LOANS (Tables)

3 Months Ended

9 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2020

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

Schedule of the major classifications of loans

(In thousands)	September 30, 2020		December 31, 2019
Commercial real estate mortgage loans:
Owner occupied	$	532,597	$	531,088
Non-owner occupied		1,097,290		1,034,599
Multi-family mortgage loans		853,263		812,174
Residential real estate mortgage loans		449,984		493,144
Commercial, industrial and agricultural loans		1,631,167		679,444
Real estate construction and land loans		66,826		97,311
Installment/consumer loans		22,520		24,836
Total loans		4,653,647		3,672,596
Net deferred loan (fees) costs		(14,174)		7,689
Total loans held for investment		4,639,473		3,680,285
Allowance for credit losses		(43,474)		(32,786)
Loans, net	$	4,595,999	$	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 September 30, 2020 and December 31, 2019. In the September 30, 2020 table, the years noted represent the year of origination for non-revolving loans.

	September 30, 2020
(In thousands)	2020		2019		2018		2017		2016		2015 and Prior		Revolving		Revolving-Term		Total
Commercial real estate owner occupied:
Pass	$	69,830	$	91,050	$	48,771	$	66,855	$	25,485	$	156,047	$	—	$	—	$	458,038
Watch		755		1,380		10,172		10,809		3,456		27,372		—		—		53,944
Special mention		—		553		598		10,918		3,525		3,837		—		—		19,431
Substandard		472		—		—		451		—		261		—		—		1,184
Total commercial real estate owner occupied		71,057		92,983		59,541		89,033		32,466		187,517		—		—		532,597
Commercial real estate non-owner occupied:
Pass		152,235		253,987		120,314		185,936		55,868		240,773		—		—		1,009,113
Watch		5,292		7,700		2,930		10,783		17,976		33,128		—		—		77,809
Special mention		—		—		—		—		—		290		—		—		290
Substandard		—		—		—		9,006		—		1,072		—		—		10,078
Total commercial real estate non-owner occupied		157,527		261,687		123,244		205,725		73,844		275,263		—		—		1,097,290
Multi-family:
Pass		106,693		294,605		40,993		99,331		134,851		113,283		—		—		789,756
Watch		—		2,724		—		23,634		23,851		12,906		—		—		63,115
Special mention		—		—		—		—		—		392		—		—		392
Substandard		—		—		—		—		—		—		—		—		—
Total multi-family		106,693		297,329		40,993		122,965		158,702		126,581		—		—		853,263
Residential real estate:
Pass		15,706		32,035		76,905		100,094		27,184		116,745		51,751		7,800		428,220
Watch		—		466		408		323		562		1,751		—		1,281		4,791
Special mention		—		1,108		762		—		—		5,722		798		718		9,108
Substandard		—		—		305		481		—		6,215		—		864		7,865
Total residential real estate		15,706		33,609		78,380		100,898		27,746		130,433		52,549		10,663		449,984
Commercial, industrial and agricultural:
Pass		1,025,066		73,283		39,742		33,565		21,057		36,261		279,990		5,898		1,514,862
Watch		8,513		2,926		12,960		3,018		1,199		3,541		39,957		1,568		73,682
Special mention		650		523		759		771		56		764		14,055		2,825		20,403
Substandard		—		—		4,767		3,759		471		9,454		200		3,569		22,220
Total commercial, industrial and agricultural		1,034,229		76,732		58,228		41,113		22,783		50,020		334,202		13,860		1,631,167
Real estate construction and land loans:
Pass		18,833		23,547		8,242		11,406		—		1,778		—		—		63,806
Watch		—		—		—		1,551		—		274		—		—		1,825
Special mention		—		—		1,078		—		—		—		—		—		1,078
Substandard		—		—		—		—		—		117		—		—		117
Total real estate construction and land loans		18,833		23,547		9,320		12,957		—		2,169		—		—		66,826
Installment/consumer loans
Pass		1,272		927		189		111		1		855		17,600		550		21,505
Watch		—		—		—		—		—		—		—		41		41
Special mention		—		—		—		—		—		—		—		100		100
Substandard		—		—		—		4		—		—		50		820		874
Total installment/consumer loans		1,272		927		189		115		1		855		17,650		1,511		22,520
Total Loans	$	1,405,317	$	786,814	$	369,895	$	572,806	$	315,542	$	772,838	$	404,401	$	26,034	$	4,653,647

