LOANS (Tables)

12 Months Ended

Dec. 31, 2017

LOANS

Schedule of the major classifications of loans

	December 31,
(In thousands)	2017			2016
Commercial real estate mortgage loans	$	1,293,906		$	1,091,752
Multi-family mortgage loans		595,280			518,146
Residential real estate mortgage loans		464,264			364,884
Commercial, industrial and agricultural loans		616,003			524,450
Real estate construction and land loans		107,759			80,605
Installment/consumer loans		21,041			16,368
Total loans		3,098,253			2,596,205
Net deferred loan costs and fees		4,499			4,235
Total loans held for investment		3,102,752			2,600,440
Allowance for loan losses		(31,707	)		(25,904	)
Loans, net	$	3,071,045		$	2,574,536

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

	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

	December 31, 2016
(In thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate:
Owner occupied	$	404,584	$	18,909	$	722	$	—	$	424,215
Non-owner occupied		643,426		20,035		4,076		—		667,537
Multi-family		518,146		—		—		—		518,146
Residential real estate:
Residential mortgage		299,297		82		370		—		299,749
Home equity		64,195		563		377		—		65,135
Commercial and industrial:
Secured		75,837		31,143		2,254		—		109,234
Unsecured		409,879		2,493		2,844		—		415,216
Real estate construction and land loans		80,272		—		333		—		80,605
Installment/consumer loans		16,268		—		100		—		16,368
Total loans	$	2,511,904	$	73,225	$	11,076	$	—	$	2,596,205

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

	December 31, 2017
(In thousands)	30-59 Days Past Due		60-89 Days Past Due		>90 Days Past Due And Accruing		Nonaccrual Including 90 Days or More Past Due		Total Past Due and 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

	December 31, 2016
(In thousands)	30-59 Days Past Due		60-89 Days Past Due		>90 Days Past Due And Accruing		Nonaccrual Including 90 Days or More Past Due		Total Past Due and Nonaccrual		Current		Total Loans
Commercial real estate:
Owner occupied	$	222	$	—	$	467	$	184	$	873	$	423,342	$	424,215
Non-owner occupied		—		—		—		—		—		667,537		667,537
Multi-family		—		—		—		—		—		518,146		518,146
Residential real estate:
Residential mortgages		1,232		—		—		770		2,002		297,747		299,749
Home equity		532		—		238		265		1,035		64,100		65,135
Commercial and industrial:
Secured		27		—		204		—		231		109,003		109,234
Unsecured		115		—		118		22		255		414,961		415,216
Real estate construction and land loans		—		—		—		—		—		80,605		80,605
Installment/consumer loans		28		—		—		—		28		16,340		16,368
Total loans	$	2,156	$	—	$	1,027	$	1,241	$	4,424	$	2,591,781	$	2,596,205

Schedule of individually impaired loans by class

	December 31, 2017						Year Ended December 31, 2017
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	2,073	$	2,073	$	—	$	173	$	80
Non-owner occupied		9,089		9,089		—		7,001		400
Residential real estate:
Residential mortgages		—		—		—		—		—
Home equity		100		100		—		8		—
Commercial and industrial:
Secured		7,368		8,013		—		2,633		211
Unsecured		2,154		2,408		—		592		36
Total with no related allowance recorded		20,784		21,683		—		10,407		727
With an allowance recorded:
Commercial real estate:
Owner occupied		—		—		—		—		—
Non-owner occupied		—		—		—		—		—
Residential real estate:
Residential mortgages		—		—		—		—		—
Home equity		—		—		—		—		—
Commercial and industrial:
Secured		—		—		—		—		—
Unsecured		1,708		3,235		1,708		142		174
Total with an allowance recorded		1,708		3,235		1,708		142		174
Total:
Commercial real estate:
Owner occupied		2,073		2,073		—		173		80
Non-owner occupied		9,089		9,089		—		7,001		400
Residential real estate:
Residential mortgages		—		—		—		—		—
Home equity		100		100		—		8		—
Commercial and industrial:
Secured		7,368		8,013		—		2,633		211
Unsecured		3,862		5,643		1,708		734		210
Total	$	22,492	$	24,918	$	1,708	$	10,549	$	901

