(State or other jurisdiction of incorporation or organization) |
(I.R.S. employer identification number) |
|
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
||
The |
||||
The |
Large Accelerated Filer ☐ |
|
Non -Accelerated Filer ☐ |
Smaller Reporting Company |
Emerging Growth Company |
Classes of Common Stock |
Number of shares outstanding at August 7, 2020 |
$0.01 Par Value |
Page |
||
PART I – FINANCIAL INFORMATION |
||
Item 1. |
4 |
|
4 |
||
5 |
||
6 |
||
7 |
||
9 |
||
10 |
||
Item 2. |
29 |
|
Item 3. |
43 |
|
Item 4. |
45 |
|
PART II - OTHER INFORMATION |
||
Item 1. |
45 |
|
Item 1A. |
45 |
|
Item 2. |
48 |
|
Item 3. |
48 |
|
Item 4. |
48 |
|
Item 5. |
48 |
|
Item 6. |
49 |
|
50 |
● | there may be increases in competitive pressure among financial institutions or from non-financial institutions; |
● | the net interest margin is subject to material short-term fluctuation based upon market rates; |
● | changes in deposit flows, loan demand or real estate values may affect the business of Dime Community Bank (the “Bank”); |
● | changes in the quality and composition of our loan or investment portfolios; |
● | changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; |
● | changes in corporate and/or individual income tax laws may adversely affect the Company’s business or financial condition or results of operations; |
● | general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry, may differ than the Company currently anticipates; |
● | legislative, regulatory or policy changes may adversely affect the Company’s business or results of operations; |
● | technological changes may be more difficult or expensive than the Company anticipates; |
● | success or consummation of new business initiatives or the integration of any acquired entities may be more difficult or expensive than the Company anticipates; |
● | the businesses of the Company and Bridge Bancorp may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; |
● | the expected growth opportunities or cost savings from the Merger may not be fully realized or may take longer to realize than expected; |
● | deposit attrition, operating costs, loss of customers and business disruption prior to and following the Merger, including adverse effects on relationships with employees and customers, may be greater than expected; |
● | the regulatory and shareholder approvals required for the Merger may not be obtained, or may not be obtained on the proposed terms or on the anticipated schedule; |
● | litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events, including the Merger, longer than the Company anticipates; and |
● | the risks referred to in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019 as updated by our Quarterly Reports on Form 10-Q. |
Item 1. | Condensed Consolidated Financial Statements |
June 30, 2020 |
December 31, 2019 |
|||||||
ASSETS: |
||||||||
Cash and due from banks |
$ |
$ |
||||||
Total cash and cash equivalents |
||||||||
Securities available-for-sale, at fair value |
||||||||
Marketable equity securities, at fair value |
||||||||
Loans: |
||||||||
Real estate |
||||||||
Commercial and industrial (“C&I”) loans |
||||||||
Other loans |
||||||||
Less allowance for loan losses |
( |
) |
( |
) |
||||
Total loans, net |
||||||||
Premises and fixed assets, net |
||||||||
Premises held for sale |
||||||||
Loans held for sale |
||||||||
Federal Home Loan Bank of New York (“FHLBNY”) capital stock |
||||||||
Bank Owned Life Insurance (“BOLI”) |
||||||||
Goodwill |
||||||||
Operating lease assets |
||||||||
Other assets |
||||||||
Total Assets |
$ |
$ |
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Liabilities: |
||||||||
Due to depositors: |
||||||||
Interest-bearing deposits |
$ |
$ |
||||||
Non-interest-bearing deposits |
||||||||
Total deposits |
||||||||
Escrow and other deposits |
||||||||
FHLBNY advances |
||||||||
Subordinated debt, net |
||||||||
Other borrowings |
||||||||
Operating lease liabilities |
||||||||
Other liabilities |
||||||||
Total Liabilities |
||||||||
Stockholders’ Equity: |
||||||||
Preferred stock, Series A ($ | ||||||||
Common stock ($ | ||||||||
Additional paid-in capital |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive loss, net of deferred taxes |
( |
) |
( |
) |
||||
Unearned equity awards |
( |
) |
( |
) |
||||
Common stock held by the Benefit Maintenance Plan (“BMP”) |
( |
) |
( |
) |
||||
Treasury stock, at cost ( |
( |
) |
( |
) |
||||
Total Stockholders’ Equity |
||||||||
Total Liabilities and Stockholders’ Equity |
$ |
$ |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Interest income: |
||||||||||||||||
Loans secured by real estate |
$ |
$ |
$ |
$ |
||||||||||||
C&I loans |
||||||||||||||||
Other loans |
||||||||||||||||
Mortgage-backed securities (“MBS”) |
||||||||||||||||
Investment securities |
||||||||||||||||
Other short-term investments |
||||||||||||||||
Total interest income |
||||||||||||||||
Interest expense: |
||||||||||||||||
Deposits and escrow |
||||||||||||||||
Borrowed funds |
||||||||||||||||
Total interest expense |
||||||||||||||||
Net interest income |
||||||||||||||||
Provision (credit) for loan losses |
( |
) |
( |
) |
||||||||||||
Net interest income after provision for loan losses |
||||||||||||||||
Non-interest income: |
||||||||||||||||
Service charges and other fees |
||||||||||||||||
Net mortgage banking income |
||||||||||||||||
Net gain on sale of equity securities |
( |
) |
||||||||||||||
Net gain on sale of securities and other assets |
( |
) |
( |
) |
||||||||||||
Gain on sale of loans |
||||||||||||||||
Income from BOLI |
||||||||||||||||
Loan level derivative income |
||||||||||||||||
Other |
||||||||||||||||
Total non-interest income |
||||||||||||||||
Non-interest expense: |
||||||||||||||||
Salaries and employee benefits |
||||||||||||||||
Severance |
||||||||||||||||
Stock benefit plan compensation expense |
||||||||||||||||
Occupancy and equipment |
||||||||||||||||
Data processing costs |
||||||||||||||||
Marketing |
||||||||||||||||
Federal deposit insurance premiums |
||||||||||||||||
Merger expenses |
||||||||||||||||
Other |
||||||||||||||||
Total non-interest expense |
||||||||||||||||
Income before income taxes |
||||||||||||||||
Income tax expense |
||||||||||||||||
Net income |
||||||||||||||||
Preferred stock dividends |
||||||||||||||||
Net income available to common stockholders |
$ |
$ |
$ |
$ |
||||||||||||
Earnings per Share: |
||||||||||||||||
Basic |
$ |
$ |
$ |
$ |
||||||||||||
Diluted |
$ |
$ |
$ |
$ |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Net Income |
$ |
$ |
$ |
$ |
||||||||||||
Other comprehensive income (loss): |
||||||||||||||||
Change in unrealized holding gain (loss) on securities available-for-sale |
||||||||||||||||
Change in pension and other postretirement obligations |
||||||||||||||||
Change in unrealized gain (loss) on derivatives |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Other comprehensive income (loss) before income taxes |
( |
) |
( |
) |
( |
) |
||||||||||
Deferred tax expense (benefit) |
( |
) |
( |
) |
( |
) |
||||||||||
Other comprehensive income (loss), net of tax |
( |
) |
( |
) |
( |
) |
||||||||||
Total comprehensive income |
$ |
$ |
$ |
$ |
Six Month Period Ended June 30, 2020 |
||||||||||||||||||||||||||||||||||||||||
Number of Shares of Common Stock |
Preferred Stock |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Loss, Net of Deferred Taxes |
Unearned Equity Awards |
Common Stock Held by BMP |
Treasury Stock, at cost |
Total Stockholders’ |
|||||||||||||||||||||||||||||||
Beginning balance as of January 1, 2020 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
|||||||||||||||||||||||
Net income |
— |
|||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax |
— |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||||
Release of shares, net of forfeitures |
( |
) |
||||||||||||||||||||||||||||||||||||||
Stock-based compensation |
— |
|||||||||||||||||||||||||||||||||||||||
Proceeds from Preferred Stock issuance, net |
— |
— |
||||||||||||||||||||||||||||||||||||||
Shares received related to tax withholding |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||
Cash dividends declared and paid |
— |
— |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||
Repurchase of shares of Common Stock |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||
Ending balance as of March 31, 2020 |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||
Net income |
— |
|||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax |
— |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||||
Exercise of stock options, net |
||||||||||||||||||||||||||||||||||||||||
Release of shares, net of forfeitures |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||
Stock-based compensation |
— |
|||||||||||||||||||||||||||||||||||||||
Proceeds from Preferred Stock issuance, net |
— |
— |
||||||||||||||||||||||||||||||||||||||
Shares received related to tax withholding |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||
Cash dividends declared and paid to preferred stockholders |
— |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||||
Cash dividends declared and paid to common stockholders |
— |
— |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||
Repurchase of shares of Common Stock |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||
Ending balance as of June 30, 2020 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
Six Month Period Ended June 30, 2019 |
||||||||||||||||||||||||||||||||||||
Number of Shares of Common Stock |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Loss, Net of Deferred Taxes |
Unearned Equity Awards |
Common Stock Held by BMP |
Treasury stock, at cost |
Total Stockholders’ Equity |
||||||||||||||||||||||||||||
Beginning balance as of January 1, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||||||||
Net Income |
— |
|||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
— |
|||||||||||||||||||||||||||||||||||
Release of shares, net of forfeitures |
( |
) |
||||||||||||||||||||||||||||||||||
Stock-based compensation |
— |
|||||||||||||||||||||||||||||||||||
Shares received related to tax withholding |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||
Cash dividends declared and paid |
— |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||
Repurchase of shares of Common Stock |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||
Ending balance as of March 31, 2019 |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||
Net Income |
— |
|||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax |
— |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||
Exercise of stock options |
||||||||||||||||||||||||||||||||||||
Release of shares, net of forfeitures |
( |
) |
||||||||||||||||||||||||||||||||||
Stock-based compensation |
— |
|||||||||||||||||||||||||||||||||||
Payments related to tax withholding for stock-based compensation |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||
Cash dividends declared and paid |
— |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||
Repurchase of shares of Common Stock |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||
Ending balance as of June 30, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
Six Months Ended June 30, |
||||||||
2020 |
2019 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ |
$ |
||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Net (gain) loss on sales of securities available-for-sale |
( |
) |
||||||
Net (gain) loss recognized on marketable equity securities |
( |
) |
||||||
Net gain on sale of loans held for sale |
( |
) |
( |
) |
||||
Net depreciation, amortization and accretion |
||||||||
Stock-based compensation |
||||||||
Provision (credit) for loan losses |
( |
) |
||||||
Originations of loans held for sale |
( |
) |
( |
) |
||||
Proceeds from sale of loans originated for sale |
||||||||
Increase in cash surrender value of BOLI |
( |
) |
( |
) |
||||
Gain from death benefits from BOLI |
( |
) |
||||||
Deferred income tax expense (benefit) |
( |
) |
||||||
Changes in assets and liabilities: |
||||||||
Increase in other assets |
( |
) |
( |
) |
||||
Increase (decrease) in other liabilities |
( |
) |
||||||
Net cash provided by Operating Activities |
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Proceeds from sales of securities available-for-sale |
||||||||
Proceeds from sales of marketable equity securities |
||||||||
Purchases of securities available-for-sale |
( |
) |
( |
) |
||||
Acquisition of marketable equity securities |
( |
) |
( |
) |
||||
Proceeds from calls and principal repayments of securities available-for-sale |
||||||||
Purchase of BOLI |
( |
) |
||||||
Proceeds received from cash surrender value of BOLI |
||||||||
Loans purchased |
( |
) |
||||||
Proceeds from the sale of portfolio loans transferred to held for sale |
||||||||
Net increase in loans |
( |
) |
( |
) |
||||
Purchases of fixed assets, net |
( |
) |
( |
) |
||||
Sale of FHLBNY capital stock, net |
||||||||
Net cash used in Investing Activities |
( |
) |
( |
) |
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Increase in due to depositors |
||||||||
Increase in escrow and other deposits |
||||||||
Repayments of FHLBNY advances |
( |
) |
( |
) |
||||
Proceeds from FHLBNY advances |
||||||||
Proceeds (repayments) of other borrowings, net |
( |
) |
||||||
Proceeds from preferred stock issuance, net |
||||||||
Proceeds from exercise of stock options |
||||||||
Release of stock for benefit plan awards |
||||||||
Payments related to tax withholding for stock-based compensation |
( |
) |
( |
) |
||||
Treasury shares repurchased |
( |
) |
( |
) |
||||
Cash dividends paid to preferred stockholders |
( |
) |
||||||
Cash dividends paid to common stockholders, net |
( |
) |
( |
) |
||||
Net cash provided by Financing Activities |
||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
( |
) |
||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
$ |
||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
||||||||
Cash paid for income taxes |
$ |
$ |
||||||
Cash paid for interest |
||||||||
Loans transferred to held for sale |
||||||||
Premises held for sale transferred to investment |
( |
) |
||||||
Operating lease assets in exchange for operating lease liabilities |
||||||||
Transfer of cash surrender value for BOLI to other assets |
1. | NATURE OF OPERATIONS |
2. | SUMMARY OF ACCOUNTING POLICIES |
3. | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
Securities Available-for-Sale |
Defined Benefit Plans |
Derivatives |
Total Accumulated Other Comprehensive Loss |
|||||||||||||
Balance as of January 1, 2020 |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
||||||
Other comprehensive income (loss) before reclassifications |
( |
) |
( |
) |
||||||||||||
Amounts reclassified from accumulated other comprehensive loss |
( |
) |
( |
) |
||||||||||||
Net other comprehensive income during the period |
( |
) |
( |
) |
||||||||||||
Balance as of June 30, 2020 |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
||||||
Balance as of January 1, 2019 |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
( |
) |
||||||
Other comprehensive income (loss) before reclassifications |
( |
) |
||||||||||||||
Amounts reclassified from accumulated other comprehensive loss |
( |
) |
( |
) |
||||||||||||
Net other comprehensive income during the period |
( |
) |
||||||||||||||
Balance as of June 30, 2019 |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Change in unrealized holding gain or loss on securities available-for-sale: |
||||||||||||||||
Change in net unrealized gain or loss during the period |
$ |
$ |
$ |
$ |
||||||||||||
Reclassification adjustment for net (gains) losses included in net gain on securities and other assets |
( |
) |
( |
) |
||||||||||||
Net change |
||||||||||||||||
Tax expense |
||||||||||||||||
Net change in unrealized holding gain or loss on securities available-for-sale |
||||||||||||||||
Change in pension and other postretirement obligations: |
||||||||||||||||
Reclassification adjustment for expense included in other expense |
||||||||||||||||
Change in the net actuarial gain or loss |
||||||||||||||||
Net change |
||||||||||||||||
Tax expense |
||||||||||||||||
Net change in pension and other postretirement obligations |
