Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Entity File Number | 001-34096 | |
Entity Registrant Name | DIME COMMUNITY BANCSHARES, INC | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 11-2934195 | |
Entity Address, Address Line One | 898 Veterans Memorial Highway | |
Entity Address, City or Town | Suite 560, Hauppauge | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11788 | |
City Area Code | 631 | |
Local Phone Number | 537-1000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,454,438 | |
Entity Central Index Key | 0000846617 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | DCOM | |
Security Exchange Name | NASDAQ | |
Preferred stock, Series A | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Preferred Stock, Series A, $0.01 Par Value | |
Trading Symbol | DCOMP | |
Security Exchange Name | NASDAQ |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 629,011 | $ 243,603 |
Mortgage-backed securities available-for-sale, at fair value | 1,212,383 | 426,979 |
Investment securities available-for-sale, at fair value | 496,680 | 111,882 |
Investment securities held-to-maturity | 40,303 | |
Marketable equity securities, at fair value | 5,970 | |
Loans held for sale | 14,720 | 5,903 |
Loans held for investment, net: | ||
Loans | 9,284,871 | 5,622,044 |
Allowance for credit losses | (81,255) | (41,461) |
Total loans held for investment, net | 9,203,616 | 5,580,583 |
Premises and fixed assets, net | 49,615 | 19,053 |
Premises held for sale | 2,799 | |
Restricted stock | 37,719 | 60,707 |
Bank Owned Life Insurance ("BOLI") | 293,898 | 156,096 |
Goodwill | 155,339 | 55,638 |
Other intangible assets | 9,077 | |
Operating lease assets | 56,836 | 33,898 |
Derivative assets | 41,700 | 18,932 |
Accrued interest receivable | 43,284 | 34,815 |
Other assets | 77,401 | 27,551 |
Total assets | 12,364,381 | 6,781,610 |
Due to depositors: | ||
Interest-bearing deposits | 6,852,205 | 3,744,371 |
Non-interest-bearing deposits | 3,821,832 | 780,751 |
Total deposits | 10,674,037 | 4,525,122 |
Federal Home Loan Bank of New York ("FHLBNY") advances | 25,000 | 1,204,010 |
Other short-term borrowings | 2,629 | 120,000 |
Subordinated debt, net | 197,142 | 114,052 |
Operating lease liabilities | 62,870 | 39,874 |
Derivative liabilities | 38,889 | 37,374 |
Other liabilities | 162,697 | 40,082 |
Total liabilities | 11,163,264 | 6,080,514 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, Series A ($0.01 par, $25.00 liquidation value, 10,000,000 shares authorized and 5,299,200 shares issued and outstanding at September 30, 2021 and December 31, 2020) | 116,569 | 116,569 |
Common stock ($0.01 par 80,000,000 shares authorized, 41,599,973 shares and 34,813,302 shares issued at September 30, 2021 and December 31, 2020, respectively, and 40,714,828 shares and 21,232,984 shares outstanding at September 30, 2021 and December 31, 2020, respectively) | 416 | 348 |
Additional paid-in capital | 493,775 | 278,295 |
Retained earnings | 630,744 | 600,641 |
Accumulated other comprehensive loss, net of deferred taxes | (1,042) | (5,924) |
Unearned equity awards | (9,417) | |
Common stock held by the Benefit Maintenance Plan ("BMP") | (1,496) | |
Treasury stock, at cost (885,145 shares and 13,580,318 shares at September 30, 2021 and December 31, 2020, respectively) | (29,928) | (287,337) |
Total stockholders' equity | 1,201,117 | 701,096 |
Total liabilities and stockholders' equity | 12,364,381 | 6,781,610 |
Real estate | ||
Loans held for investment, net: | ||
Loans | 8,251,743 | 4,978,195 |
Commercial and Industrial ("C&I") Loans | ||
Loans held for investment, net: | ||
Loans | 1,012,415 | 641,533 |
Other Loans | ||
Loans held for investment, net: | ||
Loans | $ 20,713 | $ 2,316 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Stockholders' equity: | ||
Investment securities held-to-maturity, fair value | $ 40,303,000 | $ 0 |
Preferred stock, Series A, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, Series A, liquidation value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, Series A, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, Series A, shares issued (in shares) | 5,299,200 | 5,299,200 |
Preferred stock, Series A, shares outstanding (in shares) | 5,299,200 | 5,299,200 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 41,599,973 | 34,813,302 |
Common stock, shares outstanding (in shares) | 40,714,828 | 21,232,984 |
Treasury stock (in shares) | 885,145 | 13,580,318 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest income: | ||||
Loans | $ 94,045,000 | $ 53,245,000 | $ 269,715,000 | $ 161,564,000 |
Securities | 6,030,000 | 3,422,000 | 15,536,000 | 10,794,000 |
Other short-term investments | 583,000 | 729,000 | 2,563,000 | 2,577,000 |
Total interest income | 100,658,000 | 57,396,000 | 287,814,000 | 174,935,000 |
Interest expense: | ||||
Deposits and escrow | 3,565,000 | 6,672,000 | 13,666,000 | 28,298,000 |
Borrowed funds | 2,265,000 | 5,780,000 | 8,225,000 | 17,613,000 |
Total interest expense | 5,830,000 | 12,452,000 | 21,891,000 | 45,911,000 |
Net interest income | 94,828,000 | 44,944,000 | 265,923,000 | 129,024,000 |
(Credit) provision for credit losses | (5,187,000) | 5,931,000 | 6,344,000 | 20,003,000 |
Net interest income after (credit) provision for credit losses | 100,015,000 | 39,013,000 | 259,579,000 | 109,021,000 |
Non-interest income: | ||||
Service charges and other fees | 4,581,000 | 1,632,000 | 11,377,000 | 3,918,000 |
Title fees | 482,000 | 1,603,000 | ||
Loan level derivative income | 445,000 | 1,544,000 | 2,796,000 | 5,201,000 |
BOLI income | 2,249,000 | 1,033,000 | 5,181,000 | 3,831,000 |
Gain on sale of SBA loans | 348,000 | 808,000 | 22,182,000 | 972,000 |
Gain on sale of residential loans | 304,000 | 617,000 | 1,533,000 | 974,000 |
Net gain on equity securities | 0 | 175,000 | 131,000 | 139,000 |
Net gain on sale of securities and other assets | 215,000 | 730,000 | 3,357,000 | |
Loss on termination of derivatives | (16,505,000) | |||
Other | 1,319,000 | 125,000 | 2,861,000 | 379,000 |
Total non-interest income | 9,728,000 | 6,149,000 | 31,889,000 | 18,771,000 |
Non-interest expense: | ||||
Salaries and employee benefits | 28,276,000 | 14,316,000 | 80,693,000 | 45,030,000 |
Severance | 1,875,000 | 4,000,000 | ||
Occupancy and equipment | 7,814,000 | 4,046,000 | 22,913,000 | 12,061,000 |
Data processing costs | 3,573,000 | 2,146,000 | 12,132,000 | 6,177,000 |
Marketing | 1,054,000 | 345,000 | 2,702,000 | 1,140,000 |
Professional services | 2,751,000 | 935,000 | 7,154,000 | 2,713,000 |
Federal deposit insurance premiums | 1,173,000 | 761,000 | 3,046,000 | 1,767,000 |
Loss from extinguishment of debt | 1,751,000 | |||
Curtailment loss | 1,543,000 | |||
Merger expenses and transaction costs | 2,472,000 | 769,000 | 42,250,000 | 2,427,000 |
Branch restructuring costs | 4,518,000 | 6,177,000 | ||
Amortization of other intangible assets | 715,000 | 0 | 1,907,000 | 0 |
Other | 4,437,000 | 1,535,000 | 10,327,000 | 4,924,000 |
Total non-interest expense | 56,783,000 | 24,853,000 | 194,470,000 | 80,239,000 |
Income before income taxes | 52,960,000 | 20,309,000 | 96,998,000 | 47,553,000 |
Income tax expense | 14,565,000 | 4,441,000 | 28,359,000 | 10,327,000 |
Net income | 38,395,000 | 15,868,000 | 68,639,000 | 37,226,000 |
Preferred stock dividends | 1,822,000 | 1,822,000 | 5,465,000 | 2,962,000 |
Net income available to common stockholders | $ 36,573,000 | $ 14,046,000 | $ 63,174,000 | $ 34,264,000 |
Earnings per common share: | ||||
Basic | $ 0.89 | $ 0.66 | $ 1.62 | $ 1.57 |
Diluted | $ 0.89 | $ 0.65 | $ 1.62 | $ 1.56 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 38,395 | $ 15,868 | $ 68,639 | $ 37,226 |
Other comprehensive income (loss): | ||||
Change in net unrealized gain or loss during the period | (8,654) | 1,716 | (15,222) | 15,769 |
Reclassification adjustment for net gains included in net gain on securities and other assets | (215) | (1,207) | (3,357) | |
Change in pension and other postretirement obligations: | ||||
Reclassification adjustment for expense included in other expense | (735) | 4 | (1,595) | 194 |
Reclassification adjustment for curtailment loss | 1,543 | |||
Change in the net actuarial gain or loss | 941 | 267 | 2,470 | 619 |
Change in unrealized gain or loss on derivatives: | ||||
Change in net unrealized gain or loss during the period | 225 | 100 | 3,767 | (25,098) |
Reclassification adjustment for loss included in loss on termination of derivatives | 16,505 | |||
Reclassification adjustment for expense included in interest expense | 38 | 2,319 | 902 | 3,679 |
Other comprehensive (loss) income before income taxes | (8,185) | 4,191 | 7,163 | (8,194) |
Deferred tax (benefit) expense | (2,567) | 1,327 | 2,281 | (2,595) |
Total other comprehensive (loss) income, net of tax | (5,618) | 2,864 | 4,882 | (5,599) |
Total comprehensive income | $ 32,777 | $ 18,732 | $ 73,521 | $ 31,627 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Preferred StockCumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Unearned Equity Awards | Common Stock Held by BMPCumulative Effect, Period of Adoption, Adjusted Balance | Common Stock Held by BMP | Treasury Stock, at CostCumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock, at Cost | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Total |
Balance at Dec. 31, 2019 | $ 348 | $ 279,511 | $ 581,817 | $ (5,940) | $ (6,731) | $ (1,496) | $ (250,751) | $ 596,758 | |||||||||||
Balance (in shares) at Dec. 31, 2019 | 22,780,208 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net (loss) income | 8,392 | 8,392 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (6,692) | (6,692) | |||||||||||||||||
Release of shares, net of forfeitures | 5 | (7) | 2 | ||||||||||||||||
Release of shares, net of forfeitures (in shares) | 59 | ||||||||||||||||||
Stock-based compensation | 671 | 671 | |||||||||||||||||
Proceeds from Preferred Stock issuance, net | $ 72,224 | 72,224 | |||||||||||||||||
Shares received related to tax withholding | (79) | (79) | |||||||||||||||||
Shares received related to tax withholding (in shares) | (3,025) | ||||||||||||||||||
Cash dividends declared to common stockholders | (4,915) | (4,915) | |||||||||||||||||
Repurchase of shares of common stock | (20,711) | (20,711) | |||||||||||||||||
Repurchase of shares of common stock (in shares) | (825,992) | ||||||||||||||||||
Balance at Mar. 31, 2020 | 72,224 | $ 348 | 279,516 | 585,294 | (12,632) | (6,067) | (1,496) | (271,539) | 645,648 | ||||||||||
Balance (in shares) at Mar. 31, 2020 | 21,951,250 | ||||||||||||||||||
Balance at Dec. 31, 2019 | $ 348 | 279,511 | 581,817 | (5,940) | (6,731) | (1,496) | (250,751) | 596,758 | |||||||||||
Balance (in shares) at Dec. 31, 2019 | 22,780,208 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net (loss) income | 37,226 | ||||||||||||||||||
Other comprehensive income (loss), net of tax | (5,599) | ||||||||||||||||||
Balance at Sep. 30, 2020 | 116,569 | $ 348 | 278,769 | 601,913 | (11,539) | (6,695) | (1,496) | (283,711) | 694,158 | ||||||||||
Balance (in shares) at Sep. 30, 2020 | 21,416,284 | ||||||||||||||||||
Balance at Mar. 31, 2020 | 72,224 | $ 348 | 279,516 | 585,294 | (12,632) | (6,067) | (1,496) | (271,539) | 645,648 | ||||||||||
Balance (in shares) at Mar. 31, 2020 | 21,951,250 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net (loss) income | 12,966 | 12,966 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (1,771) | (1,771) | |||||||||||||||||
Exercise of stock options | 38 | 38 | |||||||||||||||||
Exercise of stock options (in shares) | 1,973 | ||||||||||||||||||
Release of shares, net of forfeitures | (784) | (1,960) | 2,772 | 28 | |||||||||||||||
Release of shares, net of forfeitures (in shares) | 127,582 | ||||||||||||||||||
Stock-based compensation | 478 | 478 | |||||||||||||||||
Proceeds from Preferred Stock issuance, net | 44,345 | 44,345 | |||||||||||||||||
Shares received related to tax withholding | (169) | (169) | |||||||||||||||||
Shares received related to tax withholding (in shares) | (6,912) | ||||||||||||||||||
Cash dividends declared to preferred stockholders | (1,140) | (1,140) | |||||||||||||||||
Cash dividends declared to common stockholders | (4,623) | (4,623) | |||||||||||||||||
Repurchase of shares of common stock | (14,257) | (14,257) | |||||||||||||||||
Repurchase of shares of common stock (in shares) | (631,842) | ||||||||||||||||||
Balance at Jun. 30, 2020 | 116,569 | $ 348 | 278,770 | 592,497 | (14,403) | (7,549) | (1,496) | (283,193) | 681,543 | ||||||||||
Balance (in shares) at Jun. 30, 2020 | 21,442,051 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net (loss) income | 15,868 | 15,868 | |||||||||||||||||
Other comprehensive income (loss), net of tax | 2,864 | 2,864 | |||||||||||||||||
Release of shares, net of forfeitures | (1) | 50 | (49) | ||||||||||||||||
Release of shares, net of forfeitures (in shares) | (2,368) | ||||||||||||||||||
Stock-based compensation | 804 | 804 | |||||||||||||||||
Shares received related to tax withholding | (81) | (81) | |||||||||||||||||
Shares received related to tax withholding (in shares) | (4,203) | ||||||||||||||||||
Cash dividends declared to preferred stockholders | (1,822) | (1,822) | |||||||||||||||||
Cash dividends declared to common stockholders | (4,630) | (4,630) | |||||||||||||||||
Repurchase of shares of common stock | (388) | (388) | |||||||||||||||||
Repurchase of shares of common stock (in shares) | (19,196) | ||||||||||||||||||
Balance at Sep. 30, 2020 | 116,569 | $ 348 | 278,769 | 601,913 | (11,539) | (6,695) | (1,496) | (283,711) | 694,158 | ||||||||||
Balance (in shares) at Sep. 30, 2020 | 21,416,284 | ||||||||||||||||||
Balance at Dec. 31, 2020 | $ 116,569 | 116,569 | $ 348 | $ 348 | $ 278,295 | 278,295 | $ 1,686 | $ 602,327 | 600,641 | $ (5,924) | (5,924) | $ (1,496) | (1,496) | $ (287,337) | (287,337) | $ 1,686 | $ 702,782 | $ 701,096 | |
Balance (in shares) at Dec. 31, 2020 | 21,232,984 | 21,232,984 | 21,232,984 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net (loss) income | (21,034) | $ (21,034) | |||||||||||||||||
Other comprehensive income (loss), net of tax | 6,455 | 6,455 | |||||||||||||||||
Reverse merger with Bridge Bancorp, Inc. | $ 65 | 206,641 | (2,603) | 287,107 | 491,210 | ||||||||||||||
Reverse merger with Bridge Bancorp, Inc. (in shares) | 19,992,284 | ||||||||||||||||||
Exercise of stock options | 292 | 80 | 372 | ||||||||||||||||
Exercise of stock options (in shares) | 15,928 | ||||||||||||||||||
Release of shares, net of forfeitures | $ 3 | 8,562 | (8,340) | (33) | 192 | ||||||||||||||
Release of shares, net of forfeitures (in shares) | 335,959 | ||||||||||||||||||
Stock-based compensation | 836 | 836 | |||||||||||||||||
Shares received to satisfy distribution of retirement benefits | (1,359) | 1,496 | (1,130) | (993) | |||||||||||||||
Shares received to satisfy distribution of retirement benefits (in shares) | (41,101) | ||||||||||||||||||
Cash dividends declared to preferred stockholders | (1,821) | (1,821) | |||||||||||||||||
Cash dividends declared to common stockholders | (5,175) | (5,175) | |||||||||||||||||
Balance at Mar. 31, 2021 | 116,569 | $ 416 | 492,431 | 574,297 | 531 | (10,107) | (1,313) | 1,172,824 | |||||||||||
Balance (in shares) at Mar. 31, 2021 | 41,536,054 | ||||||||||||||||||
Balance at Dec. 31, 2020 | $ 116,569 | 116,569 | $ 348 | $ 348 | $ 278,295 | 278,295 | $ 1,686 | $ 602,327 | 600,641 | $ (5,924) | (5,924) | $ (1,496) | $ (1,496) | $ (287,337) | (287,337) | $ 1,686 | $ 702,782 | $ 701,096 | |
Balance (in shares) at Dec. 31, 2020 | 21,232,984 | 21,232,984 | 21,232,984 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net (loss) income | $ 68,639 | ||||||||||||||||||
Other comprehensive income (loss), net of tax | 4,882 | ||||||||||||||||||
Balance at Sep. 30, 2021 | 116,569 | $ 416 | 493,775 | 630,744 | (1,042) | (9,417) | (29,928) | $ 1,201,117 | |||||||||||
Balance (in shares) at Sep. 30, 2021 | 40,714,828 | 40,714,828 | |||||||||||||||||
Balance at Mar. 31, 2021 | 116,569 | $ 416 | 492,431 | 574,297 | 531 | (10,107) | (1,313) | $ 1,172,824 | |||||||||||
Balance (in shares) at Mar. 31, 2021 | 41,536,054 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net (loss) income | 51,278 | 51,278 | |||||||||||||||||
Other comprehensive income (loss), net of tax | 4,045 | 4,045 | |||||||||||||||||
Exercise of stock options | (7) | 31 | 24 | ||||||||||||||||
Exercise of stock options (in shares) | 1,174 | ||||||||||||||||||
Release of shares, net of forfeitures | 424 | 64 | (141) | 347 | |||||||||||||||
Release of shares, net of forfeitures (in shares) | 3,098 | ||||||||||||||||||
Stock-based compensation | 1,514 | 1,514 | |||||||||||||||||
Shares received related to tax withholding | (147) | (147) | |||||||||||||||||
Shares received related to tax withholding (in shares) | (3,342) | ||||||||||||||||||
Cash dividends declared to preferred stockholders | (1,822) | (1,822) | |||||||||||||||||
Cash dividends declared to common stockholders | (9,962) | (9,962) | |||||||||||||||||
Repurchase of shares of common stock | (13,825) | (13,825) | |||||||||||||||||
Repurchase of shares of common stock (in shares) | (424,121) | ||||||||||||||||||
Balance at Jun. 30, 2021 | 116,569 | $ 416 | 492,848 | 613,791 | 4,576 | (8,529) | (15,395) | 1,204,276 | |||||||||||
Balance (in shares) at Jun. 30, 2021 | 41,112,863 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Net (loss) income | 38,395 | 38,395 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (5,618) | (5,618) | |||||||||||||||||
Release of shares, net of forfeitures | 1,048 | (2,423) | 1,615 | 240 | |||||||||||||||
Release of shares, net of forfeitures (in shares) | 82,004 | ||||||||||||||||||
Stock-based compensation | 1,535 | 1,535 | |||||||||||||||||
Cash dividends declared to preferred stockholders | (1,822) | (1,822) | |||||||||||||||||
Cash dividends declared to common stockholders | (19,620) | (19,620) | |||||||||||||||||
Redemption of real estate investment trust ("REIT") preferred stock | (121) | (121) | |||||||||||||||||
Repurchase of shares of common stock | (16,148) | (16,148) | |||||||||||||||||
Repurchase of shares of common stock (in shares) | (480,039) | ||||||||||||||||||
Balance at Sep. 30, 2021 | $ 116,569 | $ 416 | $ 493,775 | $ 630,744 | $ (1,042) | $ (9,417) | $ (29,928) | $ 1,201,117 | |||||||||||
Balance (in shares) at Sep. 30, 2021 | 40,714,828 | 40,714,828 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 68,639,000 | $ 37,226,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net gain on sales of securities available-for-sale and other assets | (730,000) | (3,357,000) |
Net gain on equity securities | (131,000) | (139,000) |
Net gain on sale of loans held for sale | (23,715,000) | (1,946,000) |
Loss on termination of derivatives | 16,505,000 | |
Net depreciation, amortization and accretion | 4,907,000 | 3,786,000 |
Amortization of Intangible Assets | 1,907,000 | 0 |
Stock-based compensation | 3,885,000 | 1,953,000 |
Provision for credit losses | 6,344,000 | 20,003,000 |
Originations of loans held for sale | (38,709,000) | (26,007,000) |
Proceeds from sale of loans originated for sale | 57,558,000 | 38,789,000 |
Increase in cash surrender value of BOLI | (4,831,000) | (2,697,000) |
Gain from death benefits from BOLI | (350,000) | (1,134,000) |
Deferred income tax benefit | (12,704,000) | (6,841,000) |
Decrease (increase) in other assets | 126,377,000 | (17,810,000) |
(Decrease) increase in other liabilities | (45,669,000) | 6,148,000 |
Net cash provided by operating activities | 159,283,000 | 47,974,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sales of securities available-for-sale | 138,077,000 | 68,784,000 |
Proceeds from sales of marketable equity securities | 6,101,000 | 410,000 |
Purchases of securities available-for-sale | (1,025,697,000) | (149,353,000) |
Purchases of securities held-to-maturity | (40,303,000) | |
Acquisition of marketable equity securities | 0 | (136,000) |
Proceeds from calls and principal repayments of securities available-for-sale | 350,598,000 | 121,169,000 |
Purchase of BOLI | (40,000,000) | (40,000,000) |
Proceeds received from cash surrender value of BOLI | 1,464,000 | 3,020,000 |
Loans purchased | (9,855,000) | (18,892,000) |
Proceeds from the sale of portfolio loans transferred to held for sale | 681,956,000 | 35,025,000 |
Net decrease (increase) in loans | 244,995,000 | (266,490,000) |
Purchases of fixed assets, net | (781,000) | (1,442,000) |
Redemptions (purchases) of restricted stock, net | 46,350,000 | (1,286,000) |
Net cash received in business combination | 715,988,000 | 0 |
Net cash provided by (used in) investing activities | 1,068,893,000 | (249,191,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Increase in deposits | 733,744,000 | 133,042,000 |
Repayments of FHLBNY advances, long-term | (190,150,000) | (188,800,000) |
Repayments of FHLBNY advances, short-term, net | (2,663,865,000) | |
Proceeds from FHLBNY advances, short-term | 1,435,000,000 | 127,500,000 |
Proceeds from FHLBNY advances, long-term | 25,000,000 | 97,450,000 |
Repayments of other short-term borrowings, net | (117,371,000) | (40,000,000) |
Proceeds from preferred stock issuance, net | 0 | 116,569,000 |
Proceeds from exercise of stock options | 396,000 | 38,000 |
Release of stock for benefit plan awards | 779,000 | 28,000 |
Payments related to tax withholding for equity awards | (147,000) | (329,000) |
BMP ESOP shares received to satisfy distribution of retirement benefits | (993,000) | |
Treasury shares repurchased | (29,973,000) | (35,356,000) |
Redemption of REIT preferred stock | (121,000) | |
Cash dividends paid to preferred stockholders | (5,465,000) | (2,962,000) |
Cash dividends paid to common stockholders | (29,602,000) | (14,168,000) |
Net cash (used in) provided by financing activities | (842,768,000) | 193,012,000 |
Increase (decrease) in cash and cash equivalents | 385,408,000 | (8,205,000) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 243,603,000 | 155,488,000 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 629,011,000 | 147,283,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 17,930,000 | 13,755,000 |
Cash paid for interest | 21,995,000 | 46,972,000 |
Loans transferred to held for sale | 685,747,000 | 47,938,000 |
Loans transferred to held for investment | 10,000,000 | |
Premises held for investment transferred to held for sale | 2,799,000 | |
Premises held for sale transferred premises and fixed assets, net | 0 | (514,000) |
Operating lease assets in exchange for operating lease liabilities | 4,048,000 | $ 1,524,000 |
Cumulative change due to CECL adoption | 1,686,000 | |
Net non-cash liabilities assumed in Merger (See Note 2) | $ 324,479,000 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. On February 1, 2021, Dime Community Bancshares, Inc., a Delaware corporation (“Legacy Dime”) merged with and into Bridge Bancorp, Inc., a New York corporation (“Bridge”) (the “Merger”), with Bridge as the surviving corporation under the name “Dime Community Bancshares, Inc.” (the “Holding Company”). At the effective time of the Merger (the “Effective Time”), each outstanding share of Legacy Dime common stock, par value $0.01 per share, was converted into the right to receive 0.6480 shares of the Holding Company’s common stock, par value $0.01 per share. At the Effective Time, each outstanding share of Legacy Dime’s Series A preferred stock, par value $0.01 (the “Dime Preferred Stock”), was converted into the right to receive one share of a newly created series of the Holding Company’s preferred stock having the same powers, preferences and rights as the Dime Preferred Stock. Immediately following the Merger, Dime Community Bank, a New York-chartered commercial bank and a wholly-owned subsidiary of Legacy Dime, merged with and into BNB Bank, a New York-chartered trust company and a wholly-owned subsidiary of Bridge, with BNB Bank as the surviving bank, under the name “Dime Community Bank” (the “Bank”). 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 Merger was accounted for as a reverse merger using the acquisition method of accounting, which means that for accounting and financial reporting purposes, Legacy Dime was deemed to have acquired Bridge in the Merger, even though Bridge was the legal acquirer. Accordingly, Legacy Dime’s historical financial statements are the historical financial statements of the combined company for all periods before February 1, 2021 (the “Merger Date”). The Company’s results of operations for 2021 include the results of operations of Bridge on and after the Merger Date. Results for periods before the Merger Date reflect only those of Legacy Dime and do not include the results of operations of Bridge. The number of shares issued and outstanding, earnings per share, additional paid-in capital, dividends paid and all references to share quantities of the Company have been retrospectively adjusted to reflect the equivalent number of shares issued to holders of Legacy Dime common stock in the Merger. The assets and liabilities of Bridge as of the Merger Date have been recorded at their estimated fair value and added to those of Legacy Dime. See Note 2. Merger for further information. As of September 30, 2021, we operated 65 branch locations throughout Long Island and the New York City boroughs of Brooklyn, Queens, Manhattan, and the Bronx. The Company is a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Dime Community Bank, which was known as BNB Bank prior to the Merger. The Bank was established in 1910 and is headquartered in Hauppauge, New York. The Holding Company was incorporated under the laws of the State of New York in 1988 to serve as the holding company for the Bank. The Company functions primarily as the holder of all of the Bank’s common stock. Our bank operations include Dime Community Inc., a real estate investment trust subsidiary which was formerly known as Bridgehampton Community, Inc., as an operating subsidiary. Our bank operations also include Bridge Abstract LLC (“Bridge Abstract”), a wholly-owned subsidiary of the Bank, which is a broker of title insurance services. In connection with the Merger, on February 1, 2021, the Holding Company acquired Dime Community Bank and its wholly-owned subsidiaries. In September 2021, the Company dissolved two REITs, DSBW Preferred Funding Corporation and DSBW Residential Preferred Funding Corporation, which were wholly-owned subsidiaries of the Bank. The preferred shares issued by the REITs were redeemed in connection with the dissolutions. 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 nine months ended September 30, 2021 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 Legacy Dime’s Annual Report on Form 10-K for the year ended December 31, 2019, which remain significantly unchanged and have been followed similarly as in prior periods except for the allowance for credit losses policy, resulting from the adoption of Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326)” and certain policies added as a result of the Merger. Risks and Uncertainties In March 2020, the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which has spread to most countries, including the United States. The pandemic has adversely affected economic activity globally, nationally and locally. In March 2020, the United States declared a National Public Health Emergency in response to the COVID-19 pandemic. In an effort to mitigate the spread of COVID-19, local state governments, including New York (in which the Bank has retail banking offices), have taken preventative or protective actions such as travel restrictions, advising or requiring individuals to limit or forego their time outside of their homes, and other forced closures for certain types of non-essential businesses. The impact of these actions is expected to continue to have an adverse impact on the economies and financial markets in the United States. The Coronavirus Aid, Relief and Economic Security (“CARES”) Act was signed into law at the end of March 2020. The CARES Act is intended to provide relief and lessen a severe economic downturn. The stimulus package includes direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The package also includes extensive emergency funding for hospitals and healthcare providers. In December 2020, the 2021 Consolidated Appropriations Act was signed into law to provide additional relief. It is possible that there will be continued material, adverse impacts to significant estimates, asset valuations, and business operations, including intangible assets, investments, loans, deferred tax assets, and derivative counter party risk. |
MERGER
MERGER | 9 Months Ended |
Sep. 30, 2021 | |
MERGER | |
