Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
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 Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 19,732,881 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 61,352 | $ 77,693 |
Interest-bearing deposits with banks | 172,830 | 39,501 |
Total cash and cash equivalents | 234,182 | 117,194 |
Securities available for sale, at fair value | 553,278 | 638,291 |
Securities held to maturity (fair value of $127,653 and $135,027, respectively) | 124,231 | 133,638 |
Total securities | 677,509 | 771,929 |
Securities, restricted | 26,354 | 32,879 |
Loans held for sale | 12,643 | 12,643 |
Loans held for investment | 3,762,130 | 3,680,285 |
Allowance for credit losses | (39,215) | (32,786) |
Loans, net | 3,722,915 | 3,647,499 |
Premises and equipment, net | 34,521 | 34,062 |
Operating lease right-of-use assets | 41,939 | 43,450 |
Accrued interest receivable | 11,070 | 10,908 |
Goodwill | 105,950 | 105,950 |
Other intangible assets | 3,472 | 3,677 |
Prepaid pension | 11,243 | 10,988 |
Bank owned life insurance | 92,490 | 91,942 |
Other assets | 86,584 | 38,399 |
Total assets | 5,060,872 | 4,921,520 |
Liabilities | ||
Demand deposits | 1,481,552 | 1,518,958 |
Savings, NOW and money market deposits | 2,264,106 | 1,987,712 |
Certificates of deposit of $100,000 or more | 215,686 | 214,093 |
Other time deposits | 94,391 | 93,884 |
Total deposits | 4,055,735 | 3,814,647 |
Repurchase agreements | 1,195 | 999 |
Federal Home Loan Bank ("FHLB") advances | 290,000 | 435,000 |
Subordinated debentures, net | 78,955 | 78,920 |
Operating lease liabilities | 44,571 | 45,977 |
Other liabilities and accrued expenses | 97,163 | 48,823 |
Total liabilities | 4,567,619 | 4,424,366 |
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; 19,907,217 and 19,898,022 shares issued, respectively; and 19,722,299 and 19,836,797 shares outstanding, respectively) | 199 | 199 |
Surplus | 355,014 | 356,436 |
Retained earnings | 153,766 | 150,703 |
Treasury stock at cost, 184,918 and 61,225 shares, respectively | (4,800) | (1,843) |
Total stockholders' equity before accumulated other comprehensive income (loss) | 504,179 | 505,495 |
Accumulated other comprehensive loss, net of income taxes | (10,926) | (8,341) |
Total stockholders' equity | 493,253 | 497,154 |
Total liabilities and stockholders' equity | $ 5,060,872 | $ 4,921,520 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets (unaudited) | ||
Securities held to maturity, fair value (in dollars) | $ 127,653 | $ 135,027 |
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 | 19,907,217 | 19,898,022 |
Common stock, shares outstanding | 19,722,299 | 19,836,797 |
Treasury Stock, shares | 184,918 | 61,225 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income: | ||
Loans (including fee income) | $ 39,763 | $ 37,612 |
Mortgage-backed securities, CMOs and other asset-backed securities | 3,040 | 4,789 |
U.S. GSE securities | 337 | 192 |
State and municipal obligations | 513 | 627 |
Corporate bonds | 300 | 336 |
Deposits with banks | 267 | 544 |
Other interest and dividend income | 382 | 415 |
Total interest income | 44,602 | 44,515 |
Interest expense: | ||
Savings, NOW and money market deposits | 4,255 | 6,369 |
Certificates of deposit of $100,000 or more | 1,036 | 983 |
Other time deposits | 415 | 562 |
Federal funds purchased and repurchase agreements | 78 | 45 |
FHLB advances | 1,033 | 1,098 |
Subordinated debentures | 1,135 | 1,135 |
Total interest expense | 7,952 | 10,192 |
Net interest income | 36,650 | 34,323 |
Provision for credit losses | 5,000 | 600 |
Net interest income after provision for credit losses | 31,650 | 33,723 |
Non-interest income: | ||
Service charges and other fees | 2,500 | 2,428 |
Net securities losses | (15) | |
Title fees | 329 | 306 |
Gain on sale of Small Business Administration ("SBA") loans | 371 | 217 |
Bank owned life insurance | 548 | 553 |
Loan swap fees | 1,231 | 1,115 |
Other | 253 | 599 |
Total non-interest income | 5,217 | 5,218 |
Non-interest expense: | ||
Salaries and employee benefits | 15,549 | 13,280 |
Occupancy and equipment | 3,499 | 3,531 |
Technology and communications | 2,217 | 1,789 |
Marketing and advertising | 823 | 1,023 |
Professional services | 956 | 757 |
FDIC assessments | 1 | 238 |
Amortization of other intangible assets | 181 | 213 |
Other | 1,617 | 1,768 |
Total non-interest expense | 24,843 | 22,599 |
Income before income taxes | 12,024 | 16,342 |
Income tax expense | 2,676 | 3,415 |
Net income | $ 9,348 | $ 12,927 |
Basic earnings per share (in dollars per share) | $ 0.47 | $ 0.65 |
Diluted earnings per share (in dollars per share) | $ 0.47 | $ 0.65 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements of Comprehensive Income (unaudited) | ||
Net income | $ 9,348 | $ 12,927 |
Other comprehensive (loss) income: | ||
Change in unrealized net gains on securities available for sale, net of reclassifications and deferred income taxes | 4,124 | 3,918 |
Adjustment to pension liability, net of reclassifications and deferred income taxes | 98 | 90 |
Unrealized losses on cash flow hedges, net of reclassifications and deferred income taxes | (6,807) | (1,525) |
Total other comprehensive (loss) income | (2,585) | 2,483 |
Comprehensive income | $ 6,763 | $ 15,410 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2018 | $ 198 | $ 352,093 | $ 117,432 | $ (781) | $ (15,112) | $ 453,830 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 12,927 | 12,927 | ||||
Shares issued under the dividend reinvestment plan | 198 | 198 | ||||
Stock awards granted and distributed | 1 | (791) | 790 | |||
Repurchase of surrendered stock from vesting of stock plans | 795 | 795 | ||||
Share based compensation expense | 954 | 954 | ||||
Cash dividend declared | (4,594) | (4,594) | ||||
Other comprehensive income (loss), net of deferred income taxes | 2,483 | 2,483 | ||||
Balance at Mar. 31, 2019 | 199 | 352,454 | 125,765 | (786) | (12,629) | 465,003 |
Increase (Decrease) in Stockholders' Equity | ||||||
Cumulative change in accounting principle (Note 1) | (1,473) | (1,473) | ||||
Balance at January 1, 2020 (as adjusted for change in accounting principle) | 199 | 356,436 | 149,230 | (1,843) | (8,341) | 495,681 |
Balance at Dec. 31, 2019 | 199 | 356,436 | 150,703 | (1,843) | (8,341) | 497,154 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 9,348 | 9,348 | ||||
Shares issued under the dividend reinvestment plan | 240 | 240 | ||||
Purchase of treasury stock | (4,633) | (4,633) | ||||
Stock awards granted and distributed | (2,668) | 2,668 | ||||
Stock awards forfeited | 20 | (20) | ||||
Repurchase of surrendered stock from vesting of stock plans | 36 | 972 | 1,008 | |||
Share based compensation expense | 1,022 | 1,022 | ||||
Cash dividend declared | (4,812) | (4,812) | ||||
Other comprehensive income (loss), net of deferred income taxes | (2,585) | (2,585) | ||||
Balance at Mar. 31, 2020 | $ 199 | $ 355,014 | $ 153,766 | $ (4,800) | $ (10,926) | $ 493,253 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (unaudited) (Parentheticals) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements of Stockholders' Equity (unaudited) | ||
Shares issued under the dividend reinvestment plan (in shares) | 6,275 | (5,864) |
Purchase of treasury stock (in shares) | 179,620 | |
Stock awards granted and distributed (in shares) | 90,657 | (76,274) |
Stock awards forfeited (in shares) | 585 | |
Repurchase of surrendered stock from vesting of stock plans | 31,225 | (24,132) |
Cash dividend declared (in dollars per share) | $ 0.24 | $ 0.23 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 9,348 | $ 12,927 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 5,000 | 600 |
Depreciation and amortization of premises and equipment | 1,003 | 1,048 |
Net (accretion) and other amortization | (218) | (287) |
Net amortization on securities | 654 | 648 |
Increase in cash surrender value of bank owned life insurance | (548) | (553) |
Amortization of other intangible assets | 181 | 213 |
Share based compensation expense | 1,022 | 954 |
Net securities losses | 15 | |
Increase in accrued interest receivable | (162) | (1,821) |
SBA loans originated for sale | (5,888) | (3,188) |
Proceeds from sale of the guaranteed portion of SBA loans | 6,345 | 3,454 |
Gain on sale of the guaranteed portion of SBA loans | (371) | (217) |
(Increase) decrease in other assets | (3,979) | 4,006 |
Decrease in accrued expenses and other liabilities | (4,137) | (5,619) |
Net cash provided by operating activities | 8,265 | 12,165 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (91,098) | (40,771) |
Purchases of securities, restricted | (14,130) | (14,850) |
Proceeds from sales of securities available for sale | 74,558 | 0 |
Redemption of securities, restricted | 20,655 | 10,810 |
Maturities, calls and principal payments of securities available for sale | 106,840 | 19,270 |
Maturities, calls and principal payments of securities held to maturity | 9,280 | 10,470 |
Net increase in loans | (81,992) | (115,341) |
Purchase of premises and equipment | (1,462) | (518) |
Net cash provided by (used in) investing activities | 22,651 | (130,930) |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 241,089 | (160,921) |
Net (decrease) increase in FHLB advances | (145,000) | 89,784 |
Net increase in repurchase agreements | 196 | 182 |
Net proceeds from issuance of common stock | 240 | 198 |
Purchase of treasury stock | (4,633) | |
Repurchase of surrendered stock from vesting of stock plans | (1,008) | (795) |
Cash dividends paid | (4,812) | (4,594) |
Net cash provided by (used in) financing activities | 86,072 | (76,146) |
Net increase (decrease) in cash and cash equivalents | 116,988 | (194,911) |
Cash and cash equivalents at beginning of period | 117,194 | 295,368 |
Cash and cash equivalents at end of period | 234,182 | 100,457 |
Cash paid for: | ||
Interest | 9,032 | 11,126 |
Income taxes | $ 213 | $ 49 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PRESENTATION. | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Bridge Bancorp, Inc. (the “Holding Company”), is a bank holding company incorporated under the laws of the State of New York. The Holding Company’s business consists of the operations of its wholly-owned subsidiary, BNB Bank (the “Bank”). The Bank’s operations include its real estate investment trust subsidiary, Bridgehampton Community, Inc.; a financial title insurance subsidiary, Bridge Abstract LLC (“Bridge Abstract”); and an investment services subsidiary, Bridge Financial Services, Inc. (“Bridge Financial Services”). The unaudited consolidated financial statements presented in this Quarterly Report on Form 10-Q include the collective results of the Holding Company and its wholly-owned subsidiary, the Bank, which are collectively herein referred to as “we”, “us”, “our” and the “Company.” The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. The unaudited consolidated financial statements included herein reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. Such estimates are subject to change in the future as additional information becomes available or previously existing circumstances are modified. Actual future results could differ significantly from those estimates. The annualized results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain reclassifications have been made to prior year amounts, and the related discussion and analysis, to conform to the current year presentation. These reclassifications did not have an impact on net income or total stockholders' equity. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10‑K for the year ended December 31, 2019. COVID-19 Risks In December 2019, a novel coronavirus (“COVID-19”) was reported in China, and, in March 2020, the World Health Organization declared COVID-19 a pandemic. On March 12, 2020, the President of the United States declared the COVID-19 outbreak in the United States a national emergency. The COVID-19 pandemic has caused significant economic dislocation in the United States as many state and local governments, including New York, have ordered non-essential businesses to close and residents to shelter in place at home. This has resulted in an unprecedented slow-down in economic activity and a related increase in unemployment. The Company’s unaudited consolidated financial statements reflect the impact of COVID-19 on the assumptions and estimates used. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 outbreak on the Company’s business. The extent of such impact will depend on future developments, which are highly uncertain, including when COVID-19 can be controlled and abated and when and how the economy may be reopened. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, the Company may be subject to the following risks, any of which could have a material, adverse effect on its business, financial condition, liquidity, and results of operations. · demand for the Company’s products and services may decline, making it difficult to grow assets and income; · if the economy is unable to substantially reopen, and high levels of unemployment continue, for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; · collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; · the Company’s allowance for credit losses (“ACL”) may have to be increased if borrowers experience financial difficulties beyond forbearance periods, which will adversely affect the Company’s net income; · the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to the Company; · as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on the Company’s assets may decline to a greater extent than the decline in its cost of interest-bearing liabilities, reducing net interest margin and spread and reducing net income; · a material decrease in net income or a net loss over several quarters could result in a decrease in the rate of the Company’s quarterly cash dividend; · the Company’s cyber security risks are increased as the result of an increase in the number of employees working remotely; and · the Company relies on third party vendors for certain services and the unavailability of a critical service due to the COVID-19 outbreak could have an adverse effect on the Company. ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) Effective for periods after December 31, 2019, the Company adopted Accounting Standards Update (“ASU”) No 2016-13, Financial Instruments – Credit Losses (Topic 326), which replaced the long-standing incurred loss model used in calculating the allowance for loan and lease losses with a more forward-looking, current expected credit loss model (“CECL” or the “CECL Standard”). Furthermore, the CECL Standard requires financial institutions to measure all expected credit losses for in-scope financial assets held at amortized cost at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts, including estimates of prepayments. 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. Accordingly, financial institutions will now leverage forward-looking information to better inform their credit loss estimates. For the Company, this standard applies to loans held for investment, unfunded commitments, and securities held to maturity. In addition, the CECL Standard made changes to the accounting for available for sale debt securities. Credit losses on available for sale debt securities should be measured in a manner similar to current GAAP. However, the amendments in the CECL Standard require that credit losses be presented as an allowance for credit losses rather than as a write-down. This approach is an improvement to current GAAP because an entity will be able to record reversals of credit losses (in situations in which the estimate of credit losses declines) in current period net income, which in turn should align the income statement recognition of credit losses with the reporting period in which changes occur. Although the Coronavirus Aid, Relief, and Economic Security Act (the “CARES” Act) provided the option to delay the adoption of the CECL Standard until the earlier of December 31, 2020 or the termination of the current national emergency declaration related to the COVID-19 outbreak, the Company adopted the CECL Standard in the first quarter of 2020 as previously planned using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the CECL Standard resulted in an initial increase of $1.6 million to the allowance for credit losses and $0.5 million to the reserve for unfunded commitments. The after-tax cumulative-effect adjustment of $1.5 million was recorded in retained earnings as of January 1, 2020. Based on the credit quality of the Company's securities portfolio, there was no initial adjustment to retained earnings for credit losses associated with debt securities held to maturity. Results for reporting periods beginning after January 1, 2020 are presented under the CECL Standard while prior period amounts will continue to be reported in accordance with previously applicable GAAP. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER SHARE. | |
EARNINGS PER SHARE | 2. EARNINGS PER SHARE Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 260‑10‑45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards (“RSAs”) and certain restricted stock units (“RSUs”) granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities. The following table presents the computation of EPS for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, (In thousands, except per share data) 2020 2019 Net income $ 9,348 $ 12,927 Dividends paid on and earnings allocated to participating securities (195) (277) Income attributable to common stock $ 9,153 $ 12,650 Weighted average common shares outstanding, including participating securities 19,946 19,926 Weighted average participating securities (414) (426) Weighted average common shares outstanding 19,532 19,500 Basic earnings per common share $ 0.47 $ 0.65 Income attributable to common stock $ 9,153 $ 12,650 Weighted average common shares outstanding 19,532 19,500 Incremental shares from assumed conversions of options and restricted stock units 34 26 Weighted average common and equivalent shares outstanding 19,566 19,526 Diluted earnings per common share $ $ 0.65 There were 180,020 stock options outstanding at March 31, 2020 that were not included in the computation of diluted earnings per share for the three months ended March 31, 2020 because the options' exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. There were 110,660 stock options outstanding at March 31, 2019 that were not included in the computation of diluted earnings per share for the three months ended March 31, 2019 because the options' exercise prices were greater than the average market price of common stock and were, therefore, antidilutive. There were 26,556 and 22,305 RSUs that were antidilutive for the three months ended March 31, 2020 and 2019, respectively. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2020 | |
STOCK-BASED COMPENSATION PLANS. | |
