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LOANS (Tables)
6 Months Ended
Jun. 30, 2016
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 June 30, 2016 and December 31, 2015, consisted of the following:

 

       % of       % of 
   June 30,   Totals   December 31,   Total 
(In thousands)  2016   Loans   2015   Loans 
Residential mortgage  $479,839    15.24%  $470,869    16.16%
Multifamily mortgage   1,501,915    47.70    1,416,775    48.63 
Commercial mortgage   459,744    14.60    413,118    14.18 
Commercial loans   576,169    18.30    512,886    17.60 
Construction loans           1,401    0.05 
Home equity lines of credit   63,188    2.01    52,649    1.81 
Consumer loans, including fixed                    
   rate home equity loans   67,614    2.14    45,044    1.55 
Other loans   430    0.01    500    0.02 
   Total loans  $3,148,899    100.00%  $2,913,242    100.00%

 

In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on federal call report codes. The following portfolio classes have been identified as of June 30, 2016 and December 31, 2015:

 

       % of       % of 
   June 31,   Totals   December 31,   Total 
(In thousands)  2016   Loans   2015   Loans 
Primary residential mortgage  $510,062    16.21%  $483,085    16.59%
Home equity lines of credit   63,188    2.01    52,804    1.81 
Junior lien loan on residence   10,476    0.33    11,503    0.39 
Multifamily property   1,501,915    47.72    1,416,775    48.66 
Owner-occupied commercial real estate   166,124    5.28    176,276    6.05 
Investment commercial real estate   642,530    20.41    568,849    19.54 
Commercial and industrial   179,892    5.72    154,295    5.30 
Secured by farmland/agricultural                    
   production   174    0.01    179    0.01 
Commercial construction loans   99        151    0.01 
Consumer and other loans   72,844    2.31    47,635    1.64 
   Total loans  $3,147,304    100.00%  $2,911,552    100.00%
Net deferred costs   1,595         1,690      
   Total loans including net deferred costs  $3,148,899        $2,913,242      

 

 

Schedule of loan balances by portfolio segment, based on impairment method, and the corresponding balances in the allowance for loan losses

The following tables present the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance for loan losses (ALLL) as of June 30, 2016 and December 31, 2015:

 

   June 30, 2016 
   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   ALL 
Primary residential                              
   mortgage  $13,374   $228   $496,688   $2,555   $510,062   $2,783 
Home equity lines                              
   of credit   150        63,038    223    63,188    223 
Junior lien loan                              
   on residence   166        10,310    19    10,476    19 
Multifamily                              
   property           1,501,915    11,639    1,501,915    11,639 
Owner-occupied                              
  commercial                              
   real estate   1,241        164,883    1,733    166,124    1,733 
Investment                              
   commercial                              
   real estate   11,488    219    631,042    9,402    642,530    9,621 
Commercial and                              
   industrial   224    133    179,668    2,818    179,892    2,951 
Secured by                              
   farmland and                              
   agricultural                              
   production           174    2    174    2 
Commercial                              
   construction           99    1    99    1 
Consumer and                              
   Other           72,844    247    72,844    247 
Total ALLL  $26,643   $580   $3,120,661   $28,639   $3,147,304   $29,219 

 

   December 31, 2015 
   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  $9,752   $291   $473,333   $2,006   $483,085   $2,297 
Home equity lines                              
   of credit   254        52,550    86    52,804    86 
Junior lien loan                              
   on residence   176        11,327    66    11,503    66 
Multifamily                              
   Property           1,416,775    11,813    1,416,775    11,813 
Owner-occupied                              
   Commercial                              
   real estate   1,272        175,004    1,679    176,276    1,679 
Investment                              
   commercial                              
   real estate   11,482    61    557,367    7,529    568,849    7,590 
Commercial and                              
   Industrial   171    138    154,124    2,071    154,295    2,209 
Secured by                              
   farmland and                              
   agricultural production                              
   production           179    2    179    2 
Commercial                              
   construction           151    2    151    2 
Consumer and                              
   Other           47,635    112    47,635    112 
Total ALLL  $23,107   $490   $2,888,445   $25,366   $2,911,552   $25,856 

 

The activity in the allowance for loan losses for the three months ended June 30, 2016 is summarized below:

   April 1,               June 30, 
   2016               2016 
   Beginning           Provision   Ending 
(In thousands)  ALLL   Charge-offs   Recoveries   (Credit)   ALLL 
Primary residential mortgage  $2,503   $(285)  $7   $558   $2,783 
Home equity lines of credit   133    (91)   6    175    223 
Junior lien loan on residence   13        53    (47)   19 
Multifamily property   11,631            8    11,639 
Owner-occupied commercial real estate   1,683            50    1,733 
Investment commercial real estate   8,527        4    1,090    9,621 
Commercial and industrial   2,691        8    252    2,951 
Secured by farmland and agricultural production   2                2 
Commercial construction   2            (1)   1 
Consumer and other loans   136    (4)       115    247 
Total ALLL  $27,321   $(380)  $78   $2,200   $29,219 