||||||||||||||||
Change in unrealized gain or loss on derivatives: |
||||||||||||||||
Change in net unrealized gain or loss during the period |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Reclassification adjustment for expense included in interest expense |
( |
) |
( |
) |
||||||||||||
Net change |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Tax benefit |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net change in unrealized gain or loss on derivatives |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Other comprehensive income (loss) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
4. | EARNINGS PER COMMON SHARE (“EPS”) |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Net income available to common stockholders |
$ |
$ |
$ |
$ |
||||||||||||
Less: Dividends paid and earnings allocated to participating securities |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Income attributable to common stock |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average common shares outstanding, including participating securities |
||||||||||||||||
Less: weighted average participating securities |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Weighted average common shares outstanding |
||||||||||||||||
Basic EPS |
$ |
$ |
$ |
$ |
||||||||||||
Income attributable to common stock |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average common shares outstanding |
||||||||||||||||
Weighted average common equivalent shares outstanding |
||||||||||||||||
Weighted average common and equivalent shares outstanding |
||||||||||||||||
Diluted EPS |
$ |
$ |
$ |
$ |
5. | PREFERRED STOCK |
6. | INVESTMENT AND MORTGAGE-BACKED SECURITIES |
At June 30, 2020 |
||||||||||||||||
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
|||||||||||||
Securities available-for-sale: |
||||||||||||||||
Agency Notes |
$ |
$ |
$ |
$ |
||||||||||||
Corporate Securities |
( |
) |
||||||||||||||
Pass-through MBS issued by GSEs |
||||||||||||||||
Agency Collateralized Mortgage Obligations (“CMOs”) |
( |
) |
||||||||||||||
Total securities available-for-sale |
$ |
$ |
$ |
( |
) |
$ |
At December 31, 2019 |
||||||||||||||||
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
|||||||||||||
Securities available-for-sale: |
||||||||||||||||
Agency Notes |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
Corporate Securities |
||||||||||||||||
Pass-through MBS issued by GSEs |
||||||||||||||||
Agency CMOs |
( |
) |
||||||||||||||
Total securities available-for-sale |
$ |
$ |
$ |
( |
) |
$ |
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Agency Notes: |
||||||||||||||||
Proceeds |
$ |
$ |
$ |
$ |
||||||||||||
Gross gains |
||||||||||||||||
Tax expense on gain |
||||||||||||||||
Gross losses |
||||||||||||||||
Tax benefit on loss |
||||||||||||||||
Corporate Securities: |
||||||||||||||||
Proceeds |
||||||||||||||||
Gross gains |
||||||||||||||||
Tax expense on gain |
||||||||||||||||
Gross losses |
||||||||||||||||
Tax benefit on loss |
||||||||||||||||
Pass through MBS issued by GSEs: |
||||||||||||||||
Proceeds |
||||||||||||||||
Gross gains |
||||||||||||||||
Tax expense on gain |
||||||||||||||||
Gross losses |
||||||||||||||||
Tax benefit on loss |
( |
) |
( |
) |
||||||||||||
Agency CMOs: |
||||||||||||||||
Proceeds |
||||||||||||||||
Gross gains |
||||||||||||||||
Tax expense on gain |
||||||||||||||||
Gross losses |
||||||||||||||||
Tax benefit on loss |
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Proceeds: |
||||||||||||||||
Marketable equity securities |
$ |
$ |
$ |
$ |
June 30, 2020 |
||||||||||||||||||||||||
Less than 12 Consecutive Months |
12 Consecutive Months or Longer |
Total |
||||||||||||||||||||||
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
|||||||||||||||||||
Securities available-for-sale: |
||||||||||||||||||||||||
Corporate Notes |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Agency CMOs |
December 31, 2019 |
||||||||||||||||||||||||
Less than 12 Consecutive Months |
12 Consecutive Months or Longer |
Total |
||||||||||||||||||||||
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
|||||||||||||||||||
Securities available-for-sale: |
||||||||||||||||||||||||
Agency Notes |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Agency CMOs |
7. | LOANS |
Balance at |
||||||||
June 30, 2020 |
December 31, 2019 |
|||||||
One-to-four family residential, including condominium and cooperative apartment |
$ |
$ |
||||||
Multifamily residential and residential mixed-use |
||||||||
Commercial real estate and commercial mixed-use |
||||||||
Acquisition, development, and construction (“ADC”) |
||||||||
Total Real Estate |
||||||||
C&I |
||||||||
Other |
||||||||
Total |
||||||||
Allowance for loans losses |
( |
) |
( |
) |
||||
Loans, net |
$ |
$ |
At or for the Three Months Ended June 30, 2020 |
||||||||||||||||||||||||||||||||
Real Estate Loans |
||||||||||||||||||||||||||||||||
One-to-Four Family Residential, Including Condominium and Cooperative Apartment | Multifamily Residential and Residential Mixed-Use |
Commercial Real Estate and Commercial Mixed-Use |
ADC |
Total Real Estate |
C&I |
Other Loans |
Total |
|||||||||||||||||||||||||
Beginning balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Provision (credit) for loan losses |
( |
) |
||||||||||||||||||||||||||||||
Charge-offs |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||
Recoveries |
||||||||||||||||||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
At or for the Three Months Ended June 30, 2019 |
||||||||||||||||||||||||||||||||
Real Estate Loans |
||||||||||||||||||||||||||||||||
One- to Four Family Residential, Including Condominium and Cooperative Apartment | Multifamily Residential and Residential Mixed-Use |
Commercial Real Estate and Commercial Mixed-Use |
ADC |
Total Real Estate |
C&I |
Other Loans |
Total |
|||||||||||||||||||||||||
Beginning balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Provision (credit) for loan losses |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||
Charge-offs |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||
Recoveries |
||||||||||||||||||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
At or for the Six Months Ended June 30, 2020 |
||||||||||||||||||||||||||||||||
Real Estate Loans |
||||||||||||||||||||||||||||||||
One-to-Four Family Residential, Including Condominium and Cooperative Apartment | Multifamily Residential and Residential Mixed-Use |
Commercial Real Estate and Commercial Mixed-Use |
ADC |
Total Real Estate |
C&I |
Other Loans |
Total |
|||||||||||||||||||||||||
Beginning balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Provision for loan losses |
||||||||||||||||||||||||||||||||
Charge-offs |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||
Recoveries |
||||||||||||||||||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
At or for the Six Months Ended June 30, 2019 |
||||||||||||||||||||||||||||||||
Real Estate Loans |
||||||||||||||||||||||||||||||||
One- to Four Family Residential, Including Condominium and Cooperative Apartment | Multifamily Residential and Residential Mixed-Use |
Commercial Real Estate and Commercial Mixed-Use |
ADC |
Total Real Estate |
C&I |
Other Loans |
Total |
|||||||||||||||||||||||||
Beginning balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Provision (credit) for loan losses |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||
Charge-offs |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Recoveries |
||||||||||||||||||||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
At June 30, 2020 |
||||||||||||||||||||||||||||||||
Real Estate Loans |
||||||||||||||||||||||||||||||||
One-to-Four Family Residential, Including Condominium and Cooperative Apartment | Multifamily Residential and Residential Mixed-Use |
Commercial Real Estate and Commercial Mixed-Use |
ADC |
Total Real Estate |
C&I |
Other Loans |
Total |
|||||||||||||||||||||||||
Allowance for loan losses: |
||||||||||||||||||||||||||||||||
Individually evaluated for impairment |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Collectively evaluated for impairment |
||||||||||||||||||||||||||||||||
Total ending allowance balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Loans: |
||||||||||||||||||||||||||||||||
Individually evaluated for impairment |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Collectively evaluated for impairment |
||||||||||||||||||||||||||||||||
Total ending loans balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
At December 31, 2019 |
||||||||||||||||||||||||||||||||
Real Estate Loans |
||||||||||||||||||||||||||||||||
One-to-Four Family Residential, Including Condominium and Cooperative Apartment | Multifamily Residential and Residential Mixed-Use |
Commercial Real Estate and Commercial Mixed-Use |
ADC |
Total Real Estate |
C&I |
Other Loans |
Total |
|||||||||||||||||||||||||
Allowance for loan losses: |
||||||||||||||||||||||||||||||||
Individually evaluated for impairment |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Collectively evaluated for impairment |
||||||||||||||||||||||||||||||||
Total ending allowance balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Loans: |
||||||||||||||||||||||||||||||||
Individually evaluated for impairment |
||||||||||||||||||||||||||||||||
Collectively evaluated for impairment |
||||||||||||||||||||||||||||||||
Total ending loans balance |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
• | A reduction of interest rate has been made for the remaining term of the loan |
• | The maturity date of the loan has been extended with a stated interest rate lower than the current market rate for new debt with similar risk |
• | The outstanding principal amount and/or accrued interest have been reduced |
June 30, 2020 |
||||||||||||
Number of Loans |
Booked Amount |
Booked % of Portfolio |
||||||||||
(Dollars in thousands) |
||||||||||||
One-to-four family residential, including condominium and cooperative apartment |
$ |
% |
||||||||||
Multifamily residential and residential mixed-use real estate |
||||||||||||
Commercial real estate and commercial mixed-use |
||||||||||||
C&I |
||||||||||||
Total |
$ |
At June 30, 2020 |
At December 31, 2019 |
|||||||||||||||||||||||
Unpaid Principal Balance |
Recorded Investment (1) |
Related Allowance |
Unpaid Principal Balance |
Recorded Investment (1) |
Related Allowance |
|||||||||||||||||||
With no related allowance recorded: |
||||||||||||||||||||||||
Multifamily residential and residential mixed-use |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Commercial real estate and commercial mixed-use |
||||||||||||||||||||||||
Total with no related allowance recorded |
||||||||||||||||||||||||
With an allowance recorded: |
||||||||||||||||||||||||
C&I |
||||||||||||||||||||||||
Total with an allowance recorded |
||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ |
$ |
(1) |
Three Months Ended June 30, 2020 |
Three Months Ended June 30, 2019 |
|||||||||||||||
Average Recorded Investment (1) |
Interest Income Recognized (2) |
Average Recorded Investment (1) |
Interest Income Recognized (2) |
|||||||||||||
With no related allowance recorded: |
||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment |
$ |
$ |
$ |
$ |
||||||||||||
Multifamily residential and residential mixed-use |
||||||||||||||||
Commercial real estate and commercial mixed-use |
||||||||||||||||
Total with no related allowance recorded |
||||||||||||||||
With an allowance recorded: |
||||||||||||||||
C&I |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
(1) | The recorded investment excludes accrued interest receivable and net deferred costs due to immateriality. |
(2) |
Six Months Ended June 30, 2020 |
Six Months Ended June 30, 2019 |
|||||||||||||||
Average Recorded Investment (1) |
Interest Income Recognized (2) |
Average Recorded Investment (1) |
Interest Income Recognized (2) |
|||||||||||||
With no related allowance recorded: |
||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment |
$ |
$ |
$ |
$ |
||||||||||||
Multifamily residential and residential mixed-use |
||||||||||||||||
Commercial real estate and commercial mixed-use |
||||||||||||||||
Total with no related allowance recorded |
||||||||||||||||
With an allowance recorded: |
||||||||||||||||
C&I |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
(1) | The recorded investment excludes accrued interest receivable and net deferred costs due to immateriality. |
(2) | Cash basis interest and interest income recognized on accrual basis approximate each other. |
At June 30, 2020 |
||||||||||||||||||||||||||||
30 to 59 Days Past Due |
60 to 89 Days Past Due |
Loans 90 Days or More Past Due and Still Accruing Interest | Non- accrual (1) |
Total Past Due |
Current |
Total Loans |
||||||||||||||||||||||
Real Estate: |
||||||||||||||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Multifamily residential and residential mixed-use |
||||||||||||||||||||||||||||
Commercial real estate and commercial mixed-use |
||||||||||||||||||||||||||||
ADC |
||||||||||||||||||||||||||||
Total real estate |
||||||||||||||||||||||||||||
C&I |
||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
(1) |
At December 31, 2019 |
||||||||||||||||||||||||||||
30 to 59 Days Past Due |
60 to 89 Days Past Due |
Loans 90 Days or More Past Due and Still Accruing Interest | Non- accrual (1) |
Total Past Due |
Current |
Total Loans |
||||||||||||||||||||||
Real Estate: |
||||||||||||||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Multifamily residential and residential mixed-use |
||||||||||||||||||||||||||||
Commercial real estate and commercial mixed-use |
||||||||||||||||||||||||||||
ADC |
||||||||||||||||||||||||||||
Total real estate |
||||||||||||||||||||||||||||
C&I |
||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
(1) |
Balance at June 30, 2020 |
||||||||||||||||||||
Pass |
Special Mention |
Substandard |
Doubtful |
Total |
||||||||||||||||
Real Estate: |
||||||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Multifamily residential and residential mixed-use |
||||||||||||||||||||
Commercial real estate and commercial mixed-use |
||||||||||||||||||||
ADC |
||||||||||||||||||||
Total real estate |
||||||||||||||||||||
C&I |
||||||||||||||||||||
Total Real Estate and C&I |
$ |
$ |
$ |
$ |
$ |
Balance at December 31, 2019 |
||||||||||||||||||||
Pass |
Special Mention |
Substandard |
Doubtful |
Total |
||||||||||||||||
Real Estate: |
||||||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Multifamily residential and residential mixed-use |
||||||||||||||||||||
Commercial real estate and commercial mixed-use |
||||||||||||||||||||
ADC |
||||||||||||||||||||
Total real estate |
||||||||||||||||||||
C&I |
||||||||||||||||||||
Total Real Estate and C&I |
$ |
$ |
$ |
$ |
$ |
Balance at |
||||||||
June 30, 2020 |
December 31, 2019 |
|||||||
Performing |
$ |
$ |
||||||
Non-accrual |
||||||||
Total |
$ |
$ |
8. | LEASES |
Rent to be Capitalized |
||||
2020 |
$ |
|||
2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
Thereafter |
||||
Total undiscounted lease payments |
||||
Less amounts representing interest |
||||
Lease liability |
$ |
For Three Months Ended June 30, |
For Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Operating lease cost |
$ |
$ |
$ |
$ |
At June 30, |
||||||||
2020 |
2019 |
|||||||
Weighted average remaining lease term |
||||||||
Cash paid for amounts included in the measurement of operating lease liabilities |
$ |
$ |
||||||
Weighted average discount rate |
% |
% |
9. | DERIVATIVES AND HEDGING ACTIVITIES |
At June 30, 2020 |
At December 31, 2019 |
|||||||||||||||||||||||||||||||
Count |
Notional Amount |
Fair Value Assets |
Fair Value Liabilities |
Count |
Notional Amount |
Fair Value Assets |
Fair Value Liabilities |
|||||||||||||||||||||||||
Included in other assets/(liabilities): |
||||||||||||||||||||||||||||||||
Interest rate swaps related to FHLBNY advances |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
$ |
$ |
— |
|||||||||||||||||||||
Interest rate swaps related to FHLBNY advances |
$ |
$ |
— |
$ |
$ |
$ |
— |
$ |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Amount of loss recognized in other comprehensive income |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
||||