STOCK-BASED COMPENSATION PLANS | 3. 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 March 31, 2020, 382,166 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 No. 718. Stock Options Stock options may be either incentive stock options, which bestow certain tax benefits on the optionee, or non-qualified stock options, not qualifying for such benefits. All options have an exercise price that is not less than the market value of the Company's common stock on the date of the grant. The fair value of each option granted is estimated on the date of the grant using the Black-Scholes option-pricing model. The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of the Company's common stock as of the exercise or reporting date. During the three months ended March 31, 2020 and 2019, in accordance with the Long Term Incentive Plan (“LTI Plan”) for Named Executive Officers (“NEOs”), the Company granted 69,360 and 63,267 stock options, respectively, with an exercise price set to equal a 10.0% premium over the grant date stock price. All of the stock options granted vest ratably over three years. The estimated weighted-average grant-date fair value of all stock options granted in the three months ended March 31, 2020 and 2019 was $4.10 and $5.05 per stock option, respectively, using the Black-Scholes option-pricing model with assumptions as follows: Three Months Ended March 31, 2020 2019 Dividend yield 3.03 % 2.86 % Expected volatility 23.11 23.80 Risk-free interest rate 1.47 2.52 Expected option life 6.0 years 6.0 years Compensation expense attributable to stock options was $78 thousand and $39 thousand for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, there was $548 thousand of total unrecognized compensation cost related to unvested stock options. The cost is expected to be recognized over a weighted-average period of 2.2 years. The following table summarizes the status of the Company's stock options as of and for the three months ended March 31, 2020: 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, 2020 110,660 $ 35.71 Granted 69,360 34.87 Outstanding, March 31, 2020 180,020 35.39 9.0 years $ — Vested and Exercisable, March 31, 2020 52,681 35.85 8.3 years — Number of Exercise Range of Exercise Prices Options Price $34.87 69,360 $ 34.87 35.35 63,267 35.35 36.19 47,393 36.19 180,020 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 three months ended March 31, 2020: Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2020 293,717 $ 30.37 Granted 86,428 31.65 Vested (100,020) 28.87 Forfeited (585) 32.12 Unvested, March 31, 2020 279,540 31.30 During the three months ended March 31, 2020, the Company granted a total of 86,428 RSAs. Of the 86,428 RSAs granted, 57,850 time-vested RSAs vest ratably over five years and 28,578 time-vested RSAs vest ratably over three years. During the three months ended March 31, 2019, the Company granted a total of 74,252 RSAs. Of the 74,252 RSAs granted, 49,925 time-vested RSAs vest ratably over five years, 24,327 time-vested RSAs vest ratably over three years. As of March 31, 2020, there were 279,540 unvested RSAs, all of which were time-vested RSAs and there were no unvested performance-based RSAs. Compensation expense attributable to RSAs was $606 thousand and $602 thousand for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, there was $6.8 million of total unrecognized compensation cost related to non-vested RSAs. The cost is expected to be recognized over a weighted-average period of 3.4 years. Restricted Stock Units Long Term Incentive Plan RSUs represent an obligation to deliver shares to a grantee 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 three months ended March 31, 2020: Weighted Average Grant-Date Shares Fair Value Unvested, January 1, 2020 85,342 $ 29.59 Granted 26,556 32.13 Reinvested dividends 663 29.59 Forfeited (6,623) 28.68 Vested (15,106) 25.24 Unvested, March 31, 2020 90,832 31.12 During the three months ended March 31, 2020, in accordance with the LTI Plan for NEOs, the Company granted 26,556 RSUs. Of the 26,556 RSUs granted, 17,943 time-vested RSUs vest ratably over three years and 8,613 performance-based RSUs vest subject to the achievement of the Company's three-year corporate goal for the three-year period ending December 31, 2022. Compensation expense attributable to LTI Plan RSUs was $196 thousand and $170 thousand for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, there was $2.0 million of total unrecognized compensation cost related to non-vested RSUs. The cost is expected to be recognized over a weighted-average period of 2.6 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 $142 thousand and $143 thousand for the three months ended March 31, 2020 and 2019, respectively. Employee Stock Purchase Plan In May 2018, the Board of Directors adopted, and stockholders approved the Employee Stock Purchase Plan (“ESPP”). A total of 1,000,000 shares of the Company’s common stock have been initially authorized for issuance under the ESPP. Subject to any plan limitations, the ESPP allows eligible employees to contribute, normally through payroll deductions, up to $25 thousand for the purchase of the Company’s common stock at a discounted price per share for any calendar year. The current offering period is from January 1, 2020 through June 15, 2020. During the three months ended March 31, 2020, no shares of common stock were purchased, and no expense was recorded related to the ESPP. |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2020 | |
SECURITIES. | |
SECURITIES | 4. 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. 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. The Company has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest separately in other assets in the consolidated balance sheet. A debt security is placed on non-accrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on non-accrual is reversed against interest income. There were no non-accrual debt securities at March 31, 2020 and there was no accrued interest related to debt securities reversed against interest income for the three months ended March 31, 2020. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. On January 1, 2020, the Company adopted the CECL Standard, which requires that debt securities held to maturity be accounted for under the current expected credit losses model, including historical loss experience and impact of current conditions and reasonable and supportable forecasts, with an associated allowance for credit losses. In addition, while credit losses on debt securities available for sale should be measured in accordance with the other-than-temporary impairment (“OTTI”) framework under current GAAP, the amendments in the CECL Standard require that these credit losses be presented as an allowance for credit losses. For AFS debt securities, a decline in fair value due to credit loss results in recording an allowance for credit losses to the extent the fair value is less than the amortized cost basis. Held to maturity debt securities and the allowance for credit losses To the extent that debt securities in the held-to-maturity portfolio share common risk characteristics, estimated expected credit losses are calculated in a manner like that used for loans held for investment. That is, for pools of such debt securities with common risk characteristics, the historical lifetime probability of default and severity of loss in the event of default is derived or obtained from external sources and adjusted for the expected effects of reasonable and supportable forecasts over the expected lives of the securities. Expected credit loss on each debt security in the held-to-maturity portfolio that do not share common risk characteristics with any of the pools of debt securities is individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded amortized cost basis of the security. With respect to certain classes of debt securities, primarily U.S. Treasuries and securities issued by Government Sponsored Entities, the Company considers the history of credit losses, current conditions and reasonable and supportable forecasts, which may indicate that the expectation that nonpayment of the amortized cost basis is or continues to be zero, even if the U.S. government were to technically default. Therefore, for those securities, the Company does not record expected credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Available for sale debt securities and the allowance for credit losses Management evaluates available for sale debt securities for 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. Impairment may result from credit deterioration of the issuer or collateral underlying the security. In performing an assessment of whether any decline in fair value is due to a credit loss, all relevant information is considered at the individual security level. For asset-backed securities performance indicators considered related to the underlying assets include default rates, delinquency rates, percentage of non-performing assets, debt-to-collateral ratios, third party guarantees, current levels of subordination, vintage, geographic concentration, analyst reports and forecasts, credit ratings and other market data. In assessing whether a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount the fair value is less than amortized cost basis. Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are excluded from earnings and reported, net of tax, in other comprehensive income (“OCI”). 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. Accrued interest receivable is excluded from the estimate of credit losses. The following table summarizes the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio at March 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses, respectively: March 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: U.S. Treasury securities $ 59,980 $ 19 $ — $ 59,999 State and municipal obligations 37,233 805 (92) 37,946 U.S. GSE residential mortgage-backed securities 80,136 1,756 (238) 81,654 U.S. GSE residential collateralized mortgage obligations 200,029 5,463 — 205,492 U.S. GSE commercial mortgage-backed securities 16,683 366 — 17,049 U.S. GSE commercial collateralized mortgage obligations 81,310 2,148 (78) 83,380 Other asset backed securities 24,250 — (1,698) 22,552 Corporate bonds 49,000 — (3,794) 45,206 Total available for sale 548,621 10,557 (5,900) 553,278 Gross Gross Estimated Amortized Unrecognized Unrecognized Fair (In thousands) Cost Gains Losses Value Held to maturity: State and municipal obligations 34,046 807 — 34,853 U.S. GSE residential mortgage-backed securities 7,737 141 — 7,878 U.S. GSE residential collateralized mortgage obligations 38,076 1,610 — 39,686 U.S. GSE commercial mortgage-backed securities 17,021 503 — 17,524 U.S. GSE commercial collateralized mortgage obligations 27,351 371 (10) 27,712 Total held to maturity 124,231 3,432 (10) 127,653 Total securities $ 672,852 $ 13,989 $ (5,910) $ 680,931 As of March 31, 2020, none of the Company’s available for sale debt securities were in an unrealized loss position due to credit and therefore no allowance for credit losses on available for sale debt securities was required. Additionally, the calculated allowance for credit losses on held to maturity securities was inconsequential given the high quality composition of the Company’s held to maturity portfolio and therefore no allowance for credit losses was recorded. Accrued interest receivable on securities totaling $2.1 million at March 31, 2020 was included in other assets in the consolidated balance sheet and excluded from the amortized cost and estimated fair value totals in the table above. The following table summarizes the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio at December 31, 2019 and the corresponding amounts of gross unrealized gains and losses therein: December 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) 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 State and municipal obligations 34,303 704 (43) 34,964 U.S. GSE residential mortgage-backed securities 84,550 609 (468) 84,691 U.S. GSE residential collateralized mortgage obligations 278,149 1,166 (1,464) 277,851 U.S. GSE commercial mortgage-backed securities 13,656 23 (70) 13,609 U.S. GSE commercial collateralized mortgage obligations 102,722 1,723 (289) 104,156 Other asset-backed securities 24,250 — (849) 23,401 Corporate bonds 46,000 — (2,198) 43,802 Total available for sale 639,463 4,225 (5,397) 638,291 Held to maturity: State and municipal obligations 41,008 809 — 41,817 U.S. GSE residential mortgage-backed securities 8,142 5 (54) 8,093 U.S. GSE residential collateralized mortgage obligations 39,936 624 (62) 40,498 U.S. GSE commercial mortgage-backed securities 17,215 102 (82) 17,235 U.S. GSE commercial collateralized mortgage obligations 27,337 191 (144) 27,384 Total held to maturity 133,638 1,731 (342) 135,027 Total securities $ 773,101 $ 5,956 $ (5,739) $ 773,318 The following table summarizes available for sale debt securities with gross unrealized losses for which an allowance for credit losses has not been recorded at March 31, 2020, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2020 Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Available for sale: State and municipal obligations $ 5,232 $ (92) $ — $ — U.S. GSE residential mortgage-backed securities 17,934 (162) 4,219 (76) U.S. GSE commercial collateralized mortgage obligations 6,616 (67) 2,020 (11) Other asset backed securities — — 22,552 (1,698) Corporate bonds 4,739 (261) 37,467 (3,533) Total available for sale $ 34,521 $ (582) $ 66,258 $ (5,318) The following table summarizes securities with gross unrealized losses at December 31, 2019, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position: December 31, 2019 Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Available for sale: U.S. Treasury securities $ 50,822 $ (11) $ — $ — U.S. GSE securities — — 4,995 (5) State and municipal obligations 4,982 (42) 76 (1) U.S. GSE residential mortgage-backed securities 2,935 (30) 39,617 (438) U.S. GSE residential collateralized mortgage obligations 81,377 (480) 93,403 (984) U.S. GSE commercial mortgage-backed securities 6,648 (70) — — U.S. GSE commercial collateralized mortgage obligations 28,710 (145) 9,614 (144) Other asset-backed securities — — 23,401 (849) Corporate bonds — — 43,802 (2,198) Total available for sale $ 175,474 $ (778) $ 214,908 $ (4,619) Held to maturity: State and municipal obligations $ — $ — $ — $ — U.S. GSE residential mortgage-backed securities — — 7,268 (54) U.S. GSE residential collateralized mortgage obligations 6,750 (17) 6,105 (45) U.S. GSE commercial mortgage-backed securities — — 5,034 (82) U.S. GSE commercial collateralized mortgage obligations 13,038 (57) 4,300 (87) Total held to maturity $ 19,788 $ (74) $ 22,707 $ (268) Other-Than-Temporary Impairment Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At March 31, 2020, substantially all of the securities in an unrealized loss position had a variable interest rate and the cause of the temporary impairment was directly related to changes in interest rates. The Company generally views changes in fair value caused by changes in interest rates as temporary, which is consistent with its experience. Other asset backed securities are comprised of student loan backed bonds which are guaranteed by the U.S. Department of Education for 97% to 100% of principal. Additionally, the bonds have credit support of 3% to 5% and have maintained their Aa3 Moody's rating during the time the Bank has owned them. The corporate bonds within the portfolio have all maintained an investment grade rating by either Moody's or Standard and Poor's. None of the unrealized losses is related to credit losses. The Company does not have the intent to sell these securities and it is more likely than not that it will not be required to sell the securities before their anticipated recovery. The issuers continue to make timely principal and interest payments on the debt. The fair value is expected to recover as the securities approach maturity. Therefore, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2020. Sales and Calls of Securities There were $74.6 million of proceeds from sale of securities for the three months ended March 31, 2020 with gross gains of approximately $0.8 million realized in 2020 and gross losses of approximately $0.8 million realized in 2020. There were no proceeds from sales of securities for the three months ended March 31, 2019. There were $5.3 million and $7.9 million of proceeds from calls of securities for the three months ended March 31, 2020 and 2019, respectively. Pledged Securities Securities having a fair value of $402.6 million and $402.2 million at March 31, 2020 and December 31, 2019 , respectively, were pledged to secure public deposits and Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) overnight borrowings. Trading Securities The Company did not hold any trading securities during the three months ended March 31, 2020 or the year ended December 31, 2019. 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 $26.4 million and $32.9 million in FHLB, ACBB and FRB stock at March 31, 2020 and December 31, 2019, respectively. These amounts were reported as restricted securities in the consolidated balance sheets. As of March 31, 2020 and 2019, 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. The following table summarizes the amortized cost and estimated fair value by contractual maturity of the available for sale and held to maturity investment securities portfolio at March 31, 2020. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2020 Amortized Estimated (In thousands) Cost Fair Value Maturity Available for sale: Within one year $ 61,121 $ 61,140 One to five years 44,986 44,668 Five to ten years 58,330 56,068 Beyond ten years 384,184 391,402 Total $ 548,621 $ 553,278 Held to maturity: Within one year $ 2,090 $ 2,097 One to five years 27,816 28,373 Five to ten years 23,052 23,841 Beyond ten years 71,273 73,342 Total $ 124,231 $ 127,653 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE. | |
FAIR VALUE | 5. FAIR VALUE The Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities during the first quarter of 2018 . FASB ASC No. 820‑10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820‑10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following tables summarize assets and liabilities measured at fair value on a recurring basis: March 31, 2020 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 $ 59,999 $ 59,999 State and municipal obligations 37,946 37,946 U.S. GSE residential mortgage-backed securities 81,654 81,654 U.S. GSE residential collateralized mortgage obligations 205,492 205,492 U.S. GSE commercial mortgage-backed securities 17,049 17,049 U.S. GSE commercial collateralized mortgage obligations 83,380 83,380 Other asset-backed securities 22,552 22,552 Corporate bonds 45,206 45,206 Total available for sale securities $ 553,278 $ 553,278 Derivatives $ 57,874 $ 57,874 Financial liabilities: Derivatives $ 68,839 $ 68,839 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 The following tables summarize assets measured at fair value on a non-recurring basis: March 31, 2020 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 Collateral dependent loans $ 2,902 $ 2,902 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 Loans held for sale at March 31, 2020 and December 31, 2019 had a carrying amount of $12.6 million with no valuation allowance recorded. Collateral dependent loans with an allowance for credit losses at March 31, 2020 had a carrying amount of $2.9 million, which is made up of the outstanding balance of $7.3 million, net of a valuation allowance of $4.4 million. Impaired loans (prior to the adoption of CECL standard) with an allowance for credit 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. There was no other real estate owned at March 31, 2020 and December 31, 2019. 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. Collateral Dependent Loans with an ACL (Impaired Loans with and ACL prior to the adoption of the CECL Standard) and Other Real Estate Owned: For collateral dependent loans where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. The fair value of real estate collateral is determined based on recent appraised values. The fair value of other real estate owned is also 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 historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the borrower and its business. These valuation methods result in a Level 3 classification. Appraisals for collateral-dependent 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 Appraisal and Credit Departments review 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 loan, management considers information that relates to the type of 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 collateral dependent 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 March 31, 2020 and December 31, 2019: March 31, 2020 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 $ 61,352 $ 61,352 $ — $ — $ 61,352 Interest-bearing deposits with banks 172,830 172,830 — — 172,830 Securities available for sale 553,278 — 553,278 — 553,278 Securities restricted 26,354 n/a n/a n/a n/a Securities held to maturity 124,231 — 127,653 — 127,653 Loans held for sale 12,643 — — 12,643 12,643 Loans, net 3,722,915 — — 3,755,669 3,755,669 Derivatives 57,874 — 57,874 — 57,874 Accrued interest receivable 11,070 — 2,105 8,965 11,070 Financial liabilities: Certificates of deposit 310,077 — 312,965 — 312,965 Demand and other deposits 3,745,658 3,745,658 — — 3,745,658 FHLB advances 290,000 — 300,760 — 300,760 Repurchase agreements 1,195 — 1,195 — 1,195 Subordinated debentures 78,955 — 89,678 — 89,678 Derivatives 68,839 — 68,839 — 68,839 Accrued interest payable 387 — 387 — 387 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 |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2020 | |
LOANS. | |