MERGER | 2 . As described in Note 1. Basis of Presentation, on February 1, 2021, we completed our Merger with Legacy Dime. Pursuant to the merger agreement, Legacy Dime merged with and into Bridge with Bridge as the surviving corporation under the name “Dime Community Bancshares, Inc.” At the effective time of the Merger, each outstanding share of Legacy Dime common stock, par value $0.01 per share, was converted into 0.6480 shares of the Company’s common stock, par value $0.01 per share. At the Effective Time, each outstanding share of Legacy Dime’s Series A preferred stock, par value $0.01 was converted into one share of a newly created series of the Company’s preferred stock having the same powers, preferences and rights as the Dime Preferred Stock. In connection with the Merger, the Company assumed $115.0 million in aggregate principal amount of the 4.50% Fixed-to-Floating Rate Subordinated Debentures due 2027 of Legacy Dime. The Merger constituted a business combination and was accounted for as a reverse merger using the acquisition method of accounting. As a result, Legacy Dime was the accounting acquirer and Bridge was the legal acquirer and the accounting acquiree. Accordingly, the historical financial statements of Legacy Dime became the historical financial statements of the combined company. In addition, the assets and liabilities of Bridge have been recorded at their estimated fair values and added to those of Legacy Dime as of the Merger Date. The determination of fair value required management to make estimates about discount rates, expected future cash flows, market conditions and other future events that are subjective and subject to change. The Company issued 21.2 million shares of its common stock to Legacy Dime stockholders in connection with the Merger, which represented 51.5% of the voting interests in the Company upon completion of the Merger. In accordance with FASB ASC 805-40-30-2, the purchase price in a reverse acquisition is determined based on the number of equity interests the legal acquiree would have had to issue to give the owners of the legal acquirer the same percentage equity interest in the combined entity that results from the reverse acquisition. The table below summarizes the ownership of the combined company following the Merger, for each shareholder group, as well as the market capitalization of the combined company using shares of Bridge and Legacy Dime common stock outstanding at January 31, 2021 and Bridge’s closing price on January 31, 2021. Dime Community Bancshares, Inc. Ownership and Market Value Number of Market Value at Bridge Percentage $24.43 Bridge (Dollars and shares in thousands) Outstanding Shares Ownership Share Price Bridge shareholders 19,993 48.5% $ 488,420 Legacy Dime shareholders 21,233 51.5% 518,720 Total 41,226 100.0% $ 1,007,140 The table below summarizes the hypothetical number of shares as of January 31, 2021 that Legacy Dime would have to issue to give Bridge owners the same percentage ownership in the combined company. Hypothetical Legacy Dime Ownership Number of Legacy Dime Percentage (Shares in thousands) Outstanding Shares Ownership Bridge shareholders 30,853 48.5% Legacy Dime shareholders 32,767 51.5% Total 63,620 100.0% The purchase price is calculated based on the number of hypothetical shares of Legacy Dime common stock issued to Bridge shareholders multiplied by the share price as demonstrated in the table below. (Dollars and shares in thousands) Number of hypothetical Legacy Dime shares issued to Bridge shareholders 30,853 Legacy Dime market price per share as of February 1, 2021 $ 15.90 Purchase price determination of hypothetical Legacy Dime shares issued to Bridge shareholders $ 490,560 Value of Bridge stock options hypothetically converted to options to acquire shares of Legacy Dime common stock 643 Cash in lieu of fractional shares 7 Purchase price consideration $ 491,210 The following table provides the purchase price allocation as of the Merger Date and the Bridge assets acquired and liabilities assumed at their estimated fair value as of the Merger Date as recorded by Dime Community Bancshares. We recorded the estimate of fair value based on initial valuations available at the Merger Date and these estimates are considered preliminary and subject to adjustment for up to one year after the Merger Date. While we believe that the information available on the Merger Date provided a reasonable basis for estimating fair value, we are currently within the measurement period and our estimates of fair value are provisional. During the third quarter of 2021, no material fair value adjustments to acquired assets and assumed liabilities were identified. We expect that we may obtain additional information and evidence during the measurement period that would result in changes to the estimated fair value amounts. The measurement period ends on the earlier of one year after the Merger Date or the date we are able to determine that we have obtained all necessary information about the facts and circumstances that existed as of Merger Date. We expect to finalize all valuations and record final adjustments during the fourth quarter of 2021. Subsequent adjustments to fair value, if necessary, will be reflected in our future filings. (In thousands) Purchase price consideration $ 491,210 Fair value of assets acquired: Cash and due from banks 715,988 Securities available-for-sale 651,997 Loans held for sale 10,000 Loans held for investment 4,531,640 Premises and fixed assets 37,881 Restricted stock 23,362 BOLI 94,085 Other intangible assets 10,984 Operating lease assets 45,603 Other assets 117,474 Total assets acquired 6,239,014 Fair value of liabilities assumed: Deposits 5,405,575 Other short-term borrowings 216,298 Subordinated debt 83,200 Operating lease liabilities 45,285 Other liabilities 97,147 Total liabilities assumed 5,847,505 Fair value of net identifiable assets 391,509 Goodwill resulting from Merger $ 99,701 As a result of the Merger, we recorded $99.7 million of goodwill. The goodwill recorded is not deductible for income tax purposes. As described in detail in Note 3. Summary of Accounting Policies, the Company is required to record purchased financial assets with credit deterioration (PCD assets), defined as a more-than-insignificant deterioration in credit quality since origination or issuance, at the purchase price plus the allowance for credit losses expected at the time of acquisition. Under this method, there is no credit loss expense affecting net income on acquisition of PCD assets. Changes in estimates of expected losses after acquisition are recognized as credit loss expense (or reversal of credit loss expense) in subsequent periods as they arise. Any non-credit discount or premium resulting from acquiring a pool of purchased financial assets with credit deterioration shall be allocated to each individual asset. At the acquisition date, the initial allowance for credit losses determined on a collective basis shall be allocated to individual assets to appropriately allocate any non-credit discount or premium. The non-credit discount or premium, after the adjustment for the allowance for credit losses, shall be accreted to interest income using the interest method based on the effective interest rate determined after the adjustment for credit losses at the adoption date. (In thousands) PCD loans: Unpaid principal balance $ 295,306 Non-credit discount at acquisition (9,050) Unpaid principal balance, net 286,256 Allowance for credit losses at acquisition (52,284) Fair value at acquisition 233,972 Non-PCD loans: Unpaid principal balance 4,289,236 Premium at acquisition 8,432 Fair value at acquisition 4,297,668 Total fair value at acquisition $ 4,531,640 Supplemental disclosures of cash flow information related to investing and financing activities regarding the Merger are as follows for the nine months ended September 30, 2021: (In thousands) Business combination: Fair value of tangible assets acquired $ 6,228,030 Goodwill, core deposit intangible and other intangible assets acquired 110,685 Liabilities assumed 5,847,505 Purchase price consideration 491,210 Other intangible assets consisted of core deposit intangibles and a non-compete agreement with estimated fair values at the Merger Date of $10.2 million and $780 thousand, respectively. Core deposit intangibles are being amortized over a life of 10 years on an accelerated basis. The non-compete agreement is being amortized over a life of 13 months. Pro Forma Combined Results of Operations The following pro forma financial information presents the consolidated results of operations of Legacy Dime and Bridge as if the Merger occurred as of January 1, 2020 with pro forma adjustments. The pro forma adjustments give effect to any change in interest income due to the accretion of discounts (premiums) associated with the fair value adjustments of acquired loans, any change in interest expense due to estimated premium amortization/discount accretion associated with the fair value adjustments to acquired time deposits and other debt, and the amortization of the core deposit intangible that would have resulted had the deposits been acquired as of January 1, 2020. Merger related expenses incurred by the Company during the three and nine months ended September 30, 2021 are not reflected in the pro forma amounts. The pro forma information does not necessarily reflect the results of operations that would have occurred had Legacy Dime merged with Bridge at the beginning of 2020. Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands except per share amounts) 2021 2020 2021 2020 Net interest income $ 93,316 $ 86,818 $ 274,499 $ 252,455 Non-interest income 9,728 12,939 33,240 33,030 Net income 39,978 29,971 92,782 72,015 Net income available to common shareholders 37,700 27,791 86,390 68,169 Earnings per share: Basic 0.93 0.68 2.11 1.66 Diluted 0.93 0.68 2.11 1.66 |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF ACCOUNTING POLICIES | |
SUMMARY OF ACCOUNTING POLICIES | 3 . Summary of Significant Accounting Policies In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary for a fair presentation of the Company’s financial condition as of September 30, 2021 and December 31, 2020, the results of operations and statements of comprehensive income for the three and nine months ended September 30, 2021 and 2020, the changes in stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 30, 2021 and 2020. Please see "Part I - Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies" for a discussion of areas in the accompanying unaudited condensed consolidated financial statements utilizing significant estimates. Recent Accounting Pronouncements Allowance for Credit Losses – The adoption of the CECL Standard resulted in an initial decrease of $3.9 million to the allowance for credit losses and an increase of $1.4 million to the reserve for unfunded commitments in other liabilities. The after-tax cumulative-effect adjustment of $1.7 million was recorded in retained earnings as of January 1, 2021. There were no held-to-maturity securities as of January 1, 2021 and, therefore, no impact from the adoption of the CECL Standard. The allowance for credit losses is a valuation allowance that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loan losses are charged against the allowance when management believes it has confirmed the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. The CECL Standard 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. Management estimates the allowance for credit losses for the Company’s loan portfolio required using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historically observed credit loss experience of peer banks within our geography provide the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or terms as well as changes in environmental conditions, such as changes in unemployment rates, gross domestic product, and real estate pricing. Management evaluates the adequacy of the allowance on a quarterly basis. Accrued interest receivable is excluded from the estimate of credit losses. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following portfolio segments and measures the allowance for credit losses using the following methods: One-to-four family residential, including condominium and cooperative apartment loans - Multifamily residential and residential mixed-use loans - Commercial real estate and commercial mixed-use loans - Acquisition, development, and construction loans Commercial, Industrial and Agricultural Loans - Other Loans As allowed by ASC 326, the Entity elected to maintain pools of loans accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether modifications to individual acquired financial assets accounted for in pools were troubled debt restructurings (“TDRs”) as of the date of adoption. TDRs Loans that do not share risk characteristics are evaluated on an individual basis based on various factors. Loans evaluated individually are not included in the collective evaluation. Factors that may be considered are borrower delinquency trends and non-accrual status, probability of foreclosure or note sale, changes in the borrower’s circumstances or cash collections, borrower’s industry, or other facts and circumstances of the loan or collateral. Individually Evaluated Loans with an ACL and Other Real Estate Owned 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. The fair value of non-real estate collateral, which includes inventory, may be determined based on an appraisal, net book value per the borrower’s financial statements, aging reports, or by reference to market activity, 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. For non-collateral-dependent loans, ACL is measured based on the difference between the present value of expected cash flows and the amortized cost basis of the loan as of the measurement date. 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. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures – The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures, which is included in other liabilities on the consolidated statements of financial condition, is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which is the same as the expected loss factor as determined based on the corresponding portfolio segment. Loans acquired in a business combination – A purchased financial asset that does not qualify as a PCD asset is accounted for similar to an originated financial asset. Generally, this means that an entity recognizes the allowance for credit losses for non-PCD assets through net income at the time of acquisition. In addition, both the credit discount and non-credit discount or premium resulting from acquiring a pool of purchased financial assets that do not qualify as PCD assets shall be allocated to each individual asset. This combined discount or premium shall be accreted to interest income using the effective yield method. For further discussion of our loan accounting and acquisitions, see Note 2 – Merger and Note 8 – Loans. 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 (“GSEs”), 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, the Company did not record an allowance for expected credit losses on its securities issued by GSEs at September 30, 2021. Accrued interest receivable is excluded from the estimate of credit losses. Available-for-sale debt securities and the allowance for credit losses For available-for-sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes in the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to 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”). Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the collectability of an available-for-sale security is confirmed or when the criteria regarding intent or requirement to sell is met. Accrued interest receivable is excluded from the estimate of credit losses. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS). | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 4 . Activity in accumulated other comprehensive income (loss), net of tax, was as follows: Total Accumulated Securities Defined Other Available- Benefit Comprehensive (In thousands) for-Sale Plans Derivatives Income (Loss) Balance as of January 1, 2021 $ 12,694 $ (6,086) $ (12,532) $ (5,924) Other comprehensive (loss) income before reclassifications (10,378) 2,706 13,850 6,178 Amounts reclassified from accumulated other comprehensive loss (826) (1,082) 612 (1,296) Net other comprehensive (loss) income during the period (11,204) 1,624 14,462 4,882 Balance as of September 30, 2021 $ 1,490 $ (4,462) $ 1,930 $ (1,042) Balance as of January 1, 2020 $ 4,621 $ (6,024) $ (4,537) $ (5,940) Other comprehensive income (loss) before reclassifications 10,783 423 (17,150) (5,944) Amounts reclassified from accumulated other comprehensive loss (2,302) 133 2,514 345 Net other comprehensive income (loss) during the period 8,481 556 (14,636) (5,599) Balance as of September 30, 2020 $ 13,102 $ (5,468) $ (19,173) $ (11,539) The before and after-tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below for the periods indicated. Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Change in unrealized holding gain or loss on securities available-for-sale: Change in net unrealized gain or loss during the period $ (8,654) $ 1,716 $ (15,222) $ 15,769 Reclassification adjustment for net gains included in net gain on securities and other assets — (215) (1,207) (3,357) Net change (8,654) 1,501 (16,429) 12,412 Tax (benefit) expense (2,714) 475 (5,226) 3,931 Net change in unrealized holding gain or loss on securities available-for-sale, net of reclassification adjustments and tax (5,940) 1,026 (11,203) 8,481 Change in pension and other postretirement obligations: Reclassification adjustment for expense included in other expense (735) 4 (1,595) 194 Reclassification adjustment for curtailment loss — — 1,543 — Change in the net actuarial gain or loss 941 267 2,470 619 Net change 206 271 2,418 813 Tax expense 65 86 795 257 Net change in pension and other postretirement obligations 141 185 1,623 556 Change in unrealized gain or loss on derivatives: Change in net unrealized gain or loss during the period 225 100 3,767 (25,098) Reclassification adjustment for loss included in loss on termination of derivatives — — 16,505 — Reclassification adjustment for expense included in interest expense 38 2,319 902 3,679 Net change 263 2,419 21,174 (21,419) Tax expense (benefit) 82 766 6,712 (6,783) Net change in unrealized gain or loss on derivatives, net of reclassification adjustments and tax 181 1,653 14,462 (14,636) Other comprehensive (loss) income, net of tax $ (5,618) $ 2,864 $ 4,882 $ (5,599) |
EARNINGS PER COMMON SHARE ("EPS
EARNINGS PER COMMON SHARE ("EPS") | 9 Months Ended |
Sep. 30, 2021 | |
EARNINGS PER COMMON SHARE ("EPS") | |
EARNINGS PER COMMON SHARE ("EPS") | 5 . Basic EPS is computed by dividing net income available to common stockholders by the weighted-average common shares outstanding during the reporting period. Diluted EPS is computed using the same method as basic EPS, but reflects the potential dilution that would occur if "in the money" stock options were exercised and converted into common stock, and prior to 2021, if all likely aggregate performance-based share awards ("PSA”) were issued. In determining the weighted average shares outstanding for basic and diluted EPS, treasury shares are excluded. Vested restricted stock award ("RSA") shares are included in the calculation of the weighted average shares outstanding for basic and diluted EPS. Unvested RSA and PSA shares not yet awarded are recognized as a special class of participating securities under ASC 260, and are included in the calculation of the weighted average shares outstanding for basic and diluted EPS. The following is a reconciliation of the numerators and denominators of basic and diluted EPS for the periods presented: Three Months Ended Nine Months Ended September 30, September 30, (In thousands except share and per share amounts) 2021 2020 2021 2020 Net income available to common stockholders $ 36,573 $ 14,046 $ 63,174 $ 34,264 Less: Dividends paid and earnings allocated to participating securities (437) (83) (811) (195) Income attributable to common stock $ 36,136 $ 13,963 $ 62,363 $ 34,069 Weighted average common shares outstanding, including participating securities 40,915,012 21,378,332 38,979,259 21,848,184 Less: weighted average participating securities (489,274) (187,781) (405,102) (191,438) Weighted average common shares outstanding 40,425,738 21,190,551 38,574,157 21,656,746 Basic EPS $ 0.89 $ 0.66 $ 1.62 $ 1.57 Income attributable to common stock $ 36,136 $ 13,963 $ 62,363 $ 34,069 Weighted average common shares outstanding 40,425,738 21,190,551 38,574,157 21,656,746 Weighted average common equivalent shares outstanding 423 133,636 700 134,334 Weighted average common and equivalent shares outstanding 40,426,161 21,324,187 38,574,857 21,791,080 Diluted EPS $ 0.89 $ 0.65 $ 1.62 $ 1.56 Common and equivalent shares resulting from the dilutive effect of "in-the-money" outstanding stock options are calculated based upon the excess of the average market value of the common stock over the exercise price of outstanding in-the-money stock options during the period. There were 174,584 and 177,953 weighted-average stock options outstanding for the three and nine-month periods ended September 30, 2021, respectively, which were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period. There were no "out-of-the-money" stock options during the three-month or the nine-month period ended September 30, 2020. |
PREFERRED STOCK
PREFERRED STOCK | 9 Months Ended |
Sep. 30, 2021 | |
PREFERRED STOCK. | |
PREFERRED STOCK | 6 . On February 5, 2020, Legacy Dime completed an underwritten public offering of 2,999,200 shares, or $75.0 million in aggregate liquidation preference, of its 5.50% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A, par value $0.01 per share, with a liquidation preference of $25.00 per share (the “Legacy Dime Preferred Stock”). The net proceeds received from the issuance of preferred stock at the time of closing were $72.2 million. On June 10, 2020, Legacy Dime completed an underwritten public offering, a reopening of the February 5, 2020 original issuance, of 2,300,000 shares, or $57.5 million in aggregate liquidation preference, of the Legacy Dime Preferred Stock. The net proceeds received from the issuance of preferred stock at the time of closing were $44.3 million. At the Effective Time of the Merger, each outstanding share of the Legacy Dime Preferred Stock was converted into the right to receive one share of a newly created series of the Company’s preferred stock having the same powers, preferences and rights as the Legacy Dime Preferred Stock. The Company expects to pay dividends when, as, and if declared by its board of directors, at a fixed rate of 5.50% per annum, payable quarterly, in arrears, on February 15, May 15, August 15 and November 15 of each year. The Preferred Stock is perpetual and has no stated maturity. The Company may redeem the Preferred Stock at its option at a redemption price equal to $25.00 per share, plus any declared and unpaid dividends (without regard to any undeclared dividends), subject to regulatory approval, on or after June 15, 2025 or within 90 days following a regulatory capital treatment event, as described in the prospectus supplement and accompanying prospectus relating to the offering. |
INVESTMENT AND MORTGAGE-BACKED
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 9 Months Ended |
Sep. 30, 2021 | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 7 . The following tables summarize the major categories of securities owned by the Company as of the dates indicated: September 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Securities available-for-sale: Agency notes $ 82,475 $ — $ (1,457) $ 81,018 Treasury securities 248,173 5 (482) 247,696 Corporate securities 122,476 4,758 (401) 126,833 Pass-through MBS issued by GSEs 622,225 6,005 (6,273) 621,957 Agency Collateralized Mortgage Obligations ("CMOs") 590,385 5,159 (5,118) 590,426 State and municipal obligations 41,158 153 (178) 41,133 Total securities available-for-sale $ 1,706,892 $ 16,080 $ (13,909) $ 1,709,063 September 30, 2021 Gross Gross Amortized Unrecognized Unrecognized Fair (In thousands) Cost Gains Losses Value Securities held-to-maturity: Pass-through MBS issued by GSEs $ 25,325 $ — $ — $ 25,325 Agency Collateralized Mortgage Obligations ("CMOs") 14,978 — — 14,978 Total securities held-to-maturity $ 40,303 $ — $ — $ 40,303 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Securities available-for-sale: Agency notes $ 47,500 $ 12 $ (91) $ 47,421 Corporate securities 62,021 2,440 — 64,461 Pass-through MBS issued by GSEs 135,842 7,672 (31) 143,483 Agency CMOs 274,898 8,674 (76) 283,496 Total securities available-for-sale $ 520,261 $ 18,798 $ (198) $ 538,861 As a result of the Merger, the Company acquired $652.0 million of securities available-for-sale on the Merger Date. As of December 31, 2020, there were no securities held-to-maturity. The carrying amount of securities pledged as collateral was $684.0 million and $99.4 million at September 30, 2021 and December 31, 2020, respectively. At September 30, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders' equity. The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. September 30, 2021 Amortized Fair (In thousands) Cost Value Available-for-sale Within one year $ 1,346 $ 1,351 One to five years 270,069 269,665 Five to ten years 209,938 212,881 Beyond ten years 12,929 12,783 Pass-through MBS issued by GSEs and agency CMO 1,212,610 1,212,383 Total $ 1,706,892 $ 1,709,063 Held-to-maturity Pass-through MBS issued by GSEs and agency CMO $ 40,303 $ 40,303 Total $ 40,303 $ 40,303 The following table presents the information related to sales of securities available-for-sale as of the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Agency Notes: Proceeds $ — $ — $ — $ 273 Gross gains — — — — Tax expense on gain — — — — Gross losses — — — — Tax benefit on loss — — — — Corporate Securities: Proceeds — — 50,273 25,403 Gross gains — — 729 1,344 Tax expense on gain — — 232 423 Gross losses — — 41 — Tax benefit on loss — — 13 — Pass through MBS issued by GSEs: Proceeds — 5,987 26,823 39,182 Gross gains — 215 187 2,005 Tax expense on gain — 67 59 630 Gross losses — — 35 — Tax benefit on loss — — 11 — Agency CMOs: Proceeds — — 41,324 4,199 Gross gains — — 268 8 Tax expense on gain — — 85 3 Gross losses — — 44 — Tax benefit on loss — — 14 — State and municipal obligations: Proceeds — — 19,657 — Gross gains — — 143 — Tax expense on gain — — 45 — Gross losses — — — — Tax benefit on loss — — — — Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Proceeds: Marketable equity securities $ — $ 137 $ — $ 410 There were no gains on marketable equity securities for the three months ended September 30, 2021. Net gain of $175 thousand was recognized on marketable equity securities for the three months ended September 30, 2020. Net gains of $131 thousand and $139 thousand were recognized on marketable equity securities for the nine months ended September 30, 2021 and 2020, respectively. Marketable equity securities were fully liquidated in connection with the termination of the BMP. There were no sales of securities held-to-maturity during the three months ended September 30, 2021 and 2020. There were no sales of securities held-to-maturity during the nine months ended September 30, 2021 and 2020. There were no transfers to or from securities held-to-maturity during the three months ended September 30, 2021 and 2020. There were no transfers to or from securities held-to-maturity during the nine months ended September 30, 2021 and 2020. The following table summarizes the gross unrealized losses and fair value of investment and mortgage-backed securities aggregated by investment category and the length of time the securities were in a continuous unrealized loss position as of the dates indicated: September 30, 2021 Less than 12 12 Consecutive Consecutive Months Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses Securities available-for-sale: Agency notes $ 81,018 $ 1,457 $ — $ — $ 81,018 $ 1,457 Treasury securities 231,984 482 — — 231,984 482 Corporate securities 17,863 401 — — 17,863 401 Pass-through MBS issued by GSEs 446,864 6,273 — — 446,864 6,273 Agency CMOs 347,726 5,118 — — 347,726 5,118 State and municipal obligations 16,412 178 — — 16,412 178 December 31, 2020 Less than 12 12 Consecutive Consecutive Months Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses Securities available-for-sale: Agency notes $ 22,409 $ 91 $ — $ — $ 22,409 $ 91 Pass-through MBS issued by GSEs 5,007 31 — — 5,007 31 Agency CMOs 6,563 30 4,954 46 11,517 76 The issuers of securities available-for-sale are primarily U.S. government-sponsored entities or agencies. The decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality. In accordance with the Company’s investment policy, corporate notes are rated "investment grade" at the time of purchase and the financials of the issuers are reviewed quarterly. It is likely that the Company will not be required to sell the securities before their anticipated recovery, and as such, the Company does not consider these securities to be other-than-temporarily-impaired at September 30, 2021. |
LOANS HELD FOR INVESTMENT, NET
LOANS HELD FOR INVESTMENT, NET | 9 Months Ended |
Sep. 30, 2021 | |
LOANS HELD FOR INVESTMENT, NET | |
