LOANS AND LEASES (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Schedule of composition of loans categorized by the type of loan

Loans outstanding, excluding those held for sale, by general ledger classification, as of September 30, 2023 and December 31, 2022, consisted of the following:

			% of					% of
	September 30,		Totals			December 31,		Total
(Dollars in thousands)	2023		Loans			2022		Loans
Residential mortgage	$	585,295		10.67	%	$	525,756		9.95	%
Multifamily mortgage		1,871,853		34.11			1,863,915		35.27
Commercial mortgage		622,469		11.34			624,625		11.82
Commercial loans (including equipment financing)		2,300,398		41.93			2,194,094		41.51
Commercial construction		14,803		0.27			4,042		0.07
Home equity lines of credit		34,411		0.63			34,496		0.65
Consumer loans, including fixed rate home equity loans		57,227		1.04			38,014		0.72
Other loans		265		0.01			304		0.01
Total loans	$	5,486,721		100.00	%	$	5,285,246		100.00	%

In determining an appropriate amount for the allowance, the Bank segments and aggregated the loan portfolio based on common characteristics. The following pool segments identified as of September 30, 2023 and December 31, 2022 are based on the CECL methodology:

			% of					% of
	September 30,		Totals			December 31,		Total
(Dollars in thousands)	2023		Loans			2022		Loans
Primary residential mortgage	$	585,753		10.68	%	$	527,784		9.99	%
Junior lien loan on residence		38,084		0.69			38,265		0.73
Multifamily property		1,871,853		34.14			1,863,915		35.29
Owner-occupied commercial real estate		259,304		4.73			272,009		5.15
Investment commercial real estate		1,050,295		19.15			1,044,125		19.77
Commercial and industrial		1,333,811		24.33			1,194,662		22.62
Lease financing		262,684		4.79			288,566		5.46
Construction		21,328		0.39			9,936		0.19
Consumer and other		60,048		1.10			42,319		0.80
Total loans		5,483,160		100.00	%		5,281,581		100.00	%
Net deferred costs		3,561					3,665
Total loans including net deferred costs	$	5,486,721				$	5,285,246

Schedule of recorded investment in nonaccrual and loans past due 90 days or over still on accrual

The following tables present the recorded investment in nonaccrual and loans past due 90 days or over still on accrual by class of loans as of September 30, 2023 and December 31, 2022:

	September 30, 2023
			Loans Past Due
			90 Days or Over
			And Still
(In thousands)	Nonaccrual		Accruing Interest
Primary residential mortgage	$	982	$	—
Multifamily property		18,868		—
Investment commercial real estate		9,903		—
Commercial and industrial		30,810		—
Lease financing		10,246		—
Total	$	70,809	$	—

	December 31, 2022
			Loans Past Due
			90 Days or Over
			And Still
(In thousands)	Nonaccrual		Accruing Interest
Primary residential mortgage	$	2,339	$	—
Investment commercial real estate		11,208		—
Commercial and industrial		3,662		—
Lease financing		1,765		—
Total	$	18,974	$	—

Schedule of aging of past due loans

The following tables present the aging of the recorded investment in past due loans as of September 30, 2023 and December 31, 2022 by class of loans, excluding nonaccrual loans:

	September 30, 2023
	30-59		60-89		90 Days or
	Days		Days		Greater		Total
(In thousands)	Past Due		Past Due		Past Due		Past Due
Primary residential mortgage	$	2,951	$	—	$	—	$	2,951
Junior lien loan on residence		124		—		—		124
Commercial and industrial		5,028		339		—		5,367
Lease financing		72		1,243		—		1,315
Consumer and other		21		2		—		23
Total	$	8,196	$	1,584	$	—	$	9,780

	December 31, 2022
	30-59		60-89		90 Days or
	Days		Days		Greater		Total
(In thousands)	Past Due		Past Due		Past Due		Past Due
Primary residential mortgage	$	1,145	$	—	$	—	$	1,145
Multifamily property		882		—		—		882
Commercial and industrial		4,884		681		—		5,565
Total	$	6,911	$	681	$	—	$	7,592

Schedule of credit risk profile of loans

The following is a summary of the credit risk profile of loans by internally assigned grade as of September 30, 2023 and December 31, 2022 based on originations for the periods indicated; the years represent the year of origination for non-revolving loans:

