LOANS (Tables)

6 Months Ended

Jun. 30, 2020

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

Schedule of the major classifications of loans

(In thousands)	June 30, 2020		December 31, 2019
Commercial real estate mortgage loans:
Owner occupied	$	528,118	$	531,088
Non-owner occupied		1,064,623		1,034,599
Multi-family mortgage loans		844,066		812,174
Residential real estate mortgage loans		469,183		493,144
Commercial, industrial and agricultural loans		1,625,651		679,444
Real estate construction and land loans		81,516		97,311
Installment/consumer loans		24,953		24,836
Total loans		4,638,110		3,672,596
Net deferred loan (fees) costs		(17,282)		7,689
Total loans held for investment		4,620,828		3,680,285
Allowance for credit losses		(43,401)		(32,786)
Loans, net	$	4,577,427	$	3,647,499

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

The following tables represent loans categorized by internally assigned risk grades as of June 30, 2020 and December 31, 2019. In the June 30, 2020 table, the years noted represent the year of origination for non-revolving loans.

	June 30, 2020
(In thousands)	2020		2019		2018		2017		2016		2015 and Prior		Revolving		Revolving-Term		Total
Commercial real estate owner occupied:
Pass	$	50,692	$	92,079	$	52,528	$	67,356	$	28,019	$	169,380	$	—	$	—	$	460,054
Watch		761		1,388		6,884		11,003		1,263		27,354		—		—		48,653
Special mention		—		—		—		11,425		3,535		3,550		—		—		18,510
Substandard		—		—		603		—		—		298		—		—		901
Total commercial real estate owner occupied		51,453		93,467		60,015		89,784		32,817		200,582		—		—		528,118
Commercial real estate non-owner occupied:
Pass		84,516		254,026		129,900		195,406		60,157		291,068		—		—		1,015,073
Watch		—		4,000		2,949		2,348		14,920		14,428		—		—		38,645
Special mention		—		—		—		—		—		291		—		—		291
Substandard		—		—		—		9,518		—		1,096		—		—		10,614
Total commercial real estate non-owner occupied		84,516		258,026		132,849		207,272		75,077		306,883		—		—		1,064,623
Multi-family:
Pass		87,165		293,188		41,121		116,556		143,747		125,006		—		—		806,783
Watch		—		—		—		8,192		15,711		12,984		—		—		36,887
Special mention		—		—		—		—		—		396		—		—		396
Substandard		—		—		—		—		—		—		—		—		—
Total multi-family		87,165		293,188		41,121		124,748		159,458		138,386		—		—		844,066
Residential real estate:
Pass		12,579		32,911		81,473		102,888		28,647		125,921		53,274		8,958		446,651
Watch		—		465		410		324		577		2,397		—		1,466		5,639
Special mention		—		1,113		766		—		—		5,750		798		729		9,156
Substandard		—		—		306		482		—		6,248		—		701		7,737
Total residential real estate		12,579		34,489		82,955		103,694		29,224		140,316		54,072		11,854		469,183
Commercial, industrial and agricultural:
Pass		993,996		77,773		46,573		36,174		25,748		37,948		298,735		7,323		1,524,270
Watch		5,284		2,318		14,770		3,251		413		2,718		37,069		462		66,285
Special mention		—		383		760		818		548		764		8,798		3,042		15,113
Substandard		—		—		368		5,081		—		9,519		—		5,015		19,983
Total commercial, industrial and agricultural		999,280		80,474		62,471		45,324		26,709		50,949		344,602		15,842		1,625,651
Real estate construction and land loans:
Pass		9,090		34,264		8,662		17,940		—		4,674		—		—		74,630
Watch		—		—		3,950		1,560		—		279		—		—		5,789
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		978		—		119		—		—		1,097
Total real estate construction and land loans		9,090		34,264		12,612		20,478		—		5,072		—		—		81,516
Installment/consumer loans
Pass		457		942		248		128		12		864		20,985		414		24,050
Watch		—		—		—		—		—		—		—		45		45
Special mention		—		—		—		—		—		—		—		100		100
Substandard		—		—		—		9		—		—		—		749		758
Total installment/consumer loans		457		942		248		137		12		864		20,985		1,308		24,953
Total Loans	$	1,244,540	$	794,850	$	392,271	$	591,437	$	323,297	$	843,052	$	419,659	$	29,004	$	4,638,110