LOANS HELD FOR INVESTMENT, NET | 8. The following table presents the loan categories for the period ended as indicated: (In thousands) September 30, 2021 December 31, 2020 One-to-four family residential and cooperative/condominium apartment $ 683,665 $ 184,989 Multifamily residential and residential mixed-use 3,468,262 2,758,743 Commercial real estate ("CRE") 3,814,437 1,878,167 Acquisition, development, and construction ("ADC") 285,379 156,296 Total real estate loans 8,251,743 4,978,195 Commercial and industrial ("C&I") 1,012,415 641,533 Other loans 20,713 2,316 Total 9,284,871 5,622,044 Allowance for credit losses (81,255) (41,461) Loans held for investment, net $ 9,203,616 $ 5,580,583 As a result of the Merger, the Company recorded $4.53 billion of loans held for investment on the Merger Date. As of September 30, 2021, included in C&I loans was $134.1 million of SBA PPP loans. There was $313.4 million of SBA PPP loans at December 31, 2020. These loans carry a 100% guarantee from the SBA and have no allowance for credit losses allocated to them based on the nature of the guarantee. In June 2021, the Company sold $596.2 million of SBA PPP loans and recorded a gain of $20.7 million in Gain on sale of SBA loans in the consolidated statements of income. The following tables present data regarding the allowance for credit losses activity for the periods indicated: At or for the Three Months Ended September 30, 2021 Real Estate Loans One-to-Four Family Multifamily Residential and Residential Cooperative/ and Condominium Residential Total Real Other (In thousands) Apartment Mixed-Use CRE ADC Estate C&I Loans Total Allowance for credit losses: Beginning balance $ 5,522 $ 10,285 $ 41,201 $ 5,158 $ 62,166 $ 30,095 $ 499 $ 92,760 Provision (credit) for credit losses 583 (1,998) (8,649) (139) (10,203) 1,943 946 (7,314) Charge-offs (1) (58) (2,952) — (3,011) (497) (768) (4,276) Recoveries — 78 3 — 81 4 — 85 Ending balance $ 6,104 $ 8,307 $ 29,603 $ 5,019 $ 49,033 $ 31,545 $ 677 $ 81,255 At or for the Three Months Ended September 30, 2020 Real Estate Loans One-to-Four Family Multifamily Residential and Residential Cooperative/ and Condominium Residential Total Real Other (In thousands) Apartment Mixed-Use CRE ADC Estate C&I Loans Total Allowance for credit losses: Beginning balance $ 671 $ 16,666 $ 9,859 $ 1,777 $ 28,973 $ 13,502 $ 17 $ 42,492 Provision (credit) for credit losses 134 3,468 2,162 274 6,038 (107) — 5,931 Charge-offs (6) (13) — — (19) — (1) (20) Recoveries — 89 — — 89 — — 89 Ending balance $ 799 $ 20,210 $ 12,021 $ 2,051 $ 35,081 $ 13,395 $ 16 $ 48,492 At or for the Nine Months Ended September 30, 2021 Real Estate Loans One-to-Four Family Multifamily Residential and Residential Cooperative/ and Condominium Residential Total Real Other Apartment Mixed-Use CRE ADC Estate C&I Loans Total Allowance for credit losses: Beginning balance, prior to the adoption of CECL $ 644 $ 17,016 $ 9,059 $ 1,993 $ 28,712 $ 12,737 $ 12 $ 41,461 Impact of adopting CECL 1,048 (8,254) 4,849 381 (1,976) (1,935) (8) (3,919) Adjusted beginning balance as of January 1, 2021 1,692 8,762 13,908 2,374 26,736 10,802 4 37,542 PCD Day 1 2,220 3,292 23,124 117 28,753 23,374 157 52,284 Provision (credit) for credit losses 2,212 (3,361) (4,068) 2,528 (2,689) 2,215 1,286 812 Charge-offs (20) (467) (3,365) — (3,852) (4,959) (773) (9,584) Recoveries — 81 4 — 85 113 3 201 Ending balance $ 6,104 $ 8,307 $ 29,603 $ 5,019 $ 49,033 $ 31,545 $ 677 $ 81,255 At or for the Nine Months Ended September 30, 2020 Real Estate Loans One-to-Four Family Multifamily Residential and Residential Cooperative/ and Condominium Residential Total Real Other Apartment Mixed-Use CRE ADC Estate C&I Loans Total Allowance for credit losses: Beginning balance $ 269 $ 10,142 $ 3,900 $ 1,244 $ 15,555 $ 12,870 $ 16 $ 28,441 Provision for credit losses 540 10,010 8,127 807 19,484 518 1 20,003 Charge-offs (10) (45) (6) — (61) — (1) (62) Recoveries — 103 — — 103 7 — 110 Ending balance $ 799 $ 20,210 $ 12,021 $ 2,051 $ 35,081 $ 13,395 $ 16 $ 48,492 The following table presents the amortized cost basis of loans on non-accrual status as of the period indicated: September 30, 2021 Non-accrual with Non-accrual with (In thousands) No Allowance Allowance Reserve One-to-four family residential and cooperative/condominium apartment $ - $ 4,938 $ 781 Multifamily residential and residential mixed-use 859 - - CRE 1,240 2,882 812 C&I - 23,727 11,191 Other - 374 371 Total $ 2,099 $ 31,921 $ 13,155 The Company did not recognize interest income on non-accrual loans during the three and nine-months ended September 30, 2021. The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method, prior to the adoption of ASC 326, as of the dates indicated: December 31, 2020 Real Estate Loans One-to-Four Family Multifamily Residential and Residential Cooperative/ and Condominium Residential Total Real Other (In thousands) Apartment Mixed-Use CRE ADC Estate C&I Loans Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 6,474 $ — $ 6,474 Collectively evaluated for impairment 644 17,016 9,059 1,993 28,712 6,263 12 34,987 Total ending allowance balance $ 644 $ 17,016 $ 9,059 $ 1,993 $ 28,712 $ 12,737 $ 12 $ 41,461 Loans: Individually evaluated for impairment $ — $ 1,863 $ 2,704 $ — $ 4,567 $ 12,502 $ — $ 17,069 Collectively evaluated for impairment 184,989 2,756,880 1,875,463 156,296 4,973,628 629,031 2,316 5,604,975 Total ending loans balance $ 184,989 $ 2,758,743 $ 1,878,167 $ 156,296 $ 4,978,195 $ 641,533 $ 2,316 $ 5,622,044 Impaired Loans (prior to the adoption of ASC 326) A loan is considered impaired when, based on then current information and events, it is probable that all contractual amounts due will not be collected in accordance with the terms of the loan. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays or shortfalls generally are not classified as impaired. Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Bank considers TDRs and all non-accrual loans, except non-accrual one-to-four family loans in less than the Federal National Mortgage Association (“FNMA”) Limits, to be impaired. Non-accrual one-to-four family loans equal to or less than the FNMA Limits, as well as all consumer loans, are considered homogeneous loan pools and are not required to be evaluated individually for impairment unless considered a TDR. Impairment is typically measured using the difference between the outstanding loan principal balance and either: 1) the likely realizable value of a note sale; 2) the fair value of the underlying collateral, net of likely disposal costs, if repayment is expected to come from liquidation of the collateral; or 3) the present value of estimated future cash flows (using the loan’s pre-modification rate for certain performing TDRs). If a TDR is substantially performing in accordance with its restructured terms, management will look to either the potential net liquidation proceeds of the underlying collateral or the present value of the expected cash flows from the debt service in measuring impairment (whichever is deemed most appropriate under the circumstances). If a TDR has re-defaulted, generally the likely realizable net proceeds from either a note sale or the liquidation of the collateral is considered when measuring impairment. Measured impairment is either charged off immediately or, in limited instances, recognized as an allocated reserve within the allowance for loan losses. The following tables summarize impaired loans with no related allowance recorded and with related allowance recorded as of the periods indicated (by collateral type within the real estate loan segment): December 31, 2020 Unpaid Principal Recorded Related (In thousands) Balance Investment (1) Allowance With no related allowance recorded: Multifamily residential and residential mixed-use $ 1,863 $ 1,863 $ — CRE 2,704 2,704 — Total with no related allowance recorded 4,567 4,567 — With an allowance recorded: C&I 12,502 12,502 6,474 Total with an allowance recorded 12,502 12,502 6,474 Total $ 17,069 $ 17,069 $ 6,474 (1) The recorded investment excludes net deferred costs due to immateriality. The following table presents information for impaired loans for the periods indicated: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Average Interest Average Interest Recorded Income Recorded Income Investment (1) Recognized (2) Investment (1) Recognized (2) With no related allowance recorded: One-to-four family residential, including condominium and cooperative apartment $ — $ — $ 10 $ 4 Multifamily residential and residential mixed-use 1,295 — 416 7 Commercial real estate and commercial mixed-use 1,525 — 2,688 54 Total with no related allowance recorded 2,820 — 3,114 65 With an allowance recorded: C&I 10,232 — 7,500 153 Total $ 13,052 $ — $ 10,614 $ 218 (1) The recorded investment excludes net deferred costs due to immateriality. (2) Cash basis interest and interest income recognized on accrual basis approximate each other. The following tables summarize the past due status of the Company’s investment in loans as of the dates indicated: September 30, 2021 Loans 90 Days or 30 to 59 60 to 89 More Past Due Days Days and Still Total Total (In thousands) Past Due Past Due Accruing Interest Non-accrual Past Due Current Loans Real estate: One-to-four family residential, including condominium and cooperative apartment $ 3,135 $ 1,245 $ 5,021 $ 4,938 $ 14,339 $ 669,326 $ 683,665 Multifamily residential and residential mixed-use 10,251 2,738 — 859 13,848 3,454,414 3,468,262 CRE 8,360 1,069 1,004 4,122 14,555 3,799,882 3,814,437 ADC 17,700 — — — 17,700 267,679 285,379 Total real estate 39,446 5,052 6,025 9,919 60,442 8,191,301 8,251,743 C&I 10,962 2,455 257 23,727 37,401 975,014 1,012,415 Other 730 2 — 374 1,106 19,607 20,713 Total $ 51,138 $ 7,509 $ 6,282 $ 34,020 $ 98,949 $ 9,185,922 $ 9,284,871 December 31, 2020 Loans 90 Days or 30 to 59 60 to 89 More Past Due Days Days and Still Total Total (In thousands) Past Due Past Due Accruing Interest Non-accrual Past Due Current Loans Real estate: One-to-four family residential, including condominium and cooperative apartment $ — $ — $ 44 $ 858 $ 902 $ 184,087 $ 184,989 Multifamily residential and residential mixed-use — — 437 1,863 2,300 2,756,443 2,758,743 CRE 15,351 — — 2,704 18,055 1,860,112 1,878,167 ADC — — — — — 156,296 156,296 Total real estate 15,351 — 481 5,425 21,257 4,956,938 4,978,195 C&I — 917 2,848 12,502 16,267 625,266 641,533 Other 8 1 — 1 10 2,306 2,316 Total $ 15,359 $ 918 $ 3,329 $ 17,928 $ 37,534 $ 5,584,510 $ 5,622,044 Accruing Loans 90 Days or More Past Due: The Company continued accruing interest on loans with an outstanding balance of $6.3 million at September 30, 2021, and loans with an outstanding balance of $3.3 million at December 31, 2020, all of which were 90 days or more past due on their respective contractual maturity dates. These loans continued to make monthly payments consistent with their initial contractual amortization schedule exclusive of the balloon payments due at maturity. These loans were well secured and/or were expected to be refinanced, and, therefore, remained on accrual status and were deemed performing assets at the dates indicated above. Collateral Dependent Loans: At September 30, 2021, the Company had collateral dependent loans which were individually evaluated to determine expected credit losses. Collateral dependent CRE loans totaled $53.2 million and had a related allowance for credit losses totaling $7.6 million at September 30, 2021. The loans were secured by real estate. Collateral dependent multi-family residential and residential mixed-use loans totaled $8.5 million and had a related allowance for credit losses totaling $0.6 million at September 30, 2021. The loans were secured by real estate. Collateral dependent C&I loans totaled $4.4 million and had a related allowance for credit losses totaling $0.7 million at September 30, 2021. The loans were secured by business assets. TDRs As of September 30, 2021, the Company had TDRs totaling $528 thousand. The Company has allocated $481 thousand of allowance for those loans at September 30, 2021, with no commitments to lend additional amounts. During the nine months ended September 30, 2021, TDR modifications included reduction of outstanding principal, extensions of maturity dates, or favorable interest rates and loan terms than the prevailing market interest rates and loan terms. During the three months ended September 30, 2021, the Company modified one CRE loan as a TDR, which subsequently paid off during the quarter. The following table presents the loans by category modified as TDRs that occurred during the nine months ended September 30, 2021: Modifications During the Nine Months Ended September 30, 2021 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment One-to-four family residential and cooperative/condominium apartment 1 $ 50 $ 50 Commercial real estate ("CRE") 1 10,000 10,000 Commercial and industrial ("C&I") 1 456 488 Total 3 $ 10,506 $ 10,538 There were no TDR charge-offs during the three and nine months ended September 30, 2021. TDRs did not have a material impact to the allowance for credit losses. Loan payment deferrals due to COVID-19 Consistent with regulatory guidance to work with borrowers during the unprecedented situation caused by the COVID-19 pandemic and as outlined in the CARES Act, the Company established a formal payment deferral program in April 2020 for borrowers that have been adversely affected by the pandemic. As of September 30, 2021, the Company had 17 loans, representing outstanding loan balances of $26.6 million, that were deferring full principal and interest (“P&I” deferrals). The table below presents the P&I deferrals as of September 30, 2021: September 30, 2021 Number of Loans Balance (1) % of Portfolio (Dollars in thousands) One-to-four family residential and cooperative/condominium apartment 10 $ 9,255 1.4 % CRE 1 3,487 0.1 C&I 6 13,861 1.4 Total 17 $ 26,603 0.3 (1) Amount excludes net deferred costs due to immateriality. Pursuant to guidance under Section 4013 of the CARES Act, a qualified loan modification, such as a payment deferral, is exempt from classification as a TDR as defined by GAAP. This applies if the loan was current as of December 31, 2019 and the modifications are related to arrangements that defer or delay the payment of principal or interest, or change the interest rate of the loan. This guidance was expected to expire on December 31, 2020. The 2021 Consolidated Appropriations Act, which was signed into law December of 2020, extended the exemption for TDR classification until the earlier of January 1, 2022 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak is lifted. Risk-ratings on COVID-19 loan deferrals are evaluated on an ongoing basis. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit structure, loan documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying them as to credit risk. This analysis includes all loans, such as multifamily residential, mixed-use residential ( i.e., i.e. Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date. Substandard. Doubtful. For the three and nine months ended September 30, 2021, there were $11.9 million and $66.5 million of sales of criticized loans, respectively. For the three and nine months ended September 30, 2020, there were $3.0 million and $10.0 million of sales of criticized loans, respectively. The following is a summary of the credit risk profile of loans by internally assigned grade as of the periods indicated, the years represent the year of origination for non-revolving loans: September 30, 2021 (In thousands) 2021 2020 2019 2018 2017 2016 and Prior Revolving Revolving-Term Total One-to-four family residential, and condominium/cooperative apartment: Pass $ 104,830 $ 93,315 $ 86,214 $ 79,981 $ 84,075 $ 143,807 $ 52,483 $ 11,162 $ 655,867 Special mention — — 337 756 345 2,168 846 1,089 5,541 Substandard — 1,461 2,048 862 2,206 14,691 — 966 22,234 Doubtful — — — 23 — — — — 23 Total one-to-four family residential, and condominium/cooperative apartment 104,830 94,776 88,599 81,622 86,626 160,666 53,329 13,217 683,665 Multifamily residential and residential mixed-use: Pass 426,164 347,900 493,077 193,738 373,965 1,329,688 5,111 825 3,170,468 Special mention — 12,550 14,551 — 11,842 22,378 — — 61,321 Substandard — — 35,886 27,265 51,680 118,179 3,463 — 236,473 Doubtful — — — — — — — — — Total multifamily residential and residential mixed-use 426,164 360,450 543,514 221,003 437,487 1,470,245 8,574 825 3,468,262 CRE: Pass 636,234 872,347 578,758 331,636 337,930 863,215 39,323 5,164 3,664,607 Special mention 5,354 2,384 — 4,191 11,109 15,416 — — 38,454 Substandard 2,335 1,752 7,110 39,892 19,733 40,448 — — 111,270 Doubtful — — 106 — — — — — 106 Total CRE 643,923 876,483 585,974 375,719 368,772 919,079 39,323 5,164 3,814,437 ADC: Pass 101,947 69,546 62,414 24,587 8,120 807 2,686 600 270,707 Special mention — — — 1,078 — — — — 1,078 Substandard — — — 13,500 — 94 — — 13,594 Doubtful — — — — — — — — — Total ADC 101,947 69,546 62,414 39,165 8,120 901 2,686 600 285,379 C&I: Pass 52,667 199,677 58,835 54,190 38,065 25,948 479,111 10,359 918,852 Special mention — 1,690 265 2,260 611 61 1,685 1,368 7,940 Substandard — 5,949 4,842 6,175 2,982 1,057 34,996 6,764 62,765 Doubtful — — 10,087 752 11,989 30 — — 22,858 Total C&I 52,667 207,316 74,029 63,377 53,647 27,096 515,792 18,491 1,012,415 Total: Pass 1,321,842 1,582,785 1,279,298 684,132 842,155 2,363,465 578,714 28,110 8,680,501 Special mention 5,354 16,624 15,153 8,285 23,907 40,023 2,531 2,457 114,334 Substandard 2,335 9,162 49,886 87,694 76,601 174,469 38,459 7,730 446,336 Doubtful — — 10,193 775 11,989 30 — — 22,987 Total Loans $ 1,329,531 $ 1,608,571 $ 1,354,530 $ 780,886 $ 954,652 $ 2,577,987 $ 619,704 $ 38,297 $ 9,264,158 December 31, 2020 Special (In thousands) Pass Mention Substandard Doubtful Total Real Estate: One-to-four family residential and condominium/cooperative apartment $ 183,293 $ — $ 1,696 $ — $ 184,989 Multifamily residential and residential mixed-use 2,523,258 56,400 179,085 — 2,758,743 CRE 1,831,712 13,861 32,594 — 1,878,167 ADC 142,796 13,500 — — 156,296 Total real estate 4,681,059 83,761 213,375 — 4,978,195 C&I 613,691 2,131 13,315 12,396 641,533 Total Real Estate and C&I $ 5,294,750 $ 85,892 $ 226,690 $ 12,396 $ 5,619,728 For other loans, the Company evaluates credit quality based on payment activity. Other loans that are 90 days or more past due are placed on non-accrual status, while all remaining other loans are classified and evaluated as performing. The following is a summary of the credit risk profile of other loans by internally assigned grade: (In thousands) September 30, 2021 December 31, 2020 Performing $ 20,339 $ 2,315 Non-accrual 374 1 Total $ 20,713 $ 2,316 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
LEASES | |
LEASES | 9 . As a result of the Merger, the Company acquired $45.6 million of operating lease assets and $45.3 million of operating lease liabilities on the Merger Date. During the nine months ended September 30, 2021, the Company elected to terminate three leases in connection with the combination of three branches into other locations, which resulted in a decrease to the Company’s operating lease liabilities of $3.7 million, and an early termination fee of $4.0 million. The early termination fee is reported in branch restructuring costs in the consolidated statements of income. The Company recognizes operating lease assets and corresponding lease liabilities related to its office facilities and retail branches. The operating lease assets represent the Company’s right to use an underlying asset for the lease term, and the lease liability represents the Company’s obligation to make lease payments over the lease term. The operating lease asset and lease liability are determined at the commencement date of the lease based on the present value of the lease payments. As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date. The Company made a policy election to exclude the recognition requirements of ASU 2016-02 to short-term leases, those leases with original terms of 12 months or less. Short-term lease payments are recognized in the income statement on a straight-line basis over the lease term. Certain leases may include one or more options to renew. The exercise of lease renewal options is typically at the Company’s discretion and are included in the operating lease liability if it is reasonably certain that the renewal option will be exercised. Certain real estate leases may contain lease and non-lease components, such as common area maintenance charges, real estate taxes, and insurance, which are generally accounted for separately and are not included in the measurement of the lease liability since they are generally able to be segregated. The Company does not sublease any of its leased properties. The Company does not lease properties from any related parties. Maturities of the Company’s operating lease liabilities at September 30, 2021 are as follows: Rent to be (In thousands) Capitalized 2021 $ 3,374 2022 11,006 2023 9,301 2024 9,186 2025 8,941 Thereafter 25,439 Total undiscounted lease payments 67,247 Less amounts representing interest (4,377) Operating lease liabilities $ 62,870 Other information related to operating leases was as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Operating lease cost $ 4,012 $ 1,636 $ 11,178 $ 4,867 Cash paid for amounts included in the measurement of operating lease liabilities 3,724 1,745 10,496 5,295 The weighted average remaining lease term at September 30, 2021 and December 31, 2020 was 6.9 years and 6.5 years, respectively. The weighted average discount rate at September 30, 2021 and December 31, 2020 was 1.82% and 3.23%, respectively. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2021 | |
DERIVATIVES AND HEDGING ACTIVITIES | |
DERIVATIVES AND HEDGING ACTIVITIES | 10. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loan portfolio. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. The Company engages in both cash flow hedges and freestanding derivatives. Cash Flow Hedges Cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company uses these types of derivatives to hedge the variable cash flows associated with existing or forecasted issuances of short-term borrowings. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (Loss) and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s debt. During the next twelve months, the Company estimates that an additional $356 thousand will be reclassified as an increase to interest expense. The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of twenty-four months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). During the three months ended September 30, 2021, the Company did not The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition as of the dates indicated. September 30, 2021 December 31, 2020 Notional Fair Value Fair Value Notional Fair Value Fair Value (Dollars in thousands) Count Amount Assets Liabilities Count Amount Assets Liabilities Included in derivative assets/(liabilities): Interest rate swaps related to FHLBNY advances 4 $ 150,000 $ 2,811 $ — — $ — $ — $ — Interest rate swaps related to FHLBNY advances — $ — $ — $ — 32 $ 655,000 $ — $ (18,442) The table below presents the effect of the cash flow hedge accounting on Accumulated Other Comprehensive Income (Loss) for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Gain (loss) recognized in other comprehensive income $ 225 $ 100 $ 3,767 $ (25,098) Gain recognized on termination of derivatives — — 16,505 — Loss reclassified from other comprehensive income into interest expense (38) (2,319) (902) (3,679) All cash flow hedges are recorded gross on the balance sheet. The cash flow hedges involve derivative agreements with third-party counterparties that contain provisions requiring the Bank to post cash collateral if the derivative exposure exceeds a threshold amount. As of September 30, 2021, the bank did not Freestanding Derivatives The Company maintains an interest-rate risk protection program for its loan portfolio in order to offer loan level derivatives with certain borrowers and to generate loan level derivative income. The Company enters into interest rate swap or interest rate floor agreements with borrowers. These interest rate derivatives are designed such that the borrower synthetically attains a fixed-rate loan, while the Company receives floating rate loan payments. The Company offsets the loan level interest rate swap exposure by entering into an offsetting interest rate swap or interest rate floor with an unaffiliated and reputable bank counterparty. These interest rate derivatives do not qualify as designated hedges, under ASU 815; therefore, each interest rate derivative is accounted for as a freestanding derivative. The notional amounts of the interest rate derivatives do not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate derivative agreements. The following tables reflect freestanding derivatives included in the Consolidated Statements of Financial Condition as of the dates indicated: September 30, 2021 Notional Fair Value Fair Value (In thousands) Count Amount Assets Liabilities Included in derivative assets/(liabilities): Loan level interest rate swaps with borrower 128 $ 818,370 $ 36,095 $ — Loan level interest rate swaps with borrower 61 439,198 — (7,414) Loan level interest rate floors with borrower 47 405,685 — (4,072) Loan level interest rate swaps with third-party counterparties 128 818,370 — (36,095) Loan level interest rate swaps with third-party counterparties 61 439,198 7,414 — Loan level interest rate floors with third-party counterparties 47 405,685 4,072 — December 31, 2020 Notional Fair Value Fair Value (In thousands) Count Amount Assets Liabilities Included in derivative assets/(liabilities): Loan level interest rate swaps with borrower 65 $ 570,277 $ 24,764 $ — Loan level interest rate floors with borrower 41 364,643 — (5,832) Loan level interest rate swaps with third-party counterparties 65 570,277 — (24,764) Loan level interest rate floors with third-party counterparties 41 364,643 5,832 — Loan level derivative income is recognized on the mark-to-market of the interest rate swap as a fair value adjustment at the time the transaction is closed. Total loan level derivative income is included in non-interest income as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Loan level derivative income $ 445 $ 1,544 $ 2,796 $ 5,201 The interest rate swap product with the borrower is cross collateralized with the underlying loan and therefore there is no posted collateral. Certain interest rate swap agreements with third-party counterparties contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount. As of September 30, 2021, posted collateral was $23.5 million. Credit Risk Related Contingent Features The Company’s agreements with each of its derivative counterparties state that if the Company defaults on any of its indebtedness, it could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty. The Company’s agreements with certain of its derivative counterparties state that if the Bank fails to maintain its status as a well-capitalized institution, the Bank could be required to terminate its derivative positions with the counterparty. As of September 30, 2021, 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 $24.6 million for those related to loan level derivatives. If the Company had breached any of the above provisions at September 30, 2021, it could have been required to settle its obligations under the agreements at the termination value with the respective counterparty. There were no provisions breached for the nine months ended September 30, 2021. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2021 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 11. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 Inputs Level 2 Inputs e.g. Level 3 Inputs – Assets and Liabilities Measured at Fair Value on a Recurring Basis Securities The Company’s marketable equity securities and available-for-sale securities are reported at fair value, which were determined utilizing prices obtained from independent parties. The valuations obtained are based upon market data, and often utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (obtained only from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain securities, additional inputs may be used or some market inputs may not be applicable. Prioritization of inputs may vary on any given day based on market conditions. All MBS, CMOs, treasury securities, agency notes, and state and municipal obligations available-for-sale are guaranteed either implicitly or explicitly by GSEs as of September 30, 2021 and December 31, 2020. In accordance with the Company’s investment policy, corporate securities are rated "investment grade" at the time of purchase and the financials of the issuers are reviewed quarterly. Obtaining market values as of September 30, 2021 and December 31, 2020 for these securities utilizing significant observable inputs was not difficult due to their liquid nature. Derivatives Derivatives represent interest rate swaps and estimated fair values are based on valuation models using observable market data as of the measurement date. The following tables present financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated, segmented by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair Value Measurements at September 30, 2021 Using Level 1 Level 2 Level 3 (In thousands) Total Inputs Inputs Inputs Financial Assets: Securities available-for-sale: Agency notes $ 81,018 $ — $ 81,018 $ — Treasury securities 247,696 — 247,696 — Corporate securities 126,833 — 126,833 — Pass-through MBS issued by GSEs 621,957 — 621,957 — Agency CMOs 590,426 — 590,426 — State and municipal obligations 41,133 — 41,133 — Derivative – cash flow hedges 2,811 — 2,811 — Derivative – freestanding derivatives, net 38,889 — 38,889 — Financial Liabilities: Derivative – freestanding derivatives, net 38,889 — 38,889 — Fair Value Measurements at December 31, 2020 Using Level 1 Level 2 Level 3 (In thousands) Total Inputs Inputs Inputs Financial Assets: Marketable equity securities (Registered mutual funds) Domestic equity mutual funds $ 1,769 $ 1,769 $ — $ — International equity mutual funds 468 468 — — Fixed income mutual funds 3,733 3,733 — — Securities available-for-sale: Agency notes 47,421 — 47,421 — Corporate securities 64,461 — 64,461 — Pass-through MBS issued by GSEs 143,483 — 143,483 — Agency CMOs 283,496 — 283,496 — Derivative – freestanding derivatives 30,596 — 30,596 — Financial Liabilities: Derivative – cash flow hedges 18,442 — 18,442 — Derivative – freestanding derivatives 30,596 — 30,596 — Assets and Liabilities Measured at Fair Value on a Non-recurring Basis Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis. That is, they are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a non-recurring basis include certain individually evaluated loans (or impaired loans prior to the adoption of ASC 326) reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. September 30, 2021 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) Individually evaluated loans $ 55,146 $ — $ — $ 55,146 Individually evaluated loans with an allowance for credit losses at September 30, 2021 had a carrying amount of $55.1 million, which is made up of the outstanding balance of $63.9 million, net of a valuation allowance of $8.8 million. Collateral dependent individually analyzed loans as of September 30, 2021 resulted in a credit loss recovery of $9.0 million and $8.7 million, which is included in the amounts reported in the consolidated statements of income for the three and nine months ended September 30, 2021, respectively. There were no collateral dependent impaired loans (prior to the adoption of the CECL Standard) with an allowance for credit losses at December 31, 2020. Financial Instruments Not Measured at Fair Value The methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note 24 to the Company’s consolidated financial statements included in the Annual Report on Form 10-K. The following tables present the carrying amounts and estimated fair values of financial instruments other than those measured at fair value on either a recurring or nonrecurring basis for the dates indicated, segmented by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair Value Measurements at September 30, 2021 Using Carrying Level 1 Level 2 Level 3 (In thousands) Amount Inputs Inputs Inputs Total Financial Assets: Cash and due from banks $ 629,011 $ 629,011 $ — $ — $ 629,011 Securities held-to-maturity 40,303 — 40,303 — 40,303 Loans held for investment, net 9,148,470 — — 9,212,454 9,212,454 Accrued interest receivable 43,284 — 4,228 39,056 43,284 Financial Liabilities: Savings, money market and checking accounts 9,657,821 9,657,821 — — 9,657,821 Certificates of Deposits ("CDs") 1,016,216 — 1,021,029 — 1,021,029 FHLBNY advances 25,000 — 25,015 — 25,015 Subordinated debt, net 197,142 — 203,355 — 203,355 Other short-term borrowings 2,629 2,629 — — 2,629 Accrued interest payable 1,630 — 1,630 — 1,630 Fair Value Measurements at December 31, 2020 Using Carrying Level 1 Level 2 Level 3 (In thousands) Amount Inputs Inputs Inputs Total Financial Assets: Cash and due from banks $ 243,603 $ 243,603 $ — $ — $ 243,603 Loans held for investment, net 5,580,583 — — 5,598,787 5,598,787 Accrued interest receivable 34,815 2 1,584 33,229 34,815 Financial Liabilities: Savings, money market and checking accounts 3,202,484 3,202,484 — — 3,202,484 CDs 1,322,638 — 1,328,554 — 1,328,554 FHLBNY advances 1,204,010 — 1,207,890 — 1,207,890 Subordinated debt, net 114,052 — 114,340 — 114,340 Other short-term borrowings 120,000 120,000 — — 120,000 Accrued interest payable 1,734 — 1,734 — 1,734 |
