 61,921 Accumulated depreciation and amortization (28,749) (26,913) Total premises and equipment, net $ 34,062 $ 35,008 Depreciation and amortization amounted to $4.3 million, $3.8 million and $3.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
LEASES | 7. 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: Year Ended (In thousands) December 31, 2019 Lease cost Operating lease cost $ 7,038 Sublease income (95) Total lease cost $ 6,943 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: Year Ended (Dollars in thousands) December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 7,019 Operating right-of-use assets obtained in exchange for lease liabilities $ 48,101 December 31, 2019 Weighted-average remaining lease term-operating leases 7.8 years Weighted-average discount rate-operating leases (1) 3.20 % 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) December 31, 2019 2020 $ 7,011 2021 6,974 2022 6,802 2023 5,853 2024 5,595 Thereafter 20,324 Total operating lease payments $ 52,559 Less: Interest (6,582) Present value of operating lease liabilities $ 45,977 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 8. GOODWILL AND OTHER INTANGIBLE ASSETS FASB ASC 350, Intangibles — Goodwill and Other, requires a company to perform an impairment test on goodwill annually, or more frequently if events or changes in circumstance indicate that the asset might be impaired, by comparing the fair value of such goodwill to its recorded or carrying amount. If the carrying amount of goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess. The FASB issued ASU No. 2011‑08, “Testing Goodwill for Impairment,” which permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. Goodwill At December 31, 2019 and 2018, the carrying amount of the Company’s goodwill was $106.0 million. The Company tested goodwill for impairment during the fourth quarter of 2019. The Company has one reporting unit, Bridge Bancorp, Inc., and evaluated goodwill at that reporting unit level. The Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value and no further testing was required. The results of this assessment indicated that goodwill was not impaired. Other Intangible Assets The Company’s other intangible assets consist of core deposit intangibles, a trademark, and servicing assets. At December 31, 2019 and 2018, the carrying amount of the Company’s servicing assets was $1.3 million and $1.2 million, respectively. Acquired Intangible Assets The following table reflects acquired intangible assets: December 31, 2019 2018 Gross Gross Carrying Accumulated Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Intangible assets subject to amortization: Core deposit intangibles $ 7,211 $ 5,113 $ 7,211 $ 4,326 Intangible assets not subject to amortization: Trademark 259 — 259 — Total intangible assets $ 7,470 $ 5,113 $ 7,470 $ 4,326 Aggregate amortization expense for intangible assets with finite lives for the years ended December 31, 2019, 2018, and 2017 was $0.8 million, $0.9 million, and $1.0 million, respectively. The Company acquired a trademark related to the Bank’s name change to BNB Bank. At December 31, 2019 and 2018, the carrying amount of the Company’s trademark was $259 thousand. The following table reflects estimated amortization expense for each of the next five years and thereafter: (In thousands) Total 2020 $ 656 2021 531 2022 413 2023 281 2024 164 Thereafter 53 Total $ 2,098 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2019 | |
DEPOSITS | |
DEPOSITS | 9. DEPOSITS Time Deposits The following table presents the remaining maturities of the Bank’s time deposits at December 31, 2019: (In thousands) Total 2020 $ 203,834 2021 83,420 2022 11,272 2023 4,072 2024 4,977 Thereafter 402 Total $ 307,977 The deposits that meet or exceed the FDIC insurance limit of $250,000 at December 31, 2019 and 2018 were $129.6 million and $128.5 million, respectively. Deposits from principal officers, directors and their affiliates at December 31, 2019 and 2018 were approximately $16.7 million and $18.5 million, respectively. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended |
Dec. 31, 2019 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE. | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 10. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase totaled $1.0 million at December 31, 2019 and $0.5 million at December 31, 2018. The repurchase agreements were collateralized by investment securities, of which 17% were U.S. GSE residential collateralized mortgage obligations and 83% were U.S. GSE residential mortgage-backed securities with a carrying amount of $2.1 million at December 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 $1.0 million maturing during the first quarter of 2020. 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. The following table summarizes information concerning securities sold under agreements to repurchase: Year Ended December 31, (Dollars in thousands) 2019 2018 Average daily balance during the year $ 849 $ 1,078 Average interest rate during the year 0.05 % 0.04 % Maximum month-end balance during the year $ 1,037 $ 1,610 Weighted average interest rate at year-end 0.05 % 0.05 % |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 12 Months Ended |
Dec. 31, 2019 | |
FEDERAL HOME LOAN BANK ADVANCES. | |
FEDERAL HOME LOAN BANK ADVANCES | 11. FEDERAL HOME LOAN BANK ADVANCES The following table summarizes information concerning FHLB advances: Year Ended December 31, (Dollars in thousands) 2019 2018 Average daily balance during the year $ 245,283 $ 324,653 Average interest rate during the year 1.86 % 1.76 % Maximum month-end balance during the year $ 435,000 $ 520,092 Weighted average interest rate at year-end 1.82 % 2.72 % 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 2020. December 31, 2019 (Dollars in thousands) Weighted Contractual Maturity Amount Average Rate Overnight $ 195,000 1.81 % 2020 240,000 1.84 Total FHLB advances $ 435,000 1.82 % 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 $1.4 billion and $1.3 billion of residential and commercial mortgage loans under a blanket lien arrangement at December 31, 2019 and 2018, respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow up to a total of $1.5 billion at December 31, 2019. |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 12 Months Ended |
Dec. 31, 2019 | |
SUBORDINATED DEBENTURES. | |
SUBORDINATED DEBENTURES | 12. 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 $78.9 million at December 31, 2019 and $78.8 million at December 31, 2018. The subordinated debentures are included in tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2019 | |
DERIVATIVES. | |
DERIVATIVES | 13. DERIVATIVES As described in Note 1, Summary of Significant Accounting Policies, during the first quarter of 2019 the Company adopted ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities . The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. ASU 2017-12 requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company has adopted the standard in 2019 with minimal impact to its financial position upon transition. The Alternative Reference Rates Committee ("ARRC") has proposed that the Secured Overnight Funding Rate ("SOFR") replace USD-LIBOR. ARRC has proposed that the transition to SOFR from USD-LIBOR will take place by the end of 2021. The Company has material contracts that are indexed to USD-LIBOR. Industry organizations are currently working on the transition plan. The Company is currently monitoring this activity and evaluating the risks involved. 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 $290.0 million and $240.0 million as of December 31, 2019 and 2018, respectively, were designated as cash flow hedges of certain FHLB advances. The swaps were determined to be fully effective during the periods presented. The aggregate fair value of the swaps is recorded in other assets or 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 December 31, 2019 and 2018: December 31, (Dollars in thousands) 2019 2018 Notional amounts $ 290,000 $ 240,000 Weighted average pay rates 1.84 % 1.84 % Weighted average receive rates 1.94 % 2.77 % Weighted average maturity 2.91 years 2.03 years Interest income recorded on these swap transactions totaled $1.6 million and $1.1 million during the years ended December 31, 2019 and 2018, respectively and interest expenses recorded on these swap transactions totaled $1.4 million during the year ended December 31, 2017, which 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 year ended December 31, 2019, the Company had $1.6 million of reclassifications as a reduction to interest expense. During the next twelve months, the Company estimates that $157 thousand will be reclassified as an increase 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 years ended December 31, 2019, 2018 and 2017: Amount of gain (loss) Amount of gain reclassified from reclassified from Amount of (loss) gain Amount of (loss) gain Accumulated OCI Accumulated OCI (In thousands) recognized in OCI recognized in OCI into income into income Interest rate contracts included component excluded component included component excluded component Year ended December 31, 2019 $ (3,601) $ — $ 1,588 $ — Year ended December 31, 2018 2,493 — 1,068 — Year ended December 31, 2017 463 — (1,419) — The following table reflects the cash flow hedges included in the consolidated balance sheets at the dates indicated: December 31, 2019 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 $ 1,233 $ (978) $ 240,000 $ 4,239 $ (4) Forward starting interest rate swaps related to FHLB advances $ 50,000 $ — $ (1,427) $ — $ — $ — 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. Interest rate swaps with notional amounts totaled $823.9 million at December 31, 2019. Of the $823.9 million notional amounts, $411.9 million were from loan customers and $411.9 million were from bank counterparties. Interest rate swaps with notional amounts totaled $193.4 million at December 31, 2018. Of the $193.4 million notional amounts, $96.7 million were from loan customers and $96.7 million were from bank counterparties. The following table presents summary information about the interest rate swaps at December 31, 2019 and 2018: December 31, (Dollars in thousands) 2019 2018 Notional amounts $ 823,894 $ 193,401 Weighted average pay rates 3.75 % 4.52 % Weighted average receive rates 3.75 % 4.52 % Weighted average maturity 10.77 years 12.25 years Fair value of combined interest rate swaps $ — $ — Loan swap fees recorded on these swap transactions, which is reported as a component of non-interest income, totaled $7.5 million, $716 thousand, and $1.0 million for the years ended December 31, 2019, 2018, and 2017, respectively. Credit-Risk-Related Contingent Features As of December 31, 2019, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $14.9 million, while there were no derivatives in a net asset position. The Company has minimum collateral posting thresholds with certain of its derivative counterparties. If the termination value of derivatives is a net liability position, the Company is required to post collateral against its obligations under the agreements. However, if the termination value of derivatives is a net asset position, the counterparty is required to post collateral to the Company. At December 31, 2019, the Company posted collateral of $16.3 million to its counterparties under the agreements in a net liability position and received no collateral from its counterparties under the agreements in a net asset position. If the Company had breached any of these provisions at December 31, 2019, it could have been required to settle its obligations under the agreements at the termination value. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | 14. INCOME TAXES The following table details the components of income tax expense: Year Ended December 31, (In thousands) 2019 2018 2017 Current: Federal $ 12,665 $ 5,270 $ 8,762 State 639 1,023 937 Total current 13,304 6,293 9,699 Deferred: Federal (419) 3,299 10,251 State 1,175 (451) (1,004) Total deferred 756 2,848 9,247 Total income tax expense $ 14,060 $ 9,141 $ 18,946 The following table is a reconciliation of the expected federal income tax expense at the statutory tax rate to the actual provision: Year Ended December 31, 2019 2018 2017 Percentage Percentage Percentage of Pre-tax of Pre-tax of Pre-tax (Dollars in thousands) Amount Earnings Amount Earnings Amount Earnings Federal income tax expense computed by applying the statutory rate to income before income taxes $ 13,808 21 % $ 10,157 21 % $ 13,820 35 % Tax-exempt income (920) (1) (1,002) (2) (1,808) (5) State taxes, net of federal income tax benefit 1,425 2 1,999 4 725 2 Deferred tax asset remeasurement (1) — — — — 7,572 19 Other (253) (1) (2,013) (4) (1,363) (3) Income tax expense $ 14,060 21 % $ 9,141 19 % $ 18,946 48 % (1) 2017 amount includes a charge to write-down deferred tax assets due to the enactment of the Tax Act of $7.6 million. The following table summarizes the composition of deferred tax assets and liabilities: December 31, (In thousands) 2019 2018 Deferred tax assets: Allowance for loan losses and off-balance sheet credit exposure $ 10,305 $ 9,309 Net unrealized losses on securities 343 4,810 Compensation and related benefit obligations 2,368 2,427 Purchase accounting fair value adjustments 4,735 4,141 Net change in pension and other post-retirement benefits plans 2,809 2,630 Net operating loss carryforward 3,229 4,746 Net loss on cash flow hedges 304 — Operating lease liabilities 13,444 — Other 200 671 Total deferred tax assets 37,737 28,734 Deferred tax liabilities: Pension and SERP expense (4,904) (4,559) Depreciation (956) (1,163) REIT undistributed net income (2,403) (2,110) Net deferred loan costs and fees (2,413) (2,206) Net gain on cash flow hedges — (1,210) State and local taxes (1,227) (1,468) Operating lease right-of-use assets (12,934) — Other (835) (353) Total deferred tax liabilities (25,672) (13,069) Net deferred tax asset $ 12,065 $ 15,665 On December 22, 2017, the President signed the Tax Cuts and Jobs Act (“Tax Act”), resulting in significant changes to existing tax law, including a lower federal statutory tax rate of 21%. The Tax Act was generally effective as of January 1, 2018. In the fourth quarter of 2017, the Company recorded a charge of $7.6 million, which consisted primarily of the deferred tax asset remeasurement from the previous 35% federal statutory rate to the current 21% federal statutory tax rate. On December 22, 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides a measurement period of up to one year from the enactment date to refine and complete the accounting. The Company has completed its accounting for the effects of the Tax Act, and has made reasonable estimates of the effect of the change in federal statutory tax rate and remeasurement of deferred tax assets based on the rate at which they are expected to reverse in the future. The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the State and City of New York and the State of New Jersey. The Company is no longer subject to examination by taxing authorities for years before 2015. There are no unrecorded tax benefits, and the Company does not expect the total amount of unrecognized income tax benefits to significantly increase in the next twelve months. In connection with the acquisition of FNBNY, the Company acquired a federal net operating loss (“NOL”) carryforward subject to Internal Revenue Code Section 382. The Company recorded a deferred tax asset that it expects to realize within the carryforward period. At December 31, 2019, the remaining federal NOL carryforward was $3.1 million. At December 31, 2019, the Company had New York State and New York City NOL carryforwards of $26.3 million and $4.4 million, respectively, and recorded a deferred tax asset that it expects to recover within the carryforward period. The New York State and New York City NOLs at December 31, 2019 included NOLs acquired in connection with the CNB and FNBNY acquisitions. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
PENSION AND OTHER POSTRETIREMENT PLANS. | |
PENSION AND OTHER POSTRETIREMENT PLANS | 15. PENSION AND OTHER POSTRETIREMENT PLANS Pension Plan and Supplemental Executive Retirement Plan 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. The following table provides information about changes in obligations and plan assets of the defined benefit Pension Plan and the defined benefit plan component of the SERP: Pension Benefits SERP Benefits Year Ended December 31, Year Ended December 31, (In thousands) 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation at beginning of year $ 23,611 $ 24,759 $ 3,811 $ 3,919 Service cost 952 1,106 261 290 Interest cost 908 794 147 127 Benefits paid and expected expenses (475) (402) (112) (112) Assumption changes and other 3,761 (2,646) 1,216 (413) Benefit obligation at end of year $ 28,757 $ 23,611 $ 5,323 $ 3,811 Change in plan assets: Fair value of plan assets at beginning of year $ 33,874 $ 34,695 $ — $ — Actual return on plan assets 6,346 (2,079) — — Employer contribution — 1,660 112 112 Benefits paid and actual expenses (475) (402) (112) (112) Fair value of plan assets at end of year $ 39,745 $ 33,874 $ — $ — Funded status at end of year $ 10,988 $ 10,263 $ (5,323) $ (3,811) The following table presents amounts recognized in accumulated other comprehensive income at December 31: Pension Benefits SERP Benefits December 31, December 31, (In thousands) 2019 2018 2019 2018 Net actuarial loss $ 7,997 $ 8,631 $ 2,071 $ 925 Prior service cost (484) (561) — — Net amount recognized $ 7,513 $ 8,070 $ 2,071 $ 925 As of December 31, 2019, the accumulated benefit obligation was $27.4 million for the Pension Plan and $3.6 million for the SERP. As of December 31, 2018, the accumulated benefit obligation was $22.3 million for the Pension Plan and $2.7 million for the SERP. The following table summarizes the components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: Pension Benefits SERP Benefits Year Ended December 31, Year Ended December 31, (In thousands) 2019 2018 2017 2019 2018 2017 Components of net periodic benefit cost and other amounts recognized in other comprehensive income: Service cost $ 952 $ 1,106 $ 1,129 $ 261 $ 290 $ 212 Interest cost 908 794 750 147 127 105 Expected return on plan assets (2,445) (2,547) (2,129) — — — Amortization of net loss 494 335 479 70 121 51 Amortization of prior service credit (77) (77) (77) — — — Amortization of transition obligation — — — — 5 27 Net periodic benefit (credit) cost $ (168) $ (389) $ 152 $ 478 $ 543 $ 395 Net (gain) loss $ (140) $ 1,980 $ (409) $ 1,216 $ (413) $ 710 Amortization of net loss (494) (335) (479) (70) (121) (51) Amortization of prior service credit 77 77 77 — — — Amortization of transition obligation — — — — (5) (27) Total recognized in other comprehensive income $ (557) $ 1,722 $ (811) $ 1,146 $ (539) $ 632 The Company's service cost component is reported in the Company's income statement in salaries and employee benefits, which is the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. All other components of net periodic benefit (credit) cost are reported in the other operating expenses income statement line. The estimated net loss and prior service credit for the defined benefit Pension Plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $400 thousand and $77 thousand, respectively. The estimated net loss for the SERP that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $227 thousand. Expected Long-Term Rate of Return The Company’s expected long-term rate of return on Pension Plan assets is a long-term rate based on anticipated Pension Plan asset returns over an extended period of time, taking into account market conditions and broad asset mix considerations. The expected rate of return is a long-term assumption and generally does not change annually. Pension Benefits SERP Benefits December 31, December 31, 2019 2018 2017 2019 2018 2017 Weighted average assumptions used to determine benefit obligations: Discount rate 3.10 % 4.14 % 3.52 % 3.08 % 4.13 % 3.50 % Rate of compensation increase 3.00 3.00 3.00 5.00 5.00 5.00 Weighted average assumptions used to determine net periodic benefit cost: Discount rate 4.14 % 3.52 % 4.05 % 4.13 % 3.50 % 4.01 % Rate of compensation increase 3.00 3.00 3.00 5.00 5.00 5.00 Expected long-term rate of return 7.25 7.25 7.25 — — — Pension Plan Assets The Pension Plan seeks to provide retirement benefits to the employees of the Bank who are entitled to receive benefits under the Pension Plan. The Pension Plan assets are overseen by a committee comprised of management, who meet semi-annually, and sets the investment policy guidelines. The Pension Plan’s overall investment strategy is to achieve a mix of approximately 97% of investments for long ‐ term growth and 3% for near ‐ term benefit payments with a wide diversification of asset types, fund strategies, and fund managers. Cash equivalents consist primarily of short-term investment funds. Equity securities primarily include investments in common stock, mutual funds, depository receipts and exchange traded funds. Fixed income securities include corporate bonds, government issues, mortgage-backed securities, high yield securities and mutual funds. The weighted average expected long -term rate of return is estimated based on current trends in Pension Plan assets, as well as projected future rates of return on those assets and reasonable actuarial assumptions based on the guidance provided by Actuarial Standard of Practice No. 27 for the real and nominal rate of investment return for a specific mix of asset classes. The long-term rate of return considers historical returns for the S&P 500 index and corporate bonds representing cumulative returns of approximately 9.5% and 5.0%, respectively. These returns were considered along with the target allocations of asset categories. The following table indicates the target allocations for Plan assets: Weighted-Average- Target Percentage of Plan Assets Expected Long- Allocation At December 31, term Rate of Asset Category 2020 2019 2018 Return Cash equivalents 0 - 5 % 3.6 % 3.0 % — % Equity securities 45 - 65 57.9 54.8 9.5 Fixed income securities 30 - 50 38.5 42.2 5.0 Total 100.0 100.0 Except for pooled vehicles and mutual funds, which are governed by the prospectus, and unless expressly authorized by management, the Pension Plan and its investment managers are prohibited from purchasing the following investments: letter stock, private placements, or direct payments; securities not readily marketable; Bridge Bancorp, Inc. stock; pledging or hypothecating securities, except for loans of securities that are fully collateralized; purchasing or selling derivative securities for speculation or leverage; and investments by the investment managers in their own securities, their affiliates or subsidiaries (excluding money market funds). Fair value is defined under FASB ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an 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. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. These levels are described in Note 3 “Fair Value.” In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments valued using the Net Asset Value (“NAV”) are classified as level 2 if the Pension Plan can redeem its investment with the investee at the NAV at the measurement date. If the Pension Plan can never redeem the investment with the investee at the NAV, it is considered as level 3. If the Pension Plan can redeem the investment at the NAV at a future date, the Pension Plan’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset. In accordance with FASB ASC 715‑20, the following table represents the Pension Plan’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of December 31, 2019 and 2018: December 31, 2019 Fair Value Measurements Using: Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (Dollars in thousands) Value (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ — $ — $ — $ — Short term investment funds 1,444 — 1,444 — Total cash and cash equivalents 1,444 — 1,444 — Equities: U.S. large cap 12,097 12,097 — — U.S. mid cap/small cap 4,195 4,195 — — International 6,320 6,320 — — Equities blend 414 414 — — Total equities 23,026 23,026 — — Fixed income securities: Government issues 2,024 2,024 — — Corporate bonds 2,926 — 2,926 — Mortgage-backed 1,033 — 1,033 — High yield bonds and bond funds 9,292 — 9,292 — Total fixed income securities 15,275 2,024 13,251 — Total plan assets $ 39,745 $ 25,050 $ 14,695 $ — December 31, 2018 Fair Value Measurements Using: Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (Dollars in thousands) Value (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ — $ — $ — $ — Short term investment funds 1,063 — 1,063 — Total cash and cash equivalents 1,063 — 1,063 — Equities: U.S. large cap 9,173 9,173 — — U.S. mid cap/small cap 2,760 2,760 — — International 6,480 6,480 — — Equities blend 155 155 — — Total equities 18,568 18,568 — — Fixed income securities: Government issues 2,341 2,341 — — Corporate bonds 2,098 — 2,098 — Mortgage-backed 1,132 — 1,132 — High yield bonds and bond funds 8,672 — 8,672 — Total fixed income securities 14,243 2,341 11,902 — Total plan assets $ 33,874 $ 20,909 $ 12,965 $ — The Company has no minimum required pension contribution due to the overfunded status of the plan. Estimated Future Payments The following table summarizes benefits expected to be paid under the Pension Plan and the SERP as of December 31, 2019, which reflect expected future service: Pension and SERP Year (in thousands) 2020 $ 931 2021 1,074 2022 1,148 2023 1,291 2024 1,298 2025-2029 9,246 401(k) Plan The Company provides a 401(k) plan, which covers substantially all current employees. Newly hired employees are automatically enrolled in the plan on the 60 th day of employment, unless they elect not to participate. Participants may contribute a portion of their pre-tax base salary, generally not to exceed $19,000 for the calendar year ended December 31, 2019. Under the provisions of the 401(k) plan, employee contributions are partially matched by the Bank as follows: 100% of each employee’s contributions up to 1% of each employee’s compensation plus 50% of each employee’s contributions over 1% but not in excess of 6% of each employee’s compensation for a maximum contribution of 3.5% of a participating employee’s compensation. Participants can invest their account balances into several investment alternatives. The 401(k) plan does not allow for investment in the Company’s common stock. During the years ended December 31, 2019, 2018 and 2017 the Company made cash contributions of $1.1 million, $1.0 million, and $1.0 million, respectively. The 401(k) plan also includes a discretionary profit-sharing component. During the years ended December 31, 2019, 2018 and 2017, the Company made discretionary profit-sharing contributions of $583 thousand, $497 thousand, and $550 thousand, respectively. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2019 | |
STOCK-BASED COMPENSATION PLANS. | |
