LOANS (Tables)

3 Months Ended

Mar. 31, 2020

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Schedule of the major classifications of loans

(In thousands)	March 31, 2020		December 31, 2019
Commercial real estate mortgage loans:
Owner occupied	$	529,877	$	531,088
Non-owner occupied		1,053,901		1,034,599
Multi-family mortgage loans		800,556		812,174
Residential real estate mortgage loans		485,492		493,144
Commercial, industrial and agricultural loans		758,683		679,444
Real estate construction and land loans		100,643		97,311
Installment/consumer loans		25,051		24,836
Total loans		3,754,203		3,672,596
Net deferred loan costs and fees		7,927		7,689
Total loans held for investment		3,762,130		3,680,285
Allowance for credit losses		(39,215)		(32,786)
Loans, net	$	3,722,915	$	3,647,499

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

	March 31, 2020
(In thousands)	2020		2019		2018		2017		2016		2015 and Prior		Revolving		Revolving-Term		Total
Commercial real estate owner occupied:
Pass	$	33,372	$	93,641	$	52,959	$	74,288	$	28,317	$	183,452	$	—	$	—	$	466,029
Watch		—		1,395		6,894		5,502		1,277		29,560		—		—		44,628
Special mention		—		—		—		10,974		3,577		3,748		—		—		18,299
Substandard		—		—		607		—		—		314		—		—		921
Total commercial real estate owner occupied		33,372		95,036		60,460		90,764		33,171		217,074		—		—		529,877
Commercial real estate non-owner occupied:
Pass		39,000		255,073		131,679		197,225		83,651		302,905		—		—		1,009,533
Watch		—		4,000		2,949		2,367		8,563		15,560		—		—		33,439
Special mention		—		—		—		—		—		291		—		—		291
Substandard		—		—		—		9,518		—		1,120		—		—		10,638
Total commercial real estate non-owner occupied		39,000		259,073		134,628		209,110		92,214		319,876		-		—		1,053,901
Multi-family:
Pass		38,911		293,962		41,294		116,995		146,302		125,591		—		—		763,055
Watch		—		—		—		8,237		15,801		13,063		—		—		37,101
Special mention		—		—		—		—		—		400		—		—		400
Substandard		—		—		—		—		—		—		—		—		—
Total multi-family		38,911		293,962		41,294		125,232		162,103		139,054		—		—		800,556
Residential real estate:
Pass		8,964		34,254		83,491		109,387		29,478		133,888		55,145		8,085		462,692
Watch		—		465		412		326		588		2,566		399		1,446		6,202
Special mention		—		783		770		—		—		9,883		399		777		12,612
Substandard		—		334		308		483		—		2,158		—		703		3,986
Total residential real estate		8,964		35,836		84,981		110,196		30,066		148,495		55,943		11,011		485,492
Commercial, industrial and agricultural:
Pass		30,490		80,671		48,302		39,169		27,080		40,486		385,474		7,061		658,733
Watch		1,599		2,417		15,041		4,043		812		2,827		34,752		3,440		64,931
Special mention		—		384		813		590		604		573		7,752		3,507		14,223
Substandard		—		—		612		4,987		—		9,530		998		4,669		20,796
Total commercial, industrial and agricultural		32,089		83,472		64,768		48,789		28,496		53,416		428,976		18,677		758,683
Real estate construction and land loans:
Pass		7,153		41,664		23,069		17,292		—		4,763		—		—		93,941
Watch		—		—		3,200		1,728		—		283		—		—		5,211
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		1,370		—		121		—		—		1,491
Total real estate construction and land loans		7,153		41,664		26,269		20,390		—		5,167		—		—		100,643
Installment/consumer loans
Pass		103		955		254		145		14		875		21,334		460		24,140
Watch		—		—		—		—		—		—		—		45		45
Special mention		—		—		—		—		—		—		—		101		101
Substandard		—		—		—		16		—		—		—		749		765
Total installment/consumer loans		103		955		254		161		14		875		21,334		1,355		25,051
Total Loans	$	159,592	$	809,998	$	412,654	$	604,642	$	346,064	$	883,957	$	506,253	$	31,043	$	3,754,203