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2021 | |
OTHER INTANGIBLE ASSETS | |
OTHER INTANGIBLE ASSETS | 12. As a result of the Merger, the Company recorded $10.2 million of core deposit intangible assets and a $780 thousand non-compete agreement intangible asset on the Merger Date. The following table presents the carrying amount and accumulated amortization of intangible assets that are amortizable and arose from the Merger. There were no intangible assets at December 31, 2020. September 30, 2021 Core Deposit Non-complete (In thousands) Intangibles Agreement Total Gross carrying value $ 10,204 $ 780 $ 10,984 Accumulated amortization (1,427) (480) (1,907) Net carrying amount $ 8,777 $ 300 $ 9,077 Amortization expense recognized on intangible assets was $715 thousand and $1.9 million for the three and nine months ended September 30, 2021, respectively. There was no amortization expense recognized on intangible assets for the three or nine months ended September 30, 2020. Estimated amortization expense for the remainder of 2021 through 2025 and thereafter is as follows: (In thousands) Total 2021 $ 715 2022 1,878 2023 1,425 2024 1,163 2025 958 Thereafter 2,938 Total $ 9,077 |
FEDERAL HOME LOAN BANK OF NEW Y
FEDERAL HOME LOAN BANK OF NEW YORK ADVANCES | 9 Months Ended |
Sep. 30, 2021 | |
FEDERAL HOME LOAN BANK OF NEW YORK ADVANCES | |
FEDERAL HOME LOAN BANK OF NEW YORK ADVANCES | 13. The following tables present the contractual maturities and weighted average interest rates of FHLBNY advances for each of the next five years. There were no FHLBNY advances with an overnight contractual maturity at September 30, 2021 and December 31, 2020. There are no FHLBNY advances with contractual maturities after 2021 and 2022 at September 30, 2021 and December 31, 2020, respectively. September 30, 2021 (Dollars in thousands) Weighted Contractual Maturity Amount Average Rate 2021 $ 25,000 0.35 % Total FHLBNY advances $ 25,000 0.35 % December 31, 2020 (Dollars in thousands) Weighted Contractual Maturity Amount Average 2021 $ 1,144,010 0.52 % 2022 60,000 0.60 Total FHLBNY advances $ 1,204,010 0.53 % Each FHLBNY advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $4.25 billion and $2.15 billion of residential and commercial mortgage loans under a blanket lien arrangement at September 30, 2021 and December 31, 2020, respectively. Based on this collateral and the Company's holdings of FHLBNY stock, the Company is eligible to borrow up to a total of $3.71 billion at September 30, 2021. As part of the Merger, $216.3 million of FHLBNY advances were acquired on the Merger Date. During the three months ended September 30, 2021, the Company did not extinguish any FHLBNY advances. During the nine months ended September 30, 2021, the Company extinguished $209.0 million of FHLBNY advances that had a weighted average rate of 1.31%. The prepayment penalty expense was recognized as a $1.8 million loss on extinguishment of debt during the first nine months of 2021. There were no prepayments of FHLBNY advances during the three or nine months ended September 30, 2020. |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 9 Months Ended |
Sep. 30, 2021 | |
SUBORDINATED DEBENTURES. | |
SUBORDINATED DEBENTURES | 14. In connection with the Merger, the Company assumed $115.0 million in aggregate principal amount of the 4.50% Fixed-to-Floating Rate Subordinated Debentures due 2027 of Legacy Dime on the Merger Date. During the year ended December 31, 2017, the Legacy Dime issued $115.0 million of fixed-to-floating rate subordinated notes due June 2027, which become callable commencing on June 15, 2022. The notes will mature on June 15, 2027 (the “Maturity Date”). From and including June 13, 2017 until but excluding June 15, 2022, interest will be paid semi-annually in arrears on each June 15 and December 15 at a fixed annual interest rate equal to 4.50%. From and including June 15, 2022 to, but excluding, the Maturity Date or earlier redemption date, the interest rate shall reset quarterly to an annual interest rate equal to the then-current three-month LIBOR plus 266 basis points, payable quarterly in arrears. Debt issuance cost directly associated with subordinated debt offering was capitalized and netted with subordinated notes payable on the Consolidated Statements of Financial Condition. 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 $197.1 million at September 30, 2021 and $114.1 million at December 31, 2020. Interest expense related to the subordinated debt was $2.2 million and $1.3 million during the three months ended September 30, 2021 and 2020, respectively. Interest expense related to the subordinated debt was $6.3 million and $4.0 million during the nine months ended September 30, 2021 and 2020, respectively. The subordinated debentures are included in tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. |
RETIREMENT AND POSTRETIREMENT P
RETIREMENT AND POSTRETIREMENT PLANS | 9 Months Ended |
Sep. 30, 2021 | |
RETIREMENT AND POSTRETIREMENT PLANS | |
RETIREMENT AND POSTRETIREMENT PLANS | 15. As of September 30, 2021, the Company maintains one Legacy Dime employee benefit plan, the Retirement Plan of Dime Community Bank (the "Employee Retirement Plan"). The Company also maintains the two Bridge employee benefit plans that existed before the Merger: (i) the BNB Bank 401(k) Plan (the “401(k) Plan”) and (ii) the BNB Bank Pension Plan. The Dime Community Bank KSOP Plan (“Dime KSOP Plan”) was terminated by resolution of the Legacy Dime Board of Directors. The effective date of the Dime KSOP Plan termination was January 31, 2021, the day immediately prior to the closing of the Merger. As such, all participants were required to transfer their assets out of the Dime KSOP Plan. The 401(k) Plan is available to all former Dime employees that continue to be employed following the Merger Date, that meet eligibility requirements, and provides tax deferred salary deductions and alternative investment options. Under the provisions of the 401(k) plan, employee contributions are partially matched by the Bank as follows: 100% of each employee’s contributions up to 1% of each employee’s compensation plus 50% of each employee’s contributions over 1% but not in excess of 6% of each employee’s compensation for a maximum contribution of 3.5% of a participating employee’s compensation. Participants can invest their account balances into several investment alternatives. While the Company does not allow for the investment of plan contributions in the Company’s common stock, former Legacy Dime employees that continue to be employed following the Merger Date may rollover and hold shares in-kind held in the Dime KSOP Plan to the 401(k) plan and hold the shares in the 401(k) plan. The 401(k) plan also includes a discretionary profit-sharing component. The following table represents the components of net periodic benefit (credit) cost included in other non-interest expense, except for service cost which is reported in salaries and employee benefits expense, in the consolidated statements of income. Net expenses associated with these plans were comprised of the following components: Three Months Ended September 30, 2021 2020 BMP, Postretirement BNB Bank Employee Employee and Outside Director (In thousands) Pension Plan Retirement Plan Retirement Plan Retirement Plans Service cost $ 223 $ — $ — $ — Interest cost 302 183 10 241 Expected return on assets (1,244) (428) — (428) Unrecognized past service liability — — (2) — Amortization of unrealized loss 207 229 — 274 Net periodic benefit (credit) cost $ (512) $ (16) $ 8 $ 87 Nine Months Ended September 30, 2021 2020 BMP, Postretirement BNB Bank Employee Employee and Outside Director (In thousands) Pension Plan Retirement Plan Retirement Plan Retirement Plans Service cost $ 594 $ — $ — $ — Interest cost 854 549 30 723 Expected return on assets (3,473) (1,284) — (1,284) Unrecognized past service liability — — (6) — Amortization of unrealized loss 619 687 — 822 Net periodic (credit) cost $ (1,406) $ (48) $ 24 $ 261 There were no contributions to the BNB Bank Pension Plan or the Employee Retirement Plan for the nine months ended September 30, 2021. In connection with the Merger, the Outside Director Retirement Plan and the BMP were terminated resulting in lump sum payments to the participants in the amounts of $2.8 million for the Outside Director Retirement Plan and $6.2 million for the BMP. The total expense recognized as a curtailment loss during the three months ended March 31, 2021 was $1.5 million. During the year ended December 31, 2020, Legacy Dime approved the termination of the Postretirement Plan in anticipation of the Merger. During the three months ended March 31, 2021, the Company made gross lump-sum distributions totaling $11.6 million from the BMP. These distributions were satisfied by 88,081 shares of common stock with a market value of $2.4 million, held by the previous ESOP component of the BMP, of which 41,101 shares were returned to Treasury Stock to cover income tax liabilities, and cash of $9.2 million. As a result of the distribution, a non-cash tax benefit of $301 thousand was recognized as a discrete item in income tax expense in accordance to ASU 2016-09 for the difference between the market value and the cost basis of the common stock held by the BMP. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 16. Before the Merger, Bridge and Legacy Dime granted share-based awards under their respective share-based compensation plans, (collectively, the “Legacy Stock Plans”), which are both subject to the accounting requirements of ASC 718. In May 2021, the Company’s shareholders approved the Dime Community Bancshares, Inc. 2021 Equity Incentive Plan (the “2021 Equity Incentive Plan”) to provide the Company with sufficient equity compensation to meet the objectives of appropriately incentivizing its officers, other employees, and directors to execute our strategic plan to build shareholder value, while providing appropriate shareholder protections. The Company no longer makes grants under the Legacy Stock Plans. Awards outstanding under the Legacy Stock Plans will continue to remain outstanding and subject to the terms and conditions of the Legacy Stock Plans. At September 30, 2021, there were 1,123,639 shares reserved for issuance under the 2021 Equity Incentive Plan. In anticipation of the Merger, Legacy Dime accelerated and vested all unvested and outstanding share-based awards such that there were no outstanding awards as of December 31, 2020. In connection with the Merger, all outstanding stock options granted under Legacy Dime’s equity plans, were legally assumed by the combined company and adjusted so that its holder is entitled to receive a number of shares of Dime’s common stock equal to the product of (a) the number of shares of Legacy Dime common stock subject to such award multiplied by (b) the Exchange Ratio and (c) rounded, as applicable, to the nearest whole share, and otherwise subject to the same terms and conditions (including, without limitation, with respect to vesting conditions (taking into account any vesting that occurred at the Merger Date)). In connection with the Merger, all outstanding stock options and time-vesting restricted stock units of Bridge, which we refer to as the Bridge equity awards, which were outstanding immediately before the Merger Date continue to be awards in respect of Dime common stock following the Merger, subject to the same terms and conditions that were applicable to such awards before the Merger Date. Stock Option Awards The following table presents a summary of activity related to stock options granted under the Legacy Stock Plans, and changes during the period then ended: Weighted- Average Aggregate Weighted- Remaining Intrinsic Number of Average Exercise Contractual Value Options Price Years (In thousands) Options outstanding at January 1, 2021 28,842 $ 15.05 Options outstanding at January 1, 2021 as adjusted for conversion 18,685 23.23 Options acquired 180,020 35.39 Options exercised (17,102) 23.40 Options forfeited (29,421) 35.38 Options outstanding at September 30, 2021 152,182 $ 35.24 7.4 $ 18 Options vested and exercisable at September 30, 2021 152,182 $ 35.24 7.4 $ 18 Information related to stock options during each period is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Cash received for option exercise cost $ — $ — $ 396 $ 38 Income tax benefit recognized on stock option exercises — — — — Intrinsic value of options exercised — — 77 8 Restricted Stock Awards The Company has made RSA grants to outside Directors and certain officers under the Legacy Stock Plans and the 2021 Equity Incentive Plan. Typically, awards to outside Directors fully vest on the first anniversary of the grant date, while awards to officers vest over a pre-determined requisite period. All awards were made at the fair value of the Company’s common stock on the grant date. Compensation expense on all RSAs is based upon the fair value of the shares on the respective dates of the grant. The following table presents a summary of activity related to the RSAs granted, and changes during the period then ended: Weighted- Average Number of Grant-Date Shares Fair Value Unvested allocated shares outstanding at January 1, 2021 — $ — Shares acquired in the Merger 101,778 25.98 Shares granted 390,027 26.48 Shares vested (9,838) 25.41 Shares forfeited (33,089) 25.73 Unvested allocated shares at September 30, 2021 448,878 $ 26.45 Information related to RSAs during each period is as follows: Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2021 2020 2021 2020 Compensation expense recognized $ 1,454 $ 444 $ 3,804 $ 1,311 Income tax expense recognized on vesting of RSA — (38) (86) (95) As of September 30, 2021, there was $8.3 million of total unrecognized compensation cost related to unvested RSAs to be recognized over a weighted-average period of 2.8 years. Performance Based Share Awards The Company maintained a long-term incentive award program (“LTIP”) for certain officers, which meets the criteria for equity-based accounting. For each award, threshold (50% of target), target (100% of target) and stretch (150% of target) opportunities are eligible to be earned over a three-year performance period based on the Company’s relative performance on certain goals that were established at the onset of the performance period and cannot be altered subsequently. Shares of common stock are issued on the grant date and held as unvested stock awards until the end of the performance period. Shares are issued at the stretch opportunity in order to ensure that an adequate number of shares are allocated for shares expected to vest at the end of the performance period. At December 31, 2020, Legacy Dime modified certain PSAs to accelerate the vesting of all outstanding awards in connection with the Merger. There were no outstanding PSAs at December 31, 2020. This plan continued into 2021, and as of September 30, 2021, 38,948 shares have been granted. The following table presents a summary of activity related to the PSAs granted, and changes during the period then ended: Weighted- Average Number of Grant-Date Shares Fair Value Maximum aggregate share payout at January 1, 2021 — $ — Shares granted 38,948 31.40 Maximum aggregate share payout at September 30, 2021 38,948 $ 31.40 Minimum aggregate share payout — — Expected aggregate share payout 25,963 $ 31.40 Information related to PSAs during each period is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Compensation expense recognized $ 81 $ 210 $ 81 $ 362 Income tax expense recognized on vesting of LTIP — — — — As of September 30, 2021, there was $1.0 million of total unrecognized compensation cost related to unvested PSAs. Sales Incentive Awards Legacy Dime maintained a sales incentive award program for certain officers, which meets the criteria for equity-based accounting. For each quarter an individual can earn their shares based on their sales performance in that quarter. The shares then vest one year from the quarter in which they are earned. Shares of common stock are issued on the grant date and held as unvested stock awards until the end of the performance period. They are issued at the maximum opportunity in order to ensure that an adequate number of shares are allocated for shares expected to vest at the end of the performance period. At December 31, 2020, the Legacy Dime modified certain performance based share awards to accelerate the vesting of all outstanding awards in connection with the Merger. There were no outstanding sales incentive share awards at December 31, 2020. Total compensation expense of $150 thousand was recognized during the three-month period ended September 30, 2020, and $280 thousand for the nine-month period ended September 30, 2020. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
INCOME TAXES | |
INCOME TAXES | 17. During the three months ended September 30, 2021 and 2020, the Company’s consolidated effective tax rates were 27.5% and 21.9%, respectively. During the nine months ended September 30, 2021 and 2020, the Company's consolidated effective tax rates were 29.2% and 21.7%, respectively. There were no significant unusual income tax items during the nine-month periods ended September 30, 2021 or 2020. |
MERGER RELATED EXPENSES
MERGER RELATED EXPENSES | 9 Months Ended |
Sep. 30, 2021 | |
MERGER RELATED EXPENSES | |
MERGER RELATED EXPENSES | 18. Merger-related expenses were recorded in the consolidated statements of income as a component of non-interest expense and include costs relating to the Merger, as described in Note 2. Merger. These charges represent one-time costs associated with merger activities and do not represent ongoing costs of the fully integrated combined organization. Accounting guidance requires that merger-related transactional and restructuring costs incurred by the Company be charged to expense as incurred. Costs associated with employee severance and other merger-related compensation expense incurred in connection with the Merger totaled $1.1 million and $15.0 million for the three and nine months ended September 30, 2021, respectively, and were recorded in merger expenses and transaction costs expense in the consolidated statements of income. Transaction costs (inclusive of costs to terminate leases) in connection with the Merger totaled $1.4 million and $27.3 million, respectively, for the three and nine months ended September 30, 2021, and were recorded in merger expenses and transaction costs in the consolidated statements of income. There were no costs associated with employee severance and other merger-related compensation expense incurred in connection with the Merger with Bridge for the three and nine months ended September 30, 2020, respectively. Transaction costs in connection with the Merger totaled $769 thousand and $2.4 million for the three and nine months ended September 30, 2020, respectively, and were recorded in merger expenses and transaction costs in the consolidated statements of income. |
BRANCH RESTRUCTURING COSTS
BRANCH RESTRUCTURING COSTS | 9 Months Ended |
Sep. 30, 2021 | |
BRANCH RESTRUCTURING COSTS | |
BRANCH RESTRUCTURING COSTS | 19. On June 29, 2021, the Company issued a press release announcing that the Bank planned to combine five branch locations into other existing branches. The combinations took place in October 2021. Costs associated with early lease terminations and accelerated depreciation of fixed assets totaled $4.5 million and $6.2 million for the three and nine months ended September 30, 2021, and were recorded in branch restructuring costs in the consolidated statements of income. There were no branch restructuring costs for the three or nine months periods ended September 30, 2020. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF PRESENTATION | |
Risks and Uncertainties | Risks and Uncertainties In March 2020, the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which has spread to most countries, including the United States. The pandemic has adversely affected economic activity globally, nationally and locally. In March 2020, the United States declared a National Public Health Emergency in response to the COVID-19 pandemic. In an effort to mitigate the spread of COVID-19, local state governments, including New York (in which the Bank has retail banking offices), have taken preventative or protective actions such as travel restrictions, advising or requiring individuals to limit or forego their time outside of their homes, and other forced closures for certain types of non-essential businesses. The impact of these actions is expected to continue to have an adverse impact on the economies and financial markets in the United States. The Coronavirus Aid, Relief and Economic Security (“CARES”) Act was signed into law at the end of March 2020. The CARES Act is intended to provide relief and lessen a severe economic downturn. The stimulus package includes direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The package also includes extensive emergency funding for hospitals and healthcare providers. In December 2020, the 2021 Consolidated Appropriations Act was signed into law to provide additional relief. It is possible that there will be continued material, adverse impacts to significant estimates, asset valuations, and business operations, including intangible assets, investments, loans, deferred tax assets, and derivative counter party risk. |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF ACCOUNTING POLICIES | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary for a fair presentation of the Company’s financial condition as of September 30, 2021 and December 31, 2020, the results of operations and statements of comprehensive income for the three and nine months ended September 30, 2021 and 2020, the changes in stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 30, 2021 and 2020. Please see "Part I - Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies" for a discussion of areas in the accompanying unaudited condensed consolidated financial statements utilizing significant estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Allowance for Credit Losses – The adoption of the CECL Standard resulted in an initial decrease of $3.9 million to the allowance for credit losses and an increase of $1.4 million to the reserve for unfunded commitments in other liabilities. The after-tax cumulative-effect adjustment of $1.7 million was recorded in retained earnings as of January 1, 2021. There were no held-to-maturity securities as of January 1, 2021 and, therefore, no impact from the adoption of the CECL Standard. The allowance for credit losses is a valuation allowance that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loan losses are charged against the allowance when management believes it has confirmed the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. The CECL Standard 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. Management estimates the allowance for credit losses for the Company’s loan portfolio required using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historically observed credit loss experience of peer banks within our geography provide the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or terms as well as changes in environmental conditions, such as changes in unemployment rates, gross domestic product, and real estate pricing. Management evaluates the adequacy of the allowance on a quarterly basis. Accrued interest receivable is excluded from the estimate of credit losses. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following portfolio segments and measures the allowance for credit losses using the following methods: One-to-four family residential, including condominium and cooperative apartment loans - Multifamily residential and residential mixed-use loans - Commercial real estate and commercial mixed-use loans - Acquisition, development, and construction loans Commercial, Industrial and Agricultural Loans - Other Loans As allowed by ASC 326, the Entity elected to maintain pools of loans accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether modifications to individual acquired financial assets accounted for in pools were troubled debt restructurings (“TDRs”) as of the date of adoption. TDRs Loans that do not share risk characteristics are evaluated on an individual basis based on various factors. Loans evaluated individually are not included in the collective evaluation. Factors that may be considered are borrower delinquency trends and non-accrual status, probability of foreclosure or note sale, changes in the borrower’s circumstances or cash collections, borrower’s industry, or other facts and circumstances of the loan or collateral. Individually Evaluated Loans with an ACL and Other Real Estate Owned 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. The fair value of non-real estate collateral, which includes inventory, may be determined based on an appraisal, net book value per the borrower’s financial statements, aging reports, or by reference to market activity, 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. For non-collateral-dependent loans, ACL is measured based on the difference between the present value of expected cash flows and the amortized cost basis of the loan as of the measurement date. 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. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures – The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures, which is included in other liabilities on the consolidated statements of financial condition, is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which is the same as the expected loss factor as determined based on the corresponding portfolio segment. Loans acquired in a business combination – A purchased financial asset that does not qualify as a PCD asset is accounted for similar to an originated financial asset. Generally, this means that an entity recognizes the allowance for credit losses for non-PCD assets through net income at the time of acquisition. In addition, both the credit discount and non-credit discount or premium resulting from acquiring a pool of purchased financial assets that do not qualify as PCD assets shall be allocated to each individual asset. This combined discount or premium shall be accreted to interest income using the effective yield method. For further discussion of our loan accounting and acquisitions, see Note 2 – Merger and Note 8 – Loans. 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 (“GSEs”), 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, the Company did not record an allowance for expected credit losses on its securities issued by GSEs at September 30, 2021. Accrued interest receivable is excluded from the estimate of credit losses. Available-for-sale debt securities and the allowance for credit losses For available-for-sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes in the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to 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”). Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the collectability of an available-for-sale security is confirmed or when the criteria regarding intent or requirement to sell is met. Accrued interest receivable is excluded from the estimate of credit losses. |