STOCK-BASED COMPENSATION PLANS | 16. STOCK-BASED COMPENSATION PLANS In May 2019, the Company’s shareholders approved the Bridge Bancorp, Inc. 2019 Equity Incentive Plan (the “2019 Equity Incentive Plan”), which provides for the grant of stock-based and other incentive awards to officers, employees and directors of the Company. The 2019 Equity Incentive Plan superseded the Bridge Bancorp, Inc. 2012 Stock-Based Incentive Plan (the “2012 Equity Incentive Plan”). The 2012 Equity Incentive Plan superseded the 2006 Stock-Based Incentive Plan. The maximum number of shares of stock, in the aggregate, that may be granted under the 2019 Equity Incentive Plan as stock options, restricted stock, or restricted stock units is 370,000 plus the number of shares of stock which have been reserved but not issued under the 2012 Equity Incentive Plan, and any awards that are forfeited under the 2012 Equity Incentive Plan after the effective date of the 2019 Equity Incentive Plan. No further grants will be made under the 2012 Equity Incentive Plan. Currently outstanding grants under the 2012 Equity Incentive Plan will not be affected. The number of shares of common stock of Bridge Bancorp, Inc. available for stock-based awards under the 2019 Equity Incentive Plan is 370,000 plus 162,738 shares that were remaining under the 2012 Equity Incentive Plan. At December 31, 2019, 526,518 shares remain available for issuance, 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 2019 Equity Incentive Plan . The Company accounts for the 2019 Equity Incentive Plan under FASB ASC 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 years ended December 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 years ended December 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: Year Ended December 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 No new grants of stock options were awarded during the year ended December 31, 2017. There were no stock options outstanding as of December 31, 2017. Compensation expense attributable to stock options was $197 thousand and $91 thousand for the years ended December 31, 2019 and 2018, respectively . There was no compensation expense attributable to stock options for the year ended December 31, 2017 because all stock options were vested. As of December 31 , 2019, there was $341 thousand of total unrecognized compensation cost related to unvested stock options. The cost is expected to be recognized over a weighted-average period of 1.8 years. The following table summarizes the status of the 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, December 31, 2019 110,660 35.71 8.7 years $ — Vested and Exercisable, December 31, 2019 15,795 36.19 8.1 years — Number of Exercise Range of Exercise Prices Options Price $35.35 63,267 $ 35.35 36.19 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 corporate goals. The following table summarizes the unvested RSA activity for the year ended December 31, 2019: Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2019 324,882 $ 29.13 Granted 78,952 31.92 Vested (90,586) 27.20 Forfeited (19,531) 30.62 Unvested, December 31, 2019 293,717 30.37 During the year ended December 31, 2019, the Company granted a total of 78,952 RSAs. Of the 78,952 RSAs granted, 49,925 time-vested RSAs vest ratably over five years and 29,027 time-vested RSAs vest ratably over three years. During the year ended December 31, 2018, the Company granted RSAs of 83,782 shares. Of the 83,782 shares granted, 44,750 shares vest over five years, 13,915 shares vest over three years 25,117 performance-based RSAs vest ratably over two years, subject to the achievement of the Company’s 2018 corporate goals. During the year ended December 31, 2017, the Company granted RSAs of 71,781 shares. Of the 71,781 shares granted, 31,860 shares vest over seven years with a third vesting after years five, six and seven, 25,396 shares vest over five years with a third vesting after years three, four and five, 11,070 shares vest ratably over three years and 3,455 shares vest ratably over nine months. As of December 31, 2019, there were 293,717 unvested RSAs consisting of 282,784 time-vested RSAs and 10,933 performance-based RSAs. Compensation expense attributable to RSAs was $2.2 million, $2.4 million and $1.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. The total fair value of shares vested during the years ended December 31, 2019, 2018 and 2017, was $2.5 million, $1.5 million and $1.1 million, respectively. As of December 31, 2019, there was $4.7 million of total unrecognized compensation costs related to non-vested RSAs. The cost is expected to be recognized over a weighted-average period of 3.0 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. The following table summarizes the unvested NEO RSU activity for the year ended December 31, 2019: Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2019 79,238 $ 27.36 Granted 22,305 33.42 Reinvested dividends 2,556 29.03 Forfeited (16,184) 23.34 Vested (2,573) 32.90 Unvested, December 31, 2019 85,342 29.59 During the year ended December 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. During the year ended December 31, 2018 in accordance with the LTI plan for NEOs, the Company granted 21,693 RSUs. Of the 21,693 RSUs granted, 12,522 time-vested RSUs vest ratably over five years and 9,171 performance-based RSUs vest subject to the achievement of the Company’s three-year corporate goal for the three-year period ending December 31, 2020. Compensation expense attributable to LTI plan RSUs was $693 thousand, $462 thousand and $309 thousand in connection with these awards for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, there was $1.3 million of total unrecognized compensation cost related to non-vested RSUs. The cost is expected to be recognized over a weighted-average period of 2.7 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 $570 thousand, $560 thousand and $530 thousand for the years ended December 31, 2019, 2018 and 2017, 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. Eligible employees purchased 7,888 shares and 3,758 shares of the Company’s common stock under the ESPP during the years ended December 31, 2019 and 2018, respectively. No expense was recorded related to ESPP for the years ended December 31, 2019 and 2018. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE. | |
EARNINGS PER SHARE | 17. EARNINGS PER SHARE FASB ASC 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 EPS. The RSAs and certain 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 years ended December 31, 2019, 2018 and 2017: Year Ended December 31, (In thousands, except per share data) 2019 2018 2017 Net income $ 51,691 $ 39,227 $ 20,539 Dividends paid on and earnings allocated to participating securities (1,096) (853) (415) Income attributable to common stock $ 50,595 $ 38,374 $ 20,124 Weighted average common shares outstanding, including participating securities 19,952 19,875 19,759 Weighted average participating securities (424) (434) (404) Weighted average common shares outstanding 19,528 19,441 19,355 Basic earnings per common share $ 2.59 $ 1.97 $ 1.04 Income attributable to common stock $ 50,595 $ 38,374 $ 20,124 Weighted average common shares outstanding 19,528 19,441 19,355 Incremental shares from assumed conversions of options and restricted stock units 31 27 24 Weighted average common and equivalent shares outstanding 19,559 19,468 19,379 Diluted earnings per common share $ 2.59 $ 1.97 $ 1.04 There were 110,660 and 47,393 stock options outstanding at December 31, 2019 and 2018, respectively, that were not included in the computation of diluted earnings per share for the years ended December 31, 2019 and 2018 because the options’ exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. There were no stock options outstanding for the year ended December 31, 2017. There were no RSUs that were antidilutive for the years ended December 31, 2019 and 2017. There were 3,156 RSUs that were antidilutive for the year ended December 31, 2018. The assumed conversion of the TPS was antidilutive for the year ended December 31, 2017, and therefore was not included in the computation of diluted earnings per share during that year. |
COMMITMENTS AND CONTINGENCIES A
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS | |
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS | 18. COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS In the normal course of business, there are various outstanding commitments and contingent liabilities, such as claims and legal actions, guarantees and commitments to extend credit, which are not reflected in the accompanying consolidated financial statements. No material losses are anticipated as a result of these commitments and contingencies. Loan commitments Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer-financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk of credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, often including obtaining collateral at exercise of the commitment. The following represents commitments outstanding: December 31, (In thousands) 2019 2018 Standby letters of credit $ 23,670 $ 26,047 Loan commitments outstanding (1) 117,044 65,796 Unused lines of credit 674,194 636,772 Total commitments outstanding $ 814,908 $ 728,615 (1) Of the $117.0 million of loan commitments outstanding at December 31, 2019, $5.9 million are fixed rate commitments and $111.1 million are variable rate commitments. Of the $65.8 million of loan commitments outstanding at December 31, 2018, $20.5 million are fixed rate commitments and $45.3 million are variable rate commitments. Litigation The Company and its subsidiaries are subject to certain pending and threatened legal actions that arise out of the normal course of business. In the opinion of management, the resolution of any such pending or threatened litigation is not expected to have a material adverse effect on the Company’s consolidated financial statements. Other During 2019, the Bank was required to maintain certain cash balances with the FRB for reserve and clearing requirements. The required cash balance at December 31, 2019 was $20.6 million. During 2019, the Bank invested overnight with the FRB and the average balance maintained during 2019 was $63.3 million. During 2019, the Bank maintained an overnight line of credit with the FHLB. The Bank has the ability to borrow against its unencumbered residential and commercial mortgages and investment securities owned by the Bank. At December 31, 2019, the Bank had aggregate lines of credit of $373.0 million with unaffiliated correspondent banks to provide short-term credit for liquidity requirements. Of these aggregate lines of credit, $353.0 million is available on an unsecured basis. As of December 31, 2019, the Bank had no such borrowings outstanding. In March 2001, the Bank entered into a Master Repurchase Agreement with the FHLB whereby the FHLB agrees to purchase securities from the Bank, upon the Bank’s request, with the simultaneous agreement to sell the same or similar securities back to the Bank at a future date. Securities are limited, under the agreement, to government securities, securities issued, guaranteed or collateralized by any agency or instrumentality of the U.S. Government or any government sponsored enterprise, and non-agency AA and AAA rated mortgage-backed securities. At December 31, 2019, there was up to $1.5 billion available for transactions under this agreement, assuming availability of required collateral. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
REGULATORY CAPITAL REQUIREMENTS | |
REGULATORY CAPITAL REQUIREMENTS | 19. REGULATORY CAPITAL REQUIREMENTS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital requirements that involve quantitative measures of the Company’s and Bank’s assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classifications also are subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total, tier 1, and common equity tier 1 capital to risk-weighted assets and of tier 1 capital to average assets. Tier 1 capital, risk-weighted assets and average assets are as defined by regulation. The required minimums for the Company and Bank are set forth in the tables that follow. The Company and the Bank met all capital adequacy requirements at December 31, 2019 and 2018. On January 1, 2015, the Basel III Capital Rules became effective and include transition provisions through January 1, 2020. These rules provide for the following minimum capital to risk-weighted assets ratios as of January 1, 2015: a) 4.5% based on common equity tier 1 capital ("CET1"); b) 6.0% based on tier 1 capital; and c) 8.0% based on total regulatory capital. A minimum leverage ratio (tier 1 capital as a percentage of total average assets) of 4.0% is also required under the Basel III Capital Rules. The Basel III Capital Rules additionally require institutions to retain a capital conservation buffer, composed of CET1, of 2.5% above these required minimum capital ratio levels. The capital conservation buffer requirement was phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increased by 0.625% each subsequent January 1, until fully implemented at 2.5% on January 1, 2020. Including the capital conservation buffer, the Company and the Bank effectively have the following minimum capital to risk-weighted assets ratios: a) 7.0% based on CET1; b) 8.5% based on tier 1 capital; and c) 10.5% based on total regulatory capital. The Company and the Bank made the one-time, permanent election to continue to exclude the effects of accumulated other comprehensive income or loss items included in stockholders’ equity for the purposes of determining the regulatory capital ratios. As of December 31, 2019, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” the Bank must maintain minimum total risk-based, tier 1 risk-based, common equity tier 1 risk-based, and tier 1 leverage ratios as set forth in the tables below. Since that notification, there are no conditions or events that management believes have changed the institution’s category. In accordance with the recently enacted Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies have adopted, effective January 1, 2020, a final rule whereby financial institutions and financial institution holding companies that have less than $10 billion in total consolidated assets and meet other qualifying criteria, including a leverage ratio of greater than 9 percent, will be eligible to opt into a community bank leverage ratio framework (“qualifying community banking organizations”). Qualifying community banking organizations that elect to use the community bank leverage ratio framework and that maintain a leverage ratio of greater than 9 percent will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the agencies’ capital rules and will be considered to have met the well-capitalized ratio requirements under the Prompt Corrective Action statutes. The agencies reserved the authority to disallow the use of the community bank leverage ratio framework by a financial institution or holding company, based on the risk profile of the organization. The following tables present actual capital levels and minimum required levels for the Company and the Bank under Basel III rules at December 31, 2019 and 2018: December 31, 2019 Minimum Capital Minimum To Be Well Minimum Capital Adequacy Requirement with Capitalized Under Prompt Actual Capital Adequacy Requirement Capital Conservation Buffer Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Common equity tier 1 capital to risk-weighted assets: Consolidated $ 397,800 10.2 % $ 176,121 4.5 % $ 273,967 7.0 % n/a n/a Bank 474,056 12.1 176,114 4.5 273,954 7.0 $ 254,386 6.5 % Total capital to risk-weighted assets: Consolidated 510,862 13.1 313,105 8.0 410,950 10.5 n/a n/a Bank 507,118 13.0 313,091 8.0 410,932 10.5 391,363 10.0 Tier 1 capital to risk-weighted assets: Consolidated 397,800 10.2 234,828 6.0 332,674 8.5 n/a n/a Bank 474,056 12.1 234,818 6.0 332,659 8.5 313,091 8.0 Tier 1 capital to average assets: Consolidated 397,800 8.5 187,386 4.0 n/a n/a n/a n/a Bank 474,056 10.1 187,377 4.0 n/a n/a 234,222 5.0 December 31, 2018 Minimum Capital Minimum To Be Well Minimum Capital Adequacy Requirement with Capitalized Under Prompt Actual Capital Adequacy Requirement Capital Conservation Buffer Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Common equity tier 1 capital to risk-weighted assets: Consolidated $ 360,688 10.4 % $ 155,836 4.5 % $ 220,767 6.375 % n/a n/a Bank 438,963 12.7 155,831 4.5 220,761 6.375 $ 225,089 6.5 % Total capital to risk-weighted assets: Consolidated 472,382 13.6 277,041 8.0 341,973 9.875 n/a n/a Bank 470,657 13.6 277,033 8.0 341,963 9.875 346,291 10.0 Tier 1 capital to risk-weighted assets: Consolidated 360,688 10.4 207,781 6.0 272,712 7.875 n/a n/a Bank 438,963 12.7 207,775 6.0 272,704 7.875 277,033 8.0 Tier 1 capital to average assets: Consolidated 360,688 8.1 177,782 4.0 n/a n/a n/a n/a Bank 438,963 9.9 177,776 4.0 n/a n/a 222,220 5.0 |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 20. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed financial information of Bridge Bancorp, Inc. (Parent Company only) follows: Condensed Balance Sheets December 31, (In thousands) 2019 2018 Assets: Cash and cash equivalents $ 3,663 $ 1,537 Other assets 174 103 Investment in the Bank 573,410 532,105 Total assets $ 577,247 $ 533,745 Liabilities and stockholders’ equity: Subordinated debentures $ 78,920 $ 78,781 Other liabilities 1,173 1,134 Total liabilities 80,093 79,915 Total stockholders’ equity 497,154 453,830 Total liabilities and stockholders’ equity $ 577,247 $ 533,745 Condensed Statements of Income Year Ended December 31, (In thousands) 2019 2018 2017 Dividends from the Bank $ 24,500 $ 15,000 $ — Interest expense 4,539 4,539 4,588 Non-interest expense 104 135 147 Income (loss) before income taxes and equity in undistributed earnings of the Bank 19,857 10,326 (4,735) Income tax benefit (994) (1,005) (1,774) Income (loss) before equity in undistributed earnings of the Bank 20,851 11,331 (2,961) Equity in undistributed earnings of the Bank 30,840 27,896 23,500 Net income $ 51,691 $ 39,227 $ 20,539 Condensed Statements of Cash Flows Year Ended December 31, (In thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 51,691 $ 39,227 $ 20,539 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed earnings of the Bank (30,840) (27,896) (23,500) Amortization 139 140 139 (Increase) decrease in other assets (73) 108 18 Increase (decrease) in other liabilities 39 11 (398) Net cash provided by (used in) operating activities 20,956 11,590 (3,202) Cash flows from financing activities: Repayment of junior subordinated debentures — — (352) Net proceeds from issuance of common stock 1,102 1,017 951 Purchase of treasury stock (625) — — Repurchase of surrendered stock from vesting of stock plans (887) (586) (350) Cash dividends paid (18,420) (18,342) (18,238) Net cash used in financing activities (18,830) (17,911) (17,989) Net increase (decrease) in cash and cash equivalents 2,126 (6,321) (21,191) Cash and cash equivalents at beginning of year 1,537 7,858 29,049 Cash and cash equivalents at end of year $ 3,663 $ 1,537 $ 7,858 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS). | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 21. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the components of other comprehensive income (loss) and related income tax effects: Year Ended December 31, (In thousands) 2019 2018 2017 Unrealized holding gains (losses) on available for sale securities $ 15,524 $ (8,429) $ (1,107) Reclassification adjustments for (gains) losses realized in income (201) 7,921 (38) Income tax effect (4,467) 160 640 Net change in unrealized gains (losses) on available for sale securities 10,856 (348) (505) Unrealized net loss arising during the period (1,076) (1,567) (302) Reclassification adjustments for amortization realized in income 487 384 480 Income tax effect 179 351 15 Net change in post-retirement obligation (410) (832) 193 Change in fair value of derivatives used for cash flow hedges (3,601) 2,493 463 Reclassification adjustments for (gains) losses realized in income (1,588) (1,068) 1,419 Income tax effect 1,514 (418) (793) Net change in unrealized (losses) gains on cash flow hedges (3,675) 1,007 1,089 Other comprehensive income (loss) $ 6,771 $ (173) $ 777 The following is a summary of the accumulated other comprehensive loss balances, net of income taxes, at the dates indicated: Other December 31, Comprehensive December 31, (In thousands) 2018 Income 2019 Unrealized (losses) gains on available for sale securities $ (11,685) $ 10,856 $ (829) Unrealized losses on pension benefits (6,365) (410) (6,775) Unrealized gains (losses) on cash flow hedges 2,938 (3,675) (737) Accumulated other comprehensive (loss) income, net of income taxes $ (15,112) $ 6,771 $ (8,341) The following represents the reclassifications out of accumulated other comprehensive (loss) income: Year Ended December 31, Affected Line Item in the (In thousands) 2019 2018 2017 Consolidated Statements of Income Realized gains (losses) on sale of available for sale securities $ 201 $ (7,921) $ 38 Net securities gains (losses) Amortization of defined benefit pension plan and defined benefit plan component of the SERP: Prior service credit 77 77 77 Other operating expenses Transition obligation — (5) (27) Other operating expenses Actuarial losses (564) (456) (530) Other operating expenses Realized gains (losses) on cash flow hedges 1,588 1,068 (1,419) Interest expense Total reclassifications, before income tax 1,302 (7,237) (1,861) Income tax (expense) benefit (380) 2,105 762 Income tax expense Total reclassifications, net of income tax $ 922 $ (5,132) $ (1,099) |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 22. QUARTERLY FINANCIAL DATA (UNAUDITED) Selected Consolidated Quarterly Financial Data follows: 2019 Quarter Ended (In thousands, except per share amounts) March 31, June 30, September 30, December 31, Interest income $ 44,515 $ 46,352 $ 46,354 $ 44,320 Interest expense 10,192 10,835 9,639 8,672 Net interest income 34,323 35,517 36,715 35,648 Provision for loan losses 600 3,500 1,000 600 Net interest income after provision for loan losses 33,723 32,017 35,715 35,048 Non-interest income 5,218 5,499 6,244 8,426 Non-interest expense 22,599 24,004 24,204 25,332 Income before income taxes 16,342 13,512 17,755 18,142 Income tax expense 3,415 2,859 3,852 3,934 Net income $ 12,927 $ 10,653 $ 13,903 $ 14,208 Basic earnings per share $ 0.65 $ 0.53 $ 0.70 $ 0.71 Diluted earnings per share $ 0.65 $ 0.53 $ 0.70 $ 0.71 2018 Quarter Ended (In thousands, except per share amounts) March 31, June 30, September 30, December 31, Interest income $ 41,364 $ 41,551 $ 42,589 $ 43,480 Interest expense 6,825 7,622 8,375 9,382 Net interest income 34,539 33,929 34,214 34,098 Provision for loan losses 800 400 200 400 Net interest income after provision for loan losses 33,739 33,529 34,014 33,698 Non-interest income (loss) 4,113 (2,578) (1) 4,918 5,115 Non-interest expense 22,598 22,507 31,004 (2) 22,071 (3) Income before income taxes 15,254 8,444 7,928 16,742 Income tax expense 3,181 1,701 1,381 2,878 Net income $ 12,073 $ 6,743 $ 6,547 $ 13,864 Basic earnings per share $ 0.61 $ 0.34 $ 0.33 $ 0.70 Diluted earnings per share $ 0.61 $ 0.34 $ 0.33 $ 0.70 (1) 2018 amount includes a pre-tax net securities loss of $7.9 million. (2) 2018 amount includes a pre-tax charge related to the fraudulent conduct of a business customer of $9.5 million. (3) 2018 amount includes a pre-tax charge of $0.8 million related to office relocation costs and a pre-tax recovery of $0.6 million related to fraud loss. |
NET FRAUD LOSS
NET FRAUD LOSS | 12 Months Ended |
Dec. 31, 2019 | |
NET FRAUD LOSS | |
NET FRAUD LOSS | 23. NET FRAUD LOSS The Company incurred a pre-tax charge of $8.9 million in the year ended December 31, 2018 relating to the fraudulent conduct of a business customer through its deposit accounts at the Bank. The Company is working with the appropriate law enforcement authorities in connection with this matter. The customer has filed a petition pursuant to Chapter 11 of the bankruptcy code. In January 2019, the Company filed a claim for the loss with its insurance carrier, but the extent and amount of coverage is not yet certain. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation The consolidated financial statements include Bridge Bancorp, Inc. (the “Holding Company”), a bank holding company incorporated under the laws of the State of New York, and its wholly-owned subsidiary, BNB Bank (the “Bank”), together referred to as “the Company.” 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”). Intercompany transactions and balances are eliminated in consolidation. The Company provides financial services through its branches in its primary market areas of Suffolk and Nassau Counties on Long Island and the New York City boroughs. The Bank’s primary deposit products are time, savings and demand deposits from the consumers, businesses and local municipalities in its market area. Its primary lending products are commercial real estate, multi-family, commercial and industrial, and residential mortgage loans. There are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the area. The audited consolidated financial statements presented in this Annual Report on Form 10-K 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 financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and general practices within the financial institution industry. The following is a description of the significant accounting policies that the Company follows in preparing its consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual future results could differ. |
Cash Flows | Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest- earning deposits with banks, and federal funds sold, which mature overnight. Net cash flows are reported for customer loan and deposit transactions, federal funds purchased, FHLB advances, and repurchase agreements. |
Securities | Securities Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting in observable price changes in orderly transactions for the identical or a similar investment. On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2016-01 , Financial Instruments , which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The adoption of this guidance resulted in no change to the Company’s consolidated financial statements. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the near-term prospects of the issuer. Management also assesses whether it intends to sell, or is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet these criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Securities, Restricted Securities, restricted represents FHLB, Federal Reserve Bank (“FRB”) and bankers’ banks stock, which are reported at cost. The Bank is a member of the FHLB system. 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. FHLB stock is periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Loans Held for Sale | Loans Held for Sale Loans held for sale are carried at the lower of aggregate cost or estimated fair value. Any subsequent declines in fair value below the initial carrying value are recorded as a valuation allowance, which is established through a charge to earnings. |