	Grade as of September 30, 2023 for Loans Originated During
											2018				Revolving-
(In thousands)	2023		2022		2021		2020		2019		and Prior		Revolving		Term		Total
Primary residential mortgage:
Pass	$	89,404	$	115,622	$	81,648	$	60,337	$	35,856	$	200,129	$	—	$	682	$	583,678
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		481		954		640		—		—		2,075
Doubtful		—		—		—		—		—		—		—		—		—
Total primary residential mortgages		89,404		115,622		81,648		60,818		36,810		200,769		—		682		585,753
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Junior lien loan on residence:
Pass		614		1,441		146		31		565		877		27,538		6,809		38,021
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		63		—		63
Doubtful		—		—		—		—		—		—		—		—		—
Total junior lien loan on residence		614		1,441		146		31		565		877		27,601		6,809		38,084
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Multifamily property:
Pass		46,423		479,017		655,955		120,588		212,127		318,990		7,892		—		1,840,992
Special mention		—		—		—		—		—		1,662		—		—		1,662
Substandard		—		1,572		9,715		—		10,385		7,527		—		—		29,199
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily property		46,423		480,589		665,670		120,588		222,512		328,179		7,892		—		1,871,853
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

	Grade as of September 30, 2023 for Loans Originated During
											2018				Revolving-
(In thousands)	2023		2022		2021		2020		2019		and Prior		Revolving		Term		Total
Owner-occupied commercial real estate:
Pass		4,359		23,721		39,796		20,273		11,882		128,380		18,407		10,805		257,623
Special mention		—		—		1,205		—		—		—		476		—		1,681
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total owner-occupied commercial real estate		4,359		23,721		41,001		20,273		11,882		128,380		18,883		10,805		259,304
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Investment commercial real estate:
Pass		98,211		174,684		152,680		58,153		143,704		319,715		24,335		30,409		1,001,891
Special mention		—		—		—		—		22,074		13,025		—		—		35,099
Substandard		—		9,903		—		—		3,402		—		—		—		13,305
Doubtful		—		—		—		—		—		—		—		—		—
Total investment commercial real estate		98,211		184,587		152,680		58,153		169,180		332,740		24,335		30,409		1,050,295
Current period gross charge-offs		—		1,199		—		—		—		—		—		—		1,199
Commercial and industrial:
Pass		198,769		251,376		200,681		49,834		54,381		19,177		488,724		29,334		1,292,276
Special mention		—		—		—		—		1,166		190		—		202		1,558
Substandard		1,212		21,443		1,594		1,872		1,036		2,530		8,082		2,208		39,977
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial and industrial		199,981		272,819		202,275		51,706		56,583		21,897		496,806		31,744		1,333,811
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Lease financing:
Pass		30,711		44,207		63,984		42,596		36,267		21,344		—		—		239,109
Special mention		1,243		9,980		540		—		1,441		124		—		—		13,328
Substandard		—		7,839		—		—		1,110		1,298		—		—		10,247
Doubtful		—		—		—		—		—		—		—		—		—
Total lease financing		31,954		62,026		64,524		42,596		38,818		22,766		—		—		262,684
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Construction:
Pass		—		—		—		—		1,393		—		15,972		3,963		21,328
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial construction loans		—		—		—		—		1,393		—		15,972		3,963		21,328
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Consumer and other loans:
Pass		—		—		318		164		—		4,708		50,103		4,755		60,048
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total consumer and other loans		—		—		318		164		—		4,708		50,103		4,755		60,048
Current period gross charge-offs		—		—		—		—		—		—		118		—		118

	Grade as of September 30, 2023 for Loans Originated During
											2018				Revolving-
(In thousands)	2023		2022		2021		2020		2019		and Prior		Revolving		Term		Total
Total:
Pass		468,491		1,090,068		1,195,208		351,976		496,175		1,013,320		632,971		86,757		5,334,966
Special mention		1,243		9,980		1,745		—		24,681		15,001		476		202		53,328
Substandard		1,212		40,757		11,309		2,353		16,887		11,995		8,145		2,208		94,866
Doubtful		—		—		—		—		—		—		—		—		—
Total Loans	$	470,946	$	1,140,805	$	1,208,262	$	354,329	$	537,743	$	1,040,316	$	641,592	$	89,167	$	5,483,160
Total Current Period Gross Charge-offs	$	—	$	1,199	$	—	$	—	$	—	$	—	$	118	$	—	$	1,317