MERGER (Tables)
MERGER (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
MERGER | |
Schedule of Bridge and legacy Dime common stock | Dime Community Bancshares, Inc. Ownership and Market Value Number of Market Value at Bridge Percentage $24.43 Bridge (Dollars and shares in thousands) Outstanding Shares Ownership Share Price Bridge shareholders 19,993 48.5% $ 488,420 Legacy Dime shareholders 21,233 51.5% 518,720 Total 41,226 100.0% $ 1,007,140 |
Schedule of hypothetical number of shares | Hypothetical Legacy Dime Ownership Number of Legacy Dime Percentage (Shares in thousands) Outstanding Shares Ownership Bridge shareholders 30,853 48.5% Legacy Dime shareholders 32,767 51.5% Total 63,620 100.0% |
Schedule of purchase price | (Dollars and shares in thousands) Number of hypothetical Legacy Dime shares issued to Bridge shareholders 30,853 Legacy Dime market price per share as of February 1, 2021 $ 15.90 Purchase price determination of hypothetical Legacy Dime shares issued to Bridge shareholders $ 490,560 Value of Bridge stock options hypothetically converted to options to acquire shares of Legacy Dime common stock 643 Cash in lieu of fractional shares 7 Purchase price consideration $ 491,210 |
Schedule of purchase price allocation | (In thousands) Purchase price consideration $ 491,210 Fair value of assets acquired: Cash and due from banks 715,988 Securities available-for-sale 651,997 Loans held for sale 10,000 Loans held for investment 4,531,640 Premises and fixed assets 37,881 Restricted stock 23,362 BOLI 94,085 Other intangible assets 10,984 Operating lease assets 45,603 Other assets 117,474 Total assets acquired 6,239,014 Fair value of liabilities assumed: Deposits 5,405,575 Other short-term borrowings 216,298 Subordinated debt 83,200 Operating lease liabilities 45,285 Other liabilities 97,147 Total liabilities assumed 5,847,505 Fair value of net identifiable assets 391,509 Goodwill resulting from Merger $ 99,701 |
Schedule of loans acquired | (In thousands) PCD loans: Unpaid principal balance $ 295,306 Non-credit discount at acquisition (9,050) Unpaid principal balance, net 286,256 Allowance for credit losses at acquisition (52,284) Fair value at acquisition 233,972 Non-PCD loans: Unpaid principal balance 4,289,236 Premium at acquisition 8,432 Fair value at acquisition 4,297,668 Total fair value at acquisition $ 4,531,640 |
Schedule of supplemental disclosures of cash flow information | (In thousands) Business combination: Fair value of tangible assets acquired $ 6,228,030 Goodwill, core deposit intangible and other intangible assets acquired 110,685 Liabilities assumed 5,847,505 Purchase price consideration 491,210 |
Schedule of pro forma amount | Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands except per share amounts) 2021 2020 2021 2020 Net interest income $ 93,316 $ 86,818 $ 274,499 $ 252,455 Non-interest income 9,728 12,939 33,240 33,030 Net income 39,978 29,971 92,782 72,015 Net income available to common shareholders 37,700 27,791 86,390 68,169 Earnings per share: Basic 0.93 0.68 2.11 1.66 Diluted 0.93 0.68 2.11 1.66 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS). | |
Activity in Accumulated Other Comprehensive Income (Loss), Net of Tax | Activity in accumulated other comprehensive income (loss), net of tax, was as follows: Total Accumulated Securities Defined Other Available- Benefit Comprehensive (In thousands) for-Sale Plans Derivatives Income (Loss) Balance as of January 1, 2021 $ 12,694 $ (6,086) $ (12,532) $ (5,924) Other comprehensive (loss) income before reclassifications (10,378) 2,706 13,850 6,178 Amounts reclassified from accumulated other comprehensive loss (826) (1,082) 612 (1,296) Net other comprehensive (loss) income during the period (11,204) 1,624 14,462 4,882 Balance as of September 30, 2021 $ 1,490 $ (4,462) $ 1,930 $ (1,042) Balance as of January 1, 2020 $ 4,621 $ (6,024) $ (4,537) $ (5,940) Other comprehensive income (loss) before reclassifications 10,783 423 (17,150) (5,944) Amounts reclassified from accumulated other comprehensive loss (2,302) 133 2,514 345 Net other comprehensive income (loss) during the period 8,481 556 (14,636) (5,599) Balance as of September 30, 2020 $ 13,102 $ (5,468) $ (19,173) $ (11,539) |
Other Comprehensive Income (Loss) | The before and after-tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below for the periods indicated. Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Change in unrealized holding gain or loss on securities available-for-sale: Change in net unrealized gain or loss during the period $ (8,654) $ 1,716 $ (15,222) $ 15,769 Reclassification adjustment for net gains included in net gain on securities and other assets — (215) (1,207) (3,357) Net change (8,654) 1,501 (16,429) 12,412 Tax (benefit) expense (2,714) 475 (5,226) 3,931 Net change in unrealized holding gain or loss on securities available-for-sale, net of reclassification adjustments and tax (5,940) 1,026 (11,203) 8,481 Change in pension and other postretirement obligations: Reclassification adjustment for expense included in other expense (735) 4 (1,595) 194 Reclassification adjustment for curtailment loss — — 1,543 — Change in the net actuarial gain or loss 941 267 2,470 619 Net change 206 271 2,418 813 Tax expense 65 86 795 257 Net change in pension and other postretirement obligations 141 185 1,623 556 Change in unrealized gain or loss on derivatives: Change in net unrealized gain or loss during the period 225 100 3,767 (25,098) Reclassification adjustment for loss included in loss on termination of derivatives — — 16,505 — Reclassification adjustment for expense included in interest expense 38 2,319 902 3,679 Net change 263 2,419 21,174 (21,419) Tax expense (benefit) 82 766 6,712 (6,783) Net change in unrealized gain or loss on derivatives, net of reclassification adjustments and tax 181 1,653 14,462 (14,636) Other comprehensive (loss) income, net of tax $ (5,618) $ 2,864 $ 4,882 $ (5,599) |
EARNINGS PER COMMON SHARE ("E_2
EARNINGS PER COMMON SHARE ("EPS") (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
EARNINGS PER COMMON SHARE ("EPS") | |
Reconciliation of Numerators and Denominators of Basic and Diluted EPS | The following is a reconciliation of the numerators and denominators of basic and diluted EPS for the periods presented: Three Months Ended Nine Months Ended September 30, September 30, (In thousands except share and per share amounts) 2021 2020 2021 2020 Net income available to common stockholders $ 36,573 $ 14,046 $ 63,174 $ 34,264 Less: Dividends paid and earnings allocated to participating securities (437) (83) (811) (195) Income attributable to common stock $ 36,136 $ 13,963 $ 62,363 $ 34,069 Weighted average common shares outstanding, including participating securities 40,915,012 21,378,332 38,979,259 21,848,184 Less: weighted average participating securities (489,274) (187,781) (405,102) (191,438) Weighted average common shares outstanding 40,425,738 21,190,551 38,574,157 21,656,746 Basic EPS $ 0.89 $ 0.66 $ 1.62 $ 1.57 Income attributable to common stock $ 36,136 $ 13,963 $ 62,363 $ 34,069 Weighted average common shares outstanding 40,425,738 21,190,551 38,574,157 21,656,746 Weighted average common equivalent shares outstanding 423 133,636 700 134,334 Weighted average common and equivalent shares outstanding 40,426,161 21,324,187 38,574,857 21,791,080 Diluted EPS $ 0.89 $ 0.65 $ 1.62 $ 1.56 |
INVESTMENT AND MORTGAGE-BACKE_2
INVESTMENT AND MORTGAGE-BACKED SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | |
Major Categories of Securities Owned by Entity | September 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Securities available-for-sale: Agency notes $ 82,475 $ — $ (1,457) $ 81,018 Treasury securities 248,173 5 (482) 247,696 Corporate securities 122,476 4,758 (401) 126,833 Pass-through MBS issued by GSEs 622,225 6,005 (6,273) 621,957 Agency Collateralized Mortgage Obligations ("CMOs") 590,385 5,159 (5,118) 590,426 State and municipal obligations 41,158 153 (178) 41,133 Total securities available-for-sale $ 1,706,892 $ 16,080 $ (13,909) $ 1,709,063 September 30, 2021 Gross Gross Amortized Unrecognized Unrecognized Fair (In thousands) Cost Gains Losses Value Securities held-to-maturity: Pass-through MBS issued by GSEs $ 25,325 $ — $ — $ 25,325 Agency Collateralized Mortgage Obligations ("CMOs") 14,978 — — 14,978 Total securities held-to-maturity $ 40,303 $ — $ — $ 40,303 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Securities available-for-sale: Agency notes $ 47,500 $ 12 $ (91) $ 47,421 Corporate securities 62,021 2,440 — 64,461 Pass-through MBS issued by GSEs 135,842 7,672 (31) 143,483 Agency CMOs 274,898 8,674 (76) 283,496 Total securities available-for-sale $ 520,261 $ 18,798 $ (198) $ 538,861 |
Schedule of amortized cost and fair value of debt securities | September 30, 2021 Amortized Fair (In thousands) Cost Value Available-for-sale Within one year $ 1,346 $ 1,351 One to five years 270,069 269,665 Five to ten years 209,938 212,881 Beyond ten years 12,929 12,783 Pass-through MBS issued by GSEs and agency CMO 1,212,610 1,212,383 Total $ 1,706,892 $ 1,709,063 Held-to-maturity Pass-through MBS issued by GSEs and agency CMO $ 40,303 $ 40,303 Total $ 40,303 $ 40,303 |
Summary of Sale of Available-for-sale Securities | Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Agency Notes: Proceeds $ — $ — $ — $ 273 Gross gains — — — — Tax expense on gain — — — — Gross losses — — — — Tax benefit on loss — — — — Corporate Securities: Proceeds — — 50,273 25,403 Gross gains — — 729 1,344 Tax expense on gain — — 232 423 Gross losses — — 41 — Tax benefit on loss — — 13 — Pass through MBS issued by GSEs: Proceeds — 5,987 26,823 39,182 Gross gains — 215 187 2,005 Tax expense on gain — 67 59 630 Gross losses — — 35 — Tax benefit on loss — — 11 — Agency CMOs: Proceeds — — 41,324 4,199 Gross gains — — 268 8 Tax expense on gain — — 85 3 Gross losses — — 44 — Tax benefit on loss — — 14 — State and municipal obligations: Proceeds — — 19,657 — Gross gains — — 143 — Tax expense on gain — — 45 — Gross losses — — — — Tax benefit on loss — — — — |
Sales of Marketable Equity Securities | Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Proceeds: Marketable equity securities $ — $ 137 $ — $ 410 |
Gross Unrealized Losses and Fair Value of Investment Securities by Investment Category and Length of Time in a Continuous Unrealized Loss Position | September 30, 2021 Less than 12 12 Consecutive Consecutive Months Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses Securities available-for-sale: Agency notes $ 81,018 $ 1,457 $ — $ — $ 81,018 $ 1,457 Treasury securities 231,984 482 — — 231,984 482 Corporate securities 17,863 401 — — 17,863 401 Pass-through MBS issued by GSEs 446,864 6,273 — — 446,864 6,273 Agency CMOs 347,726 5,118 — — 347,726 5,118 State and municipal obligations 16,412 178 — — 16,412 178 December 31, 2020 Less than 12 12 Consecutive Consecutive Months Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Value Losses Value Losses Value Losses Securities available-for-sale: Agency notes $ 22,409 $ 91 $ — $ — $ 22,409 $ 91 Pass-through MBS issued by GSEs 5,007 31 — — 5,007 31 Agency CMOs 6,563 30 4,954 46 11,517 76 |
LOANS HELD FOR INVESTMENT, NET
LOANS HELD FOR INVESTMENT, NET (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
LOANS HELD FOR INVESTMENT, NET | |
Loan Categories | The following table presents the loan categories for the period ended as indicated: (In thousands) September 30, 2021 December 31, 2020 One-to-four family residential and cooperative/condominium apartment $ 683,665 $ 184,989 Multifamily residential and residential mixed-use 3,468,262 2,758,743 Commercial real estate ("CRE") 3,814,437 1,878,167 Acquisition, development, and construction ("ADC") 285,379 156,296 Total real estate loans 8,251,743 4,978,195 Commercial and industrial ("C&I") 1,012,415 641,533 Other loans 20,713 2,316 Total 9,284,871 5,622,044 Allowance for credit losses (81,255) (41,461) Loans held for investment, net $ 9,203,616 $ 5,580,583 |
Activity in Allowance for Loan Losses | The following tables present data regarding the allowance for credit losses activity for the periods indicated: At or for the Three Months Ended September 30, 2021 Real Estate Loans One-to-Four Family Multifamily Residential and Residential Cooperative/ and Condominium Residential Total Real Other (In thousands) Apartment Mixed-Use CRE ADC Estate C&I Loans Total Allowance for credit losses: Beginning balance $ 5,522 $ 10,285 $ 41,201 $ 5,158 $ 62,166 $ 30,095 $ 499 $ 92,760 Provision (credit) for credit losses 583 (1,998) (8,649) (139) (10,203) 1,943 946 (7,314) Charge-offs (1) (58) (2,952) — (3,011) (497) (768) (4,276) Recoveries — 78 3 — 81 4 — 85 Ending balance $ 6,104 $ 8,307 $ 29,603 $ 5,019 $ 49,033 $ 31,545 $ 677 $ 81,255 At or for the Three Months Ended September 30, 2020 Real Estate Loans One-to-Four Family Multifamily Residential and Residential Cooperative/ and Condominium Residential Total Real Other (In thousands) Apartment Mixed-Use CRE ADC Estate C&I Loans Total Allowance for credit losses: Beginning balance $ 671 $ 16,666 $ 9,859 $ 1,777 $ 28,973 $ 13,502 $ 17 $ 42,492 Provision (credit) for credit losses 134 3,468 2,162 274 6,038 (107) — 5,931 Charge-offs (6) (13) — — (19) — (1) (20) Recoveries — 89 — — 89 — — 89 Ending balance $ 799 $ 20,210 $ 12,021 $ 2,051 $ 35,081 $ 13,395 $ 16 $ 48,492 At or for the Nine Months Ended September 30, 2021 Real Estate Loans One-to-Four Family Multifamily Residential and Residential Cooperative/ and Condominium Residential Total Real Other Apartment Mixed-Use CRE ADC Estate C&I Loans Total Allowance for credit losses: Beginning balance, prior to the adoption of CECL $ 644 $ 17,016 $ 9,059 $ 1,993 $ 28,712 $ 12,737 $ 12 $ 41,461 Impact of adopting CECL 1,048 (8,254) 4,849 381 (1,976) (1,935) (8) (3,919) Adjusted beginning balance as of January 1, 2021 1,692 8,762 13,908 2,374 26,736 10,802 4 37,542 PCD Day 1 2,220 3,292 23,124 117 28,753 23,374 157 52,284 Provision (credit) for credit losses 2,212 (3,361) (4,068) 2,528 (2,689) 2,215 1,286 812 Charge-offs (20) (467) (3,365) — (3,852) (4,959) (773) (9,584) Recoveries — 81 4 — 85 113 3 201 Ending balance $ 6,104 $ 8,307 $ 29,603 $ 5,019 $ 49,033 $ 31,545 $ 677 $ 81,255 At or for the Nine Months Ended September 30, 2020 Real Estate Loans One-to-Four Family Multifamily Residential and Residential Cooperative/ and Condominium Residential Total Real Other Apartment Mixed-Use CRE ADC Estate C&I Loans Total Allowance for credit losses: Beginning balance $ 269 $ 10,142 $ 3,900 $ 1,244 $ 15,555 $ 12,870 $ 16 $ 28,441 Provision for credit losses 540 10,010 8,127 807 19,484 518 1 20,003 Charge-offs (10) (45) (6) — (61) — (1) (62) Recoveries — 103 — — 103 7 — 110 Ending balance $ 799 $ 20,210 $ 12,021 $ 2,051 $ 35,081 $ 13,395 $ 16 $ 48,492 The following table presents the amortized cost basis of loans on non-accrual status as of the period indicated: September 30, 2021 Non-accrual with Non-accrual with (In thousands) No Allowance Allowance Reserve One-to-four family residential and cooperative/condominium apartment $ - $ 4,938 $ 781 Multifamily residential and residential mixed-use 859 - - CRE 1,240 2,882 812 C&I - 23,727 11,191 Other - 374 371 Total $ 2,099 $ 31,921 $ 13,155 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method, prior to the adoption of ASC 326, as of the dates indicated: December 31, 2020 Real Estate Loans One-to-Four Family Multifamily Residential and Residential Cooperative/ and Condominium Residential Total Real Other (In thousands) Apartment Mixed-Use CRE ADC Estate C&I Loans Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 6,474 $ — $ 6,474 Collectively evaluated for impairment 644 17,016 9,059 1,993 28,712 6,263 12 34,987 Total ending allowance balance $ 644 $ 17,016 $ 9,059 $ 1,993 $ 28,712 $ 12,737 $ 12 $ 41,461 Loans: Individually evaluated for impairment $ — $ 1,863 $ 2,704 $ — $ 4,567 $ 12,502 $ — $ 17,069 Collectively evaluated for impairment 184,989 2,756,880 1,875,463 156,296 4,973,628 629,031 2,316 5,604,975 Total ending loans balance $ 184,989 $ 2,758,743 $ 1,878,167 $ 156,296 $ 4,978,195 $ 641,533 $ 2,316 $ 5,622,044 |
Impaired Real Estate Loans | The following tables summarize impaired loans with no related allowance recorded and with related allowance recorded as of the periods indicated (by collateral type within the real estate loan segment): December 31, 2020 Unpaid Principal Recorded Related (In thousands) Balance Investment (1) Allowance With no related allowance recorded: Multifamily residential and residential mixed-use $ 1,863 $ 1,863 $ — CRE 2,704 2,704 — Total with no related allowance recorded 4,567 4,567 — With an allowance recorded: C&I 12,502 12,502 6,474 Total with an allowance recorded 12,502 12,502 6,474 Total $ 17,069 $ 17,069 $ 6,474 (1) The recorded investment excludes net deferred costs due to immateriality. The following table presents information for impaired loans for the periods indicated: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Average Interest Average Interest Recorded Income Recorded Income Investment (1) Recognized (2) Investment (1) Recognized (2) With no related allowance recorded: One-to-four family residential, including condominium and cooperative apartment $ — $ — $ 10 $ 4 Multifamily residential and residential mixed-use 1,295 — 416 7 Commercial real estate and commercial mixed-use 1,525 — 2,688 54 Total with no related allowance recorded 2,820 — 3,114 65 With an allowance recorded: C&I 10,232 — 7,500 153 Total $ 13,052 $ — $ 10,614 $ 218 (1) The recorded investment excludes net deferred costs due to immateriality. (2) Cash basis interest and interest income recognized on accrual basis approximate each other. |
Past Due Financing Receivables | The following tables summarize the past due status of the Company’s investment in loans as of the dates indicated: September 30, 2021 Loans 90 Days or 30 to 59 60 to 89 More Past Due Days Days and Still Total Total (In thousands) Past Due Past Due Accruing Interest Non-accrual Past Due Current Loans Real estate: One-to-four family residential, including condominium and cooperative apartment $ 3,135 $ 1,245 $ 5,021 $ 4,938 $ 14,339 $ 669,326 $ 683,665 Multifamily residential and residential mixed-use 10,251 2,738 — 859 13,848 3,454,414 3,468,262 CRE 8,360 1,069 1,004 4,122 14,555 3,799,882 3,814,437 ADC 17,700 — — — 17,700 267,679 285,379 Total real estate 39,446 5,052 6,025 9,919 60,442 8,191,301 8,251,743 C&I 10,962 2,455 257 23,727 37,401 975,014 1,012,415 Other 730 2 — 374 1,106 19,607 20,713 Total $ 51,138 $ 7,509 $ 6,282 $ 34,020 $ 98,949 $ 9,185,922 $ 9,284,871 December 31, 2020 Loans 90 Days or 30 to 59 60 to 89 More Past Due Days Days and Still Total Total (In thousands) Past Due Past Due Accruing Interest Non-accrual Past Due Current Loans Real estate: One-to-four family residential, including condominium and cooperative apartment $ — $ — $ 44 $ 858 $ 902 $ 184,087 $ 184,989 Multifamily residential and residential mixed-use — — 437 1,863 2,300 2,756,443 2,758,743 CRE 15,351 — — 2,704 18,055 1,860,112 1,878,167 ADC — — — — — 156,296 156,296 Total real estate 15,351 — 481 5,425 21,257 4,956,938 4,978,195 C&I — 917 2,848 12,502 16,267 625,266 641,533 Other 8 1 — 1 10 2,306 2,316 Total $ 15,359 $ 918 $ 3,329 $ 17,928 $ 37,534 $ 5,584,510 $ 5,622,044 |
Schedule of loans by class modified as trouble debt restructurings | Modifications During the Nine Months Ended September 30, 2021 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment One-to-four family residential and cooperative/condominium apartment 1 $ 50 $ 50 Commercial real estate ("CRE") 1 10,000 10,000 Commercial and industrial ("C&I") 1 456 488 Total 3 $ 10,506 $ 10,538 |
Loans Approved for Deferral | September 30, 2021 Number of Loans Balance (1) % of Portfolio (Dollars in thousands) One-to-four family residential and cooperative/condominium apartment 10 $ 9,255 1.4 % CRE 1 3,487 0.1 C&I 6 13,861 1.4 Total 17 $ 26,603 0.3 (1) Amount excludes net deferred costs due to immateriality. |
Credit Risk Profile of the Real Estate Loans | September 30, 2021 (In thousands) 2021 2020 2019 2018 2017 2016 and Prior Revolving Revolving-Term Total One-to-four family residential, and condominium/cooperative apartment: Pass $ 104,830 $ 93,315 $ 86,214 $ 79,981 $ 84,075 $ 143,807 $ 52,483 $ 11,162 $ 655,867 Special mention — — 337 756 345 2,168 846 1,089 5,541 Substandard — 1,461 2,048 862 2,206 14,691 — 966 22,234 Doubtful — — — 23 — — — — 23 Total one-to-four family residential, and condominium/cooperative apartment 104,830 94,776 88,599 81,622 86,626 160,666 53,329 13,217 683,665 Multifamily residential and residential mixed-use: Pass 426,164 347,900 493,077 193,738 373,965 1,329,688 5,111 825 3,170,468 Special mention — 12,550 14,551 — 11,842 22,378 — — 61,321 Substandard — — 35,886 27,265 51,680 118,179 3,463 — 236,473 Doubtful — — — — — — — — — Total multifamily residential and residential mixed-use 426,164 360,450 543,514 221,003 437,487 1,470,245 8,574 825 3,468,262 CRE: Pass 636,234 872,347 578,758 331,636 337,930 863,215 39,323 5,164 3,664,607 Special mention 5,354 2,384 — 4,191 11,109 15,416 — — 38,454 Substandard 2,335 1,752 7,110 39,892 19,733 40,448 — — 111,270 Doubtful — — 106 — — — — — 106 Total CRE 643,923 876,483 585,974 375,719 368,772 919,079 39,323 5,164 3,814,437 ADC: Pass 101,947 69,546 62,414 24,587 8,120 807 2,686 600 270,707 Special mention — — — 1,078 — — — — 1,078 Substandard — — — 13,500 — 94 — — 13,594 Doubtful — — — — — — — — — Total ADC 101,947 69,546 62,414 39,165 8,120 901 2,686 600 285,379 C&I: Pass 52,667 199,677 58,835 54,190 38,065 25,948 479,111 10,359 918,852 Special mention — 1,690 265 2,260 611 61 1,685 1,368 7,940 Substandard — 5,949 4,842 6,175 2,982 1,057 34,996 6,764 62,765 Doubtful — — 10,087 752 11,989 30 — — 22,858 Total C&I 52,667 207,316 74,029 63,377 53,647 27,096 515,792 18,491 1,012,415 Total: Pass 1,321,842 1,582,785 1,279,298 684,132 842,155 2,363,465 578,714 28,110 8,680,501 Special mention 5,354 16,624 15,153 8,285 23,907 40,023 2,531 2,457 114,334 Substandard 2,335 9,162 49,886 87,694 76,601 174,469 38,459 7,730 446,336 Doubtful — — 10,193 775 11,989 30 — — 22,987 Total Loans $ 1,329,531 $ 1,608,571 $ 1,354,530 $ 780,886 $ 954,652 $ 2,577,987 $ 619,704 $ 38,297 $ 9,264,158 December 31, 2020 Special (In thousands) Pass Mention Substandard Doubtful Total Real Estate: One-to-four family residential and condominium/cooperative apartment $ 183,293 $ — $ 1,696 $ — $ 184,989 Multifamily residential and residential mixed-use 2,523,258 56,400 179,085 — 2,758,743 CRE 1,831,712 13,861 32,594 — 1,878,167 ADC 142,796 13,500 — — 156,296 Total real estate 4,681,059 83,761 213,375 — 4,978,195 C&I 613,691 2,131 13,315 12,396 641,533 Total Real Estate and C&I $ 5,294,750 $ 85,892 $ 226,690 $ 12,396 $ 5,619,728 (In thousands) September 30, 2021 December 31, 2020 Performing $ 20,339 $ 2,315 Non-accrual 374 1 Total $ 20,713 $ 2,316 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
LEASES | |
Maturities of Operating Lease Liabilities | Maturities of the Company’s operating lease liabilities at September 30, 2021 are as follows: Rent to be (In thousands) Capitalized 2021 $ 3,374 2022 11,006 2023 9,301 2024 9,186 2025 8,941 Thereafter 25,439 Total undiscounted lease payments 67,247 Less amounts representing interest (4,377) Operating lease liabilities $ 62,870 |
Other Information Related to Operating Leases | Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Operating lease cost $ 4,012 $ 1,636 $ 11,178 $ 4,867 Cash paid for amounts included in the measurement of operating lease liabilities 3,724 1,745 10,496 5,295 |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivatives, Fair Value [Line Items] | |
Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) | The table below presents the effect of the cash flow hedge accounting on Accumulated Other Comprehensive Income (Loss) for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Gain (loss) recognized in other comprehensive income $ 225 $ 100 $ 3,767 $ (25,098) Gain recognized on termination of derivatives — — 16,505 — Loss reclassified from other comprehensive income into interest expense (38) (2,319) (902) (3,679) |
Designated as Hedging Instrument | |
Derivatives, Fair Value [Line Items] | |
Fair Value of Derivative Financial Instruments and Classification on Consolidated Statements of Financial Condition | September 30, 2021 December 31, 2020 Notional Fair Value Fair Value Notional Fair Value Fair Value (Dollars in thousands) Count Amount Assets Liabilities Count Amount Assets Liabilities Included in derivative assets/(liabilities): Interest rate swaps related to FHLBNY advances 4 $ 150,000 $ 2,811 $ — — $ — $ — $ — Interest rate swaps related to FHLBNY advances — $ — $ — $ — 32 $ 655,000 $ — $ (18,442) |
Not Designated as Hedging Instrument | |
Derivatives, Fair Value [Line Items] | |
Fair Value of Derivative Financial Instruments and Classification on Consolidated Statements of Financial Condition | September 30, 2021 Notional Fair Value Fair Value (In thousands) Count Amount Assets Liabilities Included in derivative assets/(liabilities): Loan level interest rate swaps with borrower 128 $ 818,370 $ 36,095 $ — Loan level interest rate swaps with borrower 61 439,198 — (7,414) Loan level interest rate floors with borrower 47 405,685 — (4,072) Loan level interest rate swaps with third-party counterparties 128 818,370 — (36,095) Loan level interest rate swaps with third-party counterparties 61 439,198 7,414 — Loan level interest rate floors with third-party counterparties 47 405,685 4,072 — December 31, 2020 Notional Fair Value Fair Value (In thousands) Count Amount Assets Liabilities Included in derivative assets/(liabilities): Loan level interest rate swaps with borrower 65 $ 570,277 $ 24,764 $ — Loan level interest rate floors with borrower 41 364,643 — (5,832) Loan level interest rate swaps with third-party counterparties 65 570,277 — (24,764) Loan level interest rate floors with third-party counterparties 41 364,643 5,832 — |
Loan Level Derivative Income | Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Loan level derivative income $ 445 $ 1,544 $ 2,796 $ 5,201 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair Value Measurements at September 30, 2021 Using Level 1 Level 2 Level 3 (In thousands) Total Inputs Inputs Inputs Financial Assets: Securities available-for-sale: Agency notes $ 81,018 $ — $ 81,018 $ — Treasury securities 247,696 — 247,696 — Corporate securities 126,833 — 126,833 — Pass-through MBS issued by GSEs 621,957 — 621,957 — Agency CMOs 590,426 — 590,426 — State and municipal obligations 41,133 — 41,133 — Derivative – cash flow hedges 2,811 — 2,811 — Derivative – freestanding derivatives, net 38,889 — 38,889 — Financial Liabilities: Derivative – freestanding derivatives, net 38,889 — 38,889 — Fair Value Measurements at December 31, 2020 Using Level 1 Level 2 Level 3 (In thousands) Total Inputs Inputs Inputs Financial Assets: Marketable equity securities (Registered mutual funds) Domestic equity mutual funds $ 1,769 $ 1,769 $ — $ — International equity mutual funds 468 468 — — Fixed income mutual funds 3,733 3,733 — — Securities available-for-sale: Agency notes 47,421 — 47,421 — Corporate securities 64,461 — 64,461 — Pass-through MBS issued by GSEs 143,483 — 143,483 — Agency CMOs 283,496 — 283,496 — Derivative – freestanding derivatives 30,596 — 30,596 — Financial Liabilities: Derivative – cash flow hedges 18,442 — 18,442 — Derivative – freestanding derivatives 30,596 — 30,596 — |
Schedule of assets measured at fair value on a non-recurring basis | September 30, 2021 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) Individually evaluated loans $ 55,146 $ — $ — $ 55,146 |
Fair Value Measurements, Nonrecurring | Fair Value Measurements at September 30, 2021 Using Carrying Level 1 Level 2 Level 3 (In thousands) Amount Inputs Inputs Inputs Total Financial Assets: Cash and due from banks $ 629,011 $ 629,011 $ — $ — $ 629,011 Securities held-to-maturity 40,303 — 40,303 — 40,303 Loans held for investment, net 9,148,470 — — 9,212,454 9,212,454 Accrued interest receivable 43,284 — 4,228 39,056 43,284 Financial Liabilities: Savings, money market and checking accounts 9,657,821 9,657,821 — — 9,657,821 Certificates of Deposits ("CDs") 1,016,216 — 1,021,029 — 1,021,029 FHLBNY advances 25,000 — 25,015 — 25,015 Subordinated debt, net 197,142 — 203,355 — 203,355 Other short-term borrowings 2,629 2,629 — — 2,629 Accrued interest payable 1,630 — 1,630 — 1,630 Fair Value Measurements at December 31, 2020 Using Carrying Level 1 Level 2 Level 3 (In thousands) Amount Inputs Inputs Inputs Total Financial Assets: Cash and due from banks $ 243,603 $ 243,603 $ — $ — $ 243,603 Loans held for investment, net 5,580,583 — — 5,598,787 5,598,787 Accrued interest receivable 34,815 2 1,584 33,229 34,815 Financial Liabilities: Savings, money market and checking accounts 3,202,484 3,202,484 — — 3,202,484 CDs 1,322,638 — 1,328,554 — 1,328,554 FHLBNY advances 1,204,010 — 1,207,890 — 1,207,890 Subordinated debt, net 114,052 — 114,340 — 114,340 Other short-term borrowings 120,000 120,000 — — 120,000 Accrued interest payable 1,734 — 1,734 — 1,734 |
OTHER INTANGIBLE ASSETS (Tables
OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
OTHER INTANGIBLE ASSETS | |
Schedule of acquired intangible assets | September 30, 2021 Core Deposit Non-complete (In thousands) Intangibles Agreement Total Gross carrying value $ 10,204 $ 780 $ 10,984 Accumulated amortization (1,427) (480) (1,907) Net carrying amount $ 8,777 $ 300 $ 9,077 |