	December 31, 2016						Year Ended December 31, 2016
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	326	$	538	$	—	$	176	$	10
Non-owner occupied		1,213		1,213		—		614		75
Residential real estate:
Residential mortgages		520		558		—		276		—
Home equity		264		285		—		328		—
Commercial and industrial:
Secured		556		556		—		274		12
Unsecured		408		408		—		227		19
Total with no related allowance recorded		3,287		3,558		—		1,895		116
With an allowance recorded:
Commercial real estate:
Owner occupied		—		—		—		—		—
Non-owner occupied		—		—		—		—		—
Residential real estate:
Residential mortgages		—		—		—		—		—
Home equity		—		—		—		—		—
Commercial and industrial:
Secured		—		—		—		—		—
Unsecured		66		66		1		43		7
Total with an allowance recorded		66		66		1		43		7
Total:
Commercial real estate:
Owner occupied		326		538		—		176		10
Non-owner occupied		1,213		1,213		—		614		75
Residential real estate:
Residential mortgages		520		558		—		276		—
Home equity		264		285		—		328		—
Commercial and industrial:
Secured		556		556		—		274		12
Unsecured		474		474		1		270		26
Total	$	3,353	$	3,624	$	1	$	1,938	$	123

	December 31, 2015						Year Ended December 31, 2015
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	384	$	564	$	—	$	412	$	10
Non-owner occupied		927		928		—		938		62
Residential real estate:
Residential mortgages		62		73		—		66		—
Home equity		610		700		—		631		—
Commercial and industrial:
Secured		96		96		—		93		6
Unsecured		—		—		—		—		—
Total with no related allowance recorded		2,079		2,361		—		2,140		78
With an allowance recorded:
Commercial real estate:
Owner occupied		—		—		—		—		—
Non-owner occupied		318		318		20		320		15
Residential real estate:
Residential mortgages		—		—		—		—		—
Home equity		—		—		—		—		—
Commercial and industrial:
Secured		—		—		—		—		—
Unsecured		194		194		9		223		17
Total with an allowance recorded		512		512		29		543		32
Total:
Commercial real estate:
Owner occupied		384		564		—		412		10
Non-owner occupied		1,245		1,246		20		1,258		77
Residential real estate:
Residential mortgages		62		73		—		66		—
Home equity		610		700		—		631		—
Commercial and industrial:
Secured		96		96		—		93		6
Unsecured		194		194		9		223		17
Total	$	2,591	$	2,873	$	29	$	2,683	$	110

Schedule of loans receivable by class modified as troubled debt restructuring

	Modifications During the Years Ended December 31,
	2017						2016						2015
(Dollars in thousands)	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate:
Owner occupied		—	$	—	$	—		—	$	—	$	—		—	$	—	$	—
Non-owner occupied		2		7,764		7,764		—		—		—		—		—		—
Residential real estate:
Residential mortgages		—		—		—		1		252		252		—		—		—
Home equity		—		—		—		1		69		69		—		—		—
Commercial and industrial:
Secured		7		6,828		6,828		3		459		459		—		—		—
Unsecured		2		189		189		1		525		525		3		160		160
Installment/consumer loans		—		—		—		—		—		—		—		—		—
Total		11	$	14,781	$	14,781		6	$	1,305	$	1,305		3	$	160	$	160

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

	Year Ended December 31,
(In thousands)	2017			2016
Balance at beginning of period	$	6,915		$	7,113
Accretion		(5,221	)		(4,924	)
Reclassification from nonaccretable difference during the period		457			4,492
Other		-			234
Accretable discount at end of period	$	2,151		$	6,915

Schedule of selected information about related party loans

(In thousands)	Year Ended December 31, 2017
Balance at beginning of period	$	22,116
New loans		1,645
Repayments		(2,619	)
Balance at end of period	$	21,142