Loans, Loan Interest Income Recognition and Loans Held for Sale | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal amount outstanding, net of partial charge-offs, deferred origination costs and fees and purchase premiums and discounts. Loan origination and commitment fees and certain direct and indirect costs incurred in connection with loan originations are deferred and amortized to income over the life of the related loans as an adjustment to yield. When a loan prepays, the remaining unamortized net deferred origination fees or costs are recognized in the current year. Interest on loans is credited to income based on the principal outstanding during the period. Past due status is based on the contractual terms of the loan. Loans that are 90 days past due are automatically placed on non-accrual and previously accrued interest is reversed and charged against interest income. However, if the loan is in the process of collection and the Bank has reasonable assurance that the loan will be fully collectable based upon an individual loan evaluation assessing such factors as collateral and collectability, accrued interest will be recognized as earned. If a payment is received when a loan is non-accrual or a troubled debt restructuring loan is non-accrual, the payment is applied to the principal balance. A troubled debt restructured loan performing in accordance with its modified terms is maintained on accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status and the probability of collecting scheduled principal and interest payments when due. Loans for which the terms have been modified as a concession to the borrower due to the borrower experiencing financial difficulties are considered troubled debt restructurings and are classified as impaired. Loans considered to be troubled debt restructurings can be categorized as non-accrual or performing. The impairment of a loan is measured at the present value of expected future cash flows using the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral less costs to sell if the loan is collateral dependent. Loans that experience minor payment delays and payment shortfalls generally are not classified as impaired. Non-residential real estate loans over $200,000 and residential real estate loans over $1.0 million are individually evaluated for impairment. Smaller balance loans may also be individually evaluated for impairment if they are part of a larger impaired relationship. Loans with balances below the aforementioned thresholds are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Loans that were acquired through the acquisition of Community National Bank (“CNB”) on June 19, 2015 and First National Bank of New York (“FNBNY”) on February 14, 2014, were initially recorded at fair value with no carryover of the related allowance for loan losses. After acquisition, losses are recognized through the allowance for loan losses. Determining fair value of the loans involves estimating the amount and timing of expected principal and interest cash flows to be collected on the loans and discounting those cash flows at a market interest rate. Some of the loans at the time of acquisition showed evidence of credit deterioration since origination. These loans are considered purchased credit impaired (“PCI”) loans. For PCI loans, the excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable discount. The non-accretable discount represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent increases to the expected cash flows result in the reversal of a corresponding amount of the non-accretable discount, which is then reclassified as accretable discount and recognized into interest income over the remaining life of the loan using the interest method. Subsequent decreases to the expected cash flows require management to evaluate the need for an addition to the allowance for loan losses. PCI loans that were non-accrual prior to acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if management can reasonably estimate the timing and amount of the expected cash flows on such loans and if management expects to fully collect the new carrying value of the loans. As such, management may no longer consider the loans to be non-accrual or non-performing and may accrue interest on these loans, including the impact of any accretable discount. Unless otherwise noted, the above policy is applied consistently to all loan classes. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established and maintained through a provision for loan losses based on probable incurred losses in our loan portfolio. Management evaluates the adequacy of the allowance on a quarterly basis. The allowance is comprised of both individual valuation allowances and loan pool valuation allowances. Management monitors its entire loan portfolio regularly, with consideration given to detailed analysis of classified loans, repayment patterns, probable incurred losses, past loss experience, current economic conditions, and various types of concentrations of credit. Additions to the allowance are charged to expense and realized losses, net of recoveries, are charged against the allowance. Individual valuation allowances are established in connection with specific loan reviews and the asset classification process including the procedures for impairment testing under Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) 310, “Receivables”. Such valuation, which includes a review of loans for which full collectability in accordance with contractual terms is not reasonably assured, considers the estimated fair value of the underlying collateral less the costs to sell, if any, or the present value of expected future cash flows, or the loan’s observable market value. Any shortfall that exists from this analysis results in a specific allowance for the loan. Pursuant to the Company’s policy, loan losses must be charged-off in the period the loans, or portions thereof, are deemed uncollectable. Assumptions and judgments by management, in conjunction with outside sources, are used to determine whether full collectability of a loan is not reasonably assured. These assumptions and judgments are also used to determine the estimates of the fair value of the underlying collateral or the present value of expected future cash flows or the loan’s observable market value. Individual valuation allowances could differ materially as a result of changes in these assumptions and judgments. Individual loan analyses are periodically performed on specific loans considered impaired. The results of the individual valuation allowances are aggregated and included in the overall allowance for loan losses. Loan pool valuation allowances represent loss allowances that have been established to recognize the inherent risks associated with the Bank’s lending activities, but which, unlike individual allowances, have not been allocated to particular problem assets. Pool evaluations are broken down into loans with homogenous characteristics by loan type and include commercial real estate mortgages, owner and non-owner occupied; multi-family mortgage loans; home equity loans; residential real estate mortgages; commercial, industrial and agricultural loans, secured and unsecured; real estate construction and land loans; and consumer loans. Management considers a variety of factors in determining the adequacy of the valuation allowance and has developed a range of valuation allowances necessary to adequately provide for probable incurred losses in each pool of loans. Management considers the Bank’s charge-off history along with the growth in the portfolio as well as the Bank’s credit administration and asset management philosophies and procedures when determining the allowances for each pool. In addition, management evaluates and considers credit risk ratings, which includes management’s evaluation of: cash flow, collateral, guarantor support, financial disclosures, industry trends and strength of borrowers’ management, the impact that economic and market conditions may have on the portfolio as well as known and inherent risks in the portfolio. Finally, management evaluates and considers the allowance ratios and coverage percentages of both peer group and regulatory agency data. These evaluations are inherently subjective because, even though they are based on objective data, it is management’s interpretation of that data that determines the amount of the appropriate allowance. If the evaluations prove to be incorrect, the allowance for loan losses may not be sufficient to cover losses inherent in the loan portfolio, resulting in additions to the allowance for loan losses. For PCI loans, a valuation allowance is established when it is probable that the Bank will be unable to collect all the cash flows expected at acquisition plus additional cash flows expected to be collected arising from changes in estimate after acquisition. A specific allowance is established when subsequent evaluations of expected cash flows from PCI loans reflect a decrease in those estimates. The allowance established represents the excess of the recorded investment in those loans over the present value of the currently estimated future cash flow, discounted at the last effective accounting yield. The Bank uses assumptions and methodologies that are relevant to estimating the level of impairment and probable losses in the loan portfolio. To the extent that the data supporting such assumptions has limitations, management’s judgment and experience play a key role in recording the allowance estimates. Additions to the allowance for loan losses are made by provisions charged to earnings. Furthermore, an improvement in the expected cash flows related to PCI loans would result in a reduction of the required specific allowance with a corresponding credit to the provision. Future additions or reductions to the allowance may be necessary based on changes in economic, market or other conditions. Changes in estimates could result in a material change in the allowance. In addition, various regulatory agencies, as an integral part of the examination process, periodically review the allowance for loan losses. Such agencies may require the Bank to recognize adjustments to the allowance based on their judgments of the information available to them at the time of their examination. A loan is considered a potential charge-off when it is in default of either principal or interest for a period of 90, 120 or 180 days, depending upon the loan type, as of the end of the prior month. In addition to delinquency criteria, other triggering events may include, but are not limited to, notice of bankruptcy by the borrower or guarantor, death of the borrower, and deficiency balance from the sale of collateral. Unless otherwise noted, the above policy is applied consistently to all loan portfolio segments. |
Premises and Equipment | Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with a useful life of fifty years for buildings and a range of two to ten years for equipment, computer hardware and software, and furniture and fixtures. Leasehold improvements are amortized over the lives of the respective leases or the service lives of the improvements, whichever is shorter. Land is carried at cost. Improvements and major repairs are capitalized, while the cost of ordinary maintenance, repairs and minor improvements are charged to expense. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Bank is the owner and beneficiary of life insurance policies on certain employees. Bank-owned life insurance (“BOLI”) is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Other Real Estate Owned | Other Real Estate Owned Real estate properties acquired through, or in lieu of, foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. |
Goodwill and other Intangible Assets | Goodwill and Other Intangible Assets Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and indefinite-lived intangible assets are not amortized, but tested for impairment at least annually, or more frequently if events and circumstances exist that indicate the carrying amount of the asset may be impaired. The Company has selected November 30 as the date to perform the annual impairment test. Goodwill and the BNB Bank trademark are intangible assets with indefinite lives on the Company’s balance sheet. Other intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangible assets are amortized on an accelerated method over their estimated useful lives of ten years. Other intangible assets also include servicing rights, which result from the sale of Small Business Administration (“SBA”) loans with servicing rights retained. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as unused lines of credit, commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded on the balance sheet when they are funded. |
Derivatives | Derivatives The Company records cash flow hedges at the inception of the derivative contract based on the Company’s intentions and belief as to likely effectiveness as a hedge. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income (“OCI”) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings. |
Income Taxes | Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. It is management’s position, as currently supported by the facts and circumstances, that no valuation allowance is necessary against any of the Company’s deferred tax assets. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. There are no such tax positions in the Company’s financial statements at December 31, 2019 and 2018. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. The Company did not have any amounts accrued for interest and penalties at December 31, 2019 and 2018. |
Treasury Stock | Treasury Stock Repurchases of common stock are recorded as treasury stock at cost. Treasury stock is reissued using the first in, first out method. |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) Basic EPS is net income attributable to common shareholders divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted EPS includes the dilutive effect of additional potential common shares issuable under stock options. |
Dividend Restriction | Dividend Restriction Cash available for distribution of dividends to stockholders of the Company is primarily derived from cash and cash equivalents of the Company and dividends paid by the Bank to the Company. Prior regulatory approval is required if the total of all dividends declared by the Bank in any calendar year exceeds the total of the Bank’s net income of that year combined with its retained net income of the preceding two years. Dividends from the Bank to the Company at January 1, 2020 are limited to $58.7 million, which represents the Bank’s net retained earnings from the previous two years. During 2019, the Bank paid $24.5 million in cash dividends to the Company. |
Segment Reporting | Segment Reporting While management monitors the revenue streams of the various products and services, the identifiable segments are not material and operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Stock-Based Compensation | Stock-Based Compensation Compensation cost is recognized for stock options, restricted stock awards (“RSAs”), and restricted stock units (“RSUs”) issued to employees and independent directors, based on the fair value of these awards at the date of the grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used to estimate the fair value for RSAs and RSUs. Compensation cost is recognized as expense over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s accounting policy is to recognize forfeitures as they occur. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on available for sale securities, unrealized gains and losses on cash flow hedges, and changes in the funded status of the pension plan, which are also recognized as separate components of equity. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation. |
Standards Effective in 2019 and 2020 | 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 7. “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, the FASB issued guidance to replace the incurred loss methodology with an expected loss methodology, which is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and 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 leases recognized by a lessor in accordance with Topic 842 on leases. In addition, Topic 326 made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available for sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted Topic 326 in the first quarter of 2020 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. A cumulative-effect adjustment will be recorded in retained earnings as of January 1, 2020. Results for reporting periods beginning after January 1, 2020 will be presented under Topic 326 while prior period amounts will continue to be reported in accordance with previously applicable GAAP. T he impact of adoption will be significantly influenced by the composition, characteristics and quality of the loans and securities portfolios, as well as the prevailing economic conditions and forecasts as of the adoption date. T he Company continues to finalize its impact assumptions, documentation of internal controls and model validation, and expects the cumulative effect of adopting Topic 326 as of January 1, 2020 will result in an initial increase to the allowance for credit losses, including the increase in reserve for unfunded commitments, of up to approximately 10% above the current allowance for loan losses levels. Based on the credit quality of the Company's securities portfolio, the Company expects the allowance for credit losses for securities held to maturity and securities available for sale to be minimal. 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 did not have an 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 did not have a material effect on the Company's consolidated financial statements. |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SECURITIES. | |
Schedule of amortized cost and fair value of the available for sale and held to maturity | December 31, 2019 2018 Gross Gross Estimated Gross Gross Estimated Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Cost Gains Losses Value Available for sale: U.S. Treasury securities $ 50,833 $ — $ (11) $ 50,822 $ — $ — $ — $ — U.S. GSE securities 5,000 — (5) 4,995 29,997 — (947) 29,050 State and municipal obligations 34,303 704 (43) 34,964 40,980 105 (354) 40,731 U.S. GSE residential mortgage-backed securities 84,550 609 (468) 84,691 96,536 38 (3,036) 93,538 U.S. GSE residential collateralized mortgage obligations 278,149 1,166 (1,464) 277,851 362,905 826 (5,954) 357,777 U.S. GSE commercial mortgage-backed securities 13,656 23 (70) 13,609 3,536 — (28) 3,508 U.S. GSE commercial collateralized mortgage obligations 102,722 1,723 (289) 104,156 93,177 — (2,539) 90,638 Other asset-backed securities 24,250 — (849) 23,401 24,250 — (1,031) 23,219 Corporate bonds 46,000 — (2,198) 43,802 46,000 — (3,575) 42,425 Total available for sale 639,463 4,225 (5,397) 638,291 697,381 969 (17,464) 680,886 Held to maturity: State and municipal obligations 41,008 809 — 41,817 53,540 290 (276) 53,554 U.S. GSE residential mortgage-backed securities 8,142 5 (54) 8,093 9,688 — (336) 9,352 U.S. GSE residential collateralized mortgage obligations 39,936 624 (62) 40,498 48,244 163 (1,130) 47,277 U.S. GSE commercial mortgage-backed securities 17,215 102 (82) 17,235 19,098 4 (620) 18,482 U.S. GSE commercial collateralized mortgage obligations 27,337 191 (144) 27,384 29,593 — (1,466) 28,127 Total held to maturity 133,638 1,731 (342) 135,027 160,163 457 (3,828) 156,792 Total securities $ 773,101 $ 5,956 $ (5,739) $ 773,318 $ 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 | December 31, 2019 Within After One but After Five but After One Year Within Five Years Within Ten Years Ten Years Total Estimated Estimated Estimated Estimated Estimated Fair Amortized Fair Amortized Fair Amortized Fair Amortized Fair Amortized (In thousands) Value Cost Value Cost Value Cost Value Cost Value Cost Available for sale: U.S. Treasury securities $ 50,822 $ 50,833 $ — $ — $ — $ — $ — $ — $ 50,822 $ 50,833 U.S. GSE securities — — 4,995 5,000 — — — — 4,995 5,000 State and municipal obligations 1,143 1,142 14,829 14,620 16,540 16,088 2,452 2,453 34,964 34,303 U.S. GSE residential mortgage-backed securities — — — — — — 84,691 84,550 84,691 84,550 U.S. GSE residential collateralized mortgage obligations — — — — — — 277,851 278,149 277,851 278,149 U.S. GSE commercial mortgage-backed securities — — 8,761 8,753 4,848 4,903 — — 13,609 13,656 U.S. GSE commercial collateralized mortgage obligations — — — — — — 104,156 102,722 104,156 102,722 Other asset backed securities — — — — — — 23,401 24,250 23,401 24,250 Corporate bonds — — 14,538 15,000 29,264 31,000 — — 43,802 46,000 Total available for sale 51,965 51,975 43,123 43,373 50,652 51,991 492,551 492,124 638,291 639,463 Held to maturity: State and municipal obligations 8,838 8,827 23,382 22,902 9,444 9,129 153 150 41,817 41,008 U.S. GSE residential mortgage-backed securities — — — — 5,919 5,947 2,174 2,195 8,093 8,142 U.S. GSE residential collateralized mortgage obligations — — — — 3,865 3,871 36,633 36,065 40,498 39,936 U.S. GSE commercial mortgage-backed securities — — 4,824 4,776 4,835 4,805 7,576 7,634 17,235 17,215 U.S. GSE commercial collateralized mortgage obligations — — 387 392 — — 26,997 26,945 27,384 27,337 Total held to maturity 8,838 8,827 28,593 28,070 24,063 23,752 73,533 72,989 135,027 133,638 Total securities $ 60,803 $ 60,802 $ 71,716 $ 71,443 $ 74,715 $ 75,743 $ 566,084 $ 565,113 $ 773,318 $ 773,101 |
Schedule of securities having a continuous unrealized loss position aggregated by a period of time less than or greater than 12 months | December 31, 2019 2018 Less than 12 months Greater than 12 months Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses Value Losses Available for sale: U.S. Treasury securities $ 50,822 $ (11) $ — $ — $ — $ — $ — $ — U.S. GSE securities — — 4,995 (5) — — 29,050 (947) State and municipal obligations 4,982 (42) 76 (1) 6,655 (15) 21,273 (339) U.S. GSE residential mortgage-backed securities 2,935 (30) 39,617 (438) — — 88,762 (3,036) U.S. GSE residential collateralized mortgage obligations 81,377 (480) 93,403 (984) 46,452 (141) 172,468 (5,813) U.S. GSE commercial mortgage-backed securities 6,648 (70) — — — — 3,508 (28) U.S. GSE commercial collateralized mortgage obligations 28,710 (145) 9,614 (144) 46,705 (623) 43,933 (1,916) Other asset-backed securities — — 23,401 (849) — — 23,219 (1,031) Corporate bonds — — 43,802 (2,198) — — 42,425 (3,575) Total available for sale $ 175,474 $ (778) $ 214,908 $ (4,619) $ 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 — — 7,268 (54) — — 9,352 (336) U.S. GSE residential collateralized mortgage obligations 6,750 (17) 6,105 (45) — — 40,665 (1,130) U.S. GSE commercial mortgage-backed securities — — 5,034 (82) — — 16,205 (620) U.S. GSE commercial collateralized mortgage obligations 13,038 (57) 4,300 (87) — — 28,127 (1,466) Total held to maturity $ 19,788 $ (74) $ 22,707 $ (268) $ 8,286 $ (26) $ 116,491 $ (3,802) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE. | |
Schedule of assets and liabilities measured on a recurring basis | December 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. Treasury securities $ 50,822 $ 50,822 U.S. GSE securities 4,995 4,995 State and municipal obligations 34,964 34,964 U.S. GSE residential mortgage-backed securities 84,691 84,691 U.S. GSE residential collateralized mortgage obligations 277,851 277,851 U.S. GSE commercial mortgage-backed securities 13,609 13,609 U.S. GSE commercial collateralized mortgage obligations 104,156 104,156 Other asset-backed securities 23,401 23,401 Corporate bonds 43,802 43,802 Total available for sale securities $ 638,291 $ 638,291 Derivatives $ 15,437 $ 15,437 Financial liabilities: Derivatives $ 16,645 $ 16,645 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 | December 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) Loans held for sale $ 12,643 $ 12,643 Impaired loans $ 6,981 $ 6,981 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 | December 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 $ 77,693 $ 77,693 $ — $ — $ 77,693 Interest-bearing deposits with banks 39,501 39,501 — — 39,501 Securities available for sale 638,291 — 638,291 — 638,291 Securities restricted 32,879 n/a n/a n/a n/a Securities held to maturity 133,638 — 135,027 — 135,027 Loans held for sale 12,643 — — 12,643 12,643 Loans, net 3,647,499 — — 3,685,770 3,685,770 Derivatives 15,437 — 15,437 — 15,437 Accrued interest receivable 10,908 — 2,181 8,727 10,908 Financial liabilities: Certificates of deposit 307,977 — 308,660 — 308,660 Demand and other deposits 3,506,670 3,506,670 — — 3,506,670 FHLB advances 435,000 195,000 239,622 — 434,622 Repurchase agreements 999 — 999 — 999 Subordinated debentures 78,920 — 81,010 — 81,010 Derivatives 16,645 — 16,645 — 16,645 Accrued interest payable 1,467 — 1,467 — 1,467 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) | 12 Months Ended |
Dec. 31, 2019 | |
LOANS. | |
Schedule of the major classifications of loans | December 31, (In thousands) 2019 2018 Commercial real estate mortgage loans $ 1,565,687 $ 1,373,556 Multi-family mortgage loans 812,174 585,827 Residential real estate mortgage loans 493,144 519,763 Commercial, industrial and agricultural loans 679,444 645,724 Real estate construction and land loans 97,311 123,393 Installment/consumer loans 24,836 20,509 Total loans 3,672,596 3,268,772 Net deferred loan costs and fees 7,689 7,039 Total loans held for investment 3,680,285 3,275,811 Allowance for loan losses (32,786) (31,418) Loans, net $ 3,647,499 $ 3,244,393 |
