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LOANS (Tables)
 9 Months Ended
Sep. 30, 2017
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, 2017 and December 31, 2016, consisted of the following:

 

       % of       % of 
   September 30,   Totals   December 31,   Total 
(In thousands)  2017   Loans   2016   Loans 
Residential mortgage  $602,775    16.44%  $527,370    15.92%
Multifamily mortgage   1,441,852    39.32    1,459,594    44.07 
Commercial mortgage   625,466    17.05    551,233    16.65 
Commercial loans   845,831    23.06    636,714    19.23 
Construction loans   —    —    1,405    0.04 
Home equity lines of credit   68,787    1.88    65,682    1.98 
Consumer loans, including fixed                    
   rate home equity loans   81,671    2.23    69,654    2.10 
Other loans   815    0.02    492    0.01 
   Total loans  $3,667,197    100.00%  $3,312,144    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 September 30, 2017 and December 31, 2016:

 

       % of       % of 
   September 30,   Totals   December 31,   Total 
(In thousands)  2017   Loans   2016   Loans 
Primary residential mortgage  $631,632    17.23%  $557,970    16.86%
Home equity lines of credit   68,787    1.88    65,683    1.98 
Junior lien loan on residence   7,082    0.19    9,206    0.28 
Multifamily property   1,441,852    39.34    1,459,594    44.09 
Owner-occupied commercial real estate   253,605    6.92    176,123    5.32 
Investment commercial real estate   876,282    23.91    752,258    22.73 
Commercial and industrial   257,124    7.01    213,983    6.47 
Lease Financing   36,184    0.99    —    — 
Farmland/agricultural production   162    0.01    169    0.01 
Commercial construction loans   93    0.01    1,497    0.04 
Consumer and other loans   92,055    2.51    73,621    2.22 
   Total loans  $3,664,858    100.00%  $3,310,104    100.00%
Net deferred costs   2,339         2,040      
   Total loans including net deferred costs  $3,667,197        $3,312,144      

 
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 and lease losses (ALLL) as of September 30, 2017 and December 31, 2016:

 

   September 30, 2017 
   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  $12,161   $572   $619,471   $3,772   $631,632   $4,344 
Home equity lines                              
   of credit   27    —    68,760    229    68,787    229 
Junior lien loan                              
   on residence   98    —    6,984    13    7,082    13 
Multifamily                              
   property   —    —    1,441,852    11,246    1,441,852    11,246 
Owner-occupied                              
  commercial                              
   real estate   1,576    —    252,029    2,270    253,605    2,270 
Investment                              
   commercial                              
   real estate   11,130    205    865,152    11,752    876,282    11,957 
Commercial and                              
   industrial   54    54    257,070    5,181    257,124    5,235 
Lease financing   —    —    36,184    275    36,184    275 
Secured by                              
   farmland and                              
   agricultural                              
   production   —    —    162    2    162    2 
Commercial                              
   construction   —    —    93    1    93    1 
Consumer and                              
   other   —    —    92,055    343    92,055    343 
Total ALLL  $25,046   $831   $3,639,812   $35,084   $3,664,858   $35,915 

 

   December 31, 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   ALLL 
Primary residential                              
  mortgage  $15,814   $456   $542,156   $3,210   $557,970   $3,666 
Home equity lines                              
   of credit   53    —    65,630    233    65,683    233 
Junior lien loan                              
   on residence   229    —    8,977    16    9,206    16 
Multifamily                              
   Property   —    —    1,459,594    11,192    1,459,594    11,192 
Owner-occupied                              
   Commercial                              
   real estate   1,486    —    174,637    1,774    176,123    1,774 
Investment                              
   commercial                              
   real estate   11,335    214    740,923    10,695    752,258    10,909 
Commercial and                              
   Industrial   154    154    213,829    4,010    213,983    4,164 
Secured by                              
   farmland and                              
   agricultural production                              
   production   —    —    169    2    169    2 
Commercial                              
   construction   —    —    1,497    9    1,497    9 
Consumer and                              
   Other   —    —    73,621    243    73,621    243 
Total ALLL  $29,071   $824   $3,281,033   $31,384   $3,310,104   $32,208 

 
Schedule of loans individually evaluated for impairment

The following tables present loans individually evaluated for impairment by class of loans as of September 30, 2017 and December 31, 2016 (The average impaired loans on the following tables represent year to date impaired loans.):

 