LOANS | 6. LOANS 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. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in other assets on consolidated balance sheets . 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 (“TDR”) loan is non-accrual, the payment is applied to the principal balance. A TDR 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. Loans that were acquired through the acquisition of Community National Bank on June 19, 2015 and First National Bank of New York 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 were considered purchased credit impaired (“PCI”) loans. As of December 31, 2019, the remaining balance of PCI loans was immaterial to the Company’s financial condition and results of operations. Unless otherwise noted, the above policy is applied consistently to all loan segments. Allowance for Credit Losses On January 1, 2020, the Company adopted the CECL Standard, which requires that loans held for investment be accounted for under the current expected credit losses model. The allowance for credit losses is established and maintained through a provision for credit losses based on expected losses inherent in the Company’s loan portfolio. Management evaluates the adequacy of the allowance on a quarterly basis. Management monitors its entire loan portfolio regularly, with consideration given to detailed analysis of classified loans, repayment patterns, past loss experience, various types of concentrations of credit, current economic conditions, and reasonable and supportable forecasts. Additions to the allowance are charged to expense and realized losses, net of recoveries, are charged against the allowance. The loan loss estimation process involves procedures to appropriately consider the unique characteristics of the Company’s loan portfolio segments. These segments are further disaggregated into loan risk ratings, the level at which credit risk is monitored. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on expected loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and provision for credit losses in those future periods. Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in our process for estimation of expected credit losses. The allowance level is influenced by loan volumes, loan risk rating migration, historic loss experience and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses has two basic components: (1) an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans; and (2) a pooled component for estimated expected credit losses for pools of loans that share similar risk characteristics. Loans that do not share similar credit risk characteristics For a loan that does not share risk characteristics with other loans, expected credit loss is measured based on net realizable value, that is, the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan. For these loans, the Company recognizes expected credit loss equal to the amount by which the net realizable value of the loan is less than the amortized cost basis of the loan (which is net of previous charge-offs), except when the loan is collateral dependent, that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated costs to sell the loan if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. The fair value of real estate collateral is determined based on recent appraised values. Appraisals 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. All appraisals undergo a second review process to ensure that the methodology employed and the values derived are reasonable. Generally, collateral values for real estate loans for which measurement of expected losses is dependent on collateral values are updated every twelve months. 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 historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the borrower and its business. Once the expected credit loss amount is determined, an allowance is provided for equal to the calculated expected credit loss and included in the allowance for credit losses. Pursuant to the Company’s policy, credit losses must be charged-off in the period the loans, or portions thereof, are deemed uncollectable. Loans that share similar credit risk characteristics In estimating the component of the allowance for credit losses for loans that share similar risk characteristics with other loans, such loans are segmented into loan types. Loans are designated into loan pools with similar risk characteristics based on product type in conjunction with other homogeneous characteristics. Loan types include commercial real estate mortgages, owner and non-owner occupied; multi-family mortgage loans; residential real estate mortgages and home equity loans; commercial, industrial and agricultural loans, real estate construction and land loans; and consumer loans. In determining the allowance for credit losses, the Company derives an estimated credit loss assumption from a model that categorizes loan pools based on loan type and further segmented by risk rating. This model is known as Probability of Default/Loss Given Default, utilizing a Transition Matrix approach. This model calculates an expected loss percentage for each loan pool by considering the probability of default, based upon the historical transition or migration of loans from performing (various pass ratings) to criticized, and classified risk ratings to default by risk rating buckets using life-of-loan analysis runout periods for all loan segments, and the historical severity of loss, based on the aggregate net lifetime losses (loss given default) per loan pool. The default trigger, which is defined as the earlier of ninety days past-due or non-accrual status, and severity factors used to calculate the allowance for credit losses for loans in pools that share similar risk characteristics with other loans, are adjusted for differences between the historical period used to calculate historical default and loss severity rates and expected conditions over the remaining lives of the loans in the portfolio. These factors include: (1) lending policies and procedures; (2) international, national, regional and local economic business conditions and developments that affect the collectability of the portfolio, including the condition of various markets; (3) the nature and volume of the loan portfolio including the terms of the loans; (4) the experience, ability, and depth of the lending management and other relevant staff; (5) the volume and severity of past due and adversely classified or graded loans and the volume of non-accrual loans; (6) the quality of our loan review system; (7) the value of underlying collateral for collateralized loans; (8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and (9) the effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio. Such factors are used to adjust the historical probabilities of default and severity of loss for current conditions that are not reflective of the model results. In addition, the economic factor includes management expectation of future conditions based on a reasonable and supportable forecast of the economy. To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made (currently two years), the Bank reverts immediately back to the historical rates of default and severity of loss. Management believes that this transition approach to the Probability of Default/Loss Given Default is a relevant calculation of expected credit losses as there is sufficient volume as well as movement in the risk ratings due to the initial grading system as well as timely updates to risk ratings when necessary. Credit risk ratings are based on management’s evaluation of a credit’s cash flow, collateral, guarantor support, financial disclosures, industry trends and strength of borrowers’ management. 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 credit 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. 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. In accordance with the CECL Standard, the Company maintains a separate reserve for off-balance sheet credit instruments, which is included in other liabilities on the consolidated statements of financial condition. Management estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Company and applying the loss factors, current conditions and forecasting adjustments used in the allowance for credit loss methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan type. No credit loss estimate is reported for off-balance sheet credit exposures that are unconditionally cancellable by the Company. At March 31, 2020, the reserve for off-balance sheet credit exposures was immaterial to the Company’s consolidated statements of financial condition and results of operations. The following table sets forth the major classifications of loans: (In thousands) March 31, 2020 December 31, 2019 Commercial real estate mortgage loans: Owner occupied $ 529,877 $ 531,088 Non-owner occupied 1,053,901 1,034,599 Multi-family mortgage loans 800,556 812,174 Residential real estate mortgage loans 485,492 493,144 Commercial, industrial and agricultural loans 758,683 679,444 Real estate construction and land loans 100,643 97,311 Installment/consumer loans 25,051 24,836 Total loans 3,754,203 3,672,596 Net deferred loan costs and fees 7,927 7,689 Total loans held for investment 3,762,130 3,680,285 Allowance for credit losses (39,215) (32,786) Loans, net $ 3,722,915 $ 3,647,499 Accrued interest receivable on loans totaling $9.0 million at March 31, 2020 and $8.7 million at December 31, 2019 was included in other assets in the consolidated balance sheet and excluded from the table above. As of March 31, 2020 and 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, watch, 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. Watch: Loans classified as watch are considered pass rated loans. These loans carry additional risk factors above those of pass loans but do not have all the risk characteristics of loans classified special mention. Such risk factors require monitoring and if left uncorrected, could lead these loans to be downgraded. 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 internally assigned risk grades as of March 31, 2020 and December 31, 2019: March 31, 2020 (In thousands) 2020 2019 2018 2017 2016 2015 and Prior Revolving Revolving-Term Total Commercial real estate owner occupied: Pass $ 33,372 $ 93,641 $ 52,959 $ 74,288 $ 28,317 $ 183,452 $ — $ — $ 466,029 Watch — 1,395 6,894 5,502 1,277 29,560 — — 44,628 Special mention — — — 10,974 3,577 3,748 — — 18,299 Substandard — — 607 — — 314 — — 921 Total commercial real estate owner occupied 33,372 95,036 60,460 90,764 33,171 217,074 — — 529,877 Commercial real estate non-owner occupied: Pass 39,000 255,073 131,679 197,225 83,651 302,905 — — 1,009,533 Watch — 4,000 2,949 2,367 8,563 15,560 — — 33,439 Special mention — — — — — 291 — — 291 Substandard — — — 9,518 — 1,120 — — 10,638 Total commercial real estate non-owner occupied 39,000 259,073 134,628 209,110 92,214 319,876 - — 1,053,901 Multi-family: Pass 38,911 293,962 41,294 116,995 146,302 125,591 — — 763,055 Watch — — — 8,237 15,801 13,063 — — 37,101 Special mention — — — — — 400 — — 400 Substandard — — — — — — — — — Total multi-family 38,911 293,962 41,294 125,232 162,103 139,054 — — 800,556 Residential real estate: Pass 8,964 34,254 83,491 109,387 29,478 133,888 55,145 8,085 462,692 Watch — 465 412 326 588 2,566 399 1,446 6,202 Special mention — 783 770 — — 9,883 399 777 12,612 Substandard — 334 308 483 — 2,158 — 703 3,986 Total residential real estate 8,964 35,836 84,981 110,196 30,066 148,495 55,943 11,011 485,492 Commercial, industrial and agricultural: Pass 30,490 80,671 48,302 39,169 27,080 40,486 385,474 7,061 658,733 Watch 1,599 2,417 15,041 4,043 812 2,827 34,752 3,440 64,931 Special mention — 384 813 590 604 573 7,752 3,507 14,223 Substandard — — 612 4,987 — 9,530 998 4,669 20,796 Total commercial, industrial and agricultural 32,089 83,472 64,768 48,789 28,496 53,416 428,976 18,677 758,683 Real estate construction and land loans: Pass 7,153 41,664 23,069 17,292 — 4,763 — — 93,941 Watch — — 3,200 1,728 — 283 — — 5,211 Special mention — — — — — — — — — Substandard — — — 1,370 — 121 — — 1,491 Total real estate construction and land loans 7,153 41,664 26,269 20,390 — 5,167 — — 100,643 Installment/consumer loans Pass 103 955 254 145 14 875 21,334 460 24,140 Watch — — — — — — — 45 45 Special mention — — — — — — — 101 101 Substandard — — — 16 — — — 749 765 Total installment/consumer loans 103 955 254 161 14 875 21,334 1,355 25,051 Total Loans $ 159,592 $ 809,998 $ 412,654 $ 604,642 $ 346,064 $ 883,957 $ 506,253 $ 31,043 $ 3,754,203 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 475,949 12,400 4,795 — 493,144 Commercial, industrial and agricultural 643,413 15,670 20,361 — 679,444 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 Past Due and Non-accrual Loans The following tables represents the aging of past due loans as of March 31, 2020 and December 31, 2019 : March 31, 2020 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 $ 586 $ — $ — $ 215 $ 801 $ 529,076 $ 529,877 Non-owner occupied 603 771 — 512 1,886 1,052,015 1,053,901 Multi-family — — — — — 800,556 800,556 Residential real estate 6,067 80 343 2,433 8,923 476,569 485,492 Commercial, industrial and agricultural 1,727 1,618 — 1,312 4,657 754,026 758,683 Real estate construction and land loans — 1,370 — 121 1,491 99,152 100,643 Installment/consumer loans 114 5 — 16 135 24,916 25,051 Total loans $ 9,097 $ 3,844 $ 343 $ 4,609 $ 17,893 $ 3,736,310 $ 3,754,203 During the three months ended March 31, 2020, there was no interest earned on non-accrual loans and $15 thousand in accrued interest on non-accrual loans was reversed through interest income. 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 3,053 747 343 2,743 6,886 486,258 493,144 Commercial, industrial and agricultural 273 721 — 736 1,730 677,714 679,444 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 There was no other real estate owned at March 31, 2020 and December 31, 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 modified as TDRs during the periods indicated: Modifications During the Three Months Ended March 31, 2020 2019 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Loans Investment Investment Commercial real estate: Owner occupied — $ — $ — — $ — $ — Non-owner occupied — — — — — — Residential real estate — — — — — — Commercial, industrial and agricultural 1 1,037 1,037 3 3,209 3,209 Installment/consumer loans — — — — — — Total 1 $ 1,037 $ 1,037 3 $ 3,209 $ 3,209 During the three months ended March 31, 2020, there were no charge-offs relating to TDRs and there were no loans modified as TDRs for which there was a payment default within twelve months following the modification. During the three months ended March 31, 2019, there was one charge-off totaling $6 thousand relating to TDRs and there was one loan modified as a TDR for which there was a payment default within twelve months following the modification. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. As of March 31, 2020 and December 31, 2019, the Company had $635 thousand and $405 thousand, respectively, of non-accrual TDRs and $26.9 million and $26.3 million, respectively, of performing TDRs. At March 31, 2020 and December 31, 2019, non-accrual TDRs were unsecured. The Bank has no commitment to lend additional funds to these debtors. The terms of certain other loans were modified during the three months ended March 31, 2020 that did not meet the definition of a TDR. These loans have a total recorded investment at March 31, 2020 of $26.8 million. These loans were to borrowers who were not experiencing financial difficulties. In connection with the COVID-19 relief provided by the CARES Act, the Company is supporting its customers who may experience financial difficulty due to COVID-19 through loan moratoriums and forbearance programs. The Company began offering 90-day payment modifications on a case-by-case basis to those customers whose income was adversely impacted by COVID-19. The loan modifications in this program primarily consist of three-month deferrals of interest and principal payments, which subsequent to March 31, 2020, resulted in loan modifications to approximately 10% of the loan portfolio. These deferrals are not considered TDRs based on interagency guidance issued in March 2020. Collateral Dependent Loans At March 31, 2020, the Company had collateral dependent commercial, industrial and agricultural loans which were individually evaluated to determine expected credit losses. These loans totaled $7.3 million and had a related allowance for credit losses totaling $4.4 million at March 31, 2020. The loans were secured by inventory and other assets. Impaired Loans (prior to the adoption of the CECL Standard) At December 31, 2019 the Company had individually impaired loans as defined by FASB ASC 310, “Receivables” of $27.0 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. For impaired loans, the Bank evaluates the impairment of the loan in accordance with FASB ASC 310‑10‑35‑22. Impairment is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate. For loans that are collateral dependent, the fair value of the collateral is used to determine the fair value of the loan. The fair value of the collateral is determined based on recent appraised values. The fair value of the collateral or present value of expected cash flows is compared to the carrying value to determine if any write-down or specific loan loss allowance allocation is required. The following table sets forth the recorded investment, unpaid principal balance and related allowance for individually impaired loans at December 31, 2019. The table also sets forth the average recorded investment of individually impaired loans and interest income recognized while the loans were impaired during the period ended March 31, 2019: Three Months Ended December 31, 2019 March 31, 2019 Unpaid Related Average Interest Recorded Principal Allocated Recorded Income (In thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial real estate: Owner occupied $ 3,379 $ 3,401 $ — $ 483 $ — Non-owner occupied 2,296 2,296 — 2,786 25 Residential real estate: Res |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT PLANS | 3 Months Ended |
Mar. 31, 2020 | |
PENSION AND OTHER POSTRETIREMENT PLANS. | |
PENSION AND OTHER POSTRETIREMENT PLANS | 7. PENSION AND POSTRETIREMENT PLANS The Bank maintains a noncontributory pension plan (the “Pension Plan”) covering all eligible employees. The Bank uses a December 31 measurement date for this plan in accordance with FASB ASC 715‑30 “Compensation – Retirement Benefits – Defined Benefit Plans – Pension.” During 2012, the Company amended the Pension Plan by revising the formula for determining benefits effective January 1, 2013, except for certain grandfathered employees. Additionally, new employees hired on or after October 1, 2012 are not eligible for the Pension Plan. During 2001, the Bank adopted the Bridgehampton National Bank Supplemental Executive Retirement Plan (“SERP”). As recommended by the Compensation Committee of the Board of Directors and approved by the full Board of Directors, the SERP provides benefits to certain employees, whose benefits under the Pension Plan are limited by the applicable provisions of the Internal Revenue Code. The benefit under the SERP is equal to the additional amount the employee would be entitled to under the Pension Plan and the 401(k) Plan in the absence of such Internal Revenue Code limitations. The assets of the SERP are held in a rabbi trust to maintain the tax-deferred status of the plan and are subject to the general, unsecured creditors of the Company. As a result, the assets of the rabbi trust are reflected on the Company’s consolidated balance sheets. There were no contributions to the Pension Plan during the three months ended March 31, 2020 and 2019, respectively. There were no contributions to the SERP during the three months ended March 31, 2020 and 2019, respectively. In accordance with the SERP, a retired executive received a distribution totaling $28 thousand during each of the three months ended March 31, 2020 and 2019, respectively. The Company's funding policy with respect to its benefit plans is to contribute at least the minimum amounts required by applicable laws and regulations. The following table presents the components of net periodic benefit (credit) cost: Three Months Ended March 31, Pension Benefits SERP Benefits (In thousands) 2020 2019 2020 2019 Components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: Service cost $ 265 $ 273 $ 93 $ 65 Interest cost 193 225 37 37 Expected return on plan assets (713) (608) — — Amortization of net loss 100 130 57 18 Amortization of prior service credit (19) (19) — — Net periodic benefit (credit) cost $ (174) $ 1 $ 187 $ 120 |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 3 Months Ended |
Mar. 31, 2020 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE. | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 8. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase totaled $1.2 million at March 31, 2020 and $1.0 million at December 31, 2019. 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 March 31, 2020 and 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. Securities sold under agreements to repurchase are financing arrangements with $1.2 million maturing during the second 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. |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 3 Months Ended |
Mar. 31, 2020 | |
FEDERAL HOME LOAN BANK ADVANCES. | |