Amount of gain (loss) reclassified from other comprehensive income into interest expense |
( |
) |
( |
) |
At June 30, 2020 |
||||||||||||||||
Count |
Notional Amount |
Fair Value Assets |
Fair Value Liabilities |
|||||||||||||
Included in other assets/(liabilities): |
||||||||||||||||
Loan level interest rate swaps with borrower |
$ |
$ |
$ |
|||||||||||||
Loan level interest rate floors with borrower |
||||||||||||||||
Loan level interest rate swaps with third-party counterparties |
||||||||||||||||
Loan level interest rate floors with third-party counterparties |
At December 31, 2019 |
||||||||||||||||
Count |
Notional Amount |
Fair Value Assets |
Fair Value Liabilities |
|||||||||||||
Included in other assets/(liabilities): |
||||||||||||||||
Loan level interest rate swaps with borrower |
$ |
$ |
$ |
$ |
— |
|||||||||||
Loan level interest rate swaps with borrower |
— |
|||||||||||||||
Loan level interest rate swaps with third-party counterparties |
— |
|||||||||||||||
Loan level interest rate swaps with third-party counterparties |
— |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Loan level derivative income |
$ |
$ |
$ |
$ |
10. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
Fair Value Measurements at June 30, 2020 Using |
||||||||||||||||
Total |
Level 1 Inputs |
Level 2 Inputs |
Level 3 Inputs |
|||||||||||||
Financial Assets |
||||||||||||||||
Marketable equity securities (Registered Mutual Funds): |
||||||||||||||||
Domestic equity mutual funds |
$ |
$ |
$ |
$ |
||||||||||||
International equity mutual funds |
||||||||||||||||
Fixed income mutual funds |
||||||||||||||||
Securities available-for-sale: |
||||||||||||||||
Agency Notes |
||||||||||||||||
Corporate Securities |
||||||||||||||||
Pass-through MBS issued by GSEs |
||||||||||||||||
Agency CMOs |
||||||||||||||||
Derivative – freestanding derivatives, net |
||||||||||||||||
Financial Liabilities |
||||||||||||||||
Derivative – cash flow hedges |
||||||||||||||||
Derivative – freestanding derivatives, net |
Fair Value Measurements at December 31, 2019 Using |
||||||||||||||||
Total |
Level 1 Inputs |
Level 2 Inputs |
Level 3 Inputs |
|||||||||||||
Financial Assets |
||||||||||||||||
Marketable equity securities (Registered Mutual Funds) |
||||||||||||||||
Domestic equity mutual funds |
$ |
$ |
$ |
$ |
||||||||||||
International equity mutual funds |
||||||||||||||||
Fixed income mutual funds |
||||||||||||||||
Securities available-for-sale: |
||||||||||||||||
Agency Notes |
||||||||||||||||
Corporate Securities |
||||||||||||||||
Pass-through MBS issued by GSEs |
||||||||||||||||
Agency CMOs |
||||||||||||||||
Derivative – cash flow hedges |
||||||||||||||||
Derivative – freestanding derivatives |
||||||||||||||||
Financial Liabilities |
||||||||||||||||
Derivative – cash flow hedges |
||||||||||||||||
Derivative – freestanding derivatives |
Fair Value Measurements at June 30, 2020 Using |
||||||||||||||||||||
Carrying Amount |
Level 1 Inputs |
Level 2 Inputs |
Level 3 Inputs |
Total |
||||||||||||||||
Financial Assets |
||||||||||||||||||||
Cash and due from banks |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Loans, net |
||||||||||||||||||||
Accrued interest receivable |
||||||||||||||||||||
Financial Liabilities |
||||||||||||||||||||
Savings, money market and checking accounts |
||||||||||||||||||||
Certificates of Deposits (“CDs”) |
||||||||||||||||||||
Escrow and other deposits |
||||||||||||||||||||
FHLBNY Advances |
||||||||||||||||||||
Subordinated debt, net |
||||||||||||||||||||
Accrued interest payable |
Fair Value Measurements at December 31, 2019 Using |
||||||||||||||||||||
Carrying Amount |
Level 1 Inputs |
Level 2 Inputs |
Level 3 Inputs |
Total |
||||||||||||||||
Financial Assets |
||||||||||||||||||||
Cash and due from banks |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Loans, net |
||||||||||||||||||||
Accrued interest receivable |
||||||||||||||||||||
Financial Liabilities |
||||||||||||||||||||
Savings, money market and checking accounts |
||||||||||||||||||||
CDs |
||||||||||||||||||||
Escrow and other deposits |
||||||||||||||||||||
FHLBNY Advances |
||||||||||||||||||||
Subordinated debt, net |
||||||||||||||||||||
Other borrowings |
||||||||||||||||||||
Accrued interest payable |
11. | RETIREMENT AND POSTRETIREMENT PLANS |
Three Months Ended June 30, |
||||||||||||||||
2020 |
2019 |
|||||||||||||||
BMP, Employee and Outside Director Retirement Plans |
Postretirement Plan |
BMP, Employee and Outside Director Retirement Plans |
Postretirement Plan |
|||||||||||||
Service cost |
$ |
$ |
$ |
$ |
||||||||||||
Interest cost |
||||||||||||||||
Expected return on assets |
( |
) |
( |
) |
||||||||||||
Unrecognized past service liability |
( |
) |
( |
) |
||||||||||||
Amortization of unrealized loss (gain) |
( |
) |
||||||||||||||
Net periodic cost |
$ |
$ |
$ |
$ |
Six Months Ended June 30, |
||||||||||||||||
2020 |
2019 |
|||||||||||||||
BMP, Employee and Outside Director Retirement Plans |
Postretirement Plan |
BMP, Employee and Outside Director Retirement Plans |
Postretirement Plan |
|||||||||||||
Service cost |
$ |
$ |
$ |
$ |
||||||||||||
Interest cost |
||||||||||||||||
Expected return on assets |
( |
) |
( |
) |
||||||||||||
Unrecognized past service liability |
( |
) |
( |
) |
||||||||||||
Amortization of unrealized loss (gain) |
( |
) |
||||||||||||||
Net periodic cost |
$ |
$ |
$ |
$ |
Planned Contributions/Benefit |
Actual Contributions/Benefit Payments for the |
|||||||||||
Payments for the Year Ended December 31, 2020 |
Three Months Ended June 30, 2020 |
Six Months Ended June 30, 2020 |
||||||||||
Employee Retirement Plan |
$ |
$ |
$ |
|||||||||
Outside Director Retirement Plan |
||||||||||||
Post Retirement Plan |
||||||||||||
BMP |
12. | STOCK-BASED COMPENSATION |
Number of Options |
Weighted-Average Exercise Price |
Weighted-Average Remaining Contractual Years |
Aggregate Intrinsic Value |
|||||||||||||
Options outstanding at January 1, 2020 |
$ |
|||||||||||||||
Options granted |
||||||||||||||||
Options expired |
( |
) |
||||||||||||||
Options exercised |
( |
) |
||||||||||||||
Options outstanding at June 30, 2020 |
$ |
$ |
||||||||||||||
Options vested and exercisable at June 30, 2020 |
$ |
$ |
For Three Months Ended June 30, |
For Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Cash received for option exercise cost |
$ |
$ |
$ |
$ |
||||||||||||
Income tax benefit recognized on stock option exercises |
||||||||||||||||
Intrinsic value of options exercised |
Number of Shares |
Weighted-Average Grant-Date Fair Value |
|||||||
Unvested allocated shares outstanding at January 1, 2020 |
$ |
|||||||
Shares granted |
||||||||
Shares vested |
( |
) |
||||||
Shares forfeited |
( |
) |
||||||
Unvested allocated shares at June 30, 2020 |
$ |
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Compensation expense recognized |
$ |
$ |
$ |
$ |
||||||||||||
Income tax benefit (expense) recognized on vesting of RSA |
( |
) |
( |
) |
Number of Shares |
Weighted-Average Grant-Date Fair Value |
|||||||
Maximum aggregate share payout at January 1, 2020 |
$ |
|||||||
Shares granted |
||||||||
Shares vested |
||||||||
Shares forfeited |
( |
) |
||||||
Maximum aggregate share payout at June 30, 2020 |
$ |
|||||||
Minimum aggregate share payout |
||||||||
Expected aggregate share payout |
$ |
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Compensation expense recognized |
$ |
( |
) |
$ |
$ |
$ |
||||||||||
Income tax benefit recognized on vesting of LTIP |
Number of Shares |
Weighted-Average Grant-Date Fair Value |
|||||||
Maximum aggregate share payout at January 1, 2020 |
$ |
|||||||
Shares granted |
||||||||
Shares vested |
( |
) |
||||||
Shares forfeited |
( |
) |
||||||
Maximum aggregate share payout at June 30, 2020 |
$ |
|||||||
Minimum aggregate share payout |
||||||||
Expected aggregate share payout |
$ |
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Compensation expense recognized |
$ |
$ |
( |
) |
$ |
$ |
||||||||||
Income tax (espense) recognized on vesting of awards |
( |
) |
( |
) |
13. | INCOME TAXES |
14. | SUBSEQUENT EVENTS |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Direct Subsidiaries of the Bank |
Year/ State of Incorporation |
Primary Business Activities |
Boulevard Funding Corp. |
1981 / New York |
Management and ownership of real estate. |
DSBW Preferred Funding Corp. |
1998 / Delaware |
Real Estate Investment Trust investing in multifamily residential and commercial real estate loans. |
DSBW Residential Preferred Funding Corp. |
1998 / Delaware |
Real Estate Investment Trust investing in one-to-four family residential loans. |
Dime Insurance Agency Inc. (f/k/a Havemeyer Investments, Inc.) |
1997 / New York |
Sale of non-FDIC insured investment products. |
Dime Reinvestment Corporation |
2004 / Delaware |
Community Development Entity. Currently inactive. |
195 Havemeyer Corp. |
2008 / New York |
Management and ownership of real estate. Currently inactive. |
DSB Holdings NY, LLC |
2015 / New York |
Management and ownership of real estate. Currently inactive. |
• | On March 3, 2020, the Federal Reserve reduced the target federal funds rate by 50 basis points, followed by an additional reduction of 100 basis points on March 16, 2020. These reductions in interest rates may adversely affect the Company’s financial condition and results of operations. |
• | The Company’s interest income could be reduced due to COVID-19. In adherence with guidance from regulators, the Company is actively working with COVID-19 affected borrowers to defer their interest and /or principal payments. While interest is expected to still accrue to income during the deferral period, should deterioration in the financial condition of the borrowers that would not support ultimate repayment of interest emerge, interest income accrued would need to be reversed. In such a scenario, interest income in future periods could be negatively impacted. |
• | The Company’s fee income could be reduced due to COVID-19. In keeping with guidance from regulators, the Company is actively working with COVID-19 affected customers to waive fees from a variety of sources, such as, but not limited to, insufficient funds and overdraft fees, ATM fees, account maintenance fees, etc. These reductions in fees are thought, at this time, to be temporary in conjunction with the length of the expected COVID-19 related economic crisis. |
• | The Company’s operating expenses could increase due to additional expenditures for salaries in effort to compensate employees who are working in the front lines of retail operations, supporting a remote work environment, information technology and cybersecurity costs, and facility maintenance and cleaning costs. |
At or For the Three Months Ended June 30, |
At or For the Six Months Ended June 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Per Share Data: |
||||||||||||||||
EPS (Diluted) |
$ |
0.35 |
$ |
0.36 |
$ |
0.59 |
$ |
0.68 |
||||||||
Cash dividends paid per share |
0.14 |
0.14 |
0.28 |
0.28 |
||||||||||||
Book value per share |
17.07 |
16.96 |
17.07 |
16.96 |
||||||||||||
Dividend Payout Ratio |
40.00 |
% |
38.89 |
% |
47.46 |
% |
41.18 |
% |
||||||||
Performance and Other Selected Ratios: |
||||||||||||||||
Return on average assets |
0.81 |
% |
0.82 |
% |
0.68 |
% |
0.77 |
% |
||||||||
Return on average common equity |
7.96 |
8.59 |
6.68 |
8.10 |
||||||||||||
Net interest spread |
2.61 |
2.08 |
2.53 |
2.05 |
||||||||||||
Net interest margin |
2.86 |
2.38 |
2.79 |
2.35 |
||||||||||||
Average interest-earning assets to average interest-bearing liabilities |
124.97 |
119.47 |
122.94 |
118.80 |
||||||||||||
Non-interest expense to average assets |
1.84 |
1.40 |
1.76 |
1.39 |
||||||||||||
Efficiency Ratio |
60.67 |
56.83 |
59.18 |
57.80 |
||||||||||||
Loan-to-Deposit ratio at end of period |
122.67 |
124.71 |
122.67 |
124.71 |
||||||||||||
Effective tax rate |
21.59 |
25.42 |
21.60 |
25.17 |
||||||||||||
Asset Quality Summary: |
||||||||||||||||
Non-performing loans (1) |
$ |
15,383 |
$ |
2,538 |
$ |
15,383 |
$ |
2,538 |
||||||||
Non-performing assets |
15,383 |
2,538 |
15,383 |
2,538 |
||||||||||||
Net charge-offs |
31 |
358 |
21 |
520 |
||||||||||||
Non-performing assets/Total assets |
0.24 |
% |
0.04 |
% |
0.24 |
% |
0.04 |
% |
||||||||
Non-performing loans/Total loans |
0.28 |
0.05 |
0.28 |
0.05 |
||||||||||||
Allowance for loan loss/Total loans |
0.78 |
0.38 |
0.78 |
0.38 |
||||||||||||
Allowance for loan loss/Non-performing loans |
276.23 |
832.70 |
276.23 |
832.70 |
(1) | Non-performing loans are defined as all loans on non-accrual status. |
Actual Ratios at June 30, 2020 |
||||||||||||||||
Bank |
Consolidated Company |
Basel III Minimum Requirement |
To Be Categorized as “Well Capitalized” (1) |
|||||||||||||
Tier 1 common equity ratio |
13.10 |
% |
10.79 |
% |
4.5 |
% |
6.5 |
% |
||||||||
Tier 1 risk-based based capital ratio |
13.10 |
13.20 |
6.0 |
8.0 |
||||||||||||
Total risk-based based capital ratio |
13.99 |
16.45 |
8.0 |
10.0 |
||||||||||||
Tier 1 leverage ratio |
9.98 |
10.11 |
4.0 |
5.0 |
(1) | Only the Bank is subject to these requirements. |
Less than One Year |
One Year to Three Years |
Over Three Years to Five Years |
Over Five Years |
Total |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Credit Commitments: |
||||||||||||||||||||
Available lines of credit |
$ |
160,901 |
$ |
65,938 |
$ |
— |
$ |
— |
$ |
226,839 |
||||||||||
Other loan commitments |
131,706 |
— |
— |
— |
131,706 |
|||||||||||||||
Stand-by letters of credit |
1,753 |
— |
— |
— |
1,753 |
|||||||||||||||
Total Off-Balance Sheet Arrangements |
$ |
294,360 |
$ |
65,938 |
$ |
— |
$ |
— |
$ |
360,298 |
June 30, 2020 |
||||||||
Number of Loans |
Balance |
|||||||
(Dollars in thousands) |
||||||||
One-to-four family residential, including condominium and cooperative apartment |
19 |
$ |
23,824 |
|||||
Multifamily residential and residential mixed-use real estate |
126 |
544,197 |
||||||
Commercial real estate and commercial mixed-use |
103 |
335,597 |
||||||
C&I |
6 |
12,644 |
||||||
Total |
254 |
$ |
916,262 |
June 30, 2020 |
December 31, 2019 |
June 30, 2019 |
||||||||||
(Dollars in thousands) |
||||||||||||
Non-accrual loans (1): |
||||||||||||
One-to-four family residential, including condominium and cooperative apartment |
$ |
819 |
$ |
794 |
$ |
832 |
||||||
Multifamily residential and residential mixed-use real estate |
1,377 |
153 |
428 |
|||||||||
Commercial real estate and commercial mixed-use |
3,003 |
60 |
1,274 |
|||||||||
C&I |
10,176 |
10,082 |
— |
|||||||||
Other |
2 |
2 |
4 |
|||||||||
Total non-accrual loans |
15,377 |
11,091 |
2,538 |
|||||||||
Non-accrual one-to-four family residential and other loans deemed homogeneous loans |
(821 |
) |
(796 |
) |
(836 |
) |
||||||
TDRs: |
||||||||||||
One-to-four family residential, including condominium and cooperative apartment |
— |
— |
11 |
|||||||||
Multifamily residential and residential mixed-use real estate |
— |
— |
252 |
|||||||||
Commercial real estate and commercial mixed-use |
— |
— |
4,037 |
|||||||||
Total TDRs |
— |
— |
4,300 |
|||||||||
Impaired loans |
$ |
14,556 |
$ |
10,295 |
$ |
6,002 |
||||||
Ratios: |
||||||||||||
Total non-accrual loans to total loans |
0.28 |
% |
0.21 |
% |
0.05 |
% |
||||||
Total non-performing assets to total assets(2) |
0.24 |
0.17 |
0.04 |
(1) | There were no non-accruing TDRs for the periods indicated. |
(2) | Non-performing assets includes non-accrual loans. |
● | A reduction of interest rate has been made for the remaining term of the loan |
● | The maturity date of the loan has been extended with a stated interest rate lower than the current market rate for new debt with similar risk |
● | The outstanding principal amount and/or accrued interest have been reduced |
June 30, 2020 |
December 31, 2019 |
June 30, 2019 |
||||||||||
(Dollars in Thousands) |
||||||||||||
Impaired loans |
$ |
10,129 |
$ |
10,082 |
$ |
— |
||||||
Non-impaired loans: |
||||||||||||
Real estate loans |
28,973 |
15,555 |
16,850 |
|||||||||
C&I loans |
3,373 |
2,788 |
4,267 |
|||||||||
Consumer loans |
17 |
16 |
17 |
|||||||||
Total |
$ |
42,492 |
$ |
28,441 |
$ |
21,134 |
Three Months Ended June 30, |
||||||||||||||||||||||||
2020 |
2019 |
|||||||||||||||||||||||
Average Balance |
Interest |
Average Yield/Cost |
Average Balance |