	December 31, 2019
(In thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate:
Owner occupied	$	511,444	$	18,426	$	1,218	$	—	$	531,088
Non-owner occupied		1,022,208		—		12,391		—		1,034,599
Multi-family		811,770		404		—		—		812,174
Residential real estate		475,949		12,400		4,795		—		493,144
Commercial, industrial and agricultural		643,413		15,670		20,361		—		679,444
Real estate construction and land loans		95,530		—		1,781		—		97,311
Installment/consumer loans		23,976		103		757		—		24,836
Total loans	$	3,584,290	$	47,003	$	41,303	$	—	$	3,672,596

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

	March 31, 2020
					90+ Days		Non-accrual
	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		Non-accrual		Current		Total Loans
Commercial real estate:
Owner occupied	$	586	$	—	$	—	$	215	$	801	$	529,076	$	529,877
Non-owner occupied		603		771		—		512		1,886		1,052,015		1,053,901
Multi-family		—		—		—		—		—		800,556		800,556
Residential real estate		6,067		80		343		2,433		8,923		476,569		485,492
Commercial, industrial and agricultural		1,727		1,618		—		1,312		4,657		754,026		758,683
Real estate construction and land loans		—		1,370		—		121		1,491		99,152		100,643
Installment/consumer loans		114		5		—		16		135		24,916		25,051
Total loans	$	9,097	$	3,844	$	343	$	4,609	$	17,893	$	3,736,310	$	3,754,203

During the three months ended March 31, 2020, there was no interest earned on non-accrual loans and $15 thousand in accrued interest on non-accrual loans was reversed through interest income.

	December 31, 2019
					90+ Days		Non-accrual
	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		Non-accrual		Current		Total Loans
Commercial real estate:
Owner occupied	$	917	$	433	$	—	$	225	$	1,575	$	529,513	$	531,088
Non-owner occupied		98		—		—		512		610		1,033,989		1,034,599
Multi-family		—		—		—		—		—		812,174		812,174
Residential real estate		3,053		747		343		2,743		6,886		486,258		493,144
Commercial, industrial and agricultural		273		721		—		736		1,730		677,714		679,444
Real estate construction and land loans		—		—		—		123		123		97,188		97,311
Installment/consumer loans		124		—		—		30		154		24,682		24,836
Total loans	$	4,465	$	1,901	$	343	$	4,369	$	11,078	$	3,661,518	$	3,672,596

Schedule of loans receivable by class modified as troubled debt restructurings

	Modifications During the Three Months Ended March 31,
	2020					2019
		Pre-		Post-			Pre-		Post-
		Modification		Modification			Modification		Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
(Dollars in thousands)	Loans	Investment		Investment		Loans	Investment		Investment
Commercial real estate:
Owner occupied	—	$	—	$	—	—	$	—	$	—
Non-owner occupied	—		—		—	—		—		—
Residential real estate	—		—		—	—		—		—
Commercial, industrial and agricultural	1		1,037		1,037	3		3,209		3,209
Installment/consumer loans	—		—		—	—		—		—
Total	1	$	1,037	$	1,037	3	$	3,209	$	3,209