Schedule of estimated amortization expense | (In thousands) Total 2021 $ 715 2022 1,878 2023 1,425 2024 1,163 2025 958 Thereafter 2,938 Total $ 9,077 |
FEDERAL HOME LOAN BANK OF NEW_2
FEDERAL HOME LOAN BANK OF NEW YORK ADVANCES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
FEDERAL HOME LOAN BANK OF NEW YORK ADVANCES | |
Schedule of contractual maturities and weighted average interest rates of FHLBNY advances | September 30, 2021 (Dollars in thousands) Weighted Contractual Maturity Amount Average Rate 2021 $ 25,000 0.35 % Total FHLBNY advances $ 25,000 0.35 % December 31, 2020 (Dollars in thousands) Weighted Contractual Maturity Amount Average 2021 $ 1,144,010 0.52 % 2022 60,000 0.60 Total FHLBNY advances $ 1,204,010 0.53 % |
RETIREMENT AND POSTRETIREMENT_2
RETIREMENT AND POSTRETIREMENT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
RETIREMENT AND POSTRETIREMENT PLANS | |
Net Periodic Costs | Three Months Ended September 30, 2021 2020 BMP, Postretirement BNB Bank Employee Employee and Outside Director (In thousands) Pension Plan Retirement Plan Retirement Plan Retirement Plans Service cost $ 223 $ — $ — $ — Interest cost 302 183 10 241 Expected return on assets (1,244) (428) — (428) Unrecognized past service liability — — (2) — Amortization of unrealized loss 207 229 — 274 Net periodic benefit (credit) cost $ (512) $ (16) $ 8 $ 87 Nine Months Ended September 30, 2021 2020 BMP, Postretirement BNB Bank Employee Employee and Outside Director (In thousands) Pension Plan Retirement Plan Retirement Plan Retirement Plans Service cost $ 594 $ — $ — $ — Interest cost 854 549 30 723 Expected return on assets (3,473) (1,284) — (1,284) Unrecognized past service liability — — (6) — Amortization of unrealized loss 619 687 — 822 Net periodic (credit) cost $ (1,406) $ (48) $ 24 $ 261 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
STOCK-BASED COMPENSATION | |
Activity Related to Stock Options | Weighted- Average Aggregate Weighted- Remaining Intrinsic Number of Average Exercise Contractual Value Options Price Years (In thousands) Options outstanding at January 1, 2021 28,842 $ 15.05 Options outstanding at January 1, 2021 as adjusted for conversion 18,685 23.23 Options acquired 180,020 35.39 Options exercised (17,102) 23.40 Options forfeited (29,421) 35.38 Options outstanding at September 30, 2021 152,182 $ 35.24 7.4 $ 18 Options vested and exercisable at September 30, 2021 152,182 $ 35.24 7.4 $ 18 |
Information Related to Stock Option Plan | Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Cash received for option exercise cost $ — $ — $ 396 $ 38 Income tax benefit recognized on stock option exercises — — — — Intrinsic value of options exercised — — 77 8 |
Activity Related to Restricted Stock Awards | Weighted- Average Number of Grant-Date Shares Fair Value Unvested allocated shares outstanding at January 1, 2021 — $ — Shares acquired in the Merger 101,778 25.98 Shares granted 390,027 26.48 Shares vested (9,838) 25.41 Shares forfeited (33,089) 25.73 Unvested allocated shares at September 30, 2021 448,878 $ 26.45 |
Information Related to Restricted Stock Award Plan | Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2021 2020 2021 2020 Compensation expense recognized $ 1,454 $ 444 $ 3,804 $ 1,311 Income tax expense recognized on vesting of RSA — (38) (86) (95) |
Activity Related to Performance Based Equity Awards | Weighted- Average Number of Grant-Date Shares Fair Value Maximum aggregate share payout at January 1, 2021 — $ — Shares granted 38,948 31.40 Maximum aggregate share payout at September 30, 2021 38,948 $ 31.40 Minimum aggregate share payout — — Expected aggregate share payout 25,963 $ 31.40 |
Information Related to Performance Based Share Award Plan | Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2021 2020 2021 2020 Compensation expense recognized $ 81 $ 210 $ 81 $ 362 Income tax expense recognized on vesting of LTIP — — — — |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | Feb. 01, 2021$ / sharesshares | Sep. 30, 2021item$ / shares | Sep. 30, 2021item$ / shares | Dec. 31, 2020$ / shares |
BASIS OF PRESENTATION | ||||
Number of branch locations | item | 65 | |||
Number of real estate investments dissolved | item | 2 | |||
Merger agreement: | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock converted into right to receive shares (in shares) | shares | 0.6480 | |||
Preferred stock, Series A, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
MERGER (Details)
MERGER (Details) $ / shares in Units, $ in Millions | Feb. 01, 2021USD ($)$ / sharesshares | Jan. 31, 2021shares | Sep. 30, 2021$ / shares | Dec. 31, 2020$ / shares | Sep. 30, 2015USD ($) |
MERGER | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Share conversion ratio | 0.6480 | ||||
Preferred stock, Series A, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Aggregate principal amount | $ | $ 80 | ||||
Preferred Stock | |||||
MERGER | |||||
Share conversion ratio | 1 | ||||
Legacy Dime | |||||
MERGER | |||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Aggregate principal amount | $ | $ 115 | ||||
Fixed interest rate of debentures | 4.50% | ||||
Legacy Dime | Preferred Stock | |||||
MERGER | |||||
Preferred stock, Series A, par value (in dollars per share) | $ 0.01 | ||||
Merger Agreement | |||||
MERGER | |||||
Number of Bridge Outstanding Shares | shares | 41,226,000 | ||||
Percentage Ownership | 100.00% | ||||
Merger Agreement | Bridge shareholders | |||||
MERGER | |||||
Number of Bridge Outstanding Shares | shares | 21,200,000 | 19,993,000 | |||
Percentage Ownership | 51.50% | 48.50% | |||
Merger Agreement | Legacy Dime shareholders | |||||
MERGER | |||||
Number of Bridge Outstanding Shares | shares | 30,853,000 | 21,233,000 | |||
Percentage Ownership | 51.50% |
MERGER - Dime Community Bancsha
MERGER - Dime Community Bancshares, Inc. Ownership and Market Value (Details) - Merger Agreement - USD ($) $ / shares in Units, $ in Thousands | Feb. 01, 2021 | Jan. 31, 2021 |
MERGER | ||
Number of Bridge Outstanding Shares | 41,226,000 | |
Percentage Ownership | 100.00% | |
Market Value at $24.43 Bridge Share Price | $ 1,007,140 | |
Bridge shareholders | ||
MERGER | ||
Number of Bridge Outstanding Shares | 21,200,000 | 19,993,000 |
Percentage Ownership | 51.50% | 48.50% |
Market Value at $24.43 Bridge Share Price | $ 488,420 | |
Bridge Share Price | $ 24.43 | |
Legacy Dime shareholders | ||
MERGER | ||
Number of Bridge Outstanding Shares | 30,853,000 | 21,233,000 |
Percentage Ownership | 51.50% | |
Market Value at $24.43 Bridge Share Price | $ 7 | $ 518,720 |
MERGER - Hypothetical Legacy Di
MERGER - Hypothetical Legacy Dime Ownership (Details) - Merger Agreement shares in Thousands | Jan. 31, 2021shares |
MERGER | |
Number of Legacy Dime Outstanding Shares | 63,620 |
Percentage Ownership | 100.00% |
Bridge shareholders | |
MERGER | |
Number of Legacy Dime Outstanding Shares | 30,853 |
Percentage Ownership | 48.50% |
Legacy Dime shareholders | |
MERGER | |
Number of Legacy Dime Outstanding Shares | 32,767 |
Percentage Ownership | 51.50% |
MERGER - Purchase Price (Detail
MERGER - Purchase Price (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 01, 2021 | Jan. 31, 2021 | Sep. 30, 2021 |
MERGER | |||
Purchase price consideration | $ 491,210 | ||
Merger Agreement | |||
MERGER | |||
Number of hypothetical Legacy Dime shares issued to Bridge shareholders | 41,226,000 | ||
Number of Bridge Outstanding Shares | 41,226,000 | ||
Cash in lieu of fractional shares | $ 1,007,140 | ||
Merger Agreement | Bridge shareholders | |||
MERGER | |||
Number of hypothetical Legacy Dime shares issued to Bridge shareholders | 21,200,000 | 19,993,000 | |
Number of Bridge Outstanding Shares | 21,200,000 | 19,993,000 | |
Cash in lieu of fractional shares | $ 488,420 | ||
Merger Agreement | Legacy Dime shareholders | |||
MERGER | |||
Number of hypothetical Legacy Dime shares issued to Bridge shareholders | 30,853,000 | 21,233,000 | |
Legacy Dime market price per share as of February 1, 2021 | $ 15.90 | ||
Purchase price determination of hypothetical Legacy Dime shares issued to Bridge shareholders | $ 490,560 | ||
Number of Bridge Outstanding Shares | 30,853,000 | 21,233,000 | |
Cash in lieu of fractional shares | $ 7 | $ 518,720 | |
Purchase price consideration | $ 491,210 | ||
Merger Agreement | Legacy Dime shareholders | Common Stock | |||
MERGER | |||
Number of hypothetical Legacy Dime shares issued to Bridge shareholders | 643,000 | ||
Number of Bridge Outstanding Shares | 643,000 |
MERGER - Purchase Price Allocat
MERGER - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Feb. 01, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Fair value of assets acquired: | |||
Operating lease assets | $ 45,600 | ||
Fair value of liabilities assumed: | |||
Operating lease liabilities | 45,300 | ||
Total liabilities assumed | $ 5,847,505 | ||
Goodwill resulting from Merger | $ 155,339 | $ 55,638 | |
Bridge assets acquired | |||
Purchase price consideration: | |||
Purchase price consideration | 491,210 | ||
Fair value of assets acquired: | |||
Cash and due from banks | 715,988 | ||
Securities available-for-sale | 651,997 | ||
Loans held for sale | 10,000 | ||
Loans held for investment | 4,531,640 | ||
Premises and fixed assets | 37,881 | ||
Restricted stock | 23,362 | ||
BOLI | 94,085 | ||
Other intangible assets | 10,984 | ||
Operating lease assets | 45,603 | ||
Other assets | 117,474 | ||
Total assets acquired | 6,239,014 | ||
Fair value of liabilities assumed: | |||
Deposits | 5,405,575 | ||
Other short-term borrowings | 216,298 | ||
Subordinated debt | 83,200 | ||
Operating lease liabilities | 45,285 | ||
Other liabilities | 97,147 | ||
Total liabilities assumed | 5,847,505 | ||
Fair value of net identifiable assets | 391,509 | ||
Goodwill resulting from Merger | $ 99,701 |
MERGER - Loans Acquired (Detail
MERGER - Loans Acquired (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Feb. 01, 2021 |
MERGER | ||
Total fair value at acquisition | $ 4,530,000 | $ 4,531,640 |
PCD loans | ||
MERGER | ||
Unpaid principal balance | 295,306 | |
Non-credit discount at acquisition | (9,050) | |
Unpaid principal balance, net | 286,256 | |
Allowance for credit losses at acquisition | (52,284) | |
Total fair value at acquisition | 233,972 | |
Non-PCD loans | ||
MERGER | ||
Unpaid principal balance | 4,289,236 | |
Premium at acquisition | 8,432 | |
Unpaid principal balance, net | $ 4,297,668 |
MERGER - Supplemental of cash f
MERGER - Supplemental of cash flow information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
MERGER | |
Fair value of tangible assets acquired | $ 6,228,030 |
Goodwill, core deposit intangible and other intangible assets acquired | 110,685 |
Liabilities assumed | 5,847,505 |
Purchase price consideration | $ 491,210 |
MERGER - Other intangible asset
MERGER - Other intangible assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Core deposits | |
MERGER | |
Other intangible assets | $ 10,200 |
Weighted average life | 10 years |
Noncompete Agreements | |
MERGER | |
Other intangible assets | $ 780 |
Weighted average life | 13 months |
MERGER - Pro Forma (Details)
MERGER - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
MERGER | ||||
Net interest income | $ 93,316 | $ 86,818 | $ 274,499 | $ 252,455 |
Non-interest income | 9,728 | 12,939 | 33,240 | 33,030 |
Net income | 39,978 | 29,971 | 92,782 | 72,015 |
Net income available to common shareholders | $ 37,700 | $ 27,791 | $ 86,390 | $ 68,169 |
Earnings per share: | ||||
Basic | $ 0.93 | $ 0.68 | $ 2.11 | $ 1.66 |
Diluted | $ 0.93 | $ 0.68 | $ 2.11 | $ 1.66 |
SUMMARY OF ACCOUNTING POLICIE_2
SUMMARY OF ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | $ 81,255 | $ 92,760 | $ 41,461 | $ 48,492 | $ 42,492 | $ 28,441 | |
Retained earnings | 630,744 | 600,641 | |||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | (3,919) | ||||||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | (3,900) | ||||||
Reserve for unfunded commitments | 1,400 | ||||||
Retained earnings | $ 1,700 | ||||||
One-to-four family residential and cooperative/condominium apartment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | $ 6,104 | 5,522 | 644 | 799 | 671 | 269 | |
One-to-four family residential and cooperative/condominium apartment | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | 1,048 | ||||||
One-to-four family residential and cooperative/condominium apartment | Maximum | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Value ratio | 75.00% | ||||||
One-to-four family residential and cooperative/condominium apartment | Minimum | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Debt service ratio | 1.25% | ||||||
Multifamily residential and residential mixed-use | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | $ 8,307 | 10,285 | 17,016 | 20,210 | 16,666 | 10,142 | |
Multifamily residential and residential mixed-use | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | (8,254) | ||||||
Multifamily residential and residential mixed-use | Maximum | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Value ratio | 75.00% | ||||||
Multifamily residential and residential mixed-use | Minimum | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Debt service ratio | 1.20% | ||||||
Commercial real estate ("CRE") | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | $ 29,603 | 41,201 | 9,059 | 12,021 | 9,859 | 3,900 | |
Commercial real estate ("CRE") | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | 4,849 | ||||||
Commercial real estate ("CRE") | Maximum | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Value ratio | 75.00% | ||||||
Commercial real estate ("CRE") | Minimum | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Debt service ratio | 1.25% | ||||||
Acquisition, Development, And Construction Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Value ratio | 50.00% | ||||||
Commercial and Industrial ("C&I") Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | $ 31,545 | 30,095 | 12,737 | 13,395 | 13,502 | 12,870 | |
Value ratio | 100.00% | ||||||
Commercial and Industrial ("C&I") Loans | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | (1,935) | ||||||
Other Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | $ 677 | $ 499 | 12 | $ 16 | $ 17 | $ 16 | |
Other Loans | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | $ (8) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Balance | $ 1,204,276 | $ 1,172,824 | $ 701,096 | $ 681,543 | $ 645,648 | $ 596,758 | $ 701,096 | $ 596,758 |
Other comprehensive (loss) income before reclassifications | 6,178 | (5,944) | ||||||
Amounts reclassified from accumulated other comprehensive loss | (1,296) | 345 | ||||||
Total other comprehensive (loss) income, net of tax | (5,618) | 4,045 | 6,455 | 2,864 | (1,771) | (6,692) | 4,882 | (5,599) |
Balance | 1,201,117 | 1,204,276 | 1,172,824 | 694,158 | 681,543 | 645,648 | 1,201,117 | 694,158 |
Accumulated Other Comprehensive Income (Loss) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Balance | 4,576 | 531 | (5,924) | (14,403) | (12,632) | (5,940) | (5,924) | (5,940) |
Total other comprehensive (loss) income, net of tax | (5,618) | 4,045 | 6,455 | 2,864 | (1,771) | (6,692) | ||
Balance | (1,042) | $ 4,576 | 531 | (11,539) | $ (14,403) | (12,632) | (1,042) | (11,539) |
Securities Available-for-Sale | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Balance | 12,694 | 4,621 | 12,694 | 4,621 | ||||
Other comprehensive (loss) income before reclassifications | (10,378) | 10,783 | ||||||
Amounts reclassified from accumulated other comprehensive loss | (826) | (2,302) | ||||||
Total other comprehensive (loss) income, net of tax | (11,204) | 8,481 | ||||||
Balance | 1,490 | 13,102 | 1,490 | 13,102 | ||||
Defined Benefit Plans | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Balance | (6,086) | (6,024) | (6,086) | (6,024) | ||||
Other comprehensive (loss) income before reclassifications | 2,706 | 423 | ||||||
Amounts reclassified from accumulated other comprehensive loss | (1,082) | 133 | ||||||
Total other comprehensive (loss) income, net of tax | 1,624 | 556 | ||||||
Balance | (4,462) | (5,468) | (4,462) | (5,468) | ||||
Derivatives | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Balance | $ (12,532) | $ (4,537) | (12,532) | (4,537) | ||||
Other comprehensive (loss) income before reclassifications | 13,850 | (17,150) | ||||||
Amounts reclassified from accumulated other comprehensive loss | 612 | 2,514 | ||||||
Total other comprehensive (loss) income, net of tax | 14,462 | (14,636) | ||||||
Balance | $ 1,930 | $ (19,173) | $ 1,930 | $ (19,173) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Before and After Tax Amounts by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Change in unrealized holding gain or loss on securities available-for-sale: | ||||||||
Change in net unrealized gain or loss during the period | $ (8,654) | $ 1,716 | $ (15,222) | $ 15,769 | ||||
Reclassification adjustment for net gains included in net gain on securities and other assets | (215) | (1,207) | (3,357) | |||||
Net change | (8,654) | 1,501 | (16,429) | 12,412 | ||||
Tax (benefit) expense | (2,714) | 475 | (5,226) | 3,931 | ||||
Net change in unrealized holding gain or loss on securities available-for-sale, net of reclassification adjustments and tax | (5,940) | 1,026 | (11,203) | 8,481 | ||||
Change in pension and other postretirement obligations: | ||||||||
Reclassification adjustment for expense included in other expense | (735) | 4 | (1,595) | 194 | ||||
Reclassification adjustment for curtailment loss | 1,543 | |||||||
Change in the net actuarial gain or loss | 941 | 267 | 2,470 | 619 | ||||
Net change | 206 | 271 | 2,418 | 813 | ||||
Tax expense | 65 | 86 | 795 | 257 | ||||
Net change in pension and other postretirement obligations | 141 | 185 | 1,623 | 556 | ||||
Change in unrealized gain or loss on derivatives: | ||||||||
Change in net unrealized gain or loss during the period | 225 | 100 | 3,767 | (25,098) | ||||
Reclassification adjustment for loss included in loss on termination of derivatives | 16,505 | |||||||
Reclassification adjustment for expense included in interest expense | 38 | 2,319 | 902 | 3,679 | ||||
Net change | 263 | 2,419 | 21,174 | (21,419) | ||||
Tax expense (benefit) | 82 | 766 | 6,712 | (6,783) | ||||
Net change in unrealized gain or loss on derivatives, net of reclassification adjustments and tax | 181 | 1,653 | 14,462 | (14,636) | ||||
Total other comprehensive (loss) income, net of tax | $ (5,618) | $ 4,045 | $ 6,455 | $ 2,864 | $ (1,771) | $ (6,692) | $ 4,882 | $ (5,599) |
EARNINGS PER COMMON SHARE ("E_3
EARNINGS PER COMMON SHARE ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Abstract] | ||||
Net income available to common stockholders | $ 36,573 | $ 14,046 | $ 63,174 | $ 34,264 |
Less: Dividends paid and earnings allocated to participating securities | (437) | (83) | (811) | (195) |
Income attributable to common stock | $ 36,136 | $ 13,963 | $ 62,363 | $ 34,069 |
Weighted average common shares outstanding, including participating securities (in shares) | 40,915,012 | 21,378,332 | 38,979,259 | 21,848,184 |
Less: weighted average participating securities (in shares) | (489,274) | (187,781) | (405,102) | (191,438) |
Weighted average common shares outstanding (in shares) | 40,425,738 | 21,190,551 | 38,574,157 | 21,656,746 |
Basic EPS (in dollars per share) | $ 0.89 | $ 0.66 | $ 1.62 | $ 1.57 |
Weighted average common shares outstanding (in shares) | 40,425,738 | 21,190,551 | 38,574,157 | 21,656,746 |
Weighted average common equivalent shares outstanding (in shares) | 423 | 133,636 | 700 | 134,334 |
Weighted average common and equivalent shares outstanding (in shares) | 40,426,161 | 21,324,187 | 38,574,857 | 21,791,080 |
Diluted EPS (in dollars per share) | $ 0.89 | $ 0.65 | $ 1.62 | $ 1.56 |
Stock Option Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Abstract] | ||||
Weighted average shares excluded from earnings per share calculation (in shares) | 174,584 | 0 | 177,953 | 0 |
PREFERRED STOCK (Details)
PREFERRED STOCK (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 10, 2020 | Feb. 05, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
Public Offering [Abstract] | ||||
Preferred stock, Series A, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, liquidation preference (in dollars per share) | 25 | $ 25 | ||
Preferred stock, Series A | ||||
Public Offering [Abstract] | ||||
Number of share issued in public offering (in shares) | 2,300,000 | 2,999,200 | ||
Preferred stock, liquidation preference | $ 57.5 | $ 75 | ||
Preferred stock, interest rate | 5.50% | 5.50% | ||
Preferred stock, Series A, par value (in dollars per share) | $ 0.01 | |||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | |||
Proceeds from issuance of preferred stock | $ 44.3 | $ 72.2 | ||
Preferred stock, redemption price (in dollars per share) | $ 25 |
INVESTMENT AND MORTGAGE-BACKE_3
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Securities Available-for-sale Major Categories (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securities available-for-sale: | ||
Amortized Cost | $ 1,706,892 | $ 520,261 |
Gross Unrealized Gains | 16,080 | 18,798 |
Gross Unrealized Losses | (13,909) | (198) |
Fair Value | 1,709,063 | 538,861 |
Agency Notes | ||
Securities available-for-sale: | ||
Amortized Cost | 82,475 | 47,500 |
Gross Unrealized Gains | 12 | |
Gross Unrealized Losses | (1,457) | (91) |
Fair Value | 81,018 | 47,421 |
Treasury Securities | ||
Securities available-for-sale: | ||
Amortized Cost | 248,173 | |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | (482) | |
Fair Value | 247,696 | |
Corporate Securities | ||
Securities available-for-sale: | ||
Amortized Cost | 122,476 | 62,021 |
Gross Unrealized Gains | 4,758 | 2,440 |
Gross Unrealized Losses | (401) | |
Fair Value | 126,833 | 64,461 |
Pass-through MBS issued by GSEs | ||
Securities available-for-sale: | ||
Amortized Cost | 622,225 | 135,842 |
Gross Unrealized Gains | 6,005 | 7,672 |
Gross Unrealized Losses | (6,273) | (31) |
Fair Value | 621,957 | 143,483 |
Agency Collateralized Mortgage Obligations ("CMOs") | ||
Securities available-for-sale: | ||
Amortized Cost | 590,385 | 274,898 |
Gross Unrealized Gains | 5,159 | 8,674 |
Gross Unrealized Losses | (5,118) | (76) |
Fair Value | 590,426 | $ 283,496 |
State and municipal obligations. | ||
Securities available-for-sale: | ||
Amortized Cost | 41,158 | |
Gross Unrealized Gains | 153 | |
Gross Unrealized Losses | (178) | |
Fair Value | $ 41,133 |
INVESTMENT AND MORTGAGE-BACKE_4
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Securities Held-to-maturity Major Categories (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 40,303,000 | |
Fair Value | 40,303,000 | $ 0 |
Pass-through MBS issued by GSEs | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 25,325,000 | |
Fair Value | 25,325,000 | |
Agency Collateralized Mortgage Obligations ("CMOs") | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 14,978,000 | |
Fair Value | $ 14,978,000 |
INVESTMENT AND MORTGAGE-BACKE_5
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Feb. 01, 2021 | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | ||||||
Acquired securities available-for-sale on the Merger Date | $ 652,000,000 | |||||
Investment securities held-to-maturity, fair value | $ 40,303,000 | $ 40,303,000 | $ 0 | |||
Securities pledged as collateral, carrying amount | $ 684,000,000 | $ 684,000,000 | $ 99,400,000 | |||
Number of holdings of securities of any one issuer in an amount greater than 10% of stockholders equity | 0 | 0 | 0 | |||
Threshold for disclosure percentage | 10.00% | 10.00% | ||||
Net gain on equity securities | $ 0 | $ 175,000 | $ 131,000 | $ 139,000 |
INVESTMENT AND MORTGAGE-BACKE_6
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized Cost and Fair Value By Contractual Maturity (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Available for sale, Amortized Cost | ||
Within one year | $ 1,346,000 | |
One to five years | 270,069,000 | |
Five to ten years | 209,938,000 | |
Beyond ten years | 12,929,000 | |
Pass-through MBS issued by GSEs and Agency CMO | 1,212,610,000 | |
Amortized Cost | 1,706,892,000 | $ 520,261,000 |
Available for sale, Fair Value | ||
Within one year | 1,351,000 | |
One to five years | 269,665,000 | |
Five to ten years | 212,881,000 | |
Beyond ten years | 12,783,000 | |
Pass-through MBS issued by GSEs and Agency CMO | 1,212,383,000 | |
Total | 1,709,063,000 | 538,861,000 |
Held-to-maturity, Amortized Cost | ||
Pass-through MBS issued by GSEs and agency CMO | 40,303,000 | |
Total | 40,303,000 | |
Held-to-maturity, Fair Value | ||
Pass-through MBS issued by GSEs and agency CMO | 40,303,000 | |
Fair Value | $ 40,303,000 | $ 0 |
INVESTMENT AND MORTGAGE-BACKE_7
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Sales Information and Marketable Equity Securities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 15 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | |
Sales of Available-for-sale Securities: | |||||
Proceeds | $ 138,077,000 | $ 68,784,000 | |||
Proceeds: | |||||
Marketable equity securities | $ 137,000 | 6,101,000 | 410,000 | ||
Net gain on equity securities | $ 0 | 175,000 | 131,000 | 139,000 | |
Sales of securities held-to-maturity | 0 | 0 | $ 0 | ||
Transfers to or from securities held-to-maturity | $ 0 | 0 | 0 | 0 | |
Agency Notes | |||||
Sales of Available-for-sale Securities: | |||||
Proceeds | 273,000 | ||||
Corporate Securities | |||||
Sales of Available-for-sale Securities: | |||||
Proceeds | 50,273,000 | 25,403,000 | |||
Gross gains | 729,000 | 1,344,000 | |||
Tax expense on gain | 232,000 | 423,000 | |||
Gross losses | 41,000 | ||||
Tax benefit on loss | 13,000 | ||||
Pass-through MBS issued by GSEs | |||||
Sales of Available-for-sale Securities: | |||||
Proceeds | 5,987,000 | 26,823,000 | 39,182,000 | ||
Gross gains | 215,000 | 187,000 | 2,005,000 | ||
Tax expense on gain | $ 67,000 | 59,000 | 630,000 | ||
Gross losses | 35,000 | ||||
Tax benefit on loss | 11,000 | ||||
Agency Collateralized Mortgage Obligations ("CMOs") | |||||
Sales of Available-for-sale Securities: | |||||
Proceeds | 41,324,000 | 4,199,000 | |||
Gross gains | 268,000 | 8,000 | |||
Tax expense on gain | 85,000 | $ 3,000 | |||
Gross losses | 44,000 | ||||
Tax benefit on loss | 14,000 | ||||
State and municipal obligations. | |||||
Sales of Available-for-sale Securities: | |||||
Proceeds | 19,657,000 | ||||
Gross gains | 143,000 | ||||
Tax expense on gain | $ 45,000 |
INVESTMENT AND MORTGAGE-BACKE_8
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Pass-through MBS issued by GSEs | ||
Securities available-for-sale, Fair Value [Abstract] | ||
Less than 12 Consecutive Months | $ 446,864 | $ 5,007 |
12 Consecutive Months or Longer | 0 | 0 |
Total | 446,864 | 5,007 |
Securities available-for-sale, Unrealized Losses [Abstract] | ||
Less than 12 Consecutive Months | 6,273 | 31 |
12 Consecutive Months or Longer | 0 | 0 |
Total | 6,273 | 31 |
Treasury Securities | ||
Securities available-for-sale, Fair Value [Abstract] | ||
Less than 12 Consecutive Months | 231,984 | |
12 Consecutive Months or Longer | 0 | |
Total | 231,984 | |
Securities available-for-sale, Unrealized Losses [Abstract] | ||
Less than 12 Consecutive Months | 482 | |
12 Consecutive Months or Longer | 0 | |
Total | 482 | |
State and municipal obligations | ||
Securities available-for-sale, Fair Value [Abstract] | ||
Less than 12 Consecutive Months | 16,412 | |
12 Consecutive Months or Longer | 0 | |
Total | 16,412 | |
Securities available-for-sale, Unrealized Losses [Abstract] | ||
Less than 12 Consecutive Months | 178 | |
12 Consecutive Months or Longer | 0 | |
Total | 178 | |
Agency Notes | ||
Securities available-for-sale, Fair Value [Abstract] | ||
Less than 12 Consecutive Months | 81,018 | 22,409 |
12 Consecutive Months or Longer | 0 | 0 |
Total | 81,018 | 22,409 |
Securities available-for-sale, Unrealized Losses [Abstract] | ||
Less than 12 Consecutive Months | 1,457 | 91 |
12 Consecutive Months or Longer | 0 | 0 |
Total | 1,457 | 91 |
Corporate Notes | ||
Securities available-for-sale, Fair Value [Abstract] | ||
Less than 12 Consecutive Months | 17,863 | |
12 Consecutive Months or Longer | 0 | |
Total | 17,863 | |
Securities available-for-sale, Unrealized Losses [Abstract] | ||
Less than 12 Consecutive Months | 401 | |
12 Consecutive Months or Longer | 0 | |
Total | 401 | |
Agency Collateralized Mortgage Obligations ("CMOs") | ||
Securities available-for-sale, Fair Value [Abstract] | ||
Less than 12 Consecutive Months | 347,726 | 6,563 |
12 Consecutive Months or Longer | 0 | 4,954 |
Total | 347,726 | 11,517 |
Securities available-for-sale, Unrealized Losses [Abstract] | ||
Less than 12 Consecutive Months | 5,118 | 30 |
12 Consecutive Months or Longer | 0 | 46 |
Total | $ 5,118 | $ 76 |
LOANS HELD FOR INVESTMENT, NE_2
LOANS HELD FOR INVESTMENT, NET - Loan Categories (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Jun. 30, 2021 | Sep. 30, 2021 | Feb. 01, 2021 | Dec. 31, 2020 | |
Loans held for investment, net: | ||||
Total Loans | $ 9,284,871 | $ 5,622,044 | ||
Allowance for loan losses | (81,255) | (41,461) | ||
Total loans held for investment, net | 9,203,616 | 5,580,583 | ||
Loans acquired on merger | 4,530,000 | $ 4,531,640 | ||
Paycheck Protection Program ("PPP") loans | ||||
Loans held for investment, net: | ||||
Total Loans | 134,100 | |||
Allowance for loan losses | $ 0 | |||
Loan and leases carry guarantee rate | 100.00% | |||
Total real estate loans | ||||
Loans held for investment, net: | ||||
Total Loans | $ 8,251,743 | 4,978,195 | ||
One-to-four family residential and cooperative/condominium apartment | ||||
Loans held for investment, net: | ||||
Total Loans | 683,665 | 184,989 | ||
Multifamily residential and residential mixed-use | ||||
Loans held for investment, net: | ||||
Total Loans | 3,468,262 | 2,758,743 | ||
Commercial real estate ("CRE") | ||||