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

	September 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	$	442	$	1,025	$	—	$	1,653	$	3,120	$	529,477	$	532,597
Non-owner occupied		—		14		—		746		760		1,096,530		1,097,290
Multi-family		—		—		—		—		—		853,263		853,263
Residential real estate		5,220		349		—		3,032		8,601		441,383		449,984
Commercial, industrial and agricultural		2,788		743		—		1,506		5,037		1,626,130		1,631,167
Real estate construction and land loans		—		—		—		117		117		66,709		66,826
Installment/consumer loans		101		—		—		10		111		22,409		22,520
Total loans	$	8,551	$	2,131	$	—	$	7,064	$	17,746	$	4,635,901	$	4,653,647

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 nine months ended September 30, 2020, there was no interest earned on non-accrual loans and $151 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 September 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	—	$	—	$	—	2	$	7,427	$	7,427
Non-owner occupied	—		—		—	—		—		—
Residential real estate	—		—		—	1		338		338
Commercial, industrial and agricultural	—		—		—	7		8,378		8,378
Installment/consumer loans	—		—		—	—		—		—
Total	—	$	—	$	—	10	$	16,143	$	16,143

	Modifications During the Nine Months Ended September 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	—	$	—	$	—	2	$	7,427	$	7,427
Non-owner occupied	—		—		—	—		—		—
Residential real estate	—		—		—	1		338		338
Commercial, industrial and agricultural	2		1,057		1,057	12		12,521		12,521
Installment/consumer loans	—		—		—	—		—		—
Total	2	$	1,057	$	1,057	15	$	20,286	$	20,286

Schedule of individually impaired loans by class

							Three Months Ended				Nine Months Ended
	December 31, 2019						September 30, 2019				September 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	$	—	$	3,095	$	28	$	1,196	$	28
Non-owner occupied		2,296		2,296		—		2,344		25		2,096		75
Residential real estate:
Residential mortgages		—		—		—		—		—		—		—
Home equity		294		300		—		—		—		—		—
Commercial, industrial and agricultural:
Secured		494		494		—		244		5		190		11
Unsecured		8,863		8,863		—		7,836		125		5,851		274
Total with no related allowance recorded		15,326		15,354		—		13,519		183		9,333		388
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		6,642		61		5,044		138
Unsecured		2,045		2,051		1,241		2,340		26		1,707		61
Total with an allowance recorded		11,657		11,663		4,676		8,982		87		6,751		199
Total:
Commercial real estate:
Owner occupied		3,379		3,401		—		3,095		28		1,196		28
Non-owner occupied		2,296		2,296		—		2,344		25		2,096		75
Residential real estate:
Residential mortgages		—		—		—		—		—		—		—
Home equity		294		300		—		—		—		—		—
Commercial, industrial and agricultural:
Secured		10,106		10,106		3,435		6,886		66		5,234		149
Unsecured		10,908		10,914		1,241		10,176		151		7,558		335
Total	$	26,983	$	27,017	$	4,676	$	22,501	$	270	$	16,084	$	587

Schedule of allowance of credit losses

	Three Months Ended September 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	$	6,993	$	1,628	$	3,692	$	26,949	$	2,620	$	1,519	$	43,401
Charge-offs		—		—		—		(1,469)		—		—		(1,469)
Recoveries		—		—		—		42		—		—		42
Provision (credit) for credit losses		1,093		46		(494)		2,059		(857)		(347)		1,500
Ending balance	$	8,086	$	1,674	$	3,198	$	27,581	$	1,763	$	1,172	$	43,474

	Three Months Ended September 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	$	10,878	$	2,545	$	2,620	$	13,558	$	1,333	$	237	$	31,171
Charge-offs		—		—		—		—		—		(9)		(9)
Recoveries		—		—		1		—		—		10		11
Provision (credit) for credit losses		1,051		445		(713)		523		(335)		29		1,000
Ending balance	$	11,929	$	2,990	$	1,908	$	14,081	$	998	$	267	$	32,173

	Three Months Ended September 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	$	6,993	$	1,628	$	3,692	$	26,949	$	2,620	$	1,519	$	43,401
Charge-offs		—		—		—		(1,469)		—		—		(1,469)
Recoveries		—		—		—		42		—		—		42
Provision (credit) for credit losses		1,093		46		(494)		2,059		(857)		(347)		1,500
Ending balance	$	8,086	$	1,674	$	3,198	$	27,581	$	1,763	$	1,172	$	43,474

	Nine Months Ended September 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)		—		—		(2,002)		—		(2)		(2,005)
Recoveries		—		—		2		66		—		—		68
Provision (credit) for credit losses		3,649		434		(868)		8,235		(577)		127		11,000
Ending balance	$	8,086	$	1,674	$	3,198	$	27,581	$	1,763	$	1,172	$	43,474

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