Schedule of loans by class categorized by internally assigned credit risk grades | December 31, 2019 (In thousands) Pass Special Mention Substandard Doubtful Total Commercial real estate: Owner occupied $ 511,444 $ 18,426 $ 1,218 $ — $ 531,088 Non-owner occupied 1,022,208 — 12,391 — 1,034,599 Multi-family 811,770 404 — — 812,174 Residential real estate: Residential mortgage 408,933 11,490 4,089 — 424,512 Home equity 67,016 910 706 — 68,632 Commercial and industrial: Secured 162,431 2,074 9,714 — 174,219 Unsecured 480,982 13,596 10,647 — 505,225 Real estate construction and land loans 95,530 — 1,781 — 97,311 Installment/consumer loans 23,976 103 757 — 24,836 Total loans $ 3,584,290 $ 47,003 $ 41,303 $ — $ 3,672,596 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 | December 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 $ 917 $ 433 $ — $ 225 $ 1,575 $ 529,513 $ 531,088 Non-owner occupied 98 — — 512 610 1,033,989 1,034,599 Multi-family — — — — — 812,174 812,174 Residential real estate: Residential mortgages 2,446 — — 2,086 4,532 419,980 424,512 Home equity 607 747 343 657 2,354 66,278 68,632 Commercial and industrial: Secured 24 187 — 206 417 173,802 174,219 Unsecured 249 534 — 530 1,313 503,912 505,225 Real estate construction and land loans — — — 123 123 97,188 97,311 Installment/consumer loans 124 — — 30 154 24,682 24,836 Total loans $ 4,465 $ 1,901 $ 343 $ 4,369 $ 11,078 $ 3,661,518 $ 3,672,596 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 | Year Ended December 31, 2019 December 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 $ 3,379 $ 3,401 $ — $ 1,286 $ 41 Non-owner occupied 2,296 2,296 — 2,149 99 Residential real estate: Residential mortgages — — — — — Home equity 294 300 — 74 — Commercial and industrial: Secured 494 494 — 287 18 Unsecured 8,863 8,863 — 6,601 411 Total with no related allowance recorded 15,326 15,354 — 10,397 569 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 9,612 9,612 3,435 6,189 223 Unsecured 2,045 2,051 1,241 1,838 86 Total with an allowance recorded 11,657 11,663 4,676 8,027 309 Total: Commercial real estate: Owner occupied 3,379 3,401 — 1,286 41 Non-owner occupied 2,296 2,296 — 2,149 99 Residential real estate: Residential mortgages — — — — — Home equity 294 300 — 74 — Commercial and industrial: Secured 10,106 10,106 3,435 6,476 241 Unsecured 10,908 10,914 1,241 8,439 497 Total $ 26,983 $ 27,017 $ 4,676 $ 18,424 $ 878 Year Ended December 31, 2018 December 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 $ — $ 177 $ — Non-owner occupied 2,816 2,816 — 1,583 88 Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 8,234 8,234 — 5,644 196 Unsecured 5,316 5,316 — 5,127 284 Total with no related allowance recorded 16,634 16,644 — 12,531 568 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 2,757 91 Unsecured — — — — — Total with an allowance recorded 2,721 2,721 189 2,757 91 Total: Commercial real estate: Owner occupied 268 278 — 177 — Non-owner occupied 2,816 2,816 — 1,583 88 Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured 10,955 10,955 189 8,401 287 Unsecured 5,316 5,316 — 5,127 284 Total $ 19,355 $ 19,365 $ 189 $ 15,288 $ 659 December 31, 2017 Year Ended December 31, 2017 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 $ 2,073 $ 2,073 $ — $ 173 $ 80 Non-owner occupied 9,089 9,089 — 7,001 400 Residential real estate: Residential mortgages — — — — — Home equity 100 100 — 8 — Commercial and industrial: Secured 7,368 8,013 — 2,633 211 Unsecured 2,154 2,408 — 592 36 Total with no related allowance recorded 20,784 21,683 — 10,407 727 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial and industrial: Secured — — — — — Unsecured 1,708 3,235 1,708 142 174 Total with an allowance recorded 1,708 3,235 1,708 142 174 Total: Commercial real estate: Owner occupied 2,073 2,073 — 173 80 Non-owner occupied 9,089 9,089 — 7,001 400 Residential real estate: Residential mortgages — — — — — Home equity 100 100 — 8 — Commercial and industrial: Secured 7,368 8,013 — 2,633 211 Unsecured 3,862 5,643 1,708 734 210 Total $ 22,492 $ 24,918 $ 1,708 $ 10,549 $ 901 |
Schedule of loans receivable by class modified as troubled debt restructuring | Modifications During the Year Ended December 31, 2019 2018 2017 Pre- Post- Pre- Post- Pre- Post- Modification Modification Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Loans Investment Investment Loans Investment Investment Commercial real estate: Owner occupied 3 $ 8,582 $ 8,582 — $ — $ — — $ — $ — Non-owner occupied — — — 1 926 926 2 7,764 7,764 Residential real estate: Residential mortgages 1 338 338 1 644 644 — — — Home equity — — — — — — — — — Commercial and industrial: Secured 7 6,920 6,920 2 1,994 1,994 7 6,828 6,828 Unsecured 8 5,908 5,908 8 5,655 5,655 2 189 189 Installment/consumer loans — — — — — — — — — Total 19 $ 21,748 $ 21,748 12 $ 9,219 $ 9,219 11 $ 14,781 $ 14,781 |
Schedule of activity in the accretable yield for the purchased credit impaired loans | Year Ended December 31, (In thousands) 2019 2018 Balance at beginning of period $ 460 $ 2,151 Accretion (515) (1,842) Reclassification from nonaccretable difference during the period 129 151 Accretable discount at end of period $ 74 $ 460 |
Schedule of selected information about related party loans | Year Ended December 31, (In thousands) 2019 Balance at beginning of period $ 21,047 New loans 1,128 Repayments (9,826) Balance at end of period $ 12,349 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 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 | December 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 $ — $ — $ — $ 4,676 $ — $ — $ 4,676 Collectively evaluated for impairment 12,150 4,829 1,882 7,907 1,066 276 28,110 Loans acquired with deteriorated credit quality — — — — — — — Total allowance for loan losses $ 12,150 $ 4,829 $ 1,882 $ 12,583 $ 1,066 $ 276 $ 32,786 Loans: Individually evaluated for impairment $ 5,675 $ — $ 294 $ 21,014 $ — $ — $ 26,983 Collectively evaluated for impairment 1,560,012 812,174 492,507 658,430 97,311 24,836 3,645,270 Loans acquired with deteriorated credit quality — — 343 — — — 343 Total loans $ 1,565,687 $ 812,174 $ 493,144 $ 679,444 $ 97,311 $ 24,836 $ 3,672,596 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 recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The increase in the specific reserve on impaired loans from December 31, 2018 to December 31, 2019 was primarily attributable to the restructuring of certain taxi medallion loans which had matured during 2019. All of the Bank’s taxi medallion loans have been restructured as of December 31, 2019, resulting in a shift in the reserves on the commercial and industrial loan portfolio from the general reserves to the specific reserves. The following tables represent the changes in the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017, 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. Year Ended December 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 (3,670) — — (799) — (13) (4,482) Recoveries 1 — 112 25 — 12 150 Provision (Credit) 5,027 2,263 (2,165) 635 (231) 171 5,700 Ending balance $ 12,150 $ 4,829 $ 1,882 $ 12,583 $ 1,066 $ 276 $ 32,786 Year Ended 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: Beginning balance $ 11,048 $ 4,521 $ 2,438 $ 12,838 $ 740 $ 122 $ 31,707 Charge-offs — — (24) (2,806) — (11) (2,841) Recoveries — — 3 747 — 2 752 (Credit) Provision (256) (1,955) 1,518 1,943 557 (7) 1,800 Ending balance $ 10,792 $ 2,566 $ 3,935 $ 12,722 $ 1,297 $ 106 $ 31,418 Year Ended December 31, 2017 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 $ 9,225 $ 6,264 $ 1,495 $ 7,837 $ 955 $ 128 $ 25,904 Charge-offs — — — (8,245) — (49) (8,294) Recoveries — — 28 16 — 3 47 Provision (Credit) 1,823 (1,743) 915 13,230 (215) 40 14,050 Ending balance $ 11,048 $ 4,521 $ 2,438 $ 12,838 $ 740 $ 122 $ 31,707 |
PREMISES AND EQUIPMENT, NET (Ta
PREMISES AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PREMISES AND EQUIPMENT, NET | |
Schedule of components of premises and equipment | December 31, (In thousands) 2019 2018 Land $ 7,896 $ 7,896 Building and improvements 17,271 17,227 Furniture, fixtures and equipment 25,288 23,328 Leasehold improvements 12,356 13,470 62,811 61,921 Accumulated depreciation and amortization (28,749) (26,913) Total premises and equipment, net $ 34,062 $ 35,008 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
Summary of lease costs | Year Ended (In thousands) December 31, 2019 Lease cost Operating lease cost $ 7,038 Sublease income (95) Total lease cost $ 6,943 |
Summary of supplemental cash flow and balance sheet information related to operating leases | Year Ended (Dollars in thousands) December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 7,019 Operating right-of-use assets obtained in exchange for lease liabilities $ 48,101 December 31, 2019 Weighted-average remaining lease term-operating leases 7.8 years Weighted-average discount rate-operating leases (1) 3.20 % 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 | (In thousands) December 31, 2019 2020 $ 7,011 2021 6,974 2022 6,802 2023 5,853 2024 5,595 Thereafter 20,324 Total operating lease payments $ 52,559 Less: Interest (6,582) Present value of operating lease liabilities $ 45,977 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of acquired intangible assets | December 31, 2019 2018 Gross Gross Carrying Accumulated Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Intangible assets subject to amortization: Core deposit intangibles $ 7,211 $ 5,113 $ 7,211 $ 4,326 Intangible assets not subject to amortization: Trademark 259 — 259 — Total intangible assets $ 7,470 $ 5,113 $ 7,470 $ 4,326 |
Schedule of estimated amortization expense | (In thousands) Total 2020 $ 656 2021 531 2022 413 2023 281 2024 164 Thereafter 53 Total $ 2,098 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DEPOSITS | |
Schedule of the remaining maturities of the Bank's time deposits | (In thousands) Total 2020 $ 203,834 2021 83,420 2022 11,272 2023 4,072 2024 4,977 Thereafter 402 Total $ 307,977 |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE. | |
Schedule of summary of information concerning the securities sold under agreements to repurchase | Year Ended December 31, (Dollars in thousands) 2019 2018 Average daily balance during the year $ 849 $ 1,078 Average interest rate during the year 0.05 % 0.04 % Maximum month-end balance during the year $ 1,037 $ 1,610 Weighted average interest rate at year-end 0.05 % 0.05 % |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FEDERAL HOME LOAN BANK ADVANCES. | |
Schedule of FHLB advances | Year Ended December 31, (Dollars in thousands) 2019 2018 Average daily balance during the year $ 245,283 $ 324,653 Average interest rate during the year 1.86 % 1.76 % Maximum month-end balance during the year $ 435,000 $ 520,092 Weighted average interest rate at year-end 1.82 % 2.72 % |
Schedule of contractual maturities and weighted average interest rates of FHLB advances | December 31, 2019 (Dollars in thousands) Weighted Contractual Maturity Amount Average Rate Overnight $ 195,000 1.81 % 2020 240,000 1.84 Total FHLB advances $ 435,000 1.82 % 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) | 12 Months Ended |
Dec. 31, 2019 | |
DERIVATIVES. | |
Schedule of information about the interest rate swap designated as a cash flow hedge | December 31, (Dollars in thousands) 2019 2018 Notional amounts $ 290,000 $ 240,000 Weighted average pay rates 1.84 % 1.84 % Weighted average receive rates 1.94 % 2.77 % Weighted average maturity 2.91 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 gain (loss) Amount of gain reclassified from reclassified from Amount of (loss) gain Amount of (loss) gain Accumulated OCI Accumulated OCI (In thousands) recognized in OCI recognized in OCI into income into income Interest rate contracts included component excluded component included component excluded component Year ended December 31, 2019 $ (3,601) $ — $ 1,588 $ — Year ended December 31, 2018 2,493 — 1,068 — Year ended December 31, 2017 463 — (1,419) — |
Schedule of cash flow hedge included in the Consolidated Balance Sheets | December 31, 2019 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 $ 1,233 $ (978) $ 240,000 $ 4,239 $ (4) Forward starting interest rate swaps related to FHLB advances $ 50,000 $ — $ (1,427) $ — $ — $ — |
Schedule of information about interest rate swaps | December 31, (Dollars in thousands) 2019 2018 Notional amounts $ 823,894 $ 193,401 Weighted average pay rates 3.75 % 4.52 % Weighted average receive rates 3.75 % 4.52 % Weighted average maturity 10.77 years 12.25 years Fair value of combined interest rate swaps $ — $ — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
Schedule of components of income tax expense | Year Ended December 31, (In thousands) 2019 2018 2017 Current: Federal $ 12,665 $ 5,270 $ 8,762 State 639 1,023 937 Total current 13,304 6,293 9,699 Deferred: Federal (419) 3,299 10,251 State 1,175 (451) (1,004) Total deferred 756 2,848 9,247 Total income tax expense $ 14,060 $ 9,141 $ 18,946 |
Schedule of reconciliation of the expected Federal income tax expense at the statutory tax rate to the actual provision | Year Ended December 31, 2019 2018 2017 Percentage Percentage Percentage of Pre-tax of Pre-tax of Pre-tax (Dollars in thousands) Amount Earnings Amount Earnings Amount Earnings Federal income tax expense computed by applying the statutory rate to income before income taxes $ 13,808 21 % $ 10,157 21 % $ 13,820 35 % Tax-exempt income (920) (1) (1,002) (2) (1,808) (5) State taxes, net of federal income tax benefit 1,425 2 1,999 4 725 2 Deferred tax asset remeasurement (1) — — — — 7,572 19 Other (253) (1) (2,013) (4) (1,363) (3) Income tax expense $ 14,060 21 % $ 9,141 19 % $ 18,946 48 % (1) 2017 amount includes a charge to write-down deferred tax assets due to the enactment of the Tax Act of $7.6 million. |
Schedule of components of deferred tax assets and liabilities | December 31, (In thousands) 2019 2018 Deferred tax assets: Allowance for loan losses and off-balance sheet credit exposure $ 10,305 $ 9,309 Net unrealized losses on securities 343 4,810 Compensation and related benefit obligations 2,368 2,427 Purchase accounting fair value adjustments 4,735 4,141 Net change in pension and other post-retirement benefits plans 2,809 2,630 Net operating loss carryforward 3,229 4,746 Net loss on cash flow hedges 304 — Operating lease liabilities 13,444 — Other 200 671 Total deferred tax assets 37,737 28,734 Deferred tax liabilities: Pension and SERP expense (4,904) (4,559) Depreciation (956) (1,163) REIT undistributed net income (2,403) (2,110) Net deferred loan costs and fees (2,413) (2,206) Net gain on cash flow hedges — (1,210) State and local taxes (1,227) (1,468) Operating lease right-of-use assets (12,934) — Other (835) (353) Total deferred tax liabilities (25,672) (13,069) Net deferred tax asset $ 12,065 $ 15,665 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PENSION AND OTHER POSTRETIREMENT PLANS. | |
Schedule of information about changes in obligations and plan assets of the defined benefit pension plan and the defined benefit plan component of the SERP | Pension Benefits SERP Benefits Year Ended December 31, Year Ended December 31, (In thousands) 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation at beginning of year $ 23,611 $ 24,759 $ 3,811 $ 3,919 Service cost 952 1,106 261 290 Interest cost 908 794 147 127 Benefits paid and expected expenses (475) (402) (112) (112) Assumption changes and other 3,761 (2,646) 1,216 (413) Benefit obligation at end of year $ 28,757 $ 23,611 $ 5,323 $ 3,811 Change in plan assets: Fair value of plan assets at beginning of year $ 33,874 $ 34,695 $ — $ — Actual return on plan assets 6,346 (2,079) — — Employer contribution — 1,660 112 112 Benefits paid and actual expenses (475) (402) (112) (112) Fair value of plan assets at end of year $ 39,745 $ 33,874 $ — $ — Funded status at end of year $ 10,988 $ 10,263 $ (5,323) $ (3,811) |
Schedule of amounts recognized in accumulated other comprehensive income | Pension Benefits SERP Benefits December 31, December 31, (In thousands) 2019 2018 2019 2018 Net actuarial loss $ 7,997 $ 8,631 $ 2,071 $ 925 Prior service cost (484) (561) — — Net amount recognized $ 7,513 $ 8,070 $ 2,071 $ 925 |
Schedule of net periodic benefit cost and other amounts recognized in other comprehensive income | Pension Benefits SERP Benefits Year Ended December 31, Year Ended December 31, (In thousands) 2019 2018 2017 2019 2018 2017 Components of net periodic benefit cost and other amounts recognized in other comprehensive income: Service cost $ 952 $ 1,106 $ 1,129 $ 261 $ 290 $ 212 Interest cost 908 794 750 147 127 105 Expected return on plan assets (2,445) (2,547) (2,129) — — — Amortization of net loss 494 335 479 70 121 51 Amortization of prior service credit (77) (77) (77) — — — Amortization of transition obligation — — — — 5 27 Net periodic benefit (credit) cost $ (168) $ (389) $ 152 $ 478 $ 543 $ 395 Net (gain) loss $ (140) $ 1,980 $ (409) $ 1,216 $ (413) $ 710 Amortization of net loss (494) (335) (479) (70) (121) (51) Amortization of prior service credit 77 77 77 — — — Amortization of transition obligation — — — — (5) (27) Total recognized in other comprehensive income $ (557) $ 1,722 $ (811) $ 1,146 $ (539) $ 632 |
Schedule of average assumptions used to determine benefit obligations and net periodic benefit cost | Pension Benefits SERP Benefits December 31, December 31, 2019 2018 2017 2019 2018 2017 Weighted average assumptions used to determine benefit obligations: Discount rate 3.10 % 4.14 % 3.52 % 3.08 % 4.13 % 3.50 % Rate of compensation increase 3.00 3.00 3.00 5.00 5.00 5.00 Weighted average assumptions used to determine net periodic benefit cost: Discount rate 4.14 % 3.52 % 4.05 % 4.13 % 3.50 % 4.01 % Rate of compensation increase 3.00 3.00 3.00 5.00 5.00 5.00 Expected long-term rate of return 7.25 7.25 7.25 — — — |
Schedule of target allocations for Plan assets | Weighted-Average- Target Percentage of Plan Assets Expected Long- Allocation At December 31, term Rate of Asset Category 2020 2019 2018 Return Cash equivalents 0 - 5 % 3.6 % 3.0 % — % Equity securities 45 - 65 57.9 54.8 9.5 Fixed income securities 30 - 50 38.5 42.2 5.0 Total 100.0 100.0 |
Schedule of the Plan's fair value hierarchy for its financial assets measured at fair value on a recurring basis | December 31, 2019 Fair Value Measurements Using: Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (Dollars in thousands) Value (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ — $ — $ — $ — Short term investment funds 1,444 — 1,444 — Total cash and cash equivalents 1,444 — 1,444 — Equities: U.S. large cap 12,097 12,097 — — U.S. mid cap/small cap 4,195 4,195 — — International 6,320 6,320 — — Equities blend 414 414 — — Total equities 23,026 23,026 — — Fixed income securities: Government issues 2,024 2,024 — — Corporate bonds 2,926 — 2,926 — Mortgage-backed 1,033 — 1,033 — High yield bonds and bond funds 9,292 — 9,292 — Total fixed income securities 15,275 2,024 13,251 — Total plan assets $ 39,745 $ 25,050 $ 14,695 $ — December 31, 2018 Fair Value Measurements Using: Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs (Dollars in thousands) Value (Level 1) (Level 2) (Level 3) Cash and cash equivalents: Cash $ — $ — $ — $ — Short term investment funds 1,063 — 1,063 — Total cash and cash equivalents 1,063 — 1,063 — Equities: U.S. large cap 9,173 9,173 — — U.S. mid cap/small cap 2,760 2,760 — — International 6,480 6,480 — — Equities blend 155 155 — — Total equities 18,568 18,568 — — Fixed income securities: Government issues 2,341 2,341 — — Corporate bonds 2,098 — 2,098 — Mortgage-backed 1,132 — 1,132 — High yield bonds and bond funds 8,672 — 8,672 — Total fixed income securities 14,243 2,341 11,902 — Total plan assets $ 33,874 $ 20,909 $ 12,965 $ — |
Schedule of payments, which reflect expected future service, expected to be paid | Pension and SERP Year (in thousands) 2020 $ 931 2021 1,074 2022 1,148 2023 1,291 2024 1,298 2025-2029 9,246 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of granted stock options, Black-Scholes option-pricing model assumptions | Year Ended December 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, December 31, 2019 110,660 35.71 8.7 years $ — Vested and Exercisable, December 31, 2019 15,795 36.19 8.1 years — Number of Exercise Range of Exercise Prices Options Price $35.35 63,267 $ 35.35 36.19 47,393 36.19 110,660 |
Restricted Stock Awards | |
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 78,952 31.92 Vested (90,586) 27.20 Forfeited (19,531) 30.62 Unvested, December 31, 2019 293,717 30.37 |
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 2,556 29.03 Forfeited (16,184) 23.34 Vested (2,573) 32.90 Unvested, December 31, 2019 85,342 29.59 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE. | |
Schedule of computation of EPS | Year Ended December 31, (In thousands, except per share data) 2019 2018 2017 Net income $ 51,691 $ 39,227 $ 20,539 Dividends paid on and earnings allocated to participating securities (1,096) (853) (415) Income attributable to common stock $ 50,595 $ 38,374 $ 20,124 Weighted average common shares outstanding, including participating securities 19,952 19,875 19,759 Weighted average participating securities (424) (434) (404) Weighted average common shares outstanding 19,528 19,441 19,355 Basic earnings per common share $ 2.59 $ 1.97 $ 1.04 Income attributable to common stock $ 50,595 $ 38,374 $ 20,124 Weighted average common shares outstanding 19,528 19,441 19,355 Incremental shares from assumed conversions of options and restricted stock units 31 27 24 Weighted average common and equivalent shares outstanding 19,559 19,468 19,379 Diluted earnings per common share $ 2.59 $ 1.97 $ 1.04 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS | |
Schedule of commitments outstanding | December 31, (In thousands) 2019 2018 Standby letters of credit $ 23,670 $ 26,047 Loan commitments outstanding (1) 117,044 65,796 Unused lines of credit 674,194 636,772 Total commitments outstanding $ 814,908 $ 728,615 (1) Of the $117.0 million of loan commitments outstanding at December 31, 2019, $5.9 million are fixed rate commitments and $111.1 million are variable rate commitments. Of the $65.8 million of loan commitments outstanding at December 31, 2018, $20.5 million are fixed rate commitments and $45.3 million are variable rate commitments. |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
REGULATORY CAPITAL REQUIREMENTS | |
Schedule of the Company's and Bank's actual capital amounts and ratios | December 31, 2019 Minimum Capital Minimum To Be Well Minimum Capital Adequacy Requirement with Capitalized Under Prompt Actual Capital Adequacy Requirement Capital Conservation Buffer Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Common equity tier 1 capital to risk-weighted assets: Consolidated $ 397,800 10.2 % $ 176,121 4.5 % $ 273,967 7.0 % n/a n/a Bank 474,056 12.1 176,114 4.5 273,954 7.0 $ 254,386 6.5 % Total capital to risk-weighted assets: Consolidated 510,862 13.1 313,105 8.0 410,950 10.5 n/a n/a Bank 507,118 13.0 313,091 8.0 410,932 10.5 391,363 10.0 Tier 1 capital to risk-weighted assets: Consolidated 397,800 10.2 234,828 6.0 332,674 8.5 n/a n/a Bank 474,056 12.1 234,818 6.0 332,659 8.5 313,091 8.0 Tier 1 capital to average assets: Consolidated 397,800 8.5 187,386 4.0 n/a n/a n/a n/a Bank 474,056 10.1 187,377 4.0 n/a n/a 234,222 5.0 December 31, 2018 Minimum Capital Minimum To Be Well Minimum Capital Adequacy Requirement with Capitalized Under Prompt Actual Capital Adequacy Requirement Capital Conservation Buffer Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Common equity tier 1 capital to risk-weighted assets: Consolidated $ 360,688 10.4 % $ 155,836 4.5 % $ 220,767 6.375 % n/a n/a Bank 438,963 12.7 155,831 4.5 220,761 6.375 $ 225,089 6.5 % Total capital to risk-weighted assets: Consolidated 472,382 13.6 277,041 8.0 341,973 9.875 n/a n/a Bank 470,657 13.6 277,033 8.0 341,963 9.875 346,291 10.0 Tier 1 capital to risk-weighted assets: Consolidated 360,688 10.4 207,781 6.0 272,712 7.875 n/a n/a Bank 438,963 12.7 207,775 6.0 272,704 7.875 277,033 8.0 Tier 1 capital to average assets: Consolidated 360,688 8.1 177,782 4.0 n/a n/a n/a n/a Bank 438,963 9.9 177,776 4.0 n/a n/a 222,220 5.0 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | December 31, (In thousands) 2019 2018 Assets: Cash and cash equivalents $ 3,663 $ 1,537 Other assets 174 103 Investment in the Bank 573,410 532,105 Total assets $ 577,247 $ 533,745 Liabilities and stockholders’ equity: Subordinated debentures $ 78,920 $ 78,781 Other liabilities 1,173 1,134 Total liabilities 80,093 79,915 Total stockholders’ equity 497,154 453,830 Total liabilities and stockholders’ equity $ 577,247 $ 533,745 |
Schedule of condensed statements of income | Year Ended December 31, (In thousands) 2019 2018 2017 Dividends from the Bank $ 24,500 $ 15,000 $ — Interest expense 4,539 4,539 4,588 Non-interest expense 104 135 147 Income (loss) before income taxes and equity in undistributed earnings of the Bank 19,857 10,326 (4,735) Income tax benefit (994) (1,005) (1,774) Income (loss) before equity in undistributed earnings of the Bank 20,851 11,331 (2,961) Equity in undistributed earnings of the Bank 30,840 27,896 23,500 Net income $ 51,691 $ 39,227 $ 20,539 |
Schedule of condensed statements of cash flows | Year Ended December 31, (In thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 51,691 $ 39,227 $ 20,539 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed earnings of the Bank (30,840) (27,896) (23,500) Amortization 139 140 139 (Increase) decrease in other assets (73) 108 18 Increase (decrease) in other liabilities 39 11 (398) Net cash provided by (used in) operating activities 20,956 11,590 (3,202) Cash flows from financing activities: Repayment of junior subordinated debentures — — (352) Net proceeds from issuance of common stock 1,102 1,017 951 Purchase of treasury stock (625) — — Repurchase of surrendered stock from vesting of stock plans (887) (586) (350) Cash dividends paid (18,420) (18,342) (18,238) Net cash used in financing activities (18,830) (17,911) (17,989) Net increase (decrease) in cash and cash equivalents 2,126 (6,321) (21,191) Cash and cash equivalents at beginning of year 1,537 7,858 29,049 Cash and cash equivalents at end of year $ 3,663 $ 1,537 $ 7,858 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS). | |
Schedule of other comprehensive income (loss) and related income tax effects | Year Ended December 31, (In thousands) 2019 2018 2017 Unrealized holding gains (losses) on available for sale securities $ 15,524 $ (8,429) $ (1,107) Reclassification adjustments for (gains) losses realized in income (201) 7,921 (38) Income tax effect (4,467) 160 640 Net change in unrealized gains (losses) on available for sale securities 10,856 (348) (505) Unrealized net loss arising during the period (1,076) (1,567) (302) Reclassification adjustments for amortization realized in income 487 384 480 Income tax effect 179 351 15 Net change in post-retirement obligation (410) (832) 193 Change in fair value of derivatives used for cash flow hedges (3,601) 2,493 463 Reclassification adjustments for (gains) losses realized in income (1,588) (1,068) 1,419 Income tax effect 1,514 (418) (793) Net change in unrealized (losses) gains on cash flow hedges (3,675) 1,007 1,089 Other comprehensive income (loss) $ 6,771 $ (173) $ 777 |
Schedule of accumulated other comprehensive loss balances, net of income taxes | Other December 31, Comprehensive December 31, (In thousands) 2018 Income 2019 Unrealized (losses) gains on available for sale securities $ (11,685) $ 10,856 $ (829) Unrealized losses on pension benefits (6,365) (410) (6,775) Unrealized gains (losses) on cash flow hedges 2,938 (3,675) (737) Accumulated other comprehensive (loss) income, net of income taxes $ (15,112) $ 6,771 $ (8,341) |