Interest |
Average Yield/Cost |
|||||||||||||||||||
Assets: |
(Dollars in Thousands) |
|||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||
Real estate loans |
$ |
4,867,970 |
$ |
49,058 |
4.03 |
% |
$ |
5,201,395 |
$ |
50,811 |
3.91 |
% |
||||||||||||
C&I loans |
518,999 |
5,071 |
3.91 |
289,843 |
4,134 |
5.71 |
||||||||||||||||||
Other loans |
870 |
13 |
5.98 |
1,217 |
18 |
5.92 |
||||||||||||||||||
MBS and CMO securities |
468,705 |
3,064 |
2.61 |
423,387 |
2,961 |
2.80 |
||||||||||||||||||
Investment securities |
65,155 |
582 |
3.57 |
64,488 |
570 |
3.54 |
||||||||||||||||||
Other short-term investments |
169,846 |
846 |
1.99 |
154,180 |
1,457 |
3.78 |
||||||||||||||||||
Total interest-earning assets |
6,091,545 |
58,634 |
3.85 |
% |
6,134,510 |
59,951 |
3.91 |
% |
||||||||||||||||
Non-interest earning assets |
298,223 |
256,966 |
||||||||||||||||||||||
Total assets |
$ |
6,389,768 |
$ |
6,391,476 |
||||||||||||||||||||
Liabilities and Stockholders’ Equity: |
||||||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||
Interest-bearing checking accounts |
$ |
222,694 |
$ |
212 |
0.38 |
% |
$ |
125,041 |
$ |
91 |
0.29 |
% |
||||||||||||
Money Market accounts |
1,656,394 |
2,495 |
0.61 |
1,908,737 |
7,397 |
1.55 |
||||||||||||||||||
Savings accounts |
404,389 |
305 |
0.30 |
327,312 |
46 |
0.06 |
||||||||||||||||||
CDs |
1,511,598 |
6,688 |
1.78 |
1,595,849 |
8,737 |
2.20 |
||||||||||||||||||
Total interest-bearing deposits |
3,795,075 |
9,700 |
1.03 |
3,956,939 |
16,271 |
1.65 |
||||||||||||||||||
FHLBNY Advances |
962,657 |
4,047 |
1.69 |
1,050,824 |
5,756 |
2.20 |
||||||||||||||||||
Subordinated notes |
113,955 |
1,330 |
4.69 |
113,808 |
1,330 |
4.69 |
||||||||||||||||||
Other borrowings |
2,747 |
1 |
0.15 |
13,308 |
65 |
2.71 |
||||||||||||||||||
Borrowed funds |
1,079,359 |
5,378 |
2.00 |
1,177,940 |
7,176 |
2.44 |
||||||||||||||||||
Total interest-bearing liabilities |
4,874,434 |
15,078 |
1.24 |
% |
5,134,879 |
23,447 |
1.83 |
% |
||||||||||||||||
Non-interest-bearing checking accounts |
618,107 |
422,060 |
||||||||||||||||||||||
Other non-interest-bearing liabilities |
245,908 |
227,385 |
||||||||||||||||||||||
Total liabilities |
5,738,449 |
5,784,324 |
||||||||||||||||||||||
Stockholders’ equity |
651,319 |
607,152 |
||||||||||||||||||||||
Total liabilities and stockholders’ equity |
$ |
6,389,768 |
$ |
6,391,476 |
||||||||||||||||||||
Net interest income |
$ |
43,556 |
$ |
36,504 |
||||||||||||||||||||
Net interest spread |
2.61 |
% |
2.08 |
% |
||||||||||||||||||||
Net interest-earning assets |
$ |
1,217,111 |
$ |
999,631 |
||||||||||||||||||||
Net interest margin |
2.86 |
% |
2.38 |
% |
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities |
124.97 |
% |
119.47 |
% |
||||||||||||||||||||
Deposits |
$ |
4,413,182 |
$ |
9,700 |
0.88 |
% |
$ |
4,378,999 |
$ |
16,271 |
1.49 |
% |
Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019 Increase/ (Decrease) Due to: |
||||||||||||
Volume |
Rate |
Total |
||||||||||
(Dollars In thousands) |
||||||||||||
Interest-earning assets: |
||||||||||||
Real estate loans |
$ |
(3,285 |
) |
$ |
1,532 |
$ |
(1,753 |
) |
||||
C&I loans |
2,755 |
(1,818 |
) |
937 |
||||||||
Other loans |
(5 |
) |
— |
(5 |
) |
|||||||
MBS and CMO securities |
311 |
(208 |
) |
103 |
||||||||
Investment securities |
7 |
5 |
12 |
|||||||||
Other |
114 |
(725 |
) |
(611 |
) |
|||||||
Total |
$ |
(103 |
) |
$ |
(1,214 |
) |
$ |
(1,317 |
) |
|||
Interest-bearing liabilities: |
||||||||||||
Interest-bearing checking accounts |
$ |
82 |
$ |
39 |
$ |
121 |
||||||
Money market accounts |
(708 |
) |
(4,194 |
) |
(4,902 |
) |
||||||
Savings accounts |
38 |
221 |
259 |
|||||||||
CDs |
(421 |
) |
(1,628 |
) |
(2,049 |
) |
||||||
FHLBNY Advances |
(430 |
) |
(1,279 |
) |
(1,709 |
) |
||||||
Subordinated notes |
1 |
(1 |
) |
— |
||||||||
Other borrowings |
(38 |
) |
(51 |
) |
(89 |
) |
||||||
Total |
$ |
(1,476 |
) |
$ |
(6,893 |
) |
$ |
(8,369 |
) |
|||
Net change in net interest income |
$ |
1,373 |
$ |
5,679 |
$ |
7,052 |
Six Months Ended June 30, |
||||||||||||||||||||||||
2020 |
2019 |
|||||||||||||||||||||||
Average Balance |
Interest |
Average Yield/Cost |
Average Balance |
Interest |
Average Yield/Cost |
|||||||||||||||||||
Assets: |
(Dollars in Thousands) |
|||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||
Real estate loans |
$ |
4,911,181 |
$ |
99,175 |
4.04 |
% |
$ |
5,198,673 |
$ |
99,988 |
3.85 |
% |
||||||||||||
C&I loans |
423,326 |
9,116 |
4.31 |
269,055 |
7,570 |
5.63 |
||||||||||||||||||
Other loans |
1,157 |
28 |
4.84 |
1,150 |
36 |
6.26 |
||||||||||||||||||
MBS and CMO |
477,714 |
6,369 |
2.67 |
443,845 |
6,158 |
2.77 |
||||||||||||||||||
Investment securities |
56,108 |
1,003 |
3.58 |
55,833 |
990 |
3.55 |
||||||||||||||||||
Other |
150,970 |
1,848 |
2.45 |
154,346 |
2,904 |
3.76 |
||||||||||||||||||
Total interest-earning assets |
6,020,454 |
117,539 |
3.90 |
% |
6,122,902 |
$ |
117,646 |
3.84 |
% |
|||||||||||||||
Non-interest earning assets |
278,405 |
254,885 |
||||||||||||||||||||||
Total assets |
$ |
6,298,859 |
$ |
6,377,787 |
||||||||||||||||||||
Liabilities and Stockholders’ Equity: |
||||||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||
Interest-bearing checking accounts |
$ |
190,861 |
$ |
299 |
0.31 |
% |
$ |
120,141 |
$ |
114 |
0.19 |
% |
||||||||||||
Money Market accounts |
1,618,587 |
6,081 |
0.75 |
1,969,266 |
15,037 |
1.54 |
||||||||||||||||||
Savings accounts |
394,079 |
672 |
0.34 |
329,487 |
90 |
0.06 |
||||||||||||||||||
CDs |
1,549,074 |
14,574 |
1.89 |
1,531,144 |
16,047 |
2.11 |
||||||||||||||||||
Total interest-bearing deposits |
3,752,600 |
21,626 |
1.16 |
3,950,038 |
31,288 |
1.60 |
||||||||||||||||||
FHLBNY advances |
1,024,105 |
9,131 |
1.79 |
1,078,177 |
11,713 |
2.19 |
||||||||||||||||||
Subordinated notes |
113,937 |
2,661 |
4.68 |
113,790 |
2,661 |
4.72 |
||||||||||||||||||
Other borrowings |
6,319 |
41 |
1.30 |
11,807 |
156 |
2.66 |
||||||||||||||||||
Borrowed funds |
1,144,360 |
11,833 |
2.07 |
1,203,774 |
14,530 |
2.43 |
||||||||||||||||||
Total interest-bearing liabilities |
4,896,960 |
33,459 |
1.37 |
% |
5,153,812 |
$ |
45,818 |
1.79 |
% |
|||||||||||||||
Non-interest-bearing checking accounts |
542,788 |
409,984 |
||||||||||||||||||||||
Other non-interest-bearing liabilities |
219,780 |
208,378 |
||||||||||||||||||||||
Total liabilities |
5,659,527 |
5,772,174 |
||||||||||||||||||||||
Stockholders’ equity |
639,332 |
605,613 |
||||||||||||||||||||||
Total liabilities and stockholders’ equity |
$ |
6,298,859 |
$ |
6,377,787 |
||||||||||||||||||||
Net interest income |
$ |
84,080 |
$ |
71,828 |
||||||||||||||||||||
Net interest spread |
2.53 |
% |
2.05 |
% |
||||||||||||||||||||
Net interest-earning assets |
$ |
1,123,495 |
$ |
969,090 |
||||||||||||||||||||
Net interest margin |
2.79 |
% |
2.35 |
% |
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities |
122.94 |
% |
118.80 |
% |
||||||||||||||||||||
Deposits |
$ |
4,295,387 |
$ |
21,626 |
1.01 |
% |
$ |
4,360,022 |
$ |
31,288 |
1.45 |
% |
Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019 Increase/ (Decrease) Due to: |
||||||||||||
Volume |
Rate |
Total |
||||||||||
(Dollars In thousands) |
||||||||||||
Interest-earning assets: |
||||||||||||
Real estate loans |
$ |
(5,641 |
) |
$ |
4,828 |
$ |
(813 |
) |
||||
C&I loans |
3,831 |
(2,285 |
) |
1,546 |
||||||||
Other loans |
— |
(8 |
) |
(8 |
) |
|||||||
MBS and CMO |
452 |
(241 |
) |
211 |
||||||||
Investment securities |
5 |
8 |
13 |
|||||||||
Other |
(55 |
) |
(1,001 |
) |
(1,056 |
) |
||||||
Total |
$ |
(1,408 |
) |
$ |
1,301 |
$ |
(107 |
) |
||||
Interest-bearing liabilities: |
||||||||||||
Interest-bearing checking accounts |
$ |
90 |
$ |
95 |
$ |
185 |
||||||
Money market accounts |
(1,946 |
) |
(7,010 |
) |
(8,956 |
) |
||||||
Savings accounts |
70 |
512 |
582 |
|||||||||
CDs |
198 |
(1,671 |
) |
(1,473 |
) |
|||||||
FHLBNY advances |
(512 |
) |
(2,070 |
) |
(2,582 |
) |
||||||
Subordinated notes |
13 |
(13 |
) |
— |
||||||||
Other borrowings |
(54 |
) |
(61 |
) |
(115 |
) |
||||||
Total |
$ |
(2,141 |
) |
$ |
10,218 |
$ |
12,359 |
|||||
Net change in net interest income |
$ |
733 |
$ |
11,519 |
$ |
12,252 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
At June 30, 2020 |
At December 31, 2019 |
|||||||||||||||||||||||
EVE |
Dollar Change |
Percentage Change |
EVE |
Dollar Change |
Percentage Change |
|||||||||||||||||||
Rate Shock Scenario |
(Dollars in Thousands) |
|||||||||||||||||||||||
+ 200 Basis Points |
$ |
583,628 |
$ |
773 |
0.13 |
% |
$ |
595,201 |
$ |
(41,682 |
) |
(6.5 |
)% |
|||||||||||
Pre-Shock Scenario |
582,855 |
— |
— |
636,883 |
— |
— |
Gradual Change in Interest rates of: |
Percentage Change in Net Interest Income |
|||
+ 200 Basis Points |
(2.56 |
)% |
||
+ 100 Basis Points |
(1.35 |
)% |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
• | the Company will be required to pay certain costs relating to the merger whether or not the merger is completed, such as legal, accounting, financial advisor, proxy solicitation and printing fees; |
• | under the merger agreement, the Company is subject to certain restrictions on the conduct of its business before completing the merger, which may adversely affect its ability to execute certain of its business strategies if the merger is terminated; and |
• | matters relating to the merger may require substantial commitments of time and resources by the Company’s management, which could otherwise have been devoted to other opportunities that may have been beneficial to the Company. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
(a) | Not applicable. |
(b) | Not applicable. |
Period |
Total Number of Shares Purchased |
Average Price Paid Per Share |
Total Number of Shares Purchased as Part of Publicly Announced Programs |
Maximum Number of Shares that May Yet be Purchased Under the Programs (1) (2) |
||||||||||||
April 2020 |
766,821 |
$ |
$15.04 |
766,821 |
827,648 |
|||||||||||
May 2020 |
— |
— |
— |
827,648 |
||||||||||||
June 2020 |
208,243 |
$ |
13.07 |
208,243 |
619,405 |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit Number |
|
Amended and Restated Certificate of Incorporation of Dime Community Bancshares, Inc. (incorporated by reference to Exhibit 3.1 to the Registrant’s Transition Report on Form 10-K for the transition period ended December 31, 2002, filed with the SEC on March 28, 2003 (File No. 000-27782)) |
|
Amended and Restated Bylaws of Dime Community Bancshares, Inc. (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K, filed with the SEC on September 28, 2018 (File No. 000-27782)) |
|
Certificate of Designations, Preferences and Rights of 5.50% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A (incorporated by reference to Exhibit 3.2 to the Registrant’s Form 8-A Registration of Certain Classes of Securities pursuant to Section 12(b) or (g) of the Securities Exchange Act of 1934, filed with the Commission on February 5, 2020 (File No. 333-220175) |
|
Form of Stock Certificate of Dime Community Bancshares, Inc. (incorporated by reference to Exhibit 4.3 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 1998, filed with the SEC on September 28, 1998 (File No. 000-27782)) |
|
Indenture, dated as of September 13, 2017, by and between Dime Community Bancshares, Inc. and Wilmington Trust, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K, filed with the SEC on September 13, 2017 (File No. 000-27782)) |
|
First Supplemental Indenture, dated as of September 13, 2017, by and between Dime Community Bancshares, Inc. and Wilmington Trust, National Association, as Trustee, including the form of 4.50% fixed-to-floating rate subordinated debentures due 2027 (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K, filed with the SEC on September 13, 2017 (File No. 000-27782)) |
|
Specimen Certificate for 5.50% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A (incorporated by reference to Exhibit 3.4 to the Registrant’s Form 8-A Registration of Certain Classes of Securities pursuant to Section 12(b) or (g) of the Securities Exchange Act of 1934, filed with the Commission on February 5, 2020 (File No. 333-220175)) |
|
Dime Community Bancshares, Inc. 2020 Equity Incentive Plan (incorporated by reference to Appendix 2 to the Registrant’s Definitive Proxy Statement filed with the Commission on April 15, 2020 (File No. 001-39211)) |
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a) |
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a) |
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350 |
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. 1350 |
|
101 |
Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2020 is formatted in XBRL (Extensible Business Reporting Language) interactive data files: (i) the Consolidated Statements of Financial Condition (Unaudited), (ii) the Consolidated Statements of Income f(Unaudited), (iii) the Consolidated Statements of Comprehensive Income (Unaudited), (iv) the Consolidated Statements of Changes in Stockholders’ Equity (Unaudited), (v) the Consolidated Statements of Cash Flows (Unaudited), and (vi) the Notes to Unaudited Condensed Consolidated Financial Statements ** |
Dated: August 7, 2020 |
By: |
/s/ KENNETH J. MAHON |
|
Kenneth J. Mahon |
|||
Chief Executive Officer |
Dated: August 7, 2020 |
By: |
/s/ AVINASH REDDY |
|
Avinash Reddy |
|||
Senior Executive Vice President and Chief Financial Officer |
1. |
I have reviewed this quarterly report on Form 10-Q of Dime Community Bancshares, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of
the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter In the
case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the
registrant’s board of directors:
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 7, 2020
|
|
/s/ KENNETH J. MAHON
|
|
Kenneth J. Mahon
|
|
Chief Executive Officer
|
1. |
I have reviewed this quarterly report on Form 10-Q of Dime Community Bancshares, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of
the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter In the
case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the
registrant’s board of directors:
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 7, 2020
|
|
/s/ AVINASH REDDY
|
|
Avinash Reddy
|
|
Senior Executive Vice President and Chief
|
|
Financial Officer
|
(1) |
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: August 7, 2020
|
||
By:
|
/s/ KENNETH J. MAHON
|
|
Kenneth J. Mahon
|
||
Chief Executive Officer
|
(1) |
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: August 7, 2020 | ||
By:
|
/s/ AVINASH REDDY
|
|
Avinash Reddy
|
||
Senior Executive Vice President and Chief Financial Officer
|
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parenthetical) - $ / shares |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation value (in dollars per share) | $ 25.00 | $ 25.00 |
Preferred stock, shares authorized (in shares) | 9,000,000 | 9,000,000 |
Preferred stock, shares issued (in shares) | 5,299,200 | 0 |
Preferred stock, shares outstanding (in shares) | 5,299,200 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 53,724,233 | 53,721,189 |
Common stock, shares outstanding (in shares) | 33,089,585 | 35,154,642 |
Treasury stock (in shares) | 20,634,648 | 18,566,547 |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Interest income: | ||||
Loans secured by real estate | $ 49,058 | $ 50,811 | $ 99,175 | $ 99,988 |
C&I loans | 5,071 | 4,134 | 9,116 | 7,570 |
Other loans | 13 | 18 | 28 | 36 |
Mortgage-backed securities ("MBS") | 3,064 | 2,961 | 6,369 | 6,158 |
Investment securities | 582 | 570 | 1,003 | 990 |
Other short-term investments | 846 | 1,457 | 1,848 | 2,904 |
Total interest income | 58,634 | 59,951 | 117,539 | 117,646 |
Interest expense: | ||||
Deposits and escrow | 9,700 | 16,271 | 21,626 | 31,288 |
Borrowed funds | 5,378 | 7,176 | 11,833 | 14,530 |
Total interest expense | 15,078 | 23,447 | 33,459 | 45,818 |
Net interest income | 43,556 | 36,504 | 84,080 | 71,828 |
Provision (credit) for loan losses | 6,060 | (449) | 14,072 | (128) |
Net interest income after provision for loan losses | 37,496 | 36,953 | 70,008 | 71,956 |
Non-interest income: | ||||
Service charges and other fees | 1,083 | 1,264 | 2,286 | 2,363 |
Net mortgage banking income | 52 | 61 | 118 | 129 |