FEDERAL HOME LOAN BANK ADVANCES | 9. FEDERAL HOME LOAN BANK ADVANCES The following tables present the contractual maturities and weighted average interest rates of FHLB advances for each of the next five years. There are no FHLB advances with contractual maturities after 2020. March 31, 2020 (Dollars in thousands) Weighted Contractual Maturity Amount Average Rate Overnight $ — — % 2020 290,000 0.81 Total FHLB advances $ 290,000 0.81 % 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 % Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $1.4 billion of residential and commercial mortgage loans under a blanket lien arrangement at March 31, 2020 and December 31, 2019. Based on this collateral and the Company's holdings of FHLB stock, the Company is eligible to borrow up to a total of $1.5 billion at March 31, 2020 . |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 3 Months Ended |
Mar. 31, 2020 | |
SUBORDINATED DEBENTURES. | |
SUBORDINATED DEBENTURES | 10. 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 $79.0 million at March 31, 2020 and $78.9 million at December 31, 2019. The subordinated debentures are included in tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2020 | |
DERIVATIVES. | |
DERIVATIVES | 11. DERIVATIVES 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 $305.0 million and $290.0 million at March 31, 2020 and December 31, 2019, 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 March 31, 2020 and December 31, 2019: (Dollars in thousands) March 31, 2020 December 31, 2019 Notional amounts $ 305,000 $ 290,000 Weighted average pay rates 1.84 % 1.84 % Weighted average receive rates 1.38 % 1.94 % Weighted average maturity 4.10 years 2.91 years Interest income recorded on these swap transactions totaled $110 thousand and $556 thousand for the three months ended March 31, 2020 and 2019, respectively, 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 three months ended March 31, 2020, the Company had $110 thousand of reclassifications as a reduction to interest expense. During the next twelve months, the Company estimates that an additional $3.0 million will be reclassified as an increase to interest expense. The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the consolidated statements of income relating to the cash flow derivative instruments for the three months ended March 31, 2020 and 2019: 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 Three months ended March 31, 2020 $ (9,510) $ — $ 110 $ — Three months ended March 31, 2019 $ (1,597) $ — $ 556 $ — The following table reflects the cash flow hedges included in the consolidated balance sheets at the dates indicated: March 31, 2020 December 31, 2019 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 $ — $ (10,603) $ 240,000 $ 1,233 $ (978) Forward starting interest rate swaps related to FHLB advances 65,000 — (360) 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 $918.8 million at March 31, 2020. Of the $918.8 million notional amounts, $459.4 million were from loan customers and $459.4 million were from bank counterparties. 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. The following table presents summary information about the interest rate swaps at March 31, 2020 and December 31, 2019: (Dollars in thousands) March 31, 2020 December 31, 2019 Notional amounts $ 918,770 $ 823,894 Weighted average pay rates 3.36 % 3.75 % Weighted average receive rates 3.36 % 3.75 % Weighted average maturity 10.49 years 10.77 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 $1.2 million and $1.1 million for the three months ended March 31, 2020 and 2019. Credit-Risk-Related Contingent Features As of March 31, 2020, 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 $69.2 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 its obligations to the Company under the agreements. However, if the termination value of derivatives is a net liability position, the Company is required to post collateral to the counterparty. At March 31, 2020, the Company posted collateral of $70.8 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 March 31, 2020, it could have been required to settle its obligations under the agreements at the termination value. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
LEASES | |
LEASES | 12. LEASES The Company has operating leases for certain branch locations, corporate offices and equipment. Certain leases contain rent escalation clauses, which are reflected in the Company’s operating lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants. The components of lease cost were as follows: Three Months Ended (In thousands) March 31, 2020 March 31, 2019 Lease cost Operating lease cost $ 1,938 $ 1,663 Sublease income (11) (24) Total lease cost $ 1,927 $ 1,639 The Company reports lease cost in occupancy and equipment expense in the consolidated statements of income. The Company subleases a portion of its leased properties to commercial sublessees. Sublease income is included in other operating income in the consolidated statements of income. Supplemental cash flow and balance sheet information related to operating leases were as follows: Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,794 $ 1,669 Operating right-of-use assets obtained in exchange for lease liabilities $ — $ — March 31, 2020 December 31, 2019 Weighted-average remaining lease term-operating leases 7.9 years 7.8 years Weighted-average discount rate-operating leases (1) 3.20 % 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) March 31, 2020 December 31, 2019 2020 $ 5,170 $ 7,011 2021 6,878 6,974 2022 6,753 6,802 2023 5,853 5,853 2024 5,594 5,595 Thereafter 20,577 20,324 Total operating lease payments $ 50,825 $ 52,559 Less: Interest (6,254) (6,582) Present value of operating lease liabilities $ 44,571 $ 45,977 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 3 Months Ended |
Mar. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 13. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following table summarizes the components of other comprehensive income (loss) and related income tax effects: Three Months Ended March 31, March 31, (In thousands) 2020 2019 Unrealized holding gains on available for sale securities $ 5,813 $ 5,531 Reclassification adjustments for losses realized in income 15 — Income tax effect (1,704) (1,613) Net change in unrealized gains on available for sale securities 4,124 3,918 Reclassification adjustments for amortization realized in income 138 128 Income tax effect (40) (38) Net change in post-retirement obligation 98 90 Change in fair value of derivatives used for cash flow hedges (9,510) (1,597) Reclassification adjustments for gains realized in income (110) (556) Income tax effect 2,813 628 Net change in unrealized losses on cash flow hedges (6,807) (1,525) Other comprehensive (loss) income $ (2,585) $ 2,483 The following is a summary of the accumulated other comprehensive loss balances, net of income taxes, at the dates indicated: Other December 31, Comprehensive March 31, (In thousands) 2019 Income 2020 Unrealized (losses) gains on available for sale securities $ (829) $ 4,124 $ 3,295 Unrealized (losses) gains on pension benefits (6,775) 98 (6,677) Unrealized losses on cash flow hedges (737) (6,807) (7,544) Accumulated other comprehensive loss, net of income taxes $ (8,341) $ (2,585) $ (10,926) The following represents the reclassifications out of accumulated other comprehensive (loss) income for the three months ended March 31, 2020 and 2019: Three Months Ended Affected Line Item March 31, March 31, in the Consolidated (In thousands) 2020 2019 Statements of Income Realized losses on sale of available for sale securities $ (15) $ — Net securities gains (losses) Amortization of defined benefit pension plan and defined benefit plan component of the SERP: Prior service credit 19 19 Other operating expenses Actuarial losses (157) (148) Other operating expenses Realized gains on cash flow hedges 110 556 Interest expense Total reclassifications, before income tax $ (43) $ 427 Income tax expense (benefit) 13 (125) Income tax expense Total reclassifications, net of income tax $ (30) $ 302 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
RECENT ACCOUNTING PRONOUNCEMENTS. | |
RECENT ACCOUNTING PRONOUNCEMENTS | 14. RECENT ACCOUNTING PRONOUNCEMENTS Standards Effective in 2020 ASU 2016‑13, Financial Instruments – Credit Losses (Topic 326) Effective for periods after December 31, 2019, the Company adopted the CECL Standard. Refer to Note 1. “Basis of Presentation” for further details of the recent accounting pronouncement and its effect on the Company’s consolidated financial statements. 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 . |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PRESENTATION. | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Bridge Bancorp, Inc. (the “Holding Company”), is a bank holding company incorporated under the laws of the State of New York. The Holding Company’s business consists of the operations of its wholly-owned subsidiary, BNB Bank (the “Bank”). The Bank’s operations include its real estate investment trust subsidiary, Bridgehampton Community, Inc.; a financial title insurance subsidiary, Bridge Abstract LLC (“Bridge Abstract”); and an investment services subsidiary, Bridge Financial Services, Inc. (“Bridge Financial Services”). The unaudited consolidated financial statements presented in this Quarterly Report on Form 10-Q include the collective results of the Holding Company and its wholly-owned subsidiary, the Bank, which are collectively herein referred to as “we”, “us”, “our” and the “Company.” The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. The unaudited consolidated financial statements included herein reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. Such estimates are subject to change in the future as additional information becomes available or previously existing circumstances are modified. Actual future results could differ significantly from those estimates. The annualized results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain reclassifications have been made to prior year amounts, and the related discussion and analysis, to conform to the current year presentation. These reclassifications did not have an impact on net income or total stockholders' equity. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10‑K for the year ended December 31, 2019. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Standards Effective in 2020 ASU 2016‑13, Financial Instruments – Credit Losses (Topic 326) Effective for periods after December 31, 2019, the Company adopted the CECL Standard. Refer to Note 1. “Basis of Presentation” for further details of the recent accounting pronouncement and its effect on the Company’s consolidated financial statements. 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 . |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER SHARE. | |
Schedule of computation of EPS | Three Months Ended March 31, (In thousands, except per share data) 2020 2019 Net income $ 9,348 $ 12,927 Dividends paid on and earnings allocated to participating securities (195) (277) Income attributable to common stock $ 9,153 $ 12,650 Weighted average common shares outstanding, including participating securities 19,946 19,926 Weighted average participating securities (414) (426) Weighted average common shares outstanding 19,532 19,500 Basic earnings per common share $ 0.47 $ 0.65 Income attributable to common stock $ 9,153 $ 12,650 Weighted average common shares outstanding 19,532 19,500 Incremental shares from assumed conversions of options and restricted stock units 34 26 Weighted average common and equivalent shares outstanding 19,566 19,526 Diluted earnings per common share $ $ 0.65 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of granted stock options, Black-Scholes option-pricing model assumptions | Three Months Ended March 31, 2020 2019 Dividend yield 3.03 % 2.86 % Expected volatility 23.11 23.80 Risk-free interest rate 1.47 2.52 Expected option life 6.0 years 6.0 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, 2020 110,660 $ 35.71 Granted 69,360 34.87 Outstanding, March 31, 2020 180,020 35.39 9.0 years $ — Vested and Exercisable, March 31, 2020 52,681 35.85 8.3 years — Number of Exercise Range of Exercise Prices Options Price $34.87 69,360 $ 34.87 35.35 63,267 35.35 36.19 47,393 36.19 180,020 |
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, 2020 293,717 $ 30.37 Granted 86,428 31.65 Vested (100,020) 28.87 Forfeited (585) 32.12 Unvested, March 31, 2020 279,540 31.30 |
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, 2020 85,342 $ 29.59 Granted 26,556 32.13 Reinvested dividends 663 29.59 Forfeited (6,623) 28.68 Vested (15,106) 25.24 Unvested, March 31, 2020 90,832 31.12 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
SECURITIES. | |
Schedule of amortized cost and fair value of the available for sale and held to maturity | The following table summarizes the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio at March 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses, respectively: March 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available for sale: U.S. Treasury securities $ 59,980 $ 19 $ — $ 59,999 State and municipal obligations 37,233 805 (92) 37,946 U.S. GSE residential mortgage-backed securities 80,136 1,756 (238) 81,654 U.S. GSE residential collateralized mortgage obligations 200,029 5,463 — 205,492 U.S. GSE commercial mortgage-backed securities 16,683 366 — 17,049 U.S. GSE commercial collateralized mortgage obligations 81,310 2,148 (78) 83,380 Other asset backed securities 24,250 — (1,698) 22,552 Corporate bonds 49,000 — (3,794) 45,206 Total available for sale 548,621 10,557 (5,900) 553,278 Gross Gross Estimated Amortized Unrecognized Unrecognized Fair (In thousands) Cost Gains Losses Value Held to maturity: State and municipal obligations 34,046 807 — 34,853 U.S. GSE residential mortgage-backed securities 7,737 141 — 7,878 U.S. GSE residential collateralized mortgage obligations 38,076 1,610 — 39,686 U.S. GSE commercial mortgage-backed securities 17,021 503 — 17,524 U.S. GSE commercial collateralized mortgage obligations 27,351 371 (10) 27,712 Total held to maturity 124,231 3,432 (10) 127,653 Total securities $ 672,852 $ 13,989 $ (5,910) $ 680,931 As of March 31, 2020, none of the Company’s available for sale debt securities were in an unrealized loss position due to credit and therefore no allowance for credit losses on available for sale debt securities was required. Additionally, the calculated allowance for credit losses on held to maturity securities was inconsequential given the high quality composition of the Company’s held to maturity portfolio and therefore no allowance for credit losses was recorded. Accrued interest receivable on securities totaling $2.1 million at March 31, 2020 was included in other assets in the consolidated balance sheet and excluded from the amortized cost and estimated fair value totals in the table above. The following table summarizes the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio at December 31, 2019 and the corresponding amounts of gross unrealized gains and losses therein: December 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) 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 State and municipal obligations 34,303 704 (43) 34,964 U.S. GSE residential mortgage-backed securities 84,550 609 (468) 84,691 U.S. GSE residential collateralized mortgage obligations 278,149 1,166 (1,464) 277,851 U.S. GSE commercial mortgage-backed securities 13,656 23 (70) 13,609 U.S. GSE commercial collateralized mortgage obligations 102,722 1,723 (289) 104,156 Other asset-backed securities 24,250 — (849) 23,401 Corporate bonds 46,000 — (2,198) 43,802 Total available for sale 639,463 4,225 (5,397) 638,291 Held to maturity: State and municipal obligations 41,008 809 — 41,817 U.S. GSE residential mortgage-backed securities 8,142 5 (54) 8,093 U.S. GSE residential collateralized mortgage obligations 39,936 624 (62) 40,498 U.S. GSE commercial mortgage-backed securities 17,215 102 (82) 17,235 U.S. GSE commercial collateralized mortgage obligations 27,337 191 (144) 27,384 Total held to maturity 133,638 1,731 (342) 135,027 Total securities $ 773,101 $ 5,956 $ (5,739) $ 773,318 |
Schedule of securities having a continuous unrealized loss position aggregated by a period of time less than or greater than 12 months | The following table summarizes available for sale debt securities with gross unrealized losses for which an allowance for credit losses has not been recorded at March 31, 2020, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2020 Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Available for sale: State and municipal obligations $ 5,232 $ (92) $ — $ — U.S. GSE residential mortgage-backed securities 17,934 (162) 4,219 (76) U.S. GSE commercial collateralized mortgage obligations 6,616 (67) 2,020 (11) Other asset backed securities — — 22,552 (1,698) Corporate bonds 4,739 (261) 37,467 (3,533) Total available for sale $ 34,521 $ (582) $ 66,258 $ (5,318) The following table summarizes securities with gross unrealized losses at December 31, 2019, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position: December 31, 2019 Less than 12 months Greater than 12 months Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Available for sale: U.S. Treasury securities $ 50,822 $ (11) $ — $ — U.S. GSE securities — — 4,995 (5) State and municipal obligations 4,982 (42) 76 (1) U.S. GSE residential mortgage-backed securities 2,935 (30) 39,617 (438) U.S. GSE residential collateralized mortgage obligations 81,377 (480) 93,403 (984) U.S. GSE commercial mortgage-backed securities 6,648 (70) — — U.S. GSE commercial collateralized mortgage obligations 28,710 (145) 9,614 (144) Other asset-backed securities — — 23,401 (849) Corporate bonds — — 43,802 (2,198) Total available for sale $ 175,474 $ (778) $ 214,908 $ (4,619) Held to maturity: State and municipal obligations $ — $ — $ — $ — U.S. GSE residential mortgage-backed securities — — 7,268 (54) U.S. GSE residential collateralized mortgage obligations 6,750 (17) 6,105 (45) U.S. GSE commercial mortgage-backed securities — — 5,034 (82) U.S. GSE commercial collateralized mortgage obligations 13,038 (57) 4,300 (87) Total held to maturity $ 19,788 $ (74) $ 22,707 $ (268) |
Schedule of amortized cost, fair value and maturities of the available for sale and held to maturity investment securities portfolio | March 31, 2020 Amortized Estimated (In thousands) Cost Fair Value Maturity Available for sale: Within one year $ 61,121 $ 61,140 One to five years 44,986 44,668 Five to ten years 58,330 56,068 Beyond ten years 384,184 391,402 Total $ 548,621 $ 553,278 Held to maturity: Within one year $ 2,090 $ 2,097 One to five years 27,816 28,373 Five to ten years 23,052 23,841 Beyond ten years 71,273 73,342 Total $ 124,231 $ 127,653 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE. | |
Schedule of assets and liabilities measured on a recurring basis | March 31, 2020 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 $ 59,999 $ 59,999 State and municipal obligations 37,946 37,946 U.S. GSE residential mortgage-backed securities 81,654 81,654 U.S. GSE residential collateralized mortgage obligations 205,492 205,492 U.S. GSE commercial mortgage-backed securities 17,049 17,049 U.S. GSE commercial collateralized mortgage obligations 83,380 83,380 Other asset-backed securities 22,552 22,552 Corporate bonds 45,206 45,206 Total available for sale securities $ 553,278 $ 553,278 Derivatives $ 57,874 $ 57,874 Financial liabilities: Derivatives $ 68,839 $ 68,839 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 |
Schedule of assets measured at fair value on a non-recurring basis | March 31, 2020 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 Collateral dependent loans $ 2,902 $ 2,902 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 |
Schedule of estimated fair values and recorded carrying values of financial instruments | March 31, 2020 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 $ 61,352 $ 61,352 $ — $ — $ 61,352 Interest-bearing deposits with banks 172,830 172,830 — — 172,830 Securities available for sale 553,278 — 553,278 — 553,278 Securities restricted 26,354 n/a n/a n/a n/a Securities held to maturity 124,231 — 127,653 — 127,653 Loans held for sale 12,643 — — 12,643 12,643 Loans, net 3,722,915 — — 3,755,669 3,755,669 Derivatives 57,874 — 57,874 — 57,874 Accrued interest receivable 11,070 — 2,105 8,965 11,070 Financial liabilities: Certificates of deposit 310,077 — 312,965 — 312,965 Demand and other deposits 3,745,658 3,745,658 — — 3,745,658 FHLB advances 290,000 — 300,760 — 300,760 Repurchase agreements 1,195 — 1,195 — 1,195 Subordinated debentures 78,955 — 89,678 — 89,678 Derivatives 68,839 — 68,839 — 68,839 Accrued interest payable 387 — 387 — 387 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 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of the major classifications of loans | (In thousands) March 31, 2020 December 31, 2019 Commercial real estate mortgage loans: Owner occupied $ 529,877 $ 531,088 Non-owner occupied 1,053,901 1,034,599 Multi-family mortgage loans 800,556 812,174 Residential real estate mortgage loans 485,492 493,144 Commercial, industrial and agricultural loans 758,683 679,444 Real estate construction and land loans 100,643 97,311 Installment/consumer loans 25,051 24,836 Total loans 3,754,203 3,672,596 Net deferred loan costs and fees 7,927 7,689 Total loans held for investment 3,762,130 3,680,285 Allowance for credit losses (39,215) (32,786) Loans, net $ 3,722,915 $ 3,647,499 |
