ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2022

Credit Loss [Abstract]

Schedule of loan balances by segment and the corresponding balances in the allowance for loan losses

The following table presents the loan balances by segment, and the corresponding balances in the allowance as of June 30, 2022. For the period ended June 30, 2022, the allowance is based on the CECL methodology.

	June 30, 2022
			Ending ACL				Ending ACL
	Total		Attributable		Total		Attributable
	Individually		To Individually		Loans		To Loans				Total
	Evaluated		Evaluated		Collectively		Collectively		Total		Ending
(In thousands)	Loans		Loans		Evaluated		Evaluated		Loans		ACL
Primary residential mortgage	$	216	$	—	$	514,868	$	2,154	$	515,084	$	2,154
Junior lien loan on residence		—		—		39,010		151		39,010		151
Multifamily property		—		—		1,876,783		15,790		1,876,783		15,790
Owner-occupied commercial real estate		296		—		250,985		4,660		251,281		4,660
Investment commercial real estate		12,471		2,471		1,055,817		8,498		1,068,288		10,969
Commercial and industrial		244		—		1,019,631		20,998		1,019,875		20,998
Lease financing		—		—		314,947		3,352		314,947		3,352
Construction loans		—		—		20,758		359		20,758		359
Consumer and other loans		—		—		43,774		589		43,774		589
Total ACL	$	13,227	$	2,471	$	5,136,573	$	56,551	$	5,149,800	$	59,022

The following table presents the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance as of December 31, 2021. For the year ended December 31, 2021, the allowance was calculated based on the incurred loss methodology:

	December 31, 2021
	Total		Ending ALLL		Total		Ending ALLL
	Loans		Attributable		Loans		Attributable
	Individually		To Loans		Collectively		To Loans
	Evaluated		Individually		Evaluated		Collectively				Total
	For		Evaluated for		For		Evaluated for		Total		Ending
(In thousands)	Impairment		Impairment		Impairment		Impairment		Loans		ALLL
Primary residential mortgage	$	2,242	$	—	$	498,001	$	1,432	$	500,243	$	1,432
Home equity lines of credit		—		—		40,803		83		40,803		83
Junior lien loan on residence		18		—		3,173		5		3,191		5
Multifamily property		—		—		1,595,866		9,806		1,595,866		9,806
Owner-occupied commercial real estate		458		—		252,145		1,998		252,603		1,998
Investment commercial real estate		12,750		4,234		991,229		22,849		1,003,979		27,083
Commercial and industrial		2,584		—		989,748		17,509		992,332		17,509
Lease financing		—		—		345,868		3,440		345,868		3,440
Farmland/agricultural production		—		—		6,871		84		6,871		84
Commercial construction loans		—		—		20,174		42		20,174		42
Consumer and other loans		—		—		40,828		215		40,828		215
Total ALLL	$	18,052	$	4,234	$	4,784,706	$	57,463	$	4,802,758	$	61,697

Schedule of loans individually evaluated by segment

The following tables present collateral dependent loans individually evaluated by segment as of June 30, 2022:

	June 30, 2022
	Unpaid						Average
	Principal		Recorded		Related		Individually Evaluated
(In thousands)	Balance		Investment		Allowance		Loans
With no related allowance recorded:
Primary residential mortgage	$	261	$	216	$	—	$	280
Owner-occupied commercial real estate		329		296		—		324
Commercial and industrial		261		244		—		267
Total loans with no related allowance	$	851	$	756	$	—	$	871
With related allowance recorded:
Investment commercial real estate	$	12,500	$	12,471	$	2,471	$	12,573
Total loans with related allowance	$	12,500	$	12,471	$	2,471	$	12,573
Total loans individually evaluated	$	13,351	$	13,227	$	2,471	$	13,444

The following table presents, under previously applicable GAAP, loans individually evaluated for impairment as of December 31, 2021 (the average impaired loans on the following tables represent year to date impaired loans):

	December 31, 2021
	Unpaid						Average
	Principal		Recorded		Specific		Impaired
(In thousands)	Balance		Investment		Reserves		Loans
With no related allowance recorded:
Primary residential mortgage	$	2,453	$	2,242	$	—	$	1,818
Owner-occupied commercial real estate		492		458		—		540
Junior lien loan on residence		18		18		—		3
Commercial and industrial		4,549		2,584		—		3,153
Total loans with no related allowance	$	7,512	$	5,302	$	—	$	5,514
With related allowance recorded:
Investment commercial real estate	$	19,887	$	12,750	$	4,234	$	6,034
Total loans with related allowance	$	19,887	$	12,750	$	4,234	$	6,034
Total loans individually evaluated for impairment	$	27,399	$	18,052	$	4,234	$	11,548

Schedule of Activity in Allowance for Loan and Losses

The activity in the allowance for credit losses for the three months ended June 30, 2022 is summarized below:

	April 1,										June 30,
	2022										2022
	Beginning							Provision			Ending
(In thousands)	ACL		Charge-offs			Recoveries		(Credit) (1)			ACL
Primary residential mortgage	$	2,291	$	—		$	—	$	(137	)	$	2,154
Junior lien loan on residence		161		(3	)		—		(7	)		151
Multifamily property		15,017		—			—		773			15,790
Owner-occupied commercial real estate		4,774		—			—		(114	)		4,660
Investment commercial real estate		10,504		—			—		465			10,969
Commercial and industrial		21,192		—			—		(194	)		20,998
Lease financing		3,354		—			—		(2	)		3,352
Construction loans		468		—			—		(109	)		359
Consumer and other loans		625		(7	)		—		(29	)		589
Total ACL	$	58,386	$	(10	)	$	—	$	646		$	59,022

(1) Provision to roll forward the ACL excludes a provision of $803,000 for off-balance sheet commitments.

The activity in the allowance for credit losses for the six months ended June 30, 2022 is summarized below:

	December 31,													June 30,
	2021													2022
	Prior to adoption		Impact of								Provision			Ending
(In thousands)	of Topic 326		adopting Topic 326			Charge-offs			Recoveries		(Credit) (1)			ACL
Primary residential mortgage	$	1,510	$	717		$	—		$	—	$	(73	)	$	2,154
Junior lien loan on residence		88		83			(3	)		—		(17	)		151
Multifamily property		9,806		4,072			—			—		1,912			15,790
Owner-occupied commercial real estate		1,998		2,902			—			—		(240	)		4,660
Investment commercial real estate		27,083		(13,589	)		(250	)		—		(2,275	)		10,969
Commercial and industrial		17,509		(657	)		—			4		4,142			20,998
Lease financing		3,440		156			—			—		(244	)		3,352
Construction loans		48		361			—			—		(50	)		359
Consumer and other loans		215		419			(27	)		2		(20	)		589
Total ACL	$	61,697	$	(5,536	)	$	(280	)	$	6	$	3,135		$	59,022

(1) Provision to roll forward the ACL excludes a provision of $689,000 for off-balance sheet commitments.

For the accounting policy on the allowance for loan losses that was in effect prior to the adoption of Topic 326, refer to Note 1, Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year-ended December 31, 2021. The activity in the allowance for loan and lease losses for the three months and six months ended June 30, 2021 is summarized below:

	April 1,										June 30,
	2021										2021
	Beginning							Provision			Ending
(In thousands)	ALLL		Charge-offs			Recoveries		(Credit)			ALLL
Primary residential mortgage	$	2,776	$	(12	)	$	—	$	(597	)	$	2,167
Home equity lines of credit		198		—			76		(151	)		123
Junior lien loan on residence		16		—			—		(8	)		8
Multifamily property		10,427		—			—		188			10,615
Owner-occupied commercial real estate		2,864		—			—		(417	)		2,447
Investment commercial real estate		26,693		—			—		1,193			27,886
Commercial and industrial		20,125		(5,000	)		3		1,437			16,565
Lease financing		3,967		—			—		(692	)		3,275
Farmland/agricultural production		47		—			—		(4	)		43
Commercial construction loans		161		—			—		(2	)		159
Consumer and other loans		262		(5	)		7		(47	)		217
Total ALLL	$	67,536	$	(5,017	)	$	86	$	900		$	63,505

	January 1,										June 30,
	2021										2021
	Beginning							Provision			Ending
(In thousands)	ALLL		Charge-offs			Recoveries		(Credit)			ALLL
Primary residential mortgage	$	2,905	$	(12	)	$	—	$	(726	)	$	2,167
Home equity lines of credit		218		—			85		(180	)		123
Junior lien loan on residence		15		—			—		(7	)		8
Multifamily property		9,945		—			—		670			10,615
Owner-occupied commercial real estate		3,050		—			—		(603	)		2,447
Investment commercial real estate		27,713		—			—		173			27,886
Commercial and industrial		19,047		(5,000	)		10		2,508			16,565
Lease financing		3,936		—			—		(661	)		3,275
Farmland/agricultural production		43		—			—		—			43
Commercial construction loans		158		—			—		1			159
Consumer and other loans		279		(20	)		8		(50	)		217
Total ALLL	$	67,309	$	(5,032	)	$	103	$	1,125		$	63,505

Schedule of Activity in ACL for Off Balance Sheet Commitments

The following table presets the activity in the ACL for off balance sheet commitments for the six months ended June 30, 2022:

	December 31,
	2021
	Prior to adoption		Impact of		Provision		June 30, 2022
(In thousands)	of Topic 326		adopting Topic 326		(Credit)		Ending ACL
Off balance sheet commitments	$	—	$	302	$	689	$	991
Total ACL	$	—	$	302	$	689	$	991