Net gain on sale of equity securities | 436 | 148 | (36) | 416 |
Net gain on sale of securities and other assets | 3,134 | (57) | 3,142 | (133) |
Gain on sale of loans | 206 | 339 | 521 | 594 |
Income from BOLI | 911 | 707 | 2,798 | 1,401 |
Loan level derivative income | 2,494 | 291 | 3,657 | 291 |
Other | 70 | 67 | 136 | 119 |
Total non-interest income | 8,386 | 2,820 | 12,622 | 5,180 |
Non-interest expense: | ||||
Salaries and employee benefits | 14,719 | 12,061 | 29,565 | 23,945 |
Severance | 3,930 | 0 | 4,000 | 0 |
Stock benefit plan compensation expense | 478 | 491 | 1,149 | 775 |
Occupancy and equipment | 3,959 | 3,827 | 8,015 | 7,696 |
Data processing costs | 2,007 | 1,908 | 4,031 | 3,974 |
Marketing | 136 | 465 | 533 | 931 |
Federal deposit insurance premiums | 529 | 586 | 1,006 | 1,040 |
Merger expenses | 1,072 | 0 | 1,658 | 0 |
Other | 2,516 | 2,958 | 5,429 | 5,987 |
Total non-interest expense | 29,346 | 22,296 | 55,386 | 44,348 |
Income before income taxes | 16,536 | 17,477 | 27,244 | 32,788 |
Income tax expense | 3,570 | 4,442 | 5,886 | 8,252 |
Net income | 12,966 | 13,035 | 21,358 | 24,536 |
Preferred stock dividends | 1,140 | 0 | 1,140 | 0 |
Net income available to common stockholders | $ 11,826 | $ 13,035 | $ 20,218 | $ 24,536 |
Earnings per Share: | ||||
Basic (in dollars per share) | $ 0.36 | $ 0.36 | $ 0.60 | $ 0.68 |
Diluted (in dollars per share) | $ 0.35 | $ 0.36 | $ 0.59 | $ 0.68 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract] | ||||
Net Income | $ 12,966 | $ 13,035 | $ 21,358 | $ 24,536 |
Other comprehensive income (loss): | ||||
Change in unrealized holding gain (loss) on securities available-for-sale | 659 | 4,261 | 10,911 | 8,948 |
Change in pension and other postretirement obligations | 271 | 237 | 542 | 729 |
Change in unrealized gain (loss) on derivatives | (3,461) | (6,077) | (23,838) | (9,361) |
Other comprehensive income (loss) before income taxes | (2,531) | (1,579) | (12,385) | 316 |
Deferred tax expense (benefit) | (760) | (523) | (3,922) | 104 |
Other comprehensive income (loss), net of tax | (1,771) | (1,056) | (8,463) | 212 |
Total comprehensive income | $ 11,195 | $ 11,979 | $ 12,895 | $ 24,748 |
NATURE OF OPERATIONS |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2020 | |||
NATURE OF OPERATIONS [Abstract] | |||
NATURE OF OPERATIONS |
Dime Community Bancshares, Inc. (the “Holding Company” and together with its direct and indirect subsidiaries, the “Company”) is a Delaware corporation organized by Dime Community Bank (the “Bank”) for the purpose of acquiring all of the capital stock of the Bank issued in the Bank’s conversion to stock ownership on June 26, 1996. At June 30, 2020 the significant assets of the Holding Company were the capital stock of the Bank and investments retained by the Holding Company. The liabilities of the Holding Company were comprised primarily of $115,000 subordinated notes due in 2027, which become callable commencing in 2022. The Company is subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.
The Bank was originally founded in 1864 as a New York State-chartered mutual savings bank, and currently operates as a New York State-chartered commercial bank. Effective August 1, 2016, the Bank changed its name from The Dime Savings Bank of Williamsburgh to Dime Community Bank. The new name more accurately reflected the Bank’s evolving business model and emphasized its broader geographic and business reach while retaining the Bank’s mission to be in and of the communities it served, including the virtual online community. The Bank’s principal business is gathering deposits from customers within its market area and via the internet, and investing them primarily in multifamily residential, commercial real estate, mixed use, and, to an increasing extent, commercial and industrial (“C&I”) loans, and one-to-four family residential real estate loans, as well as mortgage-backed securities, obligations of the U.S. government and government-sponsored enterprises (“GSEs”), and corporate debt and equity securities.
The Holding Company neither owns nor leases any property, but instead uses the back office of the Bank, located in the Brooklyn Heights section of the borough of Brooklyn, New York. The Bank maintains its principal office in the Williamsburg section of the borough of Brooklyn, New York. As of June 30, 2020, the Bank had twenty-eight retail banking offices located throughout the boroughs of Brooklyn, Queens, and the Bronx, and in Nassau County and Suffolk County, New York.
In July 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Bridge Bancorp, Inc. (“Bridge Bancorp”). See note 14 for additional details.
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.
It is possible that there will be material, adverse impacts to significant estimates, asset valuations, and business operations, including intangible assets, investments, loans, deferred tax assets, and derivative counter party risk
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SUMMARY OF ACCOUNTING POLICIES |
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Jun. 30, 2020 | |||
SUMMARY OF ACCOUNTING POLICIES [Abstract] | |||
SUMMARY OF 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 June 30, 2020 and December 31, 2019, the results of operations and statements of comprehensive income for the three-month and six-month periods ended June 30, 2020 and 2019, the changes in stockholders’ equity for the six-month period ended June 30, 2020 and 2019, and cash flows for the three-month and six-month periods ended June 30, 2020 and 2019. The results of operations for the three-month and six-month periods ended June 30, 2020 are not necessarily indicative of the results of operations for the remainder of the year ending December 31, 2020. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”).
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 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.
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2019 and notes thereto contained in our Annual Report on Form 10-K
Recent Accounting Pronouncements
In September 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires that the measurement of all expected credit losses for financial assets held at the reporting date be based on historical experience, current condition, and reasonable and supportable forecasts. This standard requires financial institutions and other organizations to use forward-looking information to better inform their credit loss estimates.
In anticipation of adoption, the Company has established the Current Expected Credit Loss (“CECL”) Subcommittee, a subcommittee of the Loan Loss Reserve Committee, to oversee the adoption of ASU 2016-13 on its consolidated financial statements. The Company has engaged a third party software provider to use their model to measure the expected credit losses. The CECL Subcommittee has determined loan segments based on credit risk of the loan portfolio, completed data validation, and developed qualitative adjustments. The CECL Subcommittee is in the process of developing and updating internal policies, procedures, and key controls over the calculation of the allowance for credit losses (“ACL”). The Company has also engaged an independent third party vendor which has reviewed and validated the regression models and assumptions utilized for measuring the expected credit losses.
ASU 2016-13 was effective for the Company as of January 1, 2020. Under Section 4014 of the recently enacted CARES Act, financial institutions required to adopt ASU 2016-13 as of January 1, 2020 were provided an option to delay the adoption of the CECL framework until the earlier of December 31, 2020 or when the national emergency is lifted. The Bank has elected to defer adoption of CECL and is utilizing the incurred loss framework as of June 30, 2020.
Upon completion of the aforementioned items, the Loan Loss Reserve Committee, which has oversight over the implementation of CECL, will adopt the standard at the earlier of December 31, 2020 or when the national emergency is lifted. Upon adoption, the Company will recognize a one-time cumulative effect change to the allowance for loan losses through retained earnings as of January 1, 2020. In the period of adoption, any year-to-date catch-up adjustments related to the period end CECL estimate will be adjusted through the income statement.
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
Activity in accumulated other comprehensive income (loss), net of tax, was as follows:
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.
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EARNINGS PER COMMON SHARE ("EPS") |
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EARNINGS PER COMMON SHARE ("EPS") [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE ("EPS") |
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 if all likely aggregate Long-term Incentive Plan (“LTIP”) and Sales Incentive Plan (“SIP”) shares are 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 SIP 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:
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 25,134 weighted-average stock options outstanding for the three-month period ended June 30, 2020, which was 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 period ended June 30, 2019 or the six-month periods ended June 30, 2020 and 2019.
For information about the calculation of expected aggregate LTIP and SIP share payouts, see Note 12.
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PREFERRED STOCK |
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Jun. 30, 2020 | |||
PREFERRED STOCK [Abstract] | |||
PREFERRED STOCK |
On February 5, 2020, the Company completed an underwritten public offering of 2,999,200 shares, or $74,980 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 net proceeds received from the issuance of preferred stock at the time of closing was $72,224. On June 10, 2020, the Company completed an underwritten public offering, a reopening of the February 5, 2020 original issuance, of 2,300,000 shares, or $57,500 in aggregate liquidation preference, of its 5.50% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A, par value $0.01 per share (the “Preferred Stock”), with a liquidation preference of $25.00 per share. The net proceeds received from the issuance of preferred stock at the time of closing was $44,345. 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.
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INVESTMENT AND MORTGAGE-BACKED SECURITIES |
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INVESTMENT AND MORTGAGE-BACKED SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT AND MORTGAGE-BACKED SECURITIES |
The following tables summarize the major categories of securities owned by the Company as of the dates indicated:
The carrying amount of securities pledged was $38,660 and $27,884 at June 30, 2020 and December 31, 2019, respectively.
At June 30, 2020, the available-for-sale agency notes possessed a weighted average contractual maturity of 8.9 years. At June 30, 2020, available-for-sale agency CMO and MBS securities possessed a weighted average contractual maturity of 17.8 years. At June 30, 2020, the corporate securities possessed a weighted average contractual maturity of 9.2 years.
The gain or loss on equity securities shown in the unaudited condensed consolidated statements of income was due to market valuation changes. Net gain of $436 and $148 were recognized on marketable equity securities for the three-month periods ended June 30, 2020 and 2019, respectively. Net (loss) gain of $(36) and$416 were recognized on marketable equity securities for the six-month periods ended June 30, 2020 and 2019, respectively.
The following table summarizes the gross unrealized losses and fair value of investment securities aggregated by investment category and the length of time the securities were in a continuous unrealized loss position as of the dates indicated:
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 June 30, 2020.
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LOANS |
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LOANS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS |
Loans are reported at the principal amount outstanding, net of unearned fees or costs. Interest income on loans is recorded using the level yield method. Under this method, discount accretion and premium amortization are included in interest income. Loan origination fees and certain direct loan origination costs are deferred and amortized as yield adjustments over the contractual loan terms.
The following table presents the loan categories for the period ended as indicated:
Included in C&I loans was $310,509 of Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans. These loans carry a 100% guarantee from the SBA and have no allowance for loan losses allocated to them based on the nature of the guarantee.
The allowance for loan losses consists of specific and general components. At June 30, 2020, the Bank’s periodic evaluation of its allowance for loan losses (specific or general) was comprised of two primary components: (1) specific reserve on impaired loans and (2) general reserve on non-impaired loans. Within these components, the Company has identified the following portfolio segments for purposes of assessing its allowance for loan losses: (1) real estate loans; (2) C&I loans; and (3) other loans (which includes consumer loans). Within these segments, the Bank analyzes the allowance for loan losses based upon the underlying collateral type (classes). Smaller balance homogeneous real estate loans, such as condominium or cooperative apartment and one-to-four family residential real estate loans with balances equal to or less than the Federal National Mortgage Association (“FNMA”) Limits, and consumer loans are collectively evaluated for impairment, and accordingly, are not separately identified for impairment disclosures.
The following tables present data regarding the allowance for loan losses activity for the periods indicated:
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment evaluation method as of the dates indicated:
Troubled debt restructurings (“TDRs”)
A TDR has been created in the event that, for economic or legal reasons, any of the following concessions has been granted that would not have otherwise been considered to a debtor experiencing financial difficulties. The following criteria are considered concessions:
In instances in which the interest rate has been reduced, management would not deem the modification a TDR in the event that the reduction in interest rate reflected either a general decline in market interest rates or an effort to maintain a relationship with a borrower who could readily obtain funds from other sources at the current market interest rate, and the terms of the restructured loan are comparable to the terms offered by the Bank to non-troubled debtors. There were no loans modified in a manner that met the criteria of a TDR during the three-month and six month periods ended June 30, 2020 or 2019. There were no TDRs as of June 30, 2020 or December 31, 2019.
Loan payment deferrals due to COVID-19
Consistent with the Interagency Statement issued in March 2020, and subsequently revised in April 2020 to align with Section 4013 of the CARES Act, the Company established a formal payment deferral program in April 2020 to work with borrowers adversely affected during the unprecedented situation caused by the COVID-19 pandemic. The payment deferral programs primarily consist of short-term (i.e. three-month or six-month) deferrals of interest and/or principal payments to be collected at the maturity of the loan.
Pursuant to regulatory guidance, and guidance under Section 4013 of the CARES Act, a qualified loan modification, such as a payment deferral, is exempt by law from classification as a TDR as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak is lifted. The table below presents the loans with payment deferrals as of June 30, 2020:
In addition, the risk-rating on loans with payment deferrals did not change, and these loans will not be considered past due until after the deferral period ends. The credit quality of these loans will be re-evaluated after the deferral period ends.