Schedule of loans by class categorized by internally assigned credit risk grades | March 31, 2020 (In thousands) 2020 2019 2018 2017 2016 2015 and Prior Revolving Revolving-Term Total Commercial real estate owner occupied: Pass $ 33,372 $ 93,641 $ 52,959 $ 74,288 $ 28,317 $ 183,452 $ — $ — $ 466,029 Watch — 1,395 6,894 5,502 1,277 29,560 — — 44,628 Special mention — — — 10,974 3,577 3,748 — — 18,299 Substandard — — 607 — — 314 — — 921 Total commercial real estate owner occupied 33,372 95,036 60,460 90,764 33,171 217,074 — — 529,877 Commercial real estate non-owner occupied: Pass 39,000 255,073 131,679 197,225 83,651 302,905 — — 1,009,533 Watch — 4,000 2,949 2,367 8,563 15,560 — — 33,439 Special mention — — — — — 291 — — 291 Substandard — — — 9,518 — 1,120 — — 10,638 Total commercial real estate non-owner occupied 39,000 259,073 134,628 209,110 92,214 319,876 - — 1,053,901 Multi-family: Pass 38,911 293,962 41,294 116,995 146,302 125,591 — — 763,055 Watch — — — 8,237 15,801 13,063 — — 37,101 Special mention — — — — — 400 — — 400 Substandard — — — — — — — — — Total multi-family 38,911 293,962 41,294 125,232 162,103 139,054 — — 800,556 Residential real estate: Pass 8,964 34,254 83,491 109,387 29,478 133,888 55,145 8,085 462,692 Watch — 465 412 326 588 2,566 399 1,446 6,202 Special mention — 783 770 — — 9,883 399 777 12,612 Substandard — 334 308 483 — 2,158 — 703 3,986 Total residential real estate 8,964 35,836 84,981 110,196 30,066 148,495 55,943 11,011 485,492 Commercial, industrial and agricultural: Pass 30,490 80,671 48,302 39,169 27,080 40,486 385,474 7,061 658,733 Watch 1,599 2,417 15,041 4,043 812 2,827 34,752 3,440 64,931 Special mention — 384 813 590 604 573 7,752 3,507 14,223 Substandard — — 612 4,987 — 9,530 998 4,669 20,796 Total commercial, industrial and agricultural 32,089 83,472 64,768 48,789 28,496 53,416 428,976 18,677 758,683 Real estate construction and land loans: Pass 7,153 41,664 23,069 17,292 — 4,763 — — 93,941 Watch — — 3,200 1,728 — 283 — — 5,211 Special mention — — — — — — — — — Substandard — — — 1,370 — 121 — — 1,491 Total real estate construction and land loans 7,153 41,664 26,269 20,390 — 5,167 — — 100,643 Installment/consumer loans Pass 103 955 254 145 14 875 21,334 460 24,140 Watch — — — — — — — 45 45 Special mention — — — — — — — 101 101 Substandard — — — 16 — — — 749 765 Total installment/consumer loans 103 955 254 161 14 875 21,334 1,355 25,051 Total Loans $ 159,592 $ 809,998 $ 412,654 $ 604,642 $ 346,064 $ 883,957 $ 506,253 $ 31,043 $ 3,754,203 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 475,949 12,400 4,795 — 493,144 Commercial, industrial and agricultural 643,413 15,670 20,361 — 679,444 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 |
Schedule of the aging of the recorded investment in past due loans by class of loans | March 31, 2020 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 $ 586 $ — $ — $ 215 $ 801 $ 529,076 $ 529,877 Non-owner occupied 603 771 — 512 1,886 1,052,015 1,053,901 Multi-family — — — — — 800,556 800,556 Residential real estate 6,067 80 343 2,433 8,923 476,569 485,492 Commercial, industrial and agricultural 1,727 1,618 — 1,312 4,657 754,026 758,683 Real estate construction and land loans — 1,370 — 121 1,491 99,152 100,643 Installment/consumer loans 114 5 — 16 135 24,916 25,051 Total loans $ 9,097 $ 3,844 $ 343 $ 4,609 $ 17,893 $ 3,736,310 $ 3,754,203 During the three months ended March 31, 2020, there was no interest earned on non-accrual loans and $15 thousand in accrued interest on non-accrual loans was reversed through interest income. 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 3,053 747 343 2,743 6,886 486,258 493,144 Commercial, industrial and agricultural 273 721 — 736 1,730 677,714 679,444 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 |
Schedule of loans receivable by class modified as troubled debt restructurings | Modifications During the Three Months Ended March 31, 2020 2019 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Loans Investment Investment Commercial real estate: Owner occupied — $ — $ — — $ — $ — Non-owner occupied — — — — — — Residential real estate — — — — — — Commercial, industrial and agricultural 1 1,037 1,037 3 3,209 3,209 Installment/consumer loans — — — — — — Total 1 $ 1,037 $ 1,037 3 $ 3,209 $ 3,209 |
Schedule of individually impaired loans by class | Three Months Ended December 31, 2019 March 31, 2019 Unpaid Related Average Interest Recorded Principal Allocated Recorded Income (In thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial real estate: Owner occupied $ 3,379 $ 3,401 $ — $ 483 $ — Non-owner occupied 2,296 2,296 — 2,786 25 Residential real estate: Residential mortgages — — — — — Home equity 294 300 — — — Commercial, industrial and agricultural: Secured 494 494 — 1,482 16 Unsecured 8,863 8,863 — 5,617 85 Total with no related allowance recorded 15,326 15,354 — 10,368 126 With an allowance recorded: Commercial real estate: Owner occupied — — — — — Non-owner occupied — — — — — Residential real estate: Residential mortgages — — — — — Home equity — — — — — Commercial, industrial and agricultural: Secured 9,612 9,612 3,435 3,942 36 Unsecured 2,045 2,051 1,241 — — Total with an allowance recorded 11,657 11,663 4,676 3,942 36 Total: Commercial real estate: Owner occupied 3,379 3,401 — 483 — Non-owner occupied 2,296 2,296 — 2,786 25 Residential real estate: Residential mortgages — — — — — Home equity 294 300 — — — Commercial, industrial and agricultural: Secured 10,106 10,106 3,435 5,424 52 Unsecured 10,908 10,914 1,241 5,617 85 Total $ 26,983 $ 27,017 $ 4,676 $ 14,310 $ 162 |
Schedule of allowance of credit losses | Three Months Ended March 31, 2020 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 credit losses: Beginning balance, prior to adoption of CECL $ 12,150 $ 4,829 $ 1,882 $ 12,583 $ 1,066 $ 276 $ 32,786 Impact of adopting CECL (7,712) (3,589) 2,182 8,699 1,274 771 1,625 Charge-offs (1) — — (215) — — (216) Recoveries — — 1 19 — — 20 Provision (credit) for credit losses 531 83 (40) 3,459 842 125 5,000 Ending balance $ 4,968 $ 1,323 $ 4,025 $ 24,545 $ 3,182 $ 1,172 $ 39,215 Three Months Ended March 31, 2019 Residential Commercial, Real Estate Commercial Real Estate Industrial and Construction Installment/ Real Estate Multi-family Mortgage Agricultural and Land Consumer (In thousands) Mortgage Loans Loans Loans Loans Loans Loans Total Allowance for credit losses: Beginning balance $ 10,792 $ 2,566 $ 3,935 $ 12,722 $ 1,297 $ 106 $ 31,418 Charge-offs — — — (242) — (4) (246) Recoveries — — 1 11 — — 12 Provision (credit) for credit losses 307 (9) (562) 582 229 53 600 Ending balance $ 11,099 $ 2,557 $ 3,374 $ 13,073 $ 1,526 $ 155 $ 31,784 |
ASU 2016-13 | Prior to adoption | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of allowance of credit losses | 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 |
PENSION AND POSTRETIREMENT PLAN
PENSION AND POSTRETIREMENT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
PENSION AND OTHER POSTRETIREMENT PLANS. | |
Schedule of components of net periodic benefit cost (credit) | Three Months Ended March 31, Pension Benefits SERP Benefits (In thousands) 2020 2019 2020 2019 Components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: Service cost $ 265 $ 273 $ 93 $ 65 Interest cost 193 225 37 37 Expected return on plan assets (713) (608) — — Amortization of net loss 100 130 57 18 Amortization of prior service credit (19) (19) — — Net periodic benefit (credit) cost $ (174) $ 1 $ 187 $ 120 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FEDERAL HOME LOAN BANK ADVANCES. | |
Schedule of contractual maturities and weighted average interest rates of FHLB advances | March 31, 2020 (Dollars in thousands) Weighted Contractual Maturity Amount Average Rate Overnight $ — — % 2020 290,000 0.81 Total FHLB advances $ 290,000 0.81 % 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 % |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
DERIVATIVES. | |
Schedule of information about the interest rate swap designated as a cash flow hedge | (Dollars in thousands) March 31, 2020 December 31, 2019 Notional amounts $ 305,000 $ 290,000 Weighted average pay rates 1.84 % 1.84 % Weighted average receive rates 1.38 % 1.94 % Weighted average maturity 4.10 years 2.91 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 Three months ended March 31, 2020 $ (9,510) $ — $ 110 $ — Three months ended March 31, 2019 $ (1,597) $ — $ 556 $ — |
Schedule of cash flow hedge included in the Consolidated Balance Sheets | March 31, 2020 December 31, 2019 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 $ — $ (10,603) $ 240,000 $ 1,233 $ (978) Forward starting interest rate swaps related to FHLB advances 65,000 — (360) 50,000 — (1,427) |
Schedule of information about interest rate swaps | (Dollars in thousands) March 31, 2020 December 31, 2019 Notional amounts $ 918,770 $ 823,894 Weighted average pay rates 3.36 % 3.75 % Weighted average receive rates 3.36 % 3.75 % Weighted average maturity 10.49 years 10.77 years Fair value of combined interest rate swaps $ — $ — |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LEASES | |
Summary of lease costs | Three Months Ended (In thousands) March 31, 2020 March 31, 2019 Lease cost Operating lease cost $ 1,938 $ 1,663 Sublease income (11) (24) Total lease cost $ 1,927 $ 1,639 |
Summary of supplemental cash flow and balance sheet information related to operating leases | Three Months Ended (Dollars in thousands) March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,794 $ 1,669 Operating right-of-use assets obtained in exchange for lease liabilities $ — $ — March 31, 2020 December 31, 2019 Weighted-average remaining lease term-operating leases 7.9 years 7.8 years Weighted-average discount rate-operating leases (1) 3.20 % 3.20 % 1) The Company computes the present value of operating lease liabilities using its incremental borrowing rate as the discount rate. |
Summary of maturities of operating lease liabilities | (In thousands) March 31, 2020 December 31, 2019 2020 $ 5,170 $ 7,011 2021 6,878 6,974 2022 6,753 6,802 2023 5,853 5,853 2024 5,594 5,595 Thereafter 20,577 20,324 Total operating lease payments $ 50,825 $ 52,559 Less: Interest (6,254) (6,582) Present value of operating lease liabilities $ 44,571 $ 45,977 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
Schedule of other comprehensive income (loss) and related income tax effects | Three Months Ended March 31, March 31, (In thousands) 2020 2019 Unrealized holding gains on available for sale securities $ 5,813 $ 5,531 Reclassification adjustments for losses realized in income 15 — Income tax effect (1,704) (1,613) Net change in unrealized gains on available for sale securities 4,124 3,918 Reclassification adjustments for amortization realized in income 138 128 Income tax effect (40) (38) Net change in post-retirement obligation 98 90 Change in fair value of derivatives used for cash flow hedges (9,510) (1,597) Reclassification adjustments for gains realized in income (110) (556) Income tax effect 2,813 628 Net change in unrealized losses on cash flow hedges (6,807) (1,525) Other comprehensive (loss) income $ (2,585) $ 2,483 |
Schedule of accumulated other comprehensive loss balances, net of income taxes | Other December 31, Comprehensive March 31, (In thousands) 2019 Income 2020 Unrealized (losses) gains on available for sale securities $ (829) $ 4,124 $ 3,295 Unrealized (losses) gains on pension benefits (6,775) 98 (6,677) Unrealized losses on cash flow hedges (737) (6,807) (7,544) Accumulated other comprehensive loss, net of income taxes $ (8,341) $ (2,585) $ (10,926) |
Schedule of reclassifications out of accumulated other comprehensive (loss) income | Three Months Ended Affected Line Item March 31, March 31, in the Consolidated (In thousands) 2020 2019 Statements of Income Realized losses on sale of available for sale securities $ (15) $ — Net securities gains (losses) Amortization of defined benefit pension plan and defined benefit plan component of the SERP: Prior service credit 19 19 Other operating expenses Actuarial losses (157) (148) Other operating expenses Realized gains on cash flow hedges 110 556 Interest expense Total reclassifications, before income tax $ (43) $ 427 Income tax expense (benefit) 13 (125) Income tax expense Total reclassifications, net of income tax $ (30) $ 302 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
BASIS OF PRESENTATION | |||||
Allowance for credit losses | $ 39,215 | $ 32,786 | $ 31,784 | $ 31,418 | |
Adjustment to retained earnings | 153,766 | $ 150,703 | |||
ASU 2016-13 | Impact of adoption | |||||
BASIS OF PRESENTATION | |||||
Allowance for credit losses | $ 1,600 | $ 1,625 | |||
Reserve for unfunded commitments | 500 | ||||
Cumulative effect on retained earnings | 1,500 | ||||
Adjustment to retained earnings | $ 0 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
EARNINGS PER SHARE. | ||
Net income | $ 9,348 | $ 12,927 |
Dividends paid on and earnings allocated to participating securities | (195) | (277) |
Income attributable to common stock | $ 9,153 | $ 12,650 |
Weighted average common shares outstanding, including participating securities | 19,946 | 19,926 |
Weighted average participating securities (in shares) | (414) | (426) |
Weighted average common shares outstanding | 19,532 | 19,500 |
Basic earnings per common share (in dollars per share) | $ 0.47 | $ 0.65 |
Income attributable to common stock | $ 9,153 | $ 12,650 |
Weighted average common shares outstanding | 19,532 | 19,500 |
Incremental shares from assumed conversions of options and restricted stock units | 34 | 26 |
Weighted average common and equivalent shares outstanding (in shares) | 19,566 | 19,526 |
Diluted earnings per common share (in dollars per share) | $ 0.47 | $ 0.65 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 180,020 | 110,660 |
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) | 26,556 | 22,305 |
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
May 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 69,360 | |||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 78 | $ 39 | ||
Unrecognized compensation cost related to unvested stock options | $ 548 | |||
Cost is expected to be recognized period | 2 years 2 months 12 days | |||
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 606 | 602 | ||
Unrecognized compensation cost related to non-vested RSAs | $ 6,800 | |||
Cost is expected to be recognized period | 3 years 4 months 24 days | |||
Directors | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 1 year | |||
Deferred compensation expense | $ 142 | $ 143 | ||
2012 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 0 | |||
2012 Plan | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards granted | 86,428 | 74,252 | ||
Number of restricted stock awards unvested | 279,540 | 293,717 | ||
2012 Plan | Restricted Stock Awards | 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 | 57,850 | 49,925 | ||
Vesting period (in years) | 5 years | 5 years | ||
2012 Plan | Restricted Stock Awards | Time-vested RSAs vest ratably over three years | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards granted | 28,578 | 24,327 | ||
Vesting period (in years) | 3 years | 3 years | ||
2012 Plan | Performance based RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards unvested | 0 | |||
LTI Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 196 | $ 170 | ||
Number of restricted stock awards granted | 26,556 | |||
Number of restricted stock awards unvested | 90,832 | 85,342 | ||
Unrecognized compensation cost related to non-vested RSAs | $ 2,000 | |||
Cost is expected to be recognized period | 2 years 7 months 6 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 | 17,943 | |||
Vesting period (in years) | 3 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 | 8,613 | |||
Vesting period (in years) | 3 years | |||
LTI Plan | NEOs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 69,360 | 63,267 | ||
Percentage premium over the grant date stock price | 10.00% | |||
Vesting period (in years) | 3 years | |||
Weighted-average grant-date fair value | $ 4.10 | $ 5.05 | ||
Method used | Black-Scholes option-pricing model |
STOCK BASED COMPENSATION PLAN_2
STOCK BASED COMPENSATION PLANS - Incentive Plans (Details) - shares | 1 Months Ended | 3 Months Ended |
May 31, 2019 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards granted and distributed (in shares) | 69,360 | |
Shares available for grant | 382,166 | |
2012 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards granted and distributed (in shares) | 0 | |
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 | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 3.03% | 2.86% |
Expected volatility rate | 23.11% | 23.80% |
Risk-free interest rate | 1.47% | 2.52% |
Expected option life | 6 years | 6 years |
STOCK BASED COMPENSATION PLAN_3
STOCK BASED COMPENSATION PLANS - Status of Company's Stock Options (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Number of Options | |
Outstanding, January 1, 2020 | shares | 110,660 |
Granted | shares | 69,360 |
Outstanding, March 31, 2020 | shares | 180,020 |
Vested and Exercisable, March 31,2020 | shares | 52,681 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, January 1, 2020 | $ / shares | $ 35.71 |
Granted | $ / shares | 34.87 |
Weighted Average Exercise Price, March 31, 2020 | $ / shares | 35.39 |
Vested and Exercisable, March 31, 2020 | $ / shares | $ 35.85 |
Weighted Average Remaining Contractual Life, Outstanding | 9 years |
Weighted Average Remaining Contractual Life, Vested and Exercisable | 8 years 3 months 18 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 0 |
Aggregate Intrinsic Value, Vested and Exercisable | $ | $ 0 |
STOCK BASED COMPENSATION PLAN_4
STOCK BASED COMPENSATION PLANS - Exercise Prices (Details) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options | 180,020 | 110,660 |
Weighted Average Exercise Price | $ 35.39 | $ 35.71 |
$35.11 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options | 69,360 | |
Weighted Average Exercise Price | $ 34.87 | |
35.77 | ||
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 - 2012 Plan - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Shares | ||
Unvested, January 1, 2020 | 293,717 | |
Granted | 86,428 | 74,252 |
Vested | (100,020) | |
Forfeited | (585) | |
Unvested, March 31, 2020 | 279,540 | |
Weighted Average Grant-Date Fair Value | ||
Unvested, January 1, 2020 | $ 30.37 | |
Granted | 31.65 | |
Vested | 28.87 | |
Forfeited | 32.12 | |
Unvested, March 31,2020 | $ 31.30 |
STOCK BASED COMPENSATION PLAN_6
STOCK BASED COMPENSATION PLANS - Restricted Stock Units (Details) - LTI Plan - Restricted Stock Units | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Shares | |
Unvested, January 1, 2020 | shares | 85,342 |
Granted | shares | 26,556 |
Reinvested dividends | shares | 663 |
Forfeited | shares | (6,623) |
Vested | shares | (15,106) |
Unvested, March 31, 2020 | shares | 90,832 |
Weighted Average Grant-Date Fair Value | |
Unvested, January 1, 2020 | $ / shares | $ 29.59 |
Granted | $ / shares | 32.13 |
Reinvested dividends | $ / shares | 29.59 |
Forfeited | $ / shares | 28.68 |
Vested | $ / shares | 25.24 |
Unvested, March 31,2020 | $ / shares | $ 31.12 |
STOCK BASED COMPENSATION PLAN_7
STOCK BASED COMPENSATION PLANS - Employee Stock Purchase Plan (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
May 31, 2018 | Mar. 31, 2020 | |
STOCK-BASED COMPENSATION PLANS. | ||
Common stock initially authorized for issuance under the ESPP, Shares | 1,000,000 | |
Maximum contribution from employees | $ 25,000 | |
Shares of common stock purchased under the ESPP | 0 | |
Expense recorded related to ESPP | $ 0 |
SECURITIES - Summary of Availab
SECURITIES - Summary of Available for Sale Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available for sale: | ||
Amortized Cost | $ 548,621 | $ 639,463 |
Gross Unrealized Gains | 10,557 | 4,225 |
Gross Unrealized Losses | (5,900) | (5,397) |
Estimated Fair Value | 553,278 | 638,291 |
U.S. Treasury securities | ||