	Grade as of December 31, 2022 for Loans Originated During
											2017				Revolving-
(In thousands)	2022		2021		2020		2019		2018		and Prior		Revolving		Term		Total
Primary residential mortgage:
Pass	$	118,864	$	87,312	$	62,540	$	37,902	$	27,209	$	190,834	$	—	$	691	$	525,352
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		547		1,044		141		700		—		—		2,432
Doubtful		—		—		—		—		—		—		—		—		—
Total primary residential mortgages		118,864		87,312		63,087		38,946		27,350		191,534		—		691		527,784
Junior lien loan on residence:
Pass		1,631		177		42		639		326		953		33,996		—		37,764
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		501		—		501
Doubtful		—		—		—		—		—		—		—		—		—
Total junior lien loan on residence		1,631		177		42		639		326		953		34,497		—		38,265
Multifamily property:
Pass		488,657		678,507		118,220		224,129		33,884		305,628		1,246		1,425		1,851,696
Special mention		—		—		—		—		—		1,696		—		—		1,696
Substandard		—		—		—		2,846		—		7,677		—		—		10,523
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily property		488,657		678,507		118,220		226,975		33,884		315,001		1,246		1,425		1,863,915
Owner-occupied commercial real estate:
Pass		25,315		43,916		20,679		12,244		22,422		126,237		608		20,588		272,009
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total owner-occupied commercial real estate		25,315		43,916		20,679		12,244		22,422		126,237		608		20,588		272,009
Investment commercial real estate:
Pass		189,829		154,715		59,444		155,995		93,330		305,219		6,590		23,487		988,609
Special mention		—		—		—		13,015		—		13,309		—		14,507		40,831
Substandard		11,208		—		—		3,477		—		—		—		—		14,685
Doubtful		—		—		—		—		—		—		—		—		—
Total investment commercial real estate		201,037		154,715		59,444		172,487		93,330		318,528		6,590		37,994		1,044,125
Commercial and industrial:
Pass		421,072		217,887		76,307		80,359		26,792		5,559		303,526		29,750		1,161,252
Special mention		14,405		—		826		—		193		—		258		—		15,682
Substandard		1,553		1,892		2,148		3,894		277		71		7,893		—		17,728
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial and industrial		437,030		219,779		79,281		84,253		27,262		5,630		311,677		29,750		1,194,662
Lease financing:
Pass		73,155		71,925		58,262		48,942		24,408		8,125		—		—		284,817
Special mention		1,984		—		—		—		—		—		—		—		1,984
Substandard		—		—		—		1,765		—		—		—		—		1,765
Doubtful		—		—		—		—		—		—		—		—		—
Total lease financing		75,139		71,925		58,262		50,707		24,408		8,125		—		—		288,566

	Grade as of December 31, 2022 for Loans Originated During
											2017				Revolving-
(In thousands)	2022		2021		2020		2019		2018		and Prior		Revolving		Term		Total
Construction:
Pass		—		—		—		1,439		—		—		4,064		4,433		9,936
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial construction loans		—		—		—		1,439		—		—		4,064		4,433		9,936
Consumer and other loans:
Pass		—		381		194		—		—		5,753		31,287		4,704		42,319
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total consumer and other loans		—		381		194		—		—		5,753		31,287		4,704		42,319
Total:
Pass		1,318,523		1,254,820		395,688		561,649		228,371		948,308		381,317		85,078		5,173,754
Special mention		16,389		—		826		13,015		193		15,005		258		14,507		60,193
Substandard		12,761		1,892		2,695		13,026		418		8,448		8,394		—		47,634
Doubtful		—		—		—		—		—		—		—		—		—
Total Loans	$	1,347,673	$	1,256,712	$	399,209	$	587,690	$	228,982	$	971,761	$	389,969	$	99,585	$	5,281,581

Summary of Information Related to Modification

The following tables provides information related to the modifications during the nine months ended September 30, 2023 by pool segment and type of concession granted:

	Interest Only Period Extension
	Nine Months Ended September 30, 2023
			% of Total
	Amortized		Class of
	Cost Basis		Financing
(Dollars in thousands)	at Period End		Receivable
Commercial and industrial	$	248		0.02	%
Total	$	248		0.02	%

	Interest Rate Reduction
	Nine Months Ended September 30, 2023
			% of Total
	Amortized		Class of
	Cost Basis		Financing
(Dollars in thousands)	at Period End		Receivable
Commercial and industrial	$	3,077		0.23	%
Total	$	3,077		0.23	%

Schedule of Loan Modifications, Subsequent Default, By Payment Status

The following table depicts the payment status of the loans that were modified to a borrower experiencing financial difficulties on or after January 1, 2023, the date we adopted ASU 2022-02, through September 30, 2023:

	Payment Status at September 30, 2023
			30-89 Days		90+ Days
(Dollars in thousands)	Current		Past Due		Past Due
Commercial and industrial	$	248	$	—	$	3,077
Total	$	248	$	—	$	3,077

Schedule of Loan modifications resulted in payment default

The following table presents loans by class modified that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at September 30, 2023:

	Amortized Cost Basis of Modified Loans
	That Subsequently Defaulted
	Nine Months Ended September 30, 2023
	Interest Only		Interest
(Dollars in thousands)	Period Extension		Rate Reduction
Commercial and industrial	$	248	$	—
Total	$	248	$	—

Schedule of loans modified as troubled debt restructurings

The following table presents loans by class modified as TDRs during the nine-month period ended September 30, 2022:

			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
(Dollars in thousands)	Loans		Investment		Investment
Investment commercial real estate		1	$	12,429	$	12,429
Total		1	$	12,429	$	12,429

The identification of the TDRs did not have a material impact on the allowance for credit losses.

The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at September 30, 2022:

	Number of		Recorded
(Dollars in thousands)	Loans		Investment
Primary residential mortgage		1	$	145
Total		1	$	145