LOANS (Tables)

9 Months Ended

Sep. 30, 2018

LOANS

Schedule of the major classifications of loans

(In thousands)	September 30, 2018		December 31, 2017
Commercial real estate mortgage loans	$	1,348,569	$	1,293,906
Multi-family mortgage loans		579,827		595,280
Residential real estate mortgage loans		516,995		464,264
Commercial, industrial and agricultural loans		608,723		616,003
Real estate construction and land loans		118,137		107,759
Installment/consumer loans		19,157		21,041
Total loans		3,191,408		3,098,253
Net deferred loan costs and fees		6,019		4,499
Total loans held for investment		3,197,427		3,102,752
Allowance for loan losses		(31,869)		(31,707)
Loans, net	$	3,165,558	$	3,071,045

Schedule of loans by class categorized by internally assigned credit risk grades

	September 30, 2018
(In thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate:
Owner occupied	$	479,536	$	812	$	17,979	$	—	$	498,327
Non-owner occupied		846,780		520		2,942		—		850,242
Multi-family		579,403		424		—		—		579,827
Residential real estate:
Residential mortgage		438,158		8,729		882		—		447,769
Home equity		67,047		1,006		1,173		—		69,226
Commercial and industrial:
Secured		95,164		6,306		16,910		—		118,380
Unsecured		477,039		7,476		5,828		—		490,343
Real estate construction and land loans		117,677		—		460		—		118,137
Installment/consumer loans		19,111		10		36		—		19,157
Total loans	$	3,119,915	$	25,283	$	46,210	$	—	$	3,191,408

	December 31, 2017
(In thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate:
Owner occupied	$	451,264	$	1,796	$	19,589	$	—	$	472,649
Non-owner occupied		808,612		8,056		4,589		—		821,257
Multi-family		595,280		—		—		—		595,280
Residential real estate:
Residential mortgage		393,029		4,854		290		—		398,173
Home equity		64,601		698		792		—		66,091
Commercial and industrial:
Secured		86,116		12,637		13,560		—		112,313
Unsecured		485,598		14,553		3,539		—		503,690
Real estate construction and land loans		107,440		—		319		—		107,759
Installment/consumer loans		21,020		16		5		—		21,041
Total loans	$	3,012,960	$	42,610	$	42,683	$	—	$	3,098,253

Schedule of the aging of the recorded investment in past due loans by class of loans

	September 30, 2018
					>90 Days		Nonaccrual
	30-59		60-89		Past Due		Including 90		Total Past
	Days		Days		And		Days or More		Due and
(In thousands)	Past Due		Past Due		Accruing		Past Due		Nonaccrual		Current		Total Loans
Commercial real estate:
Owner occupied	$	193	$	—	$	—	$	355	$	548	$	497,779	$	498,327
Non-owner occupied		223		—		—		—		223		850,019		850,242
Multi-family		—		—		—		—		—		579,827		579,827
Residential real estate:
Residential mortgages		2,014		204		299		39		2,556		445,213		447,769
Home equity		699		—		—		628		1,327		67,899		69,226
Commercial and industrial:
Secured		887		141		—		227		1,255		117,125		118,380
Unsecured		1,129		106		—		506		1,741		488,602		490,343
Real estate construction and land loans		—		—		—		152		152		117,985		118,137
Installment/consumer loans		12		193		—		37		242		18,915		19,157
Total loans	$	5,157	$	644	$	299	$	1,944	$	8,044	$	3,183,364	$	3,191,408

	December 31, 2017
					>90 Days		Nonaccrual
	30-59		60-89		Past Due		Including 90		Total Past
	Days		Days		And		Days or More		Due and
(In thousands)	Past Due		Past Due		Accruing		Past Due		Nonaccrual		Current		Total Loans
Commercial real estate:
Owner occupied	$	284	$	—	$	175	$	2,205	$	2,664	$	469,985	$	472,649
Non-owner occupied		—		—		1,163		—		1,163		820,094		821,257
Multi-family		—		—		—		—		—		595,280		595,280
Residential real estate:
Residential mortgages		2,074		398		—		401		2,873		395,300		398,173
Home equity		329		—		271		161		761		65,330		66,091
Commercial and industrial:
Secured		113		41		225		570		949		111,364		112,313
Unsecured		18		35		—		3,618		3,671		500,019		503,690
Real estate construction and land loans		—		281		—		—		281		107,478		107,759
Installment/consumer loans		36		5		—		—		41		21,000		21,041
Total loans	$	2,854	$	760	$	1,834	$	6,955	$	12,403	$	3,085,850	$	3,098,253