Available for sale: | ||
Amortized Cost | 59,980 | 50,833 |
Gross Unrealized Gains | 19 | |
Gross Unrealized Losses | (11) | |
Estimated Fair Value | 59,999 | 50,822 |
U.S. GSE securities | ||
Available for sale: | ||
Amortized Cost | 5,000 | |
Gross Unrealized Losses | (5) | |
Estimated Fair Value | 4,995 | |
State and municipal obligations | ||
Available for sale: | ||
Amortized Cost | 37,233 | 34,303 |
Gross Unrealized Gains | 805 | 704 |
Gross Unrealized Losses | (92) | (43) |
Estimated Fair Value | 37,946 | 34,964 |
U.S. GSE residential mortgage-backed securities | ||
Available for sale: | ||
Amortized Cost | 80,136 | 84,550 |
Gross Unrealized Gains | 1,756 | 609 |
Gross Unrealized Losses | (238) | (468) |
Estimated Fair Value | 81,654 | 84,691 |
U.S. GSE residential collateralized mortgage obligations | ||
Available for sale: | ||
Amortized Cost | 200,029 | 278,149 |
Gross Unrealized Gains | 5,463 | 1,166 |
Gross Unrealized Losses | (1,464) | |
Estimated Fair Value | 205,492 | 277,851 |
U.S. GSE commercial mortgage-backed securities | ||
Available for sale: | ||
Amortized Cost | 16,683 | 13,656 |
Gross Unrealized Gains | 366 | 23 |
Gross Unrealized Losses | 0 | (70) |
Estimated Fair Value | 17,049 | 13,609 |
U.S. GSE commercial collateralized mortgage obligations | ||
Available for sale: | ||
Amortized Cost | 81,310 | 102,722 |
Gross Unrealized Gains | 2,148 | 1,723 |
Gross Unrealized Losses | (78) | (289) |
Estimated Fair Value | 83,380 | 104,156 |
Other asset backed securities | ||
Available for sale: | ||
Amortized Cost | 24,250 | 24,250 |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1,698) | (849) |
Estimated Fair Value | 22,552 | 23,401 |
Corporate bonds | ||
Available for sale: | ||
Amortized Cost | 49,000 | 46,000 |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (3,794) | (2,198) |
Estimated Fair Value | $ 45,206 | $ 43,802 |
SECURITIES - Summary of Held to
SECURITIES - Summary of Held to Maturity Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Held to maturity: | ||
Amortized Cost | $ 124,231 | $ 133,638 |
Gross Unrealized Gains | 3,432 | 1,731 |
Gross Unrealized Losses | (10) | (342) |
Estimated Fair Value | 127,653 | 135,027 |
State and municipal obligations | ||
Held to maturity: | ||
Amortized Cost | 34,046 | 41,008 |
Gross Unrealized Gains | 807 | 809 |
Estimated Fair Value | 34,853 | 41,817 |
U.S. GSE residential mortgage-backed securities | ||
Held to maturity: | ||
Amortized Cost | 7,737 | 8,142 |
Gross Unrealized Gains | 141 | 5 |
Gross Unrealized Losses | (54) | |
Estimated Fair Value | 7,878 | 8,093 |
U.S. GSE residential collateralized mortgage obligations | ||
Held to maturity: | ||
Amortized Cost | 38,076 | 39,936 |
Gross Unrealized Gains | 1,610 | 624 |
Gross Unrealized Losses | (62) | |
Estimated Fair Value | 39,686 | 40,498 |
U.S. GSE commercial mortgage-backed securities | ||
Held to maturity: | ||
Amortized Cost | 17,021 | 17,215 |
Gross Unrealized Gains | 503 | 102 |
Gross Unrealized Losses | (82) | |
Estimated Fair Value | 17,524 | 17,235 |
U.S. GSE commercial collateralized mortgage obligations | ||
Held to maturity: | ||
Amortized Cost | 27,351 | 27,337 |
Gross Unrealized Gains | 371 | 191 |
Gross Unrealized Losses | (10) | (144) |
Estimated Fair Value | $ 27,712 | $ 27,384 |
SECURITIES - Total Available fo
SECURITIES - Total Available for Sale and Held to Maturity Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Total securities | ||
Amortized Cost | $ 672,852 | $ 773,101 |
Gross Unrealized Gains | 13,989 | 5,956 |
Gross Unrealized Losses | (5,910) | (5,739) |
Total securities | $ 680,931 | $ 773,318 |
SECURITIES - Available for Sale
SECURITIES - Available for Sale Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available for sale: | ||
Less than 12 months, Estimated Fair Value | $ 34,521 | $ 175,474 |
Less than 12 months, Gross Unrealized Losses | (582) | (778) |
Greater than 12 months, Estimated Fair Value | 66,258 | 214,908 |
Greater than 12 months, Gross Unrealized Losses | (5,318) | (4,619) |
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 | |
Less than 12 months, Gross Unrealized Losses | 0 | |
Greater than 12 months, Estimated Fair Value | 4,995 | |
Greater than 12 months, Gross Unrealized Losses | (5) | |
State and municipal obligations | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 5,232 | 4,982 |
Less than 12 months, Gross Unrealized Losses | (92) | (42) |
Greater than 12 months, Estimated Fair Value | 0 | 76 |
Greater than 12 months, Gross Unrealized Losses | 0 | (1) |
U.S. GSE residential mortgage-backed securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 17,934 | 2,935 |
Less than 12 months, Gross Unrealized Losses | (162) | (30) |
Greater than 12 months, Estimated Fair Value | 4,219 | 39,617 |
Greater than 12 months, Gross Unrealized Losses | (76) | (438) |
U.S. GSE residential collateralized mortgage obligations | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 81,377 | |
Less than 12 months, Gross Unrealized Losses | (480) | |
Greater than 12 months, Estimated Fair Value | 93,403 | |
Greater than 12 months, Gross Unrealized Losses | (984) | |
U.S. GSE commercial mortgage-backed securities | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 6,648 | |
Less than 12 months, Gross Unrealized Losses | (70) | |
Greater than 12 months, Estimated Fair Value | 0 | |
Greater than 12 months, Gross Unrealized Losses | 0 | |
U.S. GSE commercial collateralized mortgage obligations | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 6,616 | 28,710 |
Less than 12 months, Gross Unrealized Losses | (67) | (145) |
Greater than 12 months, Estimated Fair Value | 2,020 | 9,614 |
Greater than 12 months, Gross Unrealized Losses | (11) | (144) |
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 | 22,552 | 23,401 |
Greater than 12 months, Gross Unrealized Losses | (1,698) | (849) |
Corporate bonds | ||
Available for sale: | ||
Less than 12 months, Estimated Fair Value | 4,739 | 0 |
Less than 12 months, Gross Unrealized Losses | (261) | 0 |
Greater than 12 months, Estimated Fair Value | 37,467 | 43,802 |
Greater than 12 months, Gross Unrealized Losses | $ (3,533) | $ (2,198) |
SECURITIES - Held to Maturity S
SECURITIES - Held to Maturity Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Held to maturity: | |
Less than 12 months, Estimated Fair Value | $ 19,788 |
Less than 12 months, Gross Unrealized losses | (74) |
Greater than 12 months, Estimated Fair Value | 22,707 |
Greater than 12 months, Gross Unrealized losses | (268) |
U.S. GSE residential mortgage-backed securities | |
Held to maturity: | |
Less than 12 months, Estimated Fair Value | 0 |
Less than 12 months, Gross Unrealized losses | 0 |
Greater than 12 months, Estimated Fair Value | 7,268 |
Greater than 12 months, Gross Unrealized losses | (54) |
U.S. GSE residential collateralized mortgage obligations | |
Held to maturity: | |
Less than 12 months, Estimated Fair Value | 6,750 |
Less than 12 months, Gross Unrealized losses | (17) |
Greater than 12 months, Estimated Fair Value | 6,105 |
Greater than 12 months, Gross Unrealized losses | (45) |
U.S. GSE commercial mortgage-backed securities | |
Held to maturity: | |
Less than 12 months, Estimated Fair Value | 0 |
Less than 12 months, Gross Unrealized losses | 0 |
Greater than 12 months, Estimated Fair Value | 5,034 |
Greater than 12 months, Gross Unrealized losses | (82) |
U.S. GSE commercial collateralized mortgage obligations | |
Held to maturity: | |
Less than 12 months, Estimated Fair Value | 13,038 |
Less than 12 months, Gross Unrealized losses | (57) |
Greater than 12 months, Estimated Fair Value | 4,300 |
Greater than 12 months, Gross Unrealized losses | $ (87) |
SECURITIES - Available for Sa_2
SECURITIES - Available for Sale Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost, Available for sale: | ||
Within one year | $ 61,121 | |
One to five years | 44,986 | |
Five to ten years | 58,330 | |
Beyond ten years | 384,184 | |
Total | 548,621 | $ 639,463 |
Estimated Fair Value, Available for sale: | ||
Within one year | 61,140 | |
One to five years | 44,668 | |
Five to ten years | 56,068 | |
Beyond ten years | 391,402 | |
Estimated Fair Value | 553,278 | 638,291 |
U.S. Treasury securities | ||
Amortized Cost, Available for sale: | ||
Total | 59,980 | 50,833 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 59,999 | 50,822 |
U.S. GSE securities | ||
Amortized Cost, Available for sale: | ||
Total | 5,000 | |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 4,995 | |
State and municipal obligations | ||
Amortized Cost, Available for sale: | ||
Total | 37,233 | 34,303 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 37,946 | 34,964 |
U.S. GSE residential mortgage-backed securities | ||
Amortized Cost, Available for sale: | ||
Total | 80,136 | 84,550 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 81,654 | 84,691 |
U.S. GSE residential collateralized mortgage obligations | ||
Amortized Cost, Available for sale: | ||
Total | 200,029 | 278,149 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 205,492 | 277,851 |
U.S. GSE commercial mortgage-backed securities | ||
Amortized Cost, Available for sale: | ||
Total | 16,683 | 13,656 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 17,049 | 13,609 |
U.S. GSE commercial collateralized mortgage obligations | ||
Amortized Cost, Available for sale: | ||
Total | 81,310 | 102,722 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 83,380 | 104,156 |
Other asset backed securities | ||
Amortized Cost, Available for sale: | ||
Total | 24,250 | 24,250 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | 22,552 | 23,401 |
Corporate bonds | ||
Amortized Cost, Available for sale: | ||
Total | 49,000 | 46,000 |
Estimated Fair Value, Available for sale: | ||
Estimated Fair Value | $ 45,206 | $ 43,802 |
SECURITIES - Held to Maturity I
SECURITIES - Held to Maturity Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost, Held to maturity: | ||
Within one year | $ 2,090 | |
One to five years | 27,816 | |
Five to ten years | 23,052 | |
Beyond ten years | 71,273 | |
Total | 124,231 | $ 133,638 |
Estimated Fair Value, Held to maturity: | ||
Within one year | 2,097 | |
One to five years | 28,373 | |
Five to ten years | 23,841 | |
Beyond ten years | 73,342 | |
Estimated Fair Value | 127,653 | 135,027 |
State and municipal obligations | ||
Amortized Cost, Held to maturity: | ||
Total | 34,046 | 41,008 |
Estimated Fair Value, Held to maturity: | ||
Estimated Fair Value | 34,853 | 41,817 |
U.S. GSE residential mortgage-backed securities | ||
Amortized Cost, Held to maturity: | ||
Total | 7,737 | 8,142 |
Estimated Fair Value, Held to maturity: | ||
Estimated Fair Value | 7,878 | 8,093 |
U.S. GSE residential collateralized mortgage obligations | ||
Amortized Cost, Held to maturity: | ||
Total | 38,076 | 39,936 |
Estimated Fair Value, Held to maturity: | ||
Estimated Fair Value | 39,686 | 40,498 |
U.S. GSE commercial mortgage-backed securities | ||
Amortized Cost, Held to maturity: | ||
Total | 17,021 | 17,215 |
Estimated Fair Value, Held to maturity: | ||
Estimated Fair Value | 17,524 | 17,235 |
U.S. GSE commercial collateralized mortgage obligations | ||
Amortized Cost, Held to maturity: | ||
Total | 27,351 | 27,337 |
Estimated Fair Value, Held to maturity: | ||
Estimated Fair Value | $ 27,712 | $ 27,384 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)item | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
OTTI, Sales and Calls, Pledged, Trading and Restricted Securities | |||
Non-accrual debt securities | $ 0 | ||
Accrued interest related to debt securities | $ 0 | ||
Number of securities in unrealized loss position | item | 0 | ||
Debt securities available for sale, allowance of credit losses | $ 0 | ||
Allowance for credit losses | $ 0 | ||
Guaranteed portion of student loan backed bonds | student loan backed bonds which are guaranteed by the U.S. Department of Education for 97% to 100% of principal. | ||
Credit support for student loan backed bonds description | the bonds have credit support of 3% to 5% | ||
Proceeds from sales of securities available for sale | $ 74,558 | $ 0 | |
Gross gains realized on sale of securities available for sale | 800 | ||
Gross losses realized on sale of securities available for sale | 800 | ||
Debt and Equity Securities, Gain (Loss) | (15) | ||
Proceeds from calls of securities | 5,300 | $ 7,900 | |
Fair value of securities pledged to secure public deposits and FHLB and FRB overnight borrowings | 402,600 | $ 402,200 | |
Amount owned in FHLB, ACBB and FRB stock | 26,354 | $ 32,879 | |
Other Assets | |||
OTTI, Sales and Calls, Pledged, Trading and Restricted Securities | |||
Accrued interest receivable on securities | $ 2,100 |
FAIR VALUE - Summary of Assets
FAIR VALUE - Summary of Assets and Liabilities measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets measured at fair value on recurring basis | ||
Available for sale securities | $ 553,278 | $ 638,291 |
U.S. Treasury securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 59,999 | 50,822 |
U.S. GSE securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 4,995 | |
State and municipal obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 37,946 | 34,964 |
U.S. GSE residential mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 81,654 | 84,691 |
U.S. GSE residential collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 205,492 | 277,851 |
U.S. GSE commercial mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 17,049 | 13,609 |
U.S. GSE commercial collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 83,380 | 104,156 |
Other asset backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 22,552 | 23,401 |
Corporate bonds | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 45,206 | 43,802 |
Carrying Amount | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 553,278 | 638,291 |
Financial Assets: Derivatives | 57,874 | 15,437 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 68,839 | 16,645 |
Fair Value | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 553,278 | 638,291 |
Financial Assets: Derivatives | 57,874 | 15,437 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 68,839 | 16,645 |
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 | 553,278 | 638,291 |
Financial Assets: Derivatives | 57,874 | 15,437 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 68,839 | 16,645 |
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 | 553,278 | 638,291 |
Recurring basis | Carrying Amount | U.S. Treasury securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 59,999 | 50,822 |
Recurring basis | Carrying Amount | U.S. GSE securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 4,995 | |
Recurring basis | Carrying Amount | State and municipal obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 37,946 | 34,964 |
Recurring basis | Carrying Amount | U.S. GSE residential mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 81,654 | 84,691 |
Recurring basis | Carrying Amount | U.S. GSE residential collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 205,492 | 277,851 |
Recurring basis | Carrying Amount | U.S. GSE commercial mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 17,049 | 13,609 |
Recurring basis | Carrying Amount | U.S. GSE commercial collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 83,380 | 104,156 |
Recurring basis | Carrying Amount | Other asset backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 22,552 | 23,401 |
Recurring basis | Carrying Amount | Corporate bonds | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 45,206 | 43,802 |
Recurring basis | Carrying Amount | Derivatives | ||
Assets measured at fair value on recurring basis | ||
Financial Assets: Derivatives | 57,874 | 15,437 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | 68,839 | 16,645 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 553,278 | 638,291 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 59,999 | 50,822 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 4,995 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 37,946 | 34,964 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE residential mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 81,654 | 84,691 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE residential collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 205,492 | 277,851 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE commercial mortgage-backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 17,049 | 13,609 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. GSE commercial collateralized mortgage obligations | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 83,380 | 104,156 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Other asset backed securities | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 22,552 | 23,401 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Assets measured at fair value on recurring basis | ||
Available for sale securities | 45,206 | 43,802 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivatives | ||
Assets measured at fair value on recurring basis | ||
Financial Assets: Derivatives | 57,874 | 15,437 |
Financial Liabilities: | ||
Financial liabilities: Derivatives | $ 68,839 | $ 16,645 |
FAIR VALUE - Summary of Asset_2
FAIR VALUE - Summary of Assets and Liabilities measured on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Assets measured at fair value on non-recurring basis | |||
Other real estate owned | $ 0 | $ 0 | |
Carrying Amount | |||
Assets measured at fair value on non-recurring basis | |||
Loans held for sale | 12,643 | 12,643 | $ 12,600 |
Fair Value | |||
Assets measured at fair value on non-recurring basis | |||
Loans held for sale | 12,643 | 12,643 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Assets measured at fair value on non-recurring basis | |||
Loans held for sale | 0 | ||
Significant Other Observable Inputs (Level 2) | |||
Assets measured at fair value on non-recurring basis | |||
Loans held for sale | 0 | ||
Significant Unobservable Inputs (Level 3) | |||
Assets measured at fair value on non-recurring basis | |||
Loans held for sale | 12,643 | 12,643 | |
Non-recurring basis | Carrying Amount | |||
Assets measured at fair value on non-recurring basis | |||
Loans held for sale | 12,643 | 12,643 | |
Collateral dependent loans | 2,902 | ||
Impaired loans | 6,981 | ||
Non-recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Assets measured at fair value on non-recurring basis | |||
Collateral dependent loans | 0 | ||
Impaired loans | 0 | ||
Non-recurring basis | Significant Other Observable Inputs (Level 2) | |||
Assets measured at fair value on non-recurring basis | |||
Collateral dependent loans | 0 | ||
Impaired loans | 0 | ||
Non-recurring basis | Significant Unobservable Inputs (Level 3) | |||
Assets measured at fair value on non-recurring basis | |||
Loans held for sale | 12,643 | 12,643 | |
Collateral dependent loans | $ 2,902 | ||
Impaired loans | $ 6,981 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Additional provision for loan losses | $ 5,000 | $ 600 | ||
Assets measured at fair value on non-recurring basis | ||||
Outstanding balance of impaired loans with an allowance recorded | $ 11,657 | |||
Valuation allowance on impaired loans | 4,676 | |||
Other Real Estate | 0 | 0 | ||
Non-recurring basis | ||||
Assets measured at fair value on non-recurring basis | ||||
Outstanding balance of impaired loans with an allowance recorded | 7,300 | 11,700 | ||
Valuation allowance on impaired loans | 4,400 | 4,700 | ||
Carrying Amount | ||||
Assets measured at fair value on non-recurring basis | ||||
Loans held for sale | 12,643 | 12,643 | $ 12,600 | |
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 | |||
Collateral dependent loans | 2,902 | |||
Assets measured at fair value on non-recurring basis | ||||
Valuation allowance on impaired loans | 0 | 0 | ||
Loans held for sale | $ 12,643 | $ 12,643 |
FAIR VALUE - Summary of Estimat
FAIR VALUE - Summary of Estimated Fair Values and Carrying Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Financial assets: | |||
Cash and due from banks | $ 61,352 | $ 77,693 | |
Interest-bearing deposits with banks | 172,830 | 39,501 | |
Securities available for sale | 553,278 | 638,291 | |
Securities held to maturity | 127,653 | 135,027 | |
Accrued interest receivable | 11,070 | 10,908 | |
Carrying Amount | |||
Financial assets: | |||
Cash and due from banks | 61,352 | 77,693 | |
Interest-bearing deposits with banks | 172,830 | 39,501 | |
Securities available for sale | 553,278 | 638,291 | |
Securities restricted | 26,354 | 32,879 | |
Securities held to maturity | 124,231 | 133,638 | |
Loans held for sale | 12,643 | 12,643 | $ 12,600 |
Loans, net | 3,722,915 | 3,647,499 | |
Derivatives | 57,874 | 15,437 | |
Accrued interest receivable | 11,070 | 10,908 | |
Financial liabilities: | |||