Schedule of reclassifications out of accumulated other comprehensive (loss) income | Year Ended December 31, Affected Line Item in the (In thousands) 2019 2018 2017 Consolidated Statements of Income Realized gains (losses) on sale of available for sale securities $ 201 $ (7,921) $ 38 Net securities gains (losses) Amortization of defined benefit pension plan and defined benefit plan component of the SERP: Prior service credit 77 77 77 Other operating expenses Transition obligation — (5) (27) Other operating expenses Actuarial losses (564) (456) (530) Other operating expenses Realized gains (losses) on cash flow hedges 1,588 1,068 (1,419) Interest expense Total reclassifications, before income tax 1,302 (7,237) (1,861) Income tax (expense) benefit (380) 2,105 762 Income tax expense Total reclassifications, net of income tax $ 922 $ (5,132) $ (1,099) |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
Schedule of Selected Consolidated Quarterly Financial Data | 2019 Quarter Ended (In thousands, except per share amounts) March 31, June 30, September 30, December 31, Interest income $ 44,515 $ 46,352 $ 46,354 $ 44,320 Interest expense 10,192 10,835 9,639 8,672 Net interest income 34,323 35,517 36,715 35,648 Provision for loan losses 600 3,500 1,000 600 Net interest income after provision for loan losses 33,723 32,017 35,715 35,048 Non-interest income 5,218 5,499 6,244 8,426 Non-interest expense 22,599 24,004 24,204 25,332 Income before income taxes 16,342 13,512 17,755 18,142 Income tax expense 3,415 2,859 3,852 3,934 Net income $ 12,927 $ 10,653 $ 13,903 $ 14,208 Basic earnings per share $ 0.65 $ 0.53 $ 0.70 $ 0.71 Diluted earnings per share $ 0.65 $ 0.53 $ 0.70 $ 0.71 2018 Quarter Ended (In thousands, except per share amounts) March 31, June 30, September 30, December 31, Interest income $ 41,364 $ 41,551 $ 42,589 $ 43,480 Interest expense 6,825 7,622 8,375 9,382 Net interest income 34,539 33,929 34,214 34,098 Provision for loan losses 800 400 200 400 Net interest income after provision for loan losses 33,739 33,529 34,014 33,698 Non-interest income (loss) 4,113 (2,578) (1) 4,918 5,115 Non-interest expense 22,598 22,507 31,004 (2) 22,071 (3) Income before income taxes 15,254 8,444 7,928 16,742 Income tax expense 3,181 1,701 1,381 2,878 Net income $ 12,073 $ 6,743 $ 6,547 $ 13,864 Basic earnings per share $ 0.61 $ 0.34 $ 0.33 $ 0.70 Diluted earnings per share $ 0.61 $ 0.34 $ 0.33 $ 0.70 (1) 2018 amount includes a pre-tax net securities loss of $7.9 million. (2) 2018 amount includes a pre-tax charge related to the fraudulent conduct of a business customer of $9.5 million. (3) 2018 amount includes a pre-tax charge of $0.8 million related to office relocation costs and a pre-tax recovery of $0.6 million related to fraud loss. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans and Allowance for Loan Losses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for loan losses | ||
Potential charge-off of loan upon principal or interest default, period one | 90 days | |
Potential charge-off of loan upon principal or interest default, period two | 120 days | |
Potential charge-off of loan upon principal or interest default, period three | 180 days | |
Balance of loans individually evaluated for impairment | $ 26,983,000 | $ 19,355,000 |
Residential real estate | ||
Allowance for loan losses | ||
Balance of loans individually evaluated for impairment | 1,000,000 | |
Non-residential real estate loans | ||
Allowance for loan losses | ||
Balance of loans individually evaluated for impairment | $ 200,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Dividends | |||
Period from which net retained earnings are available for dividend payment from the Bank to the Parent Company | 2 years | ||
Amount up to which dividends can be declared by the Bank to the Parent Company | $ 58,700 | ||
Cash dividends paid | 24,500 | ||
Income Taxes | |||
Unrecognized Tax Benefits | $ 0 | $ 0 | |
Segment Reporting | |||
Number of reportable operating segment | segment | 1 | ||
Leases | |||
Operating lease right-of-use assets | $ 43,450 | ||
Operating Lease, Liability | $ 45,977 | ||
ASU 2016-02 | Measurement Period Adjustments | |||
Leases | |||
Operating lease right-of-use assets | $ 39,000 | ||
Operating Lease, Liability | $ 39,000 | ||
Core deposit intangibles | |||
Summary Of Accounting Policies [Line Items] | |||
Intangible assets, useful life (in years) | 10 years | ||
Buildings | |||
Summary Of Accounting Policies [Line Items] | |||
Useful life | 50 years | ||
Equipment, computer hardware and software and furniture and fixtures | Minimum | |||
Summary Of Accounting Policies [Line Items] | |||
Useful life | 2 years | ||
Equipment, computer hardware and software and furniture and fixtures | Maximum | |||
Summary Of Accounting Policies [Line Items] | |||
Useful life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Standards Effective in 2019 and 2018 (Details) $ in Thousands | Jan. 01, 2020 | Jan. 01, 2019USD ($) | Dec. 31, 2019USD ($) |
Leases (Topic 842) | |||
Operating lease right-of-use assets | $ 43,450 | ||
Operating lease liabilities | $ 45,977 | ||
Lease, Practical Expedients, Package [true false] | true | ||
ASU 2016-02 | Measurement Period Adjustments | |||
Leases (Topic 842) | |||
Operating lease right-of-use assets | $ 39,000 | ||
Operating lease liabilities | $ 39,000 | ||
Forecast | ASU 2016-13 | |||
Financial Instruments - Credit Losses (Topic 326) | |||
Estimated maximum percentage increase in the current allowance for loan losses | 10 |
SECURITIES - Summary of Availab
SECURITIES - Summary of Available for Sale Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for sale: | ||
Amortized Cost | $ 639,463 | $ 697,381 |
Gross Unrealized Gains | 4,225 | 969 |
Gross Unrealized Losses | (5,397) | (17,464) |
Estimated Fair Value | 638,291 | 680,886 |
U.S. Treasury securities | ||
Available for sale: | ||
Amortized Cost | 50,833 | |
Gross Unrealized Losses | (11) | |
Estimated Fair Value | 50,822 | |
U.S. GSE securities | ||
Available for sale: | ||
Amortized Cost | 5,000 | 29,997 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (5) | (947) |
Estimated Fair Value | 4,995 | 29,050 |
State and municipal obligations | ||
Available for sale: | ||
Amortized Cost | 34,303 | 40,980 |
Gross Unrealized Gains | 704 | 105 |
Gross Unrealized Losses | (43) | (354) |
Estimated Fair Value | 34,964 | 40,731 |
U.S. GSE residential mortgage-backed securities | ||
Available for sale: | ||
Amortized Cost | 84,550 | 96,536 |
Gross Unrealized Gains | 609 | 38 |
Gross Unrealized Losses | (468) | (3,036) |
Estimated Fair Value | 84,691 | 93,538 |
U.S. GSE residential collateralized mortgage obligations | ||
Available for sale: | ||
Amortized Cost | 278,149 | 362,905 |
Gross Unrealized Gains | 1,166 | 826 |
Gross Unrealized Losses | (1,464) | (5,954) |
Estimated Fair Value | 277,851 | 357,777 |
U.S. GSE commercial mortgage-backed securities | ||
Available for sale: | ||
Amortized Cost | 13,656 | 3,536 |
Gross Unrealized Gains | 23 | 0 |
Gross Unrealized Losses | (70) | (28) |
Estimated Fair Value | 13,609 | 3,508 |
U.S. GSE commercial collateralized mortgage obligations | ||
Available for sale: | ||
Amortized Cost | 102,722 | 93,177 |
Gross Unrealized Gains | 1,723 | 0 |
Gross Unrealized Losses | (289) | (2,539) |
Estimated Fair Value | 104,156 | 90,638 |
Other asset backed securities | ||
Available for sale: | ||
Amortized Cost | 24,250 | 24,250 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (849) | (1,031) |
Estimated Fair Value | 23,401 | 23,219 |
Corporate bonds | ||
Available for sale: | ||
Amortized Cost | 46,000 | 46,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2,198) | (3,575) |
Estimated Fair Value | $ 43,802 | $ 42,425 |
SECURITIES - Summary of Held to
SECURITIES - Summary of Held to Maturity Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Held to maturity: | ||
Amortized Cost | $ 133,638 | $ 160,163 |
Gross Unrealized Gains | 1,731 | 457 |
Gross Unrealized Losses | (342) | (3,828) |
Estimated Fair Value | 135,027 | 156,792 |
State and municipal obligations | ||
Held to maturity: | ||
Amortized Cost | 41,008 | 53,540 |
Gross Unrealized Gains | 809 | 290 |
Gross Unrealized Losses | 0 | (276) |
Estimated Fair Value | 41,817 | 53,554 |
U.S. GSE residential mortgage-backed securities | ||
Held to maturity: | ||
Amortized Cost | 8,142 | 9,688 |
Gross Unrealized Gains | 5 | 0 |
Gross Unrealized Losses | (54) | (336) |
Estimated Fair Value | 8,093 | 9,352 |
U.S. GSE residential collateralized mortgage obligations | ||
Held to maturity: | ||
Amortized Cost | 39,936 | 48,244 |
Gross Unrealized Gains | 624 | 163 |
Gross Unrealized Losses | (62) | (1,130) |
Estimated Fair Value | 40,498 | 47,277 |
U.S. GSE commercial mortgage-backed securities | ||
Held to maturity: | ||
Amortized Cost | 17,215 | 19,098 |
Gross Unrealized Gains | 102 | 4 |
Gross Unrealized Losses | (82) | (620) |
Estimated Fair Value | 17,235 | 18,482 |
U.S. GSE commercial collateralized mortgage obligations | ||
Held to maturity: | ||
Amortized Cost | 27,337 | 29,593 |
Gross Unrealized Gains | 191 | 0 |
Gross Unrealized Losses | (144) | (1,466) |
Estimated Fair Value | $ 27,384 | $ 28,127 |
SECURITIES - Total Available fo
SECURITIES - Total Available for Sale and Held to Maturity Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total securities | ||
Amortized Cost | $ 773,101 | $ 857,544 |
Gross Unrealized Gains | 5,956 | 1,426 |
Gross Unrealized Losses | (5,739) | (21,292) |
Total securities | $ 773,318 | $ 837,678 |
SECURITIES - Available for Sale
SECURITIES - Available for Sale Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for sale: | ||
Less than 12 months, Estimated Fair Value | $ 175,474 | $ 99,812 |
Less than 12 months, Gross Unrealized Losses | (778) | (779) |
Greater than 12 months, Estimated Fair Value | 214,908 | 424,638 |
Greater than 12 months, Gross Unrealized Losses | (4,619) | (16,685) |
U.S. Treasury securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 50,822 | |
Less than 12 months, Gross Unrealized Losses | (11) | |
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 | 4,995 | 29,050 |
Greater than 12 months, Gross Unrealized Losses | (5) | (947) |
State and municipal obligations | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 4,982 | 6,655 |
Less than 12 months, Gross Unrealized Losses | (42) | (15) |
Greater than 12 months, Estimated Fair Value | 76 | 21,273 |
Greater than 12 months, Gross Unrealized Losses | (1) | (339) |
U.S. GSE residential mortgage-backed securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 2,935 | 0 |
Less than 12 months, Gross Unrealized Losses | (30) | 0 |
Greater than 12 months, Estimated Fair Value | 39,617 | 88,762 |
Greater than 12 months, Gross Unrealized Losses | (438) | (3,036) |
U.S. GSE residential collateralized mortgage obligations | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 81,377 | 46,452 |
Less than 12 months, Gross Unrealized Losses | (480) | (141) |
Greater than 12 months, Estimated Fair Value | 93,403 | 172,468 |
Greater than 12 months, Gross Unrealized Losses | (984) | (5,813) |
U.S. GSE commercial mortgage-backed securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 6,648 | 0 |
Less than 12 months, Gross Unrealized Losses | (70) | 0 |
Greater than 12 months, Estimated Fair Value | 0 | 3,508 |
Greater than 12 months, Gross Unrealized Losses | 0 | (28) |
U.S. GSE commercial collateralized mortgage obligations | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 28,710 | 46,705 |
Less than 12 months, Gross Unrealized Losses | (145) | (623) |
Greater than 12 months, Estimated Fair Value | 9,614 | 43,933 |
Greater than 12 months, Gross Unrealized Losses | (144) | (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 | 23,401 | 23,219 |
Greater than 12 months, Gross Unrealized Losses | (849) | (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 | 43,802 | 42,425 |
Greater than 12 months, Gross Unrealized Losses | $ (2,198) | $ (3,575) |
SECURITIES - Held to Maturity S
SECURITIES - Held to Maturity Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Held to maturity: | ||
Less than 12 months, Estimated Fair Value | $ 19,788 | $ 8,286 |
Less than 12 months, Gross Unrealized losses | (74) | (26) |
Greater than 12 months, Estimated Fair Value | 22,707 | 116,491 |
Greater than 12 months, Gross Unrealized losses | (268) | (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 | 0 | 22,142 |
Greater than 12 months, Gross Unrealized losses | 0 | (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 | 7,268 | 9,352 |
Greater than 12 months, Gross Unrealized losses | (54) | (336) |
U.S. GSE residential collateralized mortgage obligations | ||
Held to maturity: | ||
Less than 12 months, Estimated Fair Value | 6,750 | 0 |
Less than 12 months, Gross Unrealized losses | (17) | 0 |
Greater than 12 months, Estimated Fair Value | 6,105 | 40,665 |
Greater than 12 months, Gross Unrealized losses | (45) | (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 | 5,034 | 16,205 |
Greater than 12 months, Gross Unrealized losses | (82) | (620) |
U.S. GSE commercial collateralized mortgage obligations | ||
Held to maturity: | ||
Less than 12 months, Estimated Fair Value | 13,038 | 0 |
Less than 12 months, Gross Unrealized losses | (57) | 0 |
Greater than 12 months, Estimated Fair Value | 4,300 | 28,127 |
Greater than 12 months, Gross Unrealized losses | $ (87) | $ (1,466) |
SECURITIES - Available for Sa_2
SECURITIES - Available for Sale Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost, Available for sale: | ||
Within one year | $ 51,975 | |
One to five years | 43,373 | |
Five to ten years | 51,991 | |
Beyond ten years | 492,124 | |
Total | 639,463 | $ 697,381 |
Estimated Fair Value, Available for sale: | ||
Within one year | 51,965 | |
One to five years | 43,123 | |
Five to ten years | 50,652 | |
Beyond ten years | 492,551 | |
Estimated Fair Value | 638,291 | 680,886 |
U.S. Treasury securities | ||
Amortized Cost, Available for sale: | ||
Within one year | 50,833 | |
One to five years | 0 | |
Total | 50,833 | |
Estimated Fair Value, Available for sale: | ||
Within one year | 50,822 | |
One to five years | 0 | |
Estimated Fair Value | 50,822 | |
U.S. GSE securities | ||
Amortized Cost, Available for sale: | ||
Within one year | 0 | |
One to five years | 5,000 | |
Five to ten years | 0 | |
Beyond ten years | 0 | |
Total | 5,000 | 29,997 |
Estimated Fair Value, Available for sale: | ||
Within one year | 0 | |
One to five years | 4,995 | |
Five to ten years | 0 | |
Beyond ten years | 0 | |
Estimated Fair Value | 4,995 | 29,050 |
State and municipal obligations | ||
Amortized Cost, Available for sale: | ||
Within one year | 1,142 | |
One to five years | 14,620 | |
Five to ten years | 16,088 | |
Beyond ten years | 2,453 | |
Total | 34,303 | 40,980 |
Estimated Fair Value, Available for sale: | ||
Within one year | 1,143 | |
One to five years | 14,829 | |
Five to ten years | 16,540 | |
Beyond ten years | 2,452 | |
Estimated Fair Value | 34,964 | 40,731 |
U.S. GSE residential mortgage-backed securities | ||
Amortized Cost, Available for sale: | ||
Within one year | 0 | |
One to five years | 0 | |
Beyond ten years | 84,550 | |
Total | 84,550 | 96,536 |
Estimated Fair Value, Available for sale: | ||
Within one year | 0 | |
One to five years | 0 | |
Beyond ten years | 84,691 | |
Estimated Fair Value | 84,691 | 93,538 |
U.S. GSE residential collateralized mortgage obligations | ||
Amortized Cost, Available for sale: | ||
Within one year | 0 | |
One to five years | 0 | |
Five to ten years | 0 | |
Beyond ten years | 278,149 | |
Total | 278,149 | 362,905 |
Estimated Fair Value, Available for sale: | ||
Within one year | 0 | |
One to five years | 0 | |
Five to ten years | 0 | |
Beyond ten years | 277,851 | |
Estimated Fair Value | 277,851 | 357,777 |
U.S. GSE commercial mortgage-backed securities | ||
Amortized Cost, Available for sale: | ||
Within one year | 0 | |
One to five years | 8,753 | |
Five to ten years | 4,903 | |
Beyond ten years | 0 | |
Total | 13,656 | 3,536 |
Estimated Fair Value, Available for sale: | ||
Within one year | 0 | |
One to five years | 8,761 | |
Five to ten years | 4,848 | |
Beyond ten years | 0 | |
Estimated Fair Value | 13,609 | 3,508 |
U.S. GSE commercial collateralized mortgage obligations | ||
Amortized Cost, Available for sale: | ||
Within one year | 0 | |
One to five years | 0 | |
Five to ten years | 0 | |
Beyond ten years | 102,722 | |
Total | 102,722 | 93,177 |
Estimated Fair Value, Available for sale: | ||
Within one year | 0 | |
One to five years | 0 | |
Five to ten years | 0 | |
Beyond ten years | 104,156 | |
Estimated Fair Value | 104,156 | 90,638 |
Other asset backed securities | ||
Amortized Cost, Available for sale: | ||
Within one year | 0 | |
One to five years | 0 | |
Five to ten years | 0 | |
Beyond ten years | 24,250 | |
Total | 24,250 | 24,250 |
Estimated Fair Value, Available for sale: | ||
Within one year | 0 | |
One to five years | 0 | |
Five to ten years | 0 | |
Beyond ten years | 23,401 | |
Estimated Fair Value | 23,401 | 23,219 |
Corporate bonds | ||
Amortized Cost, Available for sale: | ||
Within one year | 0 | |
One to five years | 15,000 | |
Five to ten years | 31,000 | |
Beyond ten years | 0 | |
Total | 46,000 | 46,000 |
Estimated Fair Value, Available for sale: | ||
Within one year | 0 | |
One to five years | 14,538 | |
Five to ten years | 29,264 | |
Beyond ten years | 0 | |
Estimated Fair Value | $ 43,802 | $ 42,425 |
SECURITIES - Held to Maturity I
SECURITIES - Held to Maturity Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost, Held to maturity: | ||
Within one year | $ 8,827 | |
One to five years | 28,070 | |
Five to ten years | 23,752 | |
Beyond ten years | 72,989 | |
Total | 133,638 | $ 160,163 |
Estimated Fair Value, Held to maturity: | ||
Within one year | 8,838 | |
One to five years | 28,593 | |
Five to ten years | 24,063 | |
Beyond ten years | 73,533 | |
Estimated Fair Value | 135,027 | 156,792 |
State and municipal obligations | ||
Amortized Cost, Held to maturity: | ||
Within one year | 8,827 | |
One to five years | 22,902 | |
Five to ten years | 9,129 | |
Beyond ten years | 150 | |
Total | 41,008 | 53,540 |
Estimated Fair Value, Held to maturity: | ||
Within one year | 8,838 | |
One to five years | 23,382 | |
Five to ten years | 9,444 | |
Beyond ten years | 153 | |
Estimated Fair Value | 41,817 | 53,554 |
U.S. GSE residential mortgage-backed securities | ||
Amortized Cost, Held to maturity: | ||
Within one year | 0 | |
One to five years | 0 | |
Five to ten years | 5,947 | |
Beyond ten years | 2,195 | |
Total | 8,142 | 9,688 |
Estimated Fair Value, Held to maturity: | ||
Within one year | 0 | |
One to five years | 0 | |
Five to ten years | 5,919 | |
Beyond ten years | 2,174 | |
Estimated Fair Value | 8,093 | 9,352 |
U.S. GSE residential collateralized mortgage obligations | ||
Amortized Cost, Held to maturity: | ||
Within one year | 0 | |
One to five years | 0 | |
Five to ten years | 3,871 | |
Beyond ten years | 36,065 | |
Total | 39,936 | 48,244 |
Estimated Fair Value, Held to maturity: | ||
Within one year | 0 | |
One to five years | 0 | |
Five to ten years | 3,865 | |
Beyond ten years | 36,633 | |
Estimated Fair Value | 40,498 | 47,277 |
U.S. GSE commercial mortgage-backed securities | ||
Amortized Cost, Held to maturity: | ||
Within one year | 0 | |
One to five years | 4,776 | |
Five to ten years | 4,805 | |
Beyond ten years | 7,634 | |
Total | 17,215 | 19,098 |
Estimated Fair Value, Held to maturity: | ||
Within one year | 0 | |
One to five years | 4,824 | |
Five to ten years | 4,835 | |
Beyond ten years | 7,576 | |
Estimated Fair Value | 17,235 | 18,482 |
U.S. GSE commercial collateralized mortgage obligations | ||
Amortized Cost, Held to maturity: | ||
Within one year | 0 | |
One to five years | 392 | |
Five to ten years | 0 | |
Beyond ten years | 26,945 | |
Total | 27,337 | 29,593 |
Estimated Fair Value, Held to maturity: | ||
Within one year | 0 | |
One to five years | 387 | |
Five to ten years | 0 | |
Beyond ten years | 26,997 | |
Estimated Fair Value | $ 27,384 | $ 28,127 |
SECURITIES - Total Available _2
SECURITIES - Total Available for Sale and Held to Maturity Investment Securities by Contractual Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Fair Value, Total securities | |
Within One Year | $ 60,803 |
After One But Within Five Years | 71,716 |
After Five But Within Ten Years | 74,715 |
After Ten Years | 566,084 |
Total Estimated Fair Value | 773,318 |
Amortized Cost, Total securities | |
Within One Year | 60,802 |
After One But Within Five Years | 71,443 |
After Five But Within Ten | 75,743 |
After Ten Years | 565,113 |
Total Amortized Cost | $ 773,101 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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% | |||
Gross gains realized on sale of securities available for sale | $ 7,900 | |||
Proceeds from sales of securities available for sale | $ 46,478 | 230,372 | $ 52,367 | |
Gross gains realized on sale of securities available for sale | 300 | |||
Gross losses realized on sale of securities available for sale | (300) | |||
Debt and Equity Securities, Gain (Loss) | $ (7,900) | 201 | (7,921) | $ 38 |
Proceeds from calls of securities | 20,300 | 3,300 | ||
Fair value of securities pledged to secure public deposits and FHLB and FRB overnight borrowings | 402,200 | 354,300 | ||
Trading securities | $ 0 | $ 0 | ||
Threshold for disclosure percentage | 10.00% | 10.00% | ||
Amount owned in FHLB, ACBB and FRB stock | $ 32,879 | $ 24,028 |
FAIR VALUE - Summary of Assets
FAIR VALUE - Summary of Assets and Liabilities measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets measured at fair value on recurring basis | ||
Available for sale securities | $ 638,291 | $ 680,886 |
U.S. Treasury securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 50,822 | |
U.S. GSE securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 4,995 | 29,050 |
State and municipal obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 34,964 | 40,731 |
U.S. GSE residential mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 84,691 | 93,538 |
U.S. GSE residential collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 277,851 | 357,777 |
U.S. GSE commercial mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 13,609 | 3,508 |
U.S. GSE commercial collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 104,156 | 90,638 |
Other asset backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 23,401 | 23,219 |
Corporate bonds | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 43,802 | 42,425 |
Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 638,291 | 680,886 |
Financial Assets: Derivatives | 15,437 | 6,363 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 16,645 | 2,215 |
Fair Value | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 638,291 | 680,886 |
Financial Assets: Derivatives | 15,437 | 6,363 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 16,645 | 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 | 638,291 | 680,886 |
Financial Assets: Derivatives | 15,437 | 6,363 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 16,645 | 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 | 638,291 | 680,886 |
Recurring basis | Carrying Amount | U.S. Treasury securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 50,822 | |
Recurring basis | Carrying Amount | U.S. GSE securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 4,995 | 29,050 |
Recurring basis | Carrying Amount | State and municipal obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 34,964 | 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 | 84,691 | 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 | 277,851 | 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 | 13,609 | 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 | 104,156 | 90,638 |
Recurring basis | Carrying Amount | Other asset backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 23,401 | 23,219 |
Recurring basis | Carrying Amount | Corporate bonds | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 43,802 | 42,425 |
Recurring basis | Carrying Amount | Derivatives | ||
Assets measured at fair value on recurring basis | ||
Financial Assets: Derivatives | 15,437 | 6,363 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 16,645 | 2,215 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Fair Value | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 638,291 | 680,886 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Fair Value | U.S. Treasury securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 50,822 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Fair Value | U.S. GSE securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 4,995 | 29,050 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Fair Value | State and municipal obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 34,964 | 40,731 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Fair Value | U.S. GSE residential mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 84,691 | 93,538 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Fair Value | U.S. GSE residential collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 277,851 | 357,777 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Fair Value | U.S. GSE commercial mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 13,609 | 3,508 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Fair Value | U.S. GSE commercial collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 104,156 | 90,638 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Fair Value | Other asset backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 23,401 | 23,219 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Fair Value | Corporate bonds | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 43,802 | 42,425 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Fair Value | Derivatives | ||
Assets measured at fair value on recurring basis | ||
Financial Assets: Derivatives | 15,437 | 6,363 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | $ 16,645 | $ 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets measured at fair value on non-recurring basis | ||
Other real estate owned | $ 175 | |
Carrying Amount | ||
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | $ 12,643 | |
Fair Value | ||
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | 12,643 | |
Significant Unobservable Inputs (Level 3) | ||
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | 12,643 | |
Non-recurring basis | Carrying Amount | ||
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | 12,643 | |
Impaired loans | 6,981 | 2,532 |
Other real estate owned | 175 | |
Non-recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | Fair Value | ||
Assets measured at fair value on non-recurring basis | ||
Impaired loans | 0 | 0 |
Non-recurring basis | Significant Other Observable Inputs (Level 2) | Fair Value | ||
Assets measured at fair value on non-recurring basis | ||
Impaired loans | 0 | 0 |
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Fair Value | ||
Assets measured at fair value on non-recurring basis | ||
Loans held for sale | 12,643 | |
Impaired loans | $ 6,981 | 2,532 |
Other real estate owned | $ 175 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Additional provision for loan losses | $ 600 | $ 1,000 | $ 3,500 | $ 600 | $ 400 | $ 200 | $ 400 | $ 800 | $ 5,700 | $ 1,800 | $ 14,050 |
Assets measured at fair value on non-recurring basis | |||||||||||