Schedule of individually impaired loans by class

							Three Months Ended				Nine Months Ended
	September 30, 2018						September 30, 2018				September 30, 2018
			Unpaid		Related		Average		Interest		Average		Interest
	Recorded		Principal		Allocated		Recorded		Income		Recorded		Income
(In thousands)	Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	277	$	284	$	—	$	268	$	—	$	151	$	—
Non-owner occupied		2,063		2,063		—		1,763		10		1,366		18
Residential real estate:
Residential mortgages		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Commercial and industrial:
Secured		8,076		8,076		—		8,086		57		8,130		171
Unsecured		5,134		5,134		—		5,143		42		5,084		118
Total with no related allowance recorded	$	15,550	$	15,557	$	—	$	15,260	$	109	$	14,731	$	307
With an allowance recorded:
Commercial real estate:
Owner occupied	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Non-owner occupied		—		—		—		—		—		—		—
Residential real estate:
Residential mortgages		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Commercial and industrial:
Secured		—		—		—		—		—		—		—
Unsecured		—		—		—		—		—		—		—
Total with an allowance recorded	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total:
Commercial real estate:
Owner occupied	$	277	$	284	$	—	$	268	$	—	$	151	$	—
Non-owner occupied		2,063		2,063		—		1,763		10		1,366		18
Residential real estate:
Residential mortgages		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Commercial and industrial:
Secured		8,076		8,076		—		8,086		57		8,130		171
Unsecured		5,134		5,134		—		5,143		42		5,084		118
Total	$	15,550	$	15,557	$	—	$	15,260	$	109	$	14,731	$	307

							Three Months Ended				Nine Months Ended
	December 31, 2017						September 30, 2017				September 30, 2017
			Unpaid		Related		Average		Interest		Average		Interest
	Recorded		Principal		Allocated		Recorded		Income		Recorded		Income
(In thousands)	Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	2,073	$	2,073	$	—	$	—	$	—	$	—	$	—
Non-owner occupied		9,089		9,089		—		8,906		100		6,352		298
Residential real estate:
Residential mortgages		—		—		—		—		—		—		—
Home equity		100		100		—		—		—		—		—
Commercial and industrial:
Secured		7,368		8,013		—		3,030		5		1,459		66
Unsecured		2,154		2,408		—		342		4		367		12
Total with no related allowance recorded	$	20,784	$	21,683	$	—	$	12,278	$	109	$	8,178	$	376
With an allowance recorded:
Commercial real estate:
Owner occupied	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Non-owner occupied		—		—		—		—		—		—		—
Residential real estate:
Residential mortgages		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Commercial and industrial:
Secured		—		—		—		1,216		6		540		6
Unsecured		1,708		3,235		1,708		3,294		105		1,098		106
Total with an allowance recorded	$	1,708	$	3,235	$	1,708	$	4,510	$	111	$	1,638	$	112
Total:
Commercial real estate:
Owner occupied	$	2,073	$	2,073	$	—	$	—	$	—	$	—	$	—
Non-owner occupied		9,089		9,089		—		8,906		100		6,352		298
Residential real estate:
Residential mortgages		—		—		—		—		—		—		—
Home equity		100		100		—		—		—		—		—
Commercial and industrial:
Secured		7,368		8,013		—		4,246		11		1,999		72
Unsecured		3,862		5,643		1,708		3,636		109		1,465		118
Total	$	22,492	$	24,918	$	1,708	$	16,788	$	220	$	9,816	$	488

Schedule of activity in the accretable yield for the purchased credit impaired loans

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2018		2017		2018		2017
Balance at beginning of period	$	1,112	$	3,966	$	2,151	$	6,915
Accretion		(354)		(1,067)		(1,656)		(3,970)
Reclassification (to) from nonaccretable difference during the period		(172)		(362)		91		(408)
Accretable discount at end of period	$	586	$	2,537	$	586	$	2,537