Impaired Loans
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 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):
The following table summarizes impaired loans recorded as of the dates indicated:
The following table presents information for impaired loans for the periods indicated:
The following table presents information for impaired loans for the periods indicated:
The following tables summarize the past due status of the Company’s investment in loans (excluding deferred costs and accrued interest) as of the dates indicated:
Accruing Loans 90 Days or More Past Due
The Bank continued accruing interest on six loans with an aggregate outstanding balance of $3,691 at June 30, 2020, and two real estate loans with an aggregate outstanding balance of $1,533 at December 31, 2019, 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 were expected to be refinanced, and therefore remained on accrual status and were deemed performing assets at the dates indicated above.
Credit Quality Indicators
The Company uses the following definitions for risk ratings:
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. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of then existing facts, conditions, and values, highly questionable and improbable.
All real estate and C&I loans not classified as Special Mention, Substandard, or Doubtful were deemed pass loans at both June 30, 2020 and December 31, 2019.
The following is a summary of the credit risk profile of real estate and C&I loans (excluding deferred costs) by internally assigned grade as of the dates indicated:
The following is a summary of the credit risk profile of other loans:
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LEASES |
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LEASES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES |
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 June 30, 2020 are as follows:
Other information related to operating leases was as follows:
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DERIVATIVES AND HEDGING ACTIVITIES |
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DERIVATIVES AND HEDGING ACTIVITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES |
The Company is exposed to certain risk 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 debt.
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 $9,571 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 month period ended March 31, 2020, the Company terminated two derivatives with notional values totaling $30,000, resulting in a termination value of $175 which will be recognized in interest expense over the remaining term of the original derivative.
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 periods indicated.
The table below presents the effect of the cash flow hedge accounting on Accumulated Other Comprehensive Income (Loss) as of June 30, 2020 and 2019.
All cash flow hedges are recorded gross on the balance sheet.
A portion of the cash flow hedges involve derivative agreements with the FHLBNY. These derivatives (with the FHLBNY) are cross collateralized with the Bank’s existing loan portfolio and as such do not require any additional cash collateral. A portion of the cash flow hedges involve derivative agreements with other third-party counterparties that contain provisions requiring the Bank to post cash collateral if the derivative exposure exceeds a threshold amount. As of June 30, 2020, posted collateral to the other third-party counterparties was $6,773.
Freestanding Derivatives
The Company maintains an interest-rate risk protection program for its loan portfolio, which was established in 2019, 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 counterparties. 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 amount 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 table reflects freestanding derivatives included in the Consolidated Statements of Financial Condition as of the period indicated:
These freestanding derivatives did not have a material impact on the Company’s results of operation or financial condition.
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:
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 June 30, 2020, posted collateral was $18,847.
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 June 30, 2020, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $31,338 for those related to FHLBNY advances and $18,475 for those related to loan level derivatives. If the Company had breached any of the above provisions at June 30, 2020, 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 period ended June 30, 2020.
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FAIR VALUE OF FINANCIAL INSTRUMENTS |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS |
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 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the reporting entity has the ability to access at the measurement date.
Level 2 Inputs – Significant other observable inputs such as any of the following: (1) quoted prices for similar assets or liabilities in active markets, (2) quoted prices for identical or similar assets or liabilities in markets that are not active, (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates), or (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).
Level 3 Inputs – Significant unobservable inputs for the asset or liability. Significant unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Significant unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.
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, CMO and agency notes available-for-sale are guaranteed either implicitly or explicitly by GSEs as of June 30, 2020 and December 31, 2019. 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 June 30, 2020 and December 31, 2019 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 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.
Assets and Liabilities Measured at Fair Value on a Nonrecurring 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 (for example, when there is evidence of impairment). Financial assets measured at fair value on a nonrecurring basis include certain impaired loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. There were no impaired loans carried at fair value at June 30, 2020 or December 31, 2019.
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 is as follows 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.
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RETIREMENT AND POSTRETIREMENT PLANS |
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RETIREMENT AND POSTRETIREMENT PLANS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT AND POSTRETIREMENT PLANS |
The Holding Company or the Bank maintains the Retirement Plan of Dime Community Bank (the “Employee Retirement Plan”), the Retirement Plan for Board Members of Dime Community Bancshares, Inc. (the “Outside Director Retirement Plan”), the BMP, and the Postretirement Welfare Plan of Dime Community Bank (the “Postretirement Plan”).
The components of net periodic costs are included in other non-interest expense in the Consolidated Statements of Income. Net expenses associated with these plans were comprised of the following components:
The following table presents the Company’s planned contributions to, or benefit payments on behalf of each benefit plan as disclosed in its consolidated financial statements for the year ended December 31, 2019, as well as the actual contributions to, or benefit payments on behalf of each benefit plan during the period indicated:
The Company expects to make the remainder of the contributions to, or benefit payments on behalf of, each benefit plan during the year ended December 31, 2020, except for the Employee Retirement Plan as there is a surplus and no contributions are required.
The BMP exists in order to compensate executive officers for any curtailments in benefits due to statutory limitations on qualifying benefit plans. There were no retirement distributions for the three month or six month periods ended June 30, 2020 or 2019.
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STOCK-BASED COMPENSATION |
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STOCK-BASED COMPENSATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION |
The Company maintains the Dime Community Bancshares, Inc. 2001 Stock Incentive Plan for Outside Directors, Officers and Employees, the Dime Community Bancshares, Inc. 2004 Stock Incentive Plan for Outside Directors, Officers and Employees, the 2013 Equity and Incentive Plan (“2013 Equity Plan”), and the 2020 Equity and Incentive Plan (“2020 Equity Plan”) (collectively, the “Stock Plans”), which are discussed more fully in Note 22 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2019, and which are subject to the accounting requirements of ASC 505-50 and ASC 718. The 2020 Equity Plan was approved during the three months ended June 30, 2020.
Stock Option Awards
The following table presents a summary of activity related to stock options granted under the Stock Plans, and changes during the period then ended:
Information related to stock options during each period is as follows:
Restricted Stock Awards
The Company has made restricted stock award grants to outside Directors and certain officers under the Stock Plans. Typically, awards to outside Directors fully vest on the first anniversary of the grant date, while awards to officers may vest in equal annual installments over a
or four-year period or at the end of the pre-determined requisite period. All awards were made at the fair value of Common Stock on the grant date. Compensation expense on all restricted stock awards are 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:
Information related to RSAs during each period is as follows:
As of June 30, 2020, there was $3,620 of total unrecognized compensation cost related to unvested restricted stock awards. The cost is expected to be recognized over a weighted-average period of 2.7 years.
Performance Based Equity Awards
The Company maintains the LTIP, a long term incentive award program 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.
The following table presents a summary of activity related to performance-based equity awards, and changes during the period then ended:
Information related to LTIP share awards during each period is as follows:
Sales Incentive Awards
The Company established the SIP, 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.
The following table presents a summary of activity related to sales incentive equity awards, and changes during the period then ended:
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INCOME TAXES |
6 Months Ended | ||
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Jun. 30, 2020 | |||
INCOME TAXES [Abstract] | |||
INCOME TAXES |
During the three months ended June 30, 2020 and 2019, the Company’s consolidated effective tax rates were 21.6% and 25.4%, respectively. During the six months ended June 30, 2020 and June 30, 2019, the Company’s consolidated effective tax rates were 21.6% and 25.2%, respectively. There were no significant unusual income tax items during the six-month periods ended either June 30, 2020 or 2019.
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SUBSEQUENT EVENTS |
6 Months Ended | ||
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Jun. 30, 2020 | |||
SUBSEQUENT EVENTS [Abstract] | |||
SUBSEQUENT EVENTS |
On July 1, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Bridge Bancorp, Inc. (“Bridge Bancorp”). The Merger Agreement provides that upon the terms and subject to the conditions set forth therein, the Company will merge with and into Bridge Bancorp (the “Merger”), with Bridge Bancorp as the surviving corporation under the name “Dime Community Bancshares, Inc.” (the “Surviving Corporation”). The Surviving Corporation will be headquartered in Hauppauge, New York, and will have a corporate office located in New York, New York. At the effective time of the Merger, each outstanding share of Company common stock, par value $0.01 per share, will be converted into the right to receive 0.648 shares of Bridge Bancorp common stock, par value $0.01 per share.
Following the Merger, Dime Community Bank will merge with and into BNB Bank, a New York-chartered commercial bank and a wholly-owned subsidiary of Bridge Bancorp, with BNB Bank as the surviving bank, under the name “Dime Community Bank.”
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NATURE OF OPERATIONS (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
NATURE OF OPERATIONS [Abstract] | |
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.
It is possible that there will be material, adverse impacts to significant estimates, asset valuations, and business operations, including intangible assets, investments, loans, deferred tax assets, and derivative counter party risk
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SUMMARY OF ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
SUMMARY OF ACCOUNTING POLICIES [Abstract] | |
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 June 30, 2020 and December 31, 2019, the results of operations and statements of comprehensive income for the three-month and six-month periods ended June 30, 2020 and 2019, the changes in stockholders’ equity for the six-month period ended June 30, 2020 and 2019, and cash flows for the three-month and six-month periods ended June 30, 2020 and 2019. The results of operations for the three-month and six-month periods ended June 30, 2020 are not necessarily indicative of the results of operations for the remainder of the year ending December 31, 2020. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”).
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 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.
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2019 and notes thereto contained in our Annual Report on Form 10-K
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Recent Accounting Pronouncements |
Recent Accounting Pronouncements
In September 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires that the measurement of all expected credit losses for financial assets held at the reporting date be based on historical experience, current condition, and reasonable and supportable forecasts. This standard requires financial institutions and other organizations to use forward-looking information to better inform their credit loss estimates.
In anticipation of adoption, the Company has established the Current Expected Credit Loss (“CECL”) Subcommittee, a subcommittee of the Loan Loss Reserve Committee, to oversee the adoption of ASU 2016-13 on its consolidated financial statements. The Company has engaged a third party software provider to use their model to measure the expected credit losses. The CECL Subcommittee has determined loan segments based on credit risk of the loan portfolio, completed data validation, and developed qualitative adjustments. The CECL Subcommittee is in the process of developing and updating internal policies, procedures, and key controls over the calculation of the allowance for credit losses (“ACL”). The Company has also engaged an independent third party vendor which has reviewed and validated the regression models and assumptions utilized for measuring the expected credit losses.
ASU 2016-13 was effective for the Company as of January 1, 2020. Under Section 4014 of the recently enacted CARES Act, financial institutions required to adopt ASU 2016-13 as of January 1, 2020 were provided an option to delay the adoption of the CECL framework until the earlier of December 31, 2020 or when the national emergency is lifted. The Bank has elected to defer adoption of CECL and is utilizing the incurred loss framework as of June 30, 2020.
Upon completion of the aforementioned items, the Loan Loss Reserve Committee, which has oversight over the implementation of CECL, will adopt the standard at the earlier of December 31, 2020 or when the national emergency is lifted. Upon adoption, the Company will recognize a one-time cumulative effect change to the allowance for loan losses through retained earnings as of January 1, 2020. In the period of adoption, any year-to-date catch-up adjustments related to the period end CECL estimate will be adjusted through the income statement.
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Accumulated Other Comprehensive Income (Loss), Net of Tax |
Activity in accumulated other comprehensive income (loss), net of tax, was as follows:
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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.
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EARNINGS PER COMMON SHARE ("EPS") (Tables) |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE ("EPS") [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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INVESTMENT AND MORTGAGE-BACKED SECURITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT AND MORTGAGE-BACKED SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Categories of Securities Owned by Entity |
The following tables summarize the major categories of securities owned by the Company as of the dates indicated:
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Summary of Sale of Available-for-sale Securities |
At June 30, 2020, the available-for-sale agency notes possessed a weighted average contractual maturity of 8.9 years. At June 30, 2020, available-for-sale agency CMO and MBS securities possessed a weighted average contractual maturity of 17.8 years. At June 30, 2020, the corporate securities possessed a weighted average contractual maturity of 9.2 years.
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Sales of Marketable Equity Securities |
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Gross Unrealized Losses and Fair Value of Investment Securities by Investment Category and Length of Time in a Continuous Unrealized Loss Position |
The following table summarizes the gross unrealized losses and fair value of investment securities aggregated by investment category and the length of time the securities were in a continuous unrealized loss position as of the dates indicated:
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LOANS (Tables) |
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LOANS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Categories |
The following table presents the loan categories for the period ended as indicated:
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Activity in Allowance for Loan Losses |
The following tables present data regarding the allowance for loan losses activity for the periods indicated:
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment evaluation method as of the dates indicated:
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Loans Approved for Deferral |
Pursuant to regulatory guidance, and guidance under Section 4013 of the CARES Act, a qualified loan modification, such as a payment deferral, is exempt by law from classification as a TDR as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak is lifted. The table below presents the loans with payment deferrals as of June 30, 2020:
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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):
The following table summarizes impaired loans recorded as of the dates indicated:
The following table presents information for impaired loans for the periods indicated:
The following table presents information for impaired loans for the periods indicated:
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Past Due Financing Receivables |
The following tables summarize the past due status of the Company’s investment in loans (excluding deferred costs and accrued interest) as of the dates indicated:
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Credit Risk Profile of the Real Estate Loans |
The following is a summary of the credit risk profile of real estate and C&I loans (excluding deferred costs) by internally assigned grade as of the dates indicated:
The following is a summary of the credit risk profile of other loans:
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LEASES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of Operating Lease Liabilities |
Maturities of the Company’s operating lease liabilities at June 30, 2020 are as follows:
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Other Information Related to Operating Leases |
Other information related to operating leases was as follows:
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DERIVATIVES AND HEDGING ACTIVITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) as of June 30, 2020 and 2019.
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Designated as Hedging Instrument [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Financial Instruments and Classification on Consolidated Statements of Financial Condition |
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 periods indicated.
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Not Designated as Hedging Instrument [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Financial Instruments and Classification on Consolidated Statements of Financial Condition |
The Company maintains an interest-rate risk protection program for its loan portfolio, which was established in 2019, 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 counterparties. 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 amount 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 table reflects freestanding derivatives included in the Consolidated Statements of Financial Condition as of the period indicated:
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Loan Level Derivative Income |
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:
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis |
The following tables present financial assets 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.
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Fair Value Measurements, Nonrecurring |
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 is as follows 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.