Outstanding balance of impaired loans with an allowance recorded | 11,657 | 2,721 | 11,657 | 2,721 | 1,708 | ||||||
Valuation allowance on impaired loans | 4,676 | 189 | 4,676 | 189 | $ 1,708 | ||||||
Other Real Estate | 175 | 175 | |||||||||
Real estate owned additional provision | 0 | ||||||||||
Non-recurring basis | |||||||||||
Assets measured at fair value on non-recurring basis | |||||||||||
Outstanding balance of impaired loans with an allowance recorded | 2,700 | 2,700 | |||||||||
Valuation allowance on impaired loans | 200 | 200 | |||||||||
Carrying Amount | |||||||||||
Assets measured at fair value on non-recurring basis | |||||||||||
Loans held for sale | 12,643 | 12,643 | |||||||||
Carrying Amount | Non-recurring basis | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Carrying amount of impaired loans | 6,981 | 2,532 | 6,981 | 2,532 | |||||||
Assets measured at fair value on non-recurring basis | |||||||||||
Loans held for sale | $ 12,643 | $ 12,643 | |||||||||
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 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Cash and due from banks | $ 77,693 | $ 142,145 |
Interest-bearing deposits with banks | 39,501 | 153,223 |
Securities available for sale | 638,291 | 680,886 |
Securities held to maturity | 135,027 | 156,792 |
Accrued interest receivable | 10,908 | 11,236 |
Financial liabilities: | ||
Certificates of deposit | 307,977 | |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 77,693 | 142,145 |
Interest-bearing deposits with banks | 39,501 | 153,223 |
Securities available for sale | 638,291 | 680,886 |
Securities restricted | 32,879 | 24,028 |
Securities held to maturity | 133,638 | 160,163 |
Loans held for sale | 12,643 | |
Loans, net | 3,647,499 | 3,244,393 |
Derivatives | 15,437 | 6,363 |
Accrued interest receivable | 10,908 | 11,236 |
Financial liabilities: | ||
Certificates of deposit | 307,977 | 329,491 |
Demand and other deposits | 3,506,670 | 3,556,902 |
FHLB advances | 435,000 | 240,433 |
Repurchase agreements | 999 | 539 |
Subordinated debentures | 78,920 | 78,781 |
Derivatives | 16,645 | 2,215 |
Accrued interest payable | 1,467 | 1,524 |
Fair Value | ||
Financial assets: | ||
Cash and due from banks | 77,693 | 142,145 |
Interest-bearing deposits with banks | 39,501 | 153,223 |
Securities available for sale | 638,291 | 680,886 |
Securities held to maturity | 135,027 | 156,792 |
Loans held for sale | 12,643 | |
Loans, net | 3,685,770 | 3,216,204 |
Derivatives | 15,437 | 6,363 |
Accrued interest receivable | 10,908 | 11,236 |
Financial liabilities: | ||
Certificates of deposit | 308,660 | 326,865 |
Demand and other deposits | 3,506,670 | 3,556,902 |
FHLB advances | 434,622 | 236,209 |
Repurchase agreements | 999 | 539 |
Subordinated debentures | 81,010 | 74,400 |
Derivatives | 16,645 | 2,215 |
Accrued interest payable | 1,467 | 1,524 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and due from banks | 77,693 | 142,145 |
Interest-bearing deposits with banks | 39,501 | 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 | 3,506,670 | 3,556,902 |
FHLB advances | 195,000 | 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 | 638,291 | 680,886 |
Securities held to maturity | 135,027 | 156,792 |
Loans, net | 0 | 0 |
Derivatives | 15,437 | 6,363 |
Accrued interest receivable | 2,181 | 2,936 |
Financial liabilities: | ||
Certificates of deposit | 308,660 | 326,865 |
Demand and other deposits | 0 | 0 |
FHLB advances | 239,622 | 236,209 |
Repurchase agreements | 999 | 539 |
Subordinated debentures | 81,010 | 74,400 |
Derivatives | 16,645 | 2,215 |
Accrued interest payable | 1,467 | 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 held for sale | 12,643 | |
Loans, net | 3,685,770 | 3,216,204 |
Derivatives | 0 | 0 |
Accrued interest receivable | 8,727 | 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 | 12 Months Ended | ||||
Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)family | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2015USD ($) | |
Classifications of loans | ||||||
Total loans | $ 3,672,596 | $ 3,268,772 | ||||
Net deferred loan costs and fees | 7,689 | 7,039 | ||||
Total loans held for investment | 3,680,285 | 3,275,811 | ||||
Allowance for loan losses | (32,786) | (31,418) | $ (31,707) | $ (25,904) | ||
Loans, net | 3,647,499 | 3,244,393 | ||||
Commercial Real Estate | Mortgage loans | ||||||
Classifications of loans | ||||||
Total loans | 1,565,687 | 1,373,556 | ||||
Allowance for loan losses | (12,150) | (10,792) | (11,048) | (9,225) | ||
Loans held for investment to loans held for sale and written down | $ 16,300 | |||||
Loans held for sale | 12,600 | 12,600 | ||||
Mortgage loan, charge-off recognized | $ 3,700 | |||||
Lending Risk | ||||||
Loan amount beyond which annual financial information is sought | 1,000 | |||||
Multi-family | Mortgage loans | ||||||
Classifications of loans | ||||||
Total loans | 812,174 | 585,827 | ||||
Allowance for loan losses | $ (4,829) | (2,566) | (4,521) | (6,264) | ||
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 | $ 493,144 | 519,763 | ||||
Allowance for loan losses | (1,882) | (3,935) | (2,438) | (1,495) | ||
Commercial, industrial and agricultural loans | ||||||
Classifications of loans | ||||||
Total loans | 679,444 | 645,724 | ||||
Allowance for loan losses | (12,583) | (12,722) | (12,838) | (7,837) | ||
Real estate construction and land loans | ||||||
Classifications of loans | ||||||
Total loans | 97,311 | 123,393 | ||||
Allowance for loan losses | (1,066) | (1,297) | (740) | (955) | ||
Installment/consumer loans | ||||||
Classifications of loans | ||||||
Total loans | 24,836 | 20,509 | ||||
Allowance for loan losses | (276) | (106) | $ (122) | $ (128) | ||
CNB | ||||||
Classifications of loans | ||||||
Addition in acquired loans recorded at fair value | $ 729,400 | |||||
Fair value of loans acquired | $ 223,400 | 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 | $ 68,632 | 71,248 | ||||
Home equity | Minimum | Residential real estate mortgage loans | Mortgage loans | ||||||
Lending Risk | ||||||
Loan-to-value ratio (as a percent) | 80.00% | |||||
Carrying Amount | ||||||
Classifications of loans | ||||||
Fair value of loans acquired | $ 3,647,499 | $ 3,244,393 | ||||
Loans held for sale | $ 12,643 |
LOANS - Categorized by Class an
LOANS - Categorized by Class and Internally Assigned Risk Grades (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans by class categorized by internally assigned risk grades | ||
Total loans | $ 3,672,596 | $ 3,268,772 |
Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 3,584,290 | 3,180,905 |
Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 47,003 | 43,186 |
Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 41,303 | 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 | 1,565,687 | 1,373,556 |
Commercial Real Estate | Mortgage loans | Owner occupied | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 531,088 | 510,398 |
Commercial Real Estate | Mortgage loans | Owner occupied | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 511,444 | 480,503 |
Commercial Real Estate | Mortgage loans | Owner occupied | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 18,426 | 12,045 |
Commercial Real Estate | Mortgage loans | Owner occupied | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,218 | 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 | 1,034,599 | 863,158 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,022,208 | 858,069 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | 2,188 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 12,391 | 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 | 812,174 | 585,827 |
Multi-family | Mortgage loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 811,770 | 585,409 |
Multi-family | Mortgage loans | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 404 | 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 | 493,144 | 519,763 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 424,512 | 448,515 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 408,933 | 438,891 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 11,490 | 8,510 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 4,089 | 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 | 68,632 | 71,248 |
Residential real estate mortgage loans | Mortgage loans | Home equity | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 67,016 | 68,480 |
Residential real estate mortgage loans | Mortgage loans | Home equity | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 910 | 1,594 |
Residential real estate mortgage loans | Mortgage loans | Home equity | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 706 | 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 | 679,444 | 645,724 |
Commercial, industrial and agricultural loans | Secured | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 174,219 | 168,540 |
Commercial, industrial and agricultural loans | Secured | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 162,431 | 147,474 |
Commercial, industrial and agricultural loans | Secured | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 2,074 | 5,536 |
Commercial, industrial and agricultural loans | Secured | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 9,714 | 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 | 505,225 | 477,184 |
Commercial, industrial and agricultural loans | Unsecured | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 480,982 | 458,526 |
Commercial, industrial and agricultural loans | Unsecured | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 13,596 | 12,886 |
Commercial, industrial and agricultural loans | Unsecured | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 10,647 | 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 | 97,311 | 123,393 |
Real estate construction and land loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 95,530 | 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 | 1,781 | 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 | 24,836 | 20,509 |
Installment/consumer loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 23,976 | 20,464 |
Installment/consumer loans | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 103 | 9 |
Installment/consumer loans | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 757 | 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | $ 343 | $ 308 |
Nonaccrual Including 90 Days or More Past Due | 4,369 | 2,808 |
Total Past Due and Nonaccrual | 11,078 | 7,516 |
Current | 3,661,518 | 3,261,256 |
Total Loans | 3,672,596 | 3,268,772 |
30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 4,465 | 3,780 |
60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 1,901 | 620 |
Commercial Real Estate | Mortgage loans | ||
Past Due and Nonaccrual Loans | ||
Total Loans | 1,565,687 | 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 | 225 | 253 |
Total Past Due and Nonaccrual | 1,575 | 780 |
Current | 529,513 | 509,618 |
Total Loans | 531,088 | 510,398 |
Commercial Real Estate | Mortgage loans | Owner occupied | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 917 | 333 |
Commercial Real Estate | Mortgage loans | Owner occupied | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 433 | 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 | 512 | 885 |
Total Past Due and Nonaccrual | 610 | 885 |
Current | 1,033,989 | 862,273 |
Total Loans | 1,034,599 | 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 | 98 | 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 | 812,174 | 585,827 |
Total Loans | 812,174 | 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 | 493,144 | 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 | 2,086 | 199 |
Total Past Due and Nonaccrual | 4,532 | 1,321 |
Current | 419,980 | 447,194 |
Total Loans | 424,512 | 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 | 2,446 | 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 | 343 | 308 |
Nonaccrual Including 90 Days or More Past Due | 657 | 624 |
Total Past Due and Nonaccrual | 2,354 | 1,965 |
Current | 66,278 | 69,283 |
Total Loans | 68,632 | 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 | 607 | 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 | 747 | 0 |
Commercial, industrial and agricultural loans | ||
Past Due and Nonaccrual Loans | ||
Total Loans | 679,444 | 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 | 206 | 174 |
Total Past Due and Nonaccrual | 417 | 700 |
Current | 173,802 | 167,840 |
Total Loans | 174,219 | 168,540 |
Commercial, industrial and agricultural loans | Secured | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 24 | 330 |
Commercial, industrial and agricultural loans | Secured | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 187 | 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 | 530 | 621 |
Total Past Due and Nonaccrual | 1,313 | 1,729 |
Current | 503,912 | 475,455 |
Total Loans | 505,225 | 477,184 |
Commercial, industrial and agricultural loans | Unsecured | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 249 | 1,108 |
Commercial, industrial and agricultural loans | Unsecured | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 534 | 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 | 123 | 0 |
Total Past Due and Nonaccrual | 123 | 0 |
Current | 97,188 | 123,393 |
Total Loans | 97,311 | 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 | 154 | 136 |
Current | 24,682 | 20,373 |
Total Loans | 24,836 | 20,509 |
Installment/consumer loans | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 124 | 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 | 12 Months Ended | ||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loanproperty | Dec. 31, 2017USD ($)loan | |
Impaired loans | |||
Loans modified as TDRs | $ 21,748 | $ 9,219 | $ 14,781 |
Recorded Investment | |||
With no related allowance recorded | 15,326 | 16,634 | 20,784 |
With an allowance recorded | 11,657 | 2,721 | 1,708 |
Total impaired loans | 26,983 | 19,355 | 22,492 |
Unpaid Principal Balance | |||
With no related allowance recorded | 15,354 | 16,644 | 21,683 |
With an allowance recorded | 11,663 | 2,721 | 3,235 |
Total impaired loans | 27,017 | 19,365 | 24,918 |
Related Allocated Allowance | |||
With an allowance recorded | 4,676 | 189 | 1,708 |
Total impaired loans | 4,676 | 189 | 1,708 |
Average Recorded Investment | |||
With no related allowance recorded | 10,397 | 12,531 | 10,407 |
With an allowance recorded | 8,027 | 2,757 | 142 |
Average recorded investment in impaired loans | 18,424 | 15,288 | 10,549 |
Interest Income Recognized | |||
With no related allowance recorded | 569 | 568 | 727 |
With an allowance recorded | 309 | 91 | 174 |
Total impaired loans | $ 878 | 659 | $ 901 |
Other real estate | $ 175 | ||
Other real estate owned, number of properties | property | 1 | ||
Number of loans modified as TDRs for which there was a payment default within twelve months following the modification | loan | 2 | 1 | 2 |
Commercial Real Estate | Mortgage loans | Owner occupied | |||
Impaired loans | |||
Loans modified as TDRs | $ 8,582 | $ 0 | $ 0 |
Recorded Investment | |||
With no related allowance recorded | 3,379 | 268 | 2,073 |
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 3,379 | 268 | 2,073 |
Unpaid Principal Balance | |||
With no related allowance recorded | 3,401 | 278 | 2,073 |
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 3,401 | 278 | 2,073 |
Related Allocated Allowance | |||
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded | 1,286 | 177 | 173 |
With an allowance recorded | 0 | 0 | 0 |
Average recorded investment in impaired loans | 1,286 | 177 | 173 |
Interest Income Recognized | |||
With no related allowance recorded | 41 | 0 | 80 |
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 41 | 0 | 80 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | |||
Impaired loans | |||
Loans modified as TDRs | 0 | 926 | 7,764 |
Recorded Investment | |||
With no related allowance recorded | 2,296 | 2,816 | 9,089 |
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 2,296 | 2,816 | 9,089 |
Unpaid Principal Balance | |||
With no related allowance recorded | 2,296 | 2,816 | 9,089 |
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 2,296 | 2,816 | 9,089 |
Related Allocated Allowance | |||
With an allowance recorded | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Average Recorded Investment | |||
With no related allowance recorded | 2,149 | 1,583 | 7,001 |
With an allowance recorded | 0 | 0 | 0 |
Average recorded investment in impaired loans | 2,149 | 1,583 | 7,001 |
Interest Income Recognized | |||
With no related allowance recorded | 99 | 88 | 400 |
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 99 | 88 | 400 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | |||
Impaired loans | |||
Loans modified as TDRs | 338 | 644 | 0 |
Recorded Investment | |||
With no related allowance recorded | 0 | 0 | 0 |
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 0 | 0 | 0 |
Unpaid Principal Balance | |||
With no related allowance recorded | 0 | 0 | 0 |
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 0 | 0 | 0 |
Related Allocated Allowance | |||
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded | 0 | 0 | 0 |
With an allowance recorded | 0 | 0 | 0 |
Average recorded investment in impaired loans | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded | 0 | 0 | 0 |
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 0 | 0 | 0 |
Residential real estate mortgage loans | Mortgage loans | Home equity | |||
Impaired loans | |||
Loans modified as TDRs | 0 | 0 | 0 |
Recorded Investment | |||
With no related allowance recorded | 294 | 0 | 100 |
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 294 | 0 | 100 |
Unpaid Principal Balance | |||
With no related allowance recorded | 300 | 0 | 100 |
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 300 | 0 | 100 |
Related Allocated Allowance | |||
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded | 74 | 0 | 8 |
With an allowance recorded | 0 | 0 | 0 |
Average recorded investment in impaired loans | 74 | 0 | 8 |
Interest Income Recognized | |||
With no related allowance recorded | 0 | 0 | 0 |
With an allowance recorded | 0 | 0 | 0 |
Total impaired loans | 0 | 0 | 0 |
Commercial, industrial and agricultural loans | Secured | |||
Impaired loans | |||
Loans modified as TDRs | 6,920 | 1,994 | 6,828 |
Recorded Investment | |||
With no related allowance recorded | 494 | 8,234 | 7,368 |
With an allowance recorded | 9,612 | 2,721 | 0 |
Total impaired loans | 10,106 | 10,955 | 7,368 |
Unpaid Principal Balance | |||
With no related allowance recorded | 494 | 8,234 | 8,013 |
With an allowance recorded | 9,612 | 2,721 | 0 |
Total impaired loans | 10,106 | 10,955 | 8,013 |
Related Allocated Allowance | |||
With an allowance recorded | 3,435 | 189 | 0 |
Total impaired loans | 3,435 | 189 | 0 |
Average Recorded Investment | |||
With no related allowance recorded | 287 | 5,644 | 2,633 |
With an allowance recorded | 6,189 | 2,757 | 0 |
Average recorded investment in impaired loans | 6,476 | 8,401 | 2,633 |
Interest Income Recognized | |||
With no related allowance recorded | 18 | 196 | 211 |
With an allowance recorded | 223 | 91 | 0 |
Total impaired loans | 241 | 287 | 211 |
Commercial, industrial and agricultural loans | Unsecured | |||
Impaired loans | |||
Loans modified as TDRs | 5,908 | 5,655 | 189 |
Recorded Investment | |||
With no related allowance recorded | 8,863 | 5,316 | 2,154 |
With an allowance recorded | 2,045 | 0 | 1,708 |
Total impaired loans | 10,908 | 5,316 | 3,862 |
Unpaid Principal Balance | |||
With no related allowance recorded | 8,863 | 5,316 | 2,408 |
With an allowance recorded | 2,051 | 0 | 3,235 |
Total impaired loans | 10,914 | 5,316 | 5,643 |
Related Allocated Allowance | |||
With an allowance recorded | 1,241 | 1,708 | |
Total impaired loans | 1,241 | 1,708 | |
Average Recorded Investment | |||
With no related allowance recorded | 6,601 | 5,127 | 592 |
With an allowance recorded | 1,838 | 0 | 142 |
Average recorded investment in impaired loans | 8,439 | 5,127 | 734 |
Interest Income Recognized | |||
With no related allowance recorded | 411 | 284 | 36 |
With an allowance recorded | 86 | 0 | 174 |
Total impaired loans | 497 | 284 | $ 210 |
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 | ||
Other Impaired Performing Loans | |||
Impaired loans | |||
Loans modified as TDRs | $ 1,100 | ||
Non-recurring basis | |||
Recorded Investment | |||
With an allowance recorded | $ 2,700 | ||
Related Allocated Allowance | |||
With an allowance recorded | 200 | ||
Non-recurring basis | Carrying Amount | |||
Interest Income Recognized | |||
Other real estate | $ 175 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)loancontract | Dec. 31, 2018USD ($)loancontract | Dec. 31, 2017USD ($)loancontract | |
Troubled Debt Restructurings | |||
Modified loans | contract | 19 | 12 | 11 |
Pre-Modification Outstanding Recorded Investment | $ 21,748 | $ 9,219 | $ 14,781 |
Loans modified as TDRs | $ 21,748 | 9,219 | 14,781 |
Period of modified contractually past due loans to be considered as payment default | 30 days | ||
Charge offs relating to TDRs | $ 100 | $ 400 | $ 400 |
Number of loans modified as TDRs for which there was a payment default within twelve months following the modification | loan | 2 | 1 | 2 |
Nonaccrual TDRs loans | $ 405 | $ 133 | |
Amount of current and performing TDR loans | 26,300 | $ 16,900 | |
Post-Modification of other than TDRs, recorded investment | 82,800 | ||
Commercial Real Estate | Mortgage loans | Special Mention | |||
Troubled Debt Restructurings | |||
Loans modified as TDRs | $ 21,700 | ||
Commercial Real Estate | Mortgage loans | Owner occupied | |||
Troubled Debt Restructurings | |||
Modified loans | loan | 3 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 8,582 | $ 0 | $ 0 |
Loans modified as TDRs | 8,582 | $ 0 | $ 0 |
Commercial Real Estate | Mortgage loans | Non-owner occupied | |||
Troubled Debt Restructurings | |||
Modified loans | loan | 1 | 2 | |
Pre-Modification Outstanding Recorded Investment | 0 | $ 926 | $ 7,764 |
Loans modified as TDRs | $ 0 | $ 926 | $ 7,764 |
Residential real estate mortgage loans | Mortgage loans | Residential mortgage | |||
Troubled Debt Restructurings | |||
Modified loans | loan | 1 | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 338 | $ 644 | $ 0 |
Loans modified as TDRs | 338 | $ 644 | $ 0 |
Residential real estate mortgage loans | Mortgage loans | Home equity | |||
Troubled Debt Restructurings | |||
Modified loans | loan | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | 0 | $ 0 | $ 0 |
Loans modified as TDRs | $ 0 | $ 0 | $ 0 |
Commercial, industrial and agricultural loans | Secured | |||
Troubled Debt Restructurings | |||
Modified loans | loan | 7 | 2 | 7 |
Pre-Modification Outstanding Recorded Investment | $ 6,920 | $ 1,994 | $ 6,828 |
Loans modified as TDRs | $ 6,920 | $ 1,994 | $ 6,828 |
Commercial, industrial and agricultural loans | Unsecured | |||
Troubled Debt Restructurings | |||
Modified loans | loan | 8 | 8 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 5,908 | $ 5,655 | $ 189 |
Loans modified as TDRs | 5,908 | $ 5,655 | $ 189 |
Installment/consumer loans | |||
Troubled Debt Restructurings | |||
Modified loans | loan | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | 0 | $ 0 | $ 0 |
Loans modified as TDRs | $ 0 | 0 | $ 0 |
Taxi medallion loans | |||
Troubled Debt Restructurings | |||
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 - Summary of Activity in
LOANS - Summary of Activity in the Accretable Yield for PCI Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Activity in the accretable yield for the PCI loans: | ||
Balance at beginning of period | $ 460 | $ 2,151 |
Accretion | (515) | (1,842) |
Reclassification (to) from nonaccretable difference during the period | 129 | 151 |
Accretable discount at end of period | 74 | $ 460 |
Purchased Credit Impaired Loans Charge - off | $ 0 |
LOANS - Related Party Loans (De
LOANS - Related Party Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Selected information about related party loans | |
Balance at beginning of period | $ 21,047 |
New loans | 1,128 |
Repayments | (9,826) |
Balance at end of period | $ 12,349 |
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 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | $ 4,676 | $ 189 | ||
Collectively evaluated for impairment | 28,110 | 31,229 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 32,786 | 31,418 | $ 31,707 | $ 25,904 |
Loans: | ||||
Individually evaluated for impairment | 26,983 | 19,355 | ||
Collectively evaluated for impairment | 3,645,270 | 3,248,885 | ||
Loans acquired with deteriorated credit quality | 343 | 532 | ||
Total Loans | 3,672,596 | 3,268,772 | ||
Commercial Real Estate | Mortgage loans | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 12,150 | 10,792 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 12,150 | 10,792 | 11,048 | 9,225 |
Loans: | ||||
Individually evaluated for impairment | 5,675 | 3,084 | ||
Collectively evaluated for impairment | 1,560,012 | 1,370,472 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Loans | 1,565,687 | 1,373,556 | ||
Multi-family | Mortgage loans | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 4,829 | 2,566 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 4,829 | 2,566 | 4,521 | 6,264 |
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 812,174 | 585,827 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Loans | 812,174 | 585,827 | ||
Residential real estate mortgage loans | Mortgage loans | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,882 | 3,935 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 1,882 | 3,935 | 2,438 | 1,495 |
Loans: | ||||
Individually evaluated for impairment | 294 | 0 | ||
Collectively evaluated for impairment | 492,507 | 519,455 | ||
Loans acquired with deteriorated credit quality | 343 | 308 | ||
Total Loans | 493,144 | 519,763 | ||
Commercial, industrial and agricultural loans | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 4,676 | 189 | ||
Collectively evaluated for impairment | 7,907 | 12,533 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 12,583 | 12,722 | 12,838 | 7,837 |
Loans: | ||||
Individually evaluated for impairment | 21,014 | 16,271 | ||
Collectively evaluated for impairment | 658,430 | 629,229 | ||
Loans acquired with deteriorated credit quality | 0 | 224 | ||
Total Loans | 679,444 | 645,724 | ||
Real estate construction and land loans | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,066 | 1,297 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 1,066 | 1,297 | 740 | 955 |
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 97,311 | 123,393 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Loans | 97,311 | 123,393 | ||
Installment/consumer loans | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 276 | 106 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Allowance for Loan Losses | 276 | 106 | $ 122 | $ 128 |
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 24,836 | 20,509 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total Loans | $ 24,836 | $ 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 | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan Losses | |||||||||||