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

	June 30, 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	$	38	$	872	$	—	$	206	$	1,116	$	527,002	$	528,118
Non-owner occupied		436		669		—		602		1,707		1,062,916		1,064,623
Multi-family		—		—		—		—		—		844,066		844,066
Residential real estate		1,168		1,500		—		1,987		4,655		464,528		469,183
Commercial, industrial and agricultural		178		19		—		3,830		4,027		1,621,624		1,625,651
Real estate construction and land loans		—		—		—		1,097		1,097		80,419		81,516
Installment/consumer loans		100		100		—		9		209		24,744		24,953
Total loans	$	1,920	$	3,160	$	—	$	7,731	$	12,811	$	4,625,299	$	4,638,110

In the absence of other intervening factors, loans granted payment deferrals related to COVID-19 are not reported as past due or placed on non-accrual status provided the borrowers have met the criteria in the CARES Act or otherwise have met the criteria included in an interagency statement issued by bank regulatory agencies.

During the six months ended June 30, 2020, there was no interest earned on non-accrual loans and $85 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 June 30,
	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		20		20	2		934		934
Installment/consumer loans	—		—		—	—		—		—
Total	1	$	20	$	20	2	$	934	$	934

	Modifications During the Six Months Ended June 30,
	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	2		1,057		1,057	5		4,143		4,143
Installment/consumer loans	—		—		—	—		—		—
Total	2	$	1,057	$	1,057	5	$	4,143	$	4,143

Schedule of individually impaired loans by class

							Three Months Ended				Six Months Ended
	December 31, 2019						June 30, 2019				June 30, 2019
			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	$	3,379	$	3,401	$	—	$	576	$	—	$	524	$	—
Non-owner occupied		2,296		2,296		—		2,904		25		2,842		50
Residential real estate:
Residential mortgages		—		—		—		—		—		—		—
Home equity		294		300		—		—		—		—		—
Commercial, industrial and agricultural:
Secured		494		494		—		1,644		19		1,562		36
Unsecured		8,863		8,863		—		6,779		101		6,199		186
Total with no related allowance recorded		15,326		15,354		—	$	11,903	$	145		11,127		272
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		4,548		42		4,246		77
Unsecured		2,045		2,051		1,241		115		—		57		—
Total with an allowance recorded		11,657		11,663		4,676		4,663		42		4,303		77
Total:
Commercial real estate:
Owner occupied		3,379		3,401		—		576		—		524		—
Non-owner occupied		2,296		2,296		—		2,904		25		2,842		50
Residential real estate:
Residential mortgages		—		—		—		—		—		—		—
Home equity		294		300		—		—		—		—		—
Commercial, industrial and agricultural:
Secured		10,106		10,106		3,435		6,192		61		5,808		113
Unsecured		10,908		10,914		1,241		6,894		101		6,256		186
Total	$	26,983	$	27,017	$	4,676	$	16,566	$	187	$	15,430	$	349

Schedule of allowance of credit losses

	Three Months Ended June 30, 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	$	4,968	$	1,323	$	4,025	$	24,545	$	3,182	$	1,172	$	39,215
Charge-offs		—		—		—		(318)		—		(2)		(320)
Recoveries		—		—		1		5		—		—		6
Provision (credit) for credit losses		2,025		305		(334)		2,717		(562)		349		4,500
Ending balance	$	6,993	$	1,628	$	3,692	$	26,949	$	2,620	$	1,519	$	43,401

	Three Months Ended June 30, 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	$	11,099	$	2,557	$	3,374	$	13,073	$	1,526	$	155	$	31,784
Charge-offs		(3,670)		—		—		(554)		—		—		(4,224)
Recoveries		—		—		110		1		—		—		111
Provision (credit) for credit losses		3,449		(12)		(864)		1,038		(193)		82		3,500
Ending balance	$	10,878	$	2,545	$	2,620	$	13,558	$	1,333	$	237	$	31,171

	Six Months Ended June 30, 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)		—		—		(533)		—		(2)		(536)
Recoveries		—		—		2		24		—		—		26
Provision (credit) for credit losses		2,556		388		(374)		6,176		280		474		9,500
Ending balance	$	6,993	$	1,628	$	3,692	$	26,949	$	2,620	$	1,519	$	43,401

	Six Months Ended June 30, 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		(3,670)		—		—		(796)		—		(4)		(4,470)
Recoveries		—		—		111		12		—		—		123
Provision (credit) for credit losses		3,756		(21)		(1,426)		1,620		36		135		4,100
Ending balance	$	10,878	$	2,545	$	2,620	$	13,558	$	1,333	$	237	$	31,171

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