   September 30, 2017 
   Unpaid           Average 
   Principal   Recorded   Specific   Impaired 
(In thousands)  Balance   Investment   Reserves   Loans 
With no related allowance recorded:                    
   Primary residential mortgage  $9,998   $8,820   $—   $11,329 
   Owner-occupied commercial real estate   1,756    1,576    —    1,467 
   Investment commercial real estate   9,601    9,537    —    10,035 
   Home equity lines of credit   29    27    —    42 
   Junior lien loan on residence   156    98    —    96 
     Total loans with no related allowance  $21,541   $20,058   $—   $22,969 
With related allowance recorded:                    
   Primary residential mortgage  $4,159   $3,341   $572   $1,296 
   Investment commercial real estate   1,609    1,593    205    1,202 
   Commercial and industrial   110    54    54    79 
     Total loans with related allowance  $5,878   $4,988   $831   $2,577 
Total loans individually evaluated for                    
   Impairment  $27,419   $25,046   $831   $25,546 

 

   December 31, 2016 
   Unpaid           Average 
   Principal   Recorded   Specific   Impaired 
(In thousands)  Balance   Investment   Reserves   Loans 
With no related allowance recorded:                    
   Primary residential mortgage  $16,015   $14,090   $—   $10,038 
   Owner-occupied commercial real estate   1,597    1,486    —    1,450 
   Investment commercial real estate   9,711    9,711    —    9,974 
   Home equity lines of credit   56    53    —    143 
   Junior lien loan on residence   280    229    —    339 
     Total loans with no related allowance  $27,659   $25,569   $—   $21,944 
With related allowance recorded:                    
   Primary residential mortgage  $1,787   $1,724   $456   $1,678 
   Investment commercial real estate   1,640    1,624    214    1,642 
   Commercial and industrial   204    154    154    145 
     Total loans with related allowance  $3,631   $3,502   $824   $3,465 
Total loans individually evaluated for                    
   impairment  $31,290   $29,071   $824   $25,409 

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

The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2017 and December 31, 2016:

   September 30, 2017 
       Loans Past Due 
       Over 90 Days 
       And Still 
(In thousands)  Nonaccrual   Accruing Interest 
Primary residential mortgage  $8,318   $— 
Home equity lines of credit   6    — 
Junior lien loan on residence   98    — 
Owner-occupied commercial real estate   1,576    — 
Investment commercial real estate   5,315    — 
Commercial and industrial   54    — 
Total  $15,367   $— 

 

   December 31, 2016 
       Loans Past Due 
       Over 90 Days 
       And Still 
(In thousands)  Nonaccrual   Accruing Interest 
Primary residential mortgage  $9,071   $— 
Home equity lines of credit   30    — 
Junior lien loan on residence   115    — 
Owner-occupied commercial real estate   1,486    — 
Investment commercial real estate   408    — 
Commercial and industrial   154    — 
Total  $11,264   $— 

 
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, 2017 and December 31, 2016 by class of loans, excluding nonaccrual loans:

   September 30, 2017 
   30-59   60-89   Greater Than     
   Days   Days   90 Days   Total 
(In thousands)  Past Due   Past Due   Past Due   Past Due 
Primary residential mortgage  $589   $—   $—   $589 
   Total  $589   $—   $—   $589 

 

     
   December 31, 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  $620   $480   $—   $1,100 
Junior lien loan on residence   —    25    —    25 
Owner-occupied commercial real estate   209    —    —    209 
Commercial and industrial   22    —    —    22 
   Total  $851   $505   $—   $1,356 
                     

 
Schedule of the risk category of loans by class of loans

As of September 30, 2017, 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  $618,544   $795   $12,293   $— 
Home equity lines of credit   68,760    —    27    — 
Junior lien loan on residence   6,984    —    98    — 
Multifamily property   1,424,637    15,381    1,834    — 
Owner-occupied commercial real estate   248,504    —    5,101    — 
Investment commercial real estate   847,966    6,233    22,083    — 
Commercial and industrial   249,323    6,991    810    — 
Lease financing   36,184    —    —    — 
Farmland   162    —    —    — 
Commercial construction   —    93    —    — 
Consumer and other loans   90,131    —    1,924    — 
   Total  $3,591,195   $29,493   $44,170   $— 

 

As of December 31, 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  $541,359   $660   $15,951   $— 
Home equity lines of credit   65,630    —    53    — 
Junior lien loan on residence   8,977    —    229    — 
Multifamily property   1,456,328    2,867    399    — 
Owner-occupied commercial real estate   170,851    —    5,272    — 
Investment commercial real estate   724,203    5,116    22,939    — 
Commercial and industrial   208,617    4,411    955    — 
Secured by farmland and agricultural   169    —    —    — 
Commercial construction   1,400    97    —    — 
Consumer and other loans   73,621    —    —    — 
   Total  $3,251,155   $13,151   $45,798   $— 

 
Schedule of Activity in Allowance for Loan and Lease Losses

The activity in the allowance for loan and lease losses for the three months ended September 30, 2017 is summarized below:

   July 1,               September 30, 
   2017               2017 
   Beginning           Provision   Ending 
(In thousands)  ALLL   Charge-offs   Recoveries   (Credit)   ALLL 
Primary residential mortgage  $4,223   $(261)  $59   $323   $4,344 
Home equity lines of credit   211    —    2    16    229 
Junior lien loan on residence   14    —    6    (7)   13 
Multifamily property   11,606    —    —    (360)   11,246 
Owner-occupied commercial real estate   2,147    (30)   —    153    2,270 
Investment commercial real estate   11,727    —    1    229    11,957 
Commercial and industrial   5,333    —    9    (107)   5,235 
Lease financing   178    —    —    97    275 
Secured by farmland and agricultural   2    —    —    —    2 
Commercial construction   1    —    —    —    1 
Consumer and other loans   309    (24)   2    56    343 
Total ALLL  $35,751   $(315)  $79   $400   $35,915 

 

The activity in the allowance for loan and lease losses for the nine months ended September 30, 2017 is summarized below:

   January 1,               September 30, 
   2017               2017 
   Beginning           Provision   Ending 
(In thousands)  ALLL   Charge-offs   Recoveries   (Credit)   ALLL 
Primary residential mortgage  $3,666   $(591)  $128   $1,141   $4,344 
Home equity lines of credit   233    (23)   61    (42)   229 
Junior lien loan on residence   16    (57)   19    35    13 
Multifamily property   11,192    —    —    54    11,246 
Owner-occupied commercial real estate   1,774    (30)   —    526    2,270 
Investment commercial real estate   10,909    —    23    1,025    11,957 
Commercial and industrial   4,164    (25)   61    1,035    5,235 
Lease financing   —    —    —    275    275 
Secured by farmland and agricultural   2    —    —    —    2 
Commercial construction   9    —    —    (8)   1 
Consumer and other loans   243    (62)   3    159    343 
Total ALLL  $32,208   $(788)  $295   $4,200   $35,915 

 

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

   July 1,               September 30, 
   2016               2016 
   Beginning           Provision   Ending 
(In thousands)  ALLL   Charge-offs   Recoveries   (Credit)   ALLL 
Primary residential mortgage  $2,783   $(729)  $4   $972   $3,030 
Home equity lines of credit   223    —    3    (2)   224 
Junior lien loan on residence   19    —    2    (3)   18 
Multifamily property   11,639    —    —    204    11,843 
Owner-occupied commercial real estate   1,733    —    —    90    1,823 
Investment commercial real estate   9,621    —    2    231    9,854 
Commercial and industrial   2,951    (4)   8    613    3,568 
Secured by farmland and agricultural production   2    —    —    —    2 
Commercial construction   1    —    —    3    4 
Consumer and other loans   247    —    11    (8)   250 
Total ALLL  $29,219   $(733)  $30   $2,100   $30,616 

 

The activity in the allowance for loan and lease losses for the nine months ended September 30, 2016 is summarized below:

   January 1,               September 30, 
   2016               2016 
   Beginning           Provision   Ending 
(In thousands)  ALLL   Charge-offs   Recoveries   (Credit)   ALLL 
Primary residential mortgage  $2,297   $(1,027)  $25   $1,735   $3,030 
Home equity lines of credit   86    (91)   11    218    224 
Junior lien loan on residence   66    —    72    (120)   18 
Multifamily property   11,813    —    —    30    11,843 
Owner-occupied commercial real estate   1,679    —    —    144    1,823 
Investment commercial real estate   7,590    (258)   8    2,514    9,854 
Commercial and industrial   2,209    (7)   20    1,346    3,568 
Secured by farmland and agricultural production   2    —    —    —    2 
Commercial construction   2    —    —    2    4 
Consumer and other loans   112    (5)   12    131    250 
Total ALLL  $25,856   $(1,388)  $148   $6,000   $30,616 

 
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, 2017:

       Pre-Modification   Post-Modification 
       Outstanding   Outstanding 
   Number of   Recorded   Recorded 
(Dollars in thousands)  Contracts   Investment   Investment 
Primary residential mortgage   5   $1,148   $1,148 
   Total   5   $1,148   $1,148 

 

The identification of the TDRs did not have a significant impact on the allowance for loan and lease losses.

 

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

       Pre-Modification   Post-Modification 
       Outstanding   Outstanding 
   Number of   Recorded   Recorded 
(Dollars in thousands)  Contracts   Investment   Investment 
Primary residential mortgage   1   $368   $368 
   Total   1   $368   $368 

 

The following table presents loans by class modified as TDRs during the nine-month period ended September 30, 2016:

 

       Pre-Modification   Post-Modification 
       Outstanding   Outstanding 
   Number of   Recorded   Recorded 
(Dollars in thousands)  Contracts   Investment   Investment 
Primary residential mortgage   7   $4,924   $4,924 
Junior lien on residence   1    66    66 
Investment commercial real estate   1    79    79 
   Total   9   $5,069   $5,069