Beginning balance | $ 31,418 | $ 31,707 | $ 31,418 | $ 31,707 | $ 25,904 | ||||||
Charge-offs | (4,482) | (2,841) | (8,294) | ||||||||
Recoveries | 150 | 752 | 47 | ||||||||
Provision (Credit) | $ 600 | $ 1,000 | $ 3,500 | 600 | $ 400 | $ 200 | $ 400 | 800 | 5,700 | 1,800 | 14,050 |
Ending balance | 32,786 | 31,418 | 32,786 | 31,418 | 31,707 | ||||||
Commercial Real Estate | Mortgage loans | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning balance | 10,792 | 11,048 | 10,792 | 11,048 | 9,225 | ||||||
Charge-offs | (3,670) | 0 | 0 | ||||||||
Recoveries | 1 | 0 | 0 | ||||||||
Provision (Credit) | 5,027 | (256) | 1,823 | ||||||||
Ending balance | 12,150 | 10,792 | 12,150 | 10,792 | 11,048 | ||||||
Multi-family | Mortgage loans | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning balance | 2,566 | 4,521 | 2,566 | 4,521 | 6,264 | ||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provision (Credit) | 2,263 | (1,955) | (1,743) | ||||||||
Ending balance | 4,829 | 2,566 | 4,829 | 2,566 | 4,521 | ||||||
Residential real estate mortgage loans | Mortgage loans | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning balance | 3,935 | 2,438 | 3,935 | 2,438 | 1,495 | ||||||
Charge-offs | 0 | (24) | 0 | ||||||||
Recoveries | 112 | 3 | 28 | ||||||||
Provision (Credit) | (2,165) | 1,518 | 915 | ||||||||
Ending balance | 1,882 | 3,935 | 1,882 | 3,935 | 2,438 | ||||||
Commercial, industrial and agricultural loans | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning balance | 12,722 | 12,838 | 12,722 | 12,838 | 7,837 | ||||||
Charge-offs | (799) | (2,806) | (8,245) | ||||||||
Recoveries | 25 | 747 | 16 | ||||||||
Provision (Credit) | 635 | 1,943 | 13,230 | ||||||||
Ending balance | 12,583 | 12,722 | 12,583 | 12,722 | 12,838 | ||||||
Real estate construction and land loans | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning balance | 1,297 | 740 | 1,297 | 740 | 955 | ||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provision (Credit) | (231) | 557 | (215) | ||||||||
Ending balance | 1,066 | 1,297 | 1,066 | 1,297 | 740 | ||||||
Installment/consumer loans | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning balance | $ 106 | $ 122 | 106 | 122 | 128 | ||||||
Charge-offs | (13) | (11) | (49) | ||||||||
Recoveries | 12 | 2 | 3 | ||||||||
Provision (Credit) | 171 | (7) | 40 | ||||||||
Ending balance | $ 276 | $ 106 | $ 276 | $ 106 | $ 122 |
PREMISES AND EQUIPMENT, NET - C
PREMISES AND EQUIPMENT, NET - Components of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
PREMISES AND EQUIPMENT, NET | ||
Land | $ 7,896 | $ 7,896 |
Building and improvements | 17,271 | 17,227 |
Furniture, fixtures and equipment | 25,288 | 23,328 |
Leasehold improvements | 12,356 | 13,470 |
Premises and equipment, gross | 62,811 | 61,921 |
Accumulated depreciation and amortization | (28,749) | (26,913) |
Total premises and equipment, net | $ 34,062 | $ 35,008 |
PREMISES AND EQUIPMENT, NET - D
PREMISES AND EQUIPMENT, NET - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PREMISES AND EQUIPMENT, NET | |||
Depreciation and amortization of premises and equipment | $ 4,253 | $ 3,822 | $ 3,827 |
LEASES (Details)
LEASES (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease cost | |
Operating lease cost | $ 7,038 |
Sublease income | (95) |
Total lease cost | 6,943 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | 7,019 |
Operating right-of-use assets obtained in exchange for lease liabilities | $ 48,101 |
Weighted-average remaining lease term-operating leases | 7 years 9 months 18 days |
Weighted-average discount rate-operating leases | 3.20% |
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) $ in Thousands | Dec. 31, 2019USD ($) |
Maturities of operating lease liabilities as of December 31, 2019 | |
2020 | $ 7,011 |
2021 | 6,974 |
2022 | 6,802 |
2023 | 5,853 |
2024 | 5,595 |
Thereafter | 20,324 |
Total operating lease payments | 52,559 |
Less: Interest | (6,582) |
Present value of operating lease liabilities | $ 45,977 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill | ||
Goodwill carrying amount | $ 105,950 | $ 105,950 |
Core deposit intangibles, a trademark, and servicing assets | $ 1,300 | $ 1,200 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Acquired intangible assets: | |||
Aggregate amortization expense | $ 800 | $ 900 | $ 1,000 |
Intangible assets | |||
Carrying amount of the Company’s trademark | 259 | 259 | |
Acquired intangible assets | |||
Acquired intangible assets: | |||
Gross Carrying Amount | 7,470 | 7,470 | |
Aggregate amortization expense | 5,113 | 4,326 | |
Core deposit intangibles | |||
Acquired intangible assets: | |||
Gross Carrying Amount | 7,211 | 7,211 | |
Aggregate amortization expense | 5,113 | 4,326 | |
Trademark | |||
Acquired intangible assets: | |||
Gross Carrying Amount | 259 | 259 | |
Aggregate amortization expense | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expense for Next Five Years (Details) $ in Thousands | Dec. 31, 2019USD ($) |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
2020 | $ 656 |
2021 | 531 |
2022 | 413 |
2023 | 281 |
2024 | 164 |
Thereafter | 53 |
Total | $ 2,098 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |||
Number of reporting unit | item | 1 | ||
Amortization of Intangible Assets | $ | $ 787 | $ 917 | $ 1,047 |
DEPOSITS (Details)
DEPOSITS (Details) $ in Thousands | Dec. 31, 2019USD ($) |
DEPOSITS | |
2019 | $ 203,834 |
2020 | 83,420 |
2021 | 11,272 |
2022 | 4,072 |
2023 | 4,977 |
Thereafter | 402 |
Time Deposits, Total | $ 307,977 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Time deposits | ||
Deposits from principal officers, directors and their affiliates | $ 16.7 | $ 18.5 |
$250,000 or Greater | ||
Time deposits | ||
Deposits in excess of the FDIC limit | $ 129.6 | $ 128.5 |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities sold under agreements to repurchase | ||
Repurchase agreements | $ 999 | $ 539 |
Carrying amount of U.S. GSE residential collateralized mortgage obligations and U.S. GSE residential mortgage-backed securities | 2,100 | $ 2,400 |
First quarter of 2020 | ||
Securities sold under agreements to repurchase | ||
Repurchase agreements | $ 1,000 | |
U.S. GSE residential collateralized mortgage obligations | ||
Securities sold under agreements to repurchase | ||
Percentage of investment securities held as collateral | 17.00% | 18.00% |
U.S. GSE residential mortgage-backed securities | ||
Securities sold under agreements to repurchase | ||
Percentage of investment securities held as collateral | 83.00% | 82.00% |
SECURITIES SOLD UNDER AGREEME_4
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) - Repurchase agreements - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Securities sold under agreements to repurchase | ||
Average daily balance during the year | $ 849 | $ 1,078 |
Average interest rate during the year (as a percent) | 0.05% | 0.04% |
Maximum month-end balance during the year | $ 1,037 | $ 1,610 |
Weighted average interest rate at year-end (as a percent) | 0.05% | 0.05% |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
FEDERAL HOME LOAN BANK ADVANCES. | ||
Average daily balance during the year | $ 245,283 | $ 324,653 |
Average interest rate during the year (as a percent) | 1.86% | 1.76% |
Maximum month-end balance during the year | $ 435,000 | $ 520,092 |
Weighted average interest rate at year-end (as a percent) | 1.82% | 2.72% |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES - Contractual Maturities and Weighted Average Interest Rates of FHLB Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Contractual Maturity, Amount | ||
Overnight | $ 195,000 | |
Due within a year | 240,000 | $ 240,433 |
Total FHLB advances | $ 435,000 | $ 240,433 |
Weighted Average Rate | ||
Overnight (as a percent) | 1.81% | |
2019 | 2.72% | |
2020 | 1.84% | |
Weighted Average Rate for total FHLB advances (as a percent) | 1.82% | 2.72% |
FEDERAL HOME LOAN BANK ADVANC_5
FEDERAL HOME LOAN BANK ADVANCES - Narrative (Details) - USD ($) $ in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
FEDERAL HOME LOAN BANK ADVANCES. | ||
Advances collateralized amount | $ 1.4 | $ 1.3 |
Maximum borrowing amount from FHLB term advances | 1.5 | |
FHLB advances with contractual maturities after 2020 | $ 0 |
SUBORDINATED DEBENTURES (Detail
SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Fixed-to-floating rate subordinated debentures | $ 80,000 | $ 80,000 | ||
Subordinated debentures, net | $ 78,920 | $ 78,781 | ||
Subordinated Debentures | Callable Notes After Five Years | ||||
Debt Instrument [Line Items] | ||||
Fixed-to-floating rate subordinated debentures | $ 40,000 | $ 40,000 | ||
Debt Instrument, Term | 5 years | |||
Fixed annual interest rate | 5.25% | 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 | $ 40,000 | ||
Debt Instrument, Term | 10 years | |||
Fixed annual interest rate | 5.75% | 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) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives | ||
Notional amounts | $ 823,900 | $ 193,400 |
Interest rate swaps | Derivative designated as a cash flow hedge | ||
Derivatives | ||
Notional amounts | $ 290,000 | $ 240,000 |
Weighted average pay rates (as a percent) | 1.84% | 1.84% |
Weighted average receive rates (as a percent) | 1.94% | 2.77% |
Weighted average maturity | 2 years 10 months 28 days | 2 years 11 days |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Notional amounts | $ 823,900 | $ 193,400 | |
Derivative liability position net | 14,900 | ||
Collateral posted in net liability position | 16,300 | ||
Interest rate swaps | Derivative designated as a cash flow hedge | |||
Derivative [Line Items] | |||
Notional amounts | 290,000 | 240,000 | |
Interest income (expenses) recorded on swap transactions | 1,588 | $ 1,100 | $ (1,400) |
Interest rate swaps | Derivative designated as a cash flow hedge | Federal Home Loan Bank of New York | |||
Derivative [Line Items] | |||
Amounts of accumulated other comprehensive income (loss) reclassified to interest expense | 1,600 | ||
Interest rate swaps | Derivative designated as a cash flow hedge | Federal Home Loan Bank of New York | Forecast | |||
Derivative [Line Items] | |||
Amounts of accumulated other comprehensive income (loss) reclassified to interest expense | $ 157 |
DERIVATIVES - Net Gains (Losses
DERIVATIVES - Net Gains (Losses) Relating to the Cash Flow Derivative Instruments (Details) - Derivative designated as a cash flow hedge - Interest rate swaps - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income | |||
Interest rate contracts, Amount of (loss) gain recognized in OCI included component | $ (3,601) | $ 2,493 | $ 463 |
Interest rate contracts, Amount of gain (loss) reclassified from Accumulated OCI into income included component | 1,588 | 1,100 | (1,400) |
Interest rate contracts, Amount of gain reclassified from Accumulated OCI into income included component | 1,068 | (1,419) | |
Amount of gain reclassified from Accumulated OCI into income excluded component | $ 0 | $ 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Interest rate swaps related to FHLB advances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 240,000 | $ 240,000 |
Fair Value Asset | 1,233 | 4,239 |
Fair Value Liability | (978) | $ (4) |
Forward starting interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 50,000 | |
Fair Value Liability | $ (1,427) |
DERIVATIVES - Non-Designated He
DERIVATIVES - Non-Designated Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives | |||
Notional amounts | $ 823,900 | $ 193,400 | |
Loan Swap Fees | 7,460 | 716 | $ 1,008 |
Loan customers | |||
Derivatives | |||
Notional amounts | 411,900 | 96,700 | |
Bank counterparties | |||
Derivatives | |||
Notional amounts | 411,900 | 96,700 | |
Interest rate swaps | Non-Designated Hedges | |||
Derivatives | |||
Notional amounts | $ 823,894 | $ 193,401 | |
Weighted average pay rates (as a percent) | 3.75% | 4.52% | |
Weighted average receive rates (as a percent) | 3.75% | 4.52% | |
Weighted average maturity | 10 years 9 months 7 days | 12 years 3 months | |
Fair value of combined interest rate swaps | $ 0 | $ 0 |
INCOME TAXES - Components (Deta
INCOME TAXES - Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||
Federal | $ 12,665 | $ 5,270 | $ 8,762 | ||||||||
State | 639 | 1,023 | 937 | ||||||||
Total current | 13,304 | 6,293 | 9,699 | ||||||||
Deferred: | |||||||||||
Federal | (419) | 3,299 | 10,251 | ||||||||
State | 1,175 | (451) | (1,004) | ||||||||
Total deferred | 756 | 2,848 | 9,247 | ||||||||
Total income tax expense | $ 3,934 | $ 3,852 | $ 2,859 | $ 3,415 | $ 2,878 | $ 1,381 | $ 1,701 | $ 3,181 | $ 14,060 | $ 9,141 | $ 18,946 |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount | |||||||||||
Federal income tax expense computed by applying the statutory rate to income before income taxes | $ 13,808 | $ 10,157 | $ 13,820 | ||||||||
Tax exempt interest | (920) | (1,002) | (1,808) | ||||||||
State taxes, net of federal income tax benefit | 1,425 | 1,999 | 725 | ||||||||
Deferred tax asset remeasurement | 7,572 | ||||||||||
Other | (253) | (2,013) | (1,363) | ||||||||
Total income tax expense | $ 3,934 | $ 3,852 | $ 2,859 | $ 3,415 | $ 2,878 | $ 1,381 | $ 1,701 | $ 3,181 | $ 14,060 | $ 9,141 | $ 18,946 |
Percentage of Pre-tax Earnings | |||||||||||
Federal income tax expense computed by applying the statutory rate to income before income taxes (as a percent) | 21.00% | 21.00% | 35.00% | ||||||||
Tax exempt interest (as a percent) | (1.00%) | (2.00%) | (5.00%) | ||||||||
State taxes, net of federal income tax benefit (as a percent) | 2.00% | 4.00% | 2.00% | ||||||||
Deferred tax asset remeasurement (as a percent) | 19.00% | ||||||||||
Other (as a percent) | (1.00%) | (4.00%) | (3.00%) | ||||||||
Income tax expense (as a percent) | 21.00% | 19.00% | 48.00% |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses and off-balance sheet credit exposure | $ 10,305 | $ 9,309 |
Net unrealized losses on securities | 343 | 4,810 |
Compensation and related benefit obligations | 2,368 | 2,427 |
Purchase accounting fair value adjustments | 4,735 | 4,141 |
Net change in pension and other post-retirement benefits plans | 2,809 | 2,630 |
Net operating loss carryforward | 3,229 | 4,746 |
Net loss on cash flow hedges | 304 | |
Operating lease liabilities | 13,444 | |
Other | 200 | 671 |
Total deferred tax assets | 37,737 | 28,734 |
Deferred tax liabilities: | ||
Pension and SERP expense | (4,904) | (4,559) |
Depreciation | (956) | (1,163) |
REIT undistributed net income | (2,403) | (2,110) |
Net deferred loan costs and fees | (2,413) | (2,206) |
Net gain on cash flow hedges | (1,210) | |
State and local taxes | (1,227) | (1,468) |
Operating lease right-of-use assets | (12,934) | |
Other | (835) | (353) |
Total deferred tax liabilities | (25,672) | (13,069) |
Net deferred tax asset | $ 12,065 | $ 15,665 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax asset remeasurement | $ 7.6 | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% | |
NOL carryforward | $ 3.1 | |||
New York State Division of Taxation and Finance | CNB | ||||
Operating Loss Carryforwards [Line Items] | ||||
NOL carryforward | 26.3 | |||
New York City Division Of Taxation | CNB | ||||
Operating Loss Carryforwards [Line Items] | ||||
NOL carryforward | $ 4.4 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT PLANS - Changes in Obligations and Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 23,611 | $ 24,759 | |
Service cost | 952 | 1,106 | $ 1,129 |
Interest cost | 908 | 794 | 750 |
Benefits paid and expected expenses | (475) | (402) | |
Assumption changes and other | 3,761 | (2,646) | |
Benefit obligation at end of year | 28,757 | 23,611 | 24,759 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 33,874 | 34,695 | |
Actual return on plan assets | 6,346 | (2,079) | |
Contribution to the plan | 1,660 | ||
Benefits paid and actual expenses | (475) | (402) | |
Fair value of plan assets at end of year | 39,745 | 33,874 | 34,695 |
Funded status at end of year | 10,988 | 10,263 | |
SERP Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 3,811 | 3,919 | |
Service cost | 261 | 290 | 212 |
Interest cost | 147 | 127 | 105 |
Benefits paid and expected expenses | (112) | (112) | |
Assumption changes and other | 1,216 | (413) | |
Benefit obligation at end of year | 5,323 | 3,811 | $ 3,919 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | ||
Actual return on plan assets | 0 | 0 | |
Contribution to the plan | 112 | 112 | |
Benefits paid and actual expenses | (112) | (112) | |
Fair value of plan assets at end of year | 0 | 0 | |
Funded status at end of year | $ (5,323) | $ (3,811) |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT PLANS - Amounts Recognized in AOCI (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amounts recognized in accumulated other comprehensive income | ||
Net amount recognized | $ 6,775 | $ 6,365 |
Pension Benefits | ||
Amounts recognized in accumulated other comprehensive income | ||
Net actuarial loss | 7,997 | 8,631 |
Prior service cost | (484) | (561) |
Net amount recognized | 7,513 | 8,070 |
SERP Benefits | ||
Amounts recognized in accumulated other comprehensive income | ||
Net actuarial loss | 2,071 | 925 |
Prior service cost | 0 | 0 |
Net amount recognized | $ 2,071 | $ 925 |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT PLANS - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income | |||
Total recognized in other comprehensive income | $ 1,076 | $ 1,567 | $ 302 |
Pension Benefits | |||
Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income | |||
Service cost | 952 | 1,106 | 1,129 |
Interest cost | 908 | 794 | 750 |
Expected return on plan assets | (2,445) | (2,547) | (2,129) |
Amortization of net loss | 494 | 335 | 479 |
Amortization of prior service credit | (77) | (77) | (77) |
Amortization of transition obligation | 0 | 0 | 0 |
Net periodic benefit (credit) cost | (168) | (389) | 152 |
Net loss (gain) | (140) | 1,980 | (409) |
Amortization of net loss | (494) | (335) | (479) |
Amortization of prior service credit | 77 | 77 | 77 |
Amortization of transition obligation | 0 | 0 | 0 |
Total recognized in other comprehensive income | (557) | 1,722 | (811) |
SERP Benefits | |||
Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income | |||
Service cost | 261 | 290 | 212 |
Interest cost | 147 | 127 | 105 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net loss | 70 | 121 | 51 |
Amortization of prior service credit | 0 | 0 | 0 |
Amortization of transition obligation | 0 | 5 | 27 |
Net periodic benefit (credit) cost | 478 | 543 | 395 |
Net loss (gain) | 1,216 | (413) | 710 |
Amortization of net loss | (70) | (121) | (51) |
Amortization of prior service credit | 0 | 0 | 0 |
Amortization of transition obligation | 0 | (5) | (27) |
Total recognized in other comprehensive income | $ 1,146 | $ (539) | $ 632 |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT PLANS - Expected Long-Term Rate-of-Return (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Weighted average assumptions used to determine benefit obligations: | |||
Discount rate (as a percent) | 3.10% | 4.14% | 3.52% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
Weighted average assumptions used to determine net periodic benefit cost: | |||
Discount rate (as a percent) | 4.14% | 3.52% | 4.05% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
Expected long-term rate of return (as a percent) | 7.25% | 7.25% | 7.25% |
SERP Benefits | |||
Weighted average assumptions used to determine benefit obligations: | |||
Discount rate (as a percent) | 3.08% | 4.13% | 3.50% |
Rate of compensation increase (as a percent) | 5.00% | 5.00% | 5.00% |
Weighted average assumptions used to determine net periodic benefit cost: | |||
Discount rate (as a percent) | 4.13% | 3.50% | 4.01% |
Rate of compensation increase (as a percent) | 5.00% | 5.00% | 5.00% |
Expected long-term rate of return (as a percent) | 0.00% | 0.00% | 0.00% |
PENSION AND OTHER POSTRETIREM_7
PENSION AND OTHER POSTRETIREMENT PLANS - Target Allocations for Plan Assets (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Target allocations for Plan assets | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Cash Equivalents | ||
Target allocations for Plan assets | ||
Percentage of Plan Assets | 3.60% | 3.00% |
Weighted-Average Expected Long-term Rate of Return (as a percent) | 0.00% | |
Cash Equivalents | Minimum | ||
Target allocations for Plan assets | ||
Target Allocation 2019 (as a percent) | 0.00% | |
Cash Equivalents | Maximum | ||
Target allocations for Plan assets | ||
Target Allocation 2019 (as a percent) | 5.00% | |
Equity Securities | ||
Target allocations for Plan assets | ||
Percentage of Plan Assets | 57.90% | 54.80% |
Weighted-Average Expected Long-term Rate of Return (as a percent) | 9.50% | |
Equity Securities | Minimum | ||
Target allocations for Plan assets | ||
Target Allocation 2019 (as a percent) | 45.00% | |
Equity Securities | Maximum | ||
Target allocations for Plan assets | ||
Target Allocation 2019 (as a percent) | 65.00% | |
Fixed income securities | ||
Target allocations for Plan assets | ||
Percentage of Plan Assets | 38.50% | 42.20% |
Weighted-Average Expected Long-term Rate of Return (as a percent) | 5.00% | |
Fixed income securities | Minimum | ||
Target allocations for Plan assets | ||
Target Allocation 2019 (as a percent) | 30.00% | |
Fixed income securities | Maximum | ||
Target allocations for Plan assets | ||
Target Allocation 2019 (as a percent) | 50.00% |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT PLANS - Financial Assets Measured At Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Benefits | |||
Employee benefits | |||
Total plan assets | $ 39,745 | $ 33,874 | $ 34,695 |
Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 39,745 | 33,874 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 25,050 | 20,909 | |
Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 14,695 | 12,965 | |
Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Cash Equivalents | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 1,444 | 1,063 | |
Cash Equivalents | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Cash Equivalents | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 1,444 | 1,063 | |
Cash Equivalents | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Cash | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Cash | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Cash | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Cash | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Short term investment funds | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 1,444 | 1,063 | |
Short term investment funds | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Short term investment funds | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 1,444 | 1,063 | |
Short term investment funds | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Equity Securities | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 23,026 | 18,568 | |
Equity Securities | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 23,026 | 18,568 | |
Equity Securities | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Equity Securities | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
U.S. Large cap | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 12,097 | 9,173 | |
U.S. Large cap | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 12,097 | 9,173 | |
U.S. Large cap | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
U.S. Large cap | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
U.S. Mid cap/small cap | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 4,195 | 2,760 | |
U.S. Mid cap/small cap | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 4,195 | 2,760 | |
U.S. Mid cap/small cap | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
U.S. Mid cap/small cap | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
International | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 6,320 | 6,480 | |
International | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 6,320 | 6,480 | |
International | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
International | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Equities blend | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 414 | 155 | |
Equities blend | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 414 | 155 | |
Equities blend | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Equities blend | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Fixed income securities | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 15,275 | 14,243 | |
Fixed income securities | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 2,024 | 2,341 | |
Fixed income securities | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 13,251 | 11,902 | |
Fixed income securities | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Government issues | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 2,024 | 2,341 | |
Government issues | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 2,024 | 2,341 | |
Government issues | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Government issues | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Corporate bonds | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 2,926 | 2,098 | |
Corporate bonds | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Corporate bonds | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 2,926 | 2,098 | |
Corporate bonds | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Mortgage backed | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 1,033 | 1,132 | |
Mortgage backed | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
Mortgage backed | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 1,033 | 1,132 | |
Mortgage backed | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
High yield bonds and bond funds | Carrying Amount | Recurring basis | |||
Employee benefits | |||
Total plan assets | 9,292 | 8,672 | |
High yield bonds and bond funds | Quoted Prices In Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 0 | 0 | |
High yield bonds and bond funds | Significant Other Observable Inputs (Level 2) | Recurring basis | |||
Employee benefits | |||
Total plan assets | 9,292 | 8,672 | |
High yield bonds and bond funds | Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Employee benefits | |||
Total plan assets | $ 0 | $ 0 |
PENSION AND OTHER POSTRETIREM_9
PENSION AND OTHER POSTRETIREMENT PLANS - Estimated Future Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Estimated future pension and SERP payments | |
2020 | $ 931 |
2021 | 1,074 |
2022 | 1,148 |
2023 | 1,291 |
2024 | 1,298 |
2025-2029 | $ 9,246 |
PENSION AND OTHER POSTRETIRE_10
PENSION AND OTHER POSTRETIREMENT PLANS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | ||
Investments for long-term growth (as a percent) | 97.00% | |
Investments for near-term benefit payments (as a percent) | 3.00% | |
Cumulative historical returns for the S&P 500 index (as a percent) | 9.50% | |
Cumulative historical returns for the long term corporate bonds (as a percent) | 5.00% | |