Loans held for investment, net: | ||||
Total Loans | 3,814,437 | 1,878,167 | ||
Acquisition, development, and construction ("ADC") | ||||
Loans held for investment, net: | ||||
Total Loans | 285,379 | 156,296 | ||
Commercial and Industrial ("C&I") Loans | ||||
Loans held for investment, net: | ||||
Total Loans | 1,012,415 | 641,533 | ||
Commercial and Industrial ("C&I") Loans | Paycheck Protection Program ("PPP") loans | ||||
Loans held for investment, net: | ||||
Total Loans | 1,012,415 | 313,400 | ||
Gain recorded on sale of SBA loans | $ 20,700 | |||
Sold amount | $ 596,200 | |||
Commercial and Industrial ("C&I") Loans | Total real estate loans | ||||
Loans held for investment, net: | ||||
Total Loans | 5,619,728 | |||
Other Loans | ||||
Loans held for investment, net: | ||||
Total Loans | $ 20,713 | $ 2,316 |
LOANS HELD FOR INVESTMENT, NE_3
LOANS HELD FOR INVESTMENT, NET - Allowance for Credit Losses Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | $ 92,760 | $ 42,492 | $ 41,461 | $ 28,441 | |
PCD Day 1 | 52,284 | ||||
Provision (credit) for credit loss expense | (7,314) | 5,931 | 812 | 20,003 | |
Charge-offs | (4,276) | (20) | (9,584) | (62) | |
Recoveries | 85 | 89 | 201 | 110 | |
Ending balance | 81,255 | 48,492 | 81,255 | 48,492 | |
Non-accrual with No Allowance | 2,099 | 2,099 | |||
Non-accrual with Allowance | 31,921 | 31,921 | |||
Reserve | 13,155 | ||||
Interest income on non-accrual loans | 0 | 0 | |||
Allowance for loan losses: | |||||
Individually evaluated for impairment | $ 6,474 | ||||
Collectively evaluated for impairment | 34,987 | ||||
Total ending allowance balance | 81,255 | 48,492 | 81,255 | 48,492 | 41,461 |
Loans: | |||||
Individually evaluated for impairment | 17,069 | ||||
Collectively evaluated for impairment | 5,604,975 | ||||
Total ending loans balance | 5,622,044 | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | (3,919) | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | (3,919) | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 37,542 | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | 37,542 | ||||
Total real estate loans | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 62,166 | 28,973 | 28,712 | 15,555 | |
PCD Day 1 | 28,753 | ||||
Provision (credit) for credit loss expense | (10,203) | 6,038 | (2,689) | 19,484 | |
Charge-offs | (3,011) | (19) | (3,852) | (61) | |
Recoveries | 81 | 89 | 85 | 103 | |
Ending balance | 49,033 | 35,081 | 49,033 | 35,081 | |
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 28,712 | ||||
Total ending allowance balance | 49,033 | 35,081 | 49,033 | 35,081 | 28,712 |
Loans: | |||||
Individually evaluated for impairment | 4,567 | ||||
Collectively evaluated for impairment | 4,973,628 | ||||
Total ending loans balance | 4,978,195 | ||||
Total real estate loans | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | (1,976) | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | (1,976) | ||||
Total real estate loans | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 26,736 | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | 26,736 | ||||
One-to-four family residential and cooperative/condominium apartment | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 5,522 | 671 | 644 | 269 | |
PCD Day 1 | 2,220 | ||||
Provision (credit) for credit loss expense | 583 | 134 | 2,212 | 540 | |
Charge-offs | (1) | (6) | (20) | (10) | |
Recoveries | 0 | ||||
Ending balance | 6,104 | 799 | 6,104 | 799 | |
Non-accrual with Allowance | 4,938 | 4,938 | |||
Reserve | 781 | ||||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 644 | ||||
Total ending allowance balance | 6,104 | 799 | 6,104 | 799 | 644 |
Loans: | |||||
Collectively evaluated for impairment | 184,989 | ||||
Total ending loans balance | 184,989 | ||||
One-to-four family residential and cooperative/condominium apartment | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 1,048 | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | 1,048 | ||||
One-to-four family residential and cooperative/condominium apartment | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 1,692 | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | 1,692 | ||||
Multifamily residential and residential mixed-use | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 10,285 | 16,666 | 17,016 | 10,142 | |
PCD Day 1 | 3,292 | ||||
Provision (credit) for credit loss expense | (1,998) | 3,468 | (3,361) | 10,010 | |
Charge-offs | (58) | (13) | (467) | (45) | |
Recoveries | 78 | 89 | 81 | 103 | |
Ending balance | 8,307 | 20,210 | 8,307 | 20,210 | |
Non-accrual with No Allowance | 859 | 859 | |||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 17,016 | ||||
Total ending allowance balance | 8,307 | 20,210 | 8,307 | 20,210 | 17,016 |
Loans: | |||||
Individually evaluated for impairment | 1,863 | ||||
Collectively evaluated for impairment | 2,756,880 | ||||
Total ending loans balance | 2,758,743 | ||||
Multifamily residential and residential mixed-use | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | (8,254) | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | (8,254) | ||||
Multifamily residential and residential mixed-use | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 8,762 | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | 8,762 | ||||
Commercial real estate ("CRE") | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 41,201 | 9,859 | 9,059 | 3,900 | |
PCD Day 1 | 23,124 | ||||
Provision (credit) for credit loss expense | (8,649) | 2,162 | (4,068) | 8,127 | |
Charge-offs | (2,952) | 0 | (3,365) | (6) | |
Recoveries | 3 | 0 | 4 | ||
Ending balance | 29,603 | 12,021 | 29,603 | 12,021 | |
Non-accrual with No Allowance | 1,240 | 1,240 | |||
Non-accrual with Allowance | 2,882 | 2,882 | |||
Reserve | 812 | ||||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 9,059 | ||||
Total ending allowance balance | 29,603 | 12,021 | 29,603 | 12,021 | 9,059 |
Loans: | |||||
Individually evaluated for impairment | 2,704 | ||||
Collectively evaluated for impairment | 1,875,463 | ||||
Total ending loans balance | 1,878,167 | ||||
Commercial real estate ("CRE") | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 4,849 | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | 4,849 | ||||
Commercial real estate ("CRE") | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 13,908 | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | 13,908 | ||||
Acquisition, development, and construction ("ADC") | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 5,158 | 1,777 | 1,993 | 1,244 | |
PCD Day 1 | 117 | ||||
Provision (credit) for credit loss expense | (139) | 274 | 2,528 | 807 | |
Charge-offs | 0 | ||||
Recoveries | 0 | ||||
Ending balance | 5,019 | 2,051 | 5,019 | 2,051 | |
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 1,993 | ||||
Total ending allowance balance | 5,019 | 2,051 | 5,019 | 2,051 | 1,993 |
Loans: | |||||
Collectively evaluated for impairment | 156,296 | ||||
Total ending loans balance | 156,296 | ||||
Acquisition, development, and construction ("ADC") | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 381 | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | 381 | ||||
Acquisition, development, and construction ("ADC") | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 2,374 | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | 2,374 | ||||
Commercial and Industrial ("C&I") Loans | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 30,095 | 13,502 | 12,737 | 12,870 | |
PCD Day 1 | 23,374 | ||||
Provision (credit) for credit loss expense | 1,943 | (107) | 2,215 | 518 | |
Charge-offs | (497) | 0 | (4,959) | ||
Recoveries | 4 | 0 | 113 | 7 | |
Ending balance | 31,545 | 13,395 | 31,545 | 13,395 | |
Non-accrual with Allowance | 23,727 | 23,727 | |||
Reserve | 11,191 | ||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 6,474 | ||||
Collectively evaluated for impairment | 6,263 | ||||
Total ending allowance balance | 31,545 | 13,395 | 31,545 | 13,395 | 12,737 |
Loans: | |||||
Individually evaluated for impairment | 12,502 | ||||
Collectively evaluated for impairment | 629,031 | ||||
Total ending loans balance | 641,533 | ||||
Commercial and Industrial ("C&I") Loans | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | (1,935) | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | (1,935) | ||||
Commercial and Industrial ("C&I") Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 10,802 | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | 10,802 | ||||
Other Loans | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 499 | 17 | 12 | 16 | |
PCD Day 1 | 157 | ||||
Provision (credit) for credit loss expense | 946 | 1,286 | 1 | ||
Charge-offs | (768) | (1) | (773) | (1) | |
Recoveries | 0 | 3 | |||
Ending balance | 677 | 16 | 677 | 16 | |
Non-accrual with Allowance | 374 | 374 | |||
Reserve | 371 | ||||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 12 | ||||
Total ending allowance balance | $ 677 | $ 16 | 677 | $ 16 | 12 |
Loans: | |||||
Collectively evaluated for impairment | 2,316 | ||||
Total ending loans balance | 2,316 | ||||
Other Loans | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | (8) | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | (8) | ||||
Other Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | $ 4 | ||||
Allowance for loan losses: | |||||
Total ending allowance balance | $ 4 |
LOANS HELD FOR INVESTMENT, NE_4
LOANS HELD FOR INVESTMENT, NET - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | |
Unpaid Principal Balance | |||
With no related allowance recorded | $ 4,567 | ||
With related allowance recorded | 12,502 | ||
Total | 17,069 | ||
Recorded Investment | |||
With no related allowance recorded | 4,567 | ||
With related allowance recorded | 12,502 | ||
Total | 17,069 | ||
Related Allowance | |||
Impaired Financing Receivable, Related Allowance | 6,474 | ||
Average Recorded Investment | |||
With no related allowance recorded | $ 2,820 | $ 3,114 | |
Total | 13,052 | 10,614 | |
Interest Income Recognized | |||
With no related allowance recorded | 65 | ||
Total | 218 | ||
One-to-four family residential and cooperative/condominium apartment | |||
Unpaid Principal Balance | |||
With no related allowance recorded | 1,863 | ||
Recorded Investment | |||
With no related allowance recorded | 1,863 | ||
Related Allowance | |||
Impaired Financing Receivable, Related Allowance | 0 | ||
Average Recorded Investment | |||
With no related allowance recorded | 10 | ||
Interest Income Recognized | |||
With no related allowance recorded | 4 | ||
Multifamily residential and residential mixed-use | |||
Average Recorded Investment | |||
With no related allowance recorded | 1,295 | 416 | |
Interest Income Recognized | |||
With no related allowance recorded | 7 | ||
Commercial real estate ("CRE") | |||
Unpaid Principal Balance | |||
With no related allowance recorded | 2,704 | ||
Recorded Investment | |||
With no related allowance recorded | 2,704 | ||
Related Allowance | |||
Impaired Financing Receivable, Related Allowance | 0 | ||
Average Recorded Investment | |||
With no related allowance recorded | 1,525 | 2,688 | |
Interest Income Recognized | |||
With no related allowance recorded | 54 | ||
Commercial and Industrial ("C&I") Loans | |||
Unpaid Principal Balance | |||
With related allowance recorded | 12,502 | ||
Recorded Investment | |||
With related allowance recorded | 12,502 | ||
Related Allowance | |||
Impaired Financing Receivable, Related Allowance | $ 6,474 | ||
Average Recorded Investment | |||
With related allowance recorded | $ 10,232 | 7,500 | |
Interest Income Recognized | |||
With related allowance recorded | $ 153 |
LOANS HELD FOR INVESTMENT, NE_5
LOANS HELD FOR INVESTMENT, NET - Past Due Status (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | $ 9,284,871 | $ 5,622,044 |
Non-accrual | 34,020 | 17,928 |
Aggregate outstanding balance | 6,300 | 3,300 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 98,949 | 37,534 |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 51,138 | 15,359 |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 7,509 | 918 |
Loans 90 Days or More Past Due and Still Accruing Interest | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 6,282 | 3,329 |
Current | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 9,185,922 | 5,584,510 |
Total real estate loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 8,251,743 | 4,978,195 |
Non-accrual | 9,919 | 5,425 |
Total real estate loans | Total Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 60,442 | 21,257 |
Total real estate loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 39,446 | 15,351 |
Total real estate loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 5,052 | 0 |
Total real estate loans | Loans 90 Days or More Past Due and Still Accruing Interest | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 6,025 | 481 |
Total real estate loans | Current | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 8,191,301 | 4,956,938 |
One-to-four family residential and cooperative/condominium apartment | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 683,665 | 184,989 |
Non-accrual | 4,938 | 858 |
One-to-four family residential and cooperative/condominium apartment | Total Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 14,339 | 902 |
One-to-four family residential and cooperative/condominium apartment | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 3,135 | 0 |
One-to-four family residential and cooperative/condominium apartment | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 1,245 | 0 |
One-to-four family residential and cooperative/condominium apartment | Loans 90 Days or More Past Due and Still Accruing Interest | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 5,021 | 44 |
One-to-four family residential and cooperative/condominium apartment | Current | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 669,326 | 184,087 |
Multifamily residential and residential mixed-use | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 3,468,262 | 2,758,743 |
Non-accrual | 859 | 1,863 |
Multifamily residential and residential mixed-use | Total Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 13,848 | 2,300 |
Multifamily residential and residential mixed-use | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 10,251 | 0 |
Multifamily residential and residential mixed-use | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 2,738 | 0 |
Multifamily residential and residential mixed-use | Loans 90 Days or More Past Due and Still Accruing Interest | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 437 | |
Multifamily residential and residential mixed-use | Current | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 3,454,414 | 2,756,443 |
Commercial real estate ("CRE") | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 3,814,437 | 1,878,167 |
Non-accrual | 4,122 | 2,704 |
Commercial real estate ("CRE") | Total Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 14,555 | 18,055 |
Commercial real estate ("CRE") | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 8,360 | 15,351 |
Commercial real estate ("CRE") | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 1,069 | 0 |
Commercial real estate ("CRE") | Loans 90 Days or More Past Due and Still Accruing Interest | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 1,004 | 0 |
Commercial real estate ("CRE") | Current | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 3,799,882 | 1,860,112 |
Acquisition, development, and construction ("ADC") | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 285,379 | 156,296 |
Non-accrual | 0 | 0 |
Acquisition, development, and construction ("ADC") | Total Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 17,700 | 0 |
Acquisition, development, and construction ("ADC") | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 17,700 | 0 |
Acquisition, development, and construction ("ADC") | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 0 | 0 |
Acquisition, development, and construction ("ADC") | Loans 90 Days or More Past Due and Still Accruing Interest | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 0 | 0 |
Acquisition, development, and construction ("ADC") | Current | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 267,679 | 156,296 |
Commercial and Industrial ("C&I") Loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 1,012,415 | 641,533 |
Non-accrual | 23,727 | 12,502 |
Commercial and Industrial ("C&I") Loans | Total Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 37,401 | 16,267 |
Commercial and Industrial ("C&I") Loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 10,962 | 0 |
Commercial and Industrial ("C&I") Loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 2,455 | 917 |
Commercial and Industrial ("C&I") Loans | Loans 90 Days or More Past Due and Still Accruing Interest | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 257 | 2,848 |
Commercial and Industrial ("C&I") Loans | Current | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 975,014 | 625,266 |
Commercial and Industrial ("C&I") Loans | Total real estate loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 5,619,728 | |
Other Loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 20,713 | 2,316 |
Non-accrual | 374 | 1 |
Other Loans | Total Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 1,106 | 10 |
Other Loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 730 | 8 |
Other Loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 2 | 1 |
Other Loans | Loans 90 Days or More Past Due and Still Accruing Interest | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | 0 | 0 |
Other Loans | Current | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans | $ 19,607 | $ 2,306 |
LOANS HELD FOR INVESTMENT, NE_6
LOANS HELD FOR INVESTMENT, NET - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | $ 17,069 | |
Individually evaluated for impairment | 6,474 | |
Commercial real estate ("CRE") | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 2,704 | |
Multifamily residential and residential mixed-use | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 1,863 | |
Commercial and Industrial ("C&I") Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 12,502 | |
Individually evaluated for impairment | $ 6,474 | |
Collateral Dependent Loans | Commercial real estate ("CRE") | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | $ 53,200 | |
Individually evaluated for impairment | 7,600 | |
Collateral Dependent Loans | Multifamily residential and residential mixed-use | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 8,500 | |
Individually evaluated for impairment | 600 | |
Collateral Dependent Loans | Commercial and Industrial ("C&I") Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 4,400 | |
Individually evaluated for impairment | $ 700 |
LOANS HELD FOR INVESTMENT, NE_7
LOANS HELD FOR INVESTMENT, NET - Modified as TDRs (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Provision for credit losses | $ (5,187,000) | $ 5,931,000 | $ 6,344,000 | $ 20,003,000 |
Number of Loans | 1 | 3 | ||
Pre-Modification Outstanding Recorded Investment | $ 10,506,000 | |||
Post-Modification Outstanding Recorded Investment | 10,538,000 | |||
TDRs | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Modifications recorded investment | $ 528,000 | $ 528,000 | ||
Provision for credit losses | 481,000 | |||
Commitments to lend additional amounts | $ 0 | |||
One-to-four family residential and cooperative/condominium apartment | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Number of Loans | loan | 1 | |||
Pre-Modification Outstanding Recorded Investment | $ 50,000 | |||
Post-Modification Outstanding Recorded Investment | $ 50,000 | |||
Commercial real estate ("CRE") | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Number of Loans | loan | 1 | |||
Pre-Modification Outstanding Recorded Investment | $ 10,000,000 | |||
Post-Modification Outstanding Recorded Investment | $ 10,000,000 | |||
Commercial and Industrial ("C&I") Loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Number of Loans | loan | 1 | |||
Pre-Modification Outstanding Recorded Investment | $ 456,000 | |||
Post-Modification Outstanding Recorded Investment | $ 488,000 |
LOANS HELD FOR INVESTMENT, NE_8
LOANS HELD FOR INVESTMENT, NET - Deferral Loans (Details) $ in Thousands | Sep. 30, 2021USD ($)loan | Dec. 31, 2020USD ($) | |
CARES Act Loan [Abstract] | |||
Balance | $ 9,284,871 | $ 5,622,044 | |
COVID-19 [Member] | |||
CARES Act Loan [Abstract] | |||
Number of loans | loan | 17 | ||
Balance | [1] | $ 26,603 | |
% of portfolio | 0.30% | ||
One-to-four family residential and cooperative/condominium apartment | |||
CARES Act Loan [Abstract] | |||
Balance | $ 683,665 | 184,989 | |
One-to-four family residential and cooperative/condominium apartment | COVID-19 [Member] | |||
CARES Act Loan [Abstract] | |||
Number of loans | loan | 10 | ||
Balance | [1] | $ 9,255 | |
% of portfolio | 1.40% | ||
Commercial real estate ("CRE") | |||
CARES Act Loan [Abstract] | |||
Balance | $ 3,814,437 | 1,878,167 | |
Commercial real estate ("CRE") | COVID-19 [Member] | |||
CARES Act Loan [Abstract] | |||
Number of loans | loan | 1 | ||
Balance | [1] | $ 3,487 | |
% of portfolio | 0.10% | ||
Commercial and Industrial ("C&I") Loans | |||
CARES Act Loan [Abstract] | |||
Balance | $ 1,012,415 | $ 641,533 | |
Commercial and Industrial ("C&I") Loans | COVID-19 [Member] | |||
CARES Act Loan [Abstract] | |||
Number of loans | loan | 6 | ||
Balance | [1] | $ 13,861 | |
% of portfolio | 1.40% | ||
[1] | Amount excludes net deferred costs due to immateriality. |
LOANS HELD FOR INVESTMENT, NE_9
LOANS HELD FOR INVESTMENT, NET - Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Percentage of aggregate rental income | 50.00% | ||||
Loans | $ 9,284,871 | $ 9,284,871 | $ 5,622,044 | ||
2021 | 1,329,531 | 1,329,531 | |||
2020 | 1,608,571 | 1,608,571 | |||
2019 | 1,354,530 | 1,354,530 | |||
2018 | 780,886 | 780,886 | |||
2017 | 954,652 | 954,652 | |||
2016 and Prior | 2,577,987 | 2,577,987 | |||
Revolving | 619,704 | 619,704 | |||
Revolving-Term | 38,297 | 38,297 | |||
Total Loans | 9,264,158 | 9,264,158 | |||
Pass | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
2021 | 1,321,842 | 1,321,842 | |||
2020 | 1,582,785 | 1,582,785 | |||
2019 | 1,279,298 | 1,279,298 | |||
2018 | 684,132 | 684,132 | |||
2017 | 842,155 | 842,155 | |||
2016 and Prior | 2,363,465 | 2,363,465 | |||
Revolving | 578,714 | 578,714 | |||
Revolving-Term | 28,110 | 28,110 | |||
Total Loans | 8,680,501 | 8,680,501 | |||
Special Mention | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
2021 | 5,354 | 5,354 | |||
2020 | 16,624 | 16,624 | |||
2019 | 15,153 | 15,153 | |||
2018 | 8,285 | 8,285 | |||
2017 | 23,907 | 23,907 | |||
2016 and Prior | 40,023 | 40,023 | |||
Revolving | 2,531 | 2,531 | |||
Revolving-Term | 2,457 | 2,457 | |||
Total Loans | 114,334 | 114,334 | |||
Substandard | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
2021 | 2,335 | 2,335 | |||
2020 | 9,162 | 9,162 | |||
2019 | 49,886 | 49,886 | |||
2018 | 87,694 | 87,694 | |||
2017 | 76,601 | 76,601 | |||
2016 and Prior | 174,469 | 174,469 | |||
Revolving | 38,459 | 38,459 | |||
Revolving-Term | 7,730 | 7,730 | |||
Total Loans | 446,336 | 446,336 | |||
Doubtful | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
2019 | 10,193 | 10,193 | |||
2018 | 775 | 775 | |||
2017 | 11,989 | 11,989 | |||
2016 and Prior | 30 | 30 | |||
Total Loans | 22,987 | 22,987 | |||
Criticized | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Sold amount | 11,900 | $ 3,000 | 66,500 | $ 10,000 | |
Total real estate loans | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 8,251,743 | 8,251,743 | 4,978,195 | ||
Total real estate loans | Pass | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 4,681,059 | ||||
Total real estate loans | Special Mention | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 83,761 | ||||
Total real estate loans | Substandard | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 213,375 | ||||
Total real estate loans | Doubtful | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 0 | ||||
One-to-four family residential and cooperative/condominium apartment | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 683,665 | 683,665 | 184,989 | ||
2021 | 104,830 | 104,830 | |||
2020 | 94,776 | 94,776 | |||
2019 | 88,599 | 88,599 | |||
2018 | 81,622 | 81,622 | |||
2017 | 86,626 | 86,626 | |||
2016 and Prior | 160,666 | 160,666 | |||
Revolving | 53,329 | 53,329 | |||
Revolving-Term | 13,217 | 13,217 | |||
Total Loans | 683,665 | 683,665 | |||
One-to-four family residential and cooperative/condominium apartment | Pass | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 183,293 | ||||
2021 | 104,830 | 104,830 | |||
2020 | 93,315 | 93,315 | |||
2019 | 86,214 | 86,214 | |||
2018 | 79,981 | 79,981 | |||
2017 | 84,075 | 84,075 | |||
2016 and Prior | 143,807 | 143,807 | |||
Revolving | 52,483 | 52,483 | |||
Revolving-Term | 11,162 | 11,162 | |||
Total Loans | 655,867 | 655,867 | |||
One-to-four family residential and cooperative/condominium apartment | Special Mention | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 0 | ||||
2019 | 337 | 337 | |||
2018 | 756 | 756 | |||
2017 | 345 | 345 | |||
2016 and Prior | 2,168 | 2,168 | |||
Revolving | 846 | 846 | |||
Revolving-Term | 1,089 | 1,089 | |||
Total Loans | 5,541 | 5,541 | |||
One-to-four family residential and cooperative/condominium apartment | Substandard | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 1,696 | ||||
2020 | 1,461 | 1,461 | |||
2019 | 2,048 | 2,048 | |||
2018 | 862 | 862 | |||
2017 | 2,206 | 2,206 | |||
2016 and Prior | 14,691 | 14,691 | |||
Revolving-Term | 966 | 966 | |||
Total Loans | 22,234 | 22,234 | |||
One-to-four family residential and cooperative/condominium apartment | Doubtful | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 0 | ||||
2018 | 23 | 23 | |||
Total Loans | 23 | 23 | |||
Multifamily residential and residential mixed-use | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 3,468,262 | 3,468,262 | 2,758,743 | ||
2021 | 426,164 | 426,164 | |||
2020 | 360,450 | 360,450 | |||
2019 | 543,514 | 543,514 | |||
2018 | 221,003 | 221,003 | |||
2017 | 437,487 | 437,487 | |||
2016 and Prior | 1,470,245 | 1,470,245 | |||
Revolving | 8,574 | 8,574 | |||
Revolving-Term | 825 | 825 | |||
Total Loans | 3,468,262 | 3,468,262 | |||
Multifamily residential and residential mixed-use | Pass | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 2,523,258 | ||||
2021 | 426,164 | 426,164 | |||
2020 | 347,900 | 347,900 | |||
2019 | 493,077 | 493,077 | |||
2018 | 193,738 | 193,738 | |||
2017 | 373,965 | 373,965 | |||
2016 and Prior | 1,329,688 | 1,329,688 | |||
Revolving | 5,111 | 5,111 | |||
Revolving-Term | 825 | 825 | |||
Total Loans | 3,170,468 | 3,170,468 | |||
Multifamily residential and residential mixed-use | Special Mention | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 56,400 | ||||
2020 | 12,550 | 12,550 | |||
2019 | 14,551 | 14,551 | |||
2017 | 11,842 | 11,842 | |||
2016 and Prior | 22,378 | 22,378 | |||
Total Loans | 61,321 | 61,321 | |||
Multifamily residential and residential mixed-use | Substandard | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 179,085 | ||||
2019 | 35,886 | 35,886 | |||
2018 | 27,265 | 27,265 | |||
2017 | 51,680 | 51,680 | |||
2016 and Prior | 118,179 | 118,179 | |||
Revolving | 3,463 | 3,463 | |||
Total Loans | 236,473 | 236,473 | |||
Multifamily residential and residential mixed-use | Doubtful | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 0 | ||||
Commercial real estate ("CRE") | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 3,814,437 | 3,814,437 | 1,878,167 | ||
2021 | 643,923 | 643,923 | |||
2020 | 876,483 | 876,483 | |||
2019 | 585,974 | 585,974 | |||
2018 | 375,719 | 375,719 | |||
2017 | 368,772 | 368,772 | |||
2016 and Prior | 919,079 | 919,079 | |||
Revolving | 39,323 | 39,323 | |||
Revolving-Term | 5,164 | 5,164 | |||
Total Loans | 3,814,437 | 3,814,437 | |||
Commercial real estate ("CRE") | Pass | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 1,831,712 | ||||
2021 | 636,234 | 636,234 | |||
2020 | 872,347 | 872,347 | |||
2019 | 578,758 | 578,758 | |||
2018 | 331,636 | 331,636 | |||
2017 | 337,930 | 337,930 | |||
2016 and Prior | 863,215 | 863,215 | |||
Revolving | 39,323 | 39,323 | |||
Revolving-Term | 5,164 | 5,164 | |||
Total Loans | 3,664,607 | 3,664,607 | |||
Commercial real estate ("CRE") | Special Mention | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 13,861 | ||||
2021 | 5,354 | 5,354 | |||
2020 | 2,384 | 2,384 | |||
2018 | 4,191 | 4,191 | |||
2017 | 11,109 | 11,109 | |||
2016 and Prior | 15,416 | 15,416 | |||
Total Loans | 38,454 | 38,454 | |||
Commercial real estate ("CRE") | Substandard | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 32,594 | ||||
2021 | 2,335 | 2,335 | |||
2020 | 1,752 | 1,752 | |||
2019 | 7,110 | 7,110 | |||
2018 | 39,892 | 39,892 | |||
2017 | 19,733 | 19,733 | |||
2016 and Prior | 40,448 | 40,448 | |||
Total Loans | 111,270 | 111,270 | |||
Commercial real estate ("CRE") | Doubtful | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 0 | ||||
2019 | 106 | 106 | |||
Total Loans | 106 | 106 | |||
Acquisition, development, and construction ("ADC") | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 285,379 | 285,379 | 156,296 | ||
2021 | 101,947 | 101,947 | |||
2020 | 69,546 | 69,546 | |||
2019 | 62,414 | 62,414 | |||
2018 | 39,165 | 39,165 | |||
2017 | 8,120 | 8,120 | |||
2016 and Prior | 901 | 901 | |||
Revolving | 2,686 | 2,686 | |||
Revolving-Term | 600 | 600 | |||
Total Loans | 285,379 | 285,379 | |||
Acquisition, development, and construction ("ADC") | Pass | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 142,796 | ||||
2021 | 101,947 | 101,947 | |||
2020 | 69,546 | 69,546 | |||
2019 | 62,414 | 62,414 | |||
2018 | 24,587 | 24,587 | |||
