LOANS (Tables)

6 Months Ended

Jun. 30, 2018

LOANS

Schedule of the major classifications of loans

(In thousands)	June 30, 2018			December 31, 2017
Commercial real estate mortgage loans	$	1,327,947		$	1,293,906
Multi-family mortgage loans		570,670			595,280
Residential real estate mortgage loans		510,303			464,264
Commercial, industrial and agricultural loans		629,906			616,003
Real estate construction and land loans		116,899			107,759
Installment/consumer loans		20,051			21,041
Total loans		3,175,776			3,098,253
Net deferred loan costs and fees		4,900			4,499
Total loans held for investment		3,180,676			3,102,752
Allowance for loan losses		(31,652	)		(31,707	)
Loans, net	$	3,149,024		$	3,071,045

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

	June 30, 2018
(In thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate:
Owner occupied	$	464,708	$	835	$	18,109	$	-	$	483,652
Non-owner occupied		841,338		-		2,957		-		844,295
Multi-family		570,670		-		-		-		570,670
Residential real estate:
Residential mortgage		432,515		8,558		861		-		441,934
Home equity		66,433		1,235		701		-		68,369
Commercial and industrial:
Secured		95,758		10,386		13,309		-		119,453
Unsecured		491,851		12,422		6,180		-		510,453
Real estate construction and land loans		116,588		-		311		-		116,899
Installment/consumer loans		20,039		12		-				20,051
Total loans	$	3,099,900	$	33,448	$	42,428	$	-	$	3,175,776

	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

	June 30, 2018
(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	$	532	$	-	$	-	$	382	$	914	$	482,738	$	483,652
Non-owner occupied		415		-		-		-		415		843,880		844,295
Multi-family		-		-		-		-		-		570,670		570,670
Residential real estate:
Residential mortgages		1,231		-		619		41		1,891		440,043		441,934
Home equity		458		557		289		161		1,465		66,904		68,369
Commercial and industrial:
Secured		141		41		26		573		781		118,672		119,453
Unsecured		990		-		-		274		1,264		509,189		510,453
Real estate construction and land loans		-		-		-		152		152		116,747		116,899
Installment/consumer loans		1		25		-		16		42		20,009		20,051
Total loans	$	3,768	$	623	$	934	$	1,599	$	6,924	$	3,168,852	$	3,175,776

	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

Schedule of individually impaired loans by class

	June 30, 2018						Three Months Ended  June 30, 2018				Six Months Ended June 30, 2018
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	287	$	289	$	-	$	184	$	-	$	92	$	-
Non-owner occupied		1,162		1,162		-		1,163		7		1,168		8
Residential real estate:
Residential mortgages		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-
Commercial and industrial:
Secured		8,685		9,332		-		8,702		58		8,723		114
Unsecured		5,166		5,166		-		5,178		39		5,055		76
Total with no related allowance recorded	$	15,300	$	15,949	$	-	$	15,227	$	104	$	15,038	$	198
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	$	287	$	289	$	-	$	184	$	-	$	92	$	-
Non-owner occupied		1,162		1,162		-		1,163		7		1,168		8
Residential real estate:
Residential mortgages		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-
Commercial and industrial:
Secured		8,685		9,332		-		8,702		58		8,723		114
Unsecured		5,166		5,166		-		5,178		39		5,055		76
Total	$	15,300	$	15,949	$	-	$	15,227	$	104	$	15,038	$	198

	December 31, 2017						Three Months Ended June 30, 2017				Six Months Ended  June 30, 2017
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	2,073	$	2,073	$	-	$	302	$	3	$	309	$	5
Non-owner occupied		9,089		9,089		-		8,944		101		5,075		198
Residential real estate:
Residential mortgages		-		-		-		535		-		498		-
Home equity		100		100		-		260		3		261		3
Commercial and industrial:
Secured		7,368		8,013		-		1,491		53		1,015		61
Unsecured		2,154		2,408		-		400		3		396		8
Total with no related allowance recorded	$	20,784	$	21,683	$	-	$	11,932	$	163	$	7,554	$	275
With an allowance recorded:
Commercial real estate:
Owner occupied	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Non-owner occupied		-		-		-		-		-		-		-
Residential real estate:
Residential mortgages		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-
Commercial and industrial:
Secured		-		-		-		405		-		203		-
Unsecured		1,708		3,235		1,708		58		-		29		1
Total with an allowance recorded	$	1,708	$	3,235	$	1,708	$	463	$	-	$	232	$	1
Total:
Commercial real estate:
Owner occupied	$	2,073	$	2,073	$	-	$	302	$	3	$	309	$	5
Non-owner occupied		9,089		9,089		-		8,944		101		5,075		198
Residential real estate:
Residential mortgages		-		-		-		535		-		498		-
Home equity		100		100		-		260		3		261		3
Commercial and industrial:
Secured		7,368		8,013		-		1,896		53		1,218		61
Unsecured		3,862		5,643		1,708		458		3		425		9
Total	$	22,492	$	24,918	$	1,708	$	12,395	$	163	$	7,786	$	276

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In thousands)	2018			2017			2018			2017
Balance at beginning of period	$	957		$	5,333		$	2,151		$	6,915
Accretion		(269	)		(1,046	)		(1,302	)		(2,903	)
Reclassification from (to) nonaccretable difference during the period		424			(321	)		263			(46	)
Accretable discount at end of period	$	1,112		$	3,966		$	1,112		$	3,966