Certificates of deposit | 310,077 | 307,977 | |
Demand and other deposits | 3,745,658 | 3,506,670 | |
FHLB advances | 290,000 | 435,000 | |
Repurchase agreements | 1,195 | 999 | |
Subordinated debentures | 78,955 | 78,920 | |
Derivatives | 68,839 | 16,645 | |
Accrued interest payable | 387 | 1,467 | |
Fair Value | |||
Financial assets: | |||
Cash and due from banks | 61,352 | 77,693 | |
Interest-bearing deposits with banks | 172,830 | 39,501 | |
Securities available for sale | 553,278 | 638,291 | |
Securities held to maturity | 127,653 | 135,027 | |
Loans held for sale | 12,643 | 12,643 | |
Loans, net | 3,755,669 | 3,685,770 | |
Derivatives | 57,874 | 15,437 | |
Accrued interest receivable | 11,070 | 10,908 | |
Financial liabilities: | |||
Certificates of deposit | 312,965 | 308,660 | |
Demand and other deposits | 3,745,658 | 3,506,670 | |
FHLB advances | 300,760 | 434,622 | |
Repurchase agreements | 1,195 | 999 | |
Subordinated debentures | 89,678 | 81,010 | |
Derivatives | 68,839 | 16,645 | |
Accrued interest payable | 387 | 1,467 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Financial assets: | |||
Cash and due from banks | 61,352 | 77,693 | |
Interest-bearing deposits with banks | 172,830 | 39,501 | |
Securities available for sale | 0 | 0 | |
Securities held to maturity | 0 | 0 | |
Loans held for sale | 0 | ||
Loans, net | 0 | 0 | |
Derivatives | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Financial liabilities: | |||
Certificates of deposit | 0 | 0 | |
Demand and other deposits | 3,745,658 | 3,506,670 | |
FHLB advances | 0 | 195,000 | |
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 | 553,278 | 638,291 | |
Securities held to maturity | 127,653 | 135,027 | |
Loans held for sale | 0 | ||
Loans, net | 0 | 0 | |
Derivatives | 57,874 | 15,437 | |
Accrued interest receivable | 2,105 | 2,181 | |
Financial liabilities: | |||
Certificates of deposit | 312,965 | 308,660 | |
Demand and other deposits | 0 | 0 | |
FHLB advances | 300,760 | 239,622 | |
Repurchase agreements | 1,195 | 999 | |
Subordinated debentures | 89,678 | 81,010 | |
Derivatives | 68,839 | 16,645 | |
Accrued interest payable | 387 | 1,467 | |
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 | 12,643 | |
Loans, net | 3,755,669 | 3,685,770 | |
Derivatives | 0 | 0 | |
Accrued interest receivable | 8,965 | 8,727 | |
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 (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020USD ($)family | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Classifications of loans | |||||
Total loans | $ 3,754,203 | $ 3,672,596 | |||
Net deferred loan costs and fees | 7,927 | 7,689 | |||
Total loans held for investment | 3,762,130 | 3,680,285 | |||
Allowance for credit losses | (39,215) | (32,786) | $ (31,784) | $ (31,418) | |
Loans, net | 3,722,915 | 3,647,499 | |||
Accrued interest receivable | 11,070 | 10,908 | |||
Other Assets | |||||
Classifications of loans | |||||
Accrued interest receivable | 9,000 | 8,700 | |||
Commercial real estate occupied: | |||||
Classifications of loans | |||||
Total loans | 1,565,687 | ||||
Allowance for credit losses | (12,150) | ||||
Mortgage loan reclassified from loans held for investment to loans held for sale | 12,600 | 12,600 | |||
Loans held for investment to loans held for sale and written down | $ 16,300 | ||||
Mortgage loan, charge-off recognized | 3,700 | ||||
Commercial real estate occupied: | Mortgage loans | |||||
Classifications of loans | |||||
Allowance for credit losses | (4,968) | (11,099) | (10,792) | ||
Lending Risk | |||||
Loan amount beyond which annual financial information is sought | 1,000 | ||||
Owner | |||||
Classifications of loans | |||||
Total loans | 529,877 | 531,088 | |||
Non-owner | |||||
Classifications of loans | |||||
Total loans | 1,053,901 | 1,034,599 | |||
Multi-family | |||||
Classifications of loans | |||||
Total loans | 812,174 | ||||
Allowance for credit losses | (4,829) | ||||
Multi-family | Mortgage loans | |||||
Classifications of loans | |||||
Total loans | 800,556 | 812,174 | |||
Allowance for credit losses | $ (1,323) | (2,557) | (2,566) | ||
Lending Risk | |||||
Number of families having income producing residential investment properties | family | 5 | ||||
Residential real estate | |||||
Classifications of loans | |||||
Total loans | $ 485,492 | 493,144 | |||
Allowance for credit losses | (1,882) | ||||
Residential real estate | Mortgage loans | |||||
Classifications of loans | |||||
Total loans | 485,492 | 493,144 | |||
Allowance for credit losses | (4,025) | (3,374) | (3,935) | ||
Commercial, industrial and agricultural | |||||
Classifications of loans | |||||
Total loans | 758,683 | 679,444 | |||
Allowance for credit losses | (24,545) | (12,583) | (13,073) | (12,722) | |
Real estate construction and land loans | |||||
Classifications of loans | |||||
Total loans | 100,643 | 97,311 | |||
Allowance for credit losses | (3,182) | (1,066) | (1,526) | (1,297) | |
Installment/consumer loans | |||||
Classifications of loans | |||||
Total loans | 25,051 | 24,836 | |||
Allowance for credit losses | $ (1,172) | (276) | $ (155) | $ (106) | |
Maximum | Multi-family | Mortgage loans | |||||
Lending Risk | |||||
Loan-to-value ratio (as a percent) | 75.00% | ||||
Home equity | Minimum | Residential real estate | Mortgage loans | |||||
Lending Risk | |||||
Loan-to-value ratio (as a percent) | 80.00% | ||||
Carrying Amount | |||||
Classifications of loans | |||||
Accrued interest receivable | $ 11,070 | 10,908 | |||
Loans held for sale | $ 12,643 | $ 12,600 | $ 12,643 |
LOANS - Categorized by Internal
LOANS - Categorized by Internally Assigned Risk Grades (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans by class categorized by internally assigned risk grades | ||
Total loans | $ 3,754,203 | $ 3,672,596 |
2020 | 159,592 | |
2019 | 809,998 | |
2018 | 412,654 | |
2017 | 604,642 | |
2016 | 346,064 | |
2015 and prior | 883,957 | |
Revolving | 506,253 | |
Revolving Term | 31,043 | |
Total | 3,754,203 | |
Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 3,584,290 | |
Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 47,003 | |
Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 41,303 | |
Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Commercial real estate occupied: | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,565,687 | |
Commercial real estate occupied: | Mortgage loans | Owner | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 529,877 | 531,088 |
2020 | 33,372 | |
2019 | 95,036 | |
2018 | 60,460 | |
2017 | 90,764 | |
2016 | 33,171 | |
2015 and prior | 217,074 | |
Total | 529,877 | |
Commercial real estate occupied: | Mortgage loans | Owner | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 511,444 | |
2020 | 33,372 | |
2019 | 93,641 | |
2018 | 52,959 | |
2017 | 74,288 | |
2016 | 28,317 | |
2015 and prior | 183,452 | |
Total | 466,029 | |
Commercial real estate occupied: | Mortgage loans | Owner | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
2019 | 1,395 | |
2018 | 6,894 | |
2017 | 5,502 | |
2016 | 1,277 | |
2015 and prior | 29,560 | |
Total | 44,628 | |
Commercial real estate occupied: | Mortgage loans | Owner | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 18,426 | |
2017 | 10,974 | |
2016 | 3,577 | |
2015 and prior | 3,748 | |
Total | 18,299 | |
Commercial real estate occupied: | Mortgage loans | Owner | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,218 | |
2018 | 607 | |
2015 and prior | 314 | |
Total | 921 | |
Commercial real estate occupied: | Mortgage loans | Owner | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Commercial real estate occupied: | Mortgage loans | Non-owner | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,053,901 | 1,034,599 |
2020 | 39,000 | |
2019 | 259,073 | |
2018 | 134,628 | |
2017 | 209,110 | |
2016 | 92,214 | |
2015 and prior | 319,876 | |
Total | 1,053,901 | |
Commercial real estate occupied: | Mortgage loans | Non-owner | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,022,208 | |
2020 | 39,000 | |
2019 | 255,073 | |
2018 | 131,679 | |
2017 | 197,225 | |
2016 | 83,651 | |
2015 and prior | 302,905 | |
Total | 1,009,533 | |
Commercial real estate occupied: | Mortgage loans | Non-owner | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
2019 | 4,000 | |
2018 | 2,949 | |
2017 | 2,367 | |
2016 | 8,563 | |
2015 and prior | 15,560 | |
Total | 33,439 | |
Commercial real estate occupied: | Mortgage loans | Non-owner | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
2015 and prior | 291 | |
Total | 291 | |
Commercial real estate occupied: | Mortgage loans | Non-owner | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 12,391 | |
2017 | 9,518 | |
2015 and prior | 1,120 | |
Total | 10,638 | |
Commercial real estate occupied: | Mortgage loans | Non-owner | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Multi-family | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 812,174 | |
2020 | 38,911 | |
2019 | 293,962 | |
2018 | 41,294 | |
2017 | 125,232 | |
2016 | 162,103 | |
2015 and prior | 139,054 | |
Total | 800,556 | |
Multi-family | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
2020 | 38,911 | |
2019 | 293,962 | |
2018 | 41,294 | |
2017 | 116,995 | |
2016 | 146,302 | |
2015 and prior | 125,591 | |
Total | 763,055 | |
Multi-family | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
2017 | 8,237 | |
2016 | 15,801 | |
2015 and prior | 13,063 | |
Total | 37,101 | |
Multi-family | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
2015 and prior | 400 | |
Total | 400 | |
Multi-family | Mortgage loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 800,556 | 812,174 |
Multi-family | Mortgage loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 811,770 | |
Multi-family | Mortgage loans | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 404 | |
Multi-family | Mortgage loans | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Multi-family | Mortgage loans | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Residential real estate | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 485,492 | 493,144 |
2020 | 8,964 | |
2019 | 35,836 | |
2018 | 84,981 | |
2017 | 110,196 | |
2016 | 30,066 | |
2015 and prior | 148,495 | |
Revolving | 55,943 | |
Revolving Term | 11,011 | |
Total | 485,492 | |
Residential real estate | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 475,949 | |
2020 | 8,964 | |
2019 | 34,254 | |
2018 | 83,491 | |
2017 | 109,387 | |
2016 | 29,478 | |
2015 and prior | 133,888 | |
Revolving | 55,145 | |
Revolving Term | 8,085 | |
Total | 462,692 | |
Residential real estate | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
2019 | 465 | |
2018 | 412 | |
2017 | 326 | |
2016 | 588 | |
2015 and prior | 2,566 | |
Revolving | 399 | |
Revolving Term | 1,446 | |
Total | 6,202 | |
Residential real estate | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 12,400 | |
2019 | 783 | |
2018 | 770 | |
2015 and prior | 9,883 | |
Revolving | 399 | |
Revolving Term | 777 | |
Total | 12,612 | |
Residential real estate | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 4,795 | |
2019 | 334 | |
2018 | 308 | |
2017 | 483 | |
2015 and prior | 2,158 | |
Revolving Term | 703 | |
Total | 3,986 | |
Residential real estate | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Residential real estate | Mortgage loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 485,492 | 493,144 |
Commercial, industrial and agricultural | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 758,683 | 679,444 |
2020 | 32,089 | |
2019 | 83,472 | |
2018 | 64,768 | |
2017 | 48,789 | |
2016 | 28,496 | |
2015 and prior | 53,416 | |
Revolving | 428,976 | |
Revolving Term | 18,677 | |
Total | 758,683 | |
Commercial, industrial and agricultural | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 643,413 | |
2020 | 30,490 | |
2019 | 80,671 | |
2018 | 48,302 | |
2017 | 39,169 | |
2016 | 27,080 | |
2015 and prior | 40,486 | |
Revolving | 385,474 | |
Revolving Term | 7,061 | |
Total | 658,733 | |
Commercial, industrial and agricultural | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
2020 | 1,599 | |
2019 | 2,417 | |
2018 | 15,041 | |
2017 | 4,043 | |
2016 | 812 | |
2015 and prior | 2,827 | |
Revolving | 34,752 | |
Revolving Term | 3,440 | |
Total | 64,931 | |
Commercial, industrial and agricultural | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 15,670 | |
2019 | 384 | |
2018 | 813 | |
2017 | 590 | |
2016 | 604 | |
2015 and prior | 573 | |
Revolving | 7,752 | |
Revolving Term | 3,507 | |
Total | 14,223 | |
Commercial, industrial and agricultural | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 20,361 | |
2018 | 612 | |
2017 | 4,987 | |
2015 and prior | 9,530 | |
Revolving | 998 | |
Revolving Term | 4,669 | |
Total | 20,796 | |
Commercial, industrial and agricultural | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Real estate construction and land loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 100,643 | 97,311 |
2020 | 7,153 | |
2019 | 41,664 | |
2018 | 26,269 | |
2017 | 20,390 | |
2015 and prior | 5,167 | |
Total | 100,643 | |
Real estate construction and land loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 95,530 | |
2020 | 7,153 | |
2019 | 41,664 | |
2018 | 23,069 | |
2017 | 17,292 | |
2015 and prior | 4,763 | |
Total | 93,941 | |
Real estate construction and land loans | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
2018 | 3,200 | |
2017 | 1,728 | |
2015 and prior | 283 | |
Total | 5,211 | |
Real estate construction and land loans | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Real estate construction and land loans | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 1,781 | |
2017 | 1,370 | |
2015 and prior | 121 | |
Total | 1,491 | |
Real estate construction and land loans | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 0 | |
Installment/consumer loans | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 25,051 | 24,836 |
2020 | 103 | |
2019 | 955 | |
2018 | 254 | |
2017 | 161 | |
2016 | 14 | |
2015 and prior | 875 | |
Revolving | 21,334 | |
Revolving Term | 1,355 | |
Total | 25,051 | |
Installment/consumer loans | Pass | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 23,976 | |
2020 | 103 | |
2019 | 955 | |
2018 | 254 | |
2017 | 145 | |
2016 | 14 | |
2015 and prior | 875 | |
Revolving | 21,334 | |
Revolving Term | 460 | |
Total | 24,140 | |
Installment/consumer loans | Watch | ||
Loans by class categorized by internally assigned risk grades | ||
Revolving Term | 45 | |
Total | 45 | |
Installment/consumer loans | Special Mention | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 103 | |
Revolving Term | 101 | |
Total | 101 | |
Installment/consumer loans | Substandard | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | 757 | |
2017 | 16 | |
Revolving Term | 749 | |
Total | $ 765 | |
Installment/consumer loans | Doubtful | ||
Loans by class categorized by internally assigned risk grades | ||
Total loans | $ 0 |
LOANS - Past Due and Nonaccrual
LOANS - Past Due and Nonaccrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | $ 343 | $ 343 |
Nonaccrual Including 90 Days or More Past Due | 4,609 | 4,369 |
Total Past Due and Nonaccrual | 17,893 | 11,078 |
Current | 3,736,310 | 3,661,518 |
Total Loans | 3,754,203 | 3,672,596 |
Interest earned on non-accrual loans | 0 | |
Accrued interest on non-accrual loans | 15 | |
30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 9,097 | 4,465 |
60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 3,844 | 1,901 |
Commercial real estate occupied: | ||
Past Due and Nonaccrual Loans | ||
Total Loans | 1,565,687 | |
Commercial real estate occupied: | Mortgage loans | Owner | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 215 | 225 |
Total Past Due and Nonaccrual | 801 | 1,575 |
Current | 529,076 | 529,513 |
Total Loans | 529,877 | 531,088 |
Commercial real estate occupied: | Mortgage loans | Owner | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 586 | 917 |
Commercial real estate occupied: | Mortgage loans | Owner | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 0 | 433 |
Commercial real estate occupied: | Mortgage loans | Non-owner | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 512 | 512 |
Total Past Due and Nonaccrual | 1,886 | 610 |
Current | 1,052,015 | 1,033,989 |
Total Loans | 1,053,901 | 1,034,599 |
Commercial real estate occupied: | Mortgage loans | Non-owner | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 603 | 98 |
Commercial real estate occupied: | Mortgage loans | Non-owner | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 771 | 0 |
Multi-family | ||
Past Due and Nonaccrual Loans | ||
Total Loans | 812,174 | |
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 | 800,556 | 812,174 |
Total Loans | 800,556 | 812,174 |
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 | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 343 | 343 |
Nonaccrual Including 90 Days or More Past Due | 2,433 | 2,743 |
Total Past Due and Nonaccrual | 8,923 | 6,886 |
Current | 476,569 | 486,258 |
Total Loans | 485,492 | 493,144 |
Residential real estate | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 6,067 | 3,053 |
Residential real estate | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 80 | 747 |
Residential real estate | Mortgage loans | ||
Past Due and Nonaccrual Loans | ||
Total Loans | 485,492 | 493,144 |
Commercial, industrial and agricultural | ||
Past Due and Nonaccrual Loans | ||
>90 Days Past Due and Accruing | 0 | 0 |
Nonaccrual Including 90 Days or More Past Due | 1,312 | 736 |
Total Past Due and Nonaccrual | 4,657 | 1,730 |
Current | 754,026 | 677,714 |
Total Loans | 758,683 | 679,444 |
Commercial, industrial and agricultural | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 1,727 | 273 |
Commercial, industrial and agricultural | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 1,618 | 721 |
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 | 121 | 123 |
Total Past Due and Nonaccrual | 1,491 | 123 |
Current | 99,152 | 97,188 |
Total Loans | 100,643 | 97,311 |
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 | 1,370 | 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 | 16 | 30 |
Total Past Due and Nonaccrual | 135 | 154 |
Current | 24,916 | 24,682 |
Total Loans | 25,051 | 24,836 |
Installment/consumer loans | 30-59 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | 114 | 124 |
Installment/consumer loans | 60-89 Days Past Due | ||
Past Due and Nonaccrual Loans | ||
Total Past Due and Nonaccrual | $ 5 | $ 0 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)loan | Mar. 31, 2019USD ($)loan | Dec. 31, 2019USD ($) | |
Troubled Debt Restructurings | |||
Number of Loans | loan | 1 | 3 | |
Pre-Modification Outstanding Recorded Investment | $ 1,037,000 | $ 3,209,000 | |
Post-Modification Outstanding Recorded Investment | $ 1,037,000 | $ 3,209,000 | |
Period of modified contractually past due loans to be considered as payment default | 30 days | ||
Number of loan charge-offs related to TDRs | loan | 1 | ||
Charge offs relating to TDRs | $ 0 | $ 6,000 | |
Number of loans modified as TDRs for which there was a payment default within twelve months following the modification | loan | 0 | 1 | |
Nonaccrual TDRs loans | $ 635,000 | $ 405,000 | |
Amount of current and performing TDR loans | 26,900,000 | $ 26,300,000 | |
Post-Modification of other than TDRs, recorded investment | $ 26,800,000 | ||
Percentage of loan modifications | 10.00% | ||
Commercial, industrial and agricultural | |||
Troubled Debt Restructurings | |||
Number of Loans | loan | 1 | 3 | |
Pre-Modification Outstanding Recorded Investment | $ 1,037,000 | $ 3,209,000 | |
Post-Modification Outstanding Recorded Investment | $ 1,037,000 | $ 3,209,000 |
LOANS - Collateral Dependent Lo
LOANS - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated loans | $ 26,983 | |
Individually evaluated loans, related allowance for credit losses | 4,676 | |
Commercial, industrial and agricultural | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated loans | 21,014 | |
Individually evaluated loans, related allowance for credit losses | $ 4,676 | |
Commercial, industrial and agricultural | Collateral Dependent Loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated loans | $ 7,300 | |
Individually evaluated loans, related allowance for credit losses | $ 4,400 |
LOANS - Impaired Loans (prior t
LOANS - Impaired Loans (prior to the adoption of Topic 326) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
Individually impaired loans | $ 14,310 | $ 27,000 | |
Impaired loans | $ 1,037 | $ 3,209 | |
Other Impaired Performing Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans | $ 1,100 |
LOANS - Impaired Loans (Details
LOANS - Impaired Loans (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)loan | Mar. 31, 2019USD ($)loan | Dec. 31, 2019USD ($) | |
Impaired loans | |||
Post-Modification Outstanding Recorded Investment | $ 1,037 | $ 3,209 | |