 

 

The activity in the allowance for loan losses for the six months ended June 30, 2016 is summarized below:

   January 1,               June 30, 
   2016               2016 
   Beginning           Provision   Ending 
(In thousands)  ALLL   Charge-offs   Recoveries   (Credit)   ALLL 
Primary residential mortgage  $2,297   $(298)  $21   $763   $2,783 
Home equity lines of credit   86    (91)   8    220    223 
Junior lien loan on residence   66        70    (117)   19 
Multifamily property   11,813            (174)   11,639 
Owner-occupied commercial real estate   1,679            54    1,733 
Investment commercial real estate   7,590    (258)   6    2,283    9,621 
Commercial and industrial   2,209    (3)   12    733    2,951 
Secured by farmland and agricultural production   2                2 
Commercial construction   2            (1)   1 
Consumer and other loans   112    (5)   1    139    247 
Total ALLL  $25,856   $(655)  $118   $3,900   $29,219 

 

The activity in the allowance for loan losses for the three months ended June 30, 2015 is summarized below:

   April 1,               June 30, 
   2015               2015 
   Beginning           Provision   Ending 
(In thousands)  ALLL   Charge-offs   Recoveries   (Credit)   ALLL 
Primary residential mortgage  $2,314   $(68)  $4   $159   $2,409 
Home equity lines of credit   97    (10)   1    25    113 
Junior lien loan on residence   71        10    (8)   73 
Multifamily property   8,738            (115)   8,623 
Owner-occupied commercial real estate   2,347            (61)   2,286 
Investment commercial real estate   6,135        4    1,640    7,779 
Commercial and industrial   1,011    (7)   21    564    1,589 
Secured by farmland and agricultural production   3            (1)   2 
Commercial construction   23            (21)   2 
Consumer and other loans   77    (4)   2    18    93 
Total ALLL  $20,816   $(89)  $42   $2,200   $22,969 

 

The activity in the allowance for loan losses for the six months ended June 30, 2015 is summarized below:

   January 1,               June 30, 
   2015               2015 
   Beginning           Provision   Ending 
(In thousands)  ALLL   Charge-offs   Recoveries   (Credit)   ALLL 
Primary residential mortgage  $2,923   $(111)  $70   $(473)  $2,409 
Home equity lines of credit   156    (110)   1    66    113 
Junior lien loan on residence   109        38    (74)   73 
Multifamily property   8,983            (360)   8,623 
Owner-occupied commercial real estate   1,547        11    728    2,286 
Investment commercial real estate   4,751        10    3,018    7,779 
Commercial and industrial   880    (7)   46    670    1,589 
Secured by farmland and agricultural production   4            (2)   2 
Commercial construction   31            (29)   2 
Consumer and other loans   96    (21)   12    6    93 
Total ALLL  $19,480   $(249)  $188   $3,550   $22,969 
Schedule of loans individually evaluated for impairment

   June 30, 2016 
   Unpaid           Average 
   Principal   Recorded   Specific   Impaired 
(In thousands)  Balance   Investment   Reserves   Loans 
With no related allowance recorded:                    
   Primary residential mortgage  $13,337   $11,512   $   $7,577 
   Owner-occupied commercial real estate   1,451    1,241        1,266 
   Investment commercial real estate   10,438    9,847        10,210 
   Commercial and industrial   231    91        6 
   Home equity lines of credit   439    150        217 
   Junior lien loan on residence   569    166        316 
                     
     Total loans with no related allowance  $26,465   $23,007   $   $19,592 
With related allowance recorded:                    
   Primary residential mortgage  $1,899   $1,862   $228   $1,875 
   Investment commercial real estate   1,657    1,641    219    1,242 
   Commercial and industrial   179    133    133    137 
     Total loans with related allowance  $3,735   $3,636   $580   $3,254 
Total loans individually evaluated for                    
   impairment  $30,200   $26,643   $580   $22,846 

 

   December 31, 2015 
   Unpaid           Average 
   Principal   Recorded   Specific   Impaired 
(In thousands)  Balance   Investment   Reserves   Loans 
With no related allowance recorded:                    
   Primary residential mortgage  $8,998   $7,782   $   $5,683 
   Owner-occupied commercial real estate   1,460    1,272        1,379 
   Investment commercial real estate   11,099    10,233        10,330 
   Commercial and industrial   63    33        112 
   Home equity lines of credit   258    254        229 
   Junior lien loan on residence   219    176        166 
   Consumer and other               1 
     Total loans with no related allowance  $22,097   $19,750   $   $17,900 
With related allowance recorded:                    
   Primary residential mortgage  $2,090   $1,970   $291   $1,894 
   Investment commercial real estate   1,249    1,249    61    1,266 
   Commercial and industrial   179    138    138    144 
     Total loans with related allowance  $3,518   $3,357   $490   $3,304 
Total loans individually evaluated for                    
   impairment  $25,615   $23,107   $490   $21,204 
Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual

   June 30, 2016 
       Loans Past Due 
       Over 90 Days 
       And Still 
(In thousands)  Nonaccrual   Accruing Interest 
Primary residential mortgage  $6,030   $ 
Home equity lines of credit   126     
Junior lien loan on residence   110     
Owner-occupied commercial real estate   1,241     
Investment commercial real estate   408     
Commercial and industrial   134     
Total  $8,049   $ 

 

   December 31, 2015 
       Loans Past Due 
       Over 90 Days 
       And Still 
(In thousands)  Nonaccrual   Accruing Interest 
Primary residential mortgage  $4,549   $ 
Home equity lines of credit   229     
Junior lien loan on residence   118     
Owner-occupied commercial real estate   1,272     
Investment commercial real estate   408     
Commercial and industrial   171     
Consumer and other        
Total  $6,747   $ 

 

Schedule of aging of past due loans

   June 30, 2016 
   30-59   60-89   Greater Than     
   Days   Days   90 Days   Total 
(In thousands)  Past Due   Past Due   Past Due   Past Due 
Primary residential mortgage  $4,352   $   $   $4,352 
Home equity lines of credit       157        157 
Investment commercial real estate   1,954            1,954 
Commercial and industrial       91        91 
Consumer and other   22            22 
   Total  $6,328   $248   $   $6,576 

 

   December 31, 2015 
   30-59   60-89   Greater Than     
   Days   Days   90 Days   Total 
(In thousands)  Past Due   Past Due   Past Due   Past Due 
Primary residential mortgage  $1,214   $157   $   $1,371 
Investment commercial real estate   772            772 
   Total  $1,986   $157   $   $2,143 
Schedule of the risk category of loans by class of loans

As of June 30, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

       Special         
(In thousands)  Pass   Mention   Substandard   Doubtful 
Primary residential mortgage  $495,876   $673   $13,513   $ 
Home equity lines of credit   63,038        150     
Junior lien loan on residence   10,310        166     
Multifamily property   1,499,558    1,950    407     
Owner-occupied commercial real estate   160,427    906    4,791     
Investment commercial real estate   606,571    4,127    31,832     
Commercial and industrial   174,237    5,430    225     
Farmland   174             
Commercial construction       99         
Consumer and other loans   72,844             
   Total  $3,083,035   $13,185   $51,084   $ 

 

As of December 31, 2015, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

       Special         
(In thousands)  Pass   Mention   Substandard   Doubtful 
Primary residential mortgage  $471,859   $1,332   $9,894   $ 
Home equity lines of credit   52,550        254     
Junior lien loan on residence   11,327        176     
Multifamily property   1,407,856    7,718    1,201     
Owner-occupied commercial real estate   170,420    928    4,928     
Investment commercial real estate   536,479    6,217    26,153     
Commercial and industrial   148,940    5,184    171     
Farmland   179             
Agricultural production                
Commercial construction       151         
Consumer and other loans   47,635             
   Total  $2,847,245   $21,530   $42,777   $ 
Schedule of loans modified as troubled debt restructurings

The following table presents loans by class modified as TDRs during the three month period ended June 30, 2016:

 

       Pre-Modification   Post-Modification 
       Outstanding   Outstanding 
   Number of   Recorded   Recorded 
(Dollars in thousands)  Contracts   Investment   Investment 
Primary residential mortgage   4   $3,424   $3,424 
Investment commercial real estate   1    79    79 
Commercial and industrial   1    91    91 
   Total   6   $3,594   $3,594 

 

The following table presents loans by class modified as TDRs during the six month period ended June 30, 2016:

 

       Pre-Modification   Post-Modification 
       Outstanding   Outstanding 
   Number of   Recorded   Recorded 
(Dollars in thousands)  Contracts   Investment   Investment 
Primary residential mortgage   6   $4,556   $4,556 
Investment commercial real estate   1    79    79 
Commercial and industrial   1    91    91 
   Total   8   $4,726   $4,726 

 

The identification of the troubled debt restructurings did not have a significant impact on the allowance for loan losses.

 

The following table presents loans by class modified as TDRs during the three and six month periods ended June 30, 2015:

 

       Pre-Modification   Post-Modification 
       Outstanding   Outstanding 
   Number of   Recorded   Recorded 
(Dollars in thousands)  Contracts   Investment   Investment 
Primary residential mortgage   2   $225   $225 
Owner-occupied real estate   1    767    767 
   Total   3   $992   $992 

 

There were no loans that were modified as TDRs for which there was a payment default, within twelve months of modification, during the three and six months ended June 30, 2016.

 

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default, within twelve months of modification, during the three and six month periods ended June 30, 2015

 

   Number of   Recorded 
(Dollars in thousands)  Contracts   Investment 
Primary residential mortgage   2   $532 
   Total   2   $532