Pension Benefits | ||
Employee benefits | ||
Accumulated benefit obligation | $ 27,400 | $ 22,300 |
Amortization from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | ||
Estimated net loss | 400 | |
Estimated prior service credit | 77 | |
SERP Benefits | ||
Employee benefits | ||
Accumulated benefit obligation | 3,600 | $ 2,700 |
Amortization from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | ||
Estimated net loss | $ 227 |
PENSION AND OTHER POSTRETIRE_11
PENSION AND OTHER POSTRETIREMENT PLANS - 401k Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PENSION AND OTHER POSTRETIREMENT PLANS. | |||
Labor and Related Expense | $ 56,244,000 | $ 50,458,000 | $ 46,560,000 |
Participants contribution | $ 19,000 | ||
Description of Defined Contribution Pension and Other Postretirement Plans | 100% of each employee's contributions up to 1% of each employee's compensation plus 50% of each employee's contributions over 1% but not in excess of 6% of each employee's compensation for a maximum contribution of 3.5% of a participating employee's compensation | ||
Minimum employee contribution percentage | 1.00% | ||
Percentage of employer matching contribution | 50.00% | ||
Threshold limit percentage of employee compensation | 6.00% | ||
Maximum percentage of annual contribution per employee | 3.50% | ||
Cash contributions by the Bank | $ 1,100,000 | 1,000,000 | 1,000,000 |
Discretionary profit sharing contribution | $ 583,000 | $ 497,000 | $ 550,000 |
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 197 | $ 91 | $ 0 |
Unrecognized compensation cost related to unvested stock options | $ 341 | ||
Cost is expected to be recognized period | 1 year 9 months 18 days | ||
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 78,952 | ||
Number of restricted stock awards unvested | 293,717 | 324,882 | |
Restricted Stock Awards | Time-vested RSAs vest | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards unvested | 282,784 | ||
Restricted Stock Awards | Performance-based RSAs vest | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards unvested | 10,933 | ||
Directors | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 1 year | ||
Deferred compensation expense | $ 570 | $ 560 | 530 |
2019 Equity Incentive Plan | Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 2,200 | $ 2,400 | $ 1,700 |
Number of restricted stock awards granted | 83,782 | 71,781 | |
Total fair value of shares vested | 2,500 | $ 1,500 | $ 1,100 |
Unrecognized compensation cost related to non-vested RSAs | $ 4,700 | ||
Cost is expected to be recognized period | 3 years | ||
2019 Equity Incentive Plan | Restricted Stock Awards | Seven year specified vesting schedule | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 31,860 | ||
Vesting period (in years) | 7 years | ||
Year in vesting schedule in which one-third of the awards vest, period two | 6 years | ||
Year in vesting schedule in which one-third of the awards vest, period three | 7 years | ||
2019 Equity Incentive Plan | Restricted Stock Awards | Five year specified vesting schedule | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 49,925 | 44,750 | 25,396 |
Vesting period (in years) | 5 years | 5 years | |
Year in vesting schedule in which one-third of the awards vest, period one | 5 years | 5 years | |
Year in vesting schedule in which one-third of the awards vest, period three | 5 years | ||
2019 Equity Incentive Plan | Restricted Stock Awards | Four year ratable vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Year in vesting schedule in which one-third of the awards vest, period two | 4 years | ||
2019 Equity Incentive Plan | Restricted Stock Awards | Three year specified vesting schedule | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 13,915 | ||
Year in vesting schedule in which one-third of the awards vest, period one | 3 years | 3 years | |
2019 Equity Incentive Plan | Restricted Stock Awards | Three year ratable vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 29,027 | 11,070 | |
Vesting period (in years) | 3 years | 2 years | 3 years |
2019 Equity Incentive Plan | Restricted Stock Awards | Two year ratable vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 25,117 | ||
2019 Equity Incentive Plan | Restricted Stock Awards | Nine months ratable vesting schedule | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 3,455 | ||
LTI Plan | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 693 | $ 462 | $ 309 |
Number of restricted stock awards granted | 22,305 | ||
Number of restricted stock awards unvested | 85,342 | 79,238 | |
Unrecognized compensation cost related to non-vested RSAs | $ 1,300 | ||
Cost is expected to be recognized period | 2 years 8 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 | 0 |
Percentage premium over the grant date stock price | 10.00% | 10.00% | |
Vesting period (in years) | 3 years | 3 years | |
Weighted-average grant-date fair value | $ 5.05 | $ 6.52 | |
Method used | Black-Scholes option-pricing model | ||
LTI Plan | NEOs | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 21,693 | ||
LTI Plan | NEOs | 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 | 12,522 | ||
Vesting period (in years) | 5 years | ||
LTI Plan | NEOs | Restricted Stock Units | Performance-based RSAs vest | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock awards granted | 9,171 | ||
Vesting period (in years) | 3 years |
STOCK BASED COMPENSATION PLAN_2
STOCK BASED COMPENSATION PLANS - Incentive Plans (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | May 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards granted and distributed (in shares) | 63,267 | |
Common Stock, Capital Shares Reserved for Future Issuance | 526,518 | |
2012 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award Number Of Remaining Shares Available For Grant | 162,738 | |
2019 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 370,000 | |
Shares available for grant | 370,000 |
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 | 12 Months Ended | |
Dec. 31, 2019 | Dec. 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) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options | ||
Outstanding, January 1, 2019 | 47,393 | |
Granted | 63,267 | |
Outstanding, December 31, 2019 | 110,660 | 47,393 |
Vested and Exercisable, December 31, 2019 | 15,795 | |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price, January 1, 2019 | $ 36.19 | |
Granted | 35.35 | |
Weighted Average Exercise Price, December 31, 2019 | 35.71 | $ 36.19 |
Vested and Exercisable, December 31, 2019 | $ 36.19 | |
Weighted Average Remaining Contractual Life, Outstanding | 8 years 8 months 12 days | |
Weighted Average Remaining Contractual Life, Vested and Exercisable | 8 years 1 month 6 days | |
Aggregate Intrinsic Value, Outstanding | $ 0 | |
Aggregate Intrinsic Value, Vested and Exercisable | $ 0 | |
Stock Option | ||
Number of Options | ||
Outstanding, January 1, 2019 | 0 | |
Outstanding, December 31, 2019 |
STOCK BASED COMPENSATION PLAN_4
STOCK BASED COMPENSATION PLANS - Exercise Prices (Details) - $ / shares | Dec. 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 Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Unvested, January 1, 2019 | 324,882 | ||
Granted | 78,952 | ||
Vested | (90,586) | ||
Forfeited | (19,531) | ||
Unvested, December 31, 2019 | 293,717 | 324,882 | |
Weighted Average Grant-Date Fair Value | |||
Unvested, January 1, 2019 | $ 29.13 | ||
Granted | 31.92 | ||
Vested | 27.20 | ||
Forfeited | 30.62 | ||
Unvested, December 31, 2019 | $ 30.37 | $ 29.13 | |
2019 Equity Incentive Plan | |||
Shares | |||
Granted | 83,782 | 71,781 |
STOCK BASED COMPENSATION PLAN_6
STOCK BASED COMPENSATION PLANS - Restricted Stock Units (Details) - LTI Plan - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Unvested, January 1, 2019 | shares | 79,238 |
Granted | shares | 22,305 |
Reinvested dividends | shares | 2,556 |
Forfeited | shares | (16,184) |
Vested | shares | (2,573) |
Unvested, December 31, 2019 | shares | 85,342 |
Weighted Average Grant-Date Fair Value | |
Unvested, January 1, 2019 | $ / shares | $ 27.36 |
Granted | $ / shares | 33.42 |
Reinvested dividends | $ / shares | 29.03 |
Forfeited | $ / shares | 23.34 |
Vested | $ / shares | 32.90 |
Unvested, December 31, 2019 | $ / shares | $ 29.59 |
STOCK BASED COMPENSATION PLAN_7
STOCK BASED COMPENSATION PLANS - Employee Stock Purchase Plan (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
May 31, 2018 | Dec. 31, 2019 | Dec. 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 | 7,888 | 3,758 | |
Expense recorded related to ESPP | $ 0 | $ 0 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EARNINGS PER SHARE. | |||||||||||
Net income | $ 14,208 | $ 13,903 | $ 10,653 | $ 12,927 | $ 13,864 | $ 6,547 | $ 6,743 | $ 12,073 | $ 51,691 | $ 39,227 | $ 20,539 |
Dividends paid on and earnings allocated to participating securities | (1,096) | (853) | (415) | ||||||||
Income attributable to common stock | $ 50,595 | $ 38,374 | $ 20,124 | ||||||||
Weighted average common shares outstanding, including participating securities | 19,952 | 19,875 | 19,759 | ||||||||
Weighted average participating securities (in shares) | (424) | (434) | (404) | ||||||||
Weighted average common shares outstanding | 19,528 | 19,441 | 19,355 | ||||||||
Basic earnings per common share (in dollars per share) | $ 0.71 | $ 0.70 | $ 0.53 | $ 0.65 | $ 0.70 | $ 0.33 | $ 0.34 | $ 0.61 | $ 2.59 | $ 1.97 | $ 1.04 |
Income attributable to common stock | $ 50,595 | $ 38,374 | $ 20,124 | ||||||||
Weighted average common shares outstanding | 19,528 | 19,441 | 19,355 | ||||||||
Incremental shares from assumed conversions of options and restricted stock units | 31 | 27 | 24 | ||||||||
Weighted average common and equivalent shares outstanding (in shares) | 19,559 | 19,468 | 19,379 | ||||||||
Diluted earnings per common share (in dollars per share) | $ 0.71 | $ 0.70 | $ 0.53 | $ 0.65 | $ 0.70 | $ 0.33 | $ 0.34 | $ 0.61 | $ 2.59 | $ 1.97 | $ 1.04 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 0 |
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) | 3,156 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS - Commitments Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments outstanding | ||
Total commitments outstanding | $ 814,908 | $ 728,615 |
Standby letters of credit | ||
Commitments outstanding | ||
Total commitments outstanding | 23,670 | 26,047 |
Loan commitments outstanding | ||
Commitments outstanding | ||
Total commitments outstanding | 117,044 | 65,796 |
Unused lines of credit | ||
Commitments outstanding | ||
Total commitments outstanding | $ 674,194 | $ 636,772 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS - Fixed Rate Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments outstanding | $ 814,908 | $ 728,615 |
Fixed rate loan commitments outstanding | 5,900 | 20,500 |
Variable rate loan commitments outstanding | 111,100 | 45,300 |
Loan commitments outstanding | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments outstanding | $ 117,044 | $ 65,796 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES AND OTHER MATTERS - Narrative (Details) - BNB Bank (Bank) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies [Line Items] | |
Required cash balance with Federal Reserve Bank of New York | $ 20.6 |
Average balance maintained | 63.3 |
Lines of credit with unaffiliated correspondent banks to provide short-term credit | 373 |
Amount available for transactions under Master Repurchase Agreement | 1,500 |
Federal Home Loan Bank Advances | |
Commitments and Contingencies [Line Items] | |
Lines of credit available on an unsecured basis | 353 |
Federal funds purchased | $ 0 |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS - Narratives (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Regulatory capital requirements | ||
Capital conversion buffer - 2016 | 0.625% | |
Increase in capital conversion buffer each year ( as a percent) | 0.625% | |
Capital conservation buffer - 2019 | 2.50% | |
Actual, Ratio (as a percent) | 7.00% | |
Actual, Ratio (as a percent) | 8.50% | |
Actual, Ratio (as a percent) | 10.50% | |
Basel III | ||
Regulatory capital requirements | ||
Additional capital conservation buffer (as a percentage) | 2.50% | |
Actual, Ratio (as a percent) | 10.20% | 10.40% |
Actual, Ratio (as a percent) | 10.20% | 10.40% |
Actual, Ratio (as a percent) | 13.10% | 13.60% |
REGULATORY CAPITAL REQUIREMEN_4
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Common equity tier 1 capital to risk weighted assets: | ||
Actual, Ratio (as a percent) | 7.00% | |
Total Capital (to risk weighted assets) | ||
Actual, Ratio (as a percent) | 10.50% | |
Tier 1 Capital (to risk weighted assets) | ||
Actual, Ratio (as a percent) | 8.50% | |
Basel III | ||
Common equity tier 1 capital to risk weighted assets: | ||
Actual, Amount | $ 397,800 | $ 360,688 |
Actual, Ratio (as a percent) | 10.20% | 10.40% |
Minimum Capital Adequacy Requirement, Amount | $ 176,121 | $ 155,836 |
Minimum Capital Adequacy Requirement, Ratio (as a percent) | 4.50% | 4.50% |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer, Amount | $ 273,967 | $ 220,767 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer (as a percent) | 7.00% | 6.375% |
Total Capital (to risk weighted assets) | ||
Actual, Amount | $ 510,862 | $ 472,382 |
Actual, Ratio (as a percent) | 13.10% | 13.60% |
Minimum Capital Adequacy Requirement, Amount | $ 313,105 | $ 277,041 |
Minimum Capital Adequacy Requirement (as a percent) | 8.00% | 8.00% |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer, Amount | $ 410,950 | $ 341,973 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer (as a percent) | 10.50% | 9.875% |
Tier 1 Capital (to risk weighted assets) | ||
Actual, Amount | $ 397,800 | $ 360,688 |
Actual, Ratio (as a percent) | 10.20% | 10.40% |
For Capital Adequacy Purposes, Amount | $ 234,828 | $ 207,781 |
For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 6.00% |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer, Amount | $ 332,674 | $ 272,712 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer (as a percent) | 8.50% | 7.875% |
Tier 1 Capital (to average assets) | ||
Actual, Amount | $ 397,800 | $ 360,688 |
Actual, Ratio (as a percent) | 8.50% | 8.10% |
For Capital Adequacy Purposes, Amount | $ 187,386 | $ 177,782 |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
BNB Bank (Bank) | Basel III | ||
Common equity tier 1 capital to risk weighted assets: | ||
Actual, Amount | $ 474,056 | $ 438,963 |
Actual, Ratio (as a percent) | 12.10% | 12.70% |
Minimum Capital Adequacy Requirement, Amount | $ 176,114 | $ 155,831 |
Minimum Capital Adequacy Requirement, Ratio (as a percent) | 4.50% | 4.50% |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer, Amount | $ 273,954 | $ 220,761 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer (as a percent) | 7.00% | 6.375% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 254,386 | $ 225,089 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 6.50% | 6.50% |
Total Capital (to risk weighted assets) | ||
Actual, Amount | $ 507,118 | $ 470,657 |
Actual, Ratio (as a percent) | 13.00% | 13.60% |
Minimum Capital Adequacy Requirement, Amount | $ 313,091 | $ 277,033 |
Minimum Capital Adequacy Requirement (as a percent) | 8.00% | 8.00% |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer, Amount | $ 410,932 | $ 341,963 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer (as a percent) | 10.50% | 9.875% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 391,363 | $ 346,291 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (as a percent) | 10.00% | 10.00% |
Tier 1 Capital (to risk weighted assets) | ||
Actual, Amount | $ 474,056 | $ 438,963 |
Actual, Ratio (as a percent) | 12.10% | 12.70% |
For Capital Adequacy Purposes, Amount | $ 234,818 | $ 207,775 |
For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 6.00% |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer, Amount | $ 332,659 | $ 272,704 |
Minimum Capital Adequacy Requirement with Capital Conservation Buffer (as a percent) | 8.50% | 7.875% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 313,091 | $ 277,033 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 8.00% | 8.00% |
Tier 1 Capital (to average assets) | ||
Actual, Amount | $ 474,056 | $ 438,963 |
Actual, Ratio (as a percent) | 10.10% | 9.90% |
For Capital Adequacy Purposes, Amount | $ 187,377 | $ 177,776 |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 234,222 | $ 222,220 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 5.00% | 5.00% |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||||
Cash and cash equivalents | $ 117,194 | $ 295,368 | $ 94,747 | $ 113,838 |
Other assets | 38,399 | 39,188 | ||
Total assets | 4,921,520 | 4,700,744 | ||
Liabilities and stockholders' equity: | ||||
Subordinated debentures, net | 78,920 | 78,781 | ||
Total liabilities | 4,424,366 | 4,246,914 | ||
Total stockholders' equity | 497,154 | 453,830 | 429,200 | 407,987 |
Total liabilities and stockholders' equity | 4,921,520 | 4,700,744 | ||
Parent Company | ||||
Assets: | ||||
Cash and cash equivalents | 3,663 | 1,537 | $ 7,858 | $ 29,049 |
Other assets | 174 | 103 | ||
Investment in the Bank | 573,410 | 532,105 | ||
Total assets | 577,247 | 533,745 | ||
Liabilities and stockholders' equity: | ||||
Subordinated debentures, net | 78,920 | 78,781 | ||
Other liabilities | 1,173 | 1,134 | ||
Total liabilities | 80,093 | 79,915 | ||
Total stockholders' equity | 497,154 | 453,830 | ||
Total liabilities and stockholders' equity | $ 577,247 | $ 533,745 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed financial information | |||||||||||
Interest expense | $ 8,672 | $ 9,639 | $ 10,835 | $ 10,192 | $ 9,382 | $ 8,375 | $ 7,622 | $ 6,825 | $ 39,338 | $ 32,204 | $ 22,689 |
Non-interest expense | 25,332 | 24,204 | 24,004 | 22,599 | 22,071 | 31,004 | 22,507 | 22,598 | 96,139 | 98,180 | 91,727 |
Income tax benefit | 3,934 | 3,852 | 2,859 | 3,415 | 2,878 | 1,381 | 1,701 | 3,181 | 14,060 | 9,141 | 18,946 |
Net income | $ 14,208 | $ 13,903 | $ 10,653 | $ 12,927 | $ 13,864 | $ 6,547 | $ 6,743 | $ 12,073 | 51,691 | 39,227 | 20,539 |
Parent Company | |||||||||||
Condensed financial information | |||||||||||
Dividends from the Bank | 24,500 | 15,000 | 0 | ||||||||
Interest expense | 4,539 | 4,539 | 4,588 | ||||||||
Non-interest expense | 104 | 135 | 147 | ||||||||
Income (loss) before income taxes and equity in undistributed earnings of the Bank | 19,857 | 10,326 | (4,735) | ||||||||
Income tax benefit | (994) | (1,005) | (1,774) | ||||||||
Income (loss) before equity in undistributed earnings of the Bank | 20,851 | 11,331 | (2,961) | ||||||||
Equity in undistributed earnings of the Bank | 30,840 | 27,896 | 23,500 | ||||||||
Net income | $ 51,691 | $ 39,227 | $ 20,539 |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 51,691 | $ 39,227 | $ 20,539 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
(Increase) decrease in other assets | 3,942 | (2,373) | 5,426 |
Increase (decrease) in other liabilities | (1,509) | 3,430 | 4,194 |
Net cash provided by operating activities | 69,962 | 58,383 | 46,826 |
Cash flows from investing activities: | |||
Net cash used in investing activities | (352,606) | (80,549) | (411,784) |
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | 1,102 | 1,017 | 951 |
Purchase of treasury stock | (625) | ||
Repurchase of surrendered stock from vesting of stock plans | (887) | (586) | (350) |
Cash dividends paid | (18,420) | (18,342) | (18,238) |
Net cash used in financing activities | 104,470 | 222,787 | 345,867 |
Net (decrease) increase in cash and cash equivalents | (178,174) | 200,621 | (19,091) |
Cash and cash equivalents at beginning of period | 295,368 | 94,747 | 113,838 |
Cash and cash equivalents at end of period | 117,194 | 295,368 | 94,747 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 51,691 | 39,227 | 20,539 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in undistributed earnings of the Bank | (30,840) | (27,896) | (23,500) |
Amortization | 139 | 140 | 139 |
(Increase) decrease in other assets | (73) | 108 | 18 |
Increase (decrease) in other liabilities | 39 | 11 | (398) |
Net cash provided by operating activities | 20,956 | 11,590 | (3,202) |
Cash flows from financing activities: | |||
Repayment of junior subordinated debentures | 0 | 0 | (352) |
Net proceeds from issuance of common stock | 1,102 | 1,017 | 951 |
Purchase of treasury stock | (625) | ||
Repurchase of surrendered stock from vesting of stock plans | (887) | (586) | (350) |
Cash dividends paid | (18,420) | (18,342) | (18,238) |
Net cash used in financing activities | (18,830) | (17,911) | (17,989) |
Net (decrease) increase in cash and cash equivalents | 2,126 | (6,321) | (21,191) |
Cash and cash equivalents at beginning of period | 1,537 | 7,858 | 29,049 |
Cash and cash equivalents at end of period | $ 3,663 | $ 1,537 | $ 7,858 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Components and Related Income Tax Effects (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS). | |||
Unrealized holding gains (losses) on available for sale securities | $ 15,524 | $ (8,429) | $ (1,107) |
Reclassification adjustments for (gains) losses realized in income | (201) | 7,921 | (38) |
Income tax effect | (4,467) | 160 | 640 |
Net change in unrealized gains (losses) on available for sale securities | 10,856 | (348) | (505) |
Unrealized net loss arising during the period | 1,076 | 1,567 | 302 |
Reclassification adjustments for amortization realized in income | 487 | 384 | 480 |
Income tax effect | 179 | 351 | 15 |
Net change in post-retirement obligation | (410) | (832) | 193 |
Change in fair value of derivatives used for cash flow hedges | (3,601) | 2,493 | 463 |
Reclassification adjustments for (gains) losses realized in income | (1,588) | (1,068) | 1,419 |
Income tax effect | 1,514 | (418) | (793) |
Net change in unrealized (losses) gains on cash flow hedges | (3,675) | 1,007 | 1,089 |
Other comprehensive income (loss) | $ 6,771 | $ (173) | $ 777 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Summary of the Accumulated Other Comprehensive Loss Balances, Net of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrealized (losses) gains on available for sale securities | |||
Balance at the beginning of the period | $ (11,685) | ||
Current Period Change | 10,856 | $ (348) | $ (505) |
Balance at the end of the period | 829 | (11,685) | |
Unrealized losses on pension benefits | |||
Balance at the beginning of the period | (6,365) | ||
Current Period Change | (410) | (832) | 193 |
Balance at the end of the period | (6,775) | (6,365) | |
Unrealized gains (losses) on cash flow hedges | |||
Balance at the beginning of the period | 2,938 | ||
Current Period Change | (3,675) | 1,007 | 1,089 |
Balance at the end of the period | (737) | 2,938 | |
Accumulated other comprehensive (loss) income, net of income taxes | |||
Balance at the beginning of the period | (15,112) | ||
Current Period Change | 6,771 | (173) | $ 777 |
Balance at the end of the period | $ (8,341) | $ (15,112) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amounts Reclassified from AOCI | |||||||||||
Interest expense | $ 8,672 | $ 9,639 | $ 10,835 | $ 10,192 | $ 9,382 | $ 8,375 | $ 7,622 | $ 6,825 | $ 39,338 | $ 32,204 | $ 22,689 |
Income tax (expense) benefit | (3,934) | (3,852) | (2,859) | (3,415) | (2,878) | (1,381) | (1,701) | (3,181) | (14,060) | (9,141) | (18,946) |
Net income | $ 14,208 | $ 13,903 | $ 10,653 | $ 12,927 | $ 13,864 | $ 6,547 | $ 6,743 | $ 12,073 | 51,691 | 39,227 | 20,539 |
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Total reclassifications, before income tax | 1,302 | (7,237) | (1,861) | ||||||||
Net income | 922 | (5,132) | (1,099) | ||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | Interest expense. | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Income tax (expense) benefit | (380) | 2,105 | 762 | ||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | Realized gains (losses) on sale of available for sale securities | Net securities gains (losses) | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Net securities gains (losses) | 201 | (7,921) | 38 | ||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | Prior service credit | Other operating expense | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Other operating expenses | 77 | 77 | 77 | ||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | Transition obligation | Other operating expense | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Other operating expenses | (5) | (27) | |||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | Actuarial losses | Other operating expense | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Other operating expenses | (564) | (456) | (530) | ||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | Realized gains (losses) on cash flow hedges | Interest expense. | |||||||||||
Amounts Reclassified from AOCI | |||||||||||
Net securities gains (losses) | $ 1,588 | $ 1,068 | $ (1,419) |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||
Interest income | $ 44,320 | $ 46,354 | $ 46,352 | $ 44,515 | $ 43,480 | $ 42,589 | $ 41,551 | $ 41,364 | $ 181,541 | $ 168,984 | $ 149,849 |
Interest expense | 8,672 | 9,639 | 10,835 | 10,192 | 9,382 | 8,375 | 7,622 | 6,825 | 39,338 | 32,204 | 22,689 |
Net interest income | 35,648 | 36,715 | 35,517 | 34,323 | 34,098 | 34,214 | 33,929 | 34,539 | 142,203 | 136,780 | 127,160 |
Provision for loan losses | 600 | 1,000 | 3,500 | 600 | 400 | 200 | 400 | 800 | 5,700 | 1,800 | 14,050 |
Net interest income after provision for loan losses | 35,048 | 35,715 | 32,017 | 33,723 | 33,698 | 34,014 | 33,529 | 33,739 | 136,503 | 134,980 | 113,110 |
Non-interest income (loss) | 8,426 | 6,244 | 5,499 | 5,218 | 5,115 | 4,918 | (2,578) | 4,113 | 25,387 | 11,568 | 18,102 |
Non-interest expense | 25,332 | 24,204 | 24,004 | 22,599 | 22,071 | 31,004 | 22,507 | 22,598 | 96,139 | 98,180 | 91,727 |
Income before income taxes | 18,142 | 17,755 | 13,512 | 16,342 | 16,742 | 7,928 | 8,444 | 15,254 | 65,751 | 48,368 | 39,485 |
Income tax expense | 3,934 | 3,852 | 2,859 | 3,415 | 2,878 | 1,381 | 1,701 | 3,181 | 14,060 | 9,141 | 18,946 |
Net income | $ 14,208 | $ 13,903 | $ 10,653 | $ 12,927 | $ 13,864 | $ 6,547 | $ 6,743 | $ 12,073 | $ 51,691 | $ 39,227 | $ 20,539 |
Basic earnings per share (in dollars per share) | $ 0.71 | $ 0.70 | $ 0.53 | $ 0.65 | $ 0.70 | $ 0.33 | $ 0.34 | $ 0.61 | $ 2.59 | $ 1.97 | $ 1.04 |
Diluted earnings per share (in dollars per share) | $ 0.71 | $ 0.70 | $ 0.53 | $ 0.65 | $ 0.70 | $ 0.33 | $ 0.34 | $ 0.61 | $ 2.59 | $ 1.97 | $ 1.04 |
QUARTERLY FINANCIAL DATA (UNA_4
QUARTERLY FINANCIAL DATA (UNAUDITED) - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||
Securities gross losses realized | $ (7,900) | $ 201 | $ (7,921) | $ 38 | ||
Fraudulent conduct of a business customer | $ 9,500 | 8,900 | ||||
Office Relocation Costs | $ 800 | $ 750 | ||||
Pre-tax recovery related to fraud loss | $ 600 |
NET FRAUD LOSS (Details)
NET FRAUD LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2018 | |
NET FRAUD LOSS | ||
Net fraud loss | $ 9,500 | $ 8,900 |