Recorded Investment | |||
With no related allowance recorded | $ 15,326 | ||
With an allowance recorded | 11,657 | ||
Total impaired loans | 26,983 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 15,354 | ||
With an allowance recorded | 11,663 | ||
Total impaired loans | 27,017 | ||
Related Allocated Allowance | |||
With an allowance recorded | 4,676 | ||
Total impaired loans | 4,676 | ||
Average Recorded Investment | |||
With no related allowance recorded | 10,368 | ||
With an allowance recorded | 3,942 | ||
Average recorded investment in impaired loans | 14,310 | 27,000 | |
Interest Income Recognized | |||
With no related allowance recorded | 126 | ||
With an allowance recorded | 36 | ||
Total impaired loans | $ 162 | ||
Other real estate | $ 0 | 0 | |
Number of loans modified as TDRs for which there was a payment default within twelve months following the modification | loan | 0 | 1 | |
Commercial real estate occupied: | Owner | |||
Recorded Investment | |||
With no related allowance recorded | 3,379 | ||
Total impaired loans | 3,379 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 3,401 | ||
Total impaired loans | 3,401 | ||
Average Recorded Investment | |||
With no related allowance recorded | $ 483 | ||
Average recorded investment in impaired loans | 483 | ||
Commercial real estate occupied: | Non-owner | |||
Recorded Investment | |||
With no related allowance recorded | 2,296 | ||
Total impaired loans | 2,296 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 2,296 | ||
Total impaired loans | 2,296 | ||
Average Recorded Investment | |||
With no related allowance recorded | 2,786 | ||
Average recorded investment in impaired loans | 2,786 | ||
Interest Income Recognized | |||
With no related allowance recorded | 25 | ||
Total impaired loans | 25 | ||
Residential real estate | Home equity | |||
Recorded Investment | |||
With no related allowance recorded | 294 | ||
Total impaired loans | 294 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 300 | ||
Total impaired loans | 300 | ||
Commercial, industrial and agricultural | |||
Impaired loans | |||
Post-Modification Outstanding Recorded Investment | $ 1,037 | 3,209 | |
Commercial, industrial and agricultural | Secured | |||
Recorded Investment | |||
With no related allowance recorded | 494 | ||
With an allowance recorded | 9,612 | ||
Total impaired loans | 10,106 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 494 | ||
With an allowance recorded | 9,612 | ||
Total impaired loans | 10,106 | ||
Related Allocated Allowance | |||
With an allowance recorded | 3,435 | ||
Total impaired loans | 3,435 | ||
Average Recorded Investment | |||
With no related allowance recorded | 1,482 | ||
With an allowance recorded | 3,942 | ||
Average recorded investment in impaired loans | 5,424 | ||
Interest Income Recognized | |||
With no related allowance recorded | 16 | ||
With an allowance recorded | 36 | ||
Total impaired loans | 52 | ||
Commercial, industrial and agricultural | Unsecured | |||
Recorded Investment | |||
With no related allowance recorded | 8,863 | ||
With an allowance recorded | 2,045 | ||
Total impaired loans | 10,908 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 8,863 | ||
With an allowance recorded | 2,051 | ||
Total impaired loans | 10,914 | ||
Related Allocated Allowance | |||
With an allowance recorded | 1,241 | ||
Total impaired loans | 1,241 | ||
Average Recorded Investment | |||
With no related allowance recorded | 5,617 | ||
Average recorded investment in impaired loans | 5,617 | ||
Interest Income Recognized | |||
With no related allowance recorded | 85 | ||
Total impaired loans | $ 85 | ||
Other Impaired Performing Loans | |||
Impaired loans | |||
Post-Modification Outstanding Recorded Investment | 1,100 | ||
Non-recurring basis | |||
Recorded Investment | |||
With an allowance recorded | 7,300 | 11,700 | |
Related Allocated Allowance | |||
With an allowance recorded | 4,400 | 4,700 | |
Non-recurring basis | Carrying Amount | |||
Related Allocated Allowance | |||
With an allowance recorded | 0 | 0 | |
Non-recurring basis | Carrying Amount | Other real estate owned | |||
Interest Income Recognized | |||
Other real estate | $ 0 | $ 0 |
LOANS - Changes in the Allowanc
LOANS - Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Allowance for Loan Losses | ||
Beginning balance | $ 32,786 | $ 31,418 |
Charge-offs | (216) | (246) |
Recoveries | 20 | 12 |
Provision for credit losses | 5,000 | 600 |
Ending balance | 39,215 | 31,784 |
Prior to adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Beginning balance | 32,786 | |
Impact of adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Ending balance | 1,625 | |
Commercial real estate occupied: | ||
Allowance for Loan Losses | ||
Beginning balance | 12,150 | |
Commercial real estate occupied: | Mortgage loans | ||
Allowance for Loan Losses | ||
Beginning balance | 10,792 | |
Charge-offs | (1) | |
Provision for credit losses | 531 | 307 |
Ending balance | 4,968 | 11,099 |
Commercial real estate occupied: | Mortgage loans | Prior to adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Beginning balance | 12,150 | |
Commercial real estate occupied: | Mortgage loans | Impact of adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Ending balance | (7,712) | |
Multi-family | ||
Allowance for Loan Losses | ||
Beginning balance | 4,829 | |
Multi-family | Mortgage loans | ||
Allowance for Loan Losses | ||
Beginning balance | 2,566 | |
Provision for credit losses | 83 | (9) |
Ending balance | 1,323 | 2,557 |
Multi-family | Mortgage loans | Prior to adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Beginning balance | 4,829 | |
Multi-family | Mortgage loans | Impact of adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Ending balance | (3,589) | |
Residential real estate | ||
Allowance for Loan Losses | ||
Beginning balance | 1,882 | |
Residential real estate | Mortgage loans | ||
Allowance for Loan Losses | ||
Beginning balance | 3,935 | |
Recoveries | 1 | 1 |
Provision for credit losses | (40) | (562) |
Ending balance | 4,025 | 3,374 |
Residential real estate | Mortgage loans | Prior to adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Beginning balance | 1,882 | |
Residential real estate | Mortgage loans | Impact of adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Ending balance | 2,182 | |
Commercial, industrial and agricultural | ||
Allowance for Loan Losses | ||
Beginning balance | 12,583 | 12,722 |
Charge-offs | (215) | (242) |
Recoveries | 19 | 11 |
Provision for credit losses | 3,459 | 582 |
Ending balance | 24,545 | 13,073 |
Commercial, industrial and agricultural | Prior to adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Beginning balance | 12,583 | |
Commercial, industrial and agricultural | Impact of adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Ending balance | 8,699 | |
Real estate construction and land loans | ||
Allowance for Loan Losses | ||
Beginning balance | 1,066 | 1,297 |
Provision for credit losses | 842 | 229 |
Ending balance | 3,182 | 1,526 |
Real estate construction and land loans | Prior to adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Beginning balance | 1,066 | |
Real estate construction and land loans | Impact of adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Ending balance | 1,274 | |
Installment/consumer loans | ||
Allowance for Loan Losses | ||
Beginning balance | 276 | 106 |
Charge-offs | (4) | |
Provision for credit losses | 125 | 53 |
Ending balance | 1,172 | $ 155 |
Installment/consumer loans | Prior to adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Beginning balance | 276 | |
Installment/consumer loans | Impact of adoption | ASU 2016-13 | ||
Allowance for Loan Losses | ||
Ending balance | $ 771 |
LOANS - Balances in Allowance f
LOANS - Balances in Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | $ 4,676 | |||
Collectively evaluated for impairment | 28,110 | |||
Total Allowance for Loan Losses | $ 39,215 | 32,786 | $ 31,784 | $ 31,418 |
Loans: | ||||
Individually evaluated for impairment | 26,983 | |||
Collectively evaluated for impairment | 3,645,270 | |||
Loans acquired with deteriorated credit quality | 343 | |||
Total Loans | 3,754,203 | 3,672,596 | ||
Commercial real estate occupied: | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 12,150 | |||
Total Allowance for Loan Losses | 12,150 | |||
Loans: | ||||
Individually evaluated for impairment | 5,675 | |||
Collectively evaluated for impairment | 1,560,012 | |||
Total Loans | 1,565,687 | |||
Commercial real estate occupied: | Mortgage loans | ||||
Allowance for Loan Losses: | ||||
Total Allowance for Loan Losses | 4,968 | 11,099 | 10,792 | |
Multi-family | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 4,829 | |||
Total Allowance for Loan Losses | 4,829 | |||
Loans: | ||||
Collectively evaluated for impairment | 812,174 | |||
Total Loans | 812,174 | |||
Multi-family | Mortgage loans | ||||
Allowance for Loan Losses: | ||||
Total Allowance for Loan Losses | 1,323 | 2,557 | 2,566 | |
Loans: | ||||
Total Loans | 800,556 | 812,174 | ||
Residential real estate | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 1,882 | |||
Total Allowance for Loan Losses | 1,882 | |||
Loans: | ||||
Individually evaluated for impairment | 294 | |||
Collectively evaluated for impairment | 492,507 | |||
Loans acquired with deteriorated credit quality | 343 | |||
Total Loans | 485,492 | 493,144 | ||
Residential real estate | Mortgage loans | ||||
Allowance for Loan Losses: | ||||
Total Allowance for Loan Losses | 4,025 | 3,374 | 3,935 | |
Loans: | ||||
Total Loans | 485,492 | 493,144 | ||
Commercial, industrial and agricultural | ||||
Allowance for Loan Losses: | ||||
Individually evaluated for impairment | 4,676 | |||
Collectively evaluated for impairment | 7,907 | |||
Total Allowance for Loan Losses | 24,545 | 12,583 | 13,073 | 12,722 |
Loans: | ||||
Individually evaluated for impairment | 21,014 | |||
Collectively evaluated for impairment | 658,430 | |||
Total Loans | 758,683 | 679,444 | ||
Real estate construction and land loans | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 1,066 | |||
Total Allowance for Loan Losses | 3,182 | 1,066 | 1,526 | 1,297 |
Loans: | ||||
Collectively evaluated for impairment | 97,311 | |||
Total Loans | 100,643 | 97,311 | ||
Installment/consumer loans | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 276 | |||
Total Allowance for Loan Losses | 1,172 | 276 | $ 155 | $ 106 |
Loans: | ||||
Collectively evaluated for impairment | 24,836 | |||
Total Loans | $ 25,051 | $ 24,836 |
PENSION AND POSTRETIREMENT PL_2
PENSION AND POSTRETIREMENT PLANS Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to the plan | $ 0 | $ 0 |
SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to the plan | 0 | 0 |
Distribution from the plan | $ 28 | $ 28 |
PENSION AND POSTRETIREMENT PL_3
PENSION AND POSTRETIREMENT PLANS - Components of Net Periodic Benefit Cost (Credit): (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits | ||
Components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: | ||
Service cost | $ 265 | $ 273 |
Interest cost | 193 | 225 |
Expected return on plan assets | (713) | (608) |
Amortization of net loss | 100 | 130 |
Amortization of prior service credit | (19) | (19) |
Net periodic benefit (credit) cost | (174) | 1 |
SERP Benefits | ||
Components of net periodic benefit (credit) cost and other amounts recognized in other comprehensive income: | ||
Service cost | 93 | 65 |
Interest cost | 37 | 37 |
Expected return on plan assets | 0 | 0 |
Amortization of net loss | 57 | 18 |
Amortization of prior service credit | 0 | 0 |
Net periodic benefit (credit) cost | $ 187 | $ 120 |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Securities sold under agreements to repurchase | ||
Repurchase agreements | $ 1,195 | $ 999 |
Carrying amount of U.S. GSE residential collateralized mortgage obligations and U.S. GSE residential mortgage-backed securities | 2,100 | $ 2,100 |
Maturing during the second quarter | ||
Securities sold under agreements to repurchase | ||
Repurchase agreements | $ 1,200 | |
U.S. GSE residential collateralized mortgage obligations | ||
Securities sold under agreements to repurchase | ||
Percentage of investment securities held as collateral | 17.00% | 17.00% |
U.S. GSE residential mortgage-backed securities | ||
Securities sold under agreements to repurchase | ||
Percentage of investment securities held as collateral | 83.00% | 83.00% |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES - Contractual Maturities and Weighted Average Interest Rates of FHLB Advances (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Contractual Maturity, Amount | ||
Overnight | $ 195,000 | |
Due within a year | $ 290,000 | 240,000 |
Total FHLB advances | $ 290,000 | $ 435,000 |
Weighted Average Rate | ||
Overnight (as a percent) | 1.81% | |
2019 | 0.81% | 1.84% |
Weighted Average Rate for total FHLB advances (as a percent) | 0.81% | 1.82% |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES - Narrative (Details) - USD ($) $ in Billions | Mar. 31, 2020 | Dec. 31, 2019 |
FEDERAL HOME LOAN BANK ADVANCES. | ||
Advances collateralized amount | $ 1.4 | $ 1.4 |
Maximum borrowing amount from FHLB term advances | $ 1.5 |
SUBORDINATED DEBENTURES (Detail
SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2015 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Fixed-to-floating rate subordinated debentures | $ 80,000 | $ 80,000 | ||
Subordinated debentures, net | $ 78,955 | $ 78,920 | ||
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Derivatives | ||
Notional amounts | $ 918,800 | $ 823,900 |
Interest rate swaps | Derivative designated as a cash flow hedge | ||
Derivatives | ||
Notional amounts | $ 305,000 | $ 290,000 |
Weighted average pay rates (as a percent) | 1.84% | 1.84% |
Weighted average receive rates (as a percent) | 1.38% | 1.94% |
Weighted average maturity | 4 years 1 month 6 days | 2 years 10 months 28 days |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Notional amounts | $ 918,800 | $ 823,900 | |
Derivative liability position net | 0 | ||
Derivative asset position net | 69,200 | ||
Collateral received against obligations in net asset position | 70,800 | ||
Collateral posted in net liability position | 0 | ||
Interest rate swaps | Derivative designated as a cash flow hedge | |||
Derivative [Line Items] | |||
Notional amounts | 305,000 | $ 290,000 | |
Interest income on derivative | 110 | $ 556 | |
Interest income (expenses) recorded on swap transactions | 110 | $ 556 | |
Interest rate swaps | Derivative designated as a cash flow hedge | Federal Home Loan Bank of New York | |||
Derivative [Line Items] | |||
Reduction to interest expense | (110) | ||
Additional reclassified estimated decrease in interest expense | $ 3,000 |
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 | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
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 | $ (9,510) | $ (1,597) |
Interest rate contracts, Amount of gain (loss) reclassified from Accumulated OCI into income included component | $ 110 | $ 556 |
DERIVATIVES - Cash Flow Hedges
DERIVATIVES - Cash Flow Hedges included in the Consolidated Balance Sheets (Details) - Derivative designated as a cash flow hedge - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Interest rate swaps | Federal Home Loan Bank of New York | Forward contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 65,000 | $ 50,000 |
Fair Value Liability | (360) | (1,427) |
Interest rate swaps related to FHLB advances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 240,000 | 240,000 |
Fair Value Asset | 1,233 | |
Fair Value Liability | $ (10,603) | $ (978) |
DERIVATIVES - Non-Designated He
DERIVATIVES - Non-Designated Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivatives | |||
Notional amounts | $ 918,800 | $ 823,900 | |
Loan Swap Fees | 1,231 | $ 1,115 | |
Loan customers | |||
Derivatives | |||
Notional amounts | 459,400 | 411,900 | |
Bank counterparties | |||
Derivatives | |||
Notional amounts | 459,400 | 411,900 | |
Interest rate swaps | Non-Designated Hedges | |||
Derivatives | |||
Notional amounts | $ 918,770 | $ 823,894 | |
Weighted average pay rates (as a percent) | 3.36% | 3.75% | |
Weighted average receive rates (as a percent) | 3.36% | 3.75% | |
Weighted average maturity | 10 years 5 months 27 days | 10 years 9 months 7 days | |
Fair value of combined interest rate swaps | $ 0 | $ 0 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Lease cost | |||
Operating lease cost | $ 1,938 | $ 1,663 | |
Sublease income | (11) | (24) | |
Total lease cost | 1,927 | 1,639 | |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 1,794 | $ 1,669 | |
Weighted-average remaining lease term-operating leases | 7 years 10 months 24 days | 7 years 9 months 18 days | |
Weighted-average discount rate-operating leases | 3.20% | 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) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Maturities of operating lease liabilities | ||
2020 | $ 5,170 | |
2020 | $ 7,011 | |
2021 | 6,878 | 6,974 |
2022 | 6,753 | 6,802 |
2023 | 5,853 | 5,853 |
2024 | 5,594 | 5,595 |
Thereafter | 20,577 | 20,324 |
Total operating lease payments | 50,825 | 52,559 |
Less: Interest | (6,254) | (6,582) |
Present value of operating lease liabilities | $ 44,571 | $ 45,977 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Components and Related Income Tax Effects (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||
Unrealized holding gains on available for sale securities | $ 5,813 | $ 5,531 |
Reclassification adjustments for losses realized in income | 15 | |
Income tax effect | (1,704) | (1,613) |
Net change in unrealized gains on available for sale securities | 4,124 | 3,918 |
Reclassification adjustments for amortization realized in income | 138 | 128 |
Income tax effect | (40) | (38) |
Net change in post-retirement obligation | 98 | 90 |
Change in fair value of derivatives used for cash flow hedges | (9,510) | (1,597) |
Reclassification adjustments for gains realized in income | (110) | (556) |
Income tax effect | 2,813 | 628 |
Net change in unrealized losses on cash flow hedges | (6,807) | (1,525) |
Other comprehensive (loss) income | $ (2,585) | $ 2,483 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Summary of the Accumulated Other Comprehensive Loss Balances, Net of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Unrealized (losses) gains on available for sale securities | ||
Balance at the beginning of the period | $ 829 | |
Current Period Change | 4,124 | $ 3,918 |
Balance at the end of the period | (3,295) | |
Unrealized (losses) gains on pension benefits | ||
Balance at the beginning of the period | (6,775) | |
Current Period Change | 98 | 90 |
Balance at the end of the period | (6,677) | |
Unrealized losses on cash flow hedges | ||
Balance at the beginning of the period | (737) | |
Current Period Change | (6,807) | (1,525) |
Balance at the end of the period | (7,544) | |
Accumulated other comprehensive loss, net of income taxes | ||
Balance at the beginning of the period | (8,341) | |
Current Period Change | (2,585) | $ 2,483 |
Balance at the end of the period | $ (10,926) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Reclassifications out of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Amounts Reclassified from AOCI | ||
Interest expense | $ 7,952 | $ 10,192 |
Income tax (expense) benefit | (2,676) | (3,415) |
Net income | 9,348 | 12,927 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Amounts Reclassified from AOCI | ||
Total reclassifications, before income tax | (43) | 427 |
Income tax (expense) benefit | 13 | (125) |
Net income | (30) | 302 |
Amount Reclassified from Accumulated Other Comprehensive Income | Realized losses on sale of available for sale securities | Net securities gains (losses) | ||
Amounts Reclassified from AOCI | ||
Net securities gains (losses) | (15) | |
Amount Reclassified from Accumulated Other Comprehensive Income | Prior service credit | Other operating expense | ||
Amounts Reclassified from AOCI | ||
Other operating expenses | 19 | 19 |
Amount Reclassified from Accumulated Other Comprehensive Income | Actuarial losses | Other operating expense | ||
Amounts Reclassified from AOCI | ||
Other operating expenses | (157) | (148) |
Amount Reclassified from Accumulated Other Comprehensive Income | Realized gains on cash flow hedges | Interest expense. | ||
Amounts Reclassified from AOCI | ||
Interest expense | $ 110 | $ 556 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS - ASU (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Retained earnings | $ 153,766 | $ 150,703 | |
ASU 2016-13 | Impact of adoption | |||
RECENT ACCOUNTING PRONOUNCEMENTS | |||
Retained earnings | $ 0 | ||
Allowance for credit losses on off-balance sheet credit | $ 500 |