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RETIREMENT AND POSTRETIREMENT PLANS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT AND POSTRETIREMENT PLANS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Costs |
The components of net periodic costs are included in other non-interest expense in the Consolidated Statements of Income. Net expenses associated with these plans were comprised of the following components:
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Planned Contributions and Actual Contributions to, or Benefit Payments |
The following table presents the Company’s planned contributions to, or benefit payments on behalf of each benefit plan as disclosed in its consolidated financial statements for the year ended December 31, 2019, as well as the actual contributions to, or benefit payments on behalf of each benefit plan during the period indicated:
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STOCK-BASED COMPENSATION (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity Related to Stock Options |
The following table presents a summary of activity related to stock options granted under the Stock Plans, and changes during the period then ended:
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Information Related to Stock Option Plan |
Information related to stock options during each period is as follows:
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Activity Related to Restricted Stock Awards |
The following table presents a summary of activity related to the RSAs granted, and changes during the period then ended:
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Information Related to Restricted Stock Award Plan |
Information related to RSAs during each period is as follows:
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Performance Shares [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity Related to Performance Based Equity Awards |
The following table presents a summary of activity related to performance-based equity awards, and changes during the period then ended:
|
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Information Related to Stock Award Plan |
Information related to LTIP share awards during each period is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales Incentive Award Program [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity Related to Performance Based Equity Awards |
The following table presents a summary of activity related to sales incentive equity awards, and changes during the period then ended:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information Related to Stock Award Plan |
|
NATURE OF OPERATIONS (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
RetailBranch
| |
NATURE OF OPERATIONS [Abstract] | |
Subordinated notes payable, net | $ | $ 115,000 |
Number of retail banking offices | RetailBranch | 28 |
PREFERRED STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands |
Jun. 10, 2020 |
Feb. 05, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Public Offering [Abstract] | ||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, liquidation preference (in dollars per share) | 25.00 | $ 25.00 | ||
Series A Preferred Stock [Member] | ||||
Public Offering [Abstract] | ||||
Number of share issued in public offering (in shares) | 2,300,000 | 2,999,200 | ||
Preferred stock, liquidation preference | $ 57,500 | $ 74,980 | ||
Preferred stock, interest rate | 5.50% | 5.50% | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, liquidation preference (in dollars per share) | $ 25.00 | $ 25.00 | ||
Proceeds from issuance of preferred stock | $ 44,345 | $ 72,224 | ||
Preferred stock, redemption price (in dollars per share) | $ 25.00 |
LOANS, Troubled Debt Restructurings (Details) - Loan |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
LOANS [Abstract] | |||||
Number of TDRs | 0 | 0 | |||
Number of loans modified | 0 | 0 | 0 | 0 |
LOANS, Past Due (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2020
USD ($)
Loan
|
Dec. 31, 2019
USD ($)
Loan
|
|||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Non-accrual | $ 15,383 | [1] | $ 11,091 | [2] | ||||
Total past due | 25,351 | 13,306 | ||||||
Current | 5,419,031 | 5,327,232 | ||||||
Loans | $ 5,444,382 | $ 5,340,538 | ||||||
Number of real estate loans more than 90 days past due on contractual balloon payment | Loan | 6 | 2 | ||||||
30 to 59 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | $ 5,697 | $ 681 | ||||||
60 to 89 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 580 | 1 | ||||||
Loans 90 Days or More Past Due and Still Accruing Interest [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 3,691 | 1,533 | ||||||
Real Estate Loans [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Non-accrual | 5,199 | [1] | 1,007 | [2] | ||||
Total past due | 15,157 | 3,171 | ||||||
Current | 4,796,244 | 4,999,183 | ||||||
Loans | 4,811,401 | 5,002,354 | ||||||
Real Estate Loans [Member] | 30 to 59 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 5,695 | 631 | ||||||
Real Estate Loans [Member] | 60 to 89 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 572 | 0 | ||||||
Real Estate Loans [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 3,691 | 1,533 | ||||||
Real Estate Loans [Member] | One- to-Four Family Residential, Including Condominium and Cooperative Apartment [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Non-accrual | 819 | [1] | 794 | [2] | ||||
Total past due | 925 | 1,211 | ||||||
Current | 181,339 | 147,218 | ||||||
Loans | 182,264 | 148,429 | ||||||
Real Estate Loans [Member] | One- to-Four Family Residential, Including Condominium and Cooperative Apartment [Member] | 30 to 59 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 0 | 417 | ||||||
Real Estate Loans [Member] | One- to-Four Family Residential, Including Condominium and Cooperative Apartment [Member] | 60 to 89 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 62 | 0 | ||||||
Real Estate Loans [Member] | One- to-Four Family Residential, Including Condominium and Cooperative Apartment [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 44 | 0 | ||||||
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed-Use [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Non-accrual | 1,377 | [1] | 153 | [2] | ||||
Total past due | 7,072 | 1,536 | ||||||
Current | 2,981,439 | 3,383,839 | ||||||
Loans | 2,988,511 | 3,385,375 | ||||||
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed-Use [Member] | 30 to 59 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 3,705 | 214 | ||||||
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed-Use [Member] | 60 to 89 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 510 | 0 | ||||||
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed-Use [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 1,480 | 1,169 | ||||||
Real Estate Loans [Member] | Commercial Real Estate and Commercial Mixed-Use [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Non-accrual | 3,003 | [1] | 60 | [2] | ||||
Total past due | 7,160 | 424 | ||||||
Current | 1,496,860 | 1,349,761 | ||||||
Loans | 1,504,020 | 1,350,185 | ||||||
Real Estate Loans [Member] | Commercial Real Estate and Commercial Mixed-Use [Member] | 30 to 59 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 1,990 | 0 | ||||||
Real Estate Loans [Member] | Commercial Real Estate and Commercial Mixed-Use [Member] | 60 to 89 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 0 | 0 | ||||||
Real Estate Loans [Member] | Commercial Real Estate and Commercial Mixed-Use [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 2,167 | 364 | ||||||
Real Estate Loans [Member] | ADC [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Non-accrual | 0 | [1] | 0 | [2] | ||||
Total past due | 0 | 0 | ||||||
Current | 136,606 | 118,365 | ||||||
Loans | 136,606 | 118,365 | ||||||
Real Estate Loans [Member] | ADC [Member] | 30 to 59 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 0 | 0 | ||||||
Real Estate Loans [Member] | ADC [Member] | 60 to 89 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 0 | 0 | ||||||
Real Estate Loans [Member] | ADC [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 0 | 0 | ||||||
C&I [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Non-accrual | 10,176 | [1] | 10,082 | [2] | ||||
Total past due | 10,176 | 10,126 | ||||||
Current | 621,342 | 326,286 | ||||||
Loans | 631,518 | 336,412 | ||||||
C&I [Member] | 30 to 59 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 0 | 44 | ||||||
C&I [Member] | 60 to 89 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 0 | 0 | ||||||
C&I [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 0 | 0 | ||||||
Other Loans [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Non-accrual | 8 | [1] | 2 | [2] | ||||
Total past due | 18 | 9 | ||||||
Current | 1,445 | 1,763 | ||||||
Loans | 1,463 | 1,772 | ||||||
Other Loans [Member] | 30 to 59 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 2 | 6 | ||||||
Other Loans [Member] | 60 to 89 Days Past Due [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | 8 | 1 | ||||||
Other Loans [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member] | ||||||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||||||
Total past due | $ 0 | $ 0 | ||||||
|
LOANS, Credit Quality Indicators (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | $ 5,444,382 | $ 5,340,538 |
Real Estate Loans [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 4,811,401 | 5,002,354 |
Real Estate Loans [Member] | Pass [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 4,711,077 | 4,919,744 |
Real Estate Loans [Member] | Special Mention [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 52,096 | 19,446 |
Real Estate Loans [Member] | Substandard [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 48,228 | 63,164 |
Real Estate Loans [Member] | Doubtful [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 0 | 0 |
Real Estate Loans [Member] | One- to-Four Family Residential, Including Condominium and Cooperative Apartment [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 182,264 | 148,429 |
Real Estate Loans [Member] | One- to-Four Family Residential, Including Condominium and Cooperative Apartment [Member] | Pass [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 181,368 | 147,635 |
Real Estate Loans [Member] | One- to-Four Family Residential, Including Condominium and Cooperative Apartment [Member] | Special Mention [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 0 | 0 |
Real Estate Loans [Member] | One- to-Four Family Residential, Including Condominium and Cooperative Apartment [Member] | Substandard [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 896 | 794 |
Real Estate Loans [Member] | One- to-Four Family Residential, Including Condominium and Cooperative Apartment [Member] | Doubtful [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 0 | 0 |
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed-Use [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 2,988,511 | 3,385,375 |
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed-Use [Member] | Pass [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 2,907,528 | 3,319,226 |
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed-Use [Member] | Special Mention [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 47,313 | 14,606 |
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed-Use [Member] | Substandard [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 33,670 | 51,543 |
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed-Use [Member] | Doubtful [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 0 | 0 |
Real Estate Loans [Member] | Commercial Real Estate and Commercial Mixed-Use [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 1,504,020 | 1,350,185 |
Real Estate Loans [Member] | Commercial Real Estate and Commercial Mixed-Use [Member] | Pass [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 1,485,575 | 1,334,518 |
Real Estate Loans [Member] | Commercial Real Estate and Commercial Mixed-Use [Member] | Special Mention [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 4,783 | 4,840 |
Real Estate Loans [Member] | Commercial Real Estate and Commercial Mixed-Use [Member] | Substandard [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 13,662 | 10,827 |
Real Estate Loans [Member] | Commercial Real Estate and Commercial Mixed-Use [Member] | Doubtful [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 0 | 0 |
Real Estate Loans [Member] | ADC [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 136,606 | 118,365 |
Real Estate Loans [Member] | ADC [Member] | Pass [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 136,606 | 118,365 |
Real Estate Loans [Member] | ADC [Member] | Special Mention [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 0 | 0 |
Real Estate Loans [Member] | ADC [Member] | Substandard [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 0 | 0 |
Real Estate Loans [Member] | ADC [Member] | Doubtful [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 0 | 0 |
C & I Loans [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 631,518 | 336,412 |
C & I Loans [Member] | Pass [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 618,214 | 325,296 |
C & I Loans [Member] | Special Mention [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 2,058 | 1,034 |
C & I Loans [Member] | Substandard [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 1,164 | 0 |
C & I Loans [Member] | Doubtful [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 10,082 | 10,082 |
Real Estate Loans and C & I Loans [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 5,442,919 | 5,338,766 |
Real Estate Loans and C & I Loans [Member] | Pass [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 5,329,291 | 5,245,040 |
Real Estate Loans and C & I Loans [Member] | Special Mention [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 54,154 | 20,480 |
Real Estate Loans and C & I Loans [Member] | Substandard [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 49,392 | 63,164 |
Real Estate Loans and C & I Loans [Member] | Doubtful [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 10,082 | 10,082 |
Other Loans [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 1,463 | 1,772 |
Other Loans [Member] | Performing [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | 1,455 | 1,770 |
Other Loans [Member] | Non-Accrual [Member] | ||
Credit Risk Profile of Real Estate Loans [Abstract] | ||
Loans | $ 8 | $ 2 |
LEASES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Maturities of Operating Lease Liabilities [Abstract] | |||||
2020 | $ 3,501 | $ 3,501 | |||
2021 | 7,030 | 7,030 | |||
2022 | 6,829 | 6,829 | |||
2023 | 5,870 | 5,870 | |||
2024 | 5,985 | 5,985 | |||
Thereafter | 19,108 | 19,108 | |||
Total undiscounted lease payments | 48,323 | 48,323 | |||
Less amounts representing interest | 5,590 | 5,590 | |||
Lease liability | 42,733 | 42,733 | $ 44,098 | ||
Other Information Related to Operating Leases [Abstract] | |||||
Operating lease cost | $ 1,628 | $ 1,621 | $ 3,231 | $ 3,241 | |
Weighted average remaining lease term | 7 years 8 months 12 days | 8 years 6 months | 7 years 8 months 12 days | 8 years 6 months | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 3,550 | $ 3,433 | |||
Weighted average discount rate | 3.23% | 3.25% | 3.23% | 3.25% |
DERIVATIVES AND HEDGING ACTIVITIES, Classification on Consolidated Statements of Financial Condition (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2020
USD ($)
DerivativeInstrument
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
DerivativeInstrument
|
Jun. 30, 2019
USD ($)
|
Mar. 31, 2020
USD ($)
DerivativeInstrument
|
Dec. 31, 2019
USD ($)
DerivativeInstrument
|
|
Fair Value of Derivative Financial Instruments [Abstract] | ||||||
Maximum period for future cash flows of forecasted transactions | 24 months | |||||
Fair value assets | $ 18,475 | $ 18,475 | ||||
Designated as Hedging Instrument [Member] | ||||||
Fair Value of Derivative Financial Instruments [Abstract] | ||||||
Number of derivatives terminated | DerivativeInstrument | 2 | |||||
Derivative notional amount | $ 30,000 | |||||
Termination value of derivative | $ 175 | |||||
Posted collateral | 6,773 | 6,773 | ||||
Not Designated as Hedging Instrument [Member] | ||||||
Fair Value of Derivative Financial Instruments [Abstract] | ||||||
Loan level derivative income | 2,494 | $ 291 | 3,657 | $ 291 | ||
Posted collateral | 18,847 | 18,847 | ||||
Interest Rate Products [Member] | Designated as Hedging Instrument [Member] | ||||||
Fair Value of Derivative Financial Instruments [Abstract] | ||||||
Estimated reclassification decrease to interest expense during next twelve months | $ 9,571 | $ 9,571 | ||||
Interest Rate Swaps Related to FHLBNY Advances [Member] | Designated as Hedging Instrument [Member] | ||||||
Fair Value of Derivative Financial Instruments [Abstract] | ||||||
Count, assets | DerivativeInstrument | 7 | |||||
Count, liabilities | DerivativeInstrument | 38 | 38 | 19 | |||
Notional amount, assets | $ 130,000 | |||||
Notional amount, liabilities | $ 750,000 | $ 750,000 | 315,000 | |||
Fair value assets | 1,081 | |||||
Fair value liabilities | $ 30,504 | $ 30,504 | $ 7,718 | |||
Loan Level Interest Rate Swaps with Borrower [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Fair Value of Derivative Financial Instruments [Abstract] | ||||||
Count, assets | DerivativeInstrument | 30 | 30 | 7 | |||