Schedule of individually impaired loans by class

							Three Months Ended
	December 31, 2019						March 31, 2019
			Unpaid		Related		Average		Interest
	Recorded		Principal		Allocated		Recorded		Income
(In thousands)	Investment		Balance		Allowance		Investment		Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,379	$	3,401	$	—	$	483	$	—
Non-owner occupied		2,296		2,296		—		2,786		25
Residential real estate:
Residential mortgages		—		—		—		—		—
Home equity		294		300		—		—		—
Commercial, industrial and agricultural:
Secured		494		494		—		1,482		16
Unsecured		8,863		8,863		—		5,617		85
Total with no related allowance recorded		15,326		15,354		—		10,368		126
With an allowance recorded:
Commercial real estate:
Owner occupied		—		—		—		—		—
Non-owner occupied		—		—		—		—		—
Residential real estate:
Residential mortgages		—		—		—		—		—
Home equity		—		—		—		—		—
Commercial, industrial and agricultural:
Secured		9,612		9,612		3,435		3,942		36
Unsecured		2,045		2,051		1,241		—		—
Total with an allowance recorded		11,657		11,663		4,676		3,942		36
Total:
Commercial real estate:
Owner occupied		3,379		3,401		—		483		—
Non-owner occupied		2,296		2,296		—		2,786		25
Residential real estate:
Residential mortgages		—		—		—		—		—
Home equity		294		300		—		—		—
Commercial, industrial and agricultural:
Secured		10,106		10,106		3,435		5,424		52
Unsecured		10,908		10,914		1,241		5,617		85
Total	$	26,983	$	27,017	$	4,676	$	14,310	$	162

Schedule of allowance of credit losses

	Three Months Ended March 31, 2020
					Residential		Commercial,		Real Estate
	Commercial				Real Estate		Industrial and		Construction		Installment/
	Real Estate		Multi-family		Mortgage		Agricultural		and Land		Consumer
(In thousands)	Mortgage Loans		Loans		Loans		Loans		Loans		Loans		Total
Allowance for credit losses:
Beginning balance, prior to adoption of CECL	$	12,150	$	4,829	$	1,882	$	12,583	$	1,066	$	276	$	32,786
Impact of adopting CECL		(7,712)		(3,589)		2,182		8,699		1,274		771		1,625
Charge-offs		(1)		—		—		(215)		—		—		(216)
Recoveries		—		—		1		19		—		—		20
Provision (credit) for credit losses		531		83		(40)		3,459		842		125		5,000
Ending balance	$	4,968	$	1,323	$	4,025	$	24,545	$	3,182	$	1,172	$	39,215

	Three Months Ended March 31, 2019
					Residential		Commercial,		Real Estate
	Commercial				Real Estate		Industrial and		Construction		Installment/
	Real Estate		Multi-family		Mortgage		Agricultural		and Land		Consumer
(In thousands)	Mortgage Loans		Loans		Loans		Loans		Loans		Loans		Total
Allowance for credit losses:
Beginning balance	$	10,792	$	2,566	$	3,935	$	12,722	$	1,297	$	106	$	31,418
Charge-offs		—		—		—		(242)		—		(4)		(246)
Recoveries		—		—		1		11		—		—		12
Provision (credit) for credit losses		307		(9)		(562)		582		229		53		600
Ending balance	$	11,099	$	2,557	$	3,374	$	13,073	$	1,526	$	155	$	31,784

ASU 2016-13 | Prior to adoption

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Schedule of allowance of credit losses

	December 31, 2019
					Residential		Commercial,		Real Estate
	Commercial				Real Estate		Industrial and		Construction		Installment/
	Real Estate		Multi-family		Mortgage		Agricultural		and Land		Consumer
(In thousands)	Mortgage Loans		Loans		Loans		Loans		Loans		Loans		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	4,676	$	—	$	—	$	4,676
Collectively evaluated for impairment		12,150		4,829		1,882		7,907		1,066		276		28,110
Loans acquired with deteriorated credit quality		—		—		—		—		—		—		—
Total allowance for loan losses	$	12,150	$	4,829	$	1,882	$	12,583	$	1,066	$	276	$	32,786
Loans:
Individually evaluated for impairment	$	5,675	$	—	$	294	$	21,014	$	—	$	—	$	26,983
Collectively evaluated for impairment		1,560,012		812,174		492,507		658,430		97,311		24,836		3,645,270
Loans acquired with deteriorated credit quality		—		—		343		—		—		—		343
Total loans	$	1,565,687	$	812,174	$	493,144	$	679,444	$	97,311	$	24,836	$	3,672,596