2017 | 8,120 | 8,120 | |||
2016 and Prior | 807 | 807 | |||
Revolving | 2,686 | 2,686 | |||
Revolving-Term | 600 | 600 | |||
Total Loans | 270,707 | 270,707 | |||
Acquisition, development, and construction ("ADC") | Special Mention | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 13,500 | ||||
2018 | 1,078 | 1,078 | |||
Total Loans | 1,078 | 1,078 | |||
Acquisition, development, and construction ("ADC") | Substandard | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 0 | ||||
2018 | 13,500 | 13,500 | |||
2016 and Prior | 94 | 94 | |||
Total Loans | 13,594 | 13,594 | |||
Acquisition, development, and construction ("ADC") | Doubtful | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 0 | ||||
Commercial and Industrial ("C&I") Loans | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 1,012,415 | 1,012,415 | 641,533 | ||
2021 | 52,667 | 52,667 | |||
2020 | 207,316 | 207,316 | |||
2019 | 74,029 | 74,029 | |||
2018 | 63,377 | 63,377 | |||
2017 | 53,647 | 53,647 | |||
2016 and Prior | 27,096 | 27,096 | |||
Revolving | 515,792 | 515,792 | |||
Revolving-Term | 18,491 | 18,491 | |||
Total Loans | 1,012,415 | 1,012,415 | |||
Commercial and Industrial ("C&I") Loans | Pass | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 613,691 | ||||
2021 | 52,667 | 52,667 | |||
2020 | 199,677 | 199,677 | |||
2019 | 58,835 | 58,835 | |||
2018 | 54,190 | 54,190 | |||
2017 | 38,065 | 38,065 | |||
2016 and Prior | 25,948 | 25,948 | |||
Revolving | 479,111 | 479,111 | |||
Revolving-Term | 10,359 | 10,359 | |||
Total Loans | 918,852 | 918,852 | |||
Commercial and Industrial ("C&I") Loans | Special Mention | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 2,131 | ||||
2020 | 1,690 | 1,690 | |||
2019 | 265 | 265 | |||
2018 | 2,260 | 2,260 | |||
2017 | 611 | 611 | |||
2016 and Prior | 61 | 61 | |||
Revolving | 1,685 | 1,685 | |||
Revolving-Term | 1,368 | 1,368 | |||
Total Loans | 7,940 | 7,940 | |||
Commercial and Industrial ("C&I") Loans | Substandard | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 13,315 | ||||
2020 | 5,949 | 5,949 | |||
2019 | 4,842 | 4,842 | |||
2018 | 6,175 | 6,175 | |||
2017 | 2,982 | 2,982 | |||
2016 and Prior | 1,057 | 1,057 | |||
Revolving | 34,996 | 34,996 | |||
Revolving-Term | 6,764 | 6,764 | |||
Total Loans | 62,765 | 62,765 | |||
Commercial and Industrial ("C&I") Loans | Doubtful | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 12,396 | ||||
2019 | 10,087 | 10,087 | |||
2018 | 752 | 752 | |||
2017 | 11,989 | 11,989 | |||
2016 and Prior | 30 | 30 | |||
Total Loans | 22,858 | 22,858 | |||
Commercial and Industrial ("C&I") Loans | Total real estate loans | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 5,619,728 | ||||
Commercial and Industrial ("C&I") Loans | Total real estate loans | Pass | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 5,294,750 | ||||
Commercial and Industrial ("C&I") Loans | Total real estate loans | Special Mention | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 85,892 | ||||
Commercial and Industrial ("C&I") Loans | Total real estate loans | Substandard | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 226,690 | ||||
Commercial and Industrial ("C&I") Loans | Total real estate loans | Doubtful | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 12,396 | ||||
Other Loans | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 20,713 | 20,713 | 2,316 | ||
Other Loans | Credit Risk Profile | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 20,713 | 20,713 | |||
Other Loans | Performing | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 2,315 | ||||
Other Loans | Performing | Credit Risk Profile | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | 20,339 | 20,339 | |||
Other Loans | Non-Accrual | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | $ 1 | ||||
Other Loans | Non-Accrual | Credit Risk Profile | |||||
Credit Risk Profile of Real Estate Loans [Abstract] | |||||
Loans | $ 374 | $ 374 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2021USD ($)leaseitem | Feb. 01, 2021USD ($) | |
LEASES | ||
Operating lease assets | $ 45.6 | |
Operating lease liabilities | $ 45.3 | |
Number of leases terminated | lease | 3 | |
Number of branches combined to other locations | item | 3 | |
Decrease in operating lease liability | $ (3.7) | |
Early termination fee | $ 4 |
LEASES - Maturities of the Comp
LEASES - Maturities of the Company's operating lease liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Rent to be Captalized | ||
2021 | $ 3,374 | |
2022 | 11,006 | |
2023 | 9,301 | |
2024 | 9,186 | |
2025 | 8,941 | |
Thereafter | 25,439 | |
Total undiscounted lease payments | 67,247 | |
Less amounts representing interest | (4,377) | |
Operating lease liabilities | $ 62,870 | $ 39,874 |
LEASES - Other information rela
LEASES - Other information related to operating leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Other information related to operating leases: | |||||
Operating lease cost | $ 4,012 | $ 1,636 | $ 11,178 | $ 4,867 | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 3,724 | $ 1,745 | $ 10,496 | $ 5,295 | |
Weighted average remaining lease term | 6 years 10 months 24 days | 6 years 10 months 24 days | 6 years 6 months | ||
Weighted average discount rate | 1.82% | 1.82% | 3.23% |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES - Cash Flow Hedges Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($)DerivativeInstrument | Sep. 30, 2021USD ($)DerivativeInstrument | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Estimated reclassification as an increase to interest expense during next twelve months | $ 356 | $ 356 |
Maximum period for future cash flows of forecasted transactions | 24 months | |
Number of derivatives terminated | DerivativeInstrument | 0 | 34 |
Termination value of derivatives | $ 785,000 | |
Non-interest income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss on termination of derivatives | $ (16,500) |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES - Classification on Consolidated Statements of Financial Condition (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)DerivativeInstrument | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)DerivativeInstrument | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)DerivativeInstrument | |
Not Designated as Hedging Instrument | |||||
Cash Flow Hedges | |||||
Loan level derivative income | $ 445 | $ 1,544 | $ 2,796 | $ 5,201 | |
Interest rate swaps related to FHLBNY advances | Designated as Hedging Instrument | |||||
Cash Flow Hedges | |||||
Count, assets | DerivativeInstrument | 4 | 4 | |||
Count, liabilities | DerivativeInstrument | 32 | ||||
Notional amount, assets | $ 150,000 | $ 150,000 | |||
Notional amount, liabilities | $ 655,000 | ||||
Fair value assets | $ 2,811 | $ 2,811 | |||
Fair value liabilities | $ 18,442 | ||||
Loan Level Interest Rate Swaps with Borrower (Assets) | Not Designated as Hedging Instrument | |||||
Cash Flow Hedges | |||||
Count, assets | DerivativeInstrument | 128 | 128 | 65 | ||
Notional amount, assets | $ 818,370 | $ 818,370 | $ 570,277 | ||
Fair value assets | $ 36,095 | $ 36,095 | $ 24,764 | ||
Loan Level Interest Rate Swaps with Borrower (Liabilities) | Not Designated as Hedging Instrument | |||||
Cash Flow Hedges | |||||
Count, liabilities | DerivativeInstrument | 61 | 61 | |||
Notional amount, liabilities | $ 439,198 | $ 439,198 | |||
Fair value liabilities | (7,414) | (7,414) | |||
Posted collateral | $ 0 | $ 0 | |||
Loan level interest rate floors with borrower | Not Designated as Hedging Instrument | |||||
Cash Flow Hedges | |||||
Count, liabilities | DerivativeInstrument | 47 | 47 | 41 | ||
Notional amount, liabilities | $ 405,685 | $ 405,685 | $ 364,643 | ||
Fair value liabilities | (4,072) | (4,072) | $ (5,832) | ||
Loan level interest rate swaps with third-party counterparties (Liabilities) | Designated as Hedging Instrument | |||||
Cash Flow Hedges | |||||
Posted collateral | $ 0 | $ 0 | |||
Loan level interest rate swaps with third-party counterparties (Liabilities) | Not Designated as Hedging Instrument | |||||
Cash Flow Hedges | |||||
Count, liabilities | DerivativeInstrument | 128 | 128 | 65 | ||
Notional amount, liabilities | $ 818,370 | $ 818,370 | $ 570,277 | ||
Fair value liabilities | (36,095) | (36,095) | $ (24,764) | ||
Posted collateral | $ 23,500 | $ 23,500 | |||
Loan level interest rate swaps with third party counterparties (Assets) | Not Designated as Hedging Instrument | |||||
Cash Flow Hedges | |||||
Count, assets | DerivativeInstrument | 61 | 61 | |||
Notional amount, assets | $ 439,198 | $ 439,198 | |||
Fair value assets | $ 7,414 | $ 7,414 | |||
Loan level interest rate floors with third-party counterparties | Not Designated as Hedging Instrument | |||||
Cash Flow Hedges | |||||
Count, assets | DerivativeInstrument | 47 | 47 | 41 | ||
Notional amount, assets | $ 405,685 | $ 405,685 | $ 364,643 | ||
Fair value assets | $ 4,072 | $ 4,072 | $ 5,832 |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES - Effect on Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Effect of cash flow hedge accounting on Accumulated Other Comprehensive Income (Loss): | ||||
Gain (loss) recognized in other comprehensive income | $ 225 | $ 100 | $ 3,767 | $ (25,098) |
Gain recognized on termination of derivatives | (16,505) | |||
Interest Rate Products | Other Comprehensive Income | ||||
Effect of cash flow hedge accounting on Accumulated Other Comprehensive Income (Loss): | ||||
Gain (loss) recognized in other comprehensive income | 225 | 100 | 3,767 | (25,098) |
Interest Rate Products | Other Comprehensive Income | Interest Expense | ||||
Effect of cash flow hedge accounting on Accumulated Other Comprehensive Income (Loss): | ||||
Loss reclassified from other comprehensive income into interest expense | $ (38) | $ (2,319) | (902) | $ (3,679) |
Interest Rate Products | Other Comprehensive Income | Derivatives. | ||||
Effect of cash flow hedge accounting on Accumulated Other Comprehensive Income (Loss): | ||||
Gain recognized on termination of derivatives | $ 16,505 |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITIES - Credit Risk Related Contingent Features (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)item | |
Credit Risk Related Contingent Features [Abstract] | |
Fair value of derivative liability, including accrued interest | $ | $ 24.6 |
Number of provisions breached | item | 0 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Financial Assets | |||||
Derivative assets | $ 41,700 | $ 41,700 | $ 18,932 | ||
Financial Liabilities | |||||
Derivative liabilities | 38,889 | 38,889 | 37,374 | ||
Impaired Loans [Abstract] | |||||
Individually evaluated CRE loans with an allowance for credit losses, Outstanding balance | 12,502 | ||||
Valuation allowance | 6,474 | ||||
Provision for credit losses | (5,187) | $ 5,931 | 6,344 | $ 20,003 | |
Recurring | Cash flow hedges | |||||
Financial Assets | |||||
Derivative assets | 2,811 | 2,811 | |||
Financial Liabilities | |||||
Derivative liabilities | 18,442 | ||||
Recurring | Freestanding derivatives | |||||
Financial Assets | |||||
Derivative assets | 38,889 | 38,889 | 30,596 | ||
Financial Liabilities | |||||
Derivative liabilities | 38,889 | 38,889 | 30,596 | ||
Recurring | Level 2 Inputs [Member] | Cash flow hedges | |||||
Financial Assets | |||||
Derivative assets | 2,811 | 2,811 | |||
Financial Liabilities | |||||
Derivative liabilities | 18,442 | ||||
Recurring | Level 2 Inputs [Member] | Freestanding derivatives | |||||
Financial Assets | |||||
Derivative assets | 38,889 | 38,889 | 30,596 | ||
Financial Liabilities | |||||
Derivative liabilities | 38,889 | 38,889 | 30,596 | ||
Nonrecurring [Member] | |||||
Impaired Loans [Abstract] | |||||
Individually evaluated CRE loans with an allowance for credit losses, Outstanding balance | 63,900 | 63,900 | |||
Valuation allowance | 8,800 | 8,800 | |||
Provision for credit losses | 9,000 | 8,700 | |||
Carrying amount of impaired loans | 0 | ||||
Nonrecurring [Member] | Level 3 Inputs [Member] | |||||
Impaired Loans [Abstract] | |||||
Individually evaluated loans | 55,146 | 55,146 | |||
Carrying Amount | Nonrecurring [Member] | |||||
Impaired Loans [Abstract] | |||||
Individually evaluated loans | 55,146 | 55,146 | |||
Agency Notes | Recurring | |||||
Financial Assets | |||||
Securities available-for-sale: | 81,018 | 81,018 | 47,421 | ||
Agency Notes | Recurring | Level 2 Inputs [Member] | |||||
Financial Assets | |||||
Securities available-for-sale: | 81,018 | 81,018 | 47,421 | ||
Treasury Securities | Recurring | |||||
Financial Assets | |||||
Securities available-for-sale: | 247,696 | 247,696 | |||
Treasury Securities | Recurring | Level 2 Inputs [Member] | |||||
Financial Assets | |||||
Securities available-for-sale: | 247,696 | 247,696 | |||
Corporate Securities | Recurring | |||||
Financial Assets | |||||
Securities available-for-sale: | 126,833 | 126,833 | 64,461 | ||
Corporate Securities | Recurring | Level 2 Inputs [Member] | |||||
Financial Assets | |||||
Securities available-for-sale: | 126,833 | 126,833 | 64,461 | ||
Pass-through MBS issued by GSEs | Recurring | |||||
Financial Assets | |||||
Securities available-for-sale: | 143,483 | ||||
Mortgage-backed securities | 621,957 | 621,957 | |||
Pass-through MBS issued by GSEs | Recurring | Level 2 Inputs [Member] | |||||
Financial Assets | |||||
Securities available-for-sale: | 143,483 | ||||
Mortgage-backed securities | 621,957 | 621,957 | |||
Agency Collateralized Mortgage Obligations ("CMOs") | Recurring | |||||
Financial Assets | |||||
Securities available-for-sale: | 590,426 | 590,426 | 283,496 | ||
Agency Collateralized Mortgage Obligations ("CMOs") | Recurring | Level 2 Inputs [Member] | |||||
Financial Assets | |||||
Securities available-for-sale: | 590,426 | 590,426 | 283,496 | ||
State and municipal obligations. | Recurring | |||||
Financial Assets | |||||
Securities available-for-sale: | 41,133 | 41,133 | |||
State and municipal obligations. | Recurring | Level 2 Inputs [Member] | |||||
Financial Assets | |||||
Securities available-for-sale: | $ 41,133 | $ 41,133 | |||
Domestic Equity Mutual Funds | Recurring | |||||
Financial Assets | |||||
Marketable equity securities (Registered Mutual Funds) | 1,769 | ||||
Domestic Equity Mutual Funds | Recurring | Level 1 Inputs [Member] | |||||
Financial Assets | |||||
Marketable equity securities (Registered Mutual Funds) | 1,769 | ||||
International Equity Mutual Funds | Recurring | |||||
Financial Assets | |||||
Marketable equity securities (Registered Mutual Funds) | 468 | ||||
International Equity Mutual Funds | Recurring | Level 1 Inputs [Member] | |||||
Financial Assets | |||||
Marketable equity securities (Registered Mutual Funds) | 468 | ||||
Fixed Income Mutual Funds | Recurring | |||||
Financial Assets | |||||
Marketable equity securities (Registered Mutual Funds) | 3,733 | ||||
Fixed Income Mutual Funds | Recurring | Level 1 Inputs [Member] | |||||
Financial Assets | |||||
Marketable equity securities (Registered Mutual Funds) | $ 3,733 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Balance Sheet Groupings (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Financial Assets [Abstract] | ||
Cash and due from banks | $ 629,011 | $ 243,603 |
Investment securities held-to-maturity, fair value | 40,303 | |
Loans held for investment, net | 9,148,470 | 5,580,583 |
Accrued interest receivable | 43,284 | 34,815 |
Financial Liabilities [Abstract] | ||
Savings, money market and checking accounts | 9,657,821 | 3,202,484 |
Certificates of Deposits ("CDs") | 1,016,216 | 1,322,638 |
FHLBNY Advances | 25,000 | 1,204,010 |
Subordinated debt, net | 197,142 | 114,052 |
Other short-term borrowings | 2,629 | 120,000 |
Accrued interest payable | 1,630 | 1,734 |
Fair Value | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 629,011 | 243,603 |
Investment securities held-to-maturity, fair value | 40,303 | |
Loans held for investment, net | 9,212,454 | 5,598,787 |
Accrued interest receivable | 43,284 | 34,815 |
Financial Liabilities [Abstract] | ||
Savings, money market and checking accounts | 9,657,821 | 3,202,484 |
Certificates of Deposits ("CDs") | 1,021,029 | 1,328,554 |
FHLBNY Advances | 25,015 | 1,207,890 |
Subordinated debt, net | 203,355 | 114,340 |
Other short-term borrowings | 2,629 | 120,000 |
Accrued interest payable | 1,630 | 1,734 |
Fair Value | Level 1 Inputs [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 629,011 | 243,603 |
Accrued interest receivable | 2 | |
Financial Liabilities [Abstract] | ||
Savings, money market and checking accounts | 9,657,821 | 3,202,484 |
Other short-term borrowings | 2,629 | 120,000 |
Fair Value | Level 2 Inputs [Member] | ||
Financial Assets [Abstract] | ||
Investment securities held-to-maturity, fair value | 40,303 | |
Accrued interest receivable | 4,228 | 1,584 |
Financial Liabilities [Abstract] | ||
Certificates of Deposits ("CDs") | 1,021,029 | 1,328,554 |
FHLBNY Advances | 25,015 | 1,207,890 |
Subordinated debt, net | 203,355 | 114,340 |
Accrued interest payable | 1,630 | 1,734 |
Fair Value | Level 3 Inputs [Member] | ||
Financial Assets [Abstract] | ||
Loans held for investment, net | 9,212,454 | 5,598,787 |
Accrued interest receivable | $ 39,056 | $ 33,229 |
OTHER INTANGIBLE ASSETS - Carry
OTHER INTANGIBLE ASSETS - Carrying Amount and Accumulated Amortization of Intangible Assets, Amortizable and Arose from Merger (Details) - USD ($) $ in Thousands | Feb. 01, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Acquired intangible assets: | |||
Gross carrying value | $ 10,984 | ||
Accumulated amortization | (1,907) | ||
Net carrying amount | 9,077 | $ 0 | |
Core deposits | |||
Acquired intangible assets: | |||
Gross Carrying Amount | $ 10,200 | ||
Gross carrying value | 10,204 | ||
Accumulated amortization | (1,427) | ||
Net carrying amount | 8,777 | ||
Noncompete Agreements | |||
Acquired intangible assets: | |||
Gross Carrying Amount | $ 780 | ||
Gross carrying value | 780 | ||
Accumulated amortization | (480) | ||
Net carrying amount | $ 300 |
OTHER INTANGIBLE ASSETS - Narra
OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
OTHER INTANGIBLE ASSETS | ||||
Amortization expense recognized on intangible assets | $ 715 | $ 0 | $ 1,907 | $ 0 |
OTHER INTANGIBLE ASSETS - Estim
OTHER INTANGIBLE ASSETS - Estimated Amortization Expense for Next Five Years (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
OTHER INTANGIBLE ASSETS | ||
2021 | $ 715 | |
2022 | 1,878 | |
2023 | 1,425 | |
2024 | 1,163 | |
2025 | 958 | |
Thereafter | 2,938 | |
Net carrying amount | $ 9,077 | $ 0 |
FEDERAL HOME LOAN BANK OF NEW_3
FEDERAL HOME LOAN BANK OF NEW YORK ADVANCES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Contractual Maturity, Amount | ||
Overnight | $ 0 | $ 0 |
2021 | 25,000 | |
2021 | 1,144,010 | |
2022 | 60,000 | |
Total FHLBNY advances | $ 25,000 | $ 1,204,010 |
Weighted Average Rate | ||
2021 | 0.35% | 0.52% |
2022 | 0.60% | |
Weighted Average Rate for total FHLB advances (as a percent) | 0.35% | 0.53% |
FEDERAL HOME LOAN BANK OF NEW_4
FEDERAL HOME LOAN BANK OF NEW YORK ADVANCES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Feb. 01, 2021 | Dec. 31, 2020 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||
Advances collateralized amount | $ 4,250,000,000 | $ 2,150,000,000 | |||
Maximum borrowing amount from FHLBNY term advances | 3,710,000,000 | ||||
FHLBNY advances with contractual maturities after 2021 | 0 | 0 | |||
FHLBNY advances with an overnight contractual maturity | 0 | $ 0 | |||
Prepayments penalty expenses | $ 0 | 1,800,000 | $ 0 | ||
Legacy Dime | |||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||
FHLBNY advances | $ 216,300,000 | ||||
Extinguishment of FHLBNY | $ 209,000,000 | ||||
Weighted average rate | 1.31% |
SUBORDINATED DEBENTURES (Detail
SUBORDINATED DEBENTURES (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2017 | Feb. 01, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||||||
Fixed-to-floating rate subordinated debentures | $ 80 | |||||||
Subordinated notes payable, net | $ 197.1 | $ 197.1 | $ 114.1 | |||||
Interest expense related to the subordinated debt | $ 2.2 | $ 1.3 | $ 6.3 | $ 4 | ||||
Subordinated Debentures | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed-to-floating rate subordinated debentures | $ 115 | $ 115 | ||||||
Fixed annual interest rate | 4.50% | 4.50% | ||||||
Basis points | 2.66% | |||||||
Callable Notes After Five Years | Subordinated Debentures | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed-to-floating rate subordinated debentures | $ 40 | |||||||
Debt Instrument, Term | 5 years | |||||||
Fixed annual interest rate | 0.0525% | |||||||
Debt instrument variable rate description | three-month LIBOR | |||||||
Basis points | 3.60% | |||||||
Callable Notes After Ten Years | Subordinated Debentures | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed-to-floating rate subordinated debentures | $ 40 | |||||||
Debt Instrument, Term | 10 years | |||||||
Fixed annual interest rate | 0.0575% | |||||||
Debt instrument variable rate description | three-month LIBOR | |||||||
Basis points | 3.45% |
RETIREMENT AND POSTRETIREMENT_3
RETIREMENT AND POSTRETIREMENT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Retirement and Postretirement Plans [Abstract] | |||||
Curtailment loss | $ 1,543 | ||||
Distributions to Retired Participants [Abstract] | |||||
Defined contribution plan description | 100% of each employee’s contributions up to 1% of each employee’s compensation plus 50% of each employee’s contributions over 1% but not in excess of 6% of each employee’s compensation for a maximum contribution of 3.5% of a participating employee’s compensation. | ||||
Minimum employee contribution percentage | 1.00% | ||||
Percentage of employer matching contribution | 50.00% | ||||
Threshold limit percentage of employee compensation | 6.00% | ||||
Maximum percentage of annual contribution per employee | 3.50% | ||||
Cash | $ 9,200 | ||||
Market value of Common Stock from Employee Stock Ownership Plan of BMP (000 shares) | $ 2,400 | ||||
Returned to treasury Stock | 41,101 | ||||
Gross lump-sum distribution | $ 11,600 | ||||
Non-cash tax benefit | $ 301 | ||||
Distribution of common stock (in shares) | 88,081 | ||||
BMP Retirement Plan | |||||
Retirement and Postretirement Plans [Abstract] | |||||
Planned contributions/benefit payments | $ 0 | $ 0 | |||
Retirement Plans [Member] | BMP Retirement Plan | |||||
Net Periodic Benefit Cost [Abstract] | |||||
Service cost | 223 | 594 | |||
Interest cost | 302 | 854 | |||
Expected return on assets | (1,244) | (3,473) | |||
Amortization of unrealized loss | 207 | 619 | |||
Net periodic (credit) cost | (512) | (1,406) | |||
Retirement Plans [Member] | Employee Retirement Plan [Member] | |||||
Net Periodic Benefit Cost [Abstract] | |||||
Interest cost | 183 | $ 10 | 549 | $ 30 | |
Expected return on assets | (428) | (1,284) | |||
Unrecognized past service liability | (2) | (6) | |||
Amortization of unrealized loss | 229 | 687 | |||
Net periodic (credit) cost | (16) | 8 | (48) | 24 | |
Retirement Plans [Member] | BMP, Postretirement And Outside Director Retirement Plans | |||||
Net Periodic Benefit Cost [Abstract] | |||||
Interest cost | 241 | 723 | |||
Expected return on assets | (428) | (1,284) | |||
Amortization of unrealized loss | 274 | 822 | |||
Net periodic (credit) cost | $ 87 | $ 261 | |||
Retirement Plans [Member] | BMP, Employee and Outside Director Retirement Plans [Member] | |||||
Retirement and Postretirement Plans [Abstract] | |||||
Planned contributions/benefit payments | $ 2,800 | 2,800 | |||
Actual contributions/benefit payments | $ 6,200 | ||||
Curtailment loss | $ 1,500 |
STOCK-BASED COMPENSATION, (Deta
STOCK-BASED COMPENSATION, (Details) - shares | Sep. 30, 2021 | Dec. 31, 2020 |
Dime 2020 Equity Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for issuance | 1,123,639 | |
Unvested and outstanding share-based awards | 0 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested and outstanding share-based awards | 38,948,000 | 0 |
Sales Incentive Award Program | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested and outstanding share-based awards | 0 |
STOCK-BASED COMPENSATION, Stock
STOCK-BASED COMPENSATION, Stock Option Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Information Related to Stock Option Plans [Abstract] | ||
Cash received for option exercise cost | $ 396 | $ 38 |
Stock Option Awards | ||
Number of Options [Roll Forward] | ||
Options outstanding, beginning of period (in shares) | 28,842 | |
Options outstanding at January 1, 2021 as adjusted for conversion (in shares) | 18,685 | |
Options acquired (in shares) | 180,020 | |
Options exercised (in shares) | (17,102) | |
Options forfeited (in shares) | (29,421) | |
Options outstanding, end of period (in shares) | 152,182 | |
Options vested and exercisable, end of period (in shares) | 152,182 | |
Weighted-Average Exercise Price [Abstract] | ||
Options outstanding, beginning of period (in dollars per share) | $ 15.05 | |
Options outstanding at January 1, 2021 as adjusted for conversion (in dollars per share) | 23.23 | |
Options acquired (in dollars per share) | 35.39 | |
Options exercised (in dollars per share) | 23.40 | |
Options forfeited (in dollars per share) | 35.38 | |
Options outstanding, end of period (in dollars per share) | 35.24 | |
Options vested and exercisable. end of period (in dollars per share) | $ 35.24 | |
Weighted-Average Remaining Contractual Years | ||
Options outstanding | 7 years 4 months 24 days | |
Options vested and exercisable | 7 years 4 months 24 days | |
Aggregate Intrinsic Value [Abstract] | ||
Options outstanding | $ 18 | |
Options vested and exercisable | 18 | |
Information Related to Stock Option Plans [Abstract] | ||
Cash received for option exercise cost | 396 | 38 |
Intrinsic value of options exercised | $ 77 | $ 8 |
STOCK-BASED COMPENSATION, Restr
STOCK-BASED COMPENSATION, Restricted Stock Awards (Details) - Restricted Stock Awards [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restricted Stock Awards [Abstract] | ||||
Unrecognized compensation cost | $ 8,300 | $ 8,300 | ||
Weighted average remaining years for which compensation expense is to be recognized | 2 years 9 months 18 days | |||
Number of Shares [Roll Forward] | ||||
Shares acquired in the merger (in shares) | 101,778 | |||
Shares granted (in shares) | 390,027 | |||
Shares vested (in shares) | (9,838) | |||
Shares forfeited (in shares) | (33,089) | |||
Unvested allocated shares outstanding, end of period (in shares) | 448,878 | 448,878 | ||
Weighted-Average Grant-Date Fair Value [Abstract] | ||||
Shares acquired in the merger (in dollars per share) | $ 25.98 | |||
Shares granted (in dollars per share) | 26.48 | |||
Shares vested (in dollars per share) | 25.41 | |||
Shares forfeited (in dollars per share) | 25.73 | |||
Unvested allocated shares outstanding, end of period (in dollars per share) | $ 26.45 | $ 26.45 | ||
Information Related to RSAs | ||||
Share-based Payment Arrangement, Expense | $ 1,454 | $ 444 | $ 3,804 | $ 1,311 |
Income tax benefit recognized on vesting of RSA | $ (38) | $ (86) | $ (95) | |
Weighted average remaining years for which compensation expense is to be recognized | 2 years 9 months 18 days |
STOCK-BASED COMPENSATION, Perfo
STOCK-BASED COMPENSATION, Performance Based Equity Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Performance Shares | ||||
Performance Based Equity Awards [Abstract] | ||||
Percentage of threshold target for each award eligible to be earned based on relative performance | 50.00% | |||
Percentage of target for each award eligible to be earned based on relative performance | 100.00% | |||
Percentage of maximum target for each award eligible to be earned based on relative performance | 150.00% | |||
Unrecognized compensation cost | $ 1,000 | $ 1,000 | ||
Award vesting period | 3 years | |||
Number of Shares [Roll Forward] | ||||
Shares granted (in shares) | 38,948 | |||
Expected aggregate share payout (in shares) | 25,963 | |||
Weighted-Average Grant-Date Fair Value [Abstract] | ||||
Shares granted (in dollars per share) | $ 31.40 | |||
Expected aggregate share payout (in dollars per share) | $ 31.40 | |||
Information Related to Stock Awards [Abstract] | ||||
Compensation expense recognized | 81 | $ 210 | $ 81 | $ 362 |
Unrecognized compensation cost | $ 1,000 | $ 1,000 | ||
Performance Shares | Maximum | ||||
Number of Shares [Roll Forward] | ||||
Aggregate share payout, end of period (in shares) | 38,948 | 38,948 | ||
Weighted-Average Grant-Date Fair Value [Abstract] | ||||
Aggregate share payout, end of period (in dollars per share) | $ 31.40 | $ 31.40 | ||
Sales Incentive Award Program | ||||
Performance Based Equity Awards [Abstract] | ||||
Award vesting period | 1 year | |||
Information Related to Stock Awards [Abstract] | ||||
Compensation expense recognized | $ 150 | $ 280 |
INCOME TAXES (Details)
INCOME TAXES (Details) - item | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
INCOME TAXES | ||||
Effective tax rate | 27.50% | 21.90% | 29.20% | 21.70% |
Number of significant and unusual income tax items in the period | 0 | 0 |
MERGER RELATED EXPENSES (Detail
MERGER RELATED EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Transaction costs | $ 27,300 | |||
Bridge shareholders | ||||
Business Acquisition [Line Items] | ||||
Costs associated with employee severance and other merger-related compensation expense | $ 1,100 | $ 1,400 | $ 15,000 | |
Merger expenses | 0 | $ 0 | ||
Transaction costs | $ 769 | $ 2,400 |
BRANCH RESTRUCTURING COSTS (Det
BRANCH RESTRUCTURING COSTS (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($) | |
BRANCH RESTRUCTURING COSTS | ||||
Number of branches combined into existing branches | item | 5 | 5 | ||
Restructuring costs | $ | $ 4.5 | $ 0 | $ 6.2 | $ 0 |