Count, liabilities | DerivativeInstrument | 1 | |||||
Notional amount, assets | $ 277,792 | $ 277,792 | $ 61,038 | |||
Notional amount, liabilities | 7,205 | |||||
Fair value assets | 20,019 | 20,019 | 1,347 | |||
Fair value liabilities | $ 0 | $ 0 | $ 15 | |||
Loan Level Interest Rate Floors with Borrower [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Fair Value of Derivative Financial Instruments [Abstract] | ||||||
Count, assets | DerivativeInstrument | 7 | 7 | ||||
Notional amount, assets | $ 94,492 | $ 94,492 | ||||
Fair value assets | 0 | 0 | ||||
Fair value liabilities | $ 1,544 | $ 1,544 | ||||
Loan Level Interest Rate Swaps with Third-part Counterparties [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Fair Value of Derivative Financial Instruments [Abstract] | ||||||
Count, assets | DerivativeInstrument | 30 | 30 | 1 | |||
Count, liabilities | DerivativeInstrument | 7 | |||||
Notional amount, assets | $ 277,792 | $ 277,792 | $ 7,205 | |||
Notional amount, liabilities | 61,038 | |||||
Fair value assets | 0 | 0 | 15 | |||
Fair value liabilities | $ 20,019 | $ 20,019 | $ 1,347 | |||
Loan Level Interest Rate Floors with Third-part Counterparties [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Fair Value of Derivative Financial Instruments [Abstract] | ||||||
Count, assets | DerivativeInstrument | 7 | 7 | ||||
Notional amount, assets | $ 94,492 | $ 94,492 | ||||
Fair value assets | 1,544 | 1,544 | ||||
Fair value liabilities | $ 0 | $ 0 |
DERIVATIVES AND HEDGING ACTIVITIES, Effect on Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Gain (Loss) on Derivative Financial Instruments [Abstract] | ||||
Amount of loss recognized in other comprehensive income | $ (4,617) | $ (5,745) | $ (25,198) | $ (8,673) |
Designated as Hedging Instrument [Member] | ||||
Gain (Loss) on Derivative Financial Instruments [Abstract] | ||||
Posted collateral | 6,773 | 6,773 | ||
Interest Rate Products [Member] | Other Comprehensive Income [Member] | ||||
Gain (Loss) on Derivative Financial Instruments [Abstract] | ||||
Amount of loss recognized in other comprehensive income | (4,617) | (5,745) | (25,198) | (8,673) |
Interest Rate Products [Member] | Other Comprehensive Income [Member] | Interest Expense [Member] | ||||
Gain (Loss) on Derivative Financial Instruments [Abstract] | ||||
Amount of gain (loss) reclassified from other comprehensive income into interest expense | $ (1,156) | $ 332 | $ (1,360) | $ 688 |
DERIVATIVES AND HEDGING ACTIVITIES, Offsetting of Derivative Liabilities (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
Provision
| |
Credit Risk Related Contingent Features [Abstract] | |
Fair value of derivative liability, including accrued interest | $ 31,338 |
Number of provisions breached | Provision | 0 |
FHLBNY advances | $ 18,475 |
FAIR VALUE OF FINANCIAL INSTRUMENTS, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Recurring [Member] | ||
Marketable equity securities (Registered Mutual Funds) [Abstract] | ||
Domestic equity mutual funds | $ 1,503 | $ 1,657 |
International equity mutual funds | 385 | 420 |
Fixed income mutual funds | 3,819 | 3,817 |
Securities available-for-sale [Abstract] | ||
Agency Notes | 35,008 | 19,935 |
Corporate Securities | 42,720 | 28,596 |
Pass-through MBS issued by GSEs | 191,802 | 247,483 |
Agency CMOs | 272,477 | 254,981 |
Derivative - cash flow hedges | 1,081 | |
Derivative - freestanding derivatives, net | 18,475 | 1,362 |
Financial Liabilities [Abstract] | ||
Derivative - cash flow hedges | 30,504 | 7,718 |
Derivative - freestanding derivatives, net | 18,475 | 1,362 |
Recurring [Member] | Level 1 Inputs [Member] | ||
Marketable equity securities (Registered Mutual Funds) [Abstract] | ||
Domestic equity mutual funds | 1,503 | 1,657 |
International equity mutual funds | 385 | 420 |
Fixed income mutual funds | 3,819 | 3,817 |
Securities available-for-sale [Abstract] | ||
Agency Notes | 0 | 0 |
Corporate Securities | 0 | 0 |
Pass-through MBS issued by GSEs | 0 | 0 |
Agency CMOs | 0 | 0 |
Derivative - cash flow hedges | 0 | |
Derivative - freestanding derivatives, net | 0 | 0 |
Financial Liabilities [Abstract] | ||
Derivative - cash flow hedges | 0 | 0 |
Derivative - freestanding derivatives, net | 0 | 0 |
Recurring [Member] | Level 2 Inputs [Member] | ||
Marketable equity securities (Registered Mutual Funds) [Abstract] | ||
Domestic equity mutual funds | 0 | 0 |
International equity mutual funds | 0 | 0 |
Fixed income mutual funds | 0 | 0 |
Securities available-for-sale [Abstract] | ||
Agency Notes | 35,008 | 19,935 |
Corporate Securities | 42,720 | 28,596 |
Pass-through MBS issued by GSEs | 191,802 | 247,483 |
Agency CMOs | 272,477 | 254,981 |
Derivative - cash flow hedges | 1,081 | |
Derivative - freestanding derivatives, net | 18,475 | 1,362 |
Financial Liabilities [Abstract] | ||
Derivative - cash flow hedges | 30,504 | 7,718 |
Derivative - freestanding derivatives, net | 18,475 | 1,362 |
Recurring [Member] | Level 3 Inputs [Member] | ||
Marketable equity securities (Registered Mutual Funds) [Abstract] | ||
Domestic equity mutual funds | 0 | 0 |
International equity mutual funds | 0 | 0 |
Fixed income mutual funds | 0 | 0 |
Securities available-for-sale [Abstract] | ||
Agency Notes | 0 | 0 |
Corporate Securities | 0 | 0 |
Pass-through MBS issued by GSEs | 0 | 0 |
Agency CMOs | 0 | 0 |
Derivative - cash flow hedges | 0 | |
Derivative - freestanding derivatives, net | 0 | 0 |
Financial Liabilities [Abstract] | ||
Derivative - cash flow hedges | 0 | 0 |
Derivative - freestanding derivatives, net | 0 | 0 |
Nonrecurring [Member] | ||
Impaired Loans [Abstract] | ||
Fair value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTRUMENTS, Balance Sheet Groupings (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | $ 117,013 | $ 155,488 |
Loans, net | 5,401,890 | 5,312,097 |
Accrued interest receivable | 27,506 | 18,891 |
Financial Liabilities [Abstract] | ||
Savings, money market and checking accounts | 3,044,858 | 2,709,756 |
Certificates of Deposits ("CDs") | 1,393,554 | 1,572,869 |
Escrow and other deposits | 87,646 | 76,481 |
FHLBNY Advances | 1,017,300 | 1,092,250 |
Subordinated debt, net | 113,979 | 113,906 |
Other borrowings | 110,000 | |
Accrued interest payable | 1,961 | 4,570 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 117,013 | 155,488 |
Loans, net | 5,413,499 | 5,301,708 |
Accrued interest receivable | 27,506 | 18,891 |
Financial Liabilities [Abstract] | ||
Savings, money market and checking accounts | 3,044,858 | 2,709,756 |
Certificates of Deposits ("CDs") | 1,400,677 | 1,576,706 |
Escrow and other deposits | 87,646 | 76,481 |
FHLBNY Advances | 1,026,525 | 1,093,964 |
Subordinated debt, net | 109,379 | 114,769 |
Other borrowings | 110,000 | |
Accrued interest payable | 1,961 | 4,570 |
Fair Value [Member] | Level 1 Inputs [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 117,013 | 155,488 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Savings, money market and checking accounts | 3,044,858 | 2,709,756 |
Certificates of Deposits ("CDs") | 0 | 0 |
Escrow and other deposits | 87,646 | 76,481 |
FHLBNY Advances | 0 | 0 |
Subordinated debt, net | 0 | 0 |
Other borrowings | 110,000 | |
Accrued interest payable | 0 | 0 |
Fair Value [Member] | Level 2 Inputs [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 1,559 | 1,674 |
Financial Liabilities [Abstract] | ||
Savings, money market and checking accounts | 0 | 0 |
Certificates of Deposits ("CDs") | 1,400,677 | 1,576,706 |
Escrow and other deposits | 0 | 0 |
FHLBNY Advances | 1,026,525 | 1,093,964 |
Subordinated debt, net | 109,379 | 114,769 |
Other borrowings | 0 | |
Accrued interest payable | 1,961 | 4,570 |
Fair Value [Member] | Level 3 Inputs [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Loans, net | 5,413,499 | 5,301,708 |
Accrued interest receivable | 25,947 | 17,217 |
Financial Liabilities [Abstract] | ||
Savings, money market and checking accounts | 0 | 0 |
Certificates of Deposits ("CDs") | 0 | 0 |
Escrow and other deposits | 0 | 0 |
FHLBNY Advances | 0 | 0 |
Subordinated debt, net | 0 | 0 |
Other borrowings | 0 | |
Accrued interest payable | $ 0 | $ 0 |
RETIREMENT AND POSTRETIREMENT PLANS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Distributions to Retired Participants [Abstract] | ||||
Retirement distributions | $ 0 | $ 0 | $ 0 | $ 0 |
Retirement Plans [Member] | BMP, Employee and Outside Director Retirement Plans [Member] | ||||
Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 241 | 312 | 482 | 625 |
Expected return on assets | (428) | (382) | (856) | (764) |
Unrecognized past service liability | 0 | 0 | 0 | 0 |
Amortization of unrealized loss (gain) | 274 | 243 | 548 | 486 |
Net periodic cost | 87 | 173 | 174 | 347 |
Retirement Plans [Member] | Employee Retirement Plan [Member] | ||||
Retirement and Postretirement Plans [Abstract] | ||||
Planned contributions/benefit payments | 58 | 58 | ||
Actual contributions/benefit payments | 0 | 0 | ||
Retirement Plans [Member] | Outside Director Retirement Plan [Member] | ||||
Retirement and Postretirement Plans [Abstract] | ||||
Planned contributions/benefit payments | 263 | 263 | ||
Actual contributions/benefit payments | 56 | 112 | ||
Retirement Plans [Member] | Postretirement Plan [Member] | ||||
Retirement and Postretirement Plans [Abstract] | ||||
Planned contributions/benefit payments | 109 | 109 | ||
Actual contributions/benefit payments | 137 | 274 | ||
Retirement Plans [Member] | BMP Retirement Plan [Member] | ||||
Retirement and Postretirement Plans [Abstract] | ||||
Planned contributions/benefit payments | 569 | 569 | ||
Actual contributions/benefit payments | 57 | 95 | ||
Other Postretirement Plan [Member] | Postretirement Plan [Member] | ||||
Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 10 | 13 | 20 | 27 |
Expected return on assets | 0 | 0 | 0 | 0 |
Unrecognized past service liability | (2) | (2) | (4) | (4) |
Amortization of unrealized loss (gain) | 0 | (3) | 0 | (6) |
Net periodic cost | $ 8 | $ 8 | $ 16 | $ 17 |
STOCK-BASED COMPENSATION, Stock Option Awards (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Information Related to Stock Option Plans [Abstract] | ||||
Cash received for option exercise cost | $ 38 | $ 73 | ||
Stock Option Awards [Member] | ||||
Number of Options [Roll Forward] | ||||
Options outstanding, beginning of period (in shares) | 42,031 | |||
Options granted (in shares) | 0 | |||
Options expired (in shares) | (4,077) | |||
Options exercised (in shares) | (3,044) | |||
Options outstanding, end of period (in shares) | 34,910 | 34,910 | ||
Options vested and exercisable, end of period (in shares) | 34,910 | 34,910 | ||
Weighted-Average Exercise Price [Abstract] | ||||
Options outstanding, beginning of period (in dollars per share) | $ 14.63 | |||
Options granted (in dollars per share) | 0 | |||
Options expired (in dollars per share) | 12.75 | |||
Options exercised (in dollars per share) | 12.75 | |||
Options outstanding, end of period (in dollars per share) | $ 15.01 | 15.01 | ||
Options vested and exercisable. end of period (in dollars per share) | $ 15.01 | $ 15.01 | ||
Stock Options, Additional Disclosure [Abstract] | ||||
Options outstanding | 1 year 1 month 6 days | |||
Options vested and exercisable | 1 year 1 month 6 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Options outstanding | $ 0 | $ 0 | ||
Options vested and exercisable | 0 | 0 | ||
Information Related to Stock Option Plans [Abstract] | ||||
Cash received for option exercise cost | 38 | $ 73 | 38 | 73 |
Income tax benefit recognized on stock option exercises | 0 | 18 | 0 | 18 |
Intrinsic value of options exercised | $ 8 | $ 103 | $ 8 | $ 103 |
STOCK-BASED COMPENSATION, Restricted Stock Awards (Details) - Restricted Stock Awards [Member] - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Restricted Stock Awards [Abstract] | ||||
Unrecognized compensation cost | $ 3,620 | $ 3,620 | ||
Weighted average cost expected to be recognized period | 2 years 8 months 12 days | |||
Number of Shares [Roll Forward] | ||||
Unvested allocated shares outstanding, beginning of period (in shares) | 256,575 | |||
Shares granted (in shares) | 120,478 | |||
Shares vested (in shares) | (63,161) | |||
Shares forfeited (in shares) | (36,283) | |||
Unvested allocated shares outstanding, end of period (in shares) | 277,609 | 277,609 | ||
Weighted-Average Grant-Date Fair Value [Abstract] | ||||
Unvested allocated shares outstanding, beginning of period (in dollars per share) | $ 19.79 | |||
Shares granted (in dollars per share) | 13.93 | |||
Shares vested (in dollars per share) | 19.80 | |||
Shares forfeited (in dollars per share) | 17.93 | |||
Unvested allocated shares outstanding, end of period (in dollars per share) | $ 17.49 | $ 17.49 | ||
Information Related to Restricted Stock Awards [Abstract] | ||||
Compensation expense recognized | $ 406 | $ 354 | $ 867 | $ 643 |
Income tax benefit (expense) recognized on vesting of awards | $ (61) | $ 7 | $ (57) | $ 10 |
Certain Officers [Member] | Minimum [Member] | ||||
Restricted Stock Awards [Abstract] | ||||
Award vesting period | 3 years | |||
Certain Officers [Member] | Maximum [Member] | ||||
Restricted Stock Awards [Abstract] | ||||
Award vesting period | 4 years |
STOCK-BASED COMPENSATION, Performance Based Equity Awards (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Performance Based Equity Awards [Member] | ||||
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% | |||
Measurement period goals related to long term cash incentive payment plan award payment | 3 years | |||
Number of Shares [Roll Forward] | ||||
Shares granted (in shares) | 102,080 | |||
Shares vested (in shares) | 0 | |||
Shares forfeited (in shares) | (61,525) | |||
Expected aggregate share payout (in shares) | 147,697 | |||
Weighted-Average Grant-Date Fair Value [Abstract] | ||||
Shares granted (in dollars per share) | $ 9.96 | |||
Shares vested (in dollars per share) | 0 | |||
Shares forfeited (in dollars per share) | 15.22 | |||
Expected aggregate share payout (in dollars per share) | $ 13.75 | |||
Information Related to Stock Awards [Abstract] | ||||
Compensation expense recognized | $ (3) | $ 155 | $ 152 | $ 81 |
Income tax benefit (expense) recognized on vesting of awards | $ 0 | 7 | $ 0 | 10 |
Performance Based Equity Awards [Member] | Minimum [Member] | ||||
Number of Shares [Roll Forward] | ||||
Aggregate share payout, end of period (in shares) | 0 | 0 | ||
Weighted-Average Grant-Date Fair Value [Abstract] | ||||
Aggregate share payout, end of period (in dollars per share) | $ 0 | $ 0 | ||
Performance Based Equity Awards [Member] | Maximum [Member] | ||||
Number of Shares [Roll Forward] | ||||
Aggregate share payout, beginning of period (in shares) | 214,948 | |||
Aggregate share payout, end of period (in shares) | 255,503 | 255,503 | ||
Weighted-Average Grant-Date Fair Value [Abstract] | ||||
Aggregate share payout, beginning of period (in dollars per share) | $ 18.96 | |||
Aggregate share payout, end of period (in dollars per share) | $ 14.87 | $ 14.87 | ||
Sales Incentive Award Program [Member] | ||||
Performance Based Equity Awards [Abstract] | ||||
Award vesting period | 1 year | |||
Number of Shares [Roll Forward] | ||||
Shares granted (in shares) | 72,291 | |||
Shares vested (in shares) | (10,144) | |||
Shares forfeited (in shares) | (2,208) | |||
Expected aggregate share payout (in shares) | 79,335 | |||
Weighted-Average Grant-Date Fair Value [Abstract] | ||||
Shares granted (in dollars per share) | $ 13.32 | |||
Shares vested (in dollars per share) | 19.14 | |||
Shares forfeited (in dollars per share) | 19.14 | |||
Expected aggregate share payout (in dollars per share) | $ 13.83 | |||
Information Related to Stock Awards [Abstract] | ||||
Compensation expense recognized | $ 75 | (19) | $ 130 | 51 |
Income tax benefit (expense) recognized on vesting of awards | $ (49) | $ 0 | $ (43) | $ 0 |
Sales Incentive Award Program [Member] | Minimum [Member] | ||||
Number of Shares [Roll Forward] | ||||
Aggregate share payout, end of period (in shares) | 0 | 0 | ||
Weighted-Average Grant-Date Fair Value [Abstract] | ||||
Aggregate share payout, end of period (in dollars per share) | $ 0 | $ 0 | ||
Sales Incentive Award Program [Member] | Maximum [Member] | ||||
Number of Shares [Roll Forward] | ||||
Aggregate share payout, beginning of period (in shares) | 19,396 | |||
Aggregate share payout, end of period (in shares) | 79,335 | 79,335 | ||
Weighted-Average Grant-Date Fair Value [Abstract] | ||||
Aggregate share payout, beginning of period (in dollars per share) | $ 19.15 | |||
Aggregate share payout, end of period (in dollars per share) | $ 13.83 | $ 13.83 |
INCOME TAXES (Details) - Item |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
INCOME TAXES [Abstract] | ||||
Effective tax rate | 21.60% | 25.40% | 21.60% | 25.20% |
Number of significant and unusual income tax items in the period | 0 | 0 |
SUBSEQUENT EVENTS (Details) - $ / shares |
Jul. 01, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Merger agreement [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Subsequent Event [Member] | |||
Merger agreement [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | ||
Bridge Bancorp, Inc [Member] | Subsequent Event [Member] | |||
Merger agreement [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | ||
Common stock converted into right to receive shares (in